Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1294 Latest Draft

Bill / Introduced Version Filed 04/15/2025

                            II 
119THCONGRESS 
1
STSESSION S. 1294 
To modernize the business of selling firearms. 
IN THE SENATE OF THE UNITED STATES 
APRIL3, 2025 
Mr. D
URBIN(for himself, Mr. WHITEHOUSE, Mr. BLUMENTHAL, Ms. HIRONO, 
Mr. B
OOKER, Mr. PADILLA, Mr. WELCH, Mrs. SHAHEEN, and Mr. 
R
EED) 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘Federal Firearm Licensee Act’’. 5
(b) T
ABLE OFCONTENTS.—The table of contents for 6
this Act is as follows: 7
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. 
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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 im-
prisonment 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 resi-
dents 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 Bu-
reau 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. 
1
Congress finds the following: 2
(1) A growing body of evidence demonstrates 3
that firearm dealers’ sales practices affect the prob-4
ability of firearms getting to criminals and that poli-5
cies designed to hold firearm sellers accountable can 6
curtail the diversion of firearms to criminals. 7
(2) Federal laws governing firearm dealers— 8
(A) have not been updated in more than 9
30 years; 10
(B) contain safeguards that protect dealers 11
who engage in illegal practices from adverse en-12
forcement action; 13
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(C) frustrate law enforcement efforts to 1
curb firearm trafficking and violence; and 2
(D) are, thus, inadequate to meet the reali-3
ties of the 21st century. 4
(3)(A) The Tiahrt Amendments, for one— 5
(i) severely limit the authority of the Bu-6
reau of Alcohol, Tobacco, Firearms, and Explo-7
sives (commonly known as the ‘‘ATF’’) to dis-8
close crime firearm trace data to the public; 9
(ii) prevent— 10
(I) the collection of valuable informa-11
tion; and 12
(II) the establishment of effective poli-13
cies to prevent illegal firearms from being 14
used in crimes; and 15
(iii) impede enforcement of the firearm 16
laws by— 17
(I) requiring most background check 18
records to be destroyed within 24 hours; 19
and 20
(II) barring the Government from re-21
quiring owners of firearm shops to conduct 22
annual inventory audits. 23
(B) Repealing the Tiahrt Amendments would 24
support law enforcement efforts and give the public 25
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vital information needed to craft the most effective 1
policies against illegal firearms. 2
(4) Additionally, Federal law imposes no re-3
quirements that firearm dealers physically secure 4
their highly valuable and lethal inventory. The num-5
ber of firearm thefts from licensed firearm dealers 6
has increased more than the number from any other 7
source. Between 2013 and 2017, the number of fire-8
arms stolen in firearm-dealer burglaries more than 9
doubled and the number of firearms stolen in fire-10
arm-dealer robberies tripled. 11
SEC. 3. DEFINITIONS. 12
Section 921(a) of title 18, United States Code, is 13
amended by adding at the end the following: 14
‘‘(38) The term ‘facilitator’ means any person en-15
gaged in the business of hosting a commercial marketplace 16
in which offers for firearm sales, purchases, or other 17
transfers are allowed to be made, except that such a per-18
son shall not be considered to be a facilitator with respect 19
to any transaction that is made through the use of a 20
website or mobile application owned or operated by the 21
person if— 22
‘‘(A) the transaction violates the terms of serv-23
ice of the website or mobile application; and 24
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‘‘(B) the person has made a good faith effort 1
to enforce the terms of service by, at a minimum, 2
auditing firearms transactions on a quarterly basis 3
to ensure compliance with this chapter. 4
‘‘(39) The term ‘occasional’ means, with respect to 5
transactions, fewer than 5 transactions in a 12-month pe-6
riod. 7
‘‘(40) The term ‘personal collection’ includes any fire-8
arm obtained only for the personal use of an individual 9
and not for the purpose of selling or trading, except that 10
a firearm obtained through inheritance shall not be consid-11
ered part of a personal collection until the firearm has 12
been possessed for 1 year. 13
‘‘(41) The term ‘business inventory firearm’ means, 14
with respect to a person, a firearm required by law to be 15
recorded in the acquisition and disposition logs of any fire-16
arms business of the person. 17
‘‘(42)(A) The term ‘frame’ means the part of a hand-18
gun, or a variant thereof, that provides housing or a struc-19
ture for the primary energized component designed to hold 20
back the hammer, striker, bolt, or similar component prior 21
to initiation of the firing sequence (such as a sear or the 22
equivalent), even if pins or other attachments are required 23
to connect such component to the housing or structure. 24
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‘‘(B) The term ‘receiver’ means the part of a rifle, 1
shotgun, or projectile weapon other than a handgun, or 2
a variant thereof, that provides housing or a structure for 3
the primary component designed to block or seal the 4
breech prior to initiation of the firing sequence (such as 5
a bolt, breechblock, or the equivalent), even if pins or other 6
attachments are required to connect such component to 7
the housing or structure. 8
‘‘(C) For purposes of this paragraph, the term ‘vari-9
ant’ means a weapon utilizing a similar frame or receiver 10
design irrespective of new or different model designations 11
or configurations, characteristics, features, components, 12
accessories, or attachments. For example, an AK-type fire-13
arm with a short stock and a pistol grip is a pistol variant 14
of an AK-type rifle, an AR-type firearm with a short stock 15
and a pistol grip is a pistol variant of an AR-type rifle, 16
and a revolving cylinder shotgun is a shotgun variant of 17
a revolver. 18
‘‘(43) The term ‘semiautomatic shotgun’ means any 19
repeating shotgun that— 20
‘‘(A) utilizes a portion of the energy of a firing 21
shell to extract the fired shell casing and chamber 22
the next round; and 23
‘‘(B) requires a separate pull of the trigger to 24
fire each shell.’’. 25
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SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION. 1
(a) I
NGENERAL.—Section 922 of title 18, United 2
States Code, is amended by striking subsection (s). 3
(b) C
ONFORMING AMENDMENTS.—Chapter 44 of 4
title 18, United States Code, is amended— 5
(1) in section 922— 6
(A) in subsection (t)— 7
(i) in paragraph (3)(C)(ii), by striking 8
‘‘(as defined in subsection (s)(8))’’; and 9
(ii) by adding at the end the fol-10
lowing: 11
‘‘(8) For purposes of this subsection, the term ‘chief 12
law enforcement officer’ means the chief of police, the 13
sheriff, or an equivalent officer or the designee of any such 14
individual.’’; and 15
(B) in subsection (y)(2), in the matter pre-16
ceding subparagraph (A), by striking ‘‘, 17
(g)(5)(B), and (s)(3)(B)(v)(II)’’ and inserting 18
‘‘and (g)(5)(B)’’; 19
(2) in section 924(a)(5), by striking ‘‘subsection 20
(s) or (t) of section 922’’ and inserting ‘‘section 21
922(t)’’; and 22
(3) in section 925A, in the matter preceding 23
paragraph (1), by striking ‘‘subsection (s) or (t) of 24
section 922’’ and inserting ‘‘section 922(t)’’. 25
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SEC. 5. PHYSICAL SECURITY OF LICENSEE PREMISES. 1
(a) S
ECURITYPLANSUBMISSIONREQUIREMENT.— 2
(1) I
N GENERAL.—Section 923(d)(1)(G) of title 3
18, United States Code, is amended— 4
(A) by striking ‘‘, the applicant’’ and in-5
serting the following: ‘‘— 6
‘‘(i) the applicant’’; 7
(B) by striking the period at the end and 8
inserting ‘‘; and’’; and 9
(C) by adding at the end the following: 10
‘‘(ii) the applicant— 11
‘‘(I) submits with the application a se-12
curity plan that describes how the appli-13
cant will secure, in accordance with the 14
regulations issued under section 926(d), 15
the premises from which the applicant will 16
conduct business under the license (includ-17
ing in the event of a natural disaster or 18
other emergency); and 19
‘‘(II) certifies that, if issued such a li-20
cense, the applicant will comply with the 21
plan described in subclause (I).’’. 22
(2) W
RITTEN APPROVAL REQUIRED BEFORE LI -23
CENSE RENEWAL .—Section 923(d)(1) of title 18, 24
United States Code, is amended— 25
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(A) in subparagraph (F), by striking 1
‘‘and’’ at the end; 2
(B) in subparagraph (G), as amended by 3
