SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gun Show Loophole Closing Act of 
2009''.

SEC. 2. GUN SHOW BACKGROUND CHECK.

    (a) Findings.--The Congress finds that--
            (1) approximately 5,200 traditional gun shows are held 
        annually across the United States, attracting thousands of 
        attendees per show and hundreds of Federal firearms licensees 
        and unlicensed firearms sellers; and
            (2) gun shows at which firearms are exhibited or offered 
        for sale or exchange provide a convenient and centralized 
        commercial location where criminals and other prohibited 
        persons obtain firearms without background checks and without 
        records that enable firearm tracing.
    (b) Definitions.--Section 921(a) of title 18, United States Code, 
is amended by adding at the end the following:
    ``(36) Gun Show.--The term `gun show'--
            ``(A) means any event at which 50 or more firearms are 
        offered or exhibited for sale, exchange, or transfer, if 1 or 
        more of the firearms has been shipped or transported in, or 
        otherwise affects, interstate or foreign commerce;
            ``(B) does not include an offer or exhibit of firearms for 
        sale, exchange, or transfer by an individual from the personal 
        collection of that individual, at the private residence of that 
        individual, if the individual is not required to be licensed 
        under section 923; and
            ``(C) does not include an offer or exhibit of firearms for 
        sale, exchange, or transfer at events--
                    ``(i) where not more than 100 firearms are offered 
                or exhibited for sale, exchange or transfer;
                    ``(ii) that are conducted by private, not-for-
                profit organizations whose primary purpose is owning 
                and maintaining real property for the purpose of 
                hunting activities; and
                    ``(iii) that are attended only by permanent or 
                annual dues-paying members of the organizations, and 
                the members of the immediate families of the dues-
                paying members.
    ``(37) Gun Show Vendor.--The term `gun show vendor' means a person 
who is not licensed under section 923 and who exhibits, sells, offers 
for sale, transfers, or exchanges a firearm at a gun show, regardless 
of whether or not the person arranges with the gun show operator for a 
fixed location from which to exhibit, sell, offer for sale, transfer, 
or exchange the firearm.''.
    (c) Regulation of Firearms Transfers at Gun Shows.--
            (1) In general.--Chapter 44 of such title is amended by 
        adding at the end the following:
``Sec. 932. Regulation of firearms transfers at gun shows
    ``(a) Registration of Gun Show Operators.--It shall be unlawful for 
a person to operate a gun show, unless--
            ``(1) the person has attained 21 years of age;
            ``(2) the person (and, if the person is a corporation, 
        partnership, or association, each individual possessing, 
        directly or indirectly, the power to direct or cause the 
        direction of the management and policies of the corporation, 
        partnership, or association) is not prohibited by subsection 
        (g) or (n) of section 922 from transporting, shipping, or 
        receiving firearms or ammunition in interstate or foreign 
        commerce;
            ``(3) the person has not willfully violated any provision 
        of this chapter or regulation issued under this chapter;
            ``(4) the person has registered with the Attorney General 
        as a gun show operator, in accordance with regulations 
        promulgated by the Attorney General, and as part of the 
        registration--
                    ``(A) has provided the Attorney General with a 
                photograph and the fingerprints of the person; and
                    ``(B) has certified that the person meets the 
                requirements of subparagraphs (A) through (D) of 
                section 923(d)(1);
            ``(5) the person has not willfully failed to disclose any 
        material information required, and has not made any false 
        statement as to any material fact, in connection with the 
        registration; and
            ``(6) the person has paid the Attorney General a fee for 
        the registration, in an amount determined by the Attorney 
        General.
    ``(b) Responsibilities of Gun Show Operators.--
            ``(1) In general.--It shall be unlawful for a person to 
        operate a gun show, unless the person--
                    ``(A) not later than 30 days before the 
                commencement of the gun show, notifies the Attorney 
                General, in writing, of the date, time, duration, and 
                location of the gun show, and the identity of each 
                person who will be a gun show vendor at the gun show;
                    ``(B) before commencement of the gun show--
                            ``(i) verifies the identity of each 
                        individual who will be a gun show vendor at the 
