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. PA-
NETTA) introduced the following bill; which was referred to the Com-
mittee on the Judiciary 
A BILL 
To modernize the business of selling firearms. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Firearm Li-
censee Act’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) A growing body of evidence demonstrates 
that gun dealers’ sales practices affect the prob-
ability of guns getting to criminals and that policies 
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designed to hold gun sellers accountable can curtail 
the diversion of guns to criminals. 
(2) Federal laws governing firearm dealers have 
not been updated in over 30 years, contain safe-
guards that protect dealers who engage in illegal 
practices from adverse enforcement action, frustrate 
law enforcement efforts to curb gun trafficking and 
violence and are, thus, inadequate to meet the reali-
ties of the twenty-first century. 
(3) The Tiahrt Amendments, for one, severely 
limit the authority of the Bureau of Alcohol, To-
bacco, Firearms and Explosives (ATF) to disclose 
crime gun trace data to the public, prevent the col-
lection of valuable information, and the establish-
ment of effective policies to prevent illegal guns from 
being used in crimes and impede enforcement of the 
gun laws by requiring most background check 
records to be destroyed within 24 hours, and by bar-
ring the Government from requiring annual inven-
tory audits by owners of gun shops. Repealing the 
Tiahrt Amendments would support law enforcement 
efforts and give the public vital information needed 
to craft the most effective policies against illegal 
guns. 
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(4) Additionally, Federal law imposes no re-
quirements that dealers physically secure their high-
ly valuable and lethal inventory. The number of gun 
thefts from licensed gun dealers has increased more 
than the number from any other source. Between 
2013 and 2017, the number of firearms stolen in 
gun-dealer burglaries more than doubled and the 
number of firearms stolen in gun-dealer robberies 
tripled. 
SEC. 3. DEFINITIONS. 
Section 921(a) of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘(36) The term ‘facilitator’ means any person en-
gaged in the business of hosting a commercial marketplace 
in which offers for firearm sales, purchases, or other 
transfers are allowed to be made, except that such a per-
son shall not be considered to be a facilitator with respect 
to any transaction that is made through the use of a 
website or mobile application owned or operated by the 
person if the transaction violates the terms of service of 
the website or mobile application and the person has made 
a good faith effort to enforce the terms of service by, at 
a minimum, auditing firearms transactions on a quarterly 
basis to ensure compliance with this chapter. 
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‘‘(37) The term ‘occasional’ means, with respect to 
transactions, fewer than 5 transactions in a 12-month pe-
riod. 
‘‘(38) The term ‘personal collection’ includes any fire-
arm obtained only for the personal use of an individual 
and not for the purpose of selling or trading, except that 
a firearm obtained through inheritance shall not be consid-
ered part of a personal collection until the firearm has 
been possessed for 1 year. 
‘‘(39) The term ‘business inventory firearm’ means, 
with respect to a person, a firearm required by law to be 
recorded in the acquisition and disposition logs of any fire-
arms business of the person. 
‘‘(40)(A) The term ‘frame or receiver’— 
‘‘(i) means a part of a weapon that provides or 
is intended to provide the housing or structure to 
hold or integrate 1 or more fire control components, 
even if pins or other attachments are required to 
connect those components to the housing or struc-
ture; and 
‘‘(ii) includes a blank, casting, or machined 
body, that requires modification (including machin-
ing, drilling, or molding) to be used as part of a 
functional firearm, and that is designed and in-
tended to be used in the assembly of a functional 
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firearm, unless the blank, casting, or machined body 
has had— 
‘‘(I) its size or external shape altered solely 
to facilitate transportation or storage; or 
‘‘(II) solely its chemical composition al-
tered. 
‘‘(B) For purposes of subparagraph (A)(i), in the 
case of a weapon with more than 1 part that provides the 
housing or a structure designed to hold or integrate 1 or 
more fire control components, each such part shall be con-
sidered a frame or receiver, unless the Attorney General 
has provided otherwise by regulation with respect to the 
specific make and model of weapon on or before January 
1, 2022. 
‘‘(C) For purposes of this paragraph, the term ‘fire 
control component’— 
‘‘(i) means a component necessary for a firearm 
to initiate or complete the firing sequence; and 
‘‘(ii) includes a hammer, bolt, breechblock, cyl-
inder, trigger, mechanism, firing pin, striker, and 
slide rails.’’. 
SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION. 
Section 922 of title 18, United States Code, is 
amended by striking subsection (s). 
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SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES. 
(a) SECURITY PLAN SUBMISSION REQUIREMENT.— 
(1) IN GENERAL.—Section 923(d)(1)(G) of title 
18, United States Code, is amended by striking the 
period at the end and inserting ‘‘, and the applicant 
submits with the application a security plan that de-
scribes how the applicant will secure, in accordance 
with the regulations issued under section 926(d), the 
premises from which the applicant will conduct busi-
ness under the license (including in the event of a 
natural disaster or other emergency), and the appli-
cant certifies that, if issued such a license, the appli-
cant will comply with the plan; and’’. 
(2) WRITTEN APPROVAL REQUIRED BEFORE LI-
CENSE RENEWAL.—Section 923(d)(1) of such title is 
amended— 
(A) in subparagraph (F)(iii), by striking 
‘‘and’’ after the semicolon; and 
(B) by adding at the end the following: 
‘‘(H) in the case of an application to renew a 
license to deal in firearms— 
‘‘(i) the license is not suspended; 
‘‘(ii) the applicant has not had a license 
issued under this chapter revoked; and 
‘‘(iii) the Attorney General has inspected 
the premises and provided written approval of 
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the security plan submitted by the applicant 
under subparagraph (G).’’. 
(3) APPLICABILITY.—A person who, on the 
date of the enactment of this Act, is a licensed deal-
er (as defined in section 921(a)(11) of title 18, 
United States Code) and whose license to deal in 
firearms, issued under chapter 44 of such title, will 
not expire before the end of the 1-year period that 
begins with the date regulations are prescribed 
under section 926(d) of such title, shall submit to 
the Attorney General a plan of the type described in 
section 923(d)(1)(G) of such title not later than the 
end of that period. Any plan so submitted shall be 
considered to be submitted pursuant to such section 
923(d)(1)(G). 
(b) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI-
CATION REQUIREMENT.— 
(1) IN GENERAL.—Section 923 of such title is 
amended by adding at the end the following: 
‘‘(m)(1) Each licensed manufacturer, licensed im-
porter, and licensed dealer shall annually certify to the At-
torney General that each premises from which the licensee 
conducts business subject to license under this chapter is 
in compliance with the regulations prescribed under sec-
tion 926(d), and include with the certification the results 
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of a reconciliation of the resale firearms then in the busi-
ness inventory of the licensee against the resale firearms 
in the business inventory of the licensee at the time of 
the most recent prior certification (if any) under this para-
graph, and all dispositions and acquisitions of resale fire-
arms in the year covered by the certification, identifying 
and reporting any missing firearm. 
