[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1478 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 1478
To modernize the business of selling firearms.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 9, 2023
Ms. Kelly of Illinois (for herself, Mr. Cicilline, Ms. Lee of
California, Mr. Morelle, Mr. Panetta, Mr. Pascrell, Mr. Auchincloss,
Mr. Blumenauer, Mr. Bowman, Mr. Boyle of Pennsylvania, Mr. Carson, Mr.
Casten, Ms. Castor of Florida, Mrs. Cherfilus-McCormick, Ms. Crockett,
Mr. Crow, Mr. Davis of Illinois, Mr. DeSaulnier, Mr. Espaillat, Mr.
Frost, Mr. Ivey, Mr. Moulton, Ms. Norton, Mr. Payne, Ms. Plaskett, Mr.
Quigley, Mrs. Ramirez, Mr. Raskin, Ms. Sanchez, Ms. Scanlon, Ms.
Scholten, Mr. Swalwell, Ms. Titus, Ms. Tlaib, Ms. Tokuda, Mrs. Watson
Coleman, Ms. Wilson of Florida, Ms. McCollum, Mr. Vargas, and Mr.
Tonko) introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To modernize the business of selling firearms.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Firearm Licensee Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) A growing body of evidence demonstrates that gun
dealers' sales practices affect the probability of guns getting
to criminals and that policies designed to hold gun sellers
accountable can curtail the diversion of guns to criminals.
(2) Federal laws governing firearm dealers have not been
updated in over 30 years, contain safeguards that protect
dealers who engage in illegal practices from adverse
enforcement action, frustrate law enforcement efforts to curb
gun trafficking and violence and are, thus, inadequate to meet
the realities of the twenty-first century.
(3) The Tiahrt Amendments, for one, severely limit the
authority of the Bureau of Alcohol, Tobacco, Firearms and
Explosives (ATF) to disclose crime gun trace data to the
public, prevent the collection of valuable information, and the
establishment of effective policies to prevent illegal guns
from being used in crimes and impede enforcement of the gun
laws by requiring most background check records to be destroyed
within 24 hours, and by barring the Government from requiring
annual inventory audits by owners of gun shops. Repealing the
Tiahrt Amendments would support law enforcement efforts and
give the public vital information needed to craft the most
effective policies against illegal guns.
(4) Additionally, Federal law imposes no requirements that
dealers physically secure their highly valuable and lethal
inventory. The number of gun thefts from licensed gun dealers
has increased more than the number from any other source.
Between 2013 and 2017, the number of firearms stolen in gun-
dealer burglaries more than doubled and the number of firearms
stolen in gun-dealer robberies tripled.
SEC. 3. DEFINITIONS.
Section 921(a) of title 18, United States Code, is amended by
adding at the end the following:
``(38) The term `facilitator' means any person engaged in the
business of hosting a commercial marketplace in which offers for
firearm sales, purchases, or other transfers are allowed to be made,
except that such a person shall not be considered to be a facilitator
with respect to any transaction that is made through the use of a
website or mobile application owned or operated by the person if the
transaction violates the terms of service of the website or mobile
application and the person has made a good faith effort to enforce the
terms of service by, at a minimum, auditing firearms transactions on a
quarterly basis to ensure compliance with this chapter.
``(39) The term `occasional' means, with respect to transactions,
fewer than 5 transactions in a 12-month period.
``(40) The term `personal collection' includes any firearm obtained
only for the personal use of an individual and not for the purpose of
selling or trading, except that a firearm obtained through inheritance
shall not be considered part of a personal collection until the firearm
has been possessed for 1 year.
``(41) The term `business inventory firearm' means, with respect to
a person, a firearm required by law to be recorded in the acquisition
and disposition logs of any firearms business of the person.
``(42)(A) The term `frame' means the part of a handgun, or variants
thereof, that provides housing or a structure for the primary energized
component designed to hold back the hammer, striker, bolt, or similar
component prior to initiation of the firing sequence (such as a sear or
the equivalent), even if pins or other attachments are required to
connect such component to the housing or structure.
``(B) The term `receiver' means the part of a rifle, shotgun, or
projectile weapon other than a handgun, or variants thereof, that
provides housing or a structure for the primary component designed to
block or seal the breech prior to initiation of the firing sequence
(such as a bolt, breechblock, or the equivalent), even if pins or other
attachments are required to connect such component to the housing or
structure.
``(C) For purposes of this paragraph, the terms `variant' and
`variants thereof' mean a weapon utilizing a similar frame or receiver
design irrespective of new or different model designations or
configurations, characteristics, features, components, accessories, or
attachments. For example, an AK-type firearm with a short stock and a
pistol grip is a pistol variant of an AK-type rifle, an AR-type firearm
with a short stock and a pistol grip is a pistol variant of an AR-type
rifle, and a revolving cylinder shotgun is a shotgun variant of a
revolver.''.
SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION.
Section 922 of title 18, United States Code, is amended by striking
subsection (s).
SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES.
(a) Security Plan Submission Requirement.--
(1) In general.--Section 923(d)(1)(G) of title 18, United
States Code, is amended by striking the period at the end and
inserting ``, and the applicant submits with the application a
security plan that describes how the applicant will secure, in
accordance with the regulations issued under section 926(d),
the premises from which the applicant will conduct business
under the license (including in the event of a natural disaster
or other emergency), and the applicant certifies that, if
issued such a license, the applicant will comply with the plan;
and''.
(2) Written approval required before license renewal.--
Section 923(d)(1) of such title is amended--
(A) in subparagraph (F)(iii), by striking ``and''
after the semicolon; and
(B) by adding at the end the following:
``(H) in the case of an application to renew a license to
deal in firearms--
``(i) the license is not suspended;
``(ii) the applicant has not had a license issued
under this chapter revoked; and
``(iii) the Attorney General has inspected the
premises and provided written approval of the security
plan submitted by the applicant under subparagraph
(G).''.
