EXPLANATION OF DRAFT OF PROPOSED BILL TO AMEND THE NATIONAL FIREARMS ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000500280034-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: April 2, 2004
• Sequence Number: 34
• Content Type: REPORT

EXPIANATION OF DRAFT OF PROPOSED BILL TO AMEND
THE NATIONAL FIREAUIS ACT
The draft of the proposed bill has been prepared by the
Treasury Department in cooperation with the Department of
Justice to formulate strengthening amendments to the National
Firearms Act for consideration as legislative proposals of the
Administration in connection with the proposed special message
of the President to the Congress concerning crime.
Under the draft bill, the scope of the National Firearms
Act (which now covers gangster-type weapons such as machine
guns, sawed-off shotguns, and deceptive weapons such as
flashlight guns, fountain pen guns, etc.) would be broadened
to include destructive devices such as explosive or incendiary
(1) bombs, (2) grenades, (3) rockets, (4) missiles, or (5)
similar weapons, as well as large caliber weapons such as
mortars, anti-tank guns, bazookas, etc. This would mean that
such weapons would be subject to all provisions of the Act and
that persons engaging in business as importers, manufacturers,
and dealers in such weapons would be required to register and
pay special (occupational) tax. Also, the taxes applicable in
respect of the making and transfer of weapons such as machine
guns ($200 per firearm) would be applicable with respect to the
making and transfer of such destructive devices. Also, it would
be unlawful for a person to possess a destructive device of this
character unless such device was registered with the Secretary
of the Treasury.
In addition the draft bill would contain certain addi-
tional strengthening and clarifying amendments to the National
Firearms Act.
Detailed Explanation
Section 1 of the draft bill:
This section would amend section 5848 of the Internal
revenue Code of 1954 which is the section of the National
Firearms Act containing the definition of the weapons sube.
ject to the Act (Chapter 53 of the internal revenue Code is
cited as the National Firearriis Act).
Pax. ra h. (a):
Approved For Refeaig piloS*4 : tfAAWpV oO44a OObw Zt Obill would amend
 paragraph (1) of section 5848 of the Internal Revenue Code of
1954 to include destructive devices within the term "firearm",
as used in the National Firearms Act. The effect of this is to
make the provisions of the Act applicable to a "destructive de-
vice" as that term is defined in paragraph (c) of section 1
of the draft bill.
Para rah b):
Paragraph (b) of section 1 as contained in the draft bill
would amend paragraph (2) of section 5848 of the Internal
Revenue Code of 1954(which is the definition of "machine gun"
contained in the National Firearms Act) to include any weapon
"which, can readily be restored to shoot'" automatically or semi-
automatically, more than one shot, without manual reloading, by
a single function of the trigger. This is merely a clarification
of the law and represents the administrative construction of
existing law.
The definition of machine gun would be further amended to
include "the frame or receiver" of a machine gun. Under the /
Federal Firearms Act, the frame or receiver of a firearm is in-
cluded within the definition of a firearm. This change would
bring the frame or receiver of a machine gun within the coverage
of the National Firearms Act.
The definition of machine gun is further amended to include
"any combination of parts designed and intended for use in con-
verting a weapon, other than a machine gun, into a machine gun".
For example, so-called "conversion kits" are now made and sold
for the purpose of converting certain rifles so that they will
fire automatically or semi-automatically more than one shot,
without manual reloading by a single function of the trigger
(i.e., converting such rifles into machine guns). However, tinder
existing law, there is no effective way to control the manufacture
and transfer of such kits. This change is designed to correct
this situation and to prevent subversion of the purposes of the
Act.
Pcrarah (c);
Paragraph (c) of section 1 of the draft bill provides for
the renumbering of paragraphs (3) through (11) as paragraphs (4)
through (12), respectively, of section 5848 of the Internal
Revenue Code of 1954, and for the insertion after paragraph (2)
of s ' sec &f t -kb 7@~b46FE9b~D (3). The new
Approv g e(~
device?d insert a definition of the term "destructive
r.
 The definition of the term "destructive device" contained
in paragraph (3) of section 5848 of the Internal Revenue Code
of 1954, as contained in the draft bill, is a new provision.
It would bring under the coverage of the National Firearms Act
any explosive or incendiary (a) grenade or (b) bomb or (c)
rocket or (d) missile or (e) similar weapon, or launching device
therefor (except devices which are not designed or re-designed
or used or intended for use as a weapon), and would include all
large caliber weapons such as bazookas, mortars, anti-tank
guns, etc.
