(2) TRANSITION RULE.—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 1-year period. Any plan so submitted 
shall be considered to be submitted pursuant to such 
section 923(d)(1)(G), for purposes of such sections 
923(g)(6)(B) and 926(d). 
(c) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI-
CATION REQUIREMENT.— 
(1) IN
GENERAL.—Section 923 of title 18, 
United States Code, is amended by adding at the 
end the following: 
‘‘(m)(1) Each licensed dealer shall annually certify to 
the Attorney General that each premises from which the 
licensed dealer conducts business subject to license under 
this chapter is in compliance with the regulations pre-
scribed under section 926(d), and include with the certifi-
cation the results of a reconciliation of the firearms inven-
VerDate Sep 11 2014 
22:02 Aug 09, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H8828.IH
H8828
ssavage on LAPJG3WLY3PROD with BILLS
tory of the licensed dealer with the firearms inventory at 
the time of the most recent prior certification (if any) 
under this paragraph, including a report of any missing 
firearms. 
‘‘(2) The Attorney General may impose a civil money 
penalty of not more than $5,000 on, and may suspend 
the license to deal in firearms issued under this section 
to, a licensed dealer who fails to comply with paragraph 
(1).’’. 
(2) TRANSITION RULE.—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 licensed dealer (as defined in section 
921(a)(11) of title 18, United States Code), until 
the end of the 1-year period that begins with the 
date person complies with subsection (b)(2) of this 
section. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 1 year after the date of the 
enactment of this Act. 
VerDate Sep 11 2014 
22:02 Aug 09, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H8828.IH
H8828
ssavage on LAPJG3WLY3PROD with BILLS
SEC. 3. REPEAL OF PROHIBITION ON USE OF FUNDS TO IM-
PLEMENT RULE REQUIRING PHYSICAL IN-
VENTORY BY FEDERAL FIREARMS LICENS-
EES. 
The matter under the heading ‘‘Bureau of Alcohol, 
Tobacco, Firearms and Explosives—Salaries and Ex-
penses’’ in title II of division B of the Consolidated and 
Further Continuing Appropriations Act, 2013 (Public 
Law 113–6; 127 Stat. 248) is amended by striking the 
5th proviso. 
SEC. 4. INSPECTIONS. 
(a) ELIMINATION OF LIMIT ON ANNUAL INSPEC-
TIONS OF LICENSEES.—Section 923(g)(1)(B)(ii) of title 
18, United States Code, is amended by striking ‘‘—’’ and 
all that follows through ‘‘(II)’’. 
(b) MANDATED ANNUAL INSPECTIONS
OF HIGH 
RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF 
OTHER LICENSED DEALERS.—Section 923(g)(1)(B) of 
such title is amended by adding after and below the end 
the following flush sentence: ‘‘The Attorney General shall, 
without such reasonable cause or warrant, annually in-
spect or examine the inventory, records, and business 
premises of each licensed dealer whom the Attorney Gen-
eral regards as a high risk dealer (based on the consider-
ations used to do so as of the date of the enactment of 
this sentence), and triennially inspect or examine the in-
VerDate Sep 11 2014 
22:02 Aug 09, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H8828.IH
H8828
ssavage on LAPJG3WLY3PROD with BILLS
ventory, records, and business premises of each other li-
censed dealer. Within 6 months after an inspection under 
this subparagraph reveals a violation of this section or any 
regulation prescribed under this chapter, and within 6 
months after a security inspection conducted under para-
graph (6)(B)(i) of this subsection, the Attorney General 
shall conduct an inspection to determine whether the viola-
tion identified in the preceding inspection has been 
cured.’’ 
(c) AUTHORITY TO HIRE ADDITIONAL INDUSTRY 
OPERATION INVESTIGATORS FOR BATFE.—The Attorney 
General may hire 650 Industry Operation Investigators 
for the Bureau of Alcohol, Tobacco, Firearms and Explo-
sives, in addition to any personnel needed to carry out this 
Act and any Industry Operation Investigators authorized 
by other law. 
SEC. 5. EMPLOYEE BACKGROUND CHECKS. 
(a) REQUIREMENTS.— 
(1) BACKGROUND
CHECK
REQUIRED
BEFORE 
FIREARM POSSESSION BY DEALER EMPLOYEE.—Sec-
tion 923(g) of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘(8) A licensed dealer shall not allow an employee 
of the licensed dealer to possess a firearm at a premises 
VerDate Sep 11 2014 
22:02 Aug 09, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H8828.IH
H8828
ssavage on LAPJG3WLY3PROD with BILLS
from which the licensed dealer conducts business subject 
to license under this chapter unless— 
‘‘(A) 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 for information about 
whether it would be unlawful for the individual to 
receive a firearm; and 
‘‘(B) 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.’’. 
(2) BACKGROUND CHECKS REQUIRED BEFORE 
ISSUANCE OR RENEWAL OF DEALER LICENSE.—Sec-
tion 923(c) of such title is amended by inserting 
after the 1st sentence the following: ‘‘Notwith-
standing the preceding sentence, the Attorney Gen-
eral may not issue or renew a license to deal in fire-
arms unless the Attorney General has contacted the 
national instant criminal background check system 
established under section 103 of the Brady Handgun 
Violence Prevention Act for information about 
whether it would be unlawful for any employee of 
the applicant for the license or renewal, identified by 
VerDate Sep 11 2014 
22:02 Aug 09, 2024
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H8828.IH
H8828
ssavage on LAPJG3WLY3PROD with BILLS