‘‘(ii) if the licensee intentionally obstructed dis-
covery of the violation, the date the violation is dis-
covered. 
‘‘(2)(A) Not less than 30 days before the effective 
date of any penalty imposed on a licensee by reason of 
a determination made under paragraph (1), the Attorney 
General shall send the licensee a written notice— 
‘‘(i) of the determination, and the grounds on 
which the determination was made; 
‘‘(ii) of the nature of the penalty; and 
‘‘(iii) that the licensee may, within 30 days 
after receipt of the notice, request a hearing to re-
view the determination. 
‘‘(B) A hearing to review a determination made under 
paragraph (1) with respect to a licensee shall not be held 
unless the licensee requests such a hearing within 30 days 
after receiving the notice of the determination sent pursu-
ant to subparagraph (A) of this paragraph. 
‘‘(C) On timely receipt from the licensee of a request 
for a review described in subparagraph (B), the Attorney 
General shall stay the imposition under paragraph (1) of 
any penalty involved, pending resolution of the review, un-
less, in the case of a suspension or revocation of a licensee, 
the Attorney General establishes, at a hearing before an 
administrative law judge, by clear and convincing evi-
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dence, that the continued operation by the licensee of the 
business poses an immediate and grave threat to public 
safety. 
‘‘(3)(A) Within 90 days after timely receipt from a 
licensee of a request to review a determination made under 
paragraph (1) (or at such later time as is agreed to by 
the Attorney General and the licensee), an administrative 
law judge shall hold a hearing, at a location convenient 
to the licensee, to review the determination. 
‘‘(B) Not less than 30 days before a hearing de-
scribed in subparagraph (A), the Attorney General shall 
deliver to the licensee— 
‘‘(i) a document identifying each person whom 
the Attorney General intends to call as a witness 
during the hearing; 
‘‘(ii) a copy of each document which will be in-
troduced as evidence at the hearing; and 
‘‘(iii) copies of all documents on which the de-
termination is based. 
‘‘(C) Within 90 days after a hearing described in sub-
paragraph (A), the administrative law judge shall issue a 
written decision setting forth findings of fact and conclu-
sions of law, and a decision as to whether to affirm, mod-
ify, or reverse the determination. 
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‘‘(D) On request of the licensee, the Attorney General 
shall stay the effective date of any penalty, suspension, 
or revocation until there has been a final, nonreviewable 
judgment with respect to the determination involved, un-
less, in the case of a suspension or revocation of a licensee, 
the Attorney General establishes, at a hearing before an 
administrative law judge, by clear and convincing evi-
dence, that the continued operation by the licensee of the 
business poses an immediate and grave threat to public 
safety. 
‘‘(E) The action of an administrative law judge under 
this subsection shall be considered final agency action for 
all purposes, and may be reviewed only as provided in sub-
section (f). 
‘‘(4) This subsection shall not be interpreted to affect 
the authority of the Attorney General under section 
922(t)(5). 
‘‘(f)(1) Within 60 days after a party receives a notice 
issued under subsection (d)(3) of a decision to deny a li-
cense, or a notice issued under subsection (e)(3)(C) of a 
determination to impose a civil money penalty or to sus-
pend or revoke a license, the party may file a petition with 
the United States district court for the district in which 
the party resides or has a principal place of business for 
a de novo review of the decision or determination. 
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‘‘(2) In a proceeding conducted under this subsection, 
the court shall, on application of a party, consider any evi-
dence submitted by the parties to the proceeding whether 
or not the evidence was considered at the hearing held 
under subsection (d)(3) or (e)(3). 
‘‘(3) If the court determines that the licensee did not 
willfully violate 1 or more provisions of this chapter or 
1 or more regulations prescribed under this chapter, the 
court shall— 
‘‘(A) vacate the revocation, suspension, or fine, 
and remand the matter to the Attorney General for 
further consideration; and 
‘‘(B) award to the licensee a reasonable attor-
ney’s fee with respect to any part of the decision or 
determination on which the licensee prevails. 