paragraph (1), by striking the period at the end 4
and inserting ‘‘; and’’; and 5
(C) by adding at the end the following: 6
‘‘(H) in the case of an application to renew a 7
license to deal in firearms— 8
‘‘(i) the license is not suspended; 9
‘‘(ii) no license issued to the applicant 10
under this chapter has been revoked; and 11
‘‘(iii) the Attorney General has inspected 12
the premises and provided written approval of 13
the security plan submitted by the applicant 14
under subparagraph (G)(ii)(I).’’. 15
(3) A
PPLICABILITY TO EXISTING DEALERS 16
WHOSE LICENSE WILL EXPIRE .— 17
(A) I
N GENERAL.—If, not later than 1 18
year after the date on which regulations are 19
prescribed under section 926(d) of title 18, 20
United States Code (as added by subsection (c) 21
of this section), a person described in subpara-22
graph (B) of this paragraph submits to the At-23
torney General a security plan described in 24
clause (ii)(I) of section 923(d)(1)(G) of that 25
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title (as added by paragraph (1) of this sub-1
section), the security plan shall be considered to 2
have been submitted in accordance with such 3
section 923(d)(1)(G). 4
(B) P
ERSON DESCRIBED .—A person de-5
scribed in this subparagraph is a person— 6
(i) who, on the date of enactment of 7
this Act, is a licensed dealer (as defined in 8
section 921(a)(11) of title 18, United 9
States Code); and 10
(ii) whose license to deal in firearms 11
issued under chapter 44 of title 18, United 12
States Code, will expire on or after the 13
date that is 1 year after the date on which 14
regulations are prescribed under section 15
926(d) of that title (as added by sub-16
section (c) of this section). 17
(b) A
NNUALCOMPLIANCECERTIFICATIONREQUIRE-18
MENT.— 19
(1) I
N GENERAL.—Section 923 of title 18, 20
United States Code, is amended by adding at the 21
end the following: 22
‘‘(m) A
NNUALCERTIFICATION.— 23
‘‘(1) I
N GENERAL.—Each licensed manufac-24
turer, licensed importer, and licensed dealer shall— 25
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‘‘(A) annually certify to the Attorney Gen-1
eral that each premises from which the licensee 2
conducts business subject to license under this 3
chapter is in compliance with the regulations 4
prescribed under section 926(d); and 5
‘‘(B) in the case of a licensed dealer, in-6
clude with the certification under subparagraph 7
(A)— 8
‘‘(i) the results of a reconciliation of 9
the resale firearms then in the business in-10
ventory of the licensee against the resale 11
firearms in the business inventory of the li-12
censee at the time of the most recent prior 13
certification (if any) under this paragraph; 14
and 15
‘‘(ii) all dispositions and acquisitions 16
of resale firearms in the year covered by 17
the certification, identifying and reporting 18
any missing firearm. 19
‘‘(2) C
IVIL PENALTY.—The Attorney General 20
shall impose a civil penalty of not more than $5,000 21
on, and may suspend the license issued under this 22
section to, a licensee who fails to comply with para-23
graph (1).’’. 24
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(2) APPLICABILITY.—In the case of a person 1
who, on the date of enactment of this Act, is a li-2
censee referred to in section 923(m) of title 18, 3
United States Code (as added by paragraph (1)), 4
such section 923(m) shall apply to the person on 5
and after the date that is 1 year after the date on 6
which regulations are prescribed under subsection 7
(d) of section 926 of that title (as added by sub-8
section (c)(1)). 9
(c) R
EGULATIONS.— 10
(1) I
N GENERAL.—Section 926 of title 18, 11
United States Code, is amended by adding at the 12
end the following: 13
‘‘(d) S
ECURINGPREMISESFROMTHEFT.—The At-14
torney General shall prescribe such regulations as are nec-15
essary to ensure that any premises at which a licensee re-16
ferred to in section 923(m) conducts business is secure 17
from theft, which shall include requiring— 18
‘‘(1) compliance with the security plan sub-19
mitted by the licensee pursuant to section 20
923(d)(1)(G)(ii)(I), if applicable; 21
‘‘(2) the use of locked metal cabinets and fire-22
proof safes; 23
‘‘(3) security systems, video monitoring, and 24
anti-theft alarms; 25
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‘‘(4) security gates, strong locks, and site hard-1
ening; 2
‘‘(5) concrete bollards and other access controls, 3
if necessary; and 4
‘‘(6) the use of any other security-enhancing 5
features appropriate for the specific circumstances of 6
the licensee.’’. 7
(2) A
PPLICABILITY.—The regulations pre-8
scribed under section 926(d) of title 18, United 9
States Code, as added by paragraph (1), shall not 10
apply to a person who, on the date of the enactment 11
of this Act, is a licensee referred to in section 12
923(m) of that title, until the date that is 1 year 13
after the date on which the regulations are pre-14
scribed. 15
SEC. 6. BUSINESS INVENTORY FIREARMS. 16
(a) R
EQUIREMENTTOTRANSFERFIREARM INPER-17
SONALCOLLECTION TOBUSINESSINVENTORYBEFORE 18
D
ISPOSITION.—Section 923(c) of title 18, United States 19
Code, is amended— 20
(1) by striking the second sentence and insert-21
ing the following: ‘‘Nothing in this chapter shall be 22
construed to prohibit a licensed manufacturer, li-23
censed importer, or licensed dealer from maintaining 24
a personal collection of firearms.’’; 25
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(2) by striking the third sentence; and 1
(3) by adding at the end the following: ‘‘Any 2
firearm disposed of by a licensee shall be from the 3
business inventory of the licensee.’’ 4
(b) L
ICENSEEFIREARMSINVENTORY.—Section 5
923(g) of title 18, United States Code, is amended by add-6
ing at the end the following: 7
‘‘(8)(A) Each quarter, a licensee shall conduct a 8
physical check of the firearms inventory of the business 9
of the licensee licensed under this chapter and report to 10
the Attorney General and appropriate local authorities any 11
firearm that is lost, stolen, or unaccounted for. 12
‘‘(B) The Attorney General shall prescribe regula-13
tions to implement the requirements under subparagraph 14
(A), which shall require, at a minimum, that a licensee 15
record, for each firearm in the inventory of the licensee— 16
‘‘(i) the date of receipt of the firearm; 17
‘‘(ii) the name, address, and license number, if 18
applicable, of the person from whom the firearm was 19
received; 20
‘‘(iii) the name of the manufacturer and, if ap-21
plicable, importer of the firearm; 22
‘‘(iv) the model, serial number, type, and caliber 23
or gauge of the firearm; and 24
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‘‘(v) the date of the sale or other disposition of 1
the firearm. 2
‘‘(C) Nothing in this paragraph shall be construed to 3
prohibit the Attorney General from, at any time, requiring 4
the regular or one-time submission of the inventory 5
records of a licensee to ensure that the licensee is in com-6
pliance with this chapter.’’. 7
(c) R
EPEAL OFLIMITATIONS ONIMPOSITION OFRE-8
QUIREMENTTHATFIREARMSDEALERSCONDUCTPHYS-9
ICALCHECK OFFIREARMSINVENTORY.— 10
(1) F
ISCAL YEAR 2013.—The fifth proviso under 11
the heading ‘‘
SALARIES AND EXPENSES ’’ under the 12
heading ‘‘B
UREAU OFALCOHOL, TOBACCO, FIRE-13
ARMS ANDEXPLOSIVES’’ in title II of division B of 14
the Consolidated and Further Continuing Appropria-15
tions Act, 2013 (18 U.S.C. 923 note; Public Law 16
113–6; 127 Stat. 248) is amended by striking ‘‘and 17
any fiscal year thereafter’’. 18
(2) F
ISCAL YEAR 2012.—The matter under the 19
heading ‘‘
SALARIES AND EXPENSES ’’ under the 20
heading ‘‘B
UREAU OFALCOHOL, TOBACCO, FIRE-21
ARMS ANDEXPLOSIVES’’ in title II of division B of 22
the Consolidated and Further Continuing Appropria-23
tions Act, 2012 (Public Law 112–55; 125 Stat. 609) 24
is amended by striking the seventh proviso. 25
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(3) FISCAL YEAR 2010.—The seventh proviso 1
under the heading ‘‘
SALARIES AND EXPENSES ’’ 2
under the heading ‘‘B
UREAU OF ALCOHOL, TO-3
BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 4
division B of the Consolidated Appropriations Act, 5
2010 (Public Law 111–117; 123 Stat. 3129) is 6
amended by striking ‘‘or any other’’. 7
(4) F
ISCAL YEAR 2009.—The seventh proviso 8
under the heading ‘‘
SALARIES AND EXPENSES ’’ 9
under the heading ‘‘B
UREAU OF ALCOHOL, TO-10
BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 11
division B of the Omnibus Appropriations Act, 2009 12
(Public Law 111–8; 123 Stat. 575) is amended by 13
striking ‘‘or any other’’. 14
(5) F
ISCAL YEAR 2008.—The seventh proviso 15
under the heading ‘‘
SALARIES AND EXPENSES ’’ 16
under the heading ‘‘B
UREAU OF ALCOHOL, TO-17
BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 18
division B of the Consolidated Appropriations Act, 19
2008 (Public Law 110–161; 121 Stat. 1904) is 20
amended by striking ‘‘or any other’’. 21
(6) F
ISCAL YEAR 2006.—The seventh proviso 22
under the heading ‘‘
SALARIES AND EXPENSES ’’ 23
under the heading ‘‘B
UREAU OF ALCOHOL, TO-24
BACCO, FIREARMS AND EXPLOSIVES’’ in title I of 25
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the Science, State, Justice, Commerce, and Related 1
Agencies Appropriations Act, 2006 (Public Law 2
109–108; 119 Stat. 2296) is amended by striking 3
‘‘or any other’’. 4
(7) F
ISCAL YEAR 2005.—The seventh proviso 5
under the heading ‘‘
SALARIES AND EXPENSES ’’ 6
under the heading ‘‘B
UREAU OF ALCOHOL, TO-7
BACCO, FIREARMS ANDEXPLOSIVES’’ in title I of di-8
vision B of the Consolidated Appropriations Act, 9
2005 (Public Law 108–447; 118 Stat. 2860) is 10
amended by striking ‘‘or any other’’. 11
(8) F
ISCAL YEAR 2004.—The seventh proviso 12
under the heading ‘‘
SALARIES AND EXPENSES ’’ 13
under the heading ‘‘B
UREAU OF ALCOHOL, TO-14
BACCO, FIREARMS ANDEXPLOSIVES’’ in title I of di-15
vision B of the Consolidated Appropriations Act, 16
2004 (Public Law 108–199; 118 Stat. 53) is amend-17
ed by striking ‘‘or any other’’. 18
SEC. 7. ELECTRONIC RECORDS. 19
(a) R
ECORDSRETENTION AND SUBMISSION.—Sec-20
tion 923(g) of title 18, United States Code, is amended— 21
(1) in paragraph (1)(A)— 22
(A) in the first sentence, by inserting be-23
fore the period at the end the following: ‘‘, ex-24
cept that, notwithstanding any other provision 25
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of law, on and after the date that is 1 year 1
after the date of enactment of the Federal Fire-2
arm Licensee Act, records prepared by a li-3
censee under this chapter of the sale or other 4
disposition of firearms, including each firearms 5
transaction record, and the corresponding 6
record of receipt of such firearms, shall be re-7
tained at the business premises readily acces-8
sible for inspection under this chapter until the 9
business is discontinued’’; and 10
(B) by striking the second sentence; 11
(2) in paragraph (5)(A), by inserting ‘‘or elec-12
tronically as may be’’ after ‘‘submit on a form’’; and 13
(3) in paragraph (7), by inserting ‘‘, electroni-14
cally,’’ after ‘‘orally’’. 15
(b) R
ECORDSDATABASES.—Section 923(g) of title 16
18, United States Code, as amended by section 6, is 17
amended by adding at the end the following: 18
‘‘(9)(A) Not later than 3 years after the date of en-19
actment of this paragraph, the National Tracing Center 20
of the Bureau of Alcohol, Tobacco, Firearms, and Explo-21
sives shall establish and maintain electronic, searchable 22
databases of all records regarding the importation, pro-23
duction, shipment, receipt, sale, or other disposition of 24
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firearms required to be submitted by licensees to the At-1
torney General under this chapter. 2
‘‘(B) Each licensee under this chapter may provide 3
the National Tracing Center with electronic access, con-4
sistent with the requirements of this paragraph, to all 5
records within the possession of the licensee that are re-6
quired to be kept under this chapter. 7
‘‘(C) The National Tracing Center— 8
‘‘(i) shall have remote access to query, search, 9
or otherwise access the electronic databases de-10
scribed in subparagraph (A); and 11
‘‘(ii) with the permission of a State, or political 12
subdivision of a State, may query, search, or other-13
wise access the databases of the firearms registra-14
tion system or pawnbroker records system of the 15
State or political subdivision. 16
‘‘(D) The National Tracing Center may query, 17
search, or otherwise access the electronic databases de-18
scribed in subparagraph (A) only to obtain information re-19
lated to any Federal, State, local, tribal, or foreign crimi-20
nal investigation. 21
‘‘(E) The electronic databases established under sub-22
paragraph (A)— 23
‘‘(i) shall be electronically searchable by date of 24
disposition, license number, and the information 25
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identified on each firearm or other firearm 1
descriptor, including the manufacturer, importer, 2
model, serial number, type, and caliber or gauge; 3
‘‘(ii) shall not be electronically searchable by 4
the personally identifiable information of any indi-5
vidual, without a warrant authorizing such a search; 6
and 7
‘‘(iii) shall include in search results the entire 8
contents of the relevant records kept by the li-9
censee.’’. 10
(c) V
IDEORECORDINGS OF SALES AND TRANS-11
FERS.—Section 923(g) of title 18, United States Code, as 12
amended by subsection (b), is amended by adding at the 13
end the following: 14
‘‘(10) In accordance with regulations promulgated by 15
the Attorney General, each licensed dealer operating a lo-16
cation at which firearms are sold to a person not licensed 17
under this chapter shall— 18
‘‘(A) maintain video surveillance of all areas 19
within each premises where firearms in the business 20
inventory of the licensee are sold or transferred; 21
‘‘(B) retain records of the surveillance, includ-22
ing any sound recording obtained from the surveil-23
lance, for a period of not less than 90 days; and 24
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‘‘(C) post a sign in a conspicuous place and at 1
each public entrance to the retail location, in block 2
letters not less than 1 inch in height, stating that 3
the premises are under video surveillance.’’. 4
(d) I
NCREASEDPENALTIES FORLICENSEEVIOLA-5
TIONSRELATING TO ACQUISITION AND DISPOSITION 6
R
ECORDS.—Section 924(a)(3) of title 18, United States 7
Code, is amended— 8
(1) by redesignating subparagraphs (A) and 9
(B) as clauses (i) and (ii), respectively, and adjust-10
ing the margins accordingly; 11
(2) by moving the matter following clause (ii) 12
(as so redesignated) 2 ems to the right; 13
(3) in the matter following clause (ii) (as so re-14
designated), by striking ‘‘one year’’ and inserting ‘‘5 15
years’’; 16
(4) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 17
(5) by adding at the end the following: 18
‘‘(B) If the conduct described in clause (i) or (ii) of 19
subparagraph (A) is in relation to an offense under sub-20
section (a)(6) or (d) of section 922, the licensed dealer, 21
licensed importer, licensed manufacturer, or licensed col-22
lector shall be fined under this title, imprisoned not more 23
than 10 years, or both.’’. 24
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(e) ELIMINATION OFLIMITATION ONCENTRALIZING 1
R
ECORDS.—Section 926(a) of title 18, United States 2
Code, is amended, in the matter following paragraph (3)— 3
(1) in the first sentence, by striking ‘‘records 4
required to be maintained under this chapter or any 5
portion of the contents of such records, be recorded 6
at or transferred to a facility owned, managed, or 7
controlled by the United States or any State or any 8
political subdivision thereof, nor that’’; and 9
(2) in the second sentence, by striking ‘‘Sec-10
retary’s’’ and inserting ‘‘Attorney General’s’’. 11
(f) E
LECTRONICRECORDKEEPING ADOPTION AND 12
I
MPLEMENTATION.—Section 926 of title 18, United 13
States Code, as amended by section 5, is amended by add-14
ing at the end the following: 15
‘‘(e) F
ACILITATION OF ELECTRONIC RECORD-16
KEEPING.—The Attorney General— 17
‘‘(1) shall facilitate and incentivize the conver-18
sion to, and adoption of, electronic recordkeeping so-19
lutions by licensees that enable electronic completion 20
and submission to the Attorney General of all 21
records required to be maintained under this chap-22
ter; 23
‘‘(2) shall facilitate— 24
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‘‘(A) digital capture of paper records of li-1
censed dealers; and 2
‘‘(B) the integration and indexing of data 3
onto a platform accessible by law enforcement 4
authorities for purposes of investigating a vio-5
lent crime or crime gun trace; 6
‘‘(3) shall facilitate, with respect to the elec-7
tronic databases established under section 8
923(g)(9)(A)— 9
‘‘(A) remote access to electronic records of 10
licensed dealers by law enforcement authorities 11
for purposes of investigating a violent crime or 12
crime gun trace; and 13
‘‘(B) access by licensed dealers to only 14
their own records; and 15
‘‘(4) may not remotely access or search elec-16
tronic records of licensed dealers without a warrant 17
authorizing such a search.’’. 18
SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS. 19
Section 922(t)(1) of title 18, United States Code, is 20
amended— 21
(1) in subparagraph (C), by striking ‘‘and’’ at 22
the end; 23
(2) in subparagraph (D), by striking the period 24
