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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 368 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 368

         To provide for greater safety in the use of firearms.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 14, 2015

  Mr. Deutch introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
         To provide for greater safety in the use of firearms.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safe and Responsible Gun Transfer 
Act''.

      TITLE I--REQUIRING A BACKGROUND CHECK FOR EVERY FIREARM SALE

SEC. 101. PURPOSE.

    The purpose of this title is to extend the Brady Law background 
check procedures to all sales and transfers of firearms.

SEC. 102. FIREARMS TRANSFERS.

    (a) In General.--Chapter 44 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 932. Background checks for firearm transfers by unlicensed 
              persons
    ``(a) Definitions.--In this section--
            ``(1) the term `unlicensed transferee' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to receive a firearm from an 
                unlicensed transferor; and
            ``(2) the term `unlicensed transferor' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to transfer a firearm to an 
                unlicensed transferee.
    ``(b) Responsibilities of Transferors Other Than Licensees.--
            ``(1) In general.--It shall be unlawful for an unlicensed 
        transferor to transfer a firearm to an unlicensed transferee, 
        unless the firearm is transferred--
                    ``(A)(i) through a licensed dealer under subsection 
                (d);
                    ``(ii) through a law enforcement agency under 
                subsection (e);
                    ``(iii) after inspecting a permit that confirms a 
                background check under subsection (f); or
                    ``(iv) in accordance with an exception described in 
                subsection (g); and
                    ``(B) in accordance with paragraph (2).
            ``(2) Criminal background checks.--Except as provided in 
        subsection (g), an unlicensed transferor--
                    ``(A) subject to subparagraph (B), may not transfer 
                a firearm to an unlicensed transferee until--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(A);
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(A); or
                            ``(iii) the unlicensed transferee has 
                        presented a permit that confirms that a 
                        background check has been conducted, as 
                        described in subsection (f); and
                    ``(B) may not transfer a firearm to an unlicensed 
                transferee if--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes the 
                        notification described in subsection (d)(3)(B); 
                        or
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes the notification described in subsection 
                        (e)(3)(B).
            ``(3) Absence of recordkeeping requirements.--Nothing in 
        this section shall permit or authorize the Attorney General to 
        impose recordkeeping requirements on any unlicensed transferor.
    ``(c) Responsibilities of Transferees Other Than Licensees.--
            ``(1) In general.--It shall be unlawful for an unlicensed 
        transferee to receive a firearm from an unlicensed transferor, 
        unless the firearm is transferred--
                    ``(A)(i) through a licensed dealer under subsection 
                (d);
                    ``(ii) through a law enforcement agency under 
                subsection (e);
                    ``(iii) after inspecting a permit that confirms a 
                background check in accordance with subsection (f); or
                    ``(iv) in accordance with an exception described in 
                subsection (g); and
                    ``(B) in accordance with paragraph (2).
            ``(2) Criminal background checks.--Except as provided in 
        subsection (g), an unlicensed transferee--
                    ``(A) subject to subparagraph (B), may not receive 
                a firearm from an unlicensed transferor until--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(A);
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(A); or
                            ``(iii) the unlicensed transferee has 
                        presented a permit that confirms that a 
                        background check described in subsection (f) 
                        has been conducted; and
                    ``(B) may not receive a firearm from another 
                unlicensed transferor if--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(B); 
                        or
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(B).
    ``(d) Background Checks Through Licensed Dealers.--A licensed 
dealer who agrees to assist in the transfer of a firearm between 
unlicensed transferor and an unlicensed transferee shall--
            ``(1) enter such information about the firearm as the 
        Attorney General may require by regulation into a separate 