‘‘(2) The Attorney General shall impose a civil money 
penalty of not more than $5,000 on, and may suspend 
the license issued under this section to, a licensee who fails 
to comply with paragraph (1).’’. 
(2) APPLICABILITY.—The amendment made by 
paragraph (1) of this subsection shall not apply to 
a person who, on the date of the enactment of this 
Act, is a licensee referred to in section 923(m) of 
title 18, United States Code, until the end of the 1- 
year period that begins with the date the person 
complies with subsection (a)(2) of this section. 
(c) REGULATIONS.— 
(1) IN GENERAL.—Section 926 of such title is 
amended by adding at the end the following: 
‘‘(d) The Attorney General shall prescribe such regu-
lations as are necessary to ensure that any premises at 
which a licensee referred to in section 923(m) conducts 
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business is secure from theft, which shall include requir-
ing— 
‘‘(1) compliance with the security plan sub-
mitted 
by 
the 
licensee 
pursuant 
to 
section 
923(d)(1)(G); 
‘‘(2) the use of locked metal cabinets and fire-
proof safes; 
‘‘(3) security systems, video monitoring, and 
antitheft alarms; 
‘‘(4) security gates, strong locks, and site hard-
ening; 
‘‘(5) concrete bollards and other access controls, 
if necessary; and 
‘‘(6) the use of any other security-enhancing 
features appropriate for the licensee’s specific cir-
cumstances.’’. 
(2) 
APPLICABILITY.—The 
regulations 
pre-
scribed under section 926(d)(1) of such title shall 
not apply to a person who, on the date of the enact-
ment of this Act, is a licensee referred to in section 
923(m) of such title, until the earlier of— 
(A) the date the person complies with sub-
section (b)(2) of this section; or 
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(B) the end of the 1-year period that be-
gins with the date regulations are prescribed 
under section 926(d) of such title. 
SEC. 6. BUSINESS INVENTORY FIREARMS. 
(a) REQUIREMENT TO TRANSFER FIREARM IN PER-
SONAL COLLECTION TO BUSINESS INVENTORY BEFORE 
DISPOSITION.—Section 923(c) of title 18, United States 
Code, is amended— 
(1) by striking the 2nd sentence and inserting 
the following: ‘‘Nothing in this chapter shall be con-
strued to prohibit a licensed manufacturer, licensed 
importer, or licensed dealer from maintaining a per-
sonal collection of firearms.’’; 
(2) by striking the 3rd sentence; and 
(3) by adding at the end the following: ‘‘Any 
firearm disposed of by a licensee shall be from the 
business inventory of the licensee.’’. 
(b) 
LICENSEE
FIREARMS
INVENTORY.—Section 
923(g) of such title is amended by adding at the end the 
following: 
‘‘(8) Each licensee shall conduct a quarterly physical 
check of the firearms inventory of the business of the li-
censee licensed under this chapter and report any lost, sto-
len, or unaccounted for firearm to the Attorney General 
and appropriate local authorities in accordance with regu-
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lations which shall be prescribed by the Attorney General 
and shall require, at a minimum, the recording of the date 
of receipt of the firearm, the name, address, and license 
number, if applicable, of the person from whom the fire-
arm was received, the name of the manufacturer and, if 
applicable, importer of the firearm, the model, serial num-
ber, type, and caliber or gauge of the firearm, and the 
date of the sale or other disposition of the firearm. This 
chapter shall not be interpreted to prohibit the Attorney 
General from, at any time, requiring the regular or one- 
time submission of the inventory records of a licensee to 
ensure that the licensee is in compliance with this chap-
ter.’’. 
(c) REPEAL OF LIMITATIONS ON IMPOSITION OF RE-
QUIREMENT THAT FIREARMS DEALERS CONDUCT PHYS-
ICAL CHECK OF FIREARMS INVENTORY.— 
(1) The 5th proviso under the heading ‘‘Bureau 
of Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2013 (18 U.S.C. 923 note; Public Law 
113–6; 127 Stat. 248) is amended by striking ‘‘and 
any fiscal year thereafter’’. 
(2) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
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ries and Expenses’’ in title I of division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2012 (18 U.S.C. 923 note; Public Law 
112–55; 125 Stat. 609–610) is amended by striking 
the 7th proviso. 
(3) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of Division B of the 
Consolidated Appropriations Act of 2010 (18 U.S.C. 
923 note; Public Law 111–117; 123 Stat. 3128) is 
amended by striking ‘‘or any other Act’’ in the 7th 
proviso. 
(4) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of Division B of the 
Omnibus Appropriations Act of 2009 (18 U.S.C. 
923 note; Public Law 111–8; 123 Stat. 574) is 
amended by striking ‘‘or any other Act’’ in the 7th 
proviso. 
(5) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of Division B of the 
Consolidated Appropriations Act of 2008 (18 U.S.C. 
923 note; Public Law 110–161; 121 Stat. 1903) is 
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amended by striking ‘‘or any other Act’’ in the 7th 
proviso. 
(6) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of the Science, State, 
Justice, Commerce And Related Agencies Appropria-
tions Act of 2006 (18 U.S.C. 923 note; Public Law 
109–108; 119 Stat. 2295) is amended by striking 
‘‘or any other Act’’ in the 7th proviso. 
(7) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of Division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2005 (18 U.S.C. 923 note; Public Law 
108–447; 118 Stat. 2859–2860) is amended by 
striking ‘‘or any other Act’’ in the 7th proviso. 
(8) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of Division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2004 (18 U.S.C. 923 note; Public Law 
108–199; 1185 Stat. 53) is amended by striking ‘‘or 
any other Act’’ in the 7th proviso. 
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SEC. 7. ELECTRONIC RECORDS. 
(a) RECORDS RETENTION AND SUBMISSION.—Sec-
tion 923(g) of title 18, United States Code, is amended— 
(1) in paragraph (1)(A)— 
(A) in the 1st sentence, by inserting ‘‘, ex-
cept that, notwithstanding any other provision 
of law, as of the effective date of the Federal 
Firearm Licensee Act, records prepared by li-
censees under this chapter of the sale or other 
disposition of firearms, including each firearms 
transaction record, and the corresponding 
record of receipt of such firearms, shall be re-
tained at the business premises readily acces-
sible for inspection under this chapter until the 
business is discontinued’’ before the period; and 
(B) by striking the 2nd sentence; 
(2) in paragraph (5)(A), by inserting ‘‘or elec-
tronically as may be’’ after ‘‘submit on a form’’; and 
(3) in paragraph (7), by inserting ‘‘, electroni-
cally,’’ after ‘‘orally’’. 
