I 

118TH CONGRESS 

1ST SESSION H. R. 1478 

To modernize the business of selling firearms. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2023 

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

MORELLE, Mr. PANETTA, Mr. PASCRELL, Mr. AUCHINCLOSS, Mr. BLUMENAUER, Mr. BOWMAN, Mr. BOYLE of Pennsylvania, Mr. CARSON, Mr. 

CASTEN, Ms. CASTOR of Florida, Mrs. CHERFILUS-MCCORMICK, Ms. 

CROCKETT, Mr. CROW, Mr. DAVIS of Illinois, Mr. DESAULNIER, Mr. 

ESPAILLAT, Mr. FROST, Mr. IVEY, Mr. MOULTON, Ms. NORTON, Mr. 

PAYNE, Ms. PLASKETT, Mr. QUIGLEY, Mrs. RAMIREZ, Mr. RASKIN, Ms. 

SA ́NCHEZ, Ms. SCANLON, Ms. SCHOLTEN, Mr. SWALWELL, Ms. TITUS, 

Ms. TLAIB, Ms. TOKUDA, Mrs. WATSON COLEMAN, Ms. WILSON of Florida, Ms. MCCOLLUM, Mr. VARGAS, and Mr. TONKO) 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: 


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1 (1) A growing body of evidence demonstrates 

2 that gun dealers’ sales practices affect the prob3 ability of guns getting to criminals and that policies 

4 designed to hold gun sellers accountable can curtail 

5 the diversion of guns to criminals. 

6 (2) Federal laws governing firearm dealers have 

7 not been updated in over 30 years, contain safe8 guards that protect dealers who engage in illegal 

9 practices from adverse enforcement action, frustrate 

10 law enforcement efforts to curb gun trafficking and 

11 violence and are, thus, inadequate to meet the reali12 ties of the twenty-first century. 

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

14 limit the authority of the Bureau of Alcohol, To15 bacco, Firearms and Explosives (ATF) to disclose 

16 crime gun trace data to the public, prevent the col17 lection of valuable information, and the establish18 ment of effective policies to prevent illegal guns from 

19 being used in crimes and impede enforcement of the 

20 gun laws by requiring most background check 

21 records to be destroyed within 24 hours, and by bar22 ring the Government from requiring annual inven23 tory audits by owners of gun shops. Repealing the 

24 Tiahrt Amendments would support law enforcement 

25 efforts and give the public vital information needed 


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1 to craft the most effective policies against illegal 

2 guns. 

3 (4) Additionally, Federal law imposes no re4 quirements that dealers physically secure their high5 ly valuable and lethal inventory. The number of gun 

6 thefts from licensed gun dealers has increased more 

7 than the number from any other source. Between 

8 2013 and 2017, the number of firearms stolen in 

9 gun-dealer burglaries more than doubled and the 

10 number of firearms stolen in gun-dealer robberies 

11 tripled. 

12 SEC. 3. DEFINITIONS. 

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

14 amended by adding at the end the following: 

15 ‘‘(38) The term ‘facilitator’ means any person en16 gaged in the business of hosting a commercial marketplace 

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

18 transfers are allowed to be made, except that such a per19 son shall not be considered to be a facilitator with respect 

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

21 website or mobile application owned or operated by the 

22 person if the transaction violates the terms of service of 

23 the website or mobile application and the person has made 

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


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1 a minimum, auditing firearms transactions on a quarterly 

2 basis to ensure compliance with this chapter. 

3 ‘‘(39) The term ‘occasional’ means, with respect to 

4 transactions, fewer than 5 transactions in a 12-month pe5 riod. 

6 ‘‘(40) The term ‘personal collection’ includes any fire7 arm obtained only for the personal use of an individual 

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

9 a firearm obtained through inheritance shall not be consid10 ered part of a personal collection until the firearm has 

11 been possessed for 1 year. 

12 ‘‘(41) The term ‘business inventory firearm’ means, 

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

14 recorded in the acquisition and disposition logs of any fire15 arms business of the person. 

16 ‘‘(42)(A) The term ‘frame’ means the part of a hand17 gun, or variants thereof, that provides housing or a struc18 ture for the primary energized component designed to hold 

19 back the hammer, striker, bolt, or similar component prior 

20 to initiation of the firing sequence (such as a sear or the 

21 equivalent), even if pins or other attachments are required 

22 to connect such component to the housing or structure. 

23 ‘‘(B) The term ‘receiver’ means the part of a rifle, 

24 shotgun, or projectile weapon other than a handgun, or 

25 variants thereof, that provides housing or a structure for 


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1 the primary component designed to block or seal the 

2 breech prior to initiation of the firing sequence (such as 

3 a bolt, breechblock, or the equivalent), even if pins or other 

4 attachments are required to connect such component to 

5 the housing or structure. 

6 ‘‘(C) For purposes of this paragraph, the terms ‘vari7 ant’ and ‘variants thereof’ mean a weapon utilizing a simi8 lar frame or receiver design irrespective of new or different 

9 model designations or configurations, characteristics, fea10 tures, components, accessories, or attachments. For exam11 ple, an AK-type firearm with a short stock and a pistol 

12 grip is a pistol variant of an AK-type rifle, an AR-type 

13 firearm with a short stock and a pistol grip is a pistol 

14 variant of an AR-type rifle, and a revolving cylinder shot15 gun is a shotgun variant of a revolver.’’. 

16 SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION. 

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

18 amended by striking subsection (s). 

19 SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES. 

20 (a) SECURITY PLAN SUBMISSION REQUIREMENT.— 

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

22 18, United States Code, is amended by striking the 

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

24 submits with the application a security plan that de25 scribes how the applicant will secure, in accordance 


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

2 premises from which the applicant will conduct busi3 ness under the license (including in the event of a 

4 natural disaster or other emergency), and the appli5 cant certifies that, if issued such a license, the appli6 cant will comply with the plan; and’’. 

