I 

117TH CONGRESS 

1ST SESSION H. R. 6225 

To modernize the business of selling firearms. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 9, 2021 

Ms. KELLY of Illinois (for herself, Mr. CICILLINE, Ms. LEE of California, Mr. 

PASCRELL, Mr. LANGEVIN, Mr. MFUME, Mr. MORELLE, and Mr. PANETTA) introduced the following bill; which was referred to the Committee on the Judiciary 

A BILL 

To modernize the business of selling firearms. 

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. 

4 This Act may be cited as the ‘‘Federal Firearm Li5 censee Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) A growing body of evidence demonstrates 

9 that gun dealers’ sales practices affect the prob10 ability of guns getting to criminals and that policies 


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1 designed to hold gun sellers accountable can curtail 

2 the diversion of guns to criminals. 

3 (2) Federal laws governing firearm dealers have 

4 not been updated in over 30 years, contain safe5 guards that protect dealers who engage in illegal 

6 practices from adverse enforcement action, frustrate 

7 law enforcement efforts to curb gun trafficking and 

8 violence and are, thus, inadequate to meet the reali9 ties of the twenty-first century. 

10 (3) The Tiahrt Amendments, for one, severely 

11 limit the authority of the Bureau of Alcohol, To12 bacco, Firearms and Explosives (ATF) to disclose 

13 crime gun trace data to the public, prevent the col14 lection of valuable information, and the establish15 ment of effective policies to prevent illegal guns from 

16 being used in crimes and impede enforcement of the 

17 gun laws by requiring most background check 

18 records to be destroyed within 24 hours, and by bar19 ring the Government from requiring annual inven20 tory audits by owners of gun shops. Repealing the 

21 Tiahrt Amendments would support law enforcement 

22 efforts and give the public vital information needed 

23 to craft the most effective policies against illegal 

24 guns. 


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1 (4) Additionally, Federal law imposes no re2 quirements that dealers physically secure their high3 ly valuable and lethal inventory. The number of gun 

4 thefts from licensed gun dealers has increased more 

5 than the number from any other source. Between 

6 2013 and 2017, the number of firearms stolen in 

7 gun-dealer burglaries more than doubled and the 

8 number of firearms stolen in gun-dealer robberies 

9 tripled. 

10 SEC. 3. DEFINITIONS. 

11 Section 921(a) of title 18, United States Code, is 

12 amended by adding at the end the following: 

13 ‘‘(36) The term ‘facilitator’ means any person en14 gaged in the business of hosting a commercial marketplace 

15 in which offers for firearm sales, purchases, or other 

16 transfers are allowed to be made, except that such a per17 son shall not be considered to be a facilitator with respect 

18 to any transaction that is made through the use of a 

19 website or mobile application owned or operated by the 

20 person if the transaction violates the terms of service of 

21 the website or mobile application and the person has made 

22 a good faith effort to enforce the terms of service by, at 

23 a minimum, auditing firearms transactions on a quarterly 

24 basis to ensure compliance with this chapter. 


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1 ‘‘(37) The term ‘occasional’ means, with respect to 

2 transactions, fewer than 5 transactions in a 12-month pe3 riod. 

4 ‘‘(38) The term ‘personal collection’ includes any fire5 arm obtained only for the personal use of an individual 

6 and not for the purpose of selling or trading, except that 

7 a firearm obtained through inheritance shall not be consid8 ered part of a personal collection until the firearm has 

9 been possessed for 1 year. 

10 ‘‘(39) The term ‘business inventory firearm’ means, 

11 with respect to a person, a firearm required by law to be 

12 recorded in the acquisition and disposition logs of any fire13 arms business of the person. 

14 ‘‘(40)(A) The term ‘frame or receiver’— 

15 ‘‘(i) means a part of a weapon that provides or 

16 is intended to provide the housing or structure to 

17 hold or integrate 1 or more fire control components, 

18 even if pins or other attachments are required to 

19 connect those components to the housing or struc20 ture; and 

21 ‘‘(ii) includes a blank, casting, or machined 

22 body, that requires modification (including machin23 ing, drilling, or molding) to be used as part of a 

24 functional firearm, and that is designed and in25 tended to be used in the assembly of a functional 


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1 firearm, unless the blank, casting, or machined body 

2 has had— 

3 ‘‘(I) its size or external shape altered solely 

4 to facilitate transportation or storage; or 

5 ‘‘(II) solely its chemical composition al6 tered. 

7 ‘‘(B) For purposes of subparagraph (A)(i), in the 

8 case of a weapon with more than 1 part that provides the 

9 housing or a structure designed to hold or integrate 1 or 

10 more fire control components, each such part shall be con11 sidered a frame or receiver, unless the Attorney General 

12 has provided otherwise by regulation with respect to the 

13 specific make and model of weapon on or before January 

14 1, 2022. 

15 ‘‘(C) For purposes of this paragraph, the term ‘fire 

16 control component’— 

17 ‘‘(i) means a component necessary for a firearm 

18 to initiate or complete the firing sequence; and 

19 ‘‘(ii) includes a hammer, bolt, breechblock, cyl20 inder, trigger, mechanism, firing pin, striker, and 

21 slide rails.’’. 

22 SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION. 

23 Section 922 of title 18, United States Code, is 

24 amended by striking subsection (s). 


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1 SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES. 

2 (a) SECURITY PLAN SUBMISSION REQUIREMENT.— 

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

4 18, United States Code, is amended by striking the 

5 period at the end and inserting ‘‘, and the applicant 

6 submits with the application a security plan that de7 scribes how the applicant will secure, in accordance 

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

9 premises from which the applicant will conduct busi10 ness under the license (including in the event of a 

11 natural disaster or other emergency), and the appli12 cant certifies that, if issued such a license, the appli13 cant will comply with the plan; and’’. 

14 (2) WRITTEN APPROVAL REQUIRED BEFORE LI15 CENSE RENEWAL.—Section 923(d)(1) of such title is 

16 amended— 

17 (A) in subparagraph (F)(iii), by striking 

18 ‘‘and’’ after the semicolon; and 

19 (B) by adding at the end the following: 

20 ‘‘(H) in the case of an application to renew a 

21 license to deal in firearms— 

22 ‘‘(i) the license is not suspended; 

23 ‘‘(ii) the applicant has not had a license 

24 issued under this chapter revoked; and 

25 ‘‘(iii) the Attorney General has inspected 

26 the premises and provided written approval of 


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1 the security plan submitted by the applicant 

2 under subparagraph (G).’’. 

3 (3) APPLICABILITY.—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 title 18, 

6 United States Code) and whose license to deal in 

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

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

9 begins with the date regulations are prescribed 

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

11 the Attorney General a plan of the type described in 

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

13 end of that period. Any plan so submitted shall be 

14 considered to be submitted pursuant to such section 

15 923(d)(1)(G). 

16 (b) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI17 CATION REQUIREMENT.— 

18 (1) IN GENERAL.—Section 923 of such title is 

19 amended by adding at the end the following: 

20 ‘‘(m)(1) Each licensed manufacturer, licensed im21 porter, and licensed dealer shall annually certify to the At22 torney General that each premises from which the licensee 

23 conducts business subject to license under this chapter is 

24 in compliance with the regulations prescribed under sec25 tion 926(d), and include with the certification the results 


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1 of a reconciliation of the resale firearms then in the busi2 ness inventory of the licensee against the resale firearms 

3 in the business inventory of the licensee at the time of 

4 the most recent prior certification (if any) under this para5 graph, and all dispositions and acquisitions of resale fire6 arms in the year covered by the certification, identifying 

7 and reporting any missing firearm. 