(b) RECORDS DATABASES.—Section 923(g) of such 
title is further amended by adding at the end the fol-
lowing: 
‘‘(9)(A) Within 3 years after the date of enactment 
of this paragraph, the National Tracing Center of the Bu-
reau of Alcohol, Tobacco, Firearms and Explosives shall 
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establish and maintain electronic, searchable databases of 
all records regarding the importation, production, ship-
ment, receipt, sale, or other disposition of firearms re-
quired to be submitted by licensees to the Attorney Gen-
eral under this chapter. 
‘‘(B) Each licensee under this chapter may provide 
the National Tracing Center with electronic access, con-
sistent with the requirements of this paragraph, to all 
records within the possession of the licensee that are re-
quired to be kept under this chapter. 
‘‘(C) The National Tracing Center— 
‘‘(i) shall have remote access to query, search, 
or otherwise access the electronic databases de-
scribed in this paragraph; and 
‘‘(ii) with the permission of a State, or political 
subdivision of a State, may query, search, or other-
wise access the databases of the firearms registra-
tion system or pawnbroker records system of the 
State or political subdivision. 
‘‘(D) The National Tracing Center may query, 
search, or otherwise access the electronic databases de-
scribed in this paragraph only to obtain information re-
lated to any Federal, State, local, tribal, or foreign crimi-
nal investigation. 
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‘‘(E) The databases established under this para-
graph— 
‘‘(i) shall be electronically searchable by date of 
disposition, license number, and the information 
identified on each firearm or other firearm 
descriptor, including the manufacturer, importer, 
model, serial number, type, and caliber or gauge; 
‘‘(ii) shall not be electronically searchable by 
the personally identifiable information of any indi-
vidual, without a warrant authorizing such a search; 
and 
‘‘(iii) shall include in search results the entire 
contents of the relevant records kept by the li-
censee.’’. 
(c) VIDEO RECORDINGS
OF SALES
AND TRANS-
FERS.—Section 923(g) of such title is further amended 
by adding to the end the following: 
‘‘(10) In accordance with regulations promulgated by 
the Attorney General, each licensed dealer operating a lo-
cation at which firearms are sold to a person not licensed 
under this chapter shall— 
‘‘(A) maintain video surveillance of all areas 
within each premises where firearms in the business 
inventory of the licensee are sold or transferred; 
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‘‘(B) retain records of the surveillance, includ-
ing any sound recording obtained from the surveil-
lance, for a period of not less than 90 days; and 
‘‘(C) post a sign in a conspicuous place and at 
each public entrance to the retail location, in block 
letters not less than 1 inch in height, stating that 
the premises are under video surveillance.’’. 
(d) INCREASED PENALTIES FOR LICENSEE VIOLA-
TIONS RELATING
TO ACQUISITION
AND DISPOSITION 
RECORDS.—Section 924(a)(3) of such title is amended— 
(1) in the matter following subparagraph (B), 
by striking ‘‘one year’’ and inserting ‘‘5 years’’; and 
(2) by adding at the end the following: ‘‘If the 
conduct described in subparagraph (A) or (B) is in 
relation to an offense under subsection (a)(6) or (d) 
of section 922, the licensed dealer, licensed importer, 
licensed manufacturer, licensed collector, or licensed 
facilitator shall be fined under this title, imprisoned 
not more than 10 years, or both.’’. 
(e) ELIMINATION OF LIMITATION ON CENTRALIZING 
RECORDS.—Section 926(a) of such title is amended in the 
matter following paragraph (3) by striking ‘‘records re-
quired to be maintained under this chapter or any portion 
of the contents of such records, be recorded at or trans-
ferred to a facility owned, managed, or controlled by the 
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United States or any State or any political subdivision 
thereof, nor that.’’. 
(f) ELECTRONIC RECORDKEEPING ADOPTION AND 
IMPLEMENTATION.—Section 926 of such title is further 
amended by adding at the end the following: 
‘‘(e) The Attorney General— 
‘‘(1) shall facilitate and incentivize licensee con-
version to, and adoption of, electronic recordkeeping 
solutions that enable electronic completion and sub-
mission to the Attorney General of all records re-
quired to be maintained under this chapter; 
‘‘(2) shall facilitate digital capture of dealer 
paper records, the integration and indexing of data 
onto a platform accessible by law enforcement au-
thorities for purposes of investigating a violent crime 
or crime gun trace; 
‘‘(3) shall facilitate remote access to electronic 
records of licensed dealers by law enforcement au-
thorities for purposes of investigating a violent crime 
or crime gun trace, and dealer access to only their 
own records; and 
‘‘(4) shall not remotely access or search elec-
tronic records of licensed dealers without a warrant 
authorizing such a search.’’. 
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SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS. 
Section 922(t)(1)(B)(ii) of title 18, United States 
Code, is amended by adding at the end, before the semi-
colon, the following: ‘‘, if the licensee notifies the Attorney 
General that such firearm has been transferred to such 
person no later than the close of business on the day that 
the firearm is transferred’’. 
SEC. 9. MULTIPLE FIREARM SALES RECORDS AND RE-
PORTS. 
(a) EXPANDING REPORTING REQUIREMENT TO CER-
TAIN LONG GUNS.—Section 923(g)(3)(A) of title 18, 
United States Code, is amended— 
(1) by striking ‘‘pistols, or revolvers, or any 
combination of pistols and revolvers’’ and inserting 
‘‘pistols, revolvers, semiautomatic rifles or shotguns, 
or rifles or shotguns capable of accepting a high ca-
pacity magazine, or any combination of such weap-
ons’’; and 
(2) by inserting after the 1st sentence the fol-
lowing: ‘‘In the preceding sentence, the term ‘high 
capacity magazine’ means a magazine capable of 
holding more than 10 rounds of ammunition, and in-
cludes magazines that may be readily converted to 
hold more than 10 rounds of ammunition.’’. 
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(b) REQUIREMENT TO RETAIN INSTANT CRIMINAL 
BACKGROUND
CHECK
RECORDS
FOR
90 BUSINESS 
DAYS.—Section 922(t)(2)(C) of such title is amended— 
(1) by striking ‘‘destroy’’ and inserting ‘‘retain 
for 90 business days’’; 
(2) by striking ‘‘(other than the identifying 
number and the date the number was assigned)’’; 
and 
(3) by inserting ‘‘solely for purposes related to 
discovering misuse or avoidance of the national in-
stant criminal background check system or ensuring 
its proper operation’’ before the period at the end. 