        bound record;
            ``(2) record the transfer on a form specified by the 
        Attorney General;
            ``(3) comply with section 922(t) as if transferring the 
        firearm from the inventory of the licensed dealer to the 
        unlicensed transferee (except that a licensed dealer assisting 
        in the transfer of a firearm under this subsection shall not be 
        required to comply again with the requirements of section 
        922(t) in delivering the firearm to the unlicensed transferee) 
        and notify the unlicensed transferor and unlicensed 
        transferee--
                    ``(A) of such compliance; and
                    ``(B) if the transfer is subject to the 
                requirements of section 922(t)(1), of any receipt by 
                the licensed dealer of a notification from the national 
                instant criminal background check system that the 
                transfer would violate section 922 or State law;
            ``(4) not later than 31 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of or other 
                identifying information relating to the unlicensed 
                transferor or unlicensed transferee;
            ``(5) if the licensed dealer assists an unlicensed 
        transferor in transferring, at the same time or during any 5 
        consecutive business days, two or more pistols or revolvers, or 
        any combination of pistols and revolvers totaling two or more, 
        to the same unlicensed transferee, in addition to the reports 
        required under paragraph (4), prepare a report of the multiple 
        transfers, which shall--
                    ``(A) be prepared on a form specified by the 
                Attorney General; and
                    ``(B) not later than the close of business on the 
                date on which the transfer requiring the report under 
                this paragraph occurs, be submitted to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(6) retain a record of the transfer as part of the 
        permanent business records of the licensed dealer.
    ``(e) Background Checks Through Law Enforcement Agencies.--A State 
or local law enforcement agency that agrees to assist an unlicensed 
transferor in carrying out the responsibilities of the unlicensed 
transferor under subsection (b) with respect to the transfer of a 
firearm shall--
            ``(1)(A) contact the national instant criminal background 
        check system under section 922(t); and
            ``(B)(i) receive an identification number as described in 
        section 922(t)(1)(B)(i); or
            ``(ii) wait the period described in 922(t)(1)(B)(ii);
            ``(2) conduct such other checks as the agency considers 
        appropriate to determine whether the receipt or possession of 
        the firearm by the unlicensed transferee would violate section 
        922 or State law;
            ``(3) verify the identity of the unlicensed transferee by--
                    ``(A) examining a valid identification document (as 
                defined in section 1028(d)) of the unlicensed 
                transferee containing a photograph of the unlicensed 
                transferee; or
                    ``(B) confirming that the unlicensed transferor has 
                examined a valid identification document described in 
                subparagraph (A);
            ``(4) notify the unlicensed transferor and transferee--
                    ``(A) of the compliance by the law enforcement 
                agency with the requirements under paragraphs (1), (2), 
                and (3); and
                    ``(B) of any receipt by the law enforcement agency 
                of a notification from the national instant criminal 
                background check system or other information that the 
                transfer would violate section 922 or would violate 
                State law;
            ``(5) not later than 31 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of or other 
                identifying information relating to the unlicensed 
                transferor or unlicensed transferee;
            ``(6) if the law enforcement agency assists an unlicensed 
        transferor in transferring, at the same time or during any 5 
        consecutive business days, two or more pistols or revolvers, or 
        any combination of pistols and revolvers totaling two or more, 
        to the same unlicensed transferee, in addition to the reports 
        required under paragraph (5), prepare a report of the multiple 
        transfers, which shall be--
                    ``(A) prepared on a form specified by the Attorney 
                General; and
                    ``(B) not later 24 hours after the transfer 
                requiring the report under this paragraph occurs, 
                submitted to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(7) maintain records of the transfer at such place, and 
        in such form, as the Attorney General may prescribe.
    ``(f) Purchase Permits Confirming Background Checks.--An unlicensed 
transferor may transfer a firearm to an unlicensed transferee if the 