(3) Applicability.--A person who, on the date of the
enactment of this Act, is a licensed dealer (as defined in
section 921(a)(11) of title 18, United States Code) and whose
license to deal in firearms, issued under chapter 44 of such
title, will not expire before the end of the 1-year period that
begins with the date regulations are prescribed under section
926(d) of such title, shall submit to the Attorney General a
plan of the type described in section 923(d)(1)(G) of such
title not later than the end of that period. Any plan so
submitted shall be considered to be submitted pursuant to such
section 923(d)(1)(G).
(b) Annual Security Plan Compliance Certification Requirement.--
(1) In general.--Section 923 of such title is amended by
adding at the end the following:
``(m)(1) Each licensed manufacturer, licensed importer, and
licensed dealer shall annually certify to the Attorney General that
each premises from which the licensee conducts business subject to
license under this chapter is in compliance with the regulations
prescribed under section 926(d), and include with the certification the
results of a reconciliation of the resale firearms then in the business
inventory of the licensee against the resale firearms in the business
inventory of the licensee at the time of the most recent prior
certification (if any) under this paragraph, and all dispositions and
acquisitions of resale firearms in the year covered by the
certification, identifying and reporting any missing firearm.
``(2) The Attorney General shall impose a civil money penalty of
not more than $5,000 on, and may suspend the license issued under this
section to, a licensee who fails to comply with paragraph (1).''.
(2) Applicability.--The amendment made by paragraph (1) of
this subsection shall not apply to a person who, on the date of
the enactment of this Act, is a licensee referred to in section
923(m) of title 18, United States Code, until the end of the 1-
year period that begins with the date the person complies with
subsection (a)(2) of this section.
(c) Regulations.--
(1) In general.--Section 926 of such title is amended by
adding at the end the following:
``(d) The Attorney General shall prescribe such regulations as are
necessary to ensure that any premises at which a licensee referred to
in section 923(m) conducts business is secure from theft, which shall
include requiring--
``(1) compliance with the security plan submitted by the
licensee pursuant to section 923(d)(1)(G);
``(2) the use of locked metal cabinets and fireproof safes;
``(3) security systems, video monitoring, and antitheft
alarms;
``(4) security gates, strong locks, and site hardening;
``(5) concrete bollards and other access controls, if
necessary; and
``(6) the use of any other security-enhancing features
appropriate for the licensee's specific circumstances.''.
(2) Applicability.--The regulations prescribed under
section 926(d)(1) of such title shall not apply to a person
who, on the date of the enactment of this Act, is a licensee
referred to in section 923(m) of such title, until the earlier
of--
(A) the date the person complies with subsection
(b)(2) of this section; or
(B) the end of the 1-year period that begins with
the date regulations are prescribed under section
926(d) of such title.
SEC. 6. BUSINESS INVENTORY FIREARMS.
(a) Requirement To Transfer Firearm in Personal Collection to
Business Inventory Before Disposition.--Section 923(c) of title 18,
United States Code, is amended--
(1) by striking the 2nd sentence and inserting the
following: ``Nothing in this chapter shall be construed to
prohibit a licensed manufacturer, licensed importer, or
licensed dealer from maintaining a personal collection of
firearms.'';
(2) by striking the 3rd sentence; and
(3) by adding at the end the following: ``Any firearm
disposed of by a licensee shall be from the business inventory
of the licensee.''.
(b) Licensee Firearms Inventory.--Section 923(g) of such title is
amended by adding at the end the following:
``(8) Each licensee shall conduct a quarterly physical check of the
firearms inventory of the business of the licensee licensed under this
chapter and report any lost, stolen, or unaccounted for firearm to the
Attorney General and appropriate local authorities in accordance with
regulations which shall be prescribed by the Attorney General and shall
require, at a minimum, the recording of the date of receipt of the
firearm, the name, address, and license number, if applicable, of the
person from whom the firearm was received, the name of the manufacturer
and, if applicable, importer of the firearm, the model, serial number,
type, and caliber or gauge of the firearm, and the date of the sale or
other disposition of the firearm. This chapter shall not be interpreted
to prohibit the Attorney General from, at any time, requiring the
regular or one-time submission of the inventory records of a licensee
to ensure that the licensee is in compliance with this chapter.''.
(c) Repeal of Limitations on Imposition of Requirement That
Firearms Dealers Conduct Physical Check of Firearms Inventory.--
(1) The 5th proviso under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of division B of the Consolidated and Further
Continuing Appropriations Act, 2013 (18 U.S.C. 923 note; Public
Law 113-6; 127 Stat. 248) is amended by striking ``and any
fiscal year thereafter''.
(2) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of division B of the Consolidated and Further
Continuing Appropriations Act, 2012 (18 U.S.C. 923 note; Public
Law 112-55; 125 Stat. 609-610) is amended by striking the 7th
proviso.
(3) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of Division B of the Consolidated Appropriations Act
of 2010 (18 U.S.C. 923 note; Public Law 111-117; 123 Stat.
3128) is amended by striking ``or any other Act'' in the 7th
proviso.
(4) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of Division B of the Omnibus Appropriations Act of
2009 (18 U.S.C. 923 note; Public Law 111-8; 123 Stat. 574) is
amended by striking ``or any other Act'' in the 7th proviso.
(5) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of Division B of the Consolidated Appropriations Act
of 2008 (18 U.S.C. 923 note; Public Law 110-161; 121 Stat.
1903) is amended by striking ``or any other Act'' in the 7th
proviso.
(6) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of the Science, State, Justice, Commerce And Related
Agencies Appropriations Act of 2006 (18 U.S.C. 923 note; Public
Law 109-108; 119 Stat. 2295) is amended by striking ``or any
other Act'' in the 7th proviso.