(c) ATTORNEY GENERAL REPORTS OF MULTIPLE 
SALES BY NON-LICENSEES.—Section 923(g)(3) of such 
title is amended— 
(1) by inserting after subparagraph (A) the fol-
lowing: 
‘‘(B) The Attorney General shall prepare a report of 
multiple dispositions of firearms to persons not licensed 
under this chapter, which shall include the names and 
identifying information of transferees appearing in the 
records retained pursuant to section 922(t)(2)(C) on 2 or 
more occasions in any period of 5 consecutive business 
days. The report shall be prepared on a form substantially 
similar to the form created pursuant to subparagraph (A) 
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and include the names and addresses of the licensees who 
requested the background checks pursuant to subsection 
(t). The Attorney General shall forward the report to the 
office designated pursuant to subparagraph (A) and to the 
departments of State police or State law enforcement 
agencies of the State or local law enforcement agencies 
of the local jurisdictions in which the sales or other dis-
positions took place, not later than the close of business 
on the date of the most recent such sale or other disposi-
tion.’’; and 
(2) by redesignating subparagraph (B) as sub-
paragraph (C). 
(d) RECORDS RETENTION TO INVESTIGATE CRIME 
GUNS.—Section 923(g)(3)(C) of such title as redesignated 
by subsection (c)(2) of this section, is further amended— 
(1) by inserting ‘‘a firearm involved in a crime 
or’’ after ‘‘Except in the case of forms and contents 
thereof regarding’’; 
(2) by striking ‘‘, and shall destroy each such 
form and any record of the contents thereof no more 
than 20 days from the date such form is received’’ 
and inserting ‘‘and shall retain each such form and 
any record of the contents of the form for 180 days 
after the date the form is received’’; and 
(3) by striking the 2nd sentence. 
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SEC. 10. SAFETY DEVICES AND WARNINGS TO PUR-
CHASERS. 
Section 922(z) of title 18, United States Code, is 
amended— 
(1) by inserting ‘‘AND WARNINGS
TO PUR-
CHASERS’’ after ‘‘SECURE GUN STORAGE OR SAFE-
TY DEVICE’’; 
(2) by striking ‘‘handgun’’ each place it appears 
and inserting ‘‘firearm’’; and 
(3) by adding at the end the following: 
‘‘(4) WARNINGS TO PURCHASERS.—All licensed 
dealers operating a physical retail location shall post 
conspicuously within the licensed premises all warn-
ings required to be provided to firearms purchasers 
under applicable State and local law. The Attorney 
General shall develop materials regarding suicide 
prevention, securing firearms from loss, theft, or ac-
cess by a minor or prohibited person, and straw pur-
chasing, and provide the materials to licensed deal-
ers who shall disseminate the materials on transfer 
of a firearm to a person not licensed under this 
chapter.’’. 
SEC. 11. INSPECTIONS. 
(a) MANDATED ANNUAL INSPECTIONS
OF HIGH 
RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF 
OTHER LICENSED DEALERS.—Section 923(g)(1)(B) of 
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such title is amended by adding after and below the end 
the following flush sentence: ‘‘Not less frequently than an-
nually, the Attorney General shall inspect or examine the 
inventory, records, and business premises of each licensed 
dealer whom the Attorney General determines to be a high 
risk dealer (based on considerations that shall include 
dealers who have reported a lost or stolen firearm within 
the preceding 5 years, were issued a report of violation, 
received a warning letter, or been the subject of a warning 
conference, or, within the preceding year, to whom were 
traced multiple firearms used in a crime under Federal, 
State, or local law within 3 years after sale by the dealer) 
and may appoint a special master to ensure that such 
dealers comply with all applicable firearm sales laws. The 
special master may use in-store observation, monitor 
records, conduct random and repeated sales integrity 
tests, and design and offer instructional programs pro-
viding best practices sales training to all employees in-
volved in firearms sales until the special master certifies 
that the dealer has complied with all applicable firearms 
sales laws for 3 consecutive years. Not less frequently than 
every 5 years, the Attorney General shall inspect or exam-
ine the inventory, records, and business premises of each 
other licensed dealer. Within 6 months after such an in-
spection reveals a violation of this section or any regula-
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tion prescribed under this chapter, and within 6 months 
after a security inspection conducted under paragraph 
(6)(B)(i) of this subsection, the Attorney General shall 
conduct an inspection to determine whether the violation 
identified in the preceding inspection has been cured.’’. 
(b) ELIMINATION OF LIMIT ON INSPECTION OF LI-
CENSEE RECORDS.—Section 923(g)(1)(B)(ii) of such title 
is amended— 
(1) by striking ‘‘—’’ and all that follows 
through ‘‘(II)’’; and 
(2) by striking ‘‘with respect to records relating 
to a firearm involved in a criminal investigation that 
is traced to the licensee’’. 
(c) MANDATED SECURITY INSPECTION OF DEALERS 
REPORTING
LOST
OR
STOLEN
FIREARMS.—Section 
923(g)(6) of such title is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 
(2) by adding at the end the following: 
‘‘(B)(i) After the Attorney General receives such a 
report from a licensed dealer of the theft of a firearm, 
the Attorney General shall conduct an independent inspec-
tion of the security of the premises at which the theft oc-
curred, which shall include an inspection of the measures 
taken to implement the security plan submitted by the li-
censed dealer pursuant to subsection (d)(1)(G). 
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‘‘(ii) On completion of the security inspection, the At-
torney General shall provide the licensed dealer with— 
‘‘(I) a notice of any violation by the licensed 
dealer of any security requirements prescribed under 
section 926(d); and 
‘‘(II) recommendations for improving security 
of the premises involved.’’. 
(d) ELIMINATION
OF LIMIT
ON INSPECTION
OF 
OTHER PREMISES.—Section 923(j) of such title is amend-
ed by striking the 6th sentence. 
SEC. 
12. 
AUTHORITY 
WITH 
REGARDS 
TO 
LICENSE 
ISSUANCE AND RENEWAL. 