‘‘(4) If criminal proceedings are instituted against a 
licensee alleging any violation of this chapter or of a regu-
lation prescribed under this chapter, and the licensee is 
acquitted of the charges, or the proceedings are termi-
nated, other than upon motion of the Government before 
trial on the charges, the Attorney General shall be abso-
lutely barred from denying a license under this chapter, 
suspending or revoking a license granted under this chap-
ter, or imposing a civil money penalty under subsection 
(e), if the action would be based in whole or in part on 
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the facts which form the basis of the criminal charges. 
The Attorney General may not institute a proceeding to 
suspend or revoke a license granted under this chapter, 
or to impose a civil money penalty under subsection (e), 
more than 1 year after the filing of the indictment or in-
formation.’’. 
(b) CONFORMING AMENDMENT TO PROCEDURE AP-
PLICABLE TO DENIAL OF APPLICATION FOR LICENSE.— 
Section 923(d) of title 18, United States Code, is amended 
by adding at the end the following: 
‘‘(3) If the Attorney General denies an application 
for a license, an administrative law judge of the Depart-
ment of Justice shall, on request by the aggrieved party, 
promptly hold a hearing to review the denial, at a location 
convenient to the aggrieved party. If, after the hearing, 
the administrative law judge decides not to reverse the de-
nial, the administrative law judge shall give notice of the 
final denial decision to the aggrieved party.’’. 
SEC. 102. CONSIDERATION OF FEDERAL FIREARMS LI-
CENSE APPLICATIONS. 
(a) IN GENERAL.—Section 923(d) of title 18, United 
States Code, as amended by section 101(b) of this Act, 
is amended— 
(1) by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively; and 
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(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) The Attorney General shall make a preliminary 
determination as to whether to approve or deny an appli-
cation submitted under subsection (a) or (b). If the pre-
liminary determination is to deny the application, the At-
torney General shall notify the applicant in writing of the 
preliminary determination and the reasons for the prelimi-
nary determination, and shall afford the applicant an op-
portunity to supplement the application with additional in-
formation and to request a hearing on the application. If 
the applicant, in a timely manner, requests such a hearing, 
the Attorney General shall hold the hearing at a location 
convenient to the applicant, and shall notify the applicant 
in writing of the time and place of the hearing.’’. 
(b) CONFORMING AMENDMENT.—Section 923(f) of 
title 18, United States Code, as amended by section 
101(a) of this Act, is amended by striking ‘‘(d)(3)’’ each 
place it appears and inserting ‘‘(d)(4)’’. 
SEC. 103. DEFINITION OF WILLFULLY. 
Section 923(e) of title 18, United States Code, as 
amended by section 101(a) of this Act, is amended by add-
ing at the end the following: 
‘‘(5) For purposes of this subsection, the term ‘will-
fully’ means, with respect to conduct of a person, that the 
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person knew of a legal duty, and engaged in the conduct 
knowingly and in intentional disregard of the duty.’’. 
SEC. 104. ESTABLISHMENT OF FORMAL INSPECTION, EXAM-
INATION, AND INVESTIGATIVE GUIDELINES. 
(a) IN GENERAL.—The Attorney General shall estab-
lish guidelines for how the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives is to conduct inspections, exami-
nations, or investigations of possible violations of chapters 
40 and 44 of title 18, United States Code. 
(b) PERSONNEL MATTERS.—In no case shall the 
amount of fines imposed on licensees under chapter 40 
or 44 of title 18, United States Code, or the number of 
warnings issued, or suspensions or revocations of licenses 
under such chapters, be considered in the retention, pro-
motion, or transfer of any officer, agent, or employee of 
the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 
SEC. 105. LIQUIDATION OF INVENTORY IN FEDERAL FIRE-
ARMS LICENSE EXPIRATION, SURRENDER, OR 
REVOCATION CASES. 
Section 923 of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘(m)(1) Except as provided in paragraph (2), a per-
son whose license issued under this chapter is expired, sur-
rendered, or revoked shall be afforded 60 days from the 
effective date of the expiration, surrender, or revocation 
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to liquidate the firearms inventory of the person, which 
time may be extended upon a showing of reasonable cause. 