(7) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of Division B of the Consolidated and Further
Continuing Appropriations Act, 2005 (18 U.S.C. 923 note; Public
Law 108-447; 118 Stat. 2859-2860) is amended by striking ``or
any other Act'' in the 7th proviso.
(8) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of Division B of the Consolidated and Further
Continuing Appropriations Act, 2004 (18 U.S.C. 923 note; Public
Law 108-199; 1185 Stat. 53) is amended by striking ``or any
other Act'' in the 7th proviso.
SEC. 7. ELECTRONIC RECORDS.
(a) Records Retention and Submission.--Section 923(g) of title 18,
United States Code, is amended--
(1) in paragraph (1)(A)--
(A) in the 1st sentence, by inserting ``, except
that, notwithstanding any other provision of law, as of
the effective date of the Federal Firearm Licensee Act,
records prepared by licensees under this chapter of the
sale or other disposition of firearms, including each
firearms transaction record, and the corresponding
record of receipt of such firearms, shall be retained
at the business premises readily accessible for
inspection under this chapter until the business is
discontinued'' before the period; and
(B) by striking the 2nd sentence;
(2) in paragraph (5)(A), by inserting ``or electronically
as may be'' after ``submit on a form''; and
(3) in paragraph (7), by inserting ``, electronically,''
after ``orally''.
(b) Records Databases.--Section 923(g) of such title is further
amended by adding at the end the following:
``(9)(A) Within 3 years after the date of enactment of this
paragraph, the National Tracing Center of the Bureau of Alcohol,
Tobacco, Firearms and Explosives shall establish and maintain
electronic, searchable databases of all records regarding the
importation, production, shipment, receipt, sale, or other disposition
of firearms required to be submitted by licensees to the Attorney
General under this chapter.
``(B) Each licensee under this chapter may provide the National
Tracing Center with electronic access, consistent with the requirements
of this paragraph, to all records within the possession of the licensee
that are required to be kept under this chapter.
``(C) The National Tracing Center--
``(i) shall have remote access to query, search, or
otherwise access the electronic databases described in this
paragraph; and
``(ii) with the permission of a State, or political
subdivision of a State, may query, search, or otherwise access
the databases of the firearms registration system or pawnbroker
records system of the State or political subdivision.
``(D) The National Tracing Center may query, search, or otherwise
access the electronic databases described in this paragraph only to
obtain information related to any Federal, State, local, tribal, or
foreign criminal investigation.
``(E) The databases established under this paragraph--
``(i) shall be electronically searchable by date of
disposition, license number, and the information identified on
each firearm or other firearm descriptor, including the
manufacturer, importer, model, serial number, type, and caliber
or gauge;
``(ii) shall not be electronically searchable by the
personally identifiable information of any individual, without
a warrant authorizing such a search; and
``(iii) shall include in search results the entire contents
of the relevant records kept by the licensee.''.
(c) Video Recordings of Sales and Transfers.--Section 923(g) of
such title is further amended by adding to the end the following:
``(10) In accordance with regulations promulgated by the Attorney
General, each licensed dealer operating a location at which firearms
are sold to a person not licensed under this chapter shall--
``(A) maintain video surveillance of all areas within each
premises where firearms in the business inventory of the
licensee are sold or transferred;
``(B) retain records of the surveillance, including any
sound recording obtained from the surveillance, for a period of
not less than 90 days; and
``(C) post a sign in a conspicuous place and at each public
entrance to the retail location, in block letters not less than
1 inch in height, stating that the premises are under video
surveillance.''.
(d) Increased Penalties for Licensee Violations Relating to
Acquisition and Disposition Records.--Section 924(a)(3) of such title
is amended--
(1) in the matter following subparagraph (B), by striking
``one year'' and inserting ``5 years''; and
(2) by adding at the end the following: ``If the conduct
described in subparagraph (A) or (B) is in relation to an
offense under subsection (a)(6) or (d) of section 922, the
licensed dealer, licensed importer, licensed manufacturer,
licensed collector, or licensed facilitator shall be fined
under this title, imprisoned not more than 10 years, or
both.''.
(e) Elimination of Limitation on Centralizing Records.--Section
926(a) of such title is amended in the matter following paragraph (3)
by striking ``records required to be maintained under this chapter or
any portion of the contents of such records, be recorded at or
transferred to a facility owned, managed, or controlled by the United
States or any State or any political subdivision thereof, nor that.''.
(f) Electronic Recordkeeping Adoption and Implementation.--Section
926 of such title is further amended by adding at the end the
following:
``(e) The Attorney General--
``(1) shall facilitate and incentivize licensee conversion
to, and adoption of, electronic recordkeeping solutions that
enable electronic completion and submission to the Attorney
General of all records required to be maintained under this
chapter;
``(2) shall facilitate digital capture of dealer paper
records, the integration and indexing of data onto a platform
accessible by law enforcement authorities for purposes of
investigating a violent crime or crime gun trace;
``(3) shall facilitate remote access to electronic records
of licensed dealers by law enforcement authorities for purposes
of investigating a violent crime or crime gun trace, and dealer
access to only their own records; and
``(4) shall not remotely access or search electronic
records of licensed dealers without a warrant authorizing such
a search.''.
SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS.
Section 922(t)(1)(B)(ii) of title 18, United States Code, is
amended by adding at the end, before the semicolon, the following: ``,
if the licensee notifies the Attorney General that such firearm has
been transferred to such person no later than the close of business on
the day that the firearm is transferred''.
SEC. 9. MULTIPLE FIREARM SALES RECORDS AND REPORTS.
(a) Expanding Reporting Requirement to Certain Long Guns.--Section
923(g)(3)(A) of title 18, United States Code, is amended--
(1) by striking ``pistols, or revolvers, or any combination
of pistols and revolvers'' and inserting ``pistols, revolvers,
semiautomatic rifles or shotguns, or rifles or shotguns capable
of accepting a high capacity magazine, or any combination of
such weapons''; and
(2) by inserting after the 1st sentence the following: ``In
the preceding sentence, the term `high capacity magazine' means
a magazine capable of holding more than 10 rounds of
ammunition, and includes magazines that may be readily
converted to hold more than 10 rounds of ammunition.''.