7 (2) WRITTEN APPROVAL REQUIRED BEFORE LI8 CENSE RENEWAL.—Section 923(d)(1) of such title is 

9 amended— 

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

11 ‘‘and’’ after the semicolon; and 

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

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

14 license to deal in firearms— 

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

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

17 issued under this chapter revoked; and 

18 ‘‘(iii) the Attorney General has inspected 

19 the premises and provided written approval of 

20 the security plan submitted by the applicant 

21 under subparagraph (G).’’. 

22 (3) APPLICABILITY.—A person who, on the 

23 date of the enactment of this Act, is a licensed deal24 er (as defined in section 921(a)(11) of title 18, 

25 United States Code) and whose license to deal in 


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

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

3 begins with the date regulations are prescribed 

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

5 the Attorney General a plan of the type described in 

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

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

8 considered to be submitted pursuant to such section 

9 923(d)(1)(G). 

10 (b) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI11 CATION REQUIREMENT.— 

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

13 amended by adding at the end the following: 

14 ‘‘(m)(1) Each licensed manufacturer, licensed im15 porter, and licensed dealer shall annually certify to the At16 torney General that each premises from which the licensee 

17 conducts business subject to license under this chapter is 

18 in compliance with the regulations prescribed under sec19 tion 926(d), and include with the certification the results 

20 of a reconciliation of the resale firearms then in the busi21 ness inventory of the licensee against the resale firearms 

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

23 the most recent prior certification (if any) under this para24 graph, and all dispositions and acquisitions of resale fireVerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478

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1 arms in the year covered by the certification, identifying 

2 and reporting any missing firearm. 

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

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

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

6 to comply with paragraph (1).’’. 

7 (2) APPLICABILITY.—The amendment made by 

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

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

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

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

12 year period that begins with the date the person 

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

14 (c) REGULATIONS.— 

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

16 amended by adding at the end the following: 

17 ‘‘(d) The Attorney General shall prescribe such regu18 lations as are necessary to ensure that any premises at 

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

20 business is secure from theft, which shall include requir21 ing— 

22 ‘‘(1) compliance with the security plan sub23 mitted by the licensee pursuant to section 

24 923(d)(1)(G); 


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1 ‘‘(2) the use of locked metal cabinets and fire2 proof safes; 

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

4 antitheft alarms; 

5 ‘‘(4) security gates, strong locks, and site hard6 ening; 

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

8 if necessary; and 

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

10 features appropriate for the licensee’s specific cir11 cumstances.’’. 

12 (2) APPLICABILITY.—The regulations pre13 scribed under section 926(d)(1) of such title shall 

14 not apply to a person who, on the date of the enact15 ment of this Act, is a licensee referred to in section 

16 923(m) of such title, until the earlier of— 

17 (A) the date the person complies with sub18 section (b)(2) of this section; or 

19 (B) the end of the 1-year period that be20 gins with the date regulations are prescribed 

21 under section 926(d) of such title. 

22 SEC. 6. BUSINESS INVENTORY FIREARMS. 

23 (a) REQUIREMENT TO TRANSFER FIREARM IN PER24 SONAL COLLECTION TO BUSINESS INVENTORY BEFORE


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

2 Code, is amended— 

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

4 the following: ‘‘Nothing in this chapter shall be con5 strued to prohibit a licensed manufacturer, licensed 

6 importer, or licensed dealer from maintaining a per7 sonal collection of firearms.’’; 

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

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

10 firearm disposed of by a licensee shall be from the 

11 business inventory of the licensee.’’. 

12 (b) LICENSEE FIREARMS INVENTORY.—Section 

13 923(g) of such title is amended by adding at the end the 

14 following: 

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

16 check of the firearms inventory of the business of the li17 censee licensed under this chapter and report any lost, sto18 len, or unaccounted for firearm to the Attorney General 

19 and appropriate local authorities in accordance with regu20 lations which shall be prescribed by the Attorney General 

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

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

23 number, if applicable, of the person from whom the fire24 arm was received, the name of the manufacturer and, if 

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1 ber, type, and caliber or gauge of the firearm, and the 

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

3 chapter shall not be interpreted to prohibit the Attorney 

4 General from, at any time, requiring the regular or one5 time submission of the inventory records of a licensee to 

6 ensure that the licensee is in compliance with this chap7 ter.’’. 

8 (c) REPEAL OF LIMITATIONS ON IMPOSITION OF RE9 QUIREMENT THAT FIREARMS DEALERS CONDUCT PHYS10 ICAL CHECK OF FIREARMS INVENTORY.— 

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

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

14 Consolidated and Further Continuing Appropria15 tions Act, 2013 (18 U.S.C. 923 note; Public Law 

16 113–6; 127 Stat. 248) is amended by striking ‘‘and 

17 any fiscal year thereafter’’. 

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

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

21 Consolidated and Further Continuing Appropria22 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

23 112–55; 125 Stat. 609–610) is amended by striking 

24 the 7th proviso. 


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

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

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

5 923 note; Public Law 111–117; 123 Stat. 3128) is 

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

7 proviso. 

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

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

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

12 923 note; Public Law 111–8; 123 Stat. 574) is 

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

14 proviso. 

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

16 Alcohol, Tobacco, Firearms and Explosives—Sala17 ries and Expenses’’ in title II of Division B of the 

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

19 923 note; Public Law 110–161; 121 Stat. 1903) is 

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

21 proviso. 