During such 60-day period (including any extension of the 
period), the license involved shall continue to be considered 
valid. 
‘‘(2) Paragraph (1) shall not apply with respect to 
a person if a United States district court for the judicial 
district in which the person resides or in which the prin-
cipal place of business of the person subject to the license 
is located finds, by clear and convincing evidence, that the 
continued operation by the person of the business poses 
an immediate and grave threat to public safety.’’. 
SEC. 106. OPPORTUNITY TO CURE VIOLATIONS AFTER AC-
QUISITION OF FIREARMS BUSINESS. 
Section 923 of title 18, United States Code, as 
amended by section 105 of this Act, is amended by adding 
at the end the following: 
‘‘(n) If the Attorney General is made aware that a 
business licensed under this chapter has transferred to a 
surviving spouse or child of the licensee, to an executor, 
administrator, or other legal representative of a deceased 
licensee, or to a receiver or trustee in bankruptcy, or an 
assignee for benefit of creditors, and, before the transfer, 
or on the first inspection or examination by the Attorney 
General of the records of the licensee after the transfer, 
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the licensee is found to be operating the business in viola-
tion of this chapter, the Attorney General— 
‘‘(1) shall notify the transferee of the violation 
by the transferor; and 
‘‘(2) shall not presume that the transferee is 
committing the violation.’’. 
SEC. 107. STANDARDS FOR CRIMINAL VIOLATIONS OF REC-
ORDKEEPING REQUIREMENTS. 
Section 922(m) of title 18, United States Code, is 
amended— 
(1) by striking ‘‘any false entry’’ and inserting 
‘‘a materially false entry’’; 
(2) by striking ‘‘appropriate entry’’ and insert-
ing ‘‘a materially significant entry’’; and 
(3) by striking ‘‘properly maintain’’ and insert-
ing ‘‘retain custody of’’. 
SEC. 108. EFFECTIVE DATE. 
This title and the amendments made by this title 
shall take effect 180 days after the date of enactment of 
this Act. 
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TITLE 
II—FIREARMS 
CORREC-
TIONS AND IMPROVEMENTS 
SEC. 201. CORRECTION OF NONSUBSTANTIVE ERROR IN 
AGE LIMIT PROVISION. 
Section 922(b)(1) of title 18, United States Code, is 
amended to read as follows: 
‘‘(1) any firearm or ammunition to any indi-
vidual who the licensee knows or has reasonable 
cause to believe has not attained 18 years of age, 
and, if the firearm is other than a shotgun or rifle, 
or the ammunition is for a firearm other than a 
shotgun or rifle, to any individual who the licensee 
knows or has reasonable cause to believe has not at-
tained 21 years of age;’’. 
SEC. 202. POSSESSION AND TRANSFER OF MACHINEGUNS 
FOR INDUSTRY TESTING AND SECURITY CON-
TRACTING. 
(a) MACHINEGUNS FOR FEDERAL CONTRACTORS.— 
Section 922(a)(4) of title 18, United States Code, is 
amended by striking ‘‘except’’ and all that follows and in-
serting ‘‘except— 
‘‘(A) as specifically authorized by the At-
torney General consistent with public safety and 
necessity; or 
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‘‘(B) to comply with a contract between 
any person and the United States which re-
quires that person to provide national security 
services for the United States or any training 
related to such services;’’. 
(b) SALE OR DELIVERY OF MACHINEGUNS TO FED-
ERAL CONTRACTORS.—Section 922(b) of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: ‘‘Paragraphs (2) and (4) of this subsection shall 
not apply to a sale or delivery to comply with a contract 
between any person and the United States which requires 
that person to provide national security services for the 
United States or any training related to the services.’’. 