(b) Requirement To Retain Instant Criminal Background Check Records
for 90 Business Days.--Section 922(t)(2)(C) of such title is amended--
(1) by striking ``destroy'' and inserting ``retain for 90
business days'';
(2) by striking ``(other than the identifying number and
the date the number was assigned)''; and
(3) by inserting ``solely for purposes related to
discovering misuse or avoidance of the national instant
criminal background check system or ensuring its proper
operation'' before the period at the end.
(c) Attorney General Reports of Multiple Sales by Non-Licensees.--
Section 923(g)(3) of such title is amended--
(1) by inserting after subparagraph (A) the following:
``(B) The Attorney General shall prepare a report of multiple
dispositions of firearms to persons not licensed under this chapter,
which shall include the names and identifying information of
transferees appearing in the records retained pursuant to section
922(t)(2)(C) on 2 or more occasions in any period of 5 consecutive
business days. The report shall be prepared on a form substantially
similar to the form created pursuant to subparagraph (A) and include
the names and addresses of the licensees who requested the background
checks pursuant to subsection (t). The Attorney General shall forward
the report to the office designated pursuant to subparagraph (A) and to
the departments of State police or State law enforcement agencies of
the State or local law enforcement agencies of the local jurisdictions
in which the sales or other dispositions took place, not later than the
close of business on the date of the most recent such sale or other
disposition.''; and
(2) by redesignating subparagraph (B) as subparagraph (C).
(d) Records Retention To Investigate Crime Guns.--Section
923(g)(3)(C) of such title as redesignated by subsection (c)(2) of this
section, is further amended--
(1) by inserting ``a firearm involved in a crime or'' after
``Except in the case of forms and contents thereof regarding'';
(2) by striking ``, and shall destroy each such form and
any record of the contents thereof no more than 20 days from
the date such form is received'' and inserting ``and shall
retain each such form and any record of the contents of the
form for 180 days after the date the form is received''; and
(3) by striking the 2nd sentence.
SEC. 10. SAFETY DEVICES AND WARNINGS TO PURCHASERS.
Section 922(z) of title 18, United States Code, is amended--
(1) by inserting ``and Warnings to Purchasers'' after
``Secure Gun Storage or Safety Device'';
(2) by striking ``handgun'' each place it appears and
inserting ``firearm''; and
(3) by adding at the end the following:
``(4) Warnings to purchasers.--All licensed dealers
operating a physical retail location shall post conspicuously
within the licensed premises all warnings required to be
provided to firearms purchasers under applicable State and
local law. The Attorney General shall develop materials
regarding suicide prevention, securing firearms from loss,
theft, or access by a minor or prohibited person, and straw
purchasing, and provide the materials to licensed dealers who
shall disseminate the materials on transfer of a firearm to a
person not licensed under this chapter.''.
SEC. 11. INSPECTIONS.
(a) Mandated Annual Inspections of High Risk Licensed Dealers,
Triennial Inspections of Other Licensed Dealers.--Section 923(g)(1)(B)
of such title is amended by adding after and below the end the
following flush sentence: ``Not less frequently than annually, the
Attorney General shall inspect or examine the inventory, records, and
business premises of each licensed dealer whom the Attorney General
determines to be a high risk dealer (based on considerations that shall
include dealers who have reported a lost or stolen firearm within the
preceding 5 years, were issued a report of violation, received a
warning letter, or been the subject of a warning conference, or, within
the preceding year, to whom were traced multiple firearms used in a
crime under Federal, State, or local law within 3 years after sale by
the dealer) and may appoint a special master to ensure that such
dealers comply with all applicable firearm sales laws. The special
master may use in-store observation, monitor records, conduct random
and repeated sales integrity tests, and design and offer instructional
programs providing best practices sales training to all employees
involved in firearms sales until the special master certifies that the
dealer has complied with all applicable firearms sales laws for 3
consecutive years. Not less frequently than every 5 years, the Attorney
General shall inspect or examine the inventory, records, and business
premises of each other licensed dealer. Within 6 months after such an
inspection reveals a violation of this section or any regulation
prescribed under this chapter, and within 6 months after a security
inspection conducted under paragraph (6)(B)(i) of this subsection, the
Attorney General shall conduct an inspection to determine whether the
violation identified in the preceding inspection has been cured.''.
(b) Elimination of Limit on Inspection of Licensee Records.--
Section 923(g)(1)(B)(ii) of such title is amended--
(1) by striking ``--'' and all that follows through
``(II)''; and
(2) by striking ``with respect to records relating to a
firearm involved in a criminal investigation that is traced to
the licensee''.
(c) Mandated Security Inspection of Dealers Reporting Lost or
Stolen Firearms.--Section 923(g)(6) of such title is amended--
(1) by inserting ``(A)'' after ``(6)''; and
(2) by adding at the end the following:
``(B)(i) After the Attorney General receives such a report from a
licensed dealer of the theft of a firearm, the Attorney General shall
conduct an independent inspection of the security of the premises at
which the theft occurred, which shall include an inspection of the
measures taken to implement the security plan submitted by the licensed
dealer pursuant to subsection (d)(1)(G).
``(ii) On completion of the security inspection, the Attorney
General shall provide the licensed dealer with--
``(I) a notice of any violation by the licensed dealer of
any security requirements prescribed under section 926(d); and
``(II) recommendations for improving security of the
premises involved.''.
(d) Elimination of Limit on Inspection of Other Premises.--Section
923(j) of such title is amended by striking the 6th sentence.
SEC. 12. AUTHORITY WITH REGARDS TO LICENSE ISSUANCE AND RENEWAL.
