I 

116TH CONGRESS 

1ST SESSION H. R. 2674 

To enhance safety and security at federally licensed gun shops, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 10, 2019 

Mr. MORELLE (for himself, Mr. PAYNE, Mr. HASTINGS, Ms. NORTON, Mr. 

KRISHNAMOORTHI, Ms. SCHAKOWSKY, and Mr. HIGGINS of New York) 

introduced the following bill; which was referred to the Committee on the 

Judiciary 

A BILL 

To enhance safety and security at federally licensed gun 

shops, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Gun Theft Prevention Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Gun shop security measures. 

Sec. 3. Repeal of prohibition on use of funds to implement rule requiring physical inventory by Federal firearms licensees. 

Sec. 4. Inspections. 


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Sec. 5. Employee background checks. 

Sec. 6. Gun store thefts. 

Sec. 7. Civil enforcement. 

Sec. 8. No effect on State laws governing dealing in firearms. 

Sec. 9. Repeal of prohibition on denial of Federal firearm license due to lack 

of business activity. 

Sec. 10. Repeal of limitations relating to use of firearms trace data. 

Sec. 11. Lost and stolen reporting requirement. 

Sec. 12. Report on implementation of this Act. 

Sec. 13. Deadline for issuance of final regulations. 

1 SEC. 2. GUN SHOP SECURITY MEASURES. 

2 (a) REGULATIONS.— 

3 (1) IN GENERAL.—Section 926 of title 18, 

4 United States Code, is amended by adding at the 

5 end the following: 

6 ‘‘(d) The Attorney General shall prescribe such regu7 lations as are necessary to ensure that any premises at 

8 which a licensed dealer deals in firearms are secure from 

9 theft, which shall include requiring— 

10 ‘‘(1) compliance with the security plan sub11 mitted by the licensed dealer pursuant to section 

12 923(d)(1)(G); 

13 ‘‘(2) the use of locked metal cabinets and fire14 proof safes; 

15 ‘‘(3) security systems, video monitoring, and 

16 anti-theft alarms; 

17 ‘‘(4) security gates, strong locks, and site hard18 ening; and 

19 ‘‘(5) concrete bollards and other access controls, 

20 if necessary.’’. 


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1 (2) TRANSITION RULE.—The regulations pre2 scribed under section 926(d)(1) of title 18, United 

3 States Code, shall not apply to a person who, on the 

4 date of the enactment of this Act, is a licensed deal5 er (as defined in section 921(a)(11) of such title), 

6 until the earlier of— 

7 (A) the date the person complies with sub8 section (b)(2) of this section; or 

9 (B) the end of the 1-year period that be10 gins with the date regulations are prescribed 

11 under section 926(d) of such title. 

12 (b) SECURITY PLAN SUBMISSION REQUIREMENT.— 

13 (1) IN GENERAL.—Section 923(d)(1)(G) of 

14 such title is amended by inserting ‘‘the applicant 

15 submits with the application a security plan that de16 scribes how the applicant will secure, in accordance 

17 with the regulations issued under section 926(d), the 

18 premises from which the applicant will conduct busi19 ness under the license (including in the event of a 

20 natural disaster or other emergency), and the appli21 cant certifies that, if issued such a license, the appli22 cant will comply with the plan’’ before the period. 

23 (2) TRANSITION RULE.—A person who, on the 

24 date of the enactment of this Act, is a licensed deal25 er (as defined in section 921(a)(11) of title 18, 


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1 United States Code) and whose license to deal in 

2 firearms, issued under chapter 44 of such title, will 

3 not expire before the end of the 1-year period that 

4 begins with the date regulations are prescribed 

5 under section 926(d) of such title, shall submit to 

6 the Attorney General a plan of the type described in 

7 section 923(d)(1)(G) of such title not later than the 

8 end of that 1-year period. Any plan so submitted 

9 shall be considered to be submitted pursuant to such 

10 section 923(d)(1)(G), for purposes of such sections 

11 923(g)(6)(B) and 926(d). 