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

23 Alcohol, Tobacco, Firearms and Explosives—Sala24 ries and Expenses’’ in title I of the Science, State, 

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1 tions Act of 2006 (18 U.S.C. 923 note; Public Law 

2 109–108; 119 Stat. 2295) is amended by striking 

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

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

5 Alcohol, Tobacco, Firearms and Explosives—Sala6 ries and Expenses’’ in title I of Division B of the 

7 Consolidated and Further Continuing Appropria8 tions Act, 2005 (18 U.S.C. 923 note; Public Law 

9 108–447; 118 Stat. 2859–2860) is amended by 

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

11 (8) 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, 2004 (18 U.S.C. 923 note; Public Law 

16 108–199; 1185 Stat. 53) is amended by striking ‘‘or 

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

18 SEC. 7. ELECTRONIC RECORDS. 

19 (a) RECORDS RETENTION AND SUBMISSION.—Sec20 tion 923(g) of title 18, United States Code, is amended— 

21 (1) in paragraph (1)(A)— 

22 (A) in the 1st sentence, by inserting ‘‘, ex23 cept that, notwithstanding any other provision 

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

25 Firearm Licensee Act, records prepared by liVerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478

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1 censees under this chapter of the sale or other 

2 disposition of firearms, including each firearms 

3 transaction record, and the corresponding 

4 record of receipt of such firearms, shall be re5 tained at the business premises readily acces6 sible for inspection under this chapter until the 

7 business is discontinued’’ before the period; and 

8 (B) by striking the 2nd sentence; 

9 (2) in paragraph (5)(A), by inserting ‘‘or elec10 tronically as may be’’ after ‘‘submit on a form’’; and 

11 (3) in paragraph (7), by inserting ‘‘, electroni12 cally,’’ after ‘‘orally’’. 

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

14 title is further amended by adding at the end the fol15 lowing: 

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

17 of this paragraph, the National Tracing Center of the Bu18 reau of Alcohol, Tobacco, Firearms and Explosives shall 

19 establish and maintain electronic, searchable databases of 

20 all records regarding the importation, production, ship21 ment, receipt, sale, or other disposition of firearms re22 quired to be submitted by licensees to the Attorney Gen23 eral under this chapter. 

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

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1 sistent with the requirements of this paragraph, to all 

2 records within the possession of the licensee that are re3 quired to be kept under this chapter. 

4 ‘‘(C) The National Tracing Center— 

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

6 or otherwise access the electronic databases de7 scribed in this paragraph; and 

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

9 subdivision of a State, may query, search, or other10 wise access the databases of the firearms registra11 tion system or pawnbroker records system of the 

12 State or political subdivision. 

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

14 search, or otherwise access the electronic databases de15 scribed in this paragraph only to obtain information re16 lated to any Federal, State, local, tribal, or foreign crimi17 nal investigation. 

18 ‘‘(E) The databases established under this para19 graph— 

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

21 disposition, license number, and the information 

22 identified on each firearm or other firearm 

23 descriptor, including the manufacturer, importer, 

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


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

2 the personally identifiable information of any indi3 vidual, without a warrant authorizing such a search; 

4 and 

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

6 contents of the relevant records kept by the li7 censee.’’. 

8 (c) VIDEO RECORDINGS OF SALES AND TRANS9 FERS.—Section 923(g) of such title is further amended 

10 by adding to the end the following: 

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

12 the Attorney General, each licensed dealer operating a lo13 cation at which firearms are sold to a person not licensed 

14 under this chapter shall— 

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

16 within each premises where firearms in the business 

17 inventory of the licensee are sold or transferred; 

18 ‘‘(B) retain records of the surveillance, includ19 ing any sound recording obtained from the surveil20 lance, for a period of not less than 90 days; and 

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

22 each public entrance to the retail location, in block 

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

24 the premises are under video surveillance.’’. 


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1 (d) INCREASED PENALTIES FOR LICENSEE VIOLA2 TIONS RELATING TO ACQUISITION AND DISPOSITION

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

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

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

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

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

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

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

10 licensed manufacturer, licensed collector, or licensed 

11 facilitator shall be fined under this title, imprisoned 

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

13 (e) ELIMINATION OF LIMITATION ON CENTRALIZING

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

15 matter following paragraph (3) by striking ‘‘records re16 quired to be maintained under this chapter or any portion 

17 of the contents of such records, be recorded at or trans18 ferred to a facility owned, managed, or controlled by the 

19 United States or any State or any political subdivision 

20 thereof, nor that.’’. 

21 (f) ELECTRONIC RECORDKEEPING ADOPTION AND

22 IMPLEMENTATION.—Section 926 of such title is further 

23 amended by adding at the end the following: 

24 ‘‘(e) The Attorney General— 


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1 ‘‘(1) shall facilitate and incentivize licensee con2 version to, and adoption of, electronic recordkeeping 

3 solutions that enable electronic completion and sub4 mission to the Attorney General of all records re5 quired to be maintained under this chapter; 

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

7 paper records, the integration and indexing of data 

8 onto a platform accessible by law enforcement au9 thorities for purposes of investigating a violent crime 

10 or crime gun trace; 

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

12 records of licensed dealers by law enforcement au13 thorities for purposes of investigating a violent crime 

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

15 own records; and 

16 ‘‘(4) shall not remotely access or search elec17 tronic records of licensed dealers without a warrant 

18 authorizing such a search.’’. 

19 SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS. 

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

21 Code, is amended by adding at the end, before the semi22 colon, the following: ‘‘, if the licensee notifies the Attorney 

23 General that such firearm has been transferred to such 

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

25 the firearm is transferred’’. 


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1 SEC. 9. MULTIPLE FIREARM SALES RECORDS AND RE2 PORTS. 

