IB 
Union Calendar No. 401 
109TH CONGRESS 
2D SESSION 
H. R. 5092 
[Report No. 109–672] 
To modernize and reform the Bureau of Alcohol, Tobacco, Firearms, and 
Explosives. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 5, 2006 
Mr. COBLE (for himself and Mr. SCOTT of Virginia) introduced the following 
bill; which was referred to the Committee on the Judiciary 
SEPTEMBER 21, 2006 
Additional sponsors: Mr. BOUCHER, Mr. ROGERS of Alabama, Mr. HAYES, 
Mr. YOUNG of Alaska, Mr. ENGLISH of Pennsylvania, Mr. BURTON of In-
diana, Mr. CANNON, Mr. RAHALL, Mr. GERLACH, Mrs. MUSGRAVE, Mr. 
CONAWAY, Mr. KUHL of New York, Mr. WESTMORELAND, Ms. FOXX, 
Mr. ISTOOK, Mr. CANTOR, Mr. KLINE, Mr. FEENEY, Mr. SALAZAR, Mr. 
CARTER, Mr. DELAY, Mr. MARSHALL, Mr. GOODE, Mr. SESSIONS, Ms. 
HART, Mr. GARRETT of New Jersey, Mr. GINGREY, Mr. DAVIS of Ten-
nessee, Mr. MILLER of Florida, Mr. MATHESON, Mr. SCHWARZ of Michi-
gan, Mr. BARRETT of South Carolina, Mr. BARROW, Mr. JENKINS, Mr. 
BOREN, Mr. ADERHOLT, Mr. WILSON of South Carolina, Mr. DOO-
LITTLE, Mr. ALEXANDER, Mrs. DRAKE, Mr. BISHOP of Georgia, Mr. 
EVERETT, Mr. KELLER, Mr. DAVIS of Kentucky, Mr. POE, Mr. BOYD, 
Mrs. EMERSON, Mr. BERRY, Mr. PLATTS, Mr. MICHAUD, Mr. 
HENSARLING, Mrs. BLACKBURN, Mr. KENNEDY of Minnesota, Mr. 
HOLDEN, Mr. CRAMER, Mr. COLE of Oklahoma, Mr. REYNOLDS, Mr. 
NORWOOD, Mr. BACHUS, Mr. HALL, Mr. STRICKLAND, Mr. HERGER, Mr. 
AKIN, Mr. LARSEN of Washington, Mr. BILIRAKIS, Mr. STEARNS, Mr. 
TERRY, Mr. PEARCE, Mr. LUCAS, Mr. DEAL of Georgia, Mr. EDWARDS, 
Mr. PETERSON of Pennsylvania, Mr. FORBES, Mr. SWEENEY, Mr. PRICE 
of Georgia, Mr. DUNCAN, Mr. ROSS, Mr. HIGGINS, Mr. REHBERG, Mr. 
SIMPSON, Mr. MCCRERY, Mr. MURPHY, Mr. OTTER, Ms. HARRIS, Mr. 
PUTNAM, Mr. MELANCON, Mr. PICKERING, Mr. BONNER, Mr. BONILLA, 
Mrs. MILLER of Michigan, Mr. MCCOTTER, Mr. SOUDER, Mr. WAMP, Mr. 
GREEN of Wisconsin, Mr. SHADEGG, Mr. DENT, Mr. CAMPBELL of Cali-
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fornia, Mr. LATHAM, Mr. NUSSLE, Mr. BISHOP of Utah, Mr. ROGERS of 
Michigan, Mr. NEUGEBAUER, Mr. POMBO, Mr. CULBERSON, Mr. BROWN 
of South Carolina, Mr. LEWIS of Kentucky, Mr. RENZI, Mr. MACK, Mr. 
JINDAL, Mr. BAKER, Mr. KING of Iowa, Mr. MURTHA, Mr. WICKER, Mr. 
WELDON of Pennsylvania, Mr. KINGSTON, Mr. PITTS, Mr. GOODLATTE, 
Mr. BEAUPREZ, Mr. FRANKS of Arizona, Mr. WHITFIELD, Mr. DINGELL, 
Mr. MCHENRY, Mr. TANCREDO, Mr. ORTIZ, Mr. GENE GREEN of Texas, 
Mr. TAYLOR of North Carolina, Mr. SHERWOOD, Mrs. MYRICK, Mr. TAN-
NER, Mr. MOLLOHAN, Mrs. CUBIN, Mrs. JO ANN DAVIS of Virginia, Mr. 