12 (c) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI13 CATION REQUIREMENT.— 

14 (1) IN GENERAL.—Section 923 of title 18, 

15 United States Code, is amended by adding at the 

16 end the following: 

17 ‘‘(m)(1) Each licensed dealer shall annually certify to 

18 the Attorney General that each premises from which the 

19 licensed dealer conducts business subject to license under 

20 this chapter is in compliance with the regulations pre21 scribed under section 926(d), and include with the certifi22 cation the results of a reconciliation of the firearms inven23 tory of the licensed dealer with the firearms inventory at 

24 the time of the most recent prior certification (if any) 


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1 under this paragraph, including a report of any missing 

2 firearms. 

3 ‘‘(2) The Attorney General may impose a civil money 

4 penalty of not more than $5,000 on, and may suspend 

5 the license to deal in firearms issued under this section 

6 to, a licensed dealer who fails to comply with paragraph 

7 (1).’’. 

8 (2) TRANSITION RULE.—The amendment made 

9 by paragraph (1) of this subsection shall not apply 

10 to a person who, on the date of the enactment of 

11 this Act, is a licensed dealer (as defined in section 

12 921(a)(11) of title 18, United States Code), until 

13 the end of the 1-year period that begins with the 

14 date person complies with subsection (b)(2) of this 

15 section. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall take effect 1 year after the date of the 

18 enactment of this Act. 

19 SEC. 3. REPEAL OF PROHIBITION ON USE OF FUNDS TO IM20 PLEMENT RULE REQUIRING PHYSICAL IN21 VENTORY BY FEDERAL FIREARMS LICENS22 EES. 

23 The matter under the heading ‘‘Bureau of Alcohol, 

24 Tobacco, Firearms and Explosives—Salaries and Ex25 penses’’ in title II of division B of the Consolidated and 


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1 Further Continuing Appropriations Act, 2013 (Public 

2 Law 113–6; 127 Stat. 248) is amended by striking the 

3 5th proviso. 

4 SEC. 4. INSPECTIONS. 

5 (a) ELIMINATION OF LIMIT ON ANNUAL INSPEC6 TIONS OF LICENSEES.—Section 923(g)(1)(B)(ii) of title 

7 18, United States Code, is amended by striking ‘‘—’’ and 

8 all that follows through ‘‘(II)’’. 

9 (b) MANDATED ANNUAL INSPECTIONS OF HIGH

10 RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF

11 OTHER LICENSED DEALERS.—Section 923(g)(1)(B) of 

12 such title is amended by adding after and below the end 

13 the following flush sentence: ‘‘The Attorney General shall, 

14 without such reasonable cause or warrant, annually in15 spect or examine the inventory, records, and business 

16 premises of each licensed dealer whom the Attorney Gen17 eral regards as a high risk dealer (based on the consider18 ations used to do so as of the date of the enactment of 

19 this sentence), and triennially inspect or examine the in20 ventory, records, and business premises of each other li21 censed dealer. Within 6 months after an inspection under 

22 this subparagraph reveals a violation of this section or any 

23 regulation prescribed under this chapter, and within 6 

24 months after a security inspection conducted under para25 graph (6)(B)(i) of this subsection, the Attorney General 


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1 shall conduct an inspection to determine whether the viola2 tion identified in the preceding inspection has been 

3 cured.’’ 

4 (c) AUTHORITY TO HIRE ADDITIONAL INDUSTRY

5 OPERATION INVESTIGATORS FOR BATFE.—The Attorney 

6 General may hire 650 Industry Operation Investigators 

7 for the Bureau of Alcohol, Tobacco, Firearms and Explo8 sives, in addition to any personnel needed to carry out this 

9 Act and any Industry Operation Investigators authorized 

10 by other law. 

11 SEC. 5. EMPLOYEE BACKGROUND CHECKS. 

12 (a) REQUIREMENTS.— 

13 (1) BACKGROUND CHECK REQUIRED BEFORE

14 FIREARM POSSESSION BY DEALER EMPLOYEE.—Sec15 tion 923(g) of title 18, United States Code, is 

16 amended by adding at the end the following: 

17 ‘‘(8) A licensed dealer shall not allow an employee 

18 of the licensed dealer to possess a firearm at a premises 

19 from which the licensed dealer conducts business subject 

20 to license under this chapter unless— 

21 ‘‘(A) the licensed dealer has contacted the na22 tional instant criminal background check system es23 tablished under section 103 of the Brady Handgun 

24 Violence Prevention Act for information about 


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1 whether it would be unlawful for the individual to 

2 receive a firearm; and 

3 ‘‘(B) the system has notified the licensee that 

4 the information available to the system does not 

5 demonstrate that the receipt of a firearm by the in6 dividual would violate subsection (g) or (n) of sec7 tion 922 or State law.’’. 

