I 
118TH CONGRESS 
2D SESSION 
H. R. 7042 
To reform the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 18, 2024 
Mr. MANN (for himself, Mr. DAVIDSON, Mr. EZELL, Mr. ELLZEY, Mr. 
GROTHMAN, Mr. MORAN, Mr. ROUZER, Mr. TIFFANY, Mr. WALBERG, 
Mr. JACKSON of Texas, Mr. MCCORMICK, Mr. ALFORD, Mr. DUNCAN, 
Mr. LAMALFA, Mr. CLYDE, Mrs. MILLER of Illinois, and Mr. BURCHETT) 
introduced the following bill; which was referred to the Committee on the 
Judiciary 
A BILL 
To 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 ‘‘Reining in Federal 
Licensing Enforcement Act of 2024’’ or the ‘‘RIFLE Act 
of 2024’’. 
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SEC. 2. GRADUATED PENALTIES FOR CIVIL VIOLATIONS BY 
FEDERAL FIREARMS LICENSEES. 
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 violated this chapter— 
‘‘(i) in the case of a violation that is not 
willful, the Attorney General shall notify the li-
censee of the violation and work with the li-
censee to rectify the violation within a commer-
cially reasonable time frame; or 
‘‘(ii) in the case of a willful violation, if the 
Attorney General, after working with the li-
censee to rectify the violation within a commer-
cially reasonable time frame, finds that a lesser 
action (such as a warning, warning letter, or 
warning conference) is not likely to lead to fu-
ture compliance, and the Attorney General 
seeks revocation of the license in an administra-
tive action, the Attorney General may— 
‘‘(I) if the licensee has no history of 
noncompliance with this chapter, suspend 
the license for not more than 30 days or 
such lesser period as would apply on com-
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pliance with such conditions as are speci-
fied by the Attorney General; or 
‘‘(II) in any other case, revoke the li-
cense. 
‘‘(B) In applying subparagraph (A), the Attorney 
General shall presume that the violation is not willful, ab-
sent clear and convincing evidence to the contrary. 
‘‘(C) For