Targeted Gun Dealer Enforcement Act of 1999

Summary: Targeted Gun Dealer Enforcement Act of 1999 - Amends the Brady Handgun Violence Prevention Act to prohibit, and set penalties for, making certain false or fictitious statements with respect to the identity of the person purchasing or attempting to purchase a firearm or ammunition. 
Prohibits a licensed dealer from transferring a firearm without notifying the transferee whether applicable State law requires persons to be licensed to carry concealed firearms in the State or prohibits the carrying of concealed firearms in the State. 
Rewrites Brady Act provisions to allow the Secretary of the Treasury to suspend or revoke a license and to assess and collect a civil penalty of up to $10,000 per violation, subject to specified requirements and procedures. 
Directs the Secretary to designate a licensed dealer as a "high-volume crime gun dealer": (1) upon determining that the dealer sold, delivered, or otherwise transferred to one or more unlicensed persons at least 25 firearms that, during the preceding calendar year, were used during the commission or attempted commission of a criminal offense under, or were possessed in violation of, Federal, State, or local law; or (2) immediately upon the expiration date of a suspension of that dealer's license for a willful violation that involved one or more firearms that were subsequently used during the commission or attempted commission of a criminal offense under Federal, State, or local law. 
Sets forth provisions regarding: (1) the effective period of such designation; (2) requirements for designation notification by the Secretary to the appropriate U.S. attorney's office, appropriate State and local law enforcement agencies, and State and local agencies responsible for issuing business licenses in the jurisdiction; (3) dealer reporting and record keeping requirements regarding the transfer of a handgun; (4) inspection of such dealer at any time without a showing of reasonable cause or a warrant for purposes of determining compliance with requirements of this Act; (5) handgun transfer record keeping requirements for local police departments; (6) time requirements for license renewal decisions; and (7) suspension of the license of a high-volume crime gun dealer for violations.  Sets penalties for failure to comply with requirements of this Act. 
(Sec. 3) Amends the Brady Act to authorize a successor licensee to retain the records of a discontinued firearms or ammunition business or submit them to the Secretary. 
Authorizes the Secretary to receive and centralize any information or records submitted and to maintain such information or records in whatever manner will enable their most efficient use in law enforcement investigations.  Directs the Secretary to retain a record of each firearms trace conducted by the Secretary unless the Secretary determines that there is a valid law enforcement reason not to retain the record. 
Requires a licensed importer, manufacturer, and dealer to submit to the Secretary a monthly report of each firearm received from an unlicensed person, excluding any identifying information relating to the transferor or any subsequent purchaser. 
(Sec. 4) Prohibits, and sets penalties for, knowingly transferring a firearm having reasonable cause to believe that it will be used to commit a crime of violence or drug trafficking crime. 
Increases penalties for trafficking in firearms with obliterated serial numbers. 
(Sec. 5) Directs the United States Sentencing Commission to amend the Federal sentencing guidelines to reflect the amendments made by this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Targeted Gun Dealer Enforcement Act 
of 1999''.

SEC. 2. REGULATION OF LICENSED DEALERS.