(a) DENIAL AUTHORITY.—Section 923 of title 18, 
United States Code, is amended— 
(1) in subsection (c)— 
(A) by inserting ‘‘(1)’’ before ‘‘Upon’’; 
(B) in the first sentence, by inserting ‘‘, 
subject to paragraph (2),’’ after ‘‘Attorney Gen-
eral shall’’; and 
(C) by adding at the end the following: 
‘‘(2) The Attorney General shall deny an application 
submitted under subsection (a) or (b) if the Attorney Gen-
eral determines— 
‘‘(A) issuing the license would pose a danger to 
public safety; or 
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‘‘(B) that the applicant— 
‘‘(i) is not likely to comply with the law; or 
‘‘(ii) is otherwise not suitable to be issued 
a license.’’; and 
(2) in subsection (d)(1)— 
(A) in the first sentence, by inserting ‘‘and 
renewals thereof’’ after ‘‘this section’’; 
(B) in the matter preceding subparagraph 
(A), by inserting ‘‘, subject to subsection 
(c)(2),’’ after ‘‘shall’’; 
(C) in subparagraph (C), by striking ‘‘not 
willfully violated’’ and inserting ‘‘no uncured 
violations’’; and 
(D) in subparagraph (F)— 
(i) in clause (ii)(II), by striking ‘‘and’’ 
at the end; and 
(ii) by adding at the end the fol-
lowing: 
‘‘(iv) all employees employed in the busi-
ness will be at least the minimum age at which 
individuals may possess a firearm in the locality 
in which the business will be conducted and are 
not prohibited from transporting, shipping, or 
receiving firearms or ammunition in interstate 
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or foreign commerce by subsection (g) or (n) of 
section 922;’’. 
(b) AUTHORITY
TO
REVOKE
OR
SUSPEND
LI-
CENSES.—Section 923 of such title is amended— 
(1) in subsection (e), by striking ‘‘revoke’’ and 
inserting ‘‘revoke or suspend’’; and 
(2) in subsection (f)— 
(A) in paragraph (1)— 
(i) by striking all instances of ‘‘re-
voked’’ and inserting ‘‘revoked or sus-
pended’’; and 
(ii) by striking all instances of ‘‘rev-
ocation’’ and inserting ‘‘revocation or sus-
pension’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘, or revokes’’ and in-
serting ‘‘revokes, or suspends’’; and 
(ii) by striking ‘‘or revocation’’ and 
inserting ‘‘, revocation, or suspension’’; 
and 
(C) in paragraph (3)— 
(i) by striking ‘‘or revoke’’ and insert-
ing ‘‘or revoke or suspend’’; 
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(ii) by striking ‘‘or revocation’’ and 
inserting ‘‘, revocation, or suspension’’; 
and 
(iii) by striking ‘‘to revoke’’ and in-
serting ‘‘to revoke or suspend’’. 
(c) AUTHORITY TO PROMULGATE RULES.—Section 
926(a) of such title is amended by striking ‘‘only’’. 
(d) REPEAL OF RIDERS LIMITING USE OF FUNDS 
TO DENY LICENSES DUE TO LACK OF BUSINESS ACTIV-
ITY.— 
(1) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2012 (18 U.S.C. 923 note; Public Law 
112–55; 125 Stat. 609–610) is amended by striking 
the 9th proviso. 
(2) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2013 (18 U.S.C. 923 note; Public Law 
113–6; 127 Stat. 247–248) is amended by striking 
the 6th proviso. 
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SEC. 13. INCREASED LICENSING FEES. 
(a) FEES FOR LICENSED IMPORTERS, MANUFACTUR-
ERS, AND DEALERS IN FIREARMS AND IMPORTERS AND 
MANUFACTURERS OF AMMUNITION.—Section 923(a) of 
title 18, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking 
‘‘$1,000’’ and inserting ‘‘$2,000’’; 
(B) in subparagraph (B), by striking 
‘‘$50’’ and inserting ‘‘$100’’; and 
(C) in subparagraph (C), by striking 
‘‘$10’’ and inserting ‘‘$20’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking 
‘‘$1,000’’ and inserting ‘‘$2,000’’; and 
(B) in subparagraph (B), by striking 
‘‘$50’’ and inserting ‘‘$100’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking 
‘‘$1,000’’ and inserting ‘‘$2,000’’; and 
(B) in subparagraph (B)— 
(i) by striking ‘‘$200’’ and inserting 
‘‘$400’’; and 
(ii) by striking ‘‘$90’’ and inserting 
‘‘$180’’. 
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(b) FEES
FOR LICENSED COLLECTORS.—Section 
923(b) of such title is amended by striking ‘‘$10’’ and in-
serting ‘‘$20’’. 
SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFEC-
TIVE DATE OF LICENSE REVOCATION. 
Section 923(f)(2) of title 18, United States Code, is 
amended in the 2nd sentence by striking ‘‘shall upon the 
request of the holder of the license’’ and inserting ‘‘may, 
upon a showing by the holder of the license of good 
cause,’’. 
SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED 
FOR A CRIME PUNISHABLE BY IMPRISON-
MENT FOR A TERM EXCEEDING ONE YEAR. 
(a) IN GENERAL.—Section 925 of title 18, United 
States Code, is amended by striking subsection (b) and 
redesignating subsections (c) through (f) as subsections 
(b) through (e), respectively. 
(b) CONFORMING AMENDMENTS.—Section 922 of 
such title is amended— 
(1) in subsection (d), in the 2nd sentence, by 
striking ‘‘licensed importer, licensed manufacturer, 
licensed dealer, or licensed collector who pursuant to 
subsection (b) of section 925 of this chapter is not 
precluded from dealing in firearms or ammunition, 
or to a’’; 
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(2) in subsection (l), by striking ‘‘925(d) of this 
chapter’’ and inserting ‘‘925(c)’’; and 
(3) in subsection (r), by striking ‘‘925(d)(3) of 
this chapter’’ and inserting ‘‘925(c)(3)’’. 
SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DIS-
ABILITY RELIEF APPLICATION PENDING. 
Section 925(b) of title 18, United States Code, as so 
redesignated by section 15(a) of this Act, is further 
amended by striking the 4th sentence and inserting ‘‘This 
subsection shall not be interpreted to prohibit the Attorney 
General from, on a showing by a licensee of good cause, 
permitting the licensee to continue operations while an ap-
plication for relief from disabilities is pending.’’. 
SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN 
SALE OF LONG GUNS TO RESIDENTS OF AN-
OTHER STATE. 
Section 922(b)(3) of title 18, United States Code, is 
amended by striking ‘‘in the absence of evidence to the 
contrary,’’. 
SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER 
OF FIREARM WITHOUT CONDUCTING A BACK-
GROUND CHECK. 
Section 922(t)(5) of title 18, United States Code, is 
amended by inserting ‘‘in the case of the 1st violation and, 
in the case of a subsequent violation, shall immediately 
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suspend or revoke any license issued to the licensee under 
section 923 and impose on the licensee a civil fine equal 
to $20,000’’ before the period. 
SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DIS-
ABILITY OR NOTICE OF LICENSE SUSPEN-
SION, REVOCATION OR DENIED RENEWAL. 