CARDOZA, Mr. PETERSON of Minnesota, Mr. MARCHANT, Mr. GRAVES, 
Mr. DEFAZIO, Mr. ISSA, Mr. BILBRAY, Mr. FORD, Mr. PENCE, Mr. POR-
TER, Mr. BURGESS, Mr. RYUN of Kansas, Mr. SPRATT, Mr. BASS, Mr. 
BRADLEY of New Hampshire, Mr. BOOZMAN, Mr. SAM JOHNSON of 
Texas, Mr. BOUSTANY, and Ms. GRANGER 
SEPTEMBER 21, 2006 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on April 5, 2006] 
A BILL 
To modernize and reform the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives. 
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 ‘‘Bureau of Alcohol, To-
bacco, Firearms, and Explosives (BATFE) Modernization 
and Reform Act of 2006’’. 
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SEC. 2. GRADUATED PENALTIES FOR CIVIL VIOLATIONS BY 
FEDERAL FIREARMS LICENSEES. 
(a) IN GENERAL.—Section 923 of title 18, United 
States Code, is amended by striking subsections (e) and (f) 
and inserting the following: 
‘‘(e)(1)(A) If the Attorney General determines that a 
licensee under this section has willfully violated any provi-
sion of this chapter or any regulation prescribed under this 
chapter, the Attorney General may— 
‘‘(i) if the violation is of a minor nature, or if 
the violation is that the licensee has failed to have se-
cure gun storage or safety devices available at any 
place in which firearms are sold under the license to 
persons who are not licensees (except because of theft, 
casualty loss, consumer sales, back orders from a 
manufacturer, or any other similar reason beyond the 
control of the licensee)— 
‘‘(I) impose on the licensee a civil money 
penalty of not more than $1,000 for each such 
violation, except that the total amount of pen-
alties imposed on a licensee under this subclause 
for violations arising from a single inspection or 
examination shall not exceed $5,000; or 
‘‘(II) suspend the license for not more than 
30 days, and specify the circumstances under 
which the suspension is to be terminated, if, in 
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the period for which the license is in effect, there 
have been at least 2 prior occasions on which the 
licensee has been determined to have violated this 
chapter; or 
‘‘(ii) if the violation is of a serious nature— 
‘‘(I) impose on the licensee a civil money 
penalty of not more than $2,500 for each such 
violation, except that the total amount of pen-
alties imposed on a licensee under this subclause 
for a violations arising from a single inspection 
or examination shall not exceed $15,000; 
‘‘(II) suspend the license for not more than 
90 days, and specify the circumstances under 
which the suspension is to be terminated; 
‘‘(III) revoke the license; or 
‘‘(IV) take the actions described in sub-
clauses (I) and (II), or subclauses (I) and (III). 
‘‘(B)(i)(I) In determining the amount of a civil money 
penalty to impose under subparagraph (A) on a licensee, 
the nature and severity of the violation involved, the size 
of the firearms business operated by the licensee, and the 
prior record of the licensee shall be considered. 
‘‘(II) On request of the licensee, the Attorney General 
may consider the ability of the licensee to pay a civil money 
penalty, and may allow the licensee to submit documents 
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and information to establish the ability of the licensee to 
pay. The Attorney General shall not make part of any pub-
lic record any document or information so submitted, and 
shall return to the licensee any such document or informa-
tion. 
‘‘(III) The total amount of penalties imposed on a li-
censee under subparagraph (A) with respect to violations 
of a minor nature and of a serious nature arising from 
a single inspection or examination shall not exceed $15,000. 
‘‘(ii) For purposes of subparagraph (A), violation of 
a provision of this chapter with respect to 2 or more fire-
arms during a single transaction shall be considered a sin-
gle violation of the provision. 
‘‘(iii) The Attorney General may defer, or suspend, in 
whole or in part, the imposition of a civil money penalty 
on a licensee whose license is suspended under this para-
graph. 
‘‘(C) For purposes of subparagraph (A): 
‘‘(i) A violation of this chapter shall be consid-
ered to be of a serious nature if the violation— 
‘‘(I) results in or could have resulted in the 
transfer of a firearm or ammunition to a person 
prohibited from possessing or receiving the fire-
arm or ammunition under this chapter or under 
State or local law; 
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