unlicensed transferor verifies that--
            ``(1) the unlicensed transferee has presented to a licensed 
        dealer or a law enforcement official a permit or license that 
        allows the unlicensed transferee to possess, acquire, or carry 
        a firearm, and the licensed dealer or law enforcement official, 
        as the case may be, has verified to the unlicensed transferor 
        that the permit or license is valid;
            ``(2) the permit or license was issued not more than 5 
        years before the date on which the permit or license is 
        presented under paragraph (1) by a law enforcement agency in 
        the State in which the transfer is to take place;
            ``(3) the law of the State provides that the permit or 
        license is to be issued only after a law enforcement official 
        has verified that neither the national instant criminal 
        background check system nor other information indicates that 
        possession of a firearm by the unlicensed transferee would be 
        in violation of Federal, State, or local law; and
            ``(4) if the permit or license does not include a 
        photograph of the unlicensed transferee, the unlicensed 
        transferor has examined a valid identification document (as 
        defined in section 1028(d)) of the unlicensed transferee 
        containing a photograph of the unlicensed transferee.
    ``(g) Exceptions.--Unless prohibited by any other provision of law, 
subsections (b) and (c) shall not apply to any transfer of a firearm 
between an unlicensed transferor and unlicensed transferee, if--
            ``(1) the transfer is a bona fide gift between immediate 
        family members, including spouses, parents, children, siblings, 
        grandparents, and grandchildren;
            ``(2) the transfer occurs by operation of law, or because 
        of the death of another person for whom the unlicensed 
        transferor is an executor or administrator of an estate or a 
        trustee of a trust created in a will;
            ``(3) the transfer is temporary and occurs while in the 
        home of the unlicensed transferee, if--
                    ``(A) the unlicensed transferee is not otherwise 
                prohibited from possessing firearms; and
                    ``(B) the unlicensed transferee believes that 
                possession of the firearm is necessary to prevent 
                imminent death or great bodily harm to the unlicensed 
                transferee;
            ``(4) the transfer is approved by the Attorney General 
        under section 5812 of the Internal Revenue Code of 1986;
            ``(5) upon application of the unlicensed transferor, the 
        Attorney General determined that compliance with subsection (b) 
        is impracticable because--
                    ``(A) the ratio of the number of law enforcement 
                officers of the State in which the transfer is to occur 
                to the number of square miles of land area of the State 
                does not exceed 0.0025;
                    ``(B) the location at which the transfer is to 
                occur is extremely remote in relation to the chief law 
                enforcement officer (as defined in section 922(s)(8)); 
                and
                    ``(C) there is an absence of telecommunications 
                facilities in the geographical area in which the 
                unlicensed transferor is located; or
            ``(6) the transfer is a temporary transfer of possession 
        without transfer of title that takes place--
                    ``(A) at a shooting range located in or on premises 
                owned or occupied by a duly incorporated organization 
                organized for conservation purposes or to foster 
                proficiency in firearms;
                    ``(B) at a target firearm shooting competition 
                under the auspices of or approved by a State agency or 
                nonprofit organization; or
                    ``(C) while hunting, fishing, or trapping, if--
                            ``(i) the activity is legal in all places 
                        where the unlicensed transferee possesses the 
                        firearm; and
                            ``(ii) the unlicensed transferee holds any 
                        required license or permit.
    ``(h) Processing Fees.--A licensed dealer or law enforcement agency 
that processes the transfer of a firearm under this section may assess 
and collect a fee, in an amount not to exceed $15, with respect to each 
firearm transfer processed.
    ``(i) Records.--Nothing in subsection (e)(7) shall be construed to 
authorize the Attorney General to inspect records described in such 
subsection or to require that the records be transferred to a facility 
owned, managed, or controlled by the United States.''.
    (b) Penalties.--Section 924(a)(5) of title 18, United States Code, 
is amended by inserting ``or section 932'' after ``section 922''.
    (c) Conforming Amendment.--The table of sections for chapter 44 of 
title 18, United States Code, is amended by adding at the end the 
following:

``932. Background checks for firearm transfers by unlicensed 
                            persons.''.

SEC. 103. EFFECTIVE DATE.

    The amendments made by this title shall take effect 180 days after 
the date of enactment of this Act.

           TITLE II--BACKGROUND CHECKS FOR GUN SHOP EMPLOYEES

SEC. 201. BACKGROUND CHECKS REQUIRED FOR EMPLOYEES AUTHORIZED TO 
              POSSESS OR TRANSFER FIREARMS OR AMMUNITION IN THE COURSE 
              OF A LICENSED FIREARM BUSINESS.

    (a) In General.--Section 923 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(m)(1)(A) It shall be unlawful for a licensed dealer to authorize 
an employee hired by the employer on or after the effective date of 
this subsection to possess or transfer a firearm or ammunition in the 
course of employment with the licensed dealer, unless the licensed 
dealer has received from the Attorney General a notice that the 
Attorney General has determined that receipt of a firearm by the 
employee would not be unlawful.
    ``(B) Beginning 3 months after the effective date of this 
subsection, it shall be unlawful for a licensed dealer to authorize an 
employee hired by the employer before the effective date of this 
subsection, to possess or transfer a firearm or ammunition in the 
course of employment with the licensed dealer, unless the licensed 
dealer has received from the Attorney General a notice that the 
Attorney General has determined that receipt of a firearm by the 
employee would not be unlawful.
    ``(2) The Attorney General may temporarily waive the applicability 
of paragraph (1) to an employer with respect to an employee about whom 
the employer has submitted to the Attorney General the information 
described in paragraph (3) if the Attorney General determines that the 
Attorney General will be unable to make a determination under paragraph 
(3) with respect to the employee in a timely manner.
    ``(3)(A) If the Attorney General receives from a licensed dealer 
the name and other identifying information of an employee who will be 
authorized by the licensed dealer to possess or transfer a firearm in 
the course of employment with the licensed dealer, the Attorney General 
shall determine whether it would be unlawful for the employee to 
receive a firearm under Federal law or under the law of any State or 
locality in which the employee may be so authorized. In making the 
determination, the Attorney General may take into account a letter or 
document issued under subparagraph (B).
    ``(B)(i) If the Attorney General determines that such a receipt of 
a firearm by the employee would not be unlawful, the Attorney General 
shall notify the licensed dealer in writing or electronically of the 
determination, and issue to the employee a letter of clearance, which 
confirms the determination.
    ``(ii) If the Attorney General determines that such a receipt of a 
firearm by the employee would be unlawful, the Attorney General shall 
notify the licensed dealer in writing or electronically of the 
determination, and issue to the employee a document that--
            ``(I) confirms the determination;
            ``(II) explains the grounds for the determination;
            ``(III) provides information on how the disability may be 
        relieved; and
            ``(IV) explains how the determination may be appealed.''.
    (b) Penalties.--
            (1) Administrative.--Section 923(e) of such title is 
        amended by inserting ``knowingly violated subsection (m)(1) 
        or'' before ``willfully violated''.
            (2) Criminal.--Section 924(a)(1)(D) of such title is 
        amended by inserting ``knowingly violates section 923(m)(1) 
        or'' before ``willfully''.
    (c) Correction of Erroneous System Information.--Section 103(g) of 
the Brady Handgun Violence Prevention Act (18 U.S.C. 922 note) is 
amended--
            (1) by inserting ``or by an employee of the individual'' 
        after ``transferee'' the first place it appears; and
            (2) by inserting ``or employee, as the case may be,'' after 
        ``transferee'' each subsequent place it appears.
    (d) Effective Date.--The amendment made by this section shall apply 
to conduct engaged in after the 3-month period that begins with the 
date of the enactment of this Act.

    TITLE III--PREVENTION OF TERRORISTS FROM OBTAINING FIREARMS OR 
                               EXPLOSIVES

SEC. 301. GRANTING THE ATTORNEY GENERAL THE AUTHORITY TO DENY THE SALE, 
              DELIVERY, OR TRANSFER OF A FIREARM OR THE ISSUANCE OF A 
              FIREARMS OR EXPLOSIVES LICENSE OR PERMIT TO DANGEROUS 
              TERRORISTS.