8 ‘‘(2) The Attorney General shall impose a civil money 

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

10 the license issued under this section to, a licensee who fails 

11 to comply with paragraph (1).’’. 

12 (2) APPLICABILITY.—The amendment made by 

13 paragraph (1) of this subsection shall not apply to 

14 a person who, on the date of the enactment of this 

15 Act, is a licensee referred to in section 923(m) of 

16 title 18, United States Code, until the end of the 1- 

17 year period that begins with the date the person 

18 complies with subsection (a)(2) of this section. 

19 (c) REGULATIONS.— 

20 (1) IN GENERAL.—Section 926 of such title is 

21 amended by adding at the end the following: 

22 ‘‘(d) The Attorney General shall prescribe such regu23 lations as are necessary to ensure that any premises at 

24 which a licensee referred to in section 923(m) conducts 


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1 business is secure from theft, which shall include requir2 ing— 

3 ‘‘(1) compliance with the security plan sub4 mitted by the licensee pursuant to section 

5 923(d)(1)(G); 

6 ‘‘(2) the use of locked metal cabinets and fire7 proof safes; 

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

9 antitheft alarms; 

10 ‘‘(4) security gates, strong locks, and site hard11 ening; 

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

13 if necessary; and 

14 ‘‘(6) the use of any other security-enhancing 

15 features appropriate for the licensee’s specific cir16 cumstances.’’. 

17 (2) APPLICABILITY.—The regulations pre18 scribed under section 926(d)(1) of such title shall 

19 not apply to a person who, on the date of the enact20 ment of this Act, is a licensee referred to in section 

21 923(m) of such title, until the earlier of— 

22 (A) the date the person complies with sub23 section (b)(2) of this section; or 


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1 (B) the end of the 1-year period that be2 gins with the date regulations are prescribed 

3 under section 926(d) of such title. 

4 SEC. 6. BUSINESS INVENTORY FIREARMS. 

5 (a) REQUIREMENT TO TRANSFER FIREARM IN PER6 SONAL COLLECTION TO BUSINESS INVENTORY BEFORE

7 DISPOSITION.—Section 923(c) of title 18, United States 

8 Code, is amended— 

9 (1) by striking the 2nd sentence and inserting 

10 the following: ‘‘Nothing in this chapter shall be con11 strued to prohibit a licensed manufacturer, licensed 

12 importer, or licensed dealer from maintaining a per13 sonal collection of firearms.’’; 

14 (2) by striking the 3rd sentence; and 

15 (3) by adding at the end the following: ‘‘Any 

16 firearm disposed of by a licensee shall be from the 

17 business inventory of the licensee.’’. 

18 (b) LICENSEE FIREARMS INVENTORY.—Section 

19 923(g) of such title is amended by adding at the end the 

20 following: 

21 ‘‘(8) Each licensee shall conduct a quarterly physical 

22 check of the firearms inventory of the business of the li23 censee licensed under this chapter and report any lost, sto24 len, or unaccounted for firearm to the Attorney General 

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1 lations which shall be prescribed by the Attorney General 

2 and shall require, at a minimum, the recording of the date 

3 of receipt of the firearm, the name, address, and license 

4 number, if applicable, of the person from whom the fire5 arm was received, the name of the manufacturer and, if 

6 applicable, importer of the firearm, the model, serial num7 ber, type, and caliber or gauge of the firearm, and the 

8 date of the sale or other disposition of the firearm. This 

9 chapter shall not be interpreted to prohibit the Attorney 

10 General from, at any time, requiring the regular or one11 time submission of the inventory records of a licensee to 

12 ensure that the licensee is in compliance with this chap13 ter.’’. 

14 (c) REPEAL OF LIMITATIONS ON IMPOSITION OF RE15 QUIREMENT THAT FIREARMS DEALERS CONDUCT PHYS16 ICAL CHECK OF FIREARMS INVENTORY.— 

17 (1) The 5th proviso under the heading ‘‘Bureau 

18 of Alcohol, Tobacco, Firearms and Explosives—Sala19 ries and Expenses’’ in title II of division B of the 

20 Consolidated and Further Continuing Appropria21 tions Act, 2013 (18 U.S.C. 923 note; Public Law 

22 113–6; 127 Stat. 248) is amended by striking ‘‘and 

23 any fiscal year thereafter’’. 

24 (2) The matter under the heading ‘‘Bureau of 

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1 ries and Expenses’’ in title I of division B of the 

2 Consolidated and Further Continuing Appropria3 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

4 112–55; 125 Stat. 609–610) is amended by striking 

5 the 7th proviso. 

6 (3) The matter under the heading ‘‘Bureau of 

7 Alcohol, Tobacco, Firearms and Explosives—Sala8 ries and Expenses’’ in title II of Division B of the 

9 Consolidated Appropriations Act of 2010 (18 U.S.C. 

10 923 note; Public Law 111–117; 123 Stat. 3128) is 

11 amended by striking ‘‘or any other Act’’ in the 7th 

12 proviso. 

13 (4) The matter under the heading ‘‘Bureau of 

14 Alcohol, Tobacco, Firearms and Explosives—Sala15 ries and Expenses’’ in title II of Division B of the 

16 Omnibus Appropriations Act of 2009 (18 U.S.C. 

17 923 note; Public Law 111–8; 123 Stat. 574) is 

18 amended by striking ‘‘or any other Act’’ in the 7th 

19 proviso. 

20 (5) The matter under the heading ‘‘Bureau of 

21 Alcohol, Tobacco, Firearms and Explosives—Sala22 ries and Expenses’’ in title II of Division B of the 

23 Consolidated Appropriations Act of 2008 (18 U.S.C. 

24 923 note; Public Law 110–161; 121 Stat. 1903) is 


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1 amended by striking ‘‘or any other Act’’ in the 7th 

2 proviso. 

3 (6) The matter under the heading ‘‘Bureau of 

4 Alcohol, Tobacco, Firearms and Explosives—Sala5 ries and Expenses’’ in title I of the Science, State, 

6 Justice, Commerce And Related Agencies Appropria7 tions Act of 2006 (18 U.S.C. 923 note; Public Law 

8 109–108; 119 Stat. 2295) is amended by striking 

9 ‘‘or any other Act’’ in the 7th proviso. 

10 (7) The matter under the heading ‘‘Bureau of 

11 Alcohol, Tobacco, Firearms and Explosives—Sala12 ries and Expenses’’ in title I of Division B of the 

13 Consolidated and Further Continuing Appropria14 tions Act, 2005 (18 U.S.C. 923 note; Public Law 

15 108–447; 118 Stat. 2859–2860) is amended by 

16 striking ‘‘or any other Act’’ in the 7th proviso. 

17 (8) The matter under the heading ‘‘Bureau of 

18 Alcohol, Tobacco, Firearms and Explosives—Sala19 ries and Expenses’’ in title I of Division B of the 

20 Consolidated and Further Continuing Appropria21 tions Act, 2004 (18 U.S.C. 923 note; Public Law 

22 108–199; 1185 Stat. 53) is amended by striking ‘‘or 

23 any other Act’’ in the 7th proviso. 


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1 SEC. 7. ELECTRONIC RECORDS. 