    (a) Prohibition on Straw Purchases.--
            (1) In general.--Section 922(a)(6) of title 18, United 
        States Code, is amended by inserting ``, or with respect to the 
        identity of the person in fact purchasing or attempting to 
        purchase such firearm or ammunition,'' before ``under the''.
            (2) Penalties.--Section 924(a)(3) of title 18, United 
        States Code, is amended by adding at the end the following: 
        ``Notwithstanding the preceding sentence, a violation in 
        relation to section 922(a)(6) or 922(d) by a licensed dealer, 
        licensed importer, licensed manufacturer, or licensed collector 
        shall be subject to the penalties under paragraph (2) of this 
        subsection.''.
    (b) Notification of State Law Regarding Carrying Concealed 
Firearms.--Section 922 of title 18, United States Code, is amended by 
inserting after subsection (y) the following:
    ``(z) Notification of State Requirements.--It shall be unlawful for 
a licensed dealer to transfer a firearm to any person, unless the 
dealer notifies that person whether applicable State law requires 
persons to be licensed to carry concealed firearms in the State, or 
prohibits the carrying of concealed firearms in the State.''.
    (c) Revocation or Suspension of License; Civil Penalties.--Section 
923 of title 18, United States Code, is amended by striking subsections 
(e) and (f) and inserting the following:
    ``(e) Revocation or Suspension of License; Civil Penalties.--
            ``(1) In general.--The Secretary may, after notice and 
        opportunity for hearing--
                    ``(A) suspend or revoke any license issued under 
                this section, if the holder of such license--
                            ``(i) willfully violates any provision of 
                        this chapter or any rule or regulation 
                        prescribed by the Secretary under this chapter; 
                        or
                            ``(ii) fails to have secure gun storage or 
                        safety devices available at any place in which 
                        firearms are sold under the license to persons 
                        who are not licensees (except that in any case 
                        in which a secure gun storage or safety device 
                        is temporarily unavailable because of theft, 
                        casualty loss, consumer sales, backorders from 
                        a manufacturer, or any other similar reason 
                        beyond the control of the licensee, the 
                        licensed dealer shall not be considered to be 
                        in violation of the requirement to make 
                        available such a device);
                    ``(B) suspend or revoke the license issued under 
                this section to a dealer who willfully transfers armor 
                piercing ammunition; and
                    ``(C) assess and collect a civil penalty of not 
                more than $10,000 per violation against any holder of a 
                license, if the Secretary is authorized to suspend or 
                revoke the license of that holder under subparagraph 
                (A) or (B).
            ``(2) Liability.--The Secretary may at any time compromise, 
        mitigate, or remit the liability with respect to any willful 
        violation of this subsection or any rule or regulation 
        prescribed by the Secretary under this subsection.
            ``(3) Review.--An action of the Secretary under this 
        subsection may be reviewed only as provided in subsection (f).
            ``(4) Notification requirement.--Not less than once every 6 
        months, the Secretary shall notify each licensed manufacturer 
        and each licensed dealer of the name, address, and license 
        number of each dealer whose license was suspended or revoked 
        under this section during the preceding 6-month period.
    ``(f) Rights of Applicants and Licensees.--
            ``(1) In general.--If the Secretary denies an application 
        for, or revokes or suspends a license, or assesses a civil 
penalty under this section, the Secretary shall provide written notice 
of such denial, revocation, suspension, or assessment to the affected 
party, stating specifically the grounds upon which the application was 
denied, the license was suspended or revoked, or the civil penalty was 
assessed. Any notice of a revocation or suspension of a license under 
this paragraph shall be given to the holder of such license before the 
effective date of the revocation or suspension, as applicable.
            ``(2) Appeal process.--
                    ``(A) Hearing.--If the Secretary denies an 
                application for, or revokes or suspends a license, or 
                assesses a civil penalty under this section, the 
                Secretary shall, upon request of the aggrieved party, 
                promptly hold a hearing to review the denial, 
                revocation, suspension, or assessment. A hearing under 
                this subparagraph shall be held at a location 
                convenient to the aggrieved party.
                    ``(B) Notice of decision; appeal.--If, after a 
                hearing held under subparagraph (A), the Secretary 
                decides not to reverse the decision of the Secretary to 
                deny the application, revoke or suspend the license, or 
                assess the civil penalty, as applicable--
                            ``(i) the Secretary shall provide notice of 
                        the decision of the Secretary to the aggrieved 
                        party;
                            ``(ii) during the 60-day period beginning 
                        on the date on which the aggrieved party 
                        receives a notice under clause (i), the 
                        aggrieved party may file a petition with the 
                        district court of the United States for the 
                        judicial district in which the aggrieved party 
                        resides or has a principal place of business 
                        for a de novo judicial review of such denial, 
                        revocation, suspension, or assessment;
                            ``(iii) in any judicial proceeding pursuant 
                        to a petition under clause (ii)--
                                    ``(I) the court may consider any 
                                evidence submitted by the parties to 
                                the proceeding, regardless of whether 
                                or not such evidence was considered at 
                                the hearing held under subparagraph 
                                (A); and
                                    ``(II) if the court decides that 
                                the Secretary was not authorized to 
                                make such denial, revocation, 
                                suspension, or assessment, the court 
                                shall order the Secretary to take such 
                                actions as may be necessary to comply 
                                with the judgment of the court.
            ``(3) Stay pending appeal.--If the Secretary suspends or 
        revokes a license under this section, upon the request of the 
        holder of the license, the Secretary shall stay the effective 
        date of the revocation, suspension, or assessment.''.
    (d) Effect of Conviction.--Section 925(b) of title 18, United 