(a) RESTRICTIONS.—Section 922 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(aa)(1) It shall be unlawful for a licensed importer, 
licensed manufacturer, licensed dealer, licensed collector, 
or licensed facilitator who incurs a disability imposed by 
Federal laws with respect to the acquisition, receipt, trans-
fer, shipment, transportation, or possession of firearms or 
ammunition during the term of a license issued under this 
chapter or while an application to renew such a license 
is pending, or who has been notified by the Attorney Gen-
eral that a license issued to the licensee under this chapter 
has been suspended or revoked or that an application of 
the licensee to renew such a license has been denied, to— 
‘‘(A) transfer a business inventory firearm— 
‘‘(i) into the personal collection of the li-
censee; or 
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‘‘(ii) to any person other than a licensee 
under this chapter or a Federal, State, or local 
law enforcement agency; or 
‘‘(B) receive a business inventory firearm. 
‘‘(2) Upon a showing by a licensee of good cause, the 
Attorney General may issue a written waiver of paragraph 
(1) if the licensee authorizes the Attorney General to in-
spect the records and inventory of the licensee at any time 
to ensure that the licensee is in compliance with this chap-
ter.’’. 
(b) PENALTIES.—Section 924(a) of such title is 
amended by adding at the end the following: 
‘‘(8) Whoever knowingly violates section 922(aa) 
shall be fined under this title, imprisoned not more than 
1 year, or both.’’. 
(c) NOTICE REQUIREMENT.—Section 923(f)(1) of 
such title is amended in the 1st sentence by inserting ‘‘and 
setting forth the provisions of Federal law and regulation 
that prohibit a person not licensed under this chapter from 
engaging in the business of dealing in firearms and the 
restrictions set forth in section 922(aa)’’ before the period. 
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SEC. 20. REGULATION OF FACILITATORS OF FIREARM 
TRANSFERS. 
(a) LICENSING.—Section 923(a) of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(4) If the applicant is a facilitator of firearm 
sales, purchases or other transfers, a fee of $1,000 
per year.’’. 
(b) COMPLETED FACILITATED SALES.—Section 923 
of such title is further amended by adding at the end the 
following: 
‘‘(n)(1) Each licensed facilitator shall— 
‘‘(A) inform all prospective sellers using its 
commercial marketplace that any offer for firearm 
sales, purchases, or other transfers made using its 
commercial marketplace may be completed only with 
the assistance of a licensed importer, licensed manu-
facturer, or licensed dealer, who must take posses-
sion of the firearm directly from the transferor for 
the purpose of complying with section 922(t); 
‘‘(B) require all prospective firearm sellers to so 
complete all firearms sales, purchases, or other 
transfers; and 
‘‘(C) maintain records of any such sale, pur-
chase, or other transfer which shall include the date 
of the offer, the name of the offeror, and the name 
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and the licensee number of the licensee that will 
take possession of the firearm directly from the 
transferor, and the model, serial number, type, and 
caliber or gauge of the firearm involved. 
‘‘(2) A licensed facilitator may require, as a condition 
of using its commercial marketplace, that, before offering 
a firearm for sale, a prospective seller identify a licensed 
dealer that will take possession of the firearm and com-
plete the sale. 
‘‘(3) On taking possession of a firearm sold, pur-
chased, or otherwise transferred in such a commercial 
marketplace, a licensee shall comply with all requirements 
of this chapter as if the licensee were transferring the fire-
arm from the inventory of the licensee to the unlicensed 
transferee.’’. 
(c) LIABILITY.—Section 924(h) of such title is 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘Whoever’’; and 
(2) by adding at the end the following: 
‘‘(2) Whoever, having accepted an offer to transfer 
ownership of a firearm using a commercial marketplace 
of a licensed facilitator in order to complete a firearm 
transaction as described in paragraph (1) of this sub-
section, knowingly transfers the firearm to a person not 
licensed under this chapter without a licensed importer, 
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licensed manufacturer, or licensed dealer first taking pos-
session of the firearm for the purpose of complying with 
section 922(t), shall be fined under this title, imprisoned 
not more than 1 year, or both, except that if receipt of 
the firearm by the transferee violates subsection (g) or (n) 
of section 922, or the firearm is used to commit a crime 
of violence (as defined in section (c)(3) of this section) 
or drug trafficking crime (as defined in subsection (c)(2) 
of this section), the transferor shall be fined under this 
title, imprisoned not more than 10 years, or both.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Section 922 of such title is amended— 
(A) in subsection (a)(1)— 
(i) by striking ‘‘or’’ at the end of sub-
paragraph (A); 
(ii) by adding ‘‘or’’ at the end of sub-
paragraph (B); and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) except a licensed facilitator, to engage 
in the business of hosting a commercial market-
place in which offers for firearms sales, pur-
chases, or other transfers are allowed to be 
made;’’; 
(B) in subsection (a)(6)— 
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(i) by striking ‘‘or licensed collector’’ 
and inserting ‘‘licensed collector, or li-
censed facilitator’’; and 
(ii) by striking ‘‘or collector’’ and in-
serting ‘‘collector, or facilitator’’; and 
(C) in subsection (m), by striking ‘‘or li-
censed collector’’ and inserting ‘‘licensed col-
lector, or licensed facilitator’’. 
(2) Section 923 of such title is amended— 
(A) in the 1st sentence of subsection (c), 
by inserting ‘‘or facilitate firearm sales, pur-
chases or other transfers’’ before ‘‘during the 
period stated in the license’’; 
(B) in subsection (g)(1)(A)— 
(i) in the first sentence, by striking 
‘‘and licensed dealer’’ and inserting ‘‘li-
censed dealer, and licensed facilitator’’; 
and 
(ii) in the last sentence, by inserting 
‘‘licensed facilitator,’’ before ‘‘or any li-
censed importer’’; and 
(C) in subsection (j), by striking ‘‘or li-
censed dealer’’ the 1st place it appears and in-
serting ‘‘licensed dealer, or licensed facilitator’’. 
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(3) Section 924(a)(3) of such title is amended 
by striking ‘‘or licensed collector’’ and inserting ‘‘li-
censed collector, or licensed facilitator’’. 
SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS. 
(a) REQUIREMENTS.— 
(1) BACKGROUND CHECKS REQUIRED BEFORE 
ISSUANCE
OR
RENEWAL
OF
DEALERS
LICENSE.— 
Section 923(c) of title 18, United States Code, is 
amended by inserting after the 1st sentence the fol-
lowing: ‘‘Notwithstanding the preceding sentence, 
the Attorney General may not issue or renew a li-
cense unless the Attorney General has contacted the 
national instant criminal background check system 
established under section 103 of the Brady Handgun 
Violence Prevention Act to determine whether it 
would be unlawful for the applicant or any employee 
of the applicant identified by the applicant on the 
application as trusted with the possession or receipt 
of any firearm, to receive a firearm, and the system 
has notified the Attorney General that the informa-
tion available to the system does not demonstrate 
that the receipt of a firearm by the applicant or any 
such employee would violate subsection (g) or (n) of 
section 922 or the law of the State in which the 
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business premises of the applicant subject to the li-
cense is located.’’. 