(a) Denial Authority.--Section 923 of title 18, United States Code,
is amended--
(1) in subsection (c)--
(A) by inserting ``(1)'' before ``Upon'';
(B) in the first sentence, by inserting ``, subject
to paragraph (2),'' after ``Attorney General shall'';
and
(C) by adding at the end the following:
``(2) The Attorney General shall deny an application submitted
under subsection (a) or (b) if the Attorney General determines--
``(A) issuing the license would pose a danger to public
safety; or
``(B) that the applicant--
``(i) is not likely to comply with the law; or
``(ii) is otherwise not suitable to be issued a
license.''; and
(2) in subsection (d)(1)--
(A) in the first sentence, by inserting ``and
renewals thereof'' after ``this section'';
(B) in the matter preceding subparagraph (A), by
inserting ``, subject to subsection (c)(2),'' after
``shall'';
(C) in subparagraph (C), by striking ``not
willfully violated'' and inserting ``no uncured
violations''; and
(D) in subparagraph (F)--
(i) in clause (ii)(II), by striking ``and''
at the end; and
(ii) by adding at the end the following:
``(iv) all employees employed in the
business will be at least the minimum age at
which individuals may possess a firearm in the
locality in which the business will be
conducted and are not prohibited from being
transferred a firearm, or transporting,
shipping, or receiving firearms or ammunition
in interstate or foreign commerce by subsection
(d), (g), or (n) of section 922 (as applicable)
or by State, local, or Tribal law;''.
(b) Authority To Revoke or Suspend Licenses.--Section 923 of such
title is amended--
(1) in subsection (e), by striking ``revoke'' and inserting
``revoke or suspend''; and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by striking all instances of
``revoked'' and inserting ``revoked or
suspended''; and
(ii) by striking all instances of
``revocation'' and inserting ``revocation or
suspension''; and
(B) in paragraph (2)--
(i) by striking ``, or revokes'' and
inserting ``revokes, or suspends''; and
(ii) by striking ``or revocation'' and
inserting ``, revocation, or suspension''; and
(C) in paragraph (3)--
(i) by striking ``or revoke'' and inserting
``or revoke or suspend'';
(ii) by striking ``or revocation'' and
inserting ``, revocation, or suspension''; and
(iii) by striking ``to revoke'' and
inserting ``to revoke or suspend''.
(c) Authority To Promulgate Rules.--Section 926(a) of such title is
amended by striking ``only''.
(d) Repeal of Riders Limiting Use of Funds To Deny Licenses Due to
Lack of Business Activity.--
(1) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of division B of the Consolidated and Further
Continuing Appropriations Act, 2012 (18 U.S.C. 923 note; Public
Law 112-55; 125 Stat. 609-610) is amended by striking the 9th
proviso.
(2) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of division B of the Consolidated and Further
Continuing Appropriations Act, 2013 (18 U.S.C. 923 note; Public
Law 113-6; 127 Stat. 247-248) is amended by striking the 6th
proviso.
SEC. 13. INCREASED LICENSING FEES.
(a) Fees for Licensed Importers, Manufacturers, and Dealers in
Firearms and Importers and Manufacturers of Ammunition.--Section 923(a)
of title 18, United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``$1,000'' and
inserting ``$2,000'';
(B) in subparagraph (B), by striking ``$50'' and
inserting ``$100''; and
(C) in subparagraph (C), by striking ``$10'' and
inserting ``$20'';
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``$1,000'' and
inserting ``$2,000''; and
(B) in subparagraph (B), by striking ``$50'' and
inserting ``$100''; and
(3) in paragraph (3)--
(A) in subparagraph (A), by striking ``$1,000'' and
inserting ``$2,000''; and
(B) in subparagraph (B)--
(i) by striking ``$200'' and inserting
``$400''; and
(ii) by striking ``$90'' and inserting
``$180''.
(b) Fees for Licensed Collectors.--Section 923(b) of such title is
amended by striking ``$10'' and inserting ``$20''.
SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFECTIVE DATE OF LICENSE
REVOCATION.
Section 923(f)(2) of title 18, United States Code, is amended in
the 2nd sentence by striking ``shall upon the request of the holder of
the license'' and inserting ``may, upon a showing by the holder of the
license of good cause,''.
SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED FOR A CRIME
PUNISHABLE BY IMPRISONMENT FOR A TERM EXCEEDING ONE YEAR.
(a) In General.--Section 925 of title 18, United States Code, is
amended by striking subsection (b) and redesignating subsections (c)
through (f) as subsections (b) through (e), respectively.
(b) Conforming Amendments.--Section 922 of such title is amended--
(1) in subsection (d), in the 2nd sentence, by striking
``licensed importer, licensed manufacturer, licensed dealer, or
licensed collector who pursuant to subsection (b) of section
925 of this chapter is not precluded from dealing in firearms
or ammunition, or to a'';
(2) in subsection (l), by striking ``925(d) of this
chapter'' and inserting ``925(c)''; and
(3) in subsection (r), by striking ``925(d)(3) of this
chapter'' and inserting ``925(c)(3)''.
SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DISABILITY RELIEF
APPLICATION PENDING.
Section 925(b) of title 18, United States Code, as so redesignated
by section 15(a) of this Act, is further amended by striking the 4th
sentence and inserting ``This subsection shall not be interpreted to
prohibit the Attorney General from, on a showing by a licensee of good
cause, permitting the licensee to continue operations while an
application for relief from disabilities is pending.''.
SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN SALE OF LONG GUNS TO
RESIDENTS OF ANOTHER STATE.
Section 922(b)(3) of title 18, United States Code, is amended by
striking ``in the absence of evidence to the contrary,''.
SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER OF FIREARM WITHOUT
CONDUCTING A BACKGROUND CHECK.