2 (a) RECORDS RETENTION AND SUBMISSION.—Sec3 tion 923(g) of title 18, United States Code, is amended— 

4 (1) in paragraph (1)(A)— 

5 (A) in the 1st sentence, by inserting ‘‘, ex6 cept that, notwithstanding any other provision 

7 of law, as of the effective date of the Federal 

8 Firearm Licensee Act, records prepared by li9 censees under this chapter of the sale or other 

10 disposition of firearms, including each firearms 

11 transaction record, and the corresponding 

12 record of receipt of such firearms, shall be re13 tained at the business premises readily acces14 sible for inspection under this chapter until the 

15 business is discontinued’’ before the period; and 

16 (B) by striking the 2nd sentence; 

17 (2) in paragraph (5)(A), by inserting ‘‘or elec18 tronically as may be’’ after ‘‘submit on a form’’; and 

19 (3) in paragraph (7), by inserting ‘‘, electroni20 cally,’’ after ‘‘orally’’. 

21 (b) RECORDS DATABASES.—Section 923(g) of such 

22 title is further amended by adding at the end the fol23 lowing: 

24 ‘‘(9)(A) Within 3 years after the date of enactment 

25 of this paragraph, the National Tracing Center of the Bu26 reau of Alcohol, Tobacco, Firearms and Explosives shall 


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1 establish and maintain electronic, searchable databases of 

2 all records regarding the importation, production, ship3 ment, receipt, sale, or other disposition of firearms re4 quired to be submitted by licensees to the Attorney Gen5 eral under this chapter. 

6 ‘‘(B) Each licensee under this chapter may provide 

7 the National Tracing Center with electronic access, con8 sistent with the requirements of this paragraph, to all 

9 records within the possession of the licensee that are re10 quired to be kept under this chapter. 

11 ‘‘(C) The National Tracing Center— 

12 ‘‘(i) shall have remote access to query, search, 

13 or otherwise access the electronic databases de14 scribed in this paragraph; and 

15 ‘‘(ii) with the permission of a State, or political 

16 subdivision of a State, may query, search, or other17 wise access the databases of the firearms registra18 tion system or pawnbroker records system of the 

19 State or political subdivision. 

20 ‘‘(D) The National Tracing Center may query, 

21 search, or otherwise access the electronic databases de22 scribed in this paragraph only to obtain information re23 lated to any Federal, State, local, tribal, or foreign crimi24 nal investigation. 


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1 ‘‘(E) The databases established under this para2 graph— 

3 ‘‘(i) shall be electronically searchable by date of 

4 disposition, license number, and the information 

5 identified on each firearm or other firearm 

6 descriptor, including the manufacturer, importer, 

7 model, serial number, type, and caliber or gauge; 

8 ‘‘(ii) shall not be electronically searchable by 

9 the personally identifiable information of any indi10 vidual, without a warrant authorizing such a search; 

11 and 

12 ‘‘(iii) shall include in search results the entire 

13 contents of the relevant records kept by the li14 censee.’’. 

15 (c) VIDEO RECORDINGS OF SALES AND TRANS16 FERS.—Section 923(g) of such title is further amended 

17 by adding to the end the following: 

18 ‘‘(10) In accordance with regulations promulgated by 

19 the Attorney General, each licensed dealer operating a lo20 cation at which firearms are sold to a person not licensed 

21 under this chapter shall— 

22 ‘‘(A) maintain video surveillance of all areas 

23 within each premises where firearms in the business 

24 inventory of the licensee are sold or transferred; 


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1 ‘‘(B) retain records of the surveillance, includ2 ing any sound recording obtained from the surveil3 lance, for a period of not less than 90 days; and 

4 ‘‘(C) post a sign in a conspicuous place and at 

5 each public entrance to the retail location, in block 

6 letters not less than 1 inch in height, stating that 

7 the premises are under video surveillance.’’. 

8 (d) INCREASED PENALTIES FOR LICENSEE VIOLA9 TIONS RELATING TO ACQUISITION AND DISPOSITION

10 RECORDS.—Section 924(a)(3) of such title is amended— 

11 (1) in the matter following subparagraph (B), 

12 by striking ‘‘one year’’ and inserting ‘‘5 years’’; and 

13 (2) by adding at the end the following: ‘‘If the 

14 conduct described in subparagraph (A) or (B) is in 

15 relation to an offense under subsection (a)(6) or (d) 

16 of section 922, the licensed dealer, licensed importer, 

17 licensed manufacturer, licensed collector, or licensed 

18 facilitator shall be fined under this title, imprisoned 

19 not more than 10 years, or both.’’. 

20 (e) ELIMINATION OF LIMITATION ON CENTRALIZING

21 RECORDS.—Section 926(a) of such title is amended in the 

22 matter following paragraph (3) by striking ‘‘records re23 quired to be maintained under this chapter or any portion 

24 of the contents of such records, be recorded at or trans25 ferred to a facility owned, managed, or controlled by the 


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1 United States or any State or any political subdivision 

2 thereof, nor that.’’. 

3 (f) ELECTRONIC RECORDKEEPING ADOPTION AND

4 IMPLEMENTATION.—Section 926 of such title is further 

5 amended by adding at the end the following: 

6 ‘‘(e) The Attorney General— 

7 ‘‘(1) shall facilitate and incentivize licensee con8 version to, and adoption of, electronic recordkeeping 

9 solutions that enable electronic completion and sub10 mission to the Attorney General of all records re11 quired to be maintained under this chapter; 

12 ‘‘(2) shall facilitate digital capture of dealer 

13 paper records, the integration and indexing of data 

14 onto a platform accessible by law enforcement au15 thorities for purposes of investigating a violent crime 

16 or crime gun trace; 

17 ‘‘(3) shall facilitate remote access to electronic 

18 records of licensed dealers by law enforcement au19 thorities for purposes of investigating a violent crime 

20 or crime gun trace, and dealer access to only their 

21 own records; and 

22 ‘‘(4) shall not remotely access or search elec23 tronic records of licensed dealers without a warrant 

24 authorizing such a search.’’. 


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1 SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS. 

2 Section 922(t)(1)(B)(ii) of title 18, United States 

3 Code, is amended by adding at the end, before the semi4 colon, the following: ‘‘, if the licensee notifies the Attorney 

5 General that such firearm has been transferred to such 

6 person no later than the close of business on the day that 

7 the firearm is transferred’’. 

8 SEC. 9. MULTIPLE FIREARM SALES RECORDS AND RE9 PORTS. 

10 (a) EXPANDING REPORTING REQUIREMENT TO CER11 TAIN LONG GUNS.—Section 923(g)(3)(A) of title 18, 

12 United States Code, is amended— 

13 (1) by striking ‘‘pistols, or revolvers, or any 

14 combination of pistols and revolvers’’ and inserting 

15 ‘‘pistols, revolvers, semiautomatic rifles or shotguns, 

16 or rifles or shotguns capable of accepting a high ca17 pacity magazine, or any combination of such weap18 ons’’; and 

19 (2) by inserting after the 1st sentence the fol20 lowing: ‘‘In the preceding sentence, the term ‘high 

21 capacity magazine’ means a magazine capable of 

22 holding more than 10 rounds of ammunition, and in23 cludes magazines that may be readily converted to 

24 hold more than 10 rounds of ammunition.’’. 


