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Notes -
Could you give some more context on what this is, for those unfamiliar? All I can find is a rule about financial professionals having to act in their clients' best interests.
The National Instant Criminal Background Check Systems (NICS) is a 90s-era system that (almost) all buyers of firearms have to undergo every time they buy (almost) any firearm. Despite its name, it checks not just criminal history, but also every other category under the 1968 GCA that disqualifies a person from owning (almost any) firearm, where the disqualifying incident has been reported to the FBI. While most people notice this only when buying a firearm, those who get a DQ result from NICS are on notice that they can not legally own (almost) any firearms, no matter what conditions they received them.
One lesser-known disqualification is that of those who are 'adjudicated as a mental defective or has been committed to any mental institution', which is the prong T.B. in this New Jersey case failed. However, the exact edges of those definitions are fuzzy. Most jurisdictions require some level of adversarial hearing or multiple doctors reviewing the commitment, but neither rule is part of the statute and neither have bright-line across-the-US caselaw.
While the Department of Veteran's Affairs had long held the ability to report 'mental defectives' since the 1993 establishment of NICS, and Clinton made some acts on this road, the Obama administration held that the Department of Veterans Affairs could use existing records to determine what veterans were 'mental defectives' and should do so automatically and categorically. To do so, they relied on determinations of what veterans had a fiduciary appointed to help manage their financial affairs, a process that had very low standards of evidence, a presumption of incompetence against the veteran, no due process rights to representation, did not require any qualifications or training for the administrative staff making the determination -- and, of course, did not give adequate preliminary notice that the act would strip away any Second Amendment rights. 95%+ of all "adjudicated as a mental defective" submissions to NICS from federal agencies were coming from the VA in 2013 and 2014. This ended up including hundreds of thousands of submissions.
((Continuing on a certain theme, the Obama administration based this policy's authorization on the bipartisan NICS Improvement Amendments Act of 2007.))
Most critically, veterans could and often did receive or even actively request fiduciaries solely to assist with financial affairs, not because they were dangerous or actually incompetent, such as if they wanted their spouse to have easier access to their records or VA fund. This could mean dementia or severe suicidal ideation, but because the VA was also getting eaten by paperwork in the same time period, this also could just be a matter of who in the family had the time or the patience to deal with the bullshit or, again, who could balance a checkbook.
Ostensibly, the policy was meant to reduce veteran suicide. To be charitable to the point of foolishness, I’m sure the proponents were absolutely sure that they were reducing firearms suicides (or lost guns) by making them less available to some vets. But given the near-complete disinterest in whether these disarmed vets were particularly likely to commit suicide, that’s about the best you can get, and then we’re back to the federal government treated arbitrary restrictions on a constitutional right as an unalloyed good, and these people targeted because they’d be less able to challenge it.
The Obama administration later proposed a federal regulation applying the same sort of system to Social Security and was expected to hit at least 75,000 people; this was blocked under the CRA in 2017. Some appropriations riders in 2024 and 2025 blocked the VA from using funds to submit records to NICS except where a finding of dangerousness or a court order was involved, though the last rider I'm aware of expired in March.
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