A bill to enhance the security and safety of the Nation by increasing the time allowed to track terrorists during periods of elevated alert, closing loopholes that have allowed terrorists to acquire firearms, maintaining records of certain handgun transfers during periods of heightened terrorist risk, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeland Security Gun Safety Act of 
2003''.

SEC. 2. SUSPENSION OF CERTAIN ADMINISTRATIVE PROVISIONS DURING PERIODS 
              OF HEIGHTENED THREAT CONDITION.

    Section 922 of title 18, United States Code, is amended--
            (1) in subsection (s)(6), by adding at the end the 
        following:
    ``(D)(i) Subparagraph (B)(i) shall not apply during any period in 
which the threat condition under the Homeland Security Advisory System 
is elevated, high, or severe.
    ``(ii) The provision under clause (i) shall remain in effect until 
the threat condition has been at the lowest level for 180 consecutive 
days.''; and
            (2) in subsection (t)--
                    (A) in paragraph (1)(B)(ii), by inserting ``subject 
                to paragraph (7),'' before ``3 business days''; and
                    (B) by adding at the end the following:
    ``(7)(A) Paragraphs (1)(B)(ii) and (2)(C) shall not apply during 
any period in which the threat condition under the Homeland Security 
Advisory System is elevated, high, or severe.
    ``(B) The provision under subparagraph (A) shall remain in effect 
until the threat condition has been at the lowest level for 180 
consecutive days.''.

SEC. 3. FIREARM STORAGE AND TRANSFER REQUIREMENTS.

    (a) Limitations on Handgun Sales.--Section 922(b) of title 18, 
United States Code, is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (3) by inserting after paragraph (5), the following:
            ``(6) any firearm to a qualified purchaser if the licensee 
        knows, or has reasonable cause to believe, that--
                    ``(A) the purchaser intends to transfer the firearm 
                to an individual who would otherwise be ineligible to 
                purchase a firearm under this chapter; or
                    ``(B) the gun will be used in the commission of a 
                crime.''.
    (b) Reporting Requirement.--Section 922(s)(6)(C) of title 18, 
United States Code, is amended to read as follows:
    ``(C) If a chief law enforcement officer determines that a person 
is ineligible to receive a handgun, the officer shall--
            ``(i) notify the Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives of the person's attempt to purchase a firearm; and
            ``(ii) not later than 20 business days after a request from 
        such person, provide the person with a written explanation of 
        the reasons for such determination.''.
    (c) Multiple Handgun Sales.--Section 922 of title 18, United States 
Code, is amended by inserting after subsection (y) the following:
    ``(z) Prohibition Against Multiple Handgun Sales or Purchases.--
            ``(1) Sales.--It shall be unlawful for any licensed 
        dealer--
                    ``(A) during any 30-day period, to sell 2 or more 
                handguns to an individual who is not licensed under 
                section 923; or
                    ``(B) to sell a handgun to an individual who--
                            ``(i) is not licensed under section 923; 
                        and
                            ``(ii) purchased a handgun during the 30-
                        day period ending on the date of the sale.
            ``(2) Purchases.--It shall be unlawful for any individual 
        who is not licensed under section 923 to purchase 2 or more 
        handguns during any 30-day period.
            ``(3) Exchanges.--Paragraph (1) does not apply to an 
        exchange of 1 handgun for 1 handgun.''.
    (d) Security Standards for Storage and Display of Firearms.--
            (1) Rulemaking authority.--Not later than 180 days after 
        the date of enactment of this Act, the Attorney General shall, 
        by regulation, prescribe security standards, to prevent theft 
        or other loss of firearms, for the storage and display of 
        firearms by firearms dealers that are licensed under chapter 44 
        of title 18, United States Code.
            (2) Penalties for violation of standards.--If a licensed 
        firearms dealer fails to comply with the standards prescribed 
        pursuant to paragraph (1), the Attorney General--
                    (A) shall suspend the license of such dealer until 
                the dealer is found to be in compliance with such 
                standards; and
                    (B) may assess a fine in accordance with section 
                3571 of title 18, United States Code.

SEC. 4. LICENSING REQUIREMENTS.