    (a) Standard for Exercising Attorney General Discretion Regarding 
Transferring Firearms or Issuing Firearms Permits to Dangerous 
Terrorists.--Chapter 44 of title 18, United States Code, is amended--
            (1) by inserting the following new section after section 
        922:
``Sec. 922A. Attorney General's discretion to deny transfer of a 
              firearm
    ``The Attorney General may deny the transfer of a firearm pursuant 
to section 922(t)(1)(B)(ii) if the Attorney General determines that the 
transferee is known (or appropriately suspected) to be or have been 
engaged in conduct constituting, in preparation for, in aid of, or 
related to terrorism, or providing material support thereof, and the 
Attorney General has a reasonable belief that the prospective 
transferee may use a firearm in connection with terrorism.'';
            (2) by inserting the following new section after section 
        922A:
``Sec. 922B. Attorney General's discretion regarding applicants for 
              firearm permits which would qualify for the exemption 
              provided under section 922(t)(3)
    ``The Attorney General may determine that an applicant for a 
firearm permit which would qualify for an exemption under section 
922(t) is known (or appropriately suspected) to be or have been engaged 
in conduct constituting, in preparation for, in aid of, or related to 
terrorism, or providing material support thereof, and the Attorney 
General has a reasonable belief that the applicant may use a firearm in 
connection with terrorism.''; and
            (3) in section 921(a), by adding at the end the following:
    ``(36) The term `terrorism' means `international terrorism' as 
defined in section 2331(1), and `domestic terrorism' as defined in 
section 2331(5).
    ``(37) The term `material support' means `material support or 
resources' within the meaning of section 2339A or 2339B.
    ``(38) The term `responsible person' means an individual who has 
the power, directly or indirectly, to direct or cause the direction of 
the management and policies of the applicant or licensee pertaining to 
firearms.''.
    (b) Effect of Attorney General Discretionary Denial Through the 
National Instant Criminal Background Check System (NICS) on Firearms 
Permits.--Section 922(t) of such title is amended--
            (1) in paragraph (1)(B)(ii), by inserting ``or State law, 
        or that the Attorney General has determined to deny the 
        transfer of a firearm pursuant to section 922A'' before the 
        semicolon;
            (2) in paragraph (2), by inserting after ``or State law'' 
        the following: ``or if the Attorney General has not determined 
        to deny the transfer of a firearm pursuant to section 922A'';
            (3) in paragraph (3)(A)(i)--
                    (A) by striking ``and'' at the end of subclause 
                (I); and
                    (B) by adding at the end the following:
            ``(III) was issued after a check of the system established 
        pursuant to paragraph (1);'';
            (4) in paragraph (3)(A)--
                    (A) by adding ``and'' at the end of clause (ii); 
                and
                    (B) by adding after and below the end the 
                following:
                            ``(iii) the State issuing the permit agrees 
                        to deny the permit application if such other 
                        person is the subject of a determination by the 
                        Attorney General pursuant to section 922B;'';
            (5) in paragraph (4), by inserting after ``or State law,'' 
        the following: ``or if the Attorney General has not determined 
        to deny the transfer of a firearm pursuant to section 922A,''; 
        and
            (6) in paragraph (5), by inserting after ``or State law,'' 
        the following: ``or if the Attorney General has determined to 
        deny the transfer of a firearm pursuant to section 922A,''.
    (c) Unlawful Sale or Disposition of Firearm Based on Attorney 
General Discretionary Denial.--Section 922(d) of such title is 
amended--
            (1) by striking ``or'' at the end of paragraph (8);
            (2) by striking the period at the end of paragraph (9) and 
        inserting ``; or''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) has been the subject of a determination by the 
        Attorney General pursuant to section 922A, 922B, 923(d)(1)(H), 
        or 923(e) of this title.''.
    (d) Attorney General Discretionary Denial as Prohibitor.--Section 
922(g) of such title is amended--
            (1) by striking ``or'' at the end of paragraph (8);
            (2) by striking the comma at the end of paragraph (9) and 
        inserting; ``; or''; and
            (3) by inserting after paragraph (9) the following:
            ``(10) who has received actual notice of the Attorney 
        General's determination made pursuant to section 922A, 922B, 
        923(d)(1)(H), or 923(e) of this title.''.
    (e) Attorney General Discretionary Denial of Federal Firearms 
Licenses.--Section 923(d)(1) of such title is amended--
            (1) by striking ``Any'' and inserting ``Except as provided 
        in subparagraph (H), any'';
            (2) in subparagraph (F)(iii), by striking ``and'' at the 
        end;
            (3) in subparagraph (G), by striking the period and 
        inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(H) The Attorney General may deny a license 
                application if the Attorney General determines that the 
                applicant (including any responsible person) is known 
                (or appropriately suspected) to be or have been engaged 
                in conduct constituting, in preparation for, in aid of, 
                or related to terrorism, or providing material support 
                thereof, and the Attorney General has a reasonable 
                belief that the applicant may use a firearm in 
                connection with terrorism.''.