3 (a) EXPANDING REPORTING REQUIREMENT TO CER4 TAIN LONG GUNS.—Section 923(g)(3)(A) of title 18, 

5 United States Code, is amended— 

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

7 combination of pistols and revolvers’’ and inserting 

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

9 or rifles or shotguns capable of accepting a high ca10 pacity magazine, or any combination of such weap11 ons’’; and 

12 (2) by inserting after the 1st sentence the fol13 lowing: ‘‘In the preceding sentence, the term ‘high 

14 capacity magazine’ means a magazine capable of 

15 holding more than 10 rounds of ammunition, and in16 cludes magazines that may be readily converted to 

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

18 (b) REQUIREMENT TO RETAIN INSTANT CRIMINAL

19 BACKGROUND CHECK RECORDS FOR 90 BUSINESS

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

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

22 for 90 business days’’; 

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

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

25 and 


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

2 discovering misuse or avoidance of the national in3 stant criminal background check system or ensuring 

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

5 (c) ATTORNEY GENERAL REPORTS OF MULTIPLE

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

7 title is amended— 

8 (1) by inserting after subparagraph (A) the fol9 lowing: 

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

11 multiple dispositions of firearms to persons not licensed 

12 under this chapter, which shall include the names and 

13 identifying information of transferees appearing in the 

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

15 more occasions in any period of 5 consecutive business 

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

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

18 and include the names and addresses of the licensees who 

19 requested the background checks pursuant to subsection 

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

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

22 departments of State police or State law enforcement 

23 agencies of the State or local law enforcement agencies 

24 of the local jurisdictions in which the sales or other dis25 positions took place, not later than the close of business 


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1 on the date of the most recent such sale or other disposi2 tion.’’; and 

3 (2) by redesignating subparagraph (B) as sub4 paragraph (C). 

5 (d) RECORDS RETENTION TO INVESTIGATE CRIME

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

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

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

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

10 thereof regarding’’; 

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

12 form and any record of the contents thereof no more 

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

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

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

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

17 (3) by striking the 2nd sentence. 

18 SEC. 10. SAFETY DEVICES AND WARNINGS TO PUR19 CHASERS. 

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

21 amended— 

22 (1) by inserting ‘‘AND WARNINGS TO PUR23 CHASERS’’ after ‘‘SECURE GUN STORAGE OR SAFE24 TY DEVICE’’; 


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

2 and inserting ‘‘firearm’’; and 

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

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

5 dealers operating a physical retail location shall post 

6 conspicuously within the licensed premises all warn7 ings required to be provided to firearms purchasers 

8 under applicable State and local law. The Attorney 

9 General shall develop materials regarding suicide 

10 prevention, securing firearms from loss, theft, or ac11 cess by a minor or prohibited person, and straw pur12 chasing, and provide the materials to licensed deal13 ers who shall disseminate the materials on transfer 

14 of a firearm to a person not licensed under this 

15 chapter.’’. 

16 SEC. 11. INSPECTIONS. 

17 (a) MANDATED ANNUAL INSPECTIONS OF HIGH

18 RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF

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

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

21 the following flush sentence: ‘‘Not less frequently than an22 nually, the Attorney General shall inspect or examine the 

23 inventory, records, and business premises of each licensed 

24 dealer whom the Attorney General determines to be a high 

25 risk dealer (based on considerations that shall include 


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1 dealers who have reported a lost or stolen firearm within 

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

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

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

5 traced multiple firearms used in a crime under Federal, 

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

7 and may appoint a special master to ensure that such 

8 dealers comply with all applicable firearm sales laws. The 

9 special master may use in-store observation, monitor 

10 records, conduct random and repeated sales integrity 

11 tests, and design and offer instructional programs pro12 viding best practices sales training to all employees in13 volved in firearms sales until the special master certifies 

14 that the dealer has complied with all applicable firearms 

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

16 every 5 years, the Attorney General shall inspect or exam17 ine the inventory, records, and business premises of each 

18 other licensed dealer. Within 6 months after such an in19 spection reveals a violation of this section or any regula20 tion prescribed under this chapter, and within 6 months 

21 after a security inspection conducted under paragraph 

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

23 conduct an inspection to determine whether the violation 

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


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1 (b) ELIMINATION OF LIMIT ON INSPECTION OF LI2 CENSEE RECORDS.—Section 923(g)(1)(B)(ii) of such title 

3 is amended— 

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

5 through ‘‘(II)’’; and 

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

7 to a firearm involved in a criminal investigation that 

8 is traced to the licensee’’. 

9 (c) MANDATED SECURITY INSPECTION OF DEALERS

10 REPORTING LOST OR STOLEN FIREARMS.—Section 

11 923(g)(6) of such title is amended— 

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

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

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

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

16 the Attorney General shall conduct an independent inspec17 tion of the security of the premises at which the theft oc18 curred, which shall include an inspection of the measures 

19 taken to implement the security plan submitted by the li20 censed dealer pursuant to subsection (d)(1)(G). 

21 ‘‘(ii) On completion of the security inspection, the At22 torney General shall provide the licensed dealer with— 

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

24 dealer of any security requirements prescribed under 

25 section 926(d); and 


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1 ‘‘(II) recommendations for improving security 

2 of the premises involved.’’. 