                        gun show by examining a valid identification 
                        document (as defined in section 1028(d)(3)) of 
                        the individual containing a photograph of the 
                        individual; and
                            ``(ii) requires each such individual to 
                        sign--
                                    ``(I) a ledger, and enter into the 
                                ledger identifying information 
                                concerning the individual; and
                                    ``(II) a notice which sets forth 
                                the obligations of a gun show vendor 
                                under this chapter; and
                    ``(C) notifies each person who attends the gun show 
                of the requirements of this chapter, in accordance with 
                such regulations as the Attorney General shall 
                prescribe.
            ``(2) Recordkeeping.--A person who operates, or has 
        operated, a gun show shall maintain records demonstrating 
        compliance with paragraph (1)(B), at such place, for such 
        period of time, and in such form as the Attorney General shall 
        require by regulation, or transmit the records to the Attorney 
        General.
    ``(c) Background Check Required Before Transfer of Firearm Between 
Unlicensed Persons.--It shall be unlawful for a person who is not 
licensed under this chapter to transfer possession of, or title to, a 
firearm at, or on the curtilage of, a gun show, to another person who 
is not so licensed, or for a person who is not so licensed to receive 
possession of, or title to, a firearm at, or on the curtilage of, a gun 
show from another person who is not so licensed, unless a licensed 
importer, licensed manufacturer, or licensed dealer--
            ``(1) has entered into a separate bound record the make, 
        model, and serial number of the firearm, and such other 
        information about the transaction as the Attorney General may 
        require by regulation; and
            ``(2) has notified the prospective transferor and 
        prospective transferee of the firearm that the national instant 
        criminal background check system established under section 103 
        of the Brady Handgun Violence Prevention Act has provided the 
        licensee with a unique identification number, indicating that 
        receipt of the firearm by the prospective transferee would not 
        violate section 922 of this title or State law.
    ``(d) Recordkeeping Requirements.--
            ``(1) In general.--A licensee who provides a notice 
        pursuant to subsection (c)(2) with respect to the transfer of a 
        firearm shall--
                    ``(A) not later than 10 days after the date of the 
                transfer, submit to the Attorney General a report of 
                the transfer, which report shall specify the make, 
                model, and serial number of the firearm, and contain 
                such other information and be on such form, as the 
                Attorney General shall require by regulation, except 
                that the report shall not include the name of or other 
                identifying information relating to any person involved 
                in the transfer who is not licensed under this chapter; 
                and
                    ``(B) retain a record of the transfer, including 
                the same information as would be required if the 
                transfer were from the inventory of the licensee, as 
                part of the permanent business records of the licensee.
            ``(2) Limitation.--The Attorney General may not impose any 
        recordkeeping requirement on any gun show vendor by reason of 
        this section.''.
            (2) Penalties.--Section 924(a) of such title is amended by 
        adding at the end the following:
    ``(8)(A) Whoever knowingly violates subsection (a) or (d) of 
section 932 shall be fined under this title, imprisoned not more than 5 
years, or both.
    ``(B) Whoever knowingly violates subsection (b) or (c) of section 
932, shall be--
            ``(i) fined under this title, imprisoned not more than 2 
        years, or both; and
            ``(ii) in the case of a second or subsequent conviction, 
        fined under this title, imprisoned not more than 5 years, or 
        both.
    ``(C) In addition to any other penalties imposed under this 
paragraph, the Attorney General may, with respect to any person who 
knowingly violates any provision of section 932--
            ``(i) if the person is registered pursuant to section 
        932(a), after notice and opportunity for a hearing, suspend for 
        not more than 6 months or revoke the registration of that 
        person under section 932(a); and
            ``(ii) impose a civil fine in an amount equal to not more 
        than $10,000.''.
            (3) Clerical amendment.--The table of contents for chapter 
        44 of such title is amended by adding at the end the following:

``Sec. 932. Regulation of firearms transfers at gun shows.''.
    (d) Inspection Authority.--Section 923(g)(1) of such title is 
amended by adding at the end the following:
                    ``(E) Notwithstanding subparagraph (B) of this 
                paragraph, the Attorney General may enter during 
                business hours any place where a gun show operator 
                operates a gun show or is required to maintain records 
                pursuant to section 932(b)(2), for purposes of 
                examining the records required by sections 923 and 932 
                and the inventory of licensees conducting business at 
                the gun show. The entry and examination shall be 
                conducted for the purposes of determining compliance 
                with this chapter by gun show operators and licensees 
                conducting business at the gun show, and shall not 
                require a showing of reasonable cause or a warrant.''.
    (e) Reports of Multiple Sales Assisted by Licensees at Gun Shows.--
Section 923(g)(3)(A) of such title is amended by inserting ``or 
provides pursuant to section 932(c)(2) notice with respect to,'' after 
``sells or otherwise disposes of,''.
    (f) Increased Penalties for Serious Recordkeeping Violations by 
Licensees.--Section 924(a)(3) of such title is amended to read as 
follows:
            ``(3)(A) Except as provided in subparagraph (B), any 
        licensed dealer, licensed importer, licensed manufacturer, or 
        licensed collector who knowingly makes any false statement or 
        representation with respect to the information required by this 
        chapter to be kept in the records of a person licensed under 
        this chapter, or violates section 922(m), shall be fined under 
        this title, imprisoned not more than 1 year, or both.
            ``(B) If the violation described in subparagraph (A) is in 
        relation to an offense--
                    ``(i) under paragraph (1) or (3) of section 922(b), 
                such person shall be fined under this title, imprisoned 
                not more than 5 years, or both; or
                    ``(ii) under subsection (a)(6) or (d) of section 
                922, such person shall be fined under this title, 
                imprisoned not more than 10 years, or both.''.
    (g) Increased Penalties for Violations of Criminal Background Check 
Requirements.--
            (1) Penalties.--Section 924(a)(5) of such title is 
        amended--
                    (A) by striking ``subsection (s) or (t) of section 
                922'' and inserting ``section 922(t)''; and
                    (B) by striking ``1'' and inserting ``5''.
            (2) Elimination of certain elements of offense.--Section 
        922(t)(5) of such title is amended by striking ``and, at the 
        time'' and all that follows through ``State law''.
    (h) Authority To Hire Personnel To Inspect Gun Shows.--The Director 
of the Bureau of Alcohol, Tobacco, Firearms, and Explosives may hire at 
least 40 additional Industry Operations Investigators for the purpose 
of carrying out inspections of gun shows (as defined in section 
921(a)(36) of title 18, United States Code).
    (i) Report to the Congress.--The Director of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives shall submit biennial reports to the 
Congress on how firearms (as defined in section 921(a)(3) of title 18, 
United States Code) are sold at gun shows (as defined in paragraph (36) 
of such section), how this section is being carried out, whether 
firearms are being sold without background checks conducted by the 
national instant criminal background check system established under 
section 103 of the Brady Handgun Violence Prevention Act, what 
resources are needed to carry out this section, and any recommendations 
for improvements to ensure that firearms are not sold without the 
background checks.
    (j) Effective Date.--This section and the amendments made by this 
section shall take effect 180 days after the date of enactment of this 
Act.
Gun Show Loophole Closing Act of 2009 - Amends the federal criminal code to make it unlawful for any person to operate a gun show unless such person: (1) has attained 21 years of age; (2) is not prohibited from transporting, shipping, or receiving firearms and has not violated any federal firearms requirements; (3) has registered with the Attorney General as a gun show operator and has provided a photograph and fingerprints; (4) has not concealed material information nor made false statements in connection with a gun show operator registration; and (5) notifies the Attorney General of the date, time, and duration of a gun show not later than 30 days before the commencement of such show and verifies the identity of each vendor at the gun show.

Imposes recordkeeping requirements on gun show operators and criminal penalties for failure to register as a gun show operator and maintain required records.

Grants the Attorney General authority to enter the business premises of any gun show operator, without a showing of reasonable cause or a warrant, to examine records and inventory to determine compliance with this Act.

Increases criminal penalties for serious recordkeeping violations and violations of criminal background check requirements.

Authorizes the Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to hire additional investigators to carry out inspections of gun shows.
To require criminal background checks on all firearms transactions occurring at gun shows.