    (a) Requirement of Licensees To Comply With Minimum Standards.--
Section 923(e) of title 18, United States Code, is amended by striking 
``or fails'' and adding the following: ``, fails to comply with the 
requirements under subsection (d)(1), or fails''.
    (b) Unlimited Inspections.--Section 923(g)(1)(B) of title 18, 
United States Code, is amended by striking ``without such reasonable 
cause or war-
rant--'' and all that follows and inserting ``at any time without such 
reasonable cause or warrant.''.
    (c) Secondhand Firearm Purchases; Criminal Background Checks.--
Section 923 of title 18, United States Code, is amended by adding at 
the end the following:
    ``(m)(1) A licensed importer, licensed dealer, or licensed 
collector shall, before purchasing a firearm from a person who is not 
licensed under this chapter, check the make, model, and serial number 
of the firearm against the Stolen Gun File of the National Crime 
Information Center.
    ``(2) If a record of the firearm under paragraph (1) is contained 
in the Stolen Gun File, the licensee who acquired such information 
shall immediately report the make, model, and serial number of the 
firearm of an unlicensed person and the name of the person who offered 
to sell the firearm to--
            ``(A) the National Crime Information Center;
            ``(B) the Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives; and
            ``(C) local law enforcement.
    ``(n)(1) Each licensee shall submit to the Attorney General the 
name and other identifying information of each responsible person or 
employee who will be authorized by the licensee to handle or possess 
firearms in the course of employment with the licensee. Upon the 
receipt of such information from the licensee, the Attorney General 
shall determine whether the responsible person or employee is described 
under section 922(d).
    ``(2) If the Attorney General determines that the responsible 
person or employee is not described under section 922(d), the Attorney 
General shall notify the licensee in writing or electronically of the 
determination and issue, to the responsible person or employee, a 
letter of clearance, which confirms the determination.
    ``(3) If the Attorney General determines that the responsible 
person or employee is described under section 922(d), the Attorney 
General shall notify the licensee in writing or electronically of the 
determination and issue to the responsible person or employee, as the 
case may be, a document that--
            ``(A) confirms the determination;
            ``(B) explains the grounds for the determination;
            ``(C) provides information on how the disability may be 
        relieved; and
            ``(D) explains how the determination may be appealed.''.

SEC. 5. PENALTIES.

    (a) Enhanced Penalties.--Section 924(a) of title 18, United States 
Code, is amended--
            (1) in paragraph (2), by striking ``or (o)'' and inserting 
        ``(o), or (z)'';
            (2) in paragraph (3), by striking ``one year'' and 
        inserting ``5 years''; and
            (3) in paragraph (6)(B)(i), by striking ``1 year'' and 
        inserting ``5 years''.
    (b) Mandatory Suspension of License When Licensee Charged With 
Crime.--Section 924 of title 18, United States Code, is amended by 
adding at the end the following:
    ``(p) A license issued to a person under this chapter shall be 
suspended when the licensee is charged with a violation of this 
chapter. Such suspension shall continue until--
            ``(1) the licensee is convicted of the violation, at which 
        time the license shall be revoked; or
            ``(2) the licensee is acquitted, at which time the license 
        shall be restored.''.
    (c) Penalty for Failure To Report Missing Firearms.--Section 924 of 
title 18, United States Code, as amended by subsection (b), is further 
amended by adding at the end the following:
    ``(q)(1) A person who violates section 923(g)(6), or makes a false 
statement relating to firearms, shall, immediately upon discovery by 
the Attorney General of such conduct, have any license issued under 
this chapter immediately suspended for not less than 48 hours. A 
suspension under this subsection shall not terminate until the Attorney 
General completes an investigation of the conduct that necessitated 
such suspension.
    ``(2) A dealer, importer, manufacturer, or collector licensed under 
this chapter who violates section 923(g), or knowingly makes a false 
statement in connection with the firearms of such licensee, may be 
fined under this title and imprisoned not more than 5 years.''.

SEC. 6. EXPLOSIVE MATERIALS.

    Section 845(a)(5) of title 18, United States Code, is amended by 
striking ``fifty pounds'' and inserting ``5 pounds''.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for fiscal year 2004--
            (1) $50,000,000 to hire not less than 500 new inspectors 
        within the Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives, Department of Justice; and
            (2) $100,000,000 to hire not less than 1000 new agents 
        within the Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives, Department of Justice.

Summary: Homeland Security Gun Safety Act of 2003 - Amends the Brady Handgun Violence Prevention Act to make certain requirements with respect to the destruction of records of firearms transfers inapplicable during periods in which the Homeland Security Advisory System threat condition is elevated, high, or severe. Prohibits a licensed dealer from selling or delivering a firearm to a qualified purchaser if the dealer has reasonable cause to believe that: (1) the purchaser intends to transfer the firearm to an ineligible individual. Or (2) the gun will be used in a crime. Requires a chief law enforcement officer who determines that a person is ineligible to receive a handgun to notify the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE) of the person's attempt to purchase a firearm. Prohibits the sale to, or purchase by, an unlicensed individual of two or more handguns during any 30-day period. Directs the Attorney General to prescribe security standards for the storage and display of firearms by licensed firearms dealers to prevent theft or other loss. Authorizes inspections of the inventory and records of a licensed importer, manufacturer, or dealer at any time without reasonable cause or warrant. Requires a licensed importer, dealer, or collector, before purchasing a firearm from an unlicensed person, to check the firearm against the Stolen Gun File of the National Crime Information Center. Increases penalties for specified violations. Provides for: (1) mandatory license suspension when the licensee is charged with a crime. And (2) license suspension for at least 48 hours for failure to report a missing firearm. Reduces from 50 pounds to five pounds of commercially manufactured black powder the threshold amount covered by certain explosives provisions. Authorizes appropriations to hire new BATFE inspectors and agents.