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1 (b) REQUIREMENT TO RETAIN INSTANT CRIMINAL

2 BACKGROUND CHECK RECORDS FOR 90 BUSINESS

3 DAYS.—Section 922(t)(2)(C) of such title is amended— 

4 (1) by striking ‘‘destroy’’ and inserting ‘‘retain 

5 for 90 business days’’; 

6 (2) by striking ‘‘(other than the identifying 

7 number and the date the number was assigned)’’; 

8 and 

9 (3) by inserting ‘‘solely for purposes related to 

10 discovering misuse or avoidance of the national in11 stant criminal background check system or ensuring 

12 its proper operation’’ before the period at the end. 

13 (c) ATTORNEY GENERAL REPORTS OF MULTIPLE

14 SALES BY NON-LICENSEES.—Section 923(g)(3) of such 

15 title is amended— 

16 (1) by inserting after subparagraph (A) the fol17 lowing: 

18 ‘‘(B) The Attorney General shall prepare a report of 

19 multiple dispositions of firearms to persons not licensed 

20 under this chapter, which shall include the names and 

21 identifying information of transferees appearing in the 

22 records retained pursuant to section 922(t)(2)(C) on 2 or 

23 more occasions in any period of 5 consecutive business 

24 days. The report shall be prepared on a form substantially 

25 similar to the form created pursuant to subparagraph (A) 


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1 and include the names and addresses of the licensees who 

2 requested the background checks pursuant to subsection 

3 (t). The Attorney General shall forward the report to the 

4 office designated pursuant to subparagraph (A) and to the 

5 departments of State police or State law enforcement 

6 agencies of the State or local law enforcement agencies 

7 of the local jurisdictions in which the sales or other dis8 positions took place, not later than the close of business 

9 on the date of the most recent such sale or other disposi10 tion.’’; and 

11 (2) by redesignating subparagraph (B) as sub12 paragraph (C). 

13 (d) RECORDS RETENTION TO INVESTIGATE CRIME

14 GUNS.—Section 923(g)(3)(C) of such title as redesignated 

15 by subsection (c)(2) of this section, is further amended— 

16 (1) by inserting ‘‘a firearm involved in a crime 

17 or’’ after ‘‘Except in the case of forms and contents 

18 thereof regarding’’; 

19 (2) by striking ‘‘, and shall destroy each such 

20 form and any record of the contents thereof no more 

21 than 20 days from the date such form is received’’ 

22 and inserting ‘‘and shall retain each such form and 

23 any record of the contents of the form for 180 days 

24 after the date the form is received’’; and 

25 (3) by striking the 2nd sentence. 


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1 SEC. 10. SAFETY DEVICES AND WARNINGS TO PUR2 CHASERS. 

3 Section 922(z) of title 18, United States Code, is 

4 amended— 

5 (1) by inserting ‘‘AND WARNINGS TO PUR6 CHASERS’’ after ‘‘SECURE GUN STORAGE OR SAFE7 TY DEVICE’’; 

8 (2) by striking ‘‘handgun’’ each place it appears 

9 and inserting ‘‘firearm’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(4) WARNINGS TO PURCHASERS.—All licensed 

12 dealers operating a physical retail location shall post 

13 conspicuously within the licensed premises all warn14 ings required to be provided to firearms purchasers 

15 under applicable State and local law. The Attorney 

16 General shall develop materials regarding suicide 

17 prevention, securing firearms from loss, theft, or ac18 cess by a minor or prohibited person, and straw pur19 chasing, and provide the materials to licensed deal20 ers who shall disseminate the materials on transfer 

21 of a firearm to a person not licensed under this 

22 chapter.’’. 

23 SEC. 11. INSPECTIONS. 

24 (a) MANDATED ANNUAL INSPECTIONS OF HIGH

25 RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF

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


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

2 the following flush sentence: ‘‘Not less frequently than an3 nually, the Attorney General shall inspect or examine the 

4 inventory, records, and business premises of each licensed 

5 dealer whom the Attorney General determines to be a high 

6 risk dealer (based on considerations that shall include 

7 dealers who have reported a lost or stolen firearm within 

8 the preceding 5 years, were issued a report of violation, 

9 received a warning letter, or been the subject of a warning 

10 conference, or, within the preceding year, to whom were 

11 traced multiple firearms used in a crime under Federal, 

12 State, or local law within 3 years after sale by the dealer) 

13 and may appoint a special master to ensure that such 

14 dealers comply with all applicable firearm sales laws. The 

15 special master may use in-store observation, monitor 

16 records, conduct random and repeated sales integrity 

17 tests, and design and offer instructional programs pro18 viding best practices sales training to all employees in19 volved in firearms sales until the special master certifies 

20 that the dealer has complied with all applicable firearms 

21 sales laws for 3 consecutive years. Not less frequently than 

22 every 5 years, the Attorney General shall inspect or exam23 ine the inventory, records, and business premises of each 

24 other licensed dealer. Within 6 months after such an in25 spection reveals a violation of this section or any regulaVerDate Sep 11 2014 17:18 Dec 27, 2021 Jkt 029200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H6225.IH H6225

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1 tion prescribed under this chapter, and within 6 months 

2 after a security inspection conducted under paragraph 

3 (6)(B)(i) of this subsection, the Attorney General shall 

4 conduct an inspection to determine whether the violation 

5 identified in the preceding inspection has been cured.’’. 

6 (b) ELIMINATION OF LIMIT ON INSPECTION OF LI7 CENSEE RECORDS.—Section 923(g)(1)(B)(ii) of such title 

8 is amended— 

9 (1) by striking ‘‘—’’ and all that follows 

10 through ‘‘(II)’’; and 

11 (2) by striking ‘‘with respect to records relating 

12 to a firearm involved in a criminal investigation that 

13 is traced to the licensee’’. 

14 (c) MANDATED SECURITY INSPECTION OF DEALERS

15 REPORTING LOST OR STOLEN FIREARMS.—Section 

16 923(g)(6) of such title is amended— 

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

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

19 ‘‘(B)(i) After the Attorney General receives such a 

20 report from a licensed dealer of the theft of a firearm, 

21 the Attorney General shall conduct an independent inspec22 tion of the security of the premises at which the theft oc23 curred, which shall include an inspection of the measures 

24 taken to implement the security plan submitted by the li25 censed dealer pursuant to subsection (d)(1)(G). 


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1 ‘‘(ii) On completion of the security inspection, the At2 torney General shall provide the licensed dealer with— 

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

4 dealer of any security requirements prescribed under 

5 section 926(d); and 

6 ‘‘(II) recommendations for improving security 

7 of the premises involved.’’. 