3 (d) ELIMINATION OF LIMIT ON INSPECTION OF

4 OTHER PREMISES.—Section 923(j) of such title is amend5 ed by striking the 6th sentence. 

6 SEC. 12. AUTHORITY WITH REGARDS TO LICENSE 

7 ISSUANCE AND RENEWAL. 

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

9 United States Code, is amended— 

10 (1) in subsection (c)— 

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

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

13 subject to paragraph (2),’’ after ‘‘Attorney Gen14 eral shall’’; and 

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

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

17 submitted under subsection (a) or (b) if the Attorney Gen18 eral determines— 

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

20 public safety; or 

21 ‘‘(B) that the applicant— 

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

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

24 a license.’’; and 

25 (2) in subsection (d)(1)— 


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

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

3 (B) in the matter preceding subparagraph 

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

5 (c)(2),’’ after ‘‘shall’’; 

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

7 willfully violated’’ and inserting ‘‘no uncured 

8 violations’’; and 

9 (D) in subparagraph (F)— 

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

11 at the end; and 

12 (ii) by adding at the end the fol13 lowing: 

14 ‘‘(iv) all employees employed in the 

15 business will be at least the minimum age 

16 at which individuals may possess a firearm 

17 in the locality in which the business will be 

18 conducted and are not prohibited from 

19 being transferred a firearm, or trans20 porting, shipping, or receiving firearms or 

21 ammunition in interstate or foreign com22 merce by subsection (d), (g), or (n) of sec23 tion 922 (as applicable) or by State, local, 

24 or Tribal law;’’. 


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1 (b) AUTHORITY TO REVOKE OR SUSPEND LI2 CENSES.—Section 923 of such title is amended— 

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

4 inserting ‘‘revoke or suspend’’; and 

5 (2) in subsection (f)— 

6 (A) in paragraph (1)— 

7 (i) by striking all instances of ‘‘re8 voked’’ and inserting ‘‘revoked or sus9 pended’’; and 

10 (ii) by striking all instances of ‘‘rev11 ocation’’ and inserting ‘‘revocation or sus12 pension’’; and 

13 (B) in paragraph (2)— 

14 (i) by striking ‘‘, or revokes’’ and in15 serting ‘‘revokes, or suspends’’; and 

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

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

18 and 

19 (C) in paragraph (3)— 

20 (i) by striking ‘‘or revoke’’ and insert21 ing ‘‘or revoke or suspend’’; 

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

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

24 and 


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1 (iii) by striking ‘‘to revoke’’ and in2 serting ‘‘to revoke or suspend’’. 

3 (c) AUTHORITY TO PROMULGATE RULES.—Section 

4 926(a) of such title is amended by striking ‘‘only’’. 

5 (d) REPEAL OF RIDERS LIMITING USE OF FUNDS

6 TO DENY LICENSES DUE TO LACK OF BUSINESS ACTIV7 ITY.— 

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

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

11 Consolidated and Further Continuing Appropria12 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

13 112–55; 125 Stat. 609–610) is amended by striking 

14 the 9th proviso. 

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

16 Alcohol, Tobacco, Firearms and Explosives—Sala17 ries and Expenses’’ in title II of division B of the 

18 Consolidated and Further Continuing Appropria19 tions Act, 2013 (18 U.S.C. 923 note; Public Law 

20 113–6; 127 Stat. 247–248) is amended by striking 

21 the 6th proviso. 

22 SEC. 13. INCREASED LICENSING FEES. 

23 (a) FEES FOR LICENSED IMPORTERS, MANUFACTUR24 ERS, AND DEALERS IN FIREARMS AND IMPORTERS AND


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

2 title 18, United States Code, is amended— 

3 (1) in paragraph (1)— 

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

5 ‘‘$1,000’’ and inserting ‘‘$2,000’’; 

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

7 ‘‘$50’’ and inserting ‘‘$100’’; and 

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

9 ‘‘$10’’ and inserting ‘‘$20’’; 

10 (2) in paragraph (2)— 

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

12 ‘‘$1,000’’ and inserting ‘‘$2,000’’; and 

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

14 ‘‘$50’’ and inserting ‘‘$100’’; and 

15 (3) in paragraph (3)— 

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

17 ‘‘$1,000’’ and inserting ‘‘$2,000’’; and 

18 (B) in subparagraph (B)— 

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

20 ‘‘$400’’; and 

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

22 ‘‘$180’’. 

23 (b) FEES FOR LICENSED COLLECTORS.—Section 

24 923(b) of such title is amended by striking ‘‘$10’’ and in25 serting ‘‘$20’’. 


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1 SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFEC2 TIVE DATE OF LICENSE REVOCATION. 

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

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

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

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

7 cause,’’. 

8 SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED 

9 FOR A CRIME PUNISHABLE BY IMPRISON10 MENT FOR A TERM EXCEEDING ONE YEAR. 

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

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

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

14 (b) through (e), respectively. 

15 (b) CONFORMING AMENDMENTS.—Section 922 of 

16 such title is amended— 

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

18 striking ‘‘licensed importer, licensed manufacturer, 

19 licensed dealer, or licensed collector who pursuant to 

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

21 precluded from dealing in firearms or ammunition, 

22 or to a’’; 

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

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

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

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


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1 SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DIS2 ABILITY RELIEF APPLICATION PENDING. 

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

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

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

6 subsection shall not be interpreted to prohibit the Attorney 

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

8 permitting the licensee to continue operations while an ap9 plication for relief from disabilities is pending.’’. 

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

11 SALE OF LONG GUNS TO RESIDENTS OF AN12 OTHER STATE. 

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

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

15 contrary,’’. 

16 SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER 

17 OF FIREARM WITHOUT CONDUCTING A BACK18 GROUND CHECK. 

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

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

21 in the case of a subsequent violation, shall immediately 

22 suspend or revoke any license issued to the licensee under 

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

24 to $20,000’’ before the period. 


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1 SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DIS2 ABILITY OR NOTICE OF LICENSE SUSPEN3 SION, REVOCATION OR DENIED RENEWAL. 

