Relating to the prohibition of short-barrel firearms.

Contracts

• Employment Agreements: Review "Termination for Cause" definitions. Since possession of an unregistered SBF is no longer a state felony, ensure your contracts explicitly list "violation of federal regulations" as grounds for termination to protect the business from employees mishandling NFA items.
• Vendor Indemnification: Update agreements with manufacturers to ensure indemnification covers federal regulatory actions, as state-level prosecution risk has been eliminated.

Hiring/Training

• Staff Retraining: Retail and range staff must be retrained immediately. They must understand that state legality does not equal federal authorization. A transfer of an SBF without ATF paperwork remains a federal felony, even if local police cannot make an arrest under state law.
• Law Enforcement Interaction: Train management that local law enforcement no longer has statutory authority to arrest based solely on SBF possession under PC 46.05, but may still refer matters to federal task forces.

Reporting & Record-Keeping

• State Documentation: You are no longer required to maintain proof of registration specifically to assert an "affirmative defense" in state court, as the underlying state crime no longer exists.
• Federal Documentation: Continue strict maintenance of ATF Forms 2, 3, and 4. I recommend maintaining a "Dual-Compliance" log to prove federal adherence in the event of insurance audits.

Fees & Costs

• State Fees: None.
• Federal Fees: The $200 federal tax stamp and associated NFA transfer fees remain applicable and unchanged.