    (f) Discretionary Revocation of Federal Firearms Licenses.--Section 
923(e) of such title is amended--
            (1) in the first sentence--
                    (A) by inserting after ``revoke'' the following: 
                ``--(1)''; and
                    (B) by striking the period and inserting a 
                semicolon;
            (2) in the second sentence--
                    (A) by striking ``The Attorney General may, after 
                notice and opportunity for hearing, revoke'' and insert 
                ``(2)''; and
                    (B) by striking the period and inserting ``; or''; 
                and
            (3) by adding at the end the following:
            ``(3) any license issued under this section if the Attorney 
        General determines that the holder of the license (including 
        any responsible person) is known (or appropriately suspected) 
        to be or have been engaged in conduct constituting, in 
        preparation for, in aid of, or related to terrorism, or 
        providing material support thereof, and the Attorney General 
        has a reasonable belief that the applicant may use a firearm in 
        connection with terrorism.''.
    (g) Attorney General's Ability To Withhold Information in Firearms 
License Denial and Revocation Suit.--Section 923(f) of such title is 
amended--
            (1) in the first sentence of paragraph (1), by inserting 
        ``, except that if the denial or revocation is pursuant to 
        subsection (d)(1)(H) or (e)(3), then any information on which 
        the Attorney General relied for this determination may be 
        withheld from the petitioner if the Attorney General determines 
        that disclosure of the information would likely compromise 
        national security'' before the period; and
            (2) in paragraph (3), by inserting after the third sentence 
        the following: ``With respect to any information withheld from 
        the aggrieved party under paragraph (1), the United States may 
        submit, and the court may rely on, summaries or redacted 
        versions of documents containing information the disclosure of 
        which the Attorney General has determined would likely 
        compromise national security.''.
    (h) Attorney General's Ability To Withhold Information in Relief 
From Disabilities Lawsuits.--Section 925(c) of such title is amended by 
inserting after the third sentence the following: ``If receipt of a 
firearms by the person would violate section 922(g)(10), any 
information which the Attorney General relied on for this determination 
may be withheld from the applicant if the Attorney General determines 
that disclosure of the information would likely compromise national 
security. In responding to the petition, the United States may submit, 
and the court may rely on, summaries or redacted versions of documents 
containing information the disclosure of which the Attorney General has 
determined would likely compromise national security.''.
    (i) Penalties.--Section 924(k) of such title is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) in paragraph (3), by striking ``, or'' and inserting 
        ``; or''; and
            (3) by inserting after paragraph (3) the following:
            ``(4) constitutes an act of terrorism (as defined in 
        section 921(a)(36)), or material support thereof (as defined in 
        section 921(a)(37)), or''.
    (j) Remedy for Erroneous Denial of Firearm or Firearm Permit 
Exemption.--Section 925A of such title is amended--
            (1) in the section heading, by striking ``Remedy for 
        erroneous denial of firearm'' and inserting ``Remedies'';
            (2) by striking ``Any person denied a firearm pursuant to 
        subsection (s) or (t) of section 922'' and inserting the 
        following:
    ``(a) Except as provided in subsection (b), any person denied a 
firearm pursuant to section 922(t) or pursuant to a determination made 
under section 922B,''; and
            (3) by adding after and below the end the following:
    ``(b) In any case in which the Attorney General has denied the 
transfer of a firearm to a prospective transferee pursuant to section 
922A or has made a determination regarding a firearm permit applicant 
pursuant to section 922B, an action challenging the determination may 
be brought against the United States. The petition must be filed not 
later than 60 days after the petitioner has received actual notice of 
the Attorney General's determination made pursuant to section 922A or 
922B. The court shall sustain the Attorney General's determination on a 
showing by the United States by a preponderance of evidence that the 
Attorney General's determination satisfied the requirements of section 
922A or 922B. To make this showing, the United States may submit, and 
the court may rely on, summaries or redacted versions of documents 
containing information the disclosure of which the Attorney General has 
determined would likely compromise national security. On request of the 
petitioner or the court's own motion, the court may review the full, 
undisclosed documents ex parte and in camera. The court shall determine 
whether the summaries or redacted versions, as the case may be, are 
fair and accurate representations of the underlying documents. The 
court shall not consider the full, undisclosed documents in deciding 
whether the Attorney General's determination satisfies the requirements 
of section 922A or 922B.''.
    (k) Provision of Grounds Underlying Ineligibility Determination by 
the National Instant Criminal Background Check System.--Section 103 of 
the Brady Handgun Violence Prevention Act (Public Law 103-159) is 
amended--
            (1) in subsection (f)--
                    (A) by inserting after ``is ineligible to receive a 
                firearm,'' the following: ``or the Attorney General has 
                made a determination regarding an applicant for a 
                firearm permit pursuant to section 922B of title 18, 