Section 922(t)(5) of title 18, United States Code, is amended by
inserting ``in the case of the 1st violation and, in the case of a
subsequent violation, shall immediately suspend or revoke any license
issued to the licensee under section 923 and impose on the licensee a
civil fine equal to $20,000'' before the period.
SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DISABILITY OR NOTICE OF
LICENSE SUSPENSION, REVOCATION OR DENIED RENEWAL.
(a) Restrictions.--Section 922 of title 18, United States Code, is
amended by adding at the end the following:
``(aa)(1) It shall be unlawful for a licensed importer, licensed
manufacturer, licensed dealer, licensed collector, or licensed
facilitator who incurs a disability imposed by Federal laws with
respect to the acquisition, receipt, transfer, shipment,
transportation, or possession of firearms or ammunition during the term
of a license issued under this chapter or while an application to renew
such a license is pending, or who has been notified by the Attorney
General that a license issued to the licensee under this chapter has
been suspended or revoked or that an application of the licensee to
renew such a license has been denied, to--
``(A) transfer a business inventory firearm--
``(i) into the personal collection of the licensee;
or
``(ii) to any person other than a licensee under
this chapter or a Federal, State, or local law
enforcement agency; or
``(B) receive a business inventory firearm.
``(2) Upon a showing by a licensee of good cause, the Attorney
General may issue a written waiver of paragraph (1) if the licensee
authorizes the Attorney General to inspect the records and inventory of
the licensee at any time to ensure that the licensee is in compliance
with this chapter.''.
(b) Penalties.--Section 924(a) of such title is amended by adding
at the end the following:
``(8) Whoever knowingly violates section 922(aa) shall be fined
under this title, imprisoned not more than 1 year, or both.''.
(c) Notice Requirement.--Section 923(f)(1) of such title is amended
in the 1st sentence by inserting ``and setting forth the provisions of
Federal law and regulation that prohibit a person not licensed under
this chapter from engaging in the business of dealing in firearms and
the restrictions set forth in section 922(aa)'' before the period.
SEC. 20. REGULATION OF FACILITATORS OF FIREARM TRANSFERS.
(a) Licensing.--Section 923(a) of title 18, United States Code, is
amended by adding at the end the following:
``(4) If the applicant is a facilitator of firearm sales,
purchases or other transfers, a fee of $1,000 per year.''.
(b) Completed Facilitated Sales.--Section 923 of such title is
further amended by adding at the end the following:
``(n)(1) Each licensed facilitator shall--
``(A) inform all prospective sellers using its commercial
marketplace that any offer for firearm sales, purchases, or
other transfers made using its commercial marketplace may be
completed only with the assistance of a licensed importer,
licensed manufacturer, or licensed dealer, who must take
possession of the firearm directly from the transferor for the
purpose of complying with section 922(t);
``(B) require all prospective firearm sellers to so
complete all firearms sales, purchases, or other transfers; and
``(C) maintain records of any such sale, purchase, or other
transfer which shall include the date of the offer, the name of
the offeror, and the name and the licensee number of the
licensee that will take possession of the firearm directly from
the transferor, and the model, serial number, type, and caliber
or gauge of the firearm involved.
``(2) A licensed facilitator may require, as a condition of using
its commercial marketplace, that, before offering a firearm for sale, a
prospective seller identify a licensed dealer that will take possession
of the firearm and complete the sale.
``(3) On taking possession of a firearm sold, purchased, or
otherwise transferred in such a commercial marketplace, a licensee
shall comply with all requirements of this chapter as if the licensee
were transferring the firearm from the inventory of the licensee to the
unlicensed transferee.''.
(c) Liability.--Section 924(h) of such title is amended--
(1) by inserting ``(1)'' before ``Whoever''; and
(2) by adding at the end the following:
``(2) Whoever, having accepted an offer to transfer ownership of a
firearm using a commercial marketplace of a licensed facilitator in
order to complete a firearm transaction as described in paragraph (1)
of this subsection, knowingly transfers the firearm to a person not
licensed under this chapter without a licensed importer, licensed
manufacturer, or licensed dealer first taking possession of the firearm
for the purpose of complying with section 922(t), shall be fined under
this title, imprisoned not more than 1 year, or both, except that if
transfer to, or receipt of the firearm by the transferee violates
subsection (d), (g), or (n) of section 922, or the firearm is used to
commit a crime of violence (as defined in section (c)(3) of this
section) or drug trafficking crime (as defined in subsection (c)(2) of
this section), the transferor shall be fined under this title,
imprisoned not more than 10 years, or both.''.
(d) Conforming Amendments.--
(1) Section 922 of such title is amended--
(A) in subsection (a)(1)--
(i) by striking ``or'' at the end of
subparagraph (A);
(ii) by adding ``or'' at the end of
subparagraph (B); and
(iii) by adding at the end the following:
``(C) except a licensed facilitator, to engage in
the business of hosting a commercial marketplace in
which offers for firearms sales, purchases, or other
transfers are allowed to be made;'';
(B) in subsection (a)(6)--
(i) by striking ``or licensed collector''
and inserting ``licensed collector, or licensed
facilitator''; and
(ii) by striking ``or collector'' and
inserting ``collector, or facilitator''; and
(C) in subsection (m), by striking ``or licensed
collector'' and inserting ``licensed collector, or
licensed facilitator''.
(2) Section 923 of such title is amended--
(A) in the 1st sentence of subsection (c), by
inserting ``or facilitate firearm sales, purchases or
other transfers'' before ``during the period stated in
the license'';
(B) in subsection (g)(1)(A)--
(i) in the first sentence, by striking
``and licensed dealer'' and inserting
``licensed dealer, and licensed facilitator'';
and
(ii) in the last sentence, by inserting
``licensed facilitator,'' before ``or any
licensed importer''; and
(C) in subsection (j), by striking ``or licensed
dealer'' the 1st place it appears and inserting
``licensed dealer, or licensed facilitator''.
