[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1294 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1294
To modernize the business of selling firearms.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2025
Mr. Durbin (for himself, Mr. Whitehouse, Mr. Blumenthal, Ms. Hirono,
Mr. Booker, Mr. Padilla, Mr. Welch, Mrs. Shaheen, and Mr. Reed)
introduced the following bill; which was read twice and 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Firearm
Licensee Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Repeal of temporary Brady provision.
Sec. 5. Physical security of licensee premises.
Sec. 6. Business inventory firearms.
Sec. 7. Electronic records.
Sec. 8. Notification of default transfers.
Sec. 9. Multiple firearm sales records and reports.
Sec. 10. Safety devices and warnings to purchasers.
Sec. 11. Inspections.
Sec. 12. Authority with regard to license issuance and renewal.
Sec. 13. Increased licensing fees.
Sec. 14. Elimination of obligatory stay of effective date of license
revocation.
Sec. 15. Elimination of relief for dealers indicted for a crime
punishable by imprisonment for a term
exceeding one year.
Sec. 16. Elimination of relief while Federal disability relief
application pending.
Sec. 17. Presumption of knowledge of State law in sale of long guns to
residents of another State.
Sec. 18. Increased penalties for knowing transfer of firearm without
conducting a background check.
Sec. 19. Unlawful acts upon incurring Federal disability or notice of
license suspension, revocation, or denied
renewal.
Sec. 20. Regulation of facilitators of firearm transfers.
Sec. 21. Dealer and employee background checks.
Sec. 22. Liability standards.
Sec. 23. Civil enforcement.
Sec. 24. Removal of bar on civil proceedings if criminal proceedings
terminated.
Sec. 25. Repeal of certain limitations.
Sec. 26. Authority to hire additional industry operation investigators
for Bureau of Alcohol, Tobacco, Firearms,
and Explosives.
Sec. 27. Report on implementation of this Act.
Sec. 28. Annual licensed dealer inspections report and analysis.
Sec. 29. Deadline for issuance of final regulations.
SEC. 2. FINDINGS.
Congress finds the following:
(1) A growing body of evidence demonstrates that firearm
dealers' sales practices affect the probability of firearms
getting to criminals and that policies designed to hold firearm
sellers accountable can curtail the diversion of firearms to
criminals.
(2) Federal laws governing firearm dealers--
(A) have not been updated in more than 30 years;
(B) contain safeguards that protect dealers who
engage in illegal practices from adverse enforcement
action;
(C) frustrate law enforcement efforts to curb
firearm trafficking and violence; and
(D) are, thus, inadequate to meet the realities of
the 21st century.
(3)(A) The Tiahrt Amendments, for one--
(i) severely limit the authority of the Bureau of
Alcohol, Tobacco, Firearms, and Explosives (commonly
known as the ``ATF'') to disclose crime firearm trace
data to the public;
(ii) prevent--
(I) the collection of valuable information;
and
(II) the establishment of effective
policies to prevent illegal firearms from being
used in crimes; and
(iii) impede enforcement of the firearm laws by--
(I) requiring most background check records
to be destroyed within 24 hours; and
(II) barring the Government from requiring
owners of firearm shops to conduct annual
inventory audits.
(B) Repealing the Tiahrt Amendments would support law
enforcement efforts and give the public vital information
needed to craft the most effective policies against illegal
firearms.
(4) Additionally, Federal law imposes no requirements that
firearm dealers physically secure their highly valuable and
lethal inventory. The number of firearm thefts from licensed
firearm dealers has increased more than the number from any
other source. Between 2013 and 2017, the number of firearms
stolen in firearm-dealer burglaries more than doubled and the
number of firearms stolen in firearm-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--
``(A) the transaction violates the terms of service of the
website or mobile application; and
``(B) 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 a
variant 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 a variant 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 term `variant' means 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.