at the end and inserting ‘‘; and’’; and 25
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(3) by adding at the end the following: 1
‘‘(E) in the case of a transfer conducted pursu-2
ant to subparagraph (B)(ii) or clause (ii) or (iii) of 3
subparagraph (C), the licensee notifies the Attorney 4
General, not later than the close of business on the 5
day on which the firearm is transferred, that the 6
firearm has been transferred to the person.’’. 7
SEC. 9. MULTIPLE FIREARM SALES RECORDS AND RE-8
PORTS. 9
(a) E
XPANDINGREPORTINGREQUIREMENT TO CER-10
TAINLONGGUNS.—Section 923(g)(3)(A) of title 18, 11
United States Code, is amended— 12
(1) in the first sentence, by striking ‘‘pistols, or 13
revolvers, or any combination of pistols and revolv-14
ers’’ and inserting ‘‘pistols, revolvers, semiautomatic 15
rifles or shotguns, or rifles or shotguns capable of 16
accepting a high capacity magazine, or any combina-17
tion of such weapons’’; and 18
(2) by inserting after the first sentence the fol-19
lowing: ‘‘In the preceding sentence, the term ‘high 20
capacity magazine’ means a magazine capable of 21
holding more than 10 rounds of ammunition, and in-22
cludes a magazine that may be readily converted to 23
hold more than 10 rounds of ammunition.’’. 24
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(b) REQUIREMENTTORETAININSTANTCRIMINAL 1
B
ACKGROUND CHECKRECORDS FOR 90 BUSINESS 2
D
AYS.—Section 922(t)(2)(C) of title 18, United States 3
Code, is amended— 4
(1) by striking ‘‘destroy’’ and inserting ‘‘retain 5
for not less than 90 business days’’; 6
(2) by striking ‘‘(other than the identifying 7
number and the date the number was assigned)’’; 8
and 9
(3) by inserting before the period at the end the 10
following: ‘‘solely for purposes related to discovering 11
misuse or avoidance of the national instant criminal 12
background check system or ensuring its proper op-13
eration’’. 14
(c) A
TTORNEYGENERALREPORTS OFMULTIPLE 15
S
ALES BYNON-LICENSEES.—Section 923(g)(3) of title 16
18, United States Code, is amended— 17
(1) by redesignating subparagraph (B) as sub-18
paragraph (C); and 19
(2) by inserting after subparagraph (A) the fol-20
lowing: 21
‘‘(B)(i) The Attorney General shall prepare a report 22
of multiple dispositions of firearms to persons not licensed 23
under this chapter, which shall include the names and 24
identifying information of transferees appearing in the 25
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records retained under section 922(t)(2)(C) on 2 or more 1
occasions in any period of 5 consecutive business days. 2
‘‘(ii) The report described in clause (i) shall be pre-3
pared on a form substantially similar to the form created 4
pursuant to subparagraph (A) and include the names and 5
addresses of the licensees who requested the background 6
checks under subsection (t). 7
‘‘(iii) The Attorney General shall forward the report 8
described in clause (i) to the office designated pursuant 9
to subparagraph (A) and to the departments of State po-10
lice or State law enforcement agencies of the State or local 11
law enforcement agencies of the local jurisdictions in 12
which the sales or other dispositions took place, not later 13
than the close of business on the date of the most recent 14
such sale or other disposition.’’. 15
(d) R
ECORDSRETENTIONTOINVESTIGATECRIME 16
G
UNS.—Section 923(g)(3)(C) of title 18, United States 17
Code, as redesignated by subsection (c)(1) of this section, 18
is amended— 19
(1) in the first sentence— 20
(A) by inserting ‘‘a firearm involved in a 21
crime or’’ after ‘‘Except in the case of forms 22
and contents thereof regarding’’; and 23
(B) by striking ‘‘, and shall destroy each 24
such form and any record of the contents there-25
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of no more than 20 days from the date such 1
form is received’’ and inserting ‘‘and shall re-2
tain each such form and any record of the con-3
tents of the form for not less than 180 days 4
after the date on which the form is received’’; 5
and 6
(2) by striking the second sentence. 7
SEC. 10. SAFETY DEVICES AND WARNINGS TO PUR-8
CHASERS. 9
Section 922(z) of title 18, United States Code, is 10
amended— 11
(1) by inserting ‘‘
ANDWARNINGS TO PUR-12
CHASERS’’ after ‘‘SECUREGUNSTORAGE ORSAFE-13
TYDEVICE’’; 14
(2) by striking ‘‘handgun’’ each place it appears 15
and inserting ‘‘firearm’’; and 16
(3) by adding at the end the following: 17
‘‘(4) W
ARNINGS TO PURCHASERS .— 18
‘‘(A) I
N GENERAL.—A licensed dealer op-19
erating a physical retail location shall post con-20
spicuously within the licensed premises all 21
warnings required to be provided to firearms 22
purchasers under applicable State and local law. 23
‘‘(B) M
ATERIALS.— 24
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‘‘(i) DEVELOPMENT AND DISTRIBU -1
TION BY ATTORNEY GENERAL .—The Attor-2
ney General shall— 3
‘‘(I) develop materials regarding 4
suicide prevention, securing firearms 5
from loss, theft, or access by a minor 6
or prohibited person, and straw pur-7
chasing; and 8
‘‘(II) provide the materials devel-9
oped under subclause (I) to each li-10
censed dealer. 11
‘‘(ii) D
ISSEMINATION BY DEALERS .— 12
A licensed dealer shall disseminate the ma-13
terials described in clause (i) upon transfer 14
of a firearm to a person not licensed under 15
this chapter.’’. 16
SEC. 11. INSPECTIONS. 17
(a) M
ANDATEDANNUALINSPECTIONS OF HIGH- 18
R
ISKLICENSEDDEALERS ANDQUINQUENNIALINSPEC-19
TIONS OF OTHERLICENSED DEALERS.—Section 20
923(g)(1)(B) of title 18, United States Code, is amend-21
ed— 22
(1) in clause (ii), by redesignating subclauses 23
(I) and (II) as items (aa) and (bb), respectively, and 24
adjusting the margins accordingly; 25
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(2) by redesignating clauses (i), (ii), and (iii) as 1
subclauses (I), (II), and (III), respectively, and ad-2
justing the margins accordingly; 3
(3) by inserting ‘‘(i)’’ after ‘‘(B)’’; and 4
(4) by adding at the end the following: 5
‘‘(ii)(I) The Attorney General— 6
‘‘(aa) not less frequently than annually, shall 7
inspect or examine the inventory, records, and busi-8
ness premises of each licensed dealer whom the At-9
torney General determines to be a high-risk dealer, 10
based on considerations that include whether— 11
‘‘(AA) during the preceding 5 years, the 12
dealer reported a lost or stolen firearm; 13
‘‘(BB) during the preceding 10 years, the 14
dealer was issued a report of violation, received 15
a warning letter, or was the subject of a warn-16
ing conference; or 17
‘‘(CC) during the preceding year, multiple 18
firearms were determined to have been used in 19
a crime under Federal, State, or local law with-20
in 3 years after sale by the dealer; and 21
‘‘(bb) may appoint an attorney to ensure that 22
high-risk dealers comply with all applicable firearm 23
sales laws. 24
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‘‘(II) An attorney appointed under subclause (I)(bb) 1
may, with respect to high-risk dealers, use in-store obser-2
vation, monitor records, conduct random and repeated 3
sales integrity tests, and design and offer instructional 4
programs providing best practices sales training to all em-5
ployees involved in firearm sales until the attorney cer-6
tifies to the Attorney General that the high-risk dealer has 7
complied with all applicable firearm sales laws for 3 con-8
secutive years. 9
‘‘(III) Not later than 180 days after the date on 10
which an inspection or examination under subclause (I) 11
reveals a violation of this section or any regulation pre-12
scribed under this chapter, and not later than 180 days 13
after a security inspection conducted under paragraph 14
(6)(B)(i) of this subsection, the Attorney General shall 15
conduct an inspection or examination to determine wheth-16
er the violation identified in the preceding inspection or 17
examination has been cured. 18
‘‘(IV) Not less frequently than once every 5 years, 19
the Attorney General shall inspect or examine the inven-20
tory, records, and business premises of each licensed deal-21
er that the Attorney General has not determined to be 22
a high-risk dealer under subclause (I).’’. 23
(b) E
LIMINATION OFLIMIT ONINSPECTION OFLI-24
CENSEERECORDS.—Section 923(g)(1)(B)(i)(II) of title 25
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18, United States Code, as redesignated by subsection (a), 1
is amended— 2
(1) by striking ‘‘—’’ and all that follows 3
through ‘‘(bb)’’; and 4
(2) by striking ‘‘with respect to records relating 5
to a firearm involved in a criminal investigation that 6
is traced to the licensee’’. 7
(c) M
ANDATEDSECURITYINSPECTION OFDEALERS 8
R
EPORTINGLOST OR STOLENFIREARMS.—Section 9