8 (2) BACKGROUND CHECKS REQUIRED BEFORE

9 ISSUANCE OR RENEWAL OF DEALER LICENSE.—Sec10 tion 923(c) of such title is amended by inserting 

11 after the 1st sentence the following: ‘‘Notwith12 standing the preceding sentence, the Attorney Gen13 eral may not issue or renew a license to deal in fire14 arms unless the Attorney General has contacted the 

15 national instant criminal background check system 

16 established under section 103 of the Brady Handgun 

17 Violence Prevention Act for information about 

18 whether it would be unlawful for any employee of 

19 the applicant for the license or renewal, identified by 

20 the applicant as having the responsibility to receive 

21 a firearm, for information about whether it would be 

22 unlawful for the employee to receive a firearm, and 

23 the system has notified the Attorney General that 

24 the information available to the system does not 

25 demonstrate that the receipt of a firearm by the emVerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674

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1 ployee would violate subsection (g) or (n) of section 

2 922 or the law of the State in which the business 

3 premises of the applicant subject to the license is lo4 cated.’’. 

5 (3) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall take effect on the date that 

7 is 1 year after the date of the enactment of this Act. 

8 (b) AUTHORITY OF NICS SYSTEM TO RESPOND TO

9 LICENSED DEALER REQUEST FOR CRIMINAL BACK10 GROUND CHECK OF EMPLOYEE OR PROSPECTIVE EM11 PLOYEE.—Section 103(b) of the Brady Handgun Violence 

12 Prevention Act (34 U.S.C. 40901(b)) is amended by add13 ing at the end the following: ‘‘The Attorney General shall 

14 ensure that the system responds to any request received 

15 by the system from a licensed dealer for information on 

16 whether receipt of a firearm by an employee or prospective 

17 employee of the licensed dealer would violate such section 

18 922 or State law.’’. 

19 SEC. 6. GUN STORE THEFTS. 

20 (a) IN GENERAL.—Section 923(g)(6) of title 18, 

21 United States Code, is amended— 

22 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(B)(i) Within 30 days after the Attorney General 

25 receives a report from a licensed dealer pursuant to subVerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674

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1 paragraph (A) of this paragraph of the theft of a firearm, 

2 the Attorney General shall conduct an independent inspec3 tion of the security of the premises at which the theft oc4 curred, which may include an inspection of the measures 

5 taken to implement the security plan submitted by the li6 censed dealer pursuant to subsection (d)(1)(G). 

7 ‘‘(ii) On completion of the security inspection, the At8 torney General shall provide the licensed dealer with— 

9 ‘‘(I) a notice of any violation by the licensed 

10 dealer of any security requirements prescribed under 

11 section 926(d); and 

12 ‘‘(II) recommendations for improving security 

13 of the premises involved.’’. 

14 (b) EXEMPTION OF STOLEN FIREARMS FROM PROD15 UCT LIABILITY.—Section 4(4) of the Protection of Lawful 

16 Commerce in Arms Act (15 U.S.C. 7903(4)) is amended 

17 by inserting ‘‘, except any such firearm the theft of which 

18 is required by section 923(g)(6)(A) of such title to be re19 ported’’ before the period. 

20 SEC. 7. CIVIL ENFORCEMENT. 

21 Section 923 of title 18, United States Code, as 

22 amended by section 2(c)(1) of this Act, is amended by 

23 adding at the end the following: 

24 ‘‘(n) In the case of a licensed dealer who the Attorney 

25 General has found to be in violation of a regulation preVerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674

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1 scribed under section 926(d), to not have implemented a 

2 corrective action required by the Attorney General at the 

3 completion of a security inspection conducted under sub4 section (g)(6)(B)(i) of this section within 30 days after 

5 the date of the inspection, or to be in violation of sub6 section (g)(8) of this section— 