``(43) The term `semiautomatic shotgun' means any repeating shotgun
that--
``(A) utilizes a portion of the energy of a firing shell to
extract the fired shell casing and chamber the next round; and
``(B) requires a separate pull of the trigger to fire each
shell.''.
SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION.
(a) In General.--Section 922 of title 18, United States Code, is
amended by striking subsection (s).
(b) Conforming Amendments.--Chapter 44 of title 18, United States
Code, is amended--
(1) in section 922--
(A) in subsection (t)--
(i) in paragraph (3)(C)(ii), by striking
``(as defined in subsection (s)(8))''; and
(ii) by adding at the end the following:
``(8) For purposes of this subsection, the term `chief law
enforcement officer' means the chief of police, the sheriff, or an
equivalent officer or the designee of any such individual.''; and
(B) in subsection (y)(2), in the matter preceding
subparagraph (A), by striking ``, (g)(5)(B), and
(s)(3)(B)(v)(II)'' and inserting ``and (g)(5)(B)'';
(2) in section 924(a)(5), by striking ``subsection (s) or
(t) of section 922'' and inserting ``section 922(t)''; and
(3) in section 925A, in the matter preceding paragraph (1),
by striking ``subsection (s) or (t) of section 922'' and
inserting ``section 922(t)''.
SEC. 5. PHYSICAL SECURITY OF LICENSEE PREMISES.
(a) Security Plan Submission Requirement.--
(1) In general.--Section 923(d)(1)(G) of title 18, United
States Code, is amended--
(A) by striking ``, the applicant'' and inserting
the following: ``--
``(i) the applicant'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(ii) the applicant--
``(I) 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
``(II) certifies that, if issued such a
license, the applicant will comply with the
plan described in subclause (I).''.
(2) Written approval required before license renewal.--
Section 923(d)(1) of title 18, United States Code, is amended--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G), as amended by paragraph
(1), by striking the period at the end and inserting
``; and''; and
(C) 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) no license issued to the applicant under
this chapter has been 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)(ii)(I).''.
(3) Applicability to existing dealers whose license will
expire .--
(A) In general.--If, not later than 1 year after
the date on which regulations are prescribed under
section 926(d) of title 18, United States Code (as
added by subsection (c) of this section), a person
described in subparagraph (B) of this paragraph submits
to the Attorney General a security plan described in
clause (ii)(I) of section 923(d)(1)(G) of that title
(as added by paragraph (1) of this subsection), the
security plan shall be considered to have been
submitted in accordance with such section 923(d)(1)(G).
(B) Person described.--A person described in this
subparagraph is a person--
(i) who, on the date of enactment of this
Act, is a licensed dealer (as defined in
section 921(a)(11) of title 18, United States
Code); and
(ii) whose license to deal in firearms
issued under chapter 44 of title 18, United
States Code, will expire on or after the date
that is 1 year after the date on which
regulations are prescribed under section 926(d)
of that title (as added by subsection (c) of
this section).
(b) Annual Compliance Certification Requirement.--
(1) In general.--Section 923 of title 18, United States
Code, is amended by adding at the end the following:
``(m) Annual Certification.--
``(1) In general.--Each licensed manufacturer, licensed
importer, and licensed dealer shall--
``(A) 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
``(B) in the case of a licensed dealer, include
with the certification under subparagraph (A)--
``(i) 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
``(ii) all dispositions and acquisitions of
resale firearms in the year covered by the
certification, identifying and reporting any
missing firearm.
``(2) Civil penalty.--The Attorney General shall impose a
civil 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.--In the case of a person who, on the
date of enactment of this Act, is a licensee referred to in
section 923(m) of title 18, United States Code (as added by
paragraph (1)), such section 923(m) shall apply to the person
on and after the date that is 1 year after the date on which
regulations are prescribed under subsection (d) of section 926
of that title (as added by subsection (c)(1)).