8 (d) ELIMINATION OF LIMIT ON INSPECTION OF

9 OTHER PREMISES.—Section 923(j) of such title is amend10 ed by striking the 6th sentence. 

11 SEC. 12. AUTHORITY WITH REGARDS TO LICENSE 

12 ISSUANCE AND RENEWAL. 

13 (a) DENIAL AUTHORITY.—Section 923 of title 18, 

14 United States Code, is amended— 

15 (1) in subsection (c)— 

16 (A) by inserting ‘‘(1)’’ before ‘‘Upon’’; 

17 (B) in the first sentence, by inserting ‘‘, 

18 subject to paragraph (2),’’ after ‘‘Attorney Gen19 eral shall’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(2) The Attorney General shall deny an application 

22 submitted under subsection (a) or (b) if the Attorney Gen23 eral determines— 

24 ‘‘(A) issuing the license would pose a danger to 

25 public safety; or 


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1 ‘‘(B) that the applicant— 

2 ‘‘(i) is not likely to comply with the law; or 

3 ‘‘(ii) is otherwise not suitable to be issued 

4 a license.’’; and 

5 (2) in subsection (d)(1)— 

6 (A) in the first sentence, by inserting ‘‘and 

7 renewals thereof’’ after ‘‘this section’’; 

8 (B) in the matter preceding subparagraph 

9 (A), by inserting ‘‘, subject to subsection 

10 (c)(2),’’ after ‘‘shall’’; 

11 (C) in subparagraph (C), by striking ‘‘not 

12 willfully violated’’ and inserting ‘‘no uncured 

13 violations’’; and 

14 (D) in subparagraph (F)— 

15 (i) in clause (ii)(II), by striking ‘‘and’’ 

16 at the end; and 

17 (ii) by adding at the end the fol18 lowing: 

19 ‘‘(iv) all employees employed in the busi20 ness will be at least the minimum age at which 

21 individuals may possess a firearm in the locality 

22 in which the business will be conducted and are 

23 not prohibited from transporting, shipping, or 

24 receiving firearms or ammunition in interstate 


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1 or foreign commerce by subsection (g) or (n) of 

2 section 922;’’. 

3 (b) AUTHORITY TO REVOKE OR SUSPEND LI4 CENSES.—Section 923 of such title is amended— 

5 (1) in subsection (e), by striking ‘‘revoke’’ and 

6 inserting ‘‘revoke or suspend’’; and 

7 (2) in subsection (f)— 

8 (A) in paragraph (1)— 

9 (i) by striking all instances of ‘‘re10 voked’’ and inserting ‘‘revoked or sus11 pended’’; and 

12 (ii) by striking all instances of ‘‘rev13 ocation’’ and inserting ‘‘revocation or sus14 pension’’; and 

15 (B) in paragraph (2)— 

16 (i) by striking ‘‘, or revokes’’ and in17 serting ‘‘revokes, or suspends’’; and 

18 (ii) by striking ‘‘or revocation’’ and 

19 inserting ‘‘, revocation, or suspension’’; 

20 and 

21 (C) in paragraph (3)— 

22 (i) by striking ‘‘or revoke’’ and insert23 ing ‘‘or revoke or suspend’’; 


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1 (ii) by striking ‘‘or revocation’’ and 

2 inserting ‘‘, revocation, or suspension’’; 

3 and 

4 (iii) by striking ‘‘to revoke’’ and in5 serting ‘‘to revoke or suspend’’. 

6 (c) AUTHORITY TO PROMULGATE RULES.—Section 

7 926(a) of such title is amended by striking ‘‘only’’. 

8 (d) REPEAL OF RIDERS LIMITING USE OF FUNDS

9 TO DENY LICENSES DUE TO LACK OF BUSINESS ACTIV10 ITY.— 

11 (1) The matter under the heading ‘‘Bureau of 

12 Alcohol, Tobacco, Firearms and Explosives—Sala13 ries and Expenses’’ in title I of division B of the 

14 Consolidated and Further Continuing Appropria15 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

16 112–55; 125 Stat. 609–610) is amended by striking 

17 the 9th proviso. 

18 (2) The matter under the heading ‘‘Bureau of 

19 Alcohol, Tobacco, Firearms and Explosives—Sala20 ries and Expenses’’ in title II of division B of the 

21 Consolidated and Further Continuing Appropria22 tions Act, 2013 (18 U.S.C. 923 note; Public Law 

23 113–6; 127 Stat. 247–248) is amended by striking 

24 the 6th proviso. 


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1 SEC. 13. INCREASED LICENSING FEES. 

2 (a) FEES FOR LICENSED IMPORTERS, MANUFACTUR3 ERS, AND DEALERS IN FIREARMS AND IMPORTERS AND

4 MANUFACTURERS OF AMMUNITION.—Section 923(a) of 

5 title 18, United States Code, is amended— 

6 (1) in paragraph (1)— 

7 (A) in subparagraph (A), by striking 

8 ‘‘$1,000’’ and inserting ‘‘$2,000’’; 

9 (B) in subparagraph (B), by striking 

10 ‘‘$50’’ and inserting ‘‘$100’’; and 

11 (C) in subparagraph (C), by striking 

12 ‘‘$10’’ and inserting ‘‘$20’’; 

13 (2) in paragraph (2)— 

14 (A) in subparagraph (A), by striking 

15 ‘‘$1,000’’ and inserting ‘‘$2,000’’; and 

16 (B) in subparagraph (B), by striking 

17 ‘‘$50’’ and inserting ‘‘$100’’; and 

18 (3) in paragraph (3)— 

19 (A) in subparagraph (A), by striking 

20 ‘‘$1,000’’ and inserting ‘‘$2,000’’; and 

21 (B) in subparagraph (B)— 

22 (i) by striking ‘‘$200’’ and inserting 

23 ‘‘$400’’; and 

24 (ii) by striking ‘‘$90’’ and inserting 

25 ‘‘$180’’. 


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1 (b) FEES FOR LICENSED COLLECTORS.—Section 

2 923(b) of such title is amended by striking ‘‘$10’’ and in3 serting ‘‘$20’’. 

4 SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFEC5 TIVE DATE OF LICENSE REVOCATION. 

6 Section 923(f)(2) of title 18, United States Code, is 

7 amended in the 2nd sentence by striking ‘‘shall upon the 

8 request of the holder of the license’’ and inserting ‘‘may, 

9 upon a showing by the holder of the license of good 

10 cause,’’. 

11 SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED 

12 FOR A CRIME PUNISHABLE BY IMPRISON13 MENT FOR A TERM EXCEEDING ONE YEAR. 

14 (a) IN GENERAL.—Section 925 of title 18, United 

15 States Code, is amended by striking subsection (b) and 

16 redesignating subsections (c) through (f) as subsections 

17 (b) through (e), respectively. 

18 (b) CONFORMING AMENDMENTS.—Section 922 of 

19 such title is amended— 

20 (1) in subsection (d), in the 2nd sentence, by 

21 striking ‘‘licensed importer, licensed manufacturer, 

22 licensed dealer, or licensed collector who pursuant to 

23 subsection (b) of section 925 of this chapter is not 

24 precluded from dealing in firearms or ammunition, 

25 or to a’’; 


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1 (2) in subsection (l), by striking ‘‘925(d) of this 

2 chapter’’ and inserting ‘‘925(c)’’; and 

3 (3) in subsection (r), by striking ‘‘925(d)(3) of 

4 this chapter’’ and inserting ‘‘925(c)(3)’’. 

5 SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DIS6 ABILITY RELIEF APPLICATION PENDING. 

7 Section 925(b) of title 18, United States Code, as so 

8 redesignated by section 15(a) of this Act, is further 

9 amended by striking the 4th sentence and inserting ‘‘This 

10 subsection shall not be interpreted to prohibit the Attorney 

11 General from, on a showing by a licensee of good cause, 

12 permitting the licensee to continue operations while an ap13 plication for relief from disabilities is pending.’’. 

14 SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN 

15 SALE OF LONG GUNS TO RESIDENTS OF AN16 OTHER STATE. 

17 Section 922(b)(3) of title 18, United States Code, is 

18 amended by striking ‘‘in the absence of evidence to the 

19 contrary,’’. 

20 SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER 

21 OF FIREARM WITHOUT CONDUCTING A BACK22 GROUND CHECK. 

23 Section 922(t)(5) of title 18, United States Code, is 

24 amended by inserting ‘‘in the case of the 1st violation and, 

25 in the case of a subsequent violation, shall immediately 


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1 suspend or revoke any license issued to the licensee under 

2 section 923 and impose on the licensee a civil fine equal 

3 to $20,000’’ before the period. 

