Firearms Record Keeping Policy
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- Silvia Briggs
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1 Purpose The purpose of this document is to guide Cash Connection employees in the record keeping requirements when processing firearms transactions. Being a licensed Federal Firearms Dealer (FFL), Cash Connection is required to follow the regulations, including firearms record keeping requirements, established by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cash Connection, as all other FFLs, plays a critical role in protecting America from violent firearms crime through responsible and lawful distribution of firearms and accurate record keeping which assists the ATF in tracing guns used to commit crimes. System access to computerized A&D book Cash Connection utilizes an ATF approved computerized Acquisition and Disposition (A&D) book to permanently record the acquisition and disposition of each firearm that moves through our stores. This A&D book is a component of our pawn software system of record - Pawndex. System access to manually modify the A&D records is based on job responsibility, and as such is limited to management personnel only. How to initiate a firearms record when a firearm enters the store When a firearm enters the store, either for a loan or purchase, the clerk will need to press the F7 key when prompted to enter the customer s merchandise for the transaction. Pressing this key will initiate the data entry fields required for a firearm transaction type, action, make, model, caliber and serial number and will automatically create a new gun log entry with all pertinent firearm and acquisition information in our computerized A&D book when the transaction is completed. Although Cash Connection utilizes an ATF approved computerized A&D book as the official record for all firearms transactions, the information entered by our clerks during each transaction is critical to the accuracy of these records. It is important that each requested data field be completed accurately to help ensure accurate information is entered, both for the person and the firearm. Incomplete or inaccurate records are NOT an option. How to close a firearms record when a firearm leaves the store When processing a transaction to transfer a firearm, either through a loan redemption or sale, the computerized A&D book will be automatically populated with the pertinent disposition information when the transaction has been completed. To make sure the information populated to the computerized A&D book is accurate, complete and timely all employees must have a good understanding of the following procedures. Firearms Record Keeping Procedure 1
2 The following steps are required for every firearms transfer: Present the customer with ATF form 4473 and have them complete section A. Section A of this form should only be completed by the person whose name and picture are on the government issued photo ID. Once the customer has completed section A, review the form comparing the information submitted with their government issued photo ID and their answers for appropriateness. If at this point the form has been completed incorrectly, or the answers to one or more questions are not appropriate, a transfer is NOT be performed and the partially completed 4473 form is to be retained with all other non- transferred forms. Otherwise, obtain the customers fingerprints and complete section B & C. In order to complete section B & C, a call into Oregon State Police (OSP) for a background check is required. OSP will provide one of the following response: o Approved the transfer of the respective firearm(s) can be completed. o Delayed a decision to transfer the respective firearm(s) requires more time, and the transfer can NOT be completed until the decision has been made. o Denied the transfer of the respective firearm(s) can NOT be completed. Only if the OSP response was Approved can the respective firearm(s) be physically transferred to individual. Be sure to accurately complete the 4473 form, including reference to the OSP approval number, attach the completed fingerprint card, and file the form for a later review. If the OSP response was Delayed or Denied, please see the appropriate section of this document for next steps. OSP response to background check was Delayed If the OSP response to the background check was Delayed, inform the customer of the background decision, issue the customer a hand written receipt, provide them with OSP phone number for questions, and file the 4473 appropriately for a later OSP decision. Do NOT physically transfer the respective firearm(s) at this point. If the transaction was for a pawn loan redemption, select N for no when asked if the firearms left the store. If the transaction was a sale, rather than closing out the sale in full close the sale with all but one penny and create a layaway for the customer. Firearms Record Keeping Procedure 2
3 As the firearm(s) has not physically left our store, the disposition information will not be entered into the computerized A&D book and the gun log entry will accurately reflect the happenings of the transaction. If the OSP decision at a later date is to Approve the transfer, the clerk will note that decision, the date of that decision, and the OSP approval number on the original 4473 form. The clerk will then contact the customer and inform them of the decision. Prior to the physical transfer of the respective firearm(s), the customer will need to recertify their answers to section A by completing questions 24 and 25 on the original 4473 form. If the recertification date is greater than 30 days from the original certification date, the customer will need to complete a new 4473 form and the background process will need to be completed again. If the transaction was for a pawn loan redemption, the employee should open the loan screen select Y for yes when asked if the firearms left the store; being attentive to the customer information being sent the computerized A&D book. If the transaction was a sale, the employee should make the final layaway payment, collecting all necessary funds, and generate the sales receipt. Only if the OSP response was Approved can the respective firearm(s) be physically