(c) Regulations.--
(1) In general.--Section 926 of title 18, United States
Code, is amended by adding at the end the following:
``(d) Securing Premises From Theft.--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)(ii)(I), if
applicable;
``(2) the use of locked metal cabinets and fireproof safes;
``(3) security systems, video monitoring, and anti-theft
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 specific circumstances of the licensee.''.
(2) Applicability.--The regulations prescribed under
section 926(d) of title 18, United States Code, as added by
paragraph (1), 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 that title, until the date that is 1 year after the
date on which the regulations are prescribed.
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 second 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 third 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 title 18,
United States Code, is amended by adding at the end the following:
``(8)(A) Each quarter, a licensee shall conduct a physical check of
the firearms inventory of the business of the licensee licensed under
this chapter and report to the Attorney General and appropriate local
authorities any firearm that is lost, stolen, or unaccounted for.
``(B) The Attorney General shall prescribe regulations to implement
the requirements under subparagraph (A), which shall require, at a
minimum, that a licensee record, for each firearm in the inventory of
the licensee--
``(i) the date of receipt of the firearm;
``(ii) the name, address, and license number, if
applicable, of the person from whom the firearm was received;
``(iii) the name of the manufacturer and, if applicable,
importer of the firearm;
``(iv) the model, serial number, type, and caliber or gauge
of the firearm; and
``(v) the date of the sale or other disposition of the
firearm.
``(C) Nothing in this paragraph shall be construed 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) Fiscal year 2013.--The fifth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' 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) Fiscal year 2012.--The matter under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated and Further Continuing
Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 609) is
amended by striking the seventh proviso.
(3) Fiscal year 2010.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated Appropriations Act, 2010 (Public
Law 111-117; 123 Stat. 3129) is amended by striking ``or any
other''.
(4) Fiscal year 2009.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Omnibus Appropriations Act, 2009 (Public Law
111-8; 123 Stat. 575) is amended by striking ``or any other''.
(5) Fiscal year 2008.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated Appropriations Act, 2008 (Public
Law 110-161; 121 Stat. 1904) is amended by striking ``or any
other''.
(6) Fiscal year 2006.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title I of the
Science, State, Justice, Commerce, and Related Agencies
Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2296)
is amended by striking ``or any other''.
(7) Fiscal year 2005.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title I of
division B of the Consolidated Appropriations Act, 2005 (Public
Law 108-447; 118 Stat. 2860) is amended by striking ``or any
other''.
(8) Fiscal year 2004.--The seventh proviso under the
heading ``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title I of
division B of the Consolidated Appropriations Act, 2004 (Public
Law 108-199; 118 Stat. 53) is amended by striking ``or any
other''.
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 first sentence, by inserting before the
period at the end the following: ``, except that,
notwithstanding any other provision of law, on and
after the date that is 1 year after the date of
enactment of the Federal Firearm Licensee Act, records
prepared by a licensee 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''; and
(B) by striking the second 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 title 18, United States
Code, as amended by section 6, is amended by adding at the end the
following:
``(9)(A) Not later than 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
subparagraph (A); 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 subparagraph (A) only to
obtain information related to any Federal, State, local, tribal, or
foreign criminal investigation.
``(E) The electronic databases established under subparagraph (A)--
``(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
title 18, United States Code, as amended by subsection (b), is amended
by adding at 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 title 18,
United States Code, is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and adjusting the margins
accordingly;
(2) by moving the matter following clause (ii) (as so
redesignated) 2 ems to the right;
(3) in the matter following clause (ii) (as so
redesignated), by striking ``one year'' and inserting ``5
years'';
(4) by inserting ``(A)'' after ``(3)''; and
(5) by adding at the end the following:
``(B) If the conduct described in clause (i) or (ii) of
subparagraph (A) is in relation to an offense under subsection (a)(6)
or (d) of section 922, the licensed dealer, licensed importer, licensed
manufacturer, or licensed collector 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 title 18, United States Code, is amended, in the matter
following paragraph (3)--
(1) in the first sentence, 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''; and
(2) in the second sentence, by striking ``Secretary's'' and
inserting ``Attorney General's''.