7 ‘‘(1) the Attorney General shall— 

8 ‘‘(A) if the violation is not a result of gross 

9 negligence by the licensed dealer— 

10 ‘‘(i) in the case of the 1st such viola11 tion of the law or regulation by the li12 censed dealer, if not preceded by a viola13 tion to which subparagraph (B) applies, 

14 transmit to the licensed dealer a written 

15 notice specifying the violation, which shall 

16 include a copy of the provision of law or 

17 regulation violated and a plan for how to 

18 cure the violation; 

19 ‘‘(ii) in the case of the 2nd such viola20 tion by the licensed dealer, if not preceded 

21 by a violation to which subparagraph (B) 

22 applies, impose a civil money penalty in an 

23 amount that is not less than $2,500 and 

24 not more than $20,000; 


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1 ‘‘(iii) in the case of the 3rd such viola2 tion by the licensed dealer, if not preceded 

3 by a violation to which subparagraph (B) 

4 applies, suspend the license to deal in fire5 arms issued to the licensed dealer under 

6 this chapter until the violation ceases; 

7 ‘‘(iv) in the case of the 4th such viola8 tion by the licensed dealer, whether or not 

9 preceded by a violation to which subpara10 graph (B) applies, revoke that license; or 

11 ‘‘(v) in the case of any such violation 

12 by the licensed dealer, if preceded by a vio13 lation to which subparagraph (B) applies, 

14 apply the penalty authorized under this 

15 subsection that is 1 level greater in sever16 ity than the level of severity of the penalty 

17 most recently applied to the licensed dealer 

18 under this subsection; or 

19 ‘‘(B) if the violation is a result of such 

20 gross negligence— 

21 ‘‘(i) in the case of the 1st such viola22 tion by the licensed dealer, impose a civil 

23 money penalty in an amount that is not 

24 less than $2,500 and not more than 

25 $20,000; 


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1 ‘‘(ii) in the case of the 2nd such viola2 tion by the licensed dealer— 

3 ‘‘(I) impose a civil money penalty 

4 in an amount equal to $20,000; or 

5 ‘‘(II) suspend the license to deal 

6 in firearms issued to the licensed deal7 er under this chapter until the viola8 tion ceases; or 

9 ‘‘(III) revoke that license; or 

10 ‘‘(iii) in the case of the 3rd or subse11 quent such violation by the licensed dealer, 

12 apply the penalty authorized under this 

13 subsection that is 1 or 2 levels greater in 

14 severity than the level of severity of the 

15 penalty most recently applied to the li16 censed dealer under this subsection; and 

17 ‘‘(2) in the case of any such violation, if the At18 torney General finds that the nature of the violation 

19 indicates that the continued operation of a firearms 

20 business by the licensed dealer presents an imminent 

21 risk to public safety, the Attorney General shall, not22 withstanding paragraph (1), immediately suspend 

23 the license to deal in firearm issued to the licensed 

24 dealer under this chapter and secure the firearms inVerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674

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1 ventory of the licensed dealer, until the violation 

2 ceases.’’. 

3 SEC. 8. NO EFFECT ON STATE LAWS GOVERNING DEALING 

4 IN FIREARMS. 

5 Nothing in this Act shall be interpreted to preclude 

6 a State from imposing or enforcing any requirement relat7 ing to dealing in firearms (as defined in section 921(a)(3) 

8 of title 18, United States Code). 

9 SEC. 9. REPEAL OF PROHIBITION ON DENIAL OF FEDERAL 

10 FIREARM LICENSE DUE TO LACK OF BUSI11 NESS ACTIVITY. 

12 The matter under the heading ‘‘Bureau of Alcohol, 

13 Tobacco, Firearms and Explosives—Salaries and Ex14 penses’’ in title II of division B of the Consolidated and 

15 Further Continuing Appropriations Act, 2013 (18 U.S.C. 

16 923 note; Public Law 113–6; 127 Stat. 248) is amended 

17 by striking the 6th proviso. 

18 SEC. 10. REPEAL OF LIMITATIONS RELATING TO USE OF 

19 FIREARMS TRACE DATA. 

20 (a) The matter under the heading ‘‘Bureau of Alco21 hol, Tobacco, Firearms and Explosives—Salaries and Ex22 penses’’ in title I of division B of the Consolidated and 

23 Further Continuing Appropriations Act, 2012 (18 U.S.C. 

24 923 note; Public Law 112–55; 125 Stat. 609–610) is 

25 amended by striking the 6th proviso. 