(3) Section 924(a)(3) of such title is amended by striking
``or licensed collector'' and inserting ``licensed collector,
or licensed facilitator''.
SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS.
(a) Requirements.--
(1) Background checks required before issuance or renewal
of dealers license.--Section 923(c) of title 18, United States
Code, is amended by inserting after the 1st sentence the
following: ``Notwithstanding the preceding sentence, the
Attorney General may not issue or renew a license unless the
Attorney General has contacted the national instant criminal
background check system established under section 103 of the
Brady Handgun Violence Prevention Act to determine whether it
would be unlawful for the applicant or any employee of the
applicant identified by the applicant on the application as
trusted with the possession or receipt of any firearm, to be
transferred or receive a firearm, and the system has notified
the Attorney General that the information available to the
system does not demonstrate that the transfer to or receipt of
a firearm by the applicant or any such employee would violate
subsection (d), (g), or (n) of section 922 (as applicable) or
by State, local, or Tribal law where the business premises of
the applicant subject to the license is located.''.
(2) Background check required before firearm possession by
dealer employee.--Section 923(g) of such title is further
amended by adding at the end the following:
``(11) A licensed dealer shall not allow an employee to possess a
firearm at a premises from which the licensed dealer conducts business
subject to license under this chapter, unless--
``(A) the employee is at least the minimum age required by
State and local law to possess or receive a firearm;
``(B) the licensed dealer has contacted the national
instant criminal background check system established under
section 103 of the Brady Handgun Violence Prevention Act to
determine whether it would be unlawful for the individual to
receive a firearm; and
``(C) the system has notified the licensee that the
information available to the system does not demonstrate that
the receipt of a firearm by the individual would violate
subsection (d), (g), or (n) of section 922 (as applicable) or
by State, local, or Tribal law.''.
(b) Authority of NICS System To Respond to Licensed Dealer Request
for Criminal Background Check of Employee or Applicant for
Employment.--Section 103(b)(2) of the Brady Handgun Violence Prevention
Act (34 U.S.C. 40901(b)(2)) is amended--
(1) in the heading, by striking ``Voluntary'' and inserting
``Compulsory''; and
(2) in subparagraph (A), by striking ``voluntarily''.
(c) Authority of NICS System To Search National Data Exchange.--
Section 103(e)(1) of the Brady Handgun Violence Prevention Act (34
U.S.C. 40901(e)(1)) is amended by adding at the end the following:
``(L) Search of national data exchange database.--
The system established under this section shall include
a search of the database of the National Data Exchange
when conducting a background check under this
section.''.
SEC. 22. LIABILITY STANDARDS.
(a) Liability in Licensing.--Section 923 of title 18, United States
Code, is amended--
(1) in subsection (d)(1)(D), by striking ``willfully'' and
inserting ``knowingly''; and
(2) in subsection (e), by striking ``willfully'' each place
it appears and inserting ``knowingly''.
(b) Liability in Penalties.--Section 924 of such title is amended--
(1) in subsection (a)(1)(D), by striking ``willfully'' and
inserting ``knowingly''; and
(2) in subsection (d)(1), by striking ``willful'' and
inserting ``knowing''.
SEC. 23. CIVIL ENFORCEMENT.
(a) Fines for Engaging in the Business Without a License.--Section
924(n), of title 18, United States Code, is amended--
(1) by inserting ``(1)'' after ``(n)''; and
(2) by adding at the end the following:
``(2) In the case of a person who the Attorney General has found to
be engaged in conduct that constitutes a violation of section
922(a)(1)(A), the Attorney General shall transmit to the persona
written notice specifying the violation, which shall include a copy of
the provision of law violated, and impose a civil money penalty in an
amount that is not less than $2,500 and not more than $20,000.''.
(b) Tiered Penalties for Repeated Violations of Regulations by
Licensed Dealers.--Section 924 of such title is amended by adding at
the end the following:
``(q) Penalties Relating to Violations of Regulations by Licensed
Dealers.--
``(1) In the case of a licensed dealer who the Attorney
General has found to be in violation of a regulation prescribed
under section 926, the Attorney General shall--
``(A) if the violation is not a result of gross
negligence by the licensed dealer--
``(i) in the case of the 1st such violation
by the licensed dealer, if not preceded by a
violation to which subparagraph (B) applies,
transmit to the licensed dealer a written
notice specifying the violation, which shall
include a copy of the provision of law or
regulation violated and a plan for how to cure
the violation;
``(ii) in the case of the 2nd such
violation by the licensed dealer, if not
preceded by a violation to which subparagraph
(B) applies, impose a civil money penalty in an
amount that is not less than $2,500 and not
more than $20,000;
``(iii) in the case of the 3rd such
violation by the licensed dealer, if not
preceded by a violation to which subparagraph
(B) applies, suspend the license to deal in
firearms issued to the licensed dealer under
this chapter until the violation ceases;
``(iv) in the case of the 4th such
violation by the licensed dealer, whether or
not preceded by a violation to which
subparagraph (B) applies, revoke the license;
or
``(v) in the case of any such violation by
the licensed dealer, if preceded by a violation
to which subparagraph (B) applies, apply the
penalty authorized under this subsection that
is 1 level greater in severity than the level
of severity of the penalty most recently
applied to the licensed dealer under this
subsection; or
``(B) if the violation is a result of such gross
negligence--
``(i) in the case of the 1st such violation
by the licensed dealer, impose a civil money
penalty in an amount that is not less than
$2,500 and not more than $20,000;
``(ii) in the case of the 2nd such
violation by the licensed dealer--
``(I) impose a civil money penalty
in an amount equal to $20,000;
``(II) suspend the license to deal
in firearms issued to the licensed
dealer under this chapter until the
violation ceases; or
``(III) revoke the license; or
``(iii) in the case of the 3rd or
subsequent such violation by the licensed
dealer, apply the penalty authorized under this
subsection that is 2 levels greater in severity
than the level of severity of the penalty most
recently applied to the licensed dealer under
this subsection.