(f) Electronic Recordkeeping Adoption and Implementation.--Section
926 of title 18, United States Code, as amended by section 5, is
amended by adding at the end the following:
``(e) Facilitation of Electronic Recordkeeping.--The Attorney
General--
``(1) shall facilitate and incentivize the conversion to,
and adoption of, electronic recordkeeping solutions by
licensees that enable electronic completion and submission to
the Attorney General of all records required to be maintained
under this chapter;
``(2) shall facilitate--
``(A) digital capture of paper records of licensed
dealers; and
``(B) 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, with respect to the electronic
databases established under section 923(g)(9)(A)--
``(A) remote access to electronic records of
licensed dealers by law enforcement authorities for
purposes of investigating a violent crime or crime gun
trace; and
``(B) access by licensed dealers to only their own
records; and
``(4) may 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) of title 18, United States Code, is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(E) in the case of a transfer conducted pursuant to
subparagraph (B)(ii) or clause (ii) or (iii) of subparagraph
(C), the licensee notifies the Attorney General, not later than
the close of business on the day on which the firearm is
transferred, that the firearm has been transferred to the
person.''.
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) in the first sentence, 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 first 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 a magazine 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 title 18, United States
Code, is amended--
(1) by striking ``destroy'' and inserting ``retain for not
less than 90 business days'';
(2) by striking ``(other than the identifying number and
the date the number was assigned)''; and
(3) by inserting before the period at the end the
following: ``solely for purposes related to discovering misuse
or avoidance of the national instant criminal background check
system or ensuring its proper operation''.
(c) Attorney General Reports of Multiple Sales by Non-Licensees.--
Section 923(g)(3) of title 18, United States Code, is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following:
``(B)(i) 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 under section
922(t)(2)(C) on 2 or more occasions in any period of 5 consecutive
business days.
``(ii) The report described in clause (i) 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 under subsection (t).
``(iii) The Attorney General shall forward the report described in
clause (i) 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.''.
(d) Records Retention To Investigate Crime Guns.--Section
923(g)(3)(C) of title 18, United States Code, as redesignated by
subsection (c)(1) of this section, is amended--
(1) in the first sentence--
(A) by inserting ``a firearm involved in a crime
or'' after ``Except in the case of forms and contents
thereof regarding''; and
(B) 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 not less than
180 days after the date on which the form is
received''; and
(2) by striking the second 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.--
``(A) In general.--A licensed dealer 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.
``(B) Materials.--
``(i) Development and distribution by
attorney general.--The Attorney General shall--
``(I) develop materials regarding
suicide prevention, securing firearms
from loss, theft, or access by a minor
or prohibited person, and straw
purchasing; and
``(II) provide the materials
developed under subclause (I) to each
licensed dealer.
``(ii) Dissemination by dealers.--A
licensed dealer shall disseminate the materials
described in clause (i) upon transfer of a
firearm to a person not licensed under this
chapter.''.
SEC. 11. INSPECTIONS.
(a) Mandated Annual Inspections of High-Risk Licensed Dealers and
Quinquennial Inspections of Other Licensed Dealers.--Section
923(g)(1)(B) of title 18, United States Code, is amended--
(1) in clause (ii), by redesignating subclauses (I) and
(II) as items (aa) and (bb), respectively, and adjusting the
margins accordingly;
(2) by redesignating clauses (i), (ii), and (iii) as
subclauses (I), (II), and (III), respectively, and adjusting
the margins accordingly;
(3) by inserting ``(i)'' after ``(B)''; and
(4) by adding at the end the following:
``(ii)(I) The Attorney General--
``(aa) not less frequently than annually, 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 include
whether--
``(AA) during the preceding 5 years, the dealer
reported a lost or stolen firearm;
``(BB) during the preceding 10 years, the dealer
was issued a report of violation, received a warning
letter, or was the subject of a warning conference; or
``(CC) during the preceding year, multiple firearms
were determined to have been used in a crime under
Federal, State, or local law within 3 years after sale
by the dealer; and
``(bb) may appoint an attorney to ensure that high-risk
dealers comply with all applicable firearm sales laws.