States Code, is amended by striking ``until any conviction pursuant to 
the indictment becomes final'' and inserting ``until the date of any 
conviction pursuant to the indictment''.
    (e) Regulation of High-Volume Crime Gun Dealers.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
    ``(8) High-volume crime gun dealers.--
            ``(A) Definition.--In this paragraph, the term `high-volume 
        crime gun dealer' means any licensed dealer with respect to 
        which a designation under subparagraph (B)(i) is in effect, as 
        provided in subparagraph (B)(ii).
            ``(B) Designation of high-volume crime gun dealers.--
                    ``(i) In general.--The Secretary shall designate a 
                licensed dealer as a high-volume crime gun dealer--
                            ``(I) as soon as practicable, if the 
                        Secretary determines that the licensed dealer 
                        sold, delivered, or otherwise transferred to 1 
                        or more persons not licensed under this chapter 
                        not less than 25 firearms that, during the 
                        preceding calendar year, were used during the 
                        commission or attempted commission of a 
                        criminal offense under Federal, State, or local 
                        law, or were possessed in violation of Federal, 
                        State, or local law; or
                            ``(II) immediately upon the expiration date 
                        of a suspension of the license of that dealer 
                        for a willful violation of this chapter, if 
                        such violation involved 1 or more firearms that 
                        were subsequently used during the commission or 
                        attempted commission of a criminal offense 
                        under Federal, State, or local law.
                    ``(ii) Effective period of designation.--A 
                designation under clause (i) shall remain in effect 
                during the period beginning on the date on which the 
                designation is made and ending on the later of--
                            ``(I) the expiration of the 18-month period 
                        beginning on that date; or
                            ``(II) the date on which the license issued 
                        to that dealer under this section expires.
            ``(C) Notification requirement.--Upon the designation of a 
        licensed dealer as a high-volume crime gun dealer under 
        subparagraph (B), the Secretary shall notify the appropriate 
        United States attorney's office, the appropriate State and 
        local law enforcement agencies (including the district 
        attorney's offices and the police or sheriff's departments), 
        and each State and local agency responsible for the issuance of 
        business licenses in the jurisdiction in which the high-volume 
        crime gun dealer is located of such designation.
            ``(D) Reporting and recordkeeping requirements.--
        Notwithstanding any other provision of this paragraph--
                    ``(i) not later than 10 days after the date on 
                which a handgun is sold, delivered, or otherwise 
                transferred by a high-volume crime gun dealer to a 
                person not licensed under this chapter, the high-volume 
                crime gun dealer shall submit to the Secretary and to 
                the department of State police or State law enforcement 
                agency of the State or local jurisdiction in which the 
                sale, delivery, or transfer took place, on a form 
                prescribed by the Secretary, a report of the sale, 
                delivery, or transfer, which report shall include--
                            ``(I) the manufacturer or importer of the 
                        handgun;
                            ``(II) the model, type, caliber, gauge, and 
                        serial number of the handgun; and
                            ``(III) the name, address, date of birth, 
                        and height and weight of the purchaser or 
                        transferee, as applicable;
                    ``(ii) each high-volume crime gun dealer shall 
                submit to the Secretary, on a form prescribed by the 
                Secretary, a monthly report of each firearm received 
                and each firearm disposed of by the dealer during that 
                month, which report shall include only the name of the 
                manufacturer or importer and the model, type, caliber, 
                gauge, serial number, date of receipt, and date of 
                disposition of each such firearm, except that the 
                initial report submitted by a dealer under this clause 
                shall include such information with respect to the 
                entire inventory of the high-volume crime gun dealer; 
                and
                    ``(iii) a high-volume crime gun dealer may not 
                destroy any record required to be maintained under 
                paragraph (1)(A).
            ``(E) Inspection.--Notwithstanding paragraph (1), the 
        Secretary may inspect or examine the inventory and records of a 
        high-volume crime gun dealer at any time without a showing of 
        reasonable cause or a warrant for purposes of determining 
        compliance with the requirements of this chapter.
            ``(F) Recordkeeping by local police departments.--
        Notwithstanding paragraph (3)(B), a State or local law 
        enforcement agency that receives a report under subparagraph 
        (D)(i) may retain a copy of that record for not more than 5 
        years.
            ``(G) License renewal.--Notwithstanding subsection (d)(2), 
        the Secretary shall approve or deny an application for a 
        license submitted by a high-volume crime gun dealer before the 
        expiration of the 120-day period beginning on the date on which 
        the application is received.
            ``(H) Effect of failure to comply.--
                    ``(i) In general.--Notwithstanding subsection (e), 
                the Secretary shall, after notice and an opportunity 
                for a hearing--
                            ``(I) suspend for not less than 90 days any 
                        license issued under this section to a high-
                        volume crime gun dealer who willfully violates 
                        any provision of this section (including any 
                        requirement of this paragraph);
                            ``(II) revoke any license issued under this 
                        section to a high-volume crime gun dealer who 
                        willfully violates any provision of this 
                        section (including any requirement of this 
                        paragraph) and who has committed a prior 
                        willful violation of any provision of this 
                        section (including any requirement of this 
                        paragraph); and
                            ``(III) revoke any license issued under 
                        this section to a high-volume crime gun dealer 
                        who willfully violates any provision of section 
                        922 or 924.
                    ``(ii) Stay pending appeal.--Notwithstanding 
                subsection (f)(3), the Secretary may not stay the 
                effective date of a suspension or revocation under this 
                subparagraph pending an appeal.''.

