Crackdown on Deadbeat Gun Dealers Act of 2016

To ensure greater accountability by licensed firearms dealers. 1. Short title This Act may be cited as the Crackdown on Deadbeat Gun Dealers Act of 2016 2. Increasing the number of allowed compliance inspections of firearms dealers Section 923(g)(1)(B)(ii)(I) of title 18, United States Code, is amended by striking once 3 times 3. Increasing penalties on firearms licensees Section 924(a)(3) of title 18, United States Code, is amended by striking one year 5 years 4. Serious recordkeeping offenses that aid gun trafficking Section 924(a)(3) of title 18, United States Code, is amended by striking the period and inserting ; but if the violation is in relation to an offense under subsection (a)(6) or (d) of section 922, shall be fined under this title, imprisoned not more than 10 years, or both. 5. Suspension of firearms dealer’s license and civil penalties for violations of the Gun Control Act Subsections (e) and (f) of section 923 of title 18, United States Code, are amended to read as follows: (e) The Attorney General may, after notice and opportunity for hearing, suspend or revoke any license issued under this section, or may subject the licensee to a civil penalty of not more than $10,000 per violation, if the holder of the license has willfully violated any provision of this chapter or any rule or regulation prescribed by the Attorney General under this chapter or fails to have secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees (except that in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee, the dealer shall not be considered to be in violation of the requirement to make available such a device). The Attorney General may, after notice and opportunity for hearing, suspend or revoke the license of, or assess a civil penalty of not more than $10,000 on, a dealer who willfully transfers armor piercing ammunition. The Attorney General may at any time compromise, mitigate, or remit the liability with respect to any willful violation of this chapter or any rule or regulation prescribed by the Attorney General under this chapter. The Attorney General’s actions under this subsection may be reviewed only as provided in subsection (f). (f) (1) Any person whose application for a license is denied and any holder of a license which is suspended or revoked or who is assessed a civil penalty shall receive a written notice from the Attorney General stating specifically the grounds upon which the application was denied or upon which the license was suspended or revoked or the civil penalty assessed. Any notice of a suspension or revocation of a license shall be given to the holder of the license before the effective date of the suspension or revocation. (2) If the Attorney General denies an application for a license, or suspends or revokes a license, or assesses a civil penalty, the Attorney General shall, upon request by the aggrieved party, promptly hold a hearing to review the denial, suspension, revocation, or assessment. In the case of a suspension or revocation of a license, the Attorney General shall, on the request of the holder of the license, stay the effective date of the suspension or revocation. A hearing under this paragraph shall be held at a location convenient to the aggrieved party. (3) If after a hearing held under paragraph (2) the Attorney General decides not to reverse the decision to deny an application or suspend or revoke a license or assess a civil penalty, the Attorney General shall give notice of the decision to the aggrieved party. The aggrieved party may at any time within 60 days after the date notice is given under this paragraph file a petition with the United States district court for the district in which the party resides or in which the party’s principal place of business is located for a de novo judicial review of the denial, suspension, revocation, or assessment. In a proceeding conducted under this subsection, the court may consider any evidence submitted by the parties to the proceeding whether or not such evidence was considered at the hearing held under paragraph (2). If the court decides that the Attorney General was not authorized to deny the application or to suspend or revoke the license or to assess the civil penalty, the court shall order the Attorney General to take such action as may be necessary to comply with the judgment of the court. . 6. Termination of firearms dealer’s license upon felony conviction Section 925(b) of title 18, United States Code, is amended by striking until any conviction pursuant to the indictment becomes final until the date of any conviction pursuant to the indictment 7. Authority to hire additional personnel The Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives may hire at least 50 additional personnel for the purpose of carrying out additional inspections as provided for in the amendments made by this Act. 8. Report to the Congress The Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives shall submit biennial reports to the Congress on the implementation of this Act, which shall include a statement by the Director as to what additional resources, if any, are necessary in order to implement this Act, and any recommendations of the Director for how better to ensure that firearms dealers are complying with all laws and regulations that apply with respect to dealing in firearms, and that noncompliant firearms dealers are subject to appropriate action in a timely manner.

Summary: Crackdown on Deadbeat Gun Dealers Act of 2016 This bill amends the federal criminal code to authorize the Department of Justice (DOJ) to inspect or examine the inventory and records of a licensed importer, manufacturer, or dealer of firearms to ensure compliance with recordkeeping requirements not more than three times a year (currently, not more than once a year) without reasonable cause and a warrant. It authorizes the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to hire at least 50 additional personnel to carry out the additional inspections. It increases to five years the term of imprisonment for knowingly making a false statement or representation in required firearms records. It authorizes up to 10 years' imprisonment for: (1) providing false statements or identification related to the sale or other disposition of a firearm or ammunition, or (2) selling or otherwise disposing of any firearm or ammunition to any person knowing or having reasonable cause to believe that such person is prohibited from possessing a firearm. The bill authorizes DOJ to suspend a firearms license or subject a licensee to a civil penalty of not more than $10,000 for willfully violating firearms requirements or failing to have secure storage or safety devices available at any place firearms are sold to non-licensees (current law authorizes only license revocation). It permits a licensed firearms importer, manufacturer, dealer, or collector who is indicted for a crime punishable by imprisonment for a term exceeding one year to continue to operate under the license until the date of any conviction pursuant to the indictment (currently, until any conviction pursuant to the indictment becomes final).