transferred to individual. Be sure to accurately complete the 4473 form, including reference to the OSP approval number, attach the completed fingerprint card, and file the form for a later review. OSP response to background check was Denied If the OSP response to the background check was Denied, inform the customer of the background decision, do NOT physically transfer the respective firearm(s), and explain the following options: For denied loan redemptions select N for no when asked if the firearms left the store. The customer has an option to put the firearm(s) back into pawn until their situation is resolved OR the store can purchase the firearm from the customer please see the following section of this procedural document for guidance on these transactions. For denied sales, we either back out of the sales screen prior to finalizing sale or drop the respective layaway and the appropriate refund. As the firearm(s) has not physically left our store, the disposition information will not be entered into the computerized A&D book. The denied 4473 form should be stamped denied and filed for later review. Purchase of firearms from denied pawn loans - If an individual has received a denied response from OSP involving a pawned firearm(s) the best option for everyone is for Cash Connection to purchase the firearm(s) from the prohibited individual. These transactions have more unique Firearms Record Keeping Procedure 3
4 steps and require additional attention to detail. The acting store manager MUST perform these transactions. When the decision to purchase the firearm from the prohibited individual is made the following steps should be taken to procure and move the firearm into inventory: Purchase the firearm as any other firearm purchase utilizing the F7 key to generate a new gun log entry. Print the Bill of Sale for customer to complete and provide customer with money. Move the firearm into the appropriate inventory category based on type of firearm. Manually link the original gun log entry associated to the pawn loan to the new gun log entry associated to the purchase. This involves providing the appropriate date and log entry cross- referencing. The importance of accurate, complete and timely processing of this specific step cannot be stressed enough. Identifying firearms that have been part of a denied transaction - Once a firearm transfer has been denied by OSP, Cash Connection has an obligation as a licensed firearms dealer to read between the lines and not transfer a firearm to those closely related to a prohibited person. Therefore, listing the following information on the backside of the inventory tag should identify firearms that have been involved with a denied transaction: date of denied transaction and last name of denied individual. This will be a clear identifier to all employees during future transactions, helping to ensure we are not transferring a firearm to an individual closely related to any prohibited person. Police confiscations Occasionally, merchandise will be confiscated by the local law enforcement agencies. When a law enforcement officer presents themselves in our stores it is critical that the acting store manager be the person who interfaces with the officer. Confiscating a firearm is no different than any other piece of merchandise in the store. The officer must complete a property seizure form, and provide the store with a copy for our permanent records. The property seizure form should clearly describe the merchandise being removed, the officer s contact information, and the respective case number. Additionally, the acting store manager should attach the officer s business card to the store s copy of the property seizure form. To properly document a police confiscation for a firearm, the acting store manager will need to use our computerized record keeping system to either confiscate the loan or sales merchandise. During this process the name and badge number of the law enforcement officer who physically confiscated the merchandise and the case Firearms Record Keeping Procedure 4
5 number provided must be entered to accurate complete the firearm disposition record. Firearm repairs Cash Connection will send both customer guns and store inventory out for repair as needed. As a rule, Cash Connection will only allow gunsmiths with a current FFL to repair firearms. This eliminates the need for a completed 4733 form and associated OSP background check. When transferring a firearm to a gunsmith for repairs, it is important to accurately document the transfer of the firearm(s) in the computerized A&D book. The acting manger should conduct these transfers to ensure records are accurate and complete. When the firearm belongs to the customer, the firearm should be received into the computerized A&D book only. To transfer a customer firearm to the gunsmith for repair the inventory number should be manually disposed out to the gunsmith s FFL in the computerized A&D book. When receiving repaired customer firearms back in from the gunsmith, the firearm should again be received into the computerized A&D record only. To return the firearm to the original customer who brought the firearm in for repair the firearm should be manually disposed out to the original customer only. The acting manger should conduct these transfers to ensure records are accurate and complete. Customer firearm repairs do not require a completed 4473 form and associated OSP background check if being returned to the individual who originally brought the firearm in for repair. If a different individual is picking up the repaired firearm a 4473 form and associated OSP background check must be conducted prior to physically transferring the respective firearm(s). When the firearm is store inventory, the firearm has already been received into the computerized A&D book. To transfer a store inventory firearm to the gunsmith for repair the inventory number should be sold out to the gunsmith s FFL at $0.00 for transfer. This sale will automatically populate the computerized A&D book with the appropriate disposition information. When receiving repaired store inventory firearms back in from the gunsmith, the firearm should be received via sales return, which will automatically populate the computerized A&D book and assign and inventory new inventory number with the original cost and asking price associated to the firearm prior to transferring it out to gunsmith. The firearm should them be placed out for sale. The acting manger should conduct these transfers to ensure records are accurate and complete. Pawn loans redeemed by person other than name on contract Firearms Record Keeping Procedure 5