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

5 States Code, is amended by adding at the end the fol6 lowing: 

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

8 licensed manufacturer, licensed dealer, licensed collector, 

9 or licensed facilitator who incurs a disability imposed by 

10 Federal laws with respect to the acquisition, receipt, trans11 fer, shipment, transportation, or possession of firearms or 

12 ammunition during the term of a license issued under this 

13 chapter or while an application to renew such a license 

14 is pending, or who has been notified by the Attorney Gen15 eral that a license issued to the licensee under this chapter 

16 has been suspended or revoked or that an application of 

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

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

19 ‘‘(i) into the personal collection of the li20 censee; or 

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

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

23 law enforcement agency; or 

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

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

26 Attorney General may issue a written waiver of paragraph 


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1 (1) if the licensee authorizes the Attorney General to in2 spect the records and inventory of the licensee at any time 

3 to ensure that the licensee is in compliance with this chap4 ter.’’. 

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

6 amended by adding at the end the following: 

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

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

9 1 year, or both.’’. 

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

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

12 setting forth the provisions of Federal law and regulation 

13 that prohibit a person not licensed under this chapter from 

14 engaging in the business of dealing in firearms and the 

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

16 SEC. 20. REGULATION OF FACILITATORS OF FIREARM 

17 TRANSFERS. 

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

19 States Code, is amended by adding at the end the fol20 lowing: 

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

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

23 per year.’’. 


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1 (b) COMPLETED FACILITATED SALES.—Section 923 

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

3 following: 

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

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

6 commercial marketplace that any offer for firearm 

7 sales, purchases, or other transfers made using its 

8 commercial marketplace may be completed only with 

9 the assistance of a licensed importer, licensed manu10 facturer, or licensed dealer, who must take posses11 sion of the firearm directly from the transferor for 

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

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

14 complete all firearms sales, purchases, or other 

15 transfers; and 

16 ‘‘(C) maintain records of any such sale, pur17 chase, or other transfer which shall include the date 

18 of the offer, the name of the offeror, and the name 

19 and the licensee number of the licensee that will 

20 take possession of the firearm directly from the 

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

22 caliber or gauge of the firearm involved. 

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

24 of using its commercial marketplace, that, before offering 

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


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1 dealer that will take possession of the firearm and com2 plete the sale. 

3 ‘‘(3) On taking possession of a firearm sold, pur4 chased, or otherwise transferred in such a commercial 

5 marketplace, a licensee shall comply with all requirements 

6 of this chapter as if the licensee were transferring the fire7 arm from the inventory of the licensee to the unlicensed 

8 transferee.’’. 

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

10 amended— 

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

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

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

14 ownership of a firearm using a commercial marketplace 

15 of a licensed facilitator in order to complete a firearm 

16 transaction as described in paragraph (1) of this sub17 section, knowingly transfers the firearm to a person not 

18 licensed under this chapter without a licensed importer, 

19 licensed manufacturer, or licensed dealer first taking pos20 session of the firearm for the purpose of complying with 

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

22 not more than 1 year, or both, except that if transfer to, 

23 or receipt of the firearm by the transferee violates sub24 section (d), (g), or (n) of section 922, or the firearm is 

25 used to commit a crime of violence (as defined in section 


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1 (c)(3) of this section) or drug trafficking crime (as defined 

2 in subsection (c)(2) of this section), the transferor shall 

3 be fined under this title, imprisoned not more than 10 

4 years, or both.’’. 

5 (d) CONFORMING AMENDMENTS.— 

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

7 (A) in subsection (a)(1)— 

8 (i) by striking ‘‘or’’ at the end of sub9 paragraph (A); 

10 (ii) by adding ‘‘or’’ at the end of sub11 paragraph (B); and 

12 (iii) by adding at the end the fol13 lowing: 

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

15 in the business of hosting a commercial market16 place in which offers for firearms sales, pur17 chases, or other transfers are allowed to be 

18 made;’’; 

19 (B) in subsection (a)(6)— 

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

21 and inserting ‘‘licensed collector, or li22 censed facilitator’’; and 

23 (ii) by striking ‘‘or collector’’ and in24 serting ‘‘collector, or facilitator’’; and 


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1 (C) in subsection (m), by striking ‘‘or li2 censed collector’’ and inserting ‘‘licensed col3 lector, or licensed facilitator’’. 

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

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

6 by inserting ‘‘or facilitate firearm sales, pur7 chases or other transfers’’ before ‘‘during the 

8 period stated in the license’’; 

9 (B) in subsection (g)(1)(A)— 

10 (i) in the first sentence, by striking 

11 ‘‘and licensed dealer’’ and inserting ‘‘li12 censed dealer, and licensed facilitator’’; 

13 and 

14 (ii) in the last sentence, by inserting 

15 ‘‘licensed facilitator,’’ before ‘‘or any li16 censed importer’’; and 

17 (C) in subsection (j), by striking ‘‘or li18 censed dealer’’ the 1st place it appears and in19 serting ‘‘licensed dealer, or licensed facilitator’’. 

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

21 by striking ‘‘or licensed collector’’ and inserting ‘‘li22 censed collector, or licensed facilitator’’. 

23 SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS. 

24 (a) REQUIREMENTS.— 


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1 (1) BACKGROUND CHECKS REQUIRED BEFORE

2 ISSUANCE OR RENEWAL OF DEALERS LICENSE.— 

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

4 amended by inserting after the 1st sentence the fol5 lowing: ‘‘Notwithstanding the preceding sentence, 

6 the Attorney General may not issue or renew a li7 cense unless the Attorney General has contacted the 

8 national instant criminal background check system 

9 established under section 103 of the Brady Handgun 

10 Violence Prevention Act to determine whether it 

11 would be unlawful for the applicant or any employee 

12 of the applicant identified by the applicant on the 

13 application as trusted with the possession or receipt 

14 of any firearm, to be transferred or receive a fire15 arm, and the system has notified the Attorney Gen16 eral that the information available to the system 

17 does not demonstrate that the transfer to or receipt 

18 of a firearm by the applicant or any such employee 

19 would violate subsection (d), (g), or (n) of section 

20 922 (as applicable) or by State, local, or Tribal law 

21 where the business premises of the applicant subject 

22 to the license is located.’’. 