``(2) In the case of any such violation, if the Attorney
General finds that the nature of the violation indicates that
the continued operation of a firearms business by the licensed
dealer presents an imminent risk to public safety, the Attorney
General shall, notwithstanding paragraph (1), immediately
suspend the license to deal in firearms issued to the licensed
dealer under this chapter and secure the firearms inventory of
the licensed dealer, until the violation ceases.''.
SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF CRIMINAL PROCEEDINGS
TERMINATED.
Section 923(f) of title 18, United States Code, is amended by
striking paragraph (4).
SEC. 25. REPEAL OF CERTAIN LIMITATIONS.
(a) Limitations Related to Use of Firearms Trace Data.--
(1) The matter under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of division B of the Consolidated and Further
Continuing Appropriations Act, 2012 (18 U.S.C. 923 note; Public
Law 112-55; 125 Stat. 609-610) is amended by striking the 6th
proviso.
(2) The 6th proviso under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of division B of the Consolidated Appropriations Act,
2010 (18 U.S.C. 923 note; Public Law 111-117; 123 Stat. 3128-
3129) is amended by striking ``beginning in fiscal year 2010
and thereafter'' and inserting ``in fiscal year 2010''.
(3) The 6th proviso under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of division B of the Omnibus Appropriations Act, 2009
(18 U.S.C. 923 note; Public Law 111-8; 123 Stat. 574-576) is
amended by striking ``beginning in fiscal year 2009 and
thereafter'' and inserting ``in fiscal year 2009''.
(4) The 6th proviso under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title II of division B of the Consolidated Appropriations Act,
2008 (18 U.S.C. 923 note; Public Law 110-161; 121 Stat. 1903-
1904) is amended by striking ``beginning in fiscal year 2008
and thereafter'' and inserting ``in fiscal year 2008''.
(5) The 6th proviso under the heading ``Bureau of Alcohol,
Tobacco, Firearms and Explosives--Salaries and Expenses'' in
title I of the Science, State, Justice, Commerce, and Related
Agencies Appropriations Act, 2006 (18 U.S.C. 923 note; Public
Law 109-108; 119 Stat. 2295-2296) is amended by striking ``with
respect to any fiscal year''.
(6) The 6th proviso under the heading in title I of
division B of the Consolidated Appropriations Act, 2005 (18
U.S.C. 923 note; Public Law 108-447; 118 Stat. 2859-2860) is
amended by striking ``with respect to any fiscal year''.
(7) Section 644 of title VI of division J of the
Consolidated Appropriations Resolution, 2003 (5 U.S.C. 552
note; Public Law 108-7; 117 Stat. 473-474) is amended by
striking ``or any other Act with respect to any fiscal year''.
(b) Limitations Relating to Consolidating and Centralizing
Records.--The matter under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title I of division
B of the Consolidated and Further Continuing Appropriations Act, 2012
(18 U.S.C. 923 note; Public Law 112-55; 125 Stat. 609) is amended in
the 1st proviso by striking ``or hereafter''.
(c) Requirement To Destroy Instant Criminal Background Check
Records Within 24 Hours.--Section 511 of the Consolidated and Further
Continuing Appropriations Act, 2012 (18 U.S.C. 922 note; Public Law
112-55; 125 Stat. 632) is amended--
(1) by striking ``for--'' and all that follows through
``(1)''; and
(2) by striking the semicolon and all that follows and
inserting a period.
SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OPERATION INVESTIGATORS
FOR BATFE.
The Attorney General may hire 650 Industry Operation Investigators
for the Bureau of Alcohol, Tobacco, Firearms and Explosives, to be
distributed among the various field divisions to match the number and
distribution of persons licensed under chapter 44 of title 18, United
States Code, in addition to any personnel needed to carry out this Act
and any Industry Operation Investigators authorized by other law.
SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT.
Within 2 years after the date of the enactment of this Act, the
Attorney General shall submit to the Congress and publish publicly on
the website of the Department of Justice a written report on the
implementation of this Act and the amendments made by this Act,
including any steps needed to complete the implementation, which shall
identify any additional resources that are required to conduct regular
inspections under chapter 44 of title 18, United States Code, and to
ensure that this Act and the amendments made by this Act are enforced
against noncompliant federally licensed firearms dealers in a timely
manner.
SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT AND ANALYSIS.
Within 2 years after the date of enactment of this Act, and
annually thereafter, the Attorney General shall submit to the Congress
and publish publicly on the website of the Department of Justice, a
written report which states--
(1) the number of inspections conducted of Type 01, 02, and
07 Federal firearm licensees (dealers, pawnbrokers, and
manufacturers) in the preceding 24 months, by each field
division of the Bureau of Alcohol, Tobacco, Firearms and
Explosives (in this section referred to as the ``BATFE''),
including by the number of inspections of high risk dealers and
non-high risk dealers;
(2) the number of security inspections prompted by dealer
reports of lost or stolen firearms, and the number of follow-up
inspections conducted 6 months after an inspection revealing a
violation;
(3) the average time spent on high risk, non-high risk,
security, and follow up inspections; and
(4) an analysis of the most frequently cited violations and
corrective actions or penalties imposed in each instance,
including--
(A) the number of licenses recommended to be
suspended or revoked;
(B) the number of licensees sent notices of
suspension or revocation;
(C) the number of hearings requested by licensees
on receipt of notice of suspension or revocation;
(D) the number of suspension or revocation hearings
initiated in a prior 12-month period that remain
ongoing during the 12-month period covered by the
report; and
(E) the decision ultimately rendered in each such
matter by the Director of the BATFE.
SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.
Within two years after the date of enactment of this Act, the
Attorney General shall prescribe, in final form, all regulations
required to carry out this Act and the amendments made by this Act.
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