(2) BACKGROUND
CHECK
REQUIRED
BEFORE 
FIREARM POSSESSION BY DEALER EMPLOYEE.—Sec-
tion 923(g) of such title is further amended by add-
ing at the end the following: 
‘‘(11) A licensed dealer shall not allow an employee 
to possess a firearm at a premises from which the licensed 
dealer conducts business subject to license under this 
chapter, unless— 
‘‘(A) the employee is at least the minimum age 
required by State and local law to possess or receive 
a firearm; 
‘‘(B) the licensed dealer has contacted the na-
tional instant criminal background check system es-
tablished under section 103 of the Brady Handgun 
Violence Prevention Act to determine whether it 
would be unlawful for the individual to receive a fire-
arm; and 
‘‘(C) the system has notified the licensee that 
the information available to the system does not 
demonstrate that the receipt of a firearm by the in-
dividual would violate subsection (g) or (n) of sec-
tion 922 or State law.’’. 
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(b) AUTHORITY OF NICS SYSTEM TO RESPOND TO 
LICENSED DEALER REQUEST
FOR CRIMINAL BACK-
GROUND CHECK OF EMPLOYEE OR APPLICANT FOR EM-
PLOYMENT.—Section 103(b) of the Brady Handgun Vio-
lence Prevention Act (34 U.S.C. 40901(b)) is amended by 
adding at the end the following: ‘‘The Attorney General 
shall ensure that the system responds to any request re-
ceived by the system from a licensed dealer for information 
on whether receipt of a firearm by an employee or appli-
cant for employment of the licensed dealer would violate 
such section 922 or State law.’’. 
(c) AUTHORITY OF NICS SYSTEM TO SEARCH NA-
TIONAL DATA EXCHANGE.—Section 103(e)(1) of the 
Brady Handgun Violence Prevention Act (34 U.S.C. 
40901(e)(1)) is amended by adding at the end the fol-
lowing: 
‘‘(L) SEARCH
OF
NATIONAL
DATA
EX-
CHANGE
DATABASE.—The system established 
under this section shall include a search of the 
database of the National Data Exchange when 
conducting a background check under this sec-
tion.’’. 
SEC. 22. LIABILITY STANDARDS. 
(a) LIABILITY IN LICENSING.—Section 923 of title 
18, United States Code, is amended— 
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(1) in subsection (d)(1)(D), by striking ‘‘will-
fully’’ and inserting ‘‘knowingly’’; and 
(2) in subsection (e), by striking ‘‘willfully’’ 
each place it appears and inserting ‘‘knowingly’’. 
(b) LIABILITY IN PENALTIES.—Section 924 of such 
title is amended— 
(1) in subsection (a)(1)(D), by striking ‘‘will-
fully’’ and inserting ‘‘knowingly’’; and 
(2) in subsection (d)(1), by striking ‘‘willful’’ 
and inserting ‘‘knowing’’. 
SEC. 23. CIVIL ENFORCEMENT. 
(a) FINES FOR ENGAGING IN THE BUSINESS WITH-
OUT A LICENSE.—Section 924(n), of title 18, United 
States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(n)’’; and 
(2) by adding at the end the following: 
‘‘(2) In the case of a person who the Attorney Gen-
eral has found to be engaged in conduct that constitutes 
a violation of section 922(a)(1)(A), the Attorney General 
shall transmit to the persona written notice specifying the 
violation, which shall include a copy of the provision of 
law violated, and impose a civil money penalty in an 
amount that is not less than $2,500 and not more than 
$20,000.’’. 
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(b) TIERED PENALTIES FOR REPEATED VIOLATIONS 
OF REGULATIONS BY LICENSED DEALERS.—Section 924 
of such title is amended by adding at the end the fol-
lowing: 
‘‘(q) PENALTIES RELATING TO VIOLATIONS OF REG-
ULATIONS BY LICENSED DEALERS.— 
‘‘(1) In the case of a licensed dealer who the 
Attorney General has found to be in violation of a 
regulation prescribed under section 926, the Attor-
ney General shall— 
‘‘(A) if the violation is not a result of gross 
negligence by the licensed dealer— 
‘‘(i) in the case of the 1st such viola-
tion by the licensed dealer, if not preceded 
by a violation to which subparagraph (B) 
applies, transmit to the licensed dealer a 
written notice specifying the violation, 
which shall include a copy of the provision 
of law or regulation violated and a plan for 
how to cure the violation; 
‘‘(ii) in the case of the 2nd such viola-
tion by the licensed dealer, if not preceded 
by a violation to which subparagraph (B) 
applies, impose a civil money penalty in an 
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amount that is not less than $2,500 and 
not more than $20,000; 
‘‘(iii) in the case of the 3rd such viola-
tion by the licensed dealer, if not preceded 
by a violation to which subparagraph (B) 
applies, suspend the license to deal in fire-
arms issued to the licensed dealer under 
this chapter until the violation ceases; 
‘‘(iv) in the case of the 4th such viola-
tion by the licensed dealer, whether or not 
preceded by a violation to which subpara-
graph (B) applies, revoke the license; or 
‘‘(v) in the case of any such violation 
by the licensed dealer, if preceded by a vio-
lation to which subparagraph (B) applies, 
apply the penalty authorized under this 
subsection that is 1 level greater in sever-
ity than the level of severity of the penalty 
most recently applied to the licensed dealer 
under this subsection; or 
‘‘(B) if the violation is a result of such 
gross negligence— 
‘‘(i) in the case of the 1st such viola-
tion by the licensed dealer, impose a civil 
money penalty in an amount that is not 
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less than $2,500 and not more than 
$20,000; 
‘‘(ii) in the case of the 2nd such viola-
tion by the licensed dealer— 
‘‘(I) impose a civil money penalty 
in an amount equal to $20,000; 
‘‘(II) suspend the license to deal 
in firearms issued to the licensed deal-
er under this chapter until the viola-
tion ceases; or 
‘‘(III) revoke the license; or 
‘‘(iii) in the case of the 3rd or subse-
quent such violation by the licensed dealer, 
apply the penalty authorized under this 
subsection that is 2 levels greater in sever-
ity than the level of severity of the penalty 
most recently applied to the licensed dealer 
under this subsection. 