4 SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DIS5 ABILITY OR NOTICE OF LICENSE SUSPEN6 SION, REVOCATION OR DENIED RENEWAL. 

7 (a) RESTRICTIONS.—Section 922 of title 18, United 

8 States Code, is amended by adding at the end the fol9 lowing: 

10 ‘‘(aa)(1) It shall be unlawful for a licensed importer, 

11 licensed manufacturer, licensed dealer, licensed collector, 

12 or licensed facilitator who incurs a disability imposed by 

13 Federal laws with respect to the acquisition, receipt, trans14 fer, shipment, transportation, or possession of firearms or 

15 ammunition during the term of a license issued under this 

16 chapter or while an application to renew such a license 

17 is pending, or who has been notified by the Attorney Gen18 eral that a license issued to the licensee under this chapter 

19 has been suspended or revoked or that an application of 

20 the licensee to renew such a license has been denied, to— 

21 ‘‘(A) transfer a business inventory firearm— 

22 ‘‘(i) into the personal collection of the li23 censee; or 


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1 ‘‘(ii) to any person other than a licensee 

2 under this chapter or a Federal, State, or local 

3 law enforcement agency; or 

4 ‘‘(B) receive a business inventory firearm. 

5 ‘‘(2) Upon a showing by a licensee of good cause, the 

6 Attorney General may issue a written waiver of paragraph 

7 (1) if the licensee authorizes the Attorney General to in8 spect the records and inventory of the licensee at any time 

9 to ensure that the licensee is in compliance with this chap10 ter.’’. 

11 (b) PENALTIES.—Section 924(a) of such title is 

12 amended by adding at the end the following: 

13 ‘‘(8) Whoever knowingly violates section 922(aa) 

14 shall be fined under this title, imprisoned not more than 

15 1 year, or both.’’. 

16 (c) NOTICE REQUIREMENT.—Section 923(f)(1) of 

17 such title is amended in the 1st sentence by inserting ‘‘and 

18 setting forth the provisions of Federal law and regulation 

19 that prohibit a person not licensed under this chapter from 

20 engaging in the business of dealing in firearms and the 

21 restrictions set forth in section 922(aa)’’ before the period. 


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1 SEC. 20. REGULATION OF FACILITATORS OF FIREARM 

2 TRANSFERS. 

3 (a) LICENSING.—Section 923(a) of title 18, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(4) If the applicant is a facilitator of firearm 

7 sales, purchases or other transfers, a fee of $1,000 

8 per year.’’. 

9 (b) COMPLETED FACILITATED SALES.—Section 923 

10 of such title is further amended by adding at the end the 

11 following: 

12 ‘‘(n)(1) Each licensed facilitator shall— 

13 ‘‘(A) inform all prospective sellers using its 

14 commercial marketplace that any offer for firearm 

15 sales, purchases, or other transfers made using its 

16 commercial marketplace may be completed only with 

17 the assistance of a licensed importer, licensed manu18 facturer, or licensed dealer, who must take posses19 sion of the firearm directly from the transferor for 

20 the purpose of complying with section 922(t); 

21 ‘‘(B) require all prospective firearm sellers to so 

22 complete all firearms sales, purchases, or other 

23 transfers; and 

24 ‘‘(C) maintain records of any such sale, pur25 chase, or other transfer which shall include the date 

26 of the offer, the name of the offeror, and the name 


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1 and the licensee number of the licensee that will 

2 take possession of the firearm directly from the 

3 transferor, and the model, serial number, type, and 

4 caliber or gauge of the firearm involved. 

5 ‘‘(2) A licensed facilitator may require, as a condition 

6 of using its commercial marketplace, that, before offering 

7 a firearm for sale, a prospective seller identify a licensed 

8 dealer that will take possession of the firearm and com9 plete the sale. 

10 ‘‘(3) On taking possession of a firearm sold, pur11 chased, or otherwise transferred in such a commercial 

12 marketplace, a licensee shall comply with all requirements 

13 of this chapter as if the licensee were transferring the fire14 arm from the inventory of the licensee to the unlicensed 

15 transferee.’’. 

16 (c) LIABILITY.—Section 924(h) of such title is 

17 amended— 

18 (1) by inserting ‘‘(1)’’ before ‘‘Whoever’’; and 

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

20 ‘‘(2) Whoever, having accepted an offer to transfer 

21 ownership of a firearm using a commercial marketplace 

22 of a licensed facilitator in order to complete a firearm 

23 transaction as described in paragraph (1) of this sub24 section, knowingly transfers the firearm to a person not 

25 licensed under this chapter without a licensed importer, 


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1 licensed manufacturer, or licensed dealer first taking pos2 session of the firearm for the purpose of complying with 

3 section 922(t), shall be fined under this title, imprisoned 

4 not more than 1 year, or both, except that if receipt of 

5 the firearm by the transferee violates subsection (g) or (n) 

6 of section 922, or the firearm is used to commit a crime 

7 of violence (as defined in section (c)(3) of this section) 

8 or drug trafficking crime (as defined in subsection (c)(2) 

9 of this section), the transferor shall be fined under this 

10 title, imprisoned not more than 10 years, or both.’’. 

11 (d) CONFORMING AMENDMENTS.— 

12 (1) Section 922 of such title is amended— 

13 (A) in subsection (a)(1)— 

14 (i) by striking ‘‘or’’ at the end of sub15 paragraph (A); 

16 (ii) by adding ‘‘or’’ at the end of sub17 paragraph (B); and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(C) except a licensed facilitator, to engage 

21 in the business of hosting a commercial market22 place in which offers for firearms sales, pur23 chases, or other transfers are allowed to be 

24 made;’’; 

25 (B) in subsection (a)(6)— 


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1 (i) by striking ‘‘or licensed collector’’ 

2 and inserting ‘‘licensed collector, or li3 censed facilitator’’; and 

4 (ii) by striking ‘‘or collector’’ and in5 serting ‘‘collector, or facilitator’’; and 

6 (C) in subsection (m), by striking ‘‘or li7 censed collector’’ and inserting ‘‘licensed col8 lector, or licensed facilitator’’. 

9 (2) Section 923 of such title is amended— 

10 (A) in the 1st sentence of subsection (c), 

11 by inserting ‘‘or facilitate firearm sales, pur12 chases or other transfers’’ before ‘‘during the 

13 period stated in the license’’; 

14 (B) in subsection (g)(1)(A)— 

15 (i) in the first sentence, by striking 

16 ‘‘and licensed dealer’’ and inserting ‘‘li17 censed dealer, and licensed facilitator’’; 

18 and 

19 (ii) in the last sentence, by inserting 

20 ‘‘licensed facilitator,’’ before ‘‘or any li21 censed importer’’; and 

22 (C) in subsection (j), by striking ‘‘or li23 censed dealer’’ the 1st place it appears and in24 serting ‘‘licensed dealer, or licensed facilitator’’. 


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1 (3) Section 924(a)(3) of such title is amended 

2 by striking ‘‘or licensed collector’’ and inserting ‘‘li3 censed collector, or licensed facilitator’’. 