``(II) An attorney appointed under subclause (I)(bb) may, with
respect to high-risk dealers, 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 firearm sales until the attorney
certifies to the Attorney General that the high-risk dealer has
complied with all applicable firearm sales laws for 3 consecutive
years.
``(III) Not later than 180 days after the date on which an
inspection or examination under subclause (I) reveals a violation of
this section or any regulation prescribed under this chapter, and not
later than 180 days after a security inspection conducted under
paragraph (6)(B)(i) of this subsection, the Attorney General shall
conduct an inspection or examination to determine whether the violation
identified in the preceding inspection or examination has been cured.
``(IV) Not less frequently than once every 5 years, the Attorney
General shall inspect or examine the inventory, records, and business
premises of each licensed dealer that the Attorney General has not
determined to be a high-risk dealer under subclause (I).''.
(b) Elimination of Limit on Inspection of Licensee Records.--
Section 923(g)(1)(B)(i)(II) of title 18, United States Code, as
redesignated by subsection (a), is amended--
(1) by striking ``--'' and all that follows through
``(bb)''; 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 title 18, United States Code, is
amended--
(1) by inserting ``(A)'' after ``(6)''; and
(2) by adding at the end the following:
``(B)(i) If the Attorney General receives a report under
subparagraph (A) from a licensed dealer, 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 under subsection (d)(1)(G)(ii).
``(ii) On completion of a security inspection under clause (i), 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 title 18, United States Code, is amended by striking the
sixth sentence.
SEC. 12. AUTHORITY WITH REGARD 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 ``the 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 that--
``(A) issuing the license would pose a danger to public
safety; or
``(B) 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 matter preceding subparagraph (A), by
striking ``shall'' and inserting ``or renewal thereof
shall, subject to subsection (c)(2),'';
(B) in subparagraph (C), by striking ``not
willfully violated'' and inserting ``no uncured
violations of''; and
(C) in subparagraph (F)--
(i) in clause (ii), by striking ``and'' at
the end; and
(ii) by adding at the end the following:
``(iv) each employee employed in the
business--
``(I) 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
``(II) is 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)
(as applicable) of section 922 or by
State, local, or Tribal law; and''.
(b) Authority To Revoke or Suspend Licenses.--Section 923 of title
18, United States Code, is amended--
(1) in subsection (e)--
(A) in the first sentence, by inserting ``or
suspend'' after ``revoke''; and
(B) in the third sentence, by striking
``Secretary's'' and inserting ``Attorney General's'';
and
(2) in subsection (f)--
(A) in paragraph (1)--
(i) by inserting ``or suspended'' after
``revoked'' each place it appears; and
(ii) by inserting ``or suspension'' after
``revocation'' each place it appears;
(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 inserting ``or suspend'' after
``revoke'' each place it appears; and
(ii) by striking ``or revocation'' and
inserting ``, revocation, or suspension''.
(c) Authority To Promulgate Rules.--Section 926(a) of title 18,
United States Code, is amended, in the matter preceding paragraph (1),
by striking ``only''.
(d) Repeal of Riders Limiting Use of Funds To Deny Licenses Due to
Lack of Business Activity.--
(1) Fiscal year 2013.--The matter under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' 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) is amended by striking the sixth proviso.
(2) Fiscal year 2012.--The matter under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated and Further Continuing
Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 609) is
amended by striking the ninth 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 title 18,
United States Code, 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 second 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--
(1) by striking subsection (b); and
(2) by redesignating subsections (c) through (f) as
subsections (b) through (e), respectively.