6 When presented with an active yellow pawn ticket for a firearm, the clerk should immediately ask for the customers government issued photo ID to compare with the name on the pawn contract. It is ok if the name on the contract is not the person redeeming the loan. However, it is important that when asked by the computerized record keeping system if the person is the same, the clerk answer NO and enter the information as presented on the government issued photo ID and section A of the 4473 form. Once that information is entered, refer to the How to close a firearms record when a firearm leaves the store section above. Sometimes we are presented with an active yellow pawn ticket for a firearm and we know an individual has already been denied transfer by OSP. Immediately involve the acting manager in these situations. It is NOT acceptable to complete a transfer of a firearm to a person who resides at the same address as that of the denied person. Additionally, if the decision to complete a transfer of firearm, which we know an individual has already been denied transfer by OSP, the new individual will be required to sign a waiver releasing Cash Connection from any liability if the prohibited person is found to be in possession of the firearm. Completing and submitting multiple handgun forms ATF form Report of Multiple Sales or Other Disposition of Pistols and Revolvers is to be used to report all transactions in which an unlicensed person has acquired two or more pistols and/or revolvers at one time or during five consecutive business days. When two or more handguns have been transferred via sale to the same unlicensed person within a period of five consecutive days this form must be accurately completed and submitted according to the instructions found on the bottom of the form. Copy 3 of the form, which is to be retained for the Cash Connection official records, should be attached to the completed 4473 form. This regulation also applies to situations where an unlicensed person other than the individual identified on the original loan contract presents the yellow copy for redemption of two or more handguns within a period of five consecutive days. Re-pawn; Creating a pawn loan for a firearm that has previously been in loan - Pawndex has built in functionality that makes re- pawning items very simple. However, in the case of re- pawning firearms, employees should NOT use the re- pawn functionality. All firearms loans should be processed as if they have not previously been in our system. By manually entering the required information for every firearm loan, we will ensure information is entered accurately and completely into our computerized record keeping system. Firearms Record Keeping Procedure 6
7 Placing firearms back to pawn Occasionally we will have a customer that comes in after their loans have forfeited and ask for us to re- instate their loans. When these situations present themselves the acting store manager MUST be the person processing the transaction, and the Back to Pawn function of Pawndex should be used. For more information on how to perform a back to pawn transaction please reference the Back to Pawn procedural document. Utilizing this functionality of Pawndex eliminates the unnecessary creation of a new log entry in the computerized A&D book. Timely reporting of missing firearms Within 48 hours of discovering a missing firearm, Cash Connection is required to notify the ATF of the loss. Upon the discovery of a missing firearm, the Cash Connection General Manager should be contacted. Incomplete 4473 forms Although the goal is to not have incomplete 4473 forms prior to physically transferring the firearm(s), the reality is being human we will at some point make a mistake. In the event that we do have an incomplete form, the acting store manager should be immediately notified. First, the customer should be contacted and instructed come back in to add the missing information to the 4473 form. Prior to the customer adding any information to the 4473 form, a photocopy of the original form should be made. The customer should then make their additions to the photocopy only and attach the photocopy to the originally completed form. The originally completed 4473 form should not be altered after the physically transfer of a firearm has been conducted. Internal controls for accurate and complete firearm records To ensure Cash Connection is continually in compliance with the ATF record keeping requirements, the following procedures have been implemented: Prior to customer leaving the store each Cash Connection employee will be responsible for obtaining a secondary review on the 4473 form prior to allowing the customer to leave the store with any firearm(s). This secondary review is to be performed by another employee who is properly trained in the completion of a 4473 form. The employee who performs the secondary Firearms Record Keeping Procedure 7
8 review will inspect the form for completeness and MUST denote completion by initialing the top of page 1 on the 4473 form. Weekly each Cash Connection Store Manager will be responsible for running the Guns Leaving Shop Report and reconciling against the 4473 forms for that week to determine the information in our computerized A&D book matches the information on the respective 4473 form(s). The Store Manager will denote completion of this weekly reconciliation by initialing an accurate version of the Guns Leaving Shop Report and filing the report and associated 4473 form(s). Monthly each Cash Connection Store Manger will be responsible for running a Guns In Shop Report and reconciling against each and every firearm in their store. The Store Manager will denote completion of this monthly reconciliation by initialing an accurate version of the Guns In Shop Report and filing the report. Firearms Record Keeping Procedure 8
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