4 SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS. 

5 (a) REQUIREMENTS.— 

6 (1) BACKGROUND CHECKS REQUIRED BEFORE

7 ISSUANCE OR RENEWAL OF DEALERS LICENSE.— 

8 Section 923(c) of title 18, United States Code, is 

9 amended by inserting after the 1st sentence the fol10 lowing: ‘‘Notwithstanding the preceding sentence, 

11 the Attorney General may not issue or renew a li12 cense unless the Attorney General has contacted the 

13 national instant criminal background check system 

14 established under section 103 of the Brady Handgun 

15 Violence Prevention Act to determine whether it 

16 would be unlawful for the applicant or any employee 

17 of the applicant identified by the applicant on the 

18 application as trusted with the possession or receipt 

19 of any firearm, to receive a firearm, and the system 

20 has notified the Attorney General that the informa21 tion available to the system does not demonstrate 

22 that the receipt of a firearm by the applicant or any 

23 such employee would violate subsection (g) or (n) of 

24 section 922 or the law of the State in which the 


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1 business premises of the applicant subject to the li2 cense is located.’’. 

3 (2) BACKGROUND CHECK REQUIRED BEFORE

4 FIREARM POSSESSION BY DEALER EMPLOYEE.—Sec5 tion 923(g) of such title is further amended by add6 ing at the end the following: 

7 ‘‘(11) A licensed dealer shall not allow an employee 

8 to possess a firearm at a premises from which the licensed 

9 dealer conducts business subject to license under this 

10 chapter, unless— 

11 ‘‘(A) the employee is at least the minimum age 

12 required by State and local law to possess or receive 

13 a firearm; 

14 ‘‘(B) the licensed dealer has contacted the na15 tional instant criminal background check system es16 tablished under section 103 of the Brady Handgun 

17 Violence Prevention Act to determine whether it 

18 would be unlawful for the individual to receive a fire19 arm; and 

20 ‘‘(C) the system has notified the licensee that 

21 the information available to the system does not 

22 demonstrate that the receipt of a firearm by the in23 dividual would violate subsection (g) or (n) of sec24 tion 922 or State law.’’. 


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1 (b) AUTHORITY OF NICS SYSTEM TO RESPOND TO

2 LICENSED DEALER REQUEST FOR CRIMINAL BACK3 GROUND CHECK OF EMPLOYEE OR APPLICANT FOR EM4 PLOYMENT.—Section 103(b) of the Brady Handgun Vio5 lence Prevention Act (34 U.S.C. 40901(b)) is amended by 

6 adding at the end the following: ‘‘The Attorney General 

7 shall ensure that the system responds to any request re8 ceived by the system from a licensed dealer for information 

9 on whether receipt of a firearm by an employee or appli10 cant for employment of the licensed dealer would violate 

11 such section 922 or State law.’’. 

12 (c) AUTHORITY OF NICS SYSTEM TO SEARCH NA13 TIONAL DATA EXCHANGE.—Section 103(e)(1) of the 

14 Brady Handgun Violence Prevention Act (34 U.S.C. 

15 40901(e)(1)) is amended by adding at the end the fol16 lowing: 

17 ‘‘(L) SEARCH OF NATIONAL DATA EX18 CHANGE DATABASE.—The system established 

19 under this section shall include a search of the 

20 database of the National Data Exchange when 

21 conducting a background check under this sec22 tion.’’. 

23 SEC. 22. LIABILITY STANDARDS. 

24 (a) LIABILITY IN LICENSING.—Section 923 of title 

25 18, United States Code, is amended— 


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1 (1) in subsection (d)(1)(D), by striking ‘‘will2 fully’’ and inserting ‘‘knowingly’’; and 

3 (2) in subsection (e), by striking ‘‘willfully’’ 

4 each place it appears and inserting ‘‘knowingly’’. 

5 (b) LIABILITY IN PENALTIES.—Section 924 of such 

6 title is amended— 

7 (1) in subsection (a)(1)(D), by striking ‘‘will8 fully’’ and inserting ‘‘knowingly’’; and 

9 (2) in subsection (d)(1), by striking ‘‘willful’’ 

10 and inserting ‘‘knowing’’. 

11 SEC. 23. CIVIL ENFORCEMENT. 

12 (a) FINES FOR ENGAGING IN THE BUSINESS WITH13 OUT A LICENSE.—Section 924(n), of title 18, United 

14 States Code, is amended— 

15 (1) by inserting ‘‘(1)’’ after ‘‘(n)’’; and 

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

17 ‘‘(2) In the case of a person who the Attorney Gen18 eral has found to be engaged in conduct that constitutes 

19 a violation of section 922(a)(1)(A), the Attorney General 

20 shall transmit to the persona written notice specifying the 

21 violation, which shall include a copy of the provision of 

22 law violated, and impose a civil money penalty in an 

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

24 $20,000.’’. 


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1 (b) TIERED PENALTIES FOR REPEATED VIOLATIONS

2 OF REGULATIONS BY LICENSED DEALERS.—Section 924 

3 of such title is amended by adding at the end the fol4 lowing: 

5 ‘‘(q) PENALTIES RELATING TO VIOLATIONS OF REG6 ULATIONS BY LICENSED DEALERS.— 

7 ‘‘(1) In the case of a licensed dealer who the 

8 Attorney General has found to be in violation of a 

9 regulation prescribed under section 926, the Attor10 ney General shall— 

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

12 negligence by the licensed dealer— 

13 ‘‘(i) in the case of the 1st such viola14 tion by the licensed dealer, if not preceded 

15 by a violation to which subparagraph (B) 

16 applies, transmit to the licensed dealer a 

17 written notice specifying the violation, 

18 which shall include a copy of the provision 

19 of law or regulation violated and a plan for 

20 how to cure the violation; 

21 ‘‘(ii) in the case of the 2nd such viola22 tion by the licensed dealer, if not preceded 

23 by a violation to which subparagraph (B) 

24 applies, impose a civil money penalty in an 


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

2 not more than $20,000; 

3 ‘‘(iii) in the case of the 3rd such viola4 tion by the licensed dealer, if not preceded 

5 by a violation to which subparagraph (B) 

6 applies, suspend the license to deal in fire7 arms issued to the licensed dealer under 

8 this chapter until the violation ceases; 

9 ‘‘(iv) in the case of the 4th such viola10 tion by the licensed dealer, whether or not 

11 preceded by a violation to which subpara12 graph (B) applies, revoke the license; or 

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

14 by the licensed dealer, if preceded by a vio15 lation to which subparagraph (B) applies, 

16 apply the penalty authorized under this 

17 subsection that is 1 level greater in sever18 ity than the level of severity of the penalty 

19 most recently applied to the licensed dealer 

20 under this subsection; or 

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

22 gross negligence— 

23 ‘‘(i) in the case of the 1st such viola24 tion by the licensed dealer, impose a civil 

25 money penalty in an amount that is not 


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1 less than $2,500 and not more than 

2 $20,000; 

3 ‘‘(ii) in the case of the 2nd such viola4 tion by the licensed dealer— 

5 ‘‘(I) impose a civil money penalty 

6 in an amount equal to $20,000; 

7 ‘‘(II) suspend the license to deal 

8 in firearms issued to the licensed deal9 er under this chapter until the viola10 tion ceases; or 

11 ‘‘(III) revoke the license; or 

12 ‘‘(iii) in the case of the 3rd or subse13 quent such violation by the licensed dealer, 

14 apply the penalty authorized under this 

15 subsection that is 2 levels greater in sever16 ity than the level of severity of the penalty 

17 most recently applied to the licensed dealer 

18 under this subsection. 