(b) Conforming Amendments.--
(1) Chapter 44 of title 18, united states code.--Chapter 44
of title 18, United States Code, is amended--
(A) in section 922--
(i) in subsection (d), in the second
sentence--
(I) by striking ``licensed
importer, licensed manufacturer,
licensed dealer, or licensed collector
who pursuant to subsection (b) of
section 925 is not precluded from
dealing in firearms or ammunition, or
to a''; and
(II) by striking ``subsection (c)
of section 925'' and inserting
``section 925(b)'';
(ii) in subsection (l), by striking
``925(d) of this chapter'' and inserting
``925(c)''; and
(iii) in subsection (r), by striking
``925(d)(3) of this chapter'' and inserting
``925(c)(3)''; and
(B) in section 925(f), by striking ``subsection
(d)'' and inserting ``subsection (c)''.
(2) Foreign military sales act.--Section 38(b)(1)(B)(i) of
the Foreign Military Sales Act (22 U.S.C. 2778(b)(1)(B)(i)) is
amended by striking ``925(e)'' and inserting ``925(d)''.
(3) NICS improvement amendments act of 2007.--Section
101(c)(2)(A)(iii) of the NICS Improvement Amendments Act of
2007 (34 U.S.C. 40911(c)(2)(A)(iii)) is amended by striking
``925(c)'' and inserting ``925(b)''.
(4) Atomic energy act of 1954.--Section 161A(b) of the
Atomic Energy Act of 1954 (42 U.S.C. 2201a(b)) is amended by
striking ``925(d)(3)'' 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 amended by striking the fourth
sentence and inserting the following: ``This subsection shall not be
construed 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 before the period at the end the following: ``in the case of
the first 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''.
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) Unlawful Acts Upon Incurring Federal Disability or Notice of
License Suspension, Revocation, or Denied Renewal.--
``(1) In general.--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) Waiver.--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 title 18, United States Code, is
amended by adding at the end the following:
``(9) Whoever knowingly violates section 922(aa) shall be fined
under this title, imprisoned for not more than 1 year, or both.''.
(c) Notice Requirement.--Section 923(f)(1) of title 18, United
States Code, is amended, in the first sentence, by inserting before the
period at the end the following: ``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)''.
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 title 18, United
States Code, as amended by section 5, is amended by adding at the end
the following:
``(n) Duties of Facilitators.--
``(1) In general.--A licensed facilitator shall--
``(A) inform each prospective seller using the
commercial marketplace of the licensed facilitator that
any offer for firearm sales, purchases, or other
transfers made using the 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 each prospective firearm seller using
the commercial marketplace of the licensed facilitator
to complete each firearm sale, purchase, or other
transfer as described in subparagraph (A); and
``(C) maintain records of any sale, purchase, or
other transfer described in subparagraph (A), which
shall include--
``(i) the date of the offer;
``(ii) the name of the offeror;
``(iii) the name and the licensee number of
the licensee that will take possession of the
firearm directly from the transferor; and
``(iv) the model, serial number, type, and
caliber or gauge of the firearm involved.
``(2) Advance identification of licensed dealer.--A
licensed facilitator may require a prospective seller, as a
condition of using the commercial marketplace of the licensed
facilitator, to, before offering a firearm for sale, identify a
licensed dealer that will take possession of the firearm and
complete the sale.
``(3) Licensee compliance.--On taking possession of a
firearm sold, purchased, or otherwise transferred in a
commercial marketplace of a licensed facilitator, 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 title 18, United States Code, 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 subsection
(n)(1), 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)--
``(A) except as provided in subparagraph (B), shall be
fined under this title, imprisoned for not more than 1 year, or
both; or
``(B) if transfer of the firearm 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), shall be fined under this title, imprisoned for not
more than 10 years, or both.''.