923(g)(6) of title 18, United States Code, is amended— 10
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 11
(2) by adding at the end the following: 12
‘‘(B)(i) If the Attorney General receives a report 13
under subparagraph (A) from a licensed dealer, the Attor-14
ney General shall conduct an independent inspection of the 15
security of the premises at which the theft occurred, which 16
shall include an inspection of the measures taken to imple-17
ment the security plan submitted by the licensed dealer 18
under subsection (d)(1)(G)(ii). 19
‘‘(ii) On completion of a security inspection under 20
clause (i), the Attorney General shall provide the licensed 21
dealer with— 22
‘‘(I) a notice of any violation by the licensed 23
dealer of any security requirements prescribed under 24
section 926(d); and 25
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‘‘(II) recommendations for improving security 1
of the premises involved.’’. 2
(d) E
LIMINATION OF LIMIT ONINSPECTION OF 3
O
THERPREMISES.—Section 923(j) of title 18, United 4
States Code, is amended by striking the sixth sentence. 5
SEC. 12. AUTHORITY WITH REGARD TO LICENSE ISSUANCE 6
AND RENEWAL. 7
(a) D
ENIALAUTHORITY.—Section 923 of title 18, 8
United States Code, is amended— 9
(1) in subsection (c)— 10
(A) by inserting ‘‘(1)’’ before ‘‘Upon’’; 11
(B) in the first sentence, by inserting ‘‘, 12
subject to paragraph (2),’’ after ‘‘the Attorney 13
General shall’’; and 14
(C) by adding at the end the following: 15
‘‘(2) The Attorney General shall deny an application 16
submitted under subsection (a) or (b) if the Attorney Gen-17
eral determines that— 18
‘‘(A) issuing the license would pose a danger to 19
public safety; or 20
‘‘(B) the applicant— 21
‘‘(i) is not likely to comply with the law; or 22
‘‘(ii) is otherwise not suitable to be issued 23
a license.’’; and 24
(2) in subsection (d)(1)— 25
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(A) in the matter preceding subparagraph 1
(A), by striking ‘‘shall’’ and inserting ‘‘or re-2
newal thereof shall, subject to subsection 3
(c)(2),’’; 4
(B) in subparagraph (C), by striking ‘‘not 5
willfully violated’’ and inserting ‘‘no uncured 6
violations of’’; and 7
(C) in subparagraph (F)— 8
(i) in clause (ii), by striking ‘‘and’’ at 9
the end; and 10
(ii) by adding at the end the fol-11
lowing: 12
‘‘(iv) each employee employed in the 13
business— 14
‘‘(I) will be at least the minimum 15
age at which individuals may possess 16
a firearm in the locality in which the 17
business will be conducted; and 18
‘‘(II) is not prohibited from being 19
transferred a firearm, or transporting, 20
shipping, or receiving firearms or am-21
munition, in interstate or foreign com-22
merce by subsection (d), (g), or (n) 23
(as applicable) of section 922 or by 24
State, local, or Tribal law; and’’. 25
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(b) AUTHORITYTOREVOKE OR SUSPENDLI-1
CENSES.—Section 923 of title 18, United States Code, is 2
amended— 3
(1) in subsection (e)— 4
(A) in the first sentence, by inserting ‘‘or 5
suspend’’ after ‘‘revoke’’; and 6
(B) in the third sentence, by striking ‘‘Sec-7
retary’s’’ and inserting ‘‘Attorney General’s’’; 8
and 9
(2) in subsection (f)— 10
(A) in paragraph (1)— 11
(i) by inserting ‘‘or suspended’’ after 12
‘‘revoked’’ each place it appears; and 13
(ii) by inserting ‘‘or suspension’’ after 14
‘‘revocation’’ each place it appears; 15
(B) in paragraph (2)— 16
(i) by striking ‘‘, or revokes’’ and in-17
serting ‘‘, revokes, or suspends’’; and 18
(ii) by striking ‘‘or revocation’’ and 19
inserting ‘‘, revocation, or suspension’’; 20
and 21
(C) in paragraph (3)— 22
(i) by inserting ‘‘or suspend’’ after 23
‘‘revoke’’ each place it appears; and 24
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(ii) by striking ‘‘or revocation’’ and 1
inserting ‘‘, revocation, or suspension’’. 2
(c) A
UTHORITYTOPROMULGATERULES.—Section 3
926(a) of title 18, United States Code, is amended, in the 4
matter preceding paragraph (1), by striking ‘‘only’’. 5
(d) R
EPEAL OFRIDERSLIMITINGUSE OFFUNDS 6
T
ODENYLICENSESDUE TOLACK OFBUSINESSACTIV-7
ITY.— 8
(1) F
ISCAL YEAR 2013.—The matter under the 9
heading ‘‘
SALARIES AND EXPENSES ’’ under the 10
heading ‘‘B
UREAU OFALCOHOL, TOBACCO, FIRE-11
ARMS ANDEXPLOSIVES’’ in title II of division B of 12
the Consolidated and Further Continuing Appropria-13
tions Act, 2013 (18 U.S.C. 923 note; Public Law 14
113–6; 127 Stat. 247) is amended by striking the 15
sixth proviso. 16
(2) F
ISCAL YEAR 2012.—The matter under the 17
heading ‘‘
SALARIES AND EXPENSES ’’ under the 18
heading ‘‘B
UREAU OFALCOHOL, TOBACCO, FIRE-19
ARMS ANDEXPLOSIVES’’ in title II of division B of 20
the Consolidated and Further Continuing Appropria-21
tions Act, 2012 (Public Law 112–55; 125 Stat. 609) 22
is amended by striking the ninth proviso. 23
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SEC. 13. INCREASED LICENSING FEES. 1
(a) F
EES FORLICENSEDIMPORTERS, MANUFACTUR-2
ERS, ANDDEALERS INFIREARMS ANDIMPORTERS AND 3
M
ANUFACTURERS OF AMMUNITION.—Section 923(a) of 4
title 18, United States Code, is amended— 5
(1) in paragraph (1)— 6
(A) in subparagraph (A), by striking 7
‘‘$1,000’’ and inserting ‘‘$2,000’’; 8
(B) in subparagraph (B), by striking 9
‘‘$50’’ and inserting ‘‘$100’’; and 10
(C) in subparagraph (C), by striking 11
‘‘$10’’ and inserting ‘‘$20’’; 12
(2) in paragraph (2)— 13
(A) in subparagraph (A), by striking 14
‘‘$1,000’’ and inserting ‘‘$2,000’’; and 15
(B) in subparagraph (B), by striking 16
‘‘$50’’ and inserting ‘‘$100’’; and 17
(3) in paragraph (3)— 18
(A) in subparagraph (A), by striking 19
‘‘$1,000’’ and inserting ‘‘$2,000’’; and 20
(B) in subparagraph (B)— 21
(i) by striking ‘‘$200’’ and inserting 22
‘‘$400’’; and 23
(ii) by striking ‘‘$90’’ and inserting 24
‘‘$180’’. 25
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(b) FEES FORLICENSEDCOLLECTORS.—Section 1
923(b) of title 18, United States Code, is amended by 2
striking ‘‘$10’’ and inserting ‘‘$20’’. 3
SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFEC-4
TIVE DATE OF LICENSE REVOCATION. 5
Section 923(f)(2) of title 18, United States Code, is 6
amended, in the second sentence, by striking ‘‘shall upon 7
the request of the holder of the license’’ and inserting 8
‘‘may, upon a showing by the holder of the license of good 9
cause,’’. 10
SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED 11
FOR A CRIME PUNISHABLE BY IMPRISON-12
MENT FOR A TERM EXCEEDING ONE YEAR. 13
(a) I
NGENERAL.—Section 925 of title 18, United 14
States Code, is amended— 15
(1) by striking subsection (b); and 16
(2) by redesignating subsections (c) through (f) 17
as subsections (b) through (e), respectively. 18
(b) C
ONFORMINGAMENDMENTS.— 19
(1) C
HAPTER 44 OF TITLE 18, UNITED STATES 20
CODE.—Chapter 44 of title 18, United States Code, 21
is amended— 22
(A) in section 922— 23
(i) in subsection (d), in the second 24
sentence— 25
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(I) by striking ‘‘licensed im-1
porter, licensed manufacturer, licensed 2
dealer, or licensed collector who pur-3
suant to subsection (b) of section 925 4
is not precluded from dealing in fire-5
arms or ammunition, or to a’’; and 6
(II) by striking ‘‘subsection (c) of 7
section 925’’ and inserting ‘‘section 8
925(b)’’; 9
(ii) in subsection (l), by striking 10
‘‘925(d) of this chapter’’ and inserting 11
‘‘925(c)’’; and 12
(iii) in subsection (r), by striking 13
‘‘925(d)(3) of this chapter’’ and inserting 14
‘‘925(c)(3)’’; and 15
(B) in section 925(f), by striking ‘‘sub-16
section (d)’’ and inserting ‘‘subsection (c)’’. 17
(2) F
OREIGN MILITARY SALES ACT .—Section 18
38(b)(1)(B)(i) of the Foreign Military Sales Act (22 19
U.S.C. 2778(b)(1)(B)(i)) is amended by striking 20
‘‘925(e)’’ and inserting ‘‘925(d)’’. 21
(3) NICS 
IMPROVEMENT AMENDMENTS ACT OF 22
2007.—Section 101(c)(2)(A)(iii) of the NICS Im-23
provement Amendments Act of 2007 (34 U.S.C. 24
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•S 1294 IS
40911(c)(2)(A)(iii)) is amended by striking ‘‘925(c)’’ 1
and inserting ‘‘925(b)’’. 2
(4) A
TOMIC ENERGY ACT OF 1954 .—Section 3
161A(b) of the Atomic Energy Act of 1954 (42 4
U.S.C. 2201a(b)) is amended by striking 5
‘‘925(d)(3)’’ and inserting ‘‘925(c)(3)’’. 6
SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DIS-7
ABILITY RELIEF APPLICATION PENDING. 8
Section 925(b) of title 18, United States Code, as so 9
redesignated by section 15(a) of this Act, is amended by 10
striking the fourth sentence and inserting the following: 11
‘‘This subsection shall not be construed to prohibit the At-12
torney General from, on a showing by a licensee of good 13
cause, permitting the licensee to continue operations while 14