                United States Code''; and
                    (B) by inserting after ``the system shall provide 
                such reasons to the individual,'' the following: 
                ``except for any information the disclosure of which 
                the Attorney General has determined would likely 
                compromise national security''; and
            (2) in subsection (g)--
                    (A) in the first sentence, by inserting after 
                ``subsection (g) or (n) of section 922 of title 18, 
                United States Code or State law'' the following: ``or 
                if the Attorney General has made a determination 
                pursuant to section 922A or 922B of such title,'';
                    (B) by inserting ``, except any information the 
                disclosure of which the Attorney General has determined 
                would likely compromise national security'' before the 
                period; and
                    (C) by adding at the end the following: ``Any 
                petition for review of information withheld by the 
                Attorney General under this subsection shall be made in 
                accordance with section 925A of title 18, United States 
                Code.''.
    (l) Unlawful Distribution of Explosives Based on Attorney General 
Discretionary Denial.--Section 842(d) of such title is amended--
            (1) by striking the period at the end of paragraph (9) and 
        inserting ``; or''; and
            (2) by adding at the end the following:
            ``(10) has received actual notice of the Attorney General's 
        determination made pursuant to section 843(b)(8) or (d)(2) of 
        this title.''.
    (m) Attorney General Discretionary Denial as Prohibitor.--Section 
842(i) of such title is amended--
            (1) by adding ``or'' at the end of paragraph (7); and
            (2) by inserting after paragraph (7) the following:
            ``(8) who has received actual notice of the Attorney 
        General's determination made pursuant to section 843(b)(8) or 
        (d)(2),''.
    (n) Attorney General Discretionary Denial of Federal Explosives 
Licenses and Permits.--Section 843(b) of such title is amended--
            (1) by striking ``Upon'' and inserting the following: 
        ``Except as provided in paragraph (8), on''; and
            (2) by inserting after paragraph (7) the following:
            ``(8) The Attorney General may deny the issuance of a 
        permit or license to an applicant if the Attorney General 
        determines that the applicant or a responsible person or 
        employee possessor thereof is known (or appropriately 
        suspected) to be or have been engaged in conduct constituting, 
        in preparation of, in aid of, or related to terrorism, or 
        providing material support thereof, and the Attorney General 
        has a reasonable belief that the person may use explosives in 
        connection with terrorism.''.
    (o) Attorney General Discretionary Revocation of Federal Explosives 
Licenses and Permits.--Section 843(d) of such title is amended--
            (1) by inserting ``(1)'' in the first sentence after 
        ``if''; and
            (2) by striking the period at the end of the first sentence 
        and inserting the following: ``; or (2) the Attorney General 
        determines that the licensee or holder (or any responsible 
        person or employee possessor thereof) is known (or 
        appropriately suspected) to be or have been engaged in conduct 
        constituting, in preparation for, in aid of, or related to 
        terrorism, or providing material support thereof, and that the 
        Attorney General has a reasonable belief that the person may 
        use explosives in connection with terrorism.''.
    (p) Attorney General's Ability To Withhold Information in 
Explosives License and Permit Denial and Revocation Suits.--Section 
843(e) of such title is amended--
            (1) in the first sentence of paragraph (1), by inserting 
        ``except that if the denial or revocation is based on a 
        determination under subsection (b)(8) or (d)(2), then any 
        information which the Attorney General relied on for the 
        determination may be withheld from the petitioner if the 
        Attorney General determines that disclosure of the information 
        would likely compromise national security'' before the period; 
        and
            (2) in paragraph (2), by adding at the end the following: 
        ``In responding to any petition for review of a denial or 
        revocation based on a determination under section 843(b)(8) or 
        (d)(2), the United States may submit, and the court may rely 
        on, summaries or redacted versions of documents containing 
        information the disclosure of which the Attorney General has 
        determined would likely compromise national security.''.
    (q) Ability To Withhold Information in Communications to 
Employers.--Section 843(h)(2) of such title is amended--
            (1) in subparagraph (A), by inserting ``or section 
        843(b)(1) (on grounds of terrorism) of this title,'' after 
        ``section 842(i),''; and
            (2) in subparagraph (B)--
                    (A) by inserting ``or section 843(b)(8)'' after 
                ``section 842(i)''; and
                    (B) in clause (ii), by inserting ``, except that 
                any information that the Attorney General relied on for 
                a determination pursuant to section 843(b)(8) may be 
                withheld if the Attorney General concludes that 
                disclosure of the information would likely compromise 
                national security'' before the semicolon.
    (r) Conforming Amendment to Immigration and Nationality Act.--
Section 101(a)(43)(E)(ii) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(43)(E)(ii)) is amended by striking ``or (5)'' and 
inserting ``(5), or (10)''.