(d) Conforming Amendments.--Chapter 44 of title 18, United States
Code, is amended--
(1) in section 922--
(A) in subsection (a)--
(i) in paragraph (1)--
(I) in subparagraph (A), by
striking ``or'' at the end;
(II) in subparagraph (B), by adding
``or'' at the end; 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 firearm sales, purchases, or other
transfers are allowed to be made;''; and
(ii) in paragraph (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
(B) in subsection (m), by striking ``or licensed
collector'' and inserting ``licensed collector, or
licensed facilitator'';
(2) in section 923--
(A) in subsection (c)(1), as so designated by
section 12 of this Act, in the first sentence, 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 matter preceding clause (i)--
(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'';
(ii) in clause (i), by striking ``or
licensed collector'' and inserting ``, licensed
collector, or licensed facilitator''; and
(iii) in clause (ii), by striking ``or
licensed collector'' and inserting ``, licensed
collector, or licensed facilitator''; and
(C) in subsection (j), in the first sentence, by
striking ``or licensed dealer'' and inserting
``licensed dealer, or licensed facilitator''; and
(3) in section 924(a)(3), as amended by section 7--
(A) in subparagraph (A), in the matter preceding
clause (i), by striking ``or licensed collector'' and
inserting ``licensed collector, or licensed
facilitator''; and
(B) in subparagraph (B), 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)(1) of title 18, United
States Code, as so designated by section 12 of this Act, is
amended by inserting after the first 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 (34 U.S.C. 40901) 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) (as applicable) of section 922 or
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 title 18, United States
Code, as amended by section 7 of this Act, is amended by adding
at the end the following:
``(11) A licensed dealer may 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 (34
U.S.C. 40901) to determine whether transfer of a firearm to, or
receipt of a firearm by, the individual would be unlawful; and
``(C) the system has notified the licensee that the
information available to the system does not demonstrate that
the transfer of a firearm to, or receipt of a firearm by, the
individual would violate subsection (d), (g), or (n) (as
applicable) of section 922 or 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 title 18, United States
Code, 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) If the Attorney General finds that a person has engaged in
conduct that constitutes a violation of section 922(a)(1)(A), the
Attorney General shall--
``(A) transmit to the person a written notice specifying
the violation, which shall include a copy of the provision of
law violated; and
``(B) impose on the person a civil 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 title 18, United States Code, is
amended by adding at the end the following:
``(q) Penalties Relating to Violations of Regulations by Licensed
Dealers.--
``(1) In general.--If the Attorney General finds a licensed
dealer 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 first 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 regulation
violated;
``(ii) in the case of the second such
violation by the licensed dealer, if not
preceded by a violation to which subparagraph
(B) applies, impose a civil penalty in an
amount that is not less than $2,500 and not
more than $20,000;
``(iii) in the case of the third 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 fourth 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 gross
negligence by the licensed dealer--
``(i) in the case of the first such
violation by the licensed dealer, impose a
civil penalty in an amount that is not less
than $2,500 and not more than $20,000;
``(ii) in the case of the second such
violation by the licensed dealer--
``(I) impose a civil penalty in an
amount equal to $20,000; and
``(II) suspend the license to deal
in firearms issued to the licensed
dealer under this chapter until the
violation ceases; or
``(iii) in the case of the third such
violation by the licensed dealer, revoke the
license to deal in firearms issued to the
licensed dealer under this chapter.
``(2) Suspension of license.--In the case of any violation
described in paragraph (1), 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, unless the
appropriate penalty under paragraph (1) is revocation of the
license, in which case the Attorney General shall immediately
revoke the license and secure the firearms inventory of the
licensed dealer.''.
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) Fiscal year 2012.--The matter under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II 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 by striking the sixth proviso.
(2) Fiscal year 2010.--The sixth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated Appropriations Act, 2010 (Public
Law 111-117; 123 Stat. 3128) is amended by striking ``beginning
in fiscal year 2010 and thereafter'' and inserting ``in fiscal
year 2010''.
(3) Fiscal year 2009.--The sixth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Omnibus Appropriations Act, 2009 (Public Law
111-8; 123 Stat. 575) is amended by striking ``beginning in
fiscal year 2009 and thereafter'' and inserting ``in fiscal
year 2009''.