(c) POST–86 MACHINEGUNS
FOR TESTING, RE-
SEARCH
AND DEVELOPMENT, TRAINING, AND SECU-
RITY.—Section 922(o) of title 18, United States Code, is 
amended— 
(1) in paragraph (2)— 
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end; 
(B) by redesignating subparagraph (B) as 
subparagraph (F); and 
(C) by inserting after subparagraph (A) 
the following: 
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‘‘(B) a transfer to, or possession by, a person 
to comply with a contract between that person and 
the United States which requires the person to pro-
vide national security services for the United States 
or any training related to the services; 
‘‘(C) a transfer to, or possession by, a licensed 
manufacturer or licensed importer solely for testing, 
research, design, or development of ammunition or a 
firearm; 
‘‘(D) a possession by a licensed manufacturer 
or licensed importer for the purposes of training per-
sons to whom a machinegun, manufactured or im-
ported by the licensee, may be transferred as de-
scribed in subparagraph (A) or (B); 
‘‘(E) a transfer to or possession by a licensed 
manufacturer, licensed importer, or licensed dealer 
for a professional theatrical purpose if the licensee— 
‘‘(i) is registered under section 5802 of the 
National Firearms Act; 
‘‘(ii) holds a valid permit or license under 
State law to engage in business as a theatrical 
firearms dealer or equivalent statutory designa-
tion; 
‘‘(iii) derives not less than 80 percent of 
income from the firearms business from the use 
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of firearms by professional motion picture or 
television productions that are distributed to or 
produced for a national or international audi-
ence; 
‘‘(iv) before possessing a machinegun 
under this subparagraph, provides the Attorney 
General with documentation that— 
‘‘(I) the licensee meets the require-
ments of clauses (i) through (iii); and 
‘‘(II) the transfer or possession, as 
the case may be, is for such purpose; and 
‘‘(v) establishes that the number of ma-
chineguns sought by the licensee is reasonable 
for the film, production, or performance for 
which the machineguns are requested; or’’; and 
(2) by adding at the end the following: 
‘‘(3) A person who receives, possesses, transports, im-
ports, or uses a weapon, ammunition, or a device under 
subsection (b) of this section, shall be subject to a back-
ground check every 3 years by the Attorney General, based 
on fingerprints and including a background check under 
section 103(b) of the Brady Handgun Violence Protection 
Act (Public Law 103–159; 18 U.S.C. 922 note) to deter-
mine whether the person is prohibited from possessing or 
receiving a firearm under Federal or State law. Any per-
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son who receives, possesses, transports, imports, or uses 
a weapon, ammunition or a device under subsection (b) 
of this section shall be subject to subsections (g) and (n) 
of this section.’’. 
(d) 
IMPORTATION
OF
MACHINEGUNS.—Section 
925(d) of title 18, United States Code, is amended— 
(1) in paragraph (3), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (4), by striking the period and 
inserting a semicolon; and 
(3) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) is imported or brought in for a purpose de-
scribed in section 922(o)(2); or 
‘‘(6) is a machinegun being imported or 
brought in for a purpose described in section 
922(o)(2)(E).’’. 
(e) IMPORTATION UNDER THE NATIONAL FIREARMS 
ACT.—Section 5844 of the National Firearms Act (26 
U.S.C. 5844) is amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; and 
(2) by inserting after paragraph (3) the fol-
lowing: 
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‘‘(4) a machinegun being imported or brought 
in to comply with a contract between any person and 
the United States which requires the person to pro-
vide national security services for the United States 
or any training related to the services; 
‘‘(5) a machinegun being imported or brought 
in by a registered importer or registered manufac-
turer for the purpose of training persons who ac-
quire machineguns pursuant to paragraph (1) that 
were manufactured or imported by the registrant; or 
‘‘(6) a machinegun being imported or brought 
in for a purpose described in section 922(o)(2)(E) of 
title 18, United States Code;’’. 
(f) NATIONAL SECURITY SERVICES DEFINED.—Sec-
tion 921(a) of title 18, United States Code, is amended 
by adding at the end the following: 
‘‘(36) The term ‘national security services’ means any 
protective, defensive, or security services provided pursu-
ant to a contract with a department or agency of the 
United States. 
‘‘(37) The term ‘professional theatrical purpose’ 
means the use of firearms in a motion picture or television 
production which is expected to be produced, distributed, 
marketed, or shown by a member of a nationally recog-
nized professional trade association related primarily to 
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motion picture and television production, as determined 
by the Attorney General.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 180 days after the date of 
enactment of this Act. 
