I 
117TH CONGRESS 
1ST SESSION H. R. 4423 
To enhance safety and security at federally licensed gun shops, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2021 
Mr. MORELLE (for himself, Mr. KHANNA, Ms. SCHAKOWSKY, Mr. CARSON, 
Mr. SUOZZI, and Ms. SCANLON) introduced the following bill; which was 
referred to the Committee on the Judiciary, and in addition to the Com-
mittee on Rules, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To enhance safety and security at federally licensed gun 
shops, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Gun Theft Prevention Act’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Gun shop security measures. 
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Sec. 3. Repeal of prohibition on use of funds to implement rule requiring phys-
ical inventory by Federal firearms licensees. 
Sec. 4. Inspections. 
Sec. 5. Employee background checks. 
Sec. 6. Gun store thefts. 
Sec. 7. Civil enforcement. 
Sec. 8. No effect on State laws governing dealing in firearms. 
Sec. 9. Repeal of prohibition on denial of Federal firearm license due to lack 
of business activity. 
Sec. 10. Repeal of limitations relating to use of firearms trace data. 
Sec. 11. Lost and stolen reporting requirement. 
Sec. 12. Report on implementation of this Act. 
Sec. 13. Hearing. 
Sec. 14. Deadline for issuance of final regulations. 
SEC. 2. GUN SHOP SECURITY MEASURES. 
(a) REGULATIONS.— 
(1) IN
GENERAL.—Section 926 of title 18, 
United States Code, 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 licensed dealer deals in firearms are secure from 
theft, which shall include requiring— 
‘‘(1) compliance with the security plan sub-
mitted by the licensed dealer pursuant to section 
923(d)(1)(G); 
‘‘(2) the use of locked metal cabinets and fire-
proof safes; 
‘‘(3) security systems, video monitoring, and 
anti-theft alarms; 
‘‘(4) security gates, strong locks, and site hard-
ening; and 
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‘‘(5) concrete bollards and other access controls, 
if necessary.’’. 
(2) TRANSITION RULE.—The regulations pre-
scribed under section 926(d)(1) of title 18, United 
States Code, shall not apply to 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 such title), 
until the earlier of— 
(A) the date the person complies with sub-
section (b)(2) of this section; or 
(B) the end of the 1-year period that be-
gins with the date regulations are prescribed 
under section 926(d) of such title. 
(b) SECURITY PLAN SUBMISSION REQUIREMENT.— 
(1) IN
GENERAL.—Section 923(d)(1)(G) of 
such title is amended by inserting ‘‘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’’ before the period. 
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(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-
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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. 
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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-
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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 
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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 
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