19 ‘‘(2) In the case of any such violation, if the At20 torney General finds that the nature of the violation 

21 indicates that the continued operation of a firearms 

22 business by the licensed dealer presents an imminent 

23 risk to public safety, the Attorney General shall, not24 withstanding paragraph (1), immediately suspend 

25 the license to deal in firearms issued to the licensed 


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1 dealer under this chapter and secure the firearms in2 ventory of the licensed dealer, until the violation 

3 ceases.’’. 

4 SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF 

5 CRIMINAL PROCEEDINGS TERMINATED. 

6 Section 923(f) of title 18, United States Code, is 

7 amended by striking paragraph (4). 

8 SEC. 25. REPEAL OF CERTAIN LIMITATIONS. 

9 (a) LIMITATIONS RELATED TO USE OF FIREARMS

10 TRACE DATA.— 

11 (1) The matter under the heading ‘‘Bureau of 

12 Alcohol, Tobacco, Firearms and Explosives—Sala13 ries and Expenses’’ in title I of division B of the 

14 Consolidated and Further Continuing Appropria15 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

16 112–55; 125 Stat. 609–610) is amended by striking 

17 the 6th proviso. 

18 (2) The 6th proviso under the heading ‘‘Bureau 

19 of Alcohol, Tobacco, Firearms and Explosives—Sala20 ries and Expenses’’ in title II of division B of the 

21 Consolidated Appropriations Act, 2010 (18 U.S.C. 

22 923 note; Public Law 111–117; 123 Stat. 3128– 

23 3129) is amended by striking ‘‘beginning in fiscal 

24 year 2010 and thereafter’’ and inserting ‘‘in fiscal 

25 year 2010’’. 


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

2 of Alcohol, Tobacco, Firearms and Explosives—Sala3 ries and Expenses’’ in title II of division B of the 

4 Omnibus Appropriations Act, 2009 (18 U.S.C. 923 

5 note; Public Law 111–8; 123 Stat. 574–576) is 

6 amended by striking ‘‘beginning in fiscal year 2009 

7 and thereafter’’ and inserting ‘‘in fiscal year 2009’’. 

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

9 of Alcohol, Tobacco, Firearms and Explosives—Sala10 ries and Expenses’’ in title II of division B of the 

11 Consolidated Appropriations Act, 2008 (18 U.S.C. 

12 923 note; Public Law 110–161; 121 Stat. 1903– 

13 1904) is amended by striking ‘‘beginning in fiscal 

14 year 2008 and thereafter’’ and inserting ‘‘in fiscal 

15 year 2008’’. 

16 (5) The 6th proviso under the heading ‘‘Bureau 

17 of Alcohol, Tobacco, Firearms and Explosives—Sala18 ries and Expenses’’ in title I of the Science, State, 

19 Justice, Commerce, and Related Agencies Appro20 priations Act, 2006 (18 U.S.C. 923 note; Public 

21 Law 109–108; 119 Stat. 2295–2296) is amended by 

22 striking ‘‘with respect to any fiscal year’’. 

23 (6) The 6th proviso under the heading in title 

24 I of division B of the Consolidated Appropriations 

25 Act, 2005 (18 U.S.C. 923 note; Public Law 108– 


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1 447; 118 Stat. 2859–2860) is amended by striking 

2 ‘‘with respect to any fiscal year’’. 

3 (7) Section 644 of title VI of division J of the 

4 Consolidated Appropriations Resolution, 2003 (5 

5 U.S.C. 552 note; Public Law 108–7; 117 Stat. 473– 

6 474) is amended by striking ‘‘or any other Act with 

7 respect to any fiscal year’’. 

8 (b) LIMITATIONS RELATING TO CONSOLIDATING AND

9 CENTRALIZING RECORDS.—The matter under the heading 

10 ‘‘Bureau of Alcohol, Tobacco, Firearms and Explosives— 

11 Salaries and Expenses’’ in title I of division B of the Con12 solidated and Further Continuing Appropriations Act, 

13 2012 (18 U.S.C. 923 note; Public Law 112–55; 125 Stat. 

14 609) is amended in the 1st proviso by striking ‘‘or here15 after’’. 

16 (c) REQUIREMENT TO DESTROY INSTANT CRIMINAL

17 BACKGROUND CHECK RECORDS WITHIN 24 HOURS.— 

18 Section 511 of the Consolidated and Further Continuing 

19 Appropriations Act, 2012 (18 U.S.C. 922 note; Public 

20 Law 112–55; 125 Stat. 632) is amended— 

21 (1) by striking ‘‘for—’’ and all that follows 

22 through ‘‘(1)’’; and 

23 (2) by striking the semicolon and all that fol24 lows and inserting a period. 


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1 SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OP2 ERATION INVESTIGATORS FOR BATFE. 

3 The Attorney General may hire 650 Industry Oper4 ation Investigators for the Bureau of Alcohol, Tobacco, 

5 Firearms and Explosives, to be distributed among the var6 ious field divisions to match the number and distribution 

7 of persons licensed under chapter 44 of title 18, United 

8 States Code, in addition to any personnel needed to carry 

9 out this Act and any Industry Operation Investigators au10 thorized by other law. 

11 SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT. 

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

13 Act, the Attorney General shall submit to the Congress 

14 and publish publicly on the website of the Department of 

15 Justice a written report on the implementation of this Act 

16 and the amendments made by this Act, including any 

17 steps needed to complete the implementation, which shall 

18 identify any additional resources that are required to con19 duct regular inspections under chapter 44 of title 18, 

20 United States Code, and to ensure that this Act and the 

21 amendments made by this Act are enforced against non22 compliant federally licensed firearms dealers in a timely 

23 manner. 


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1 SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT 

2 AND ANALYSIS. 

3 Within 2 years after the date of enactment of this 

4 Act, and annually thereafter, the Attorney General shall 

5 submit to the Congress and publish publicly on the website 

6 of the Department of Justice, a written report which 

7 states— 

8 (1) the number of inspections conducted of 

9 Type 01 and 02 Federal firearm licensees (dealers 

10 and pawnbrokers) in the preceding 24 months, by 

11 each field division of the Bureau of Alcohol, To12 bacco, Firearms and Explosives (in this section re13 ferred to as the ‘‘BATFE’’), including by the num14 ber of inspections of high risk dealers and non-high 

15 risk dealers; 

16 (2) the number of security inspections prompt17 ed by dealer reports of lost or stolen firearms, and 

18 the number of follow-up inspections conducted 6 

19 months after an inspection revealing a violation; 

20 (3) the average time spent on high risk, non21 high risk, security, and follow up inspections; and 

22 (4) an analysis of the most frequently cited vio23 lations and corrective actions or penalties imposed in 

24 each instance, including— 

25 (A) the number of licenses recommended 

26 to be suspended or revoked; 


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1 (B) the number of licensees sent notices of 

2 suspension or revocation; 

3 (C) the number of hearings requested by 

4 licensees on receipt of notice of suspension or 

5 revocation; 

6 (D) the number of suspension or revoca7 tion hearings initiated in a prior 12-month pe8 riod that remain ongoing during the 12-month 

9 period covered by the report; and 

10 (E) the decision ultimately rendered in 

11 each such matter by the Director of the 

12 BATFE. 

13 SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULA14 TIONS. 

15 Within two years after the date of enactment of this 

16 Act, the Attorney General shall prescribe, in final form, 

17 all regulations required to carry out this Act and the 

18 amendments made by this Act. 

Æ 


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