SEC. 203. ELIMINATION OF OBSOLETE LANGUAGE ADDED 
BY THE BRADY HANDGUN VIOLENCE PRE-
VENTION ACT. 
Section 922 of title 18, United States Code, is 
amended— 
(1) by striking subsection (s); and 
(2) in subsection (t)(1), by striking ‘‘Begin-
ning’’ and all that follows through ‘‘a licensed’’ and 
inserting ‘‘A licensed’’. 
SEC. 204. ELIMINATION OF WRITTEN PERMISSION RE-
QUIREMENT 
FOR 
SUPERVISED 
HANDGUN 
USE. 
Section 922(x)(3)(A) of title 18, United States Code, 
is amended— 
(1) in clause (ii), by striking subclause (II) and 
inserting the following: 
‘‘(II) with respect to ranching or 
farming activities, target practice, hunting, 
or a course of instruction in the safe and 
lawful use of a handgun, as described in 
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clause (i), a juvenile may possess and use 
a handgun or ammunition without the 
prior written consent, if the parent or legal 
guardian is present at all times and the ju-
venile acts at the direction of a parent, 
legal guardian, or other adult who is not 
prohibited by Federal, State, or local law 
from possessing a firearm;’’; and 
(2) in clause (iii), by inserting ‘‘except as pro-
vided in clause (ii)(II),’’ after ‘‘(iii)’’. 
SEC. 205. MODIFICATION OF PROCEDURES FOR SHARING 
OF MULTIPLE HANDGUN SALES REPORTS. 
Section 923(g)(3)(A) of title 18, United States Code, 
is amended— 
(1) by striking ‘‘and to the department of State 
police’’ and all that follows through ‘‘took place’’; 
and 
(2) by adding at the end the following: ‘‘On re-
quest by a State or local law enforcement agency of 
the jurisdiction in which the sale or other disposition 
took place, the Attorney General may provide the re-
port to the agency, unless the agency failed to make 
the certification required by subparagraph (B) for 
the most recent 6-month period for which the certifi-
cation is so required.’’. 
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SEC. 206. BAN ON ELECTRONIC RETRIEVAL OF INACTIVE 
LICENSEE INFORMATION. 
Subsection 923(g)(4) of title 18, United States Code, 
is amended by adding at the end the following: ‘‘The At-
torney General shall not electronically retrieve information 
gathered pursuant to this paragraph by name or by any 
personal identification code.’’. 
SEC. 207. BARREL AND RECEIVER IMPORTATION. 
(a) IN GENERAL.—Section 925(e) of title 18, United 
States Code, is amended— 
(1) in paragraph (1), by striking ‘‘, and’’ and 
inserting a period; 
(2) by adding at the end the following: 
‘‘(3) All frames or receivers of rifles, or barrels 
for firearms other than handguns, if the importation 
is for repair or replacement purposes.’’. 
(b) GOVERNMENTAL IMPORTS.—Section 925(a)(1) of 
title 18, United States Code, is amended by inserting ‘‘, 
barrel,’’ after ‘‘or importation of any firearm’’. 
SEC. 208. CLARIFICATIONS RELATING TO MANUFACTURING 
OF FIREARMS. 
(a) CLARIFICATION OF DEFINITION OF MANUFAC-
TURING.—Section 921(a)(10) of title 18, United States 
Code, is amended by adding at the end the following: ‘‘The 
term ‘manufacturing’ shall not include repairing firearms, 
making or fitting special barrels, stocks, trigger mecha-
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nisms, or other parts to firearms, or engraving or other-
wise altering the appearance of firearms.’’. 
(b) CLARIFICATION OF DEFINITION OF DEALER.— 
Section 921(a)(11)(B) of title 18, United States Code, is 
amended by striking ‘‘or trigger mechanisms to firearms’’ 
and inserting ‘‘trigger mechanisms, or other parts to fire-
arms, or engraving or otherwise altering the appearance 
of firearms’’. 
Æ 
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