TITLE IV--REPORTING OF LOST OR STOLEN FIREARMS TO STATE OR LOCAL POLICE

SEC. 401. REQUIREMENT THAT GUN OWNERS REPORT LOST OR STOLEN FIREARMS TO 
              STATE OR LOCAL POLICE.

    Section 923(g)(6) of title 18, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding after and below the end the following:
    ``(B) Each person who owns or possesses a firearm shall report the 
theft or loss of the firearm, within 48 hours after the theft or loss 
is discovered, to the appropriate local authorities.''.

                  TITLE V--CONCEALED FIREARMS PERMITS

SEC. 501. CONCEALED FIREARMS PERMITS.

    (a) In General.--Chapter 44 of title 18, United States Code, is 
amended by inserting after section 926C the following:
``Sec. 926D. Concealed firearms permits
    ``(a) In General.--Each State that allows residents of the State to 
carry concealed firearms in or affecting interstate or foreign commerce 
shall--
            ``(1) establish a process to issue permits to residents of 
        the State to carry concealed firearms in or affecting 
        interstate or foreign commerce; and
            ``(2) require that each resident of the State seeking to 
        carry a concealed firearm in or affecting interstate or foreign 
        commerce in the State obtain a permit through the process 
        established under paragraph (1).
    ``(b) Requirements.--In establishing a process to issue permits to 
carry concealed firearms under subsection (a), a State shall--
            ``(1) ensure that a local law enforcement agency 
        participates in the process; and
            ``(2) at a minimum, require that an applicant for a permit 
        to carry a concealed firearm in or affecting interstate or 
        foreign commerce--
                    ``(A) be a legal resident of the United States;
                    ``(B) be not less than 21 years of age;
                    ``(C) demonstrate good cause for requesting a 
                concealed firearm permit;
                    ``(D) demonstrate that the applicant is worthy of 
                the public trust to carry a concealed firearm in 
                public;
                    ``(E) complete a firearm safety training course 
                certified by the State; and
                    ``(F) not have been convicted of a crime of 
                violence.
    ``(c) Law Enforcement Agency Report.--If a State establishes a 
process under subsection (a) that allows for an agency other than a law 
enforcement agency to issue permits to carry concealed firearms, the 
process shall require that--
            ``(1) a local law enforcement agency submit to the agency 
        responsible for issuing permits a written report that describes 
        whether the applicant meets the standards of the State to carry 
        a concealed firearm; and
            ``(2) the agency responsible for issuing permits maintain a 
        report submitted under paragraph (1) in the file of the 
        applicant.
    ``(d) Definition.--In this section, the term `local law enforcement 
agency' means a law enforcement agency of the unit of local government 
with jurisdiction of the area in which the applicant for a permit to 
carry a concealed firearm resides.
    ``(e) Compliance.--Not later than 270 days after the date of 
enactment of this section, each State described in subsection (a) shall 
be in compliance with this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
such chapter is amended by inserting after the item relating to section 
926C the following:

``926D. Concealed firearms permits.''.
                                 <all>
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