SEC. 3. ENHANCED ABILITY TO TRACE FIREARMS.

    (a) Voluntary Submission of Dealer's Records.--Section 923(g)(4) of 
title 18, United States Code, is amended to read as follows:
            ``(4) Voluntary submission of dealer's records.--
                    ``(A) Business discontinued.--
                            ``(i) Successor.--When a firearms or 
                        ammunition business is discontinued and 
                        succeeded by a new licensee, the records 
                        required to be kept by this chapter shall 
                        appropriately reflect that fact and shall be 
                        delivered to the successor. Upon receipt of 
                        those records, the successor licensee may 
                        retain the records of the discontinued business 
                        or submit the discontinued business records to 
                        the Secretary.
                            ``(ii) No successor.--When a firearms or 
                        ammunition business is discontinued without a 
                        successor, records required to be kept by this 
                        chapter shall be delivered to the Secretary 
                        within 30 days after the business is 
                        discontinued.
            ``(B) Old records.--A licensee maintaining a firearms 
        business may voluntarily submit the records required to be kept 
        by this chapter to the Secretary if such records are at least 
        20 years old.
            ``(C) State or local requirements.--If State law or local 
        ordinance requires the delivery of records regulated by this 
        paragraph to another responsible authority, the Secretary may 
        arrange for the delivery of records to such other responsible 
        authority.''
    (b) Centralization and Maintenance of Records.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
            ``(9) Centralization and maintenance of records by 
        secretary.--Notwithstanding any other provision of law, the 
        Secretary--
                    ``(A) may receive and centralize any information or 
                records submitted to the Secretary under this chapter 
                and maintain such information or records in whatever 
                manner will enable their most efficient use in law 
                enforcement investigations; and
                    ``(B) shall retain a record of each firearms trace 
                conducted by the Secretary, unless the Secretary 
                determines that there is a valid law enforcement reason 
                not to retain the record.''.
    (c) Licensee Reports of Secondhand Firearms.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
            ``(10) Licensee reports of secondhand firearms.--A licensed 
        importer, licensed manufacturer, and licensed dealer shall 
        submit to the Secretary, on a form prescribed by the Secretary, 
        a monthly report of each firearm received from a person not 
        licensed under this chapter during that month, which report 
        shall not include any identifying information relating to the 
        transferor or any subsequent purchaser.''.

SEC. 4. GENERAL REGULATION OF FIREARMS TRANSFERS.

    (a) Transfers of Crime Guns.--Section 924(h) of title 18, United 
States Code, is amended by inserting ``or having reasonable cause to 
believe'' after ``knowing''.
    (b) Increased Penalties for Trafficking in Firearms With 
Obliterated Serial Numbers.--Section 924(a) of title 18, United States 
Code, is amended--
            (1) in paragraph (1)(B), by striking ``(k),''; and
            (2) in paragraph (2), by inserting ``(k),'' after ``(j),''.

SEC. 5. AMENDMENT OF FEDERAL SENTENCING GUIDELINES.

    The United States Sentencing Commission shall amend the Federal 
sentencing guidelines to reflect the amendments made by this Act.