an application for relief from disabilities is pending.’’. 15
SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN 16
SALE OF LONG GUNS TO RESIDENTS OF AN-17
OTHER STATE. 18
Section 922(b)(3) of title 18, United States Code, is 19
amended by striking ‘‘in the absence of evidence to the 20
contrary,’’. 21
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SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER 1
OF FIREARM WITHOUT CONDUCTING A BACK-2
GROUND CHECK. 3
Section 922(t)(5) of title 18, United States Code, is 4
amended by inserting before the period at the end the fol-5
lowing: ‘‘in the case of the first violation and, in the case 6
of a subsequent violation, shall immediately suspend or re-7
voke any license issued to the licensee under section 923 8
and impose on the licensee a civil fine equal to $20,000’’. 9
SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DIS-10
ABILITY OR NOTICE OF LICENSE SUSPEN-11
SION, REVOCATION, OR DENIED RENEWAL. 12
(a) R
ESTRICTIONS.—Section 922 of title 18, United 13
States Code, is amended by adding at the end the fol-14
lowing: 15
‘‘(aa) U
NLAWFULACTSUPONINCURRINGFEDERAL 16
D
ISABILITY ORNOTICE OFLICENSESUSPENSION, REV-17
OCATION, ORDENIEDRENEWAL.— 18
‘‘(1) I
N GENERAL.—It shall be unlawful for a 19
licensed importer, licensed manufacturer, licensed 20
dealer, licensed collector, or licensed facilitator who 21
incurs a disability imposed by Federal laws with re-22
spect to the acquisition, receipt, transfer, shipment, 23
transportation, or possession of firearms or ammuni-24
tion during the term of a license issued under this 25
chapter or while an application to renew such a li-26
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cense is pending, or who has been notified by the At-1
torney General that a license issued to the licensee 2
under this chapter has been suspended or revoked or 3
that an application of the licensee to renew such a 4
license has been denied, to— 5
‘‘(A) transfer a business inventory fire-6
arm— 7
‘‘(i) into the personal collection of the 8
licensee; or 9
‘‘(ii) to any person other than a li-10
censee under this chapter or a Federal, 11
State, or local law enforcement agency; or 12
‘‘(B) receive a business inventory firearm. 13
‘‘(2) W
AIVER.—Upon a showing by a licensee of 14
good cause, the Attorney General may issue a writ-15
ten waiver of paragraph (1) if the licensee authorizes 16
the Attorney General to inspect the records and in-17
ventory of the licensee at any time to ensure that 18
the licensee is in compliance with this chapter.’’. 19
(b) P
ENALTIES.—Section 924(a) of title 18, United 20
States Code, is amended by adding at the end the fol-21
lowing: 22
‘‘(9) Whoever knowingly violates section 922(aa) 23
shall be fined under this title, imprisoned for not more 24
than 1 year, or both.’’. 25
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(c) NOTICEREQUIREMENT.—Section 923(f)(1) of 1
title 18, United States Code, is amended, in the first sen-2
tence, by inserting before the period at the end the fol-3
lowing: ‘‘and setting forth the provisions of Federal law 4
and regulation that prohibit a person not licensed under 5
this chapter from engaging in the business of dealing in 6
firearms and the restrictions set forth in section 922(aa)’’. 7
SEC. 20. REGULATION OF FACILITATORS OF FIREARM 8
TRANSFERS. 9
(a) L
ICENSING.—Section 923(a) of title 18, United 10
States Code, is amended by adding at the end the fol-11
lowing: 12
‘‘(4) If the applicant is a facilitator of firearm 13
sales, purchases, or other transfers, a fee of $1,000 14
per year.’’. 15
(b) C
OMPLETEDFACILITATEDSALES.—Section 923 16
of title 18, United States Code, as amended by section 17
5, is amended by adding at the end the following: 18
‘‘(n) D
UTIES OFFACILITATORS.— 19
‘‘(1) I
N GENERAL.—A licensed facilitator 20
shall— 21
‘‘(A) inform each prospective seller using 22
the commercial marketplace of the licensed 23
facilitator that any offer for firearm sales, pur-24
chases, or other transfers made using the com-25
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mercial marketplace may be completed only 1
with the assistance of a licensed importer, li-2
censed manufacturer, or licensed dealer, who 3
must take possession of the firearm directly 4
from the transferor for the purpose of com-5
plying with section 922(t); 6
‘‘(B) require each prospective firearm sell-7
er using the commercial marketplace of the li-8
censed facilitator to complete each firearm sale, 9
purchase, or other transfer as described in sub-10
paragraph (A); and 11
‘‘(C) maintain records of any sale, pur-12
chase, or other transfer described in subpara-13
graph (A), which shall include— 14
‘‘(i) the date of the offer; 15
‘‘(ii) the name of the offeror; 16
‘‘(iii) the name and the licensee num-17
ber of the licensee that will take possession 18
of the firearm directly from the transferor; 19
and 20
‘‘(iv) the model, serial number, type, 21
and caliber or gauge of the firearm in-22
volved. 23
‘‘(2) A
DVANCE IDENTIFICATION OF LICENSED 24
DEALER.—A licensed facilitator may require a pro-25
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spective seller, as a condition of using the commer-1
cial marketplace of the licensed facilitator, to, before 2
offering a firearm for sale, identify a licensed dealer 3
that will take possession of the firearm and complete 4
the sale. 5
‘‘(3) L
ICENSEE COMPLIANCE .—On taking pos-6
session of a firearm sold, purchased, or otherwise 7
transferred in a commercial marketplace of a li-8
censed facilitator, a licensee shall comply with all re-9
quirements of this chapter as if the licensee were 10
transferring the firearm from the inventory of the li-11
censee to the unlicensed transferee.’’. 12
(c) L
IABILITY.—Section 924(h) of title 18, United 13
States Code, is amended— 14
(1) by inserting ‘‘(1)’’ before ‘‘Whoever’’; and 15
(2) by adding at the end the following: 16
‘‘(2) Whoever, having accepted an offer to transfer 17
ownership of a firearm using a commercial marketplace 18
of a licensed facilitator in order to complete a firearm 19
transaction as described in subsection (n)(1), knowingly 20
transfers the firearm to a person not licensed under this 21
chapter without a licensed importer, licensed manufac-22
turer, or licensed dealer first taking possession of the fire-23
arm for the purpose of complying with section 922(t)— 24
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‘‘(A) except as provided in subparagraph (B), 1
shall be fined under this title, imprisoned for not 2
more than 1 year, or both; or 3
‘‘(B) if transfer of the firearm to, or receipt of 4
the firearm by, the transferee violates subsection (d), 5
(g), or (n) of section 922, or the firearm is used to 6
commit a crime of violence (as defined in section 7
(c)(3) of this section) or drug trafficking crime (as 8
defined in subsection (c)(2) of this section), shall be 9
fined under this title, imprisoned for not more than 10
10 years, or both.’’. 11
(d) C
ONFORMING AMENDMENTS.—Chapter 44 of 12
title 18, United States Code, is amended— 13
(1) in section 922— 14
(A) in subsection (a)— 15
(i) in paragraph (1)— 16
(I) in subparagraph (A), by strik-17
ing ‘‘or’’ at the end; 18
(II) in subparagraph (B), by add-19
ing ‘‘or’’ at the end; and 20
(III) by adding at the end the 21
following: 22
‘‘(C) except a licensed facilitator, to engage 23
in the business of hosting a commercial market-24
place in which offers for firearm sales, pur-25
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chases, or other transfers are allowed to be 1
made;’’; and 2
(ii) in paragraph (6)— 3
(I) by striking ‘‘or licensed col-4
lector’’ and inserting ‘‘licensed col-5
lector, or licensed facilitator’’; and 6
(II) by striking ‘‘or collector’’ 7
and inserting ‘‘collector, or 8
facilitator’’; and 9
(B) in subsection (m), by striking ‘‘or li-10
censed collector’’ and inserting ‘‘licensed col-11
lector, or licensed facilitator’’; 12
(2) in section 923— 13
(A) in subsection (c)(1), as so designated 14
by section 12 of this Act, in the first sentence, 15
by inserting ‘‘or facilitate firearm sales, pur-16
chases, or other transfers’’ before ‘‘during the 17
period stated in the license’’; 18
(B) in subsection (g)(1)(A)— 19
(i) in the matter preceding clause 20
(i)— 21
(I) in the first sentence, by strik-22
ing ‘‘and licensed dealer’’ and insert-23
ing ‘‘licensed dealer, and licensed 24
facilitator’’; and 25
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(II) in the last sentence, by in-1
serting ‘‘licensed facilitator,’’ before 2
‘‘or any licensed importer’’; 3
(ii) in clause (i), by striking ‘‘or li-4
censed collector’’ and inserting ‘‘, licensed 5
collector, or licensed facilitator’’; and 6