‘‘(2) In the case of any such violation, if the At-
torney General finds that the nature of the violation 
indicates that the continued operation of a firearms 
business by the licensed dealer presents an imminent 
risk to public safety, the Attorney General shall, not-
withstanding paragraph (1), immediately suspend 
the license to deal in firearms issued to the licensed 
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dealer under this chapter and secure the firearms in-
ventory of the licensed dealer, until the violation 
ceases.’’. 
SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF 
CRIMINAL PROCEEDINGS TERMINATED. 
Section 923(f) of title 18, United States Code, is 
amended by striking paragraph (4). 
SEC. 25. REPEAL OF CERTAIN LIMITATIONS. 
(a) LIMITATIONS RELATED TO USE OF FIREARMS 
TRACE DATA.— 
(1) The matter under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of division B of the 
Consolidated and Further Continuing Appropria-
tions Act, 2012 (18 U.S.C. 923 note; Public Law 
112–55; 125 Stat. 609–610) is amended by striking 
the 6th proviso. 
(2) The 6th proviso under the heading ‘‘Bureau 
of Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of division B of the 
Consolidated Appropriations Act, 2010 (18 U.S.C. 
923 note; Public Law 111–117; 123 Stat. 3128– 
3129) is amended by striking ‘‘beginning in fiscal 
year 2010 and thereafter’’ and inserting ‘‘in fiscal 
year 2010’’. 
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(3) The 6th proviso under the heading ‘‘Bureau 
of Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of division B of the 
Omnibus Appropriations Act, 2009 (18 U.S.C. 923 
note; Public Law 111–8; 123 Stat. 574–576) is 
amended by striking ‘‘beginning in fiscal year 2009 
and thereafter’’ and inserting ‘‘in fiscal year 2009’’. 
(4) The 6th proviso under the heading ‘‘Bureau 
of Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title II of division B of the 
Consolidated Appropriations Act, 2008 (18 U.S.C. 
923 note; Public Law 110–161; 121 Stat. 1903– 
1904) is amended by striking ‘‘beginning in fiscal 
year 2008 and thereafter’’ and inserting ‘‘in fiscal 
year 2008’’. 
(5) The 6th proviso under the heading ‘‘Bureau 
of Alcohol, Tobacco, Firearms and Explosives—Sala-
ries and Expenses’’ in title I of the Science, State, 
Justice, Commerce, and Related Agencies Appro-
priations Act, 2006 (18 U.S.C. 923 note; Public 
Law 109–108; 119 Stat. 2295–2296) is amended by 
striking ‘‘with respect to any fiscal year’’. 
(6) The 6th proviso under the heading in title 
I of division B of the Consolidated Appropriations 
Act, 2005 (18 U.S.C. 923 note; Public Law 108– 
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447; 118 Stat. 2859–2860) is amended by striking 
‘‘with respect to any fiscal year’’. 
(7) Section 644 of title VI of division J of the 
Consolidated Appropriations Resolution, 2003 (5 
U.S.C. 552 note; Public Law 108–7; 117 Stat. 473– 
474) is amended by striking ‘‘or any other Act with 
respect to any fiscal year’’. 
(b) LIMITATIONS RELATING TO CONSOLIDATING AND 
CENTRALIZING RECORDS.—The matter under the heading 
‘‘Bureau of Alcohol, Tobacco, Firearms and Explosives— 
Salaries and Expenses’’ in title I of division B of the Con-
solidated and Further Continuing Appropriations Act, 
2012 (18 U.S.C. 923 note; Public Law 112–55; 125 Stat. 
609) is amended in the 1st proviso by striking ‘‘or here-
after’’. 
(c) REQUIREMENT TO DESTROY INSTANT CRIMINAL 
BACKGROUND CHECK RECORDS WITHIN 24 HOURS.— 
Section 511 of the Consolidated and Further Continuing 
Appropriations Act, 2012 (18 U.S.C. 922 note; Public 
Law 112–55; 125 Stat. 632) is amended— 
(1) by striking ‘‘for—’’ and all that follows 
through ‘‘(1)’’; and 
(2) by striking the semicolon and all that fol-
lows and inserting a period. 
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SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OP-
ERATION INVESTIGATORS FOR BATFE. 
The Attorney General may hire 650 Industry Oper-
ation Investigators for the Bureau of Alcohol, Tobacco, 
Firearms and Explosives, to be distributed among the var-
ious field divisions to match the number and distribution 
of persons licensed under chapter 44 of title 18, United 
States Code, in addition to any personnel needed to carry 
out this Act and any Industry Operation Investigators au-
thorized by other law. 
SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT. 
Within 2 years after the date of the enactment of this 
Act, the Attorney General shall submit to the Congress 
and publish publicly on the website of the Department of 
Justice a written report on the implementation of this Act 
and the amendments made by this Act, including any 
steps needed to complete the implementation, which shall 
identify any additional resources that are required to con-
duct regular inspections under chapter 44 of title 18, 
United States Code, and to ensure that this Act and the 
amendments made by this Act are enforced against non-
compliant federally licensed firearms dealers in a timely 
manner. 
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SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT 
AND ANALYSIS. 
Within 2 years after the date of enactment of this 
Act, and annually thereafter, the Attorney General shall 
submit to the Congress and publish publicly on the website 
of the Department of Justice, a written report which 
states— 
(1) the number of inspections conducted of 
Type 01 and 02 Federal firearm licensees (dealers 
and pawnbrokers) in the preceding 24 months, by 
each field division of the Bureau of Alcohol, To-
bacco, Firearms and Explosives (in this section re-
ferred to as the ‘‘BATFE’’), including by the num-
ber of inspections of high risk dealers and non-high 
risk dealers; 
(2) the number of security inspections prompt-
ed by dealer reports of lost or stolen firearms, and 
the number of follow-up inspections conducted 6 
months after an inspection revealing a violation; 
(3) the average time spent on high risk, non- 
high risk, security, and follow up inspections; and 
(4) an analysis of the most frequently cited vio-
lations and corrective actions or penalties imposed in 
each instance, including— 
(A) the number of licenses recommended 
to be suspended or revoked; 
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(B) the number of licensees sent notices of 
suspension or revocation; 
(C) the number of hearings requested by 
licensees on receipt of notice of suspension or 
revocation; 
(D) the number of suspension or revoca-
tion hearings initiated in a prior 12-month pe-
riod that remain ongoing during the 12-month 
period covered by the report; and 
(E) the decision ultimately rendered in 
each such matter by the Director of the 
BATFE. 
SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULA-
TIONS. 
Within two years after the date of enactment of this 
Act, the Attorney General shall prescribe, in final form, 
all regulations required to carry out this Act and the 
amendments made by this Act. 
Æ 
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