I 
109TH CONGRESS 
2D SESSION 
H. R. 5092 
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 
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, 
Tobacco, Firearms, and Explosives (BATFE) Moderniza-
tion 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 pro-
vision of this chapter or any regulation prescribed under 
this chapter, or has failed to have secure gun sotrage 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, 
backorders from a manufacturer, or any other similar rea-
son beyond the control of the licensee), the Attorney Gen-
eral may— 
‘‘(i) if the violation is not of a serious nature— 
‘‘(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 sub-
clause for violations arising from a single in-
spection 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 sub-
clause for a violations arising from a single in-
spection 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) 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) For purposes of subparagraph (A), violation of 
a provision of this chapter with respect to 2 or more fire-
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arms during a single transaction shall be considered a sin-
gle violation of the provision. 
‘‘(C) For purposes of subparagraph (A), a violation 
of this chapter shall be considered 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 pro-
hibited from possessing or receiving the firearm or 
ammunition under this chapter; 
‘‘(ii) obstructs or could have obstructed a bona 
fide civil or criminal investigation or prosecution; or 
‘‘(iii) prevents or could have prevented a li-
censee from complying with subsection (g)(7). 
‘‘(D) The Attorney General may not commence an 
enforcement action under subparagraph (A) with respect 
to a violation after the 5-year period that begins with— 
‘‘(i) the date of the violation; or 
‘‘(ii) if the licensee involved intentionally ob-
structed discovery of the violation, the date of dis-
covery of the violation. 
‘‘(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 of— 
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‘‘(i) the determination, and the grounds on 
which the determination was made; 
‘‘(ii) the nature of the penalty; and 
‘‘(iii) how, and by when, the licensee may re-
quest a hearing to review 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). 
‘‘(C) On timely receipt from the licensee of a request 
for such a review, the Attorney General shall stay the im-
position under paragraph (1) of any penalty involved, 
pending resolution of the review. 
‘‘(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 the hearing, the 
Attorney General shall deliver to the licensee a copy of 
each document which will be introduced as evidence at the 
hearing, and copies of all documents on which the deter-
mination is based. 
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