(iii) in clause (ii), by striking ‘‘or li-7
censed collector’’ and inserting ‘‘, licensed 8
collector, or licensed facilitator’’; and 9
(C) in subsection (j), in the first sentence, 10
by striking ‘‘or licensed dealer’’ and inserting 11
‘‘licensed dealer, or licensed facilitator’’; and 12
(3) in section 924(a)(3), as amended by section 13
7— 14
(A) in subparagraph (A), in the matter 15
preceding clause (i), by striking ‘‘or licensed 16
collector’’ and inserting ‘‘licensed collector, or 17
licensed facilitator’’; and 18
(B) in subparagraph (B), by striking ‘‘or 19
licensed collector’’ and inserting ‘‘licensed col-20
lector, or licensed facilitator’’. 21
SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS. 22
(a) R
EQUIREMENTS.— 23
(1) B
ACKGROUND CHECKS REQUIRED BEFORE 24
ISSUANCE OR RENEWAL OF DEALERS LICENSE .— 25
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Section 923(c)(1) of title 18, United States Code, as 1
so designated by section 12 of this Act, is amended 2
by inserting after the first sentence the following: 3
‘‘Notwithstanding the preceding sentence, the Attor-4
ney General may not issue or renew a license unless 5
the Attorney General has contacted the national in-6
stant criminal background check system established 7
under section 103 of the Brady Handgun Violence 8
Prevention Act (34 U.S.C. 40901) to determine 9
whether it would be unlawful for the applicant, or 10
any employee of the applicant identified by the ap-11
plicant on the application as trusted with the posses-12
sion or receipt of any firearm, to be transferred or 13
receive a firearm, and the system has notified the 14
Attorney General that the information available to 15
the system does not demonstrate that the transfer to 16
or receipt of a firearm by the applicant or any such 17
employee would violate subsection (d), (g), or (n) (as 18
applicable) of section 922 or State, local, or Tribal 19
law where the business premises of the applicant 20
subject to the license is located.’’. 21
(2) B
ACKGROUND CHECK REQUIRED BEFORE 22
FIREARM POSSESSION BY DEALER EMPLOYEE .—Sec-23
tion 923(g) of title 18, United States Code, as 24
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amended by section 7 of this Act, is amended by 1
adding at the end the following: 2
‘‘(11) A licensed dealer may not allow an employee 3
to possess a firearm at a premises from which the licensed 4
dealer conducts business subject to license under this 5
chapter, unless— 6
‘‘(A) the employee is at least the minimum age 7
required by State and local law to possess or receive 8
a firearm; 9
‘‘(B) the licensed dealer has contacted the na-10
tional instant criminal background check system es-11
tablished under section 103 of the Brady Handgun 12
Violence Prevention Act (34 U.S.C. 40901) to deter-13
mine whether transfer of a firearm to, or receipt of 14
a firearm by, the individual would be unlawful; and 15
‘‘(C) the system has notified the licensee that 16
the information available to the system does not 17
demonstrate that the transfer of a firearm to, or re-18
ceipt of a firearm by, the individual would violate 19
subsection (d), (g), or (n) (as applicable) of section 20
922 or State, local, or Tribal law.’’. 21
(b) A
UTHORITY OFNICS SYSTEMTORESPOND TO 22
L
ICENSEDDEALERREQUEST FOR CRIMINALBACK-23
GROUNDCHECK OFEMPLOYEE ORAPPLICANT FOREM-24
PLOYMENT.—Section 103(b)(2) of the Brady Handgun 25
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Violence Prevention Act (34 U.S.C. 40901(b)(2)) is 1
amended— 2
(1) in the heading, by striking ‘‘V
OLUNTARY’’ 3
and inserting ‘‘C
OMPULSORY’’; and 4
(2) in subparagraph (A), by striking ‘‘volun-5
tarily’’. 6
(c) A
UTHORITY OFNICS SYSTEMTOSEARCHNA-7
TIONALDATAEXCHANGE.—Section 103(e)(1) of the 8
Brady Handgun Violence Prevention Act (34 U.S.C. 9
40901(e)(1)) is amended by adding at the end the fol-10
lowing: 11
‘‘(L) S
EARCH OF NATIONAL DATA EX -12
CHANGE DATABASE .—The system established 13
under this section shall include a search of the 14
database of the National Data Exchange when 15
conducting a background check under this sec-16
tion.’’. 17
SEC. 22. LIABILITY STANDARDS. 18
(a) L
IABILITY INLICENSING.—Section 923 of title 19
18, United States Code, is amended— 20
(1) in subsection (d)(1)(D), by striking ‘‘will-21
fully’’ and inserting ‘‘knowingly’’; and 22
(2) in subsection (e), by striking ‘‘willfully’’ 23
each place it appears and inserting ‘‘knowingly’’. 24
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(b) LIABILITY INPENALTIES.—Section 924 of title 1
18, United States Code, is amended— 2
(1) in subsection (a)(1)(D), by striking ‘‘will-3
fully’’ and inserting ‘‘knowingly’’; and 4
(2) in subsection (d)(1), by striking ‘‘willful’’ 5
and inserting ‘‘knowing’’. 6
SEC. 23. CIVIL ENFORCEMENT. 7
(a) F
INES FORENGAGING IN THEBUSINESSWITH-8
OUT ALICENSE.—Section 924(n) of title 18, United 9
States Code, is amended— 10
(1) by inserting ‘‘(1)’’ after ‘‘(n)’’; and 11
(2) by adding at the end the following: 12
‘‘(2) If the Attorney General finds that a person has 13
engaged in conduct that constitutes a violation of section 14
922(a)(1)(A), the Attorney General shall— 15
‘‘(A) transmit to the person a written notice 16
specifying the violation, which shall include a copy of 17
the provision of law violated; and 18
‘‘(B) impose on the person a civil penalty in an 19
amount that is not less than $2,500 and not more 20
than $20,000.’’. 21
(b) T
IEREDPENALTIES FORREPEATEDVIOLATIONS 22
OFREGULATIONS BYLICENSEDDEALERS.—Section 924 23
of title 18, United States Code, is amended by adding at 24
the end the following: 25
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‘‘(q) PENALTIESRELATING TOVIOLATIONS OFREG-1
ULATIONS BYLICENSEDDEALERS.— 2
‘‘(1) I
N GENERAL.—If the Attorney General 3
finds a licensed dealer to be in violation of a regula-4
tion prescribed under section 926, the Attorney Gen-5
eral shall— 6
‘‘(A) if the violation is not a result of gross 7
negligence by the licensed dealer— 8
‘‘(i) in the case of the first such viola-9
tion by the licensed dealer, if not preceded 10
by a violation to which subparagraph (B) 11
applies, transmit to the licensed dealer a 12
written notice specifying the violation, 13
which shall include a copy of the regulation 14
violated; 15
‘‘(ii) in the case of the second such 16
violation by the licensed dealer, if not pre-17
ceded by a violation to which subparagraph 18
(B) applies, impose a civil penalty in an 19
amount that is not less than $2,500 and 20
not more than $20,000; 21
‘‘(iii) in the case of the third such vio-22
lation by the licensed dealer, if not pre-23
ceded by a violation to which subparagraph 24
(B) applies, suspend the license to deal in 25
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firearms issued to the licensed dealer 1
under this chapter until the violation 2
ceases; 3
‘‘(iv) in the case of the fourth such 4
violation by the licensed dealer, whether or 5
not preceded by a violation to which sub-6
paragraph (B) applies, revoke the license; 7
or 8
‘‘(v) in the case of any such violation 9
by the licensed dealer, if preceded by a vio-10
lation to which subparagraph (B) applies, 11
apply the penalty authorized under this 12
subsection that is 1 level greater in sever-13
ity than the level of severity of the penalty 14
most recently applied to the licensed dealer 15
under this subsection; or 16
‘‘(B) if the violation is a result of gross 17
negligence by the licensed dealer— 18
‘‘(i) in the case of the first such viola-19
tion by the licensed dealer, impose a civil 20
penalty in an amount that is not less than 21
$2,500 and not more than $20,000; 22
‘‘(ii) in the case of the second such 23
violation by the licensed dealer— 24
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‘‘(I) impose a civil penalty in an 1
amount equal to $20,000; and 2
‘‘(II) suspend the license to deal 3
in firearms issued to the licensed deal-4
er under this chapter until the viola-5
tion ceases; or 6
‘‘(iii) in the case of the third such vio-7
lation by the licensed dealer, revoke the li-8
cense to deal in firearms issued to the li-9
censed dealer under this chapter. 10
‘‘(2) S
USPENSION OF LICENSE .—In the case of 11
any violation described in paragraph (1), if the At-12
torney General finds that the nature of the violation 13
indicates that the continued operation of a firearms 14
business by the licensed dealer presents an imminent 15
risk to public safety, the Attorney General shall, not-16
withstanding paragraph (1), immediately suspend 17
the license to deal in firearms issued to the licensed 18
dealer under this chapter and secure the firearms in-19
ventory of the licensed dealer, until the violation 20