(4) Fiscal year 2008.--The sixth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title II of
division B of the Consolidated Appropriations Act, 2008 (Public
Law 110-161; 121 Stat. 1903) is amended by striking ``beginning
in fiscal year 2008 and thereafter'' and inserting ``in fiscal
year 2008''.
(5) Fiscal year 2006.--The sixth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title I of the
Science, State, Justice, Commerce, and Related Agencies
Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2295)
is amended by striking ``with respect to any fiscal year''.
(6) Fiscal year 2005.--The sixth proviso under the heading
``salaries and expenses'' under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives'' in title I of
division B of the Consolidated Appropriations Act, 2005 (Public
Law 108-447; 118 Stat. 2859) is amended by striking ``with
respect to any fiscal year''.
(7) Fiscal year 2023.--Section 644 of division J of the
Consolidated Appropriations Resolution, 2003 (5 U.S.C. 552
note; Public Law 108-7; 117 Stat. 473) is amended by striking
``or any other Act with respect to any fiscal year''.
(b) Limitations Relating to Consolidating and Centralizing
Records.--The first proviso under the heading ``salaries and expenses''
under the heading ``Bureau of Alcohol, Tobacco, Firearms and
Explosives'' in title II 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 by striking ``or hereafter''.
(c) Requirement To Destroy Instant Criminal Background Check
Records Within 24 Hours.--Section 511 of division B of the Consolidated
and Further Continuing Appropriations Act, 2012 (34 U.S.C. 40901 note;
Public Law 112-55; 125 Stat. 632) is amended--
(1) by striking ``--'' 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 BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.
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 the amendments made by this Act and any industry operation
investigators authorized by other law.
SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT.
Not later than 2 years after the date of enactment of this Act, the
Attorney General shall submit to Congress and publish 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--
(1) conduct regular inspections under chapter 44 of title
18, United States Code; and
(2) 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.
(a) In General.--Not later than 2 years after the date of enactment
of this Act, and annually thereafter, the Attorney General shall submit
to Congress and publish on the website of the Department of Justice a
report that contains the information described in subsection (b) with
respect to--
(1) the preceding 2-year period, in the case of the first
report; or
(2) the preceding year, in the case of each subsequent
report.
(b) Contents.--Each report under subsection (a) shall state, with
respect to the applicable reporting period--
(1) the number of inspections or examinations conducted of
Type 01, Type 02, and Type 07 Federal firearm licensees
(dealers, pawnbrokers, and manufacturers, respectively) by each
field division of the Bureau of Alcohol, Tobacco, Firearms, and
Explosives, including by the number of inspections or
examinations of high-risk dealers (as that term is used in
clause (ii) of section 923(g)(1)(B) of title 18, United States
Code, as added by section 11 of this Act) and non-high-risk
dealers;
(2) the number of security inspections under subparagraph
(B) of section 923(g)(6) of title 18, United States Code, as
added by section 11 of this Act, prompted by dealer reports of
lost or stolen firearms under subparagraph (A) of such section
923(g)(6), as so designated by section 11 of this Act, and the
number of follow-up security inspections conducted during the
6-month period following a security inspection revealing a
violation;
(3) the average amount of time spent on--
(A) inspections or examinations of high-risk
dealers (as described in paragraph (1));
(B) inspections or examinations of non-high-risk
dealers (as described in paragraph (1));
(C) security inspections (as described in paragraph
(2)); and
(D) follow-up security inspections (as described in
paragraph (2)); and
(4) an analysis of the most frequently cited violations and
corrective actions or penalties imposed in each inspection or
examination described in paragraph (1) or security inspection
described in paragraph (2), 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 a notice of suspension or revocation;
(D) the number of suspension or revocation hearings
initiated during 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 Bureau of Alcohol,
Tobacco, Firearms, and Explosives.
SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.
Not later than 2 years after the date of enactment of this Act, the
Attorney General shall prescribe all regulations required to carry out
this Act and the amendments made by this Act.
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