The parenthetical exception contained in this definition
is drafted in the same manner as the exceptions contained in
26 U.S.C. section 5179(a) (relating to registration of stills)
and section 5205(a)(2) (relating to stamps on containers of
distilled spirits). Therefore, the decisions of the courts
(seen v. United 77 F.2d 780; cert. den. 295 U.S. 755;
and Scherr v. United States, 305 U.S. 251) to the effect that
the Goverment is is not required to allege or prove muter con-
tained in an exception, would be applicable. Establishment by
a person that he came within the exception would be a matter of
affirmative defense. Thus, an explosive device shown to be
designed and intended for lawful use in construction or for
other industrial purposes would be excepted. However, if the
device were designed or used or intended for use as a weapon,
it would be subject to the provisions of the Act.
A provision has been made in this definition that the
Secretary may exclude from the definition any device which he
finds is not likely to be used as a weapon. Examples of de- /
vices which may be excluded from this definition are devices such
as Very pistols and other signaling devices and line-throwing
appliances (required for commercial vessels by United States
Coast Guard regulations) which may have been made from converted
firearms. This provision also makes it possible to deal with
any other comparable situation which may arise, such as old
cannon or field pieces which are primarily of historical sig-
nificance and with respect to which there is no reasonable
likelihood that they will be used as a weapon,
Para&rh . r
Paragraph (d) of section l as contained in the draft bill,
would amend paragraph (4) (as renumbered) of section 5848 of
the Internal Revenue Code of 1954 by striking out the period
 at the end thereof and inserting the words `", and shall include
the frame or receiver of any such weapon, and any such weapon
which can readily be restored to firing condition." the effect
of this change is to include the frame or receiver of a rifle
within the definition of that term as used in the National Fire-
arms Act. This change is comparable to the corresponding change
in the definition of ,machine gun" contained in paragraph (b) of
this section. The inclusion in the definition of the language
", and any such weapon which can readily be restored to firing
condition'' represents a clarification of law and is consistent
with the administrative construction of existing law.
Parraph (e):
Paragraph (e) of section 1, as contained in the draft
bill, would amend paragraph (5) (as renumbered) of section 5848
of the Internal Revenue Code of 1954. This paragraph contains
the definition of the term "shotgun" and the change is identical
with the change made with respect to the definition of "rifle"
referred to in paragraph (d) above.
Section 2 of the draft bill:
Section 2, as contained in the draft bill, would amend
section 5843 of the Internal Revenue Code of 1954 (which relates
to identification of firearms) by inserting at the end thereof
a new sentence. This new provision is intended to provide for
the identification of a firearm (possessed by a person other L
than a manufacturer or importer) which does not bear the proper
identification.
Section 3of the draft bill:
Section 5850 of the Internal Revenue Code of 1954, as con-
tained in the draft bill, would add a new section to subchapter
B of chapter 53 which would provide that, "Nothing in this
chapter shall be construed as modifying or affecting the require-
ments of section 414 of the Mutual Security Act of 1954, as
amended, with respect to the manufacture, exportation, and im-
portation of arms, ammunition, and implements of war...'
This provision is merely for the purpose of assuring that
the chapter will be so construed,
Approval F't0 ~Rt3lease06t*Tl1600446R000500280034-0
V
 Section 4 of the draft bill contains the effective date
provisions of the amendments in the proposed Act.
Subsec ioa a
This subsection provides that the amendments made by section
2 and section 3 of this Act shall become effective on the date
of enactment, since there is no reason for delaying the effective
date of these provisions.
Subsection 1b1:
This subsection provides that the amendments made by
section 1 shall become effective on the first day of the fourth
month following the month in which this Act is enacted. This is
the same period provided with respect to the amendments to the
National Firearms Act made by Public Law 353, 82nd Congress,
2nd Session, and would provide sufficient time for the issuance
of instructions, preparation of forms, and amendment of regula-
tions.
This subsection would provide that, notwithstanding the
effective date provisions contained in subsection (b),
registration under section 5841 of the Internal Revenue Code
of 1954, which is required by reason of the amendments made by
this Act, shall commence on the first day of the second month
following the month in which this Act is enacted. In effect
this provides a two-month grace period during which period
persons who possess weapons which are required to be registered
by reason of this Act may register such weapons. This provision
is comparable to the provisions contained in Public Law 353
referred to in paragraph (b) above.
Subsectioaz (4):
This effective date provision corresponds to a similar
provision in Public law 353, and would avoid the imposition
of any criminal or other liability in respect of any act or
failure to act, as required by the new amendment, occurring
before the effective date specified in subsection (b), even
though registration will commence at an earlier date in
accordance with subsection (c).