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1 (b) The 6th proviso under the heading ‘‘Bureau of 

2 Alcohol, Tobacco, Firearms and Explosives—Salaries and 

3 Expenses’’ in title II of division B of the Consolidated Ap4 propriations Act, 2010 (18 U.S.C. 923 note; Public Law 

5 111–117; 123 Stat. 3128–3129) is amended by striking 

6 ‘‘beginning in fiscal year 2010 and thereafter’’ and insert7 ing ‘‘in fiscal year 2010’’. 

8 (c) The 6th proviso under the heading ‘‘Bureau of 

9 Alcohol, Tobacco, Firearms and Explosives—Salaries and 

10 Expenses’’ in title II of division B of the Omnibus Appro11 priations Act, 2009 (18 U.S.C. 923 note; Public Law 111– 

12 8; 123 Stat. 574–576) is amended by striking ‘‘beginning 

13 in fiscal year 2009 and thereafter’’ and inserting ‘‘in fiscal 

14 year 2009’’. 

15 (d) The 6th proviso under the heading ‘‘Bureau of 

16 Alcohol, Tobacco, Firearms and Explosives—Salaries and 

17 Expenses’’ in title II of division B of the Consolidated Ap18 propriations Act, 2008 (18 U.S.C. 923 note; Public Law 

19 110–161; 121 Stat. 1903–1904) is amended by striking 

20 ‘‘beginning in fiscal year 2008 and thereafter’’ and insert21 ing ‘‘in fiscal year 2008’’. 

22 (e) The 6th proviso under the heading ‘‘Bureau of 

23 Alcohol, Tobacco, Firearms and Explosives—Salaries and 

24 Expenses’’ in title I of the Science, State, Justice, Com25 merce, and Related Agencies Appropriations Act, 2006 


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1 (18 U.S.C. 923 note; Public Law 109–108; 119 Stat. 

2 2295–2296) is amended by striking ‘‘with respect to any 

3 fiscal year’’. 

4 (f) The 6th proviso under the heading in title I of 

5 division B of the Consolidated Appropriations Act, 2005 

6 (18 U.S.C. 923 note; Public Law 108–447; 118 Stat. 

7 2859–2860) is amended by striking ‘‘with respect to any 

8 fiscal year’’. 

9 (g) Section 644 of title VI of division J of the Con10 solidated Appropriations Resolution, 2003 (5 U.S.C. 552 

11 note; Public Law 108–7; 117 Stat. 473–474) is amended 

12 by striking ‘‘or any other Act with respect to any fiscal 

13 year’’. 

14 SEC. 11. LOST AND STOLEN REPORTING REQUIREMENT. 

15 (a) IN GENERAL.—Section 922 of title 18, United 

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘(aa) The owner of a firearm shall report the theft 

19 or loss of the firearm, within 30 days after the owner be20 comes aware of the theft or loss, to the Attorney General 

21 and to the appropriate local authorities.’’. 

22 (b) CIVIL PENALTY.—Section 924 of such title is 

23 amended by adding at the end the following: 

24 ‘‘(q) Whoever violates section 922(aa) shall be fined 

25 not more than $1,000 in a civil proceeding.’’. 


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1 SEC. 12. REPORT ON IMPLEMENTATION OF THIS ACT. 

2 Within 2 years after the date of the enactment of this 

3 Act, the Attorney General shall submit to the Congress 

4 a written report on the implementation of this Act and 

5 the amendments made by this Act, including any remain6 ing steps that are necessary to complete the implementa7 tion, which shall also identify any additional resources that 

8 are required to conduct regular inspections and to ensure 

9 that this Act and the amendments made by this Act are 

10 enforced against noncompliant firearm dealers in a timely 

11 manner. 

12 SEC. 13. DEADLINE FOR ISSUANCE OF FINAL REGULA13 TIONS. 

14 Within 1 year after the date of the enactment of this 

15 Act, the Attorney shall prescribe, in final form, all regula16 tions required to carry out this Act and the amendments 

17 made by this Act. 

Æ 


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