23 (2) BACKGROUND CHECK REQUIRED BEFORE

24 FIREARM POSSESSION BY DEALER EMPLOYEE.—SecVerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478

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1 tion 923(g) of such title is further amended by add2 ing at the end the following: 

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

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

5 dealer conducts business subject to license under this 

6 chapter, unless— 

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

8 required by State and local law to possess or receive 

9 a firearm; 

10 ‘‘(B) the licensed dealer has contacted the na11 tional instant criminal background check system es12 tablished under section 103 of the Brady Handgun 

13 Violence Prevention Act to determine whether it 

14 would be unlawful for the individual to receive a fire15 arm; and 

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

17 the information available to the system does not 

18 demonstrate that the receipt of a firearm by the in19 dividual would violate subsection (d), (g), or (n) of 

20 section 922 (as applicable) or by State, local, or 

21 Tribal law.’’. 

22 (b) AUTHORITY OF NICS SYSTEM TO RESPOND TO

23 LICENSED DEALER REQUEST FOR CRIMINAL BACK24 GROUND CHECK OF EMPLOYEE OR APPLICANT FOR EM25 PLOYMENT.—Section 103(b)(2) of the Brady Handgun 


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1 Violence Prevention Act (34 U.S.C. 40901(b)(2)) is 

2 amended— 

3 (1) in the heading, by striking ‘‘VOLUNTARY’’ 

4 and inserting ‘‘COMPULSORY’’; and 

5 (2) in subparagraph (A), by striking ‘‘volun6 tarily’’. 

7 (c) AUTHORITY OF NICS SYSTEM TO SEARCH NA8 TIONAL DATA EXCHANGE.—Section 103(e)(1) of the 

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

10 40901(e)(1)) is amended by adding at the end the fol11 lowing: 

12 ‘‘(L) SEARCH OF NATIONAL DATA EX13 CHANGE DATABASE.—The system established 

14 under this section shall include a search of the 

15 database of the National Data Exchange when 

16 conducting a background check under this sec17 tion.’’. 

18 SEC. 22. LIABILITY STANDARDS. 

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

20 18, United States Code, is amended— 

21 (1) in subsection (d)(1)(D), by striking ‘‘will22 fully’’ and inserting ‘‘knowingly’’; and 

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

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


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

2 title is amended— 

3 (1) in subsection (a)(1)(D), by striking ‘‘will4 fully’’ and inserting ‘‘knowingly’’; and 

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

6 and inserting ‘‘knowing’’. 

7 SEC. 23. CIVIL ENFORCEMENT. 

8 (a) FINES FOR ENGAGING IN THE BUSINESS WITH9 OUT A LICENSE.—Section 924(n), of title 18, United 

10 States Code, is amended— 

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

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

13 ‘‘(2) In the case of a person who the Attorney Gen14 eral has found to be engaged in conduct that constitutes 

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

16 shall transmit to the persona written notice specifying the 

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

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

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

20 $20,000.’’. 

21 (b) TIERED PENALTIES FOR REPEATED VIOLATIONS

22 OF REGULATIONS BY LICENSED DEALERS.—Section 924 

23 of such title is amended by adding at the end the fol24 lowing: 


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1 ‘‘(q) PENALTIES RELATING TO VIOLATIONS OF REG2 ULATIONS BY LICENSED DEALERS.— 

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

4 Attorney General has found to be in violation of a 

5 regulation prescribed under section 926, the Attor6 ney General shall— 

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

8 negligence by the licensed dealer— 

9 ‘‘(i) in the case of the 1st such viola10 tion by the licensed dealer, if not preceded 

11 by a violation to which subparagraph (B) 

12 applies, transmit to the licensed dealer a 

13 written notice specifying the violation, 

14 which shall include a copy of the provision 

15 of law or regulation violated and a plan for 

16 how to cure the violation; 

17 ‘‘(ii) in the case of the 2nd such viola18 tion by the licensed dealer, if not preceded 

19 by a violation to which subparagraph (B) 

20 applies, impose a civil money penalty in an 

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

22 not more than $20,000; 

23 ‘‘(iii) in the case of the 3rd such viola24 tion by the licensed dealer, if not preceded 

25 by a violation to which subparagraph (B) 


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1 applies, suspend the license to deal in fire2 arms issued to the licensed dealer under 

3 this chapter until the violation ceases; 

4 ‘‘(iv) in the case of the 4th such viola5 tion by the licensed dealer, whether or not 

6 preceded by a violation to which subpara7 graph (B) applies, revoke the license; or 

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

9 by the licensed dealer, if preceded by a vio10 lation to which subparagraph (B) applies, 

11 apply the penalty authorized under this 

12 subsection that is 1 level greater in sever13 ity than the level of severity of the penalty 

14 most recently applied to the licensed dealer 

15 under this subsection; or 

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

17 gross negligence— 

18 ‘‘(i) in the case of the 1st such viola19 tion by the licensed dealer, impose a civil 

20 money penalty in an amount that is not 

21 less than $2,500 and not more than 

22 $20,000; 

23 ‘‘(ii) in the case of the 2nd such viola24 tion by the licensed dealer— 


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1 ‘‘(I) impose a civil money penalty 

2 in an amount equal to $20,000; 

3 ‘‘(II) suspend the license to deal 

4 in firearms issued to the licensed deal5 er under this chapter until the viola6 tion ceases; or 

7 ‘‘(III) revoke the license; or 

8 ‘‘(iii) in the case of the 3rd or subse9 quent such violation by the licensed dealer, 

10 apply the penalty authorized under this 

11 subsection that is 2 levels greater in sever12 ity than the level of severity of the penalty 

13 most recently applied to the licensed dealer 

14 under this subsection. 