ceases, unless the appropriate penalty under para-21
graph (1) is revocation of the license, in which case 22
the Attorney General shall immediately revoke the li-23
cense and secure the firearms inventory of the li-24
censed dealer.’’. 25
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SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF 1
CRIMINAL PROCEEDINGS TERMINATED. 2
Section 923(f) of title 18, United States Code, is 3
amended by striking paragraph (4). 4
SEC. 25. REPEAL OF CERTAIN LIMITATIONS. 5
(a) L
IMITATIONSRELATED TOUSE OFFIREARMS 6
T
RACEDATA.— 7
(1) F
ISCAL YEAR 2012.—The matter under the 8
heading ‘‘
SALARIES AND EXPENSES ’’ under the 9
heading ‘‘B
UREAU OFALCOHOL, TOBACCO, FIRE-10
ARMS ANDEXPLOSIVES’’ in title II of division B of 11
the Consolidated and Further Continuing Appropria-12
tions Act, 2012 (18 U.S.C. 923 note; Public Law 13
112–55; 125 Stat. 609) is amended by striking the 14
sixth proviso. 15
(2) F
ISCAL YEAR 2010.—The sixth proviso 16
under the heading ‘‘
SALARIES AND EXPENSES ’’ 17
under the heading ‘‘B
UREAU OF ALCOHOL, TO-18
BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 19
division B of the Consolidated Appropriations Act, 20
2010 (Public Law 111–117; 123 Stat. 3128) is 21
amended by striking ‘‘beginning in fiscal year 2010 22
and thereafter’’ and inserting ‘‘in fiscal year 2010’’. 23
(3) F
ISCAL YEAR 2009.—The sixth proviso 24
under the heading ‘‘
SALARIES AND EXPENSES ’’ 25
under the heading ‘‘B
UREAU OF ALCOHOL, TO-26
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BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 1
division B of the Omnibus Appropriations Act, 2009 2
(Public Law 111–8; 123 Stat. 575) is amended by 3
striking ‘‘beginning in fiscal year 2009 and there-4
after’’ and inserting ‘‘in fiscal year 2009’’. 5
(4) F
ISCAL YEAR 2008.—The sixth proviso 6
under the heading ‘‘
SALARIES AND EXPENSES ’’ 7
under the heading ‘‘B
UREAU OF ALCOHOL, TO-8
BACCO, FIREARMS ANDEXPLOSIVES’’ in title II of 9
division B of the Consolidated Appropriations Act, 10
2008 (Public Law 110–161; 121 Stat. 1903) is 11
amended by striking ‘‘beginning in fiscal year 2008 12
and thereafter’’ and inserting ‘‘in fiscal year 2008’’. 13
(5) F
ISCAL YEAR 2006.—The sixth proviso 14
under the heading ‘‘
SALARIES AND EXPENSES ’’ 15
under the heading ‘‘B
UREAU OF ALCOHOL, TO-16
BACCO, FIREARMS AND EXPLOSIVES’’ in title I of 17
the Science, State, Justice, Commerce, and Related 18
Agencies Appropriations Act, 2006 (Public Law 19
109–108; 119 Stat. 2295) is amended by striking 20
‘‘with respect to any fiscal year’’. 21
(6) F
ISCAL YEAR 2005.—The sixth proviso 22
under the heading ‘‘
SALARIES AND EXPENSES ’’ 23
under the heading ‘‘B
UREAU OF ALCOHOL, TO-24
BACCO, FIREARMS ANDEXPLOSIVES’’ in title I of di-25
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vision B of the Consolidated Appropriations Act, 1
2005 (Public Law 108–447; 118 Stat. 2859) is 2
amended by striking ‘‘with respect to any fiscal 3
year’’. 4
(7) F
ISCAL YEAR 2023.—Section 644 of division 5
J of the Consolidated Appropriations Resolution, 6
2003 (5 U.S.C. 552 note; Public Law 108–7; 117 7
Stat. 473) is amended by striking ‘‘or any other Act 8
with respect to any fiscal year’’. 9
(b) L
IMITATIONSRELATING TOCONSOLIDATING AND 10
C
ENTRALIZINGRECORDS.—The first proviso under the 11
heading ‘‘
SALARIES AND EXPENSES ’’ under the heading 12
‘‘B
UREAU OFALCOHOL, TOBACCO, FIREARMS ANDEX-13
PLOSIVES’’ in title II of division B of the Consolidated and 14
Further Continuing Appropriations Act, 2012 (18 U.S.C. 15
923 note; Public Law 112–55; 125 Stat. 609) is amended 16
by striking ‘‘or hereafter’’. 17
(c) R
EQUIREMENTTODESTROYINSTANTCRIMINAL 18
B
ACKGROUND CHECKRECORDSWITHIN24 HOURS.— 19
Section 511 of division B of the Consolidated and Further 20
Continuing Appropriations Act, 2012 (34 U.S.C. 40901 21
note; Public Law 112–55; 125 Stat. 632) is amended— 22
(1) by striking ‘‘—’’ and all that follows 23
through ‘‘(1)’’; and 24
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(2) by striking the semicolon and all that fol-1
lows and inserting a period. 2
SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OP-3
ERATION INVESTIGATORS FOR BUREAU OF 4
ALCOHOL, TOBACCO, FIREARMS, AND EXPLO-5
SIVES. 6
The Attorney General may hire 650 industry oper-7
ation investigators for the Bureau of Alcohol, Tobacco, 8
Firearms, and Explosives, to be distributed among the 9
various field divisions to match the number and distribu-10
tion of persons licensed under chapter 44 of title 18, 11
United States Code, in addition to any personnel needed 12
to carry out this Act and the amendments made by this 13
Act and any industry operation investigators authorized 14
by other law. 15
SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT. 16
Not later than 2 years after the date of enactment 17
of this Act, the Attorney General shall submit to Congress 18
and publish on the website of the Department of Justice 19
a written report on the implementation of this Act and 20
the amendments made by this Act, including any steps 21
needed to complete the implementation, which shall iden-22
tify any additional resources that are required to— 23
(1) conduct regular inspections under chapter 24
44 of title 18, United States Code; and 25
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(2) ensure that this Act and the amendments 1
made by this Act are enforced against noncompliant 2
federally licensed firearms dealers in a timely man-3
ner. 4
SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT 5
AND ANALYSIS. 6
(a) I
NGENERAL.—Not later than 2 years after the 7
date of enactment of this Act, and annually thereafter, 8
the Attorney General shall submit to Congress and publish 9
on the website of the Department of Justice a report that 10
contains the information described in subsection (b) with 11
respect to— 12
(1) the preceding 2-year period, in the case of 13
the first report; or 14
(2) the preceding year, in the case of each sub-15
sequent report. 16
(b) C
ONTENTS.—Each report under subsection (a) 17
shall state, with respect to the applicable reporting pe-18
riod— 19
(1) the number of inspections or examinations 20
conducted of Type 01, Type 02, and Type 07 Fed-21
eral firearm licensees (dealers, pawnbrokers, and 22
manufacturers, respectively) by each field division of 23
the Bureau of Alcohol, Tobacco, Firearms, and Ex-24
plosives, including by the number of inspections or 25
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examinations of high-risk dealers (as that term is 1
used in clause (ii) of section 923(g)(1)(B) of title 2
18, United States Code, as added by section 11 of 3
this Act) and non-high-risk dealers; 4
(2) the number of security inspections under 5
subparagraph (B) of section 923(g)(6) of title 18, 6
United States Code, as added by section 11 of this 7
Act, prompted by dealer reports of lost or stolen 8
firearms under subparagraph (A) of such section 9
923(g)(6), as so designated by section 11 of this 10
Act, and the number of follow-up security inspec-11
tions conducted during the 6-month period following 12
a security inspection revealing a violation; 13
(3) the average amount of time spent on— 14
(A) inspections or examinations of high- 15
risk dealers (as described in paragraph (1)); 16
(B) inspections or examinations of non- 17
high-risk dealers (as described in paragraph 18
(1)); 19
(C) security inspections (as described in 20
paragraph (2)); and 21
(D) follow-up security inspections (as de-22
scribed in paragraph (2)); and 23
(4) an analysis of the most frequently cited vio-24
lations and corrective actions or penalties imposed in 25
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each inspection or examination described in para-1
graph (1) or security inspection described in para-2
graph (2), including— 3
(A) the number of licenses recommended 4
to be suspended or revoked; 5
(B) the number of licensees sent notices of 6
suspension or revocation; 7
(C) the number of hearings requested by 8
licensees on receipt of a notice of suspension or 9
revocation; 10
(D) the number of suspension or revoca-11
tion hearings initiated during a prior 12-month 12
period that remain ongoing during the 12- 13
month period covered by the report; and 14
(E) the decision ultimately rendered in 15
each such matter by the Director of the Bureau 16
of Alcohol, Tobacco, Firearms, and Explosives. 17
SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULA-18
TIONS. 19
Not later than 2 years after the date of enactment 20
of this Act, the Attorney General shall prescribe all regula-21
tions required to carry out this Act and the amendments 22
made by this Act. 23
Æ 
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