15 ‘‘(2) In the case of any such violation, if the At16 torney General finds that the nature of the violation 

17 indicates that the continued operation of a firearms 

18 business by the licensed dealer presents an imminent 

19 risk to public safety, the Attorney General shall, not20 withstanding paragraph (1), immediately suspend 

21 the license to deal in firearms issued to the licensed 

22 dealer under this chapter and secure the firearms in23 ventory of the licensed dealer, until the violation 

24 ceases.’’. 


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

2 CRIMINAL PROCEEDINGS TERMINATED. 

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

4 amended by striking paragraph (4). 

5 SEC. 25. REPEAL OF CERTAIN LIMITATIONS. 

6 (a) LIMITATIONS RELATED TO USE OF FIREARMS

7 TRACE DATA.— 

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

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

11 Consolidated and Further Continuing Appropria12 tions Act, 2012 (18 U.S.C. 923 note; Public Law 

13 112–55; 125 Stat. 609–610) is amended by striking 

14 the 6th proviso. 

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

16 of Alcohol, Tobacco, Firearms and Explosives—Sala17 ries and Expenses’’ in title II of division B of the 

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

19 923 note; Public Law 111–117; 123 Stat. 3128– 

20 3129) is amended by striking ‘‘beginning in fiscal 

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

22 year 2010’’. 

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

24 of Alcohol, Tobacco, Firearms and Explosives—Sala25 ries and Expenses’’ in title II of division B of the 

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


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

2 amended by striking ‘‘beginning in fiscal year 2009 

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

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

5 of Alcohol, Tobacco, Firearms and Explosives—Sala6 ries and Expenses’’ in title II of division B of the 

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

8 923 note; Public Law 110–161; 121 Stat. 1903– 

9 1904) is amended by striking ‘‘beginning in fiscal 

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

11 year 2008’’. 

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

13 of Alcohol, Tobacco, Firearms and Explosives—Sala14 ries and Expenses’’ in title I of the Science, State, 

15 Justice, Commerce, and Related Agencies Appro16 priations Act, 2006 (18 U.S.C. 923 note; Public 

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

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

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

20 I of division B of the Consolidated Appropriations 

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

22 447; 118 Stat. 2859–2860) is amended by striking 

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

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

25 Consolidated Appropriations Resolution, 2003 (5 


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

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

3 respect to any fiscal year’’. 

4 (b) LIMITATIONS RELATING TO CONSOLIDATING AND

5 CENTRALIZING RECORDS.—The matter under the heading 

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

7 Salaries and Expenses’’ in title I of division B of the Con8 solidated and Further Continuing Appropriations Act, 

9 2012 (18 U.S.C. 923 note; Public Law 112–55; 125 Stat. 

10 609) is amended in the 1st proviso by striking ‘‘or here11 after’’. 

12 (c) REQUIREMENT TO DESTROY INSTANT CRIMINAL

13 BACKGROUND CHECK RECORDS WITHIN 24 HOURS.— 

14 Section 511 of the Consolidated and Further Continuing 

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

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

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

18 through ‘‘(1)’’; and 

19 (2) by striking the semicolon and all that fol20 lows and inserting a period. 

21 SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OP22 ERATION INVESTIGATORS FOR BATFE. 

23 The Attorney General may hire 650 Industry Oper24 ation Investigators for the Bureau of Alcohol, Tobacco, 

25 Firearms and Explosives, to be distributed among the varVerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478

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1 ious field divisions to match the number and distribution 

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

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

4 out this Act and any Industry Operation Investigators au5 thorized by other law. 

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

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

8 Act, the Attorney General shall submit to the Congress 

9 and publish publicly on the website of the Department of 

10 Justice a written report on the implementation of this Act 

11 and the amendments made by this Act, including any 

12 steps needed to complete the implementation, which shall 

13 identify any additional resources that are required to con14 duct regular inspections under chapter 44 of title 18, 

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

16 amendments made by this Act are enforced against non17 compliant federally licensed firearms dealers in a timely 

18 manner. 

19 SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT 

20 AND ANALYSIS. 

21 Within 2 years after the date of enactment of this 

22 Act, and annually thereafter, the Attorney General shall 

23 submit to the Congress and publish publicly on the website 

24 of the Department of Justice, a written report which 

25 states— 


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1 (1) the number of inspections conducted of 

2 Type 01, 02, and 07 Federal firearm licensees (deal3 ers, pawnbrokers, and manufacturers) in the pre4 ceding 24 months, by each field division of the Bu5 reau of Alcohol, Tobacco, Firearms and Explosives 

6 (in this section referred to as the ‘‘BATFE’’), in7 cluding by the number of inspections of high risk 

8 dealers and non-high risk dealers; 

9 (2) the number of security inspections prompt10 ed by dealer reports of lost or stolen firearms, and 

11 the number of follow-up inspections conducted 6 

12 months after an inspection revealing a violation; 

13 (3) the average time spent on high risk, non14 high risk, security, and follow up inspections; and 

15 (4) an analysis of the most frequently cited vio16 lations and corrective actions or penalties imposed in 

17 each instance, including— 

18 (A) the number of licenses recommended 

19 to be suspended or revoked; 

20 (B) the number of licensees sent notices of 

21 suspension or revocation; 

22 (C) the number of hearings requested by 

23 licensees on receipt of notice of suspension or 

24 revocation; 


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1 (D) the number of suspension or revoca2 tion hearings initiated in a prior 12-month pe3 riod that remain ongoing during the 12-month 

4 period covered by the report; and 

5 (E) the decision ultimately rendered in 

6 each such matter by the Director of the 

7 BATFE. 

8 SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULA9 TIONS. 

10 Within two years after the date of enactment of this 

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

12 all regulations required to carry out this Act and the 

13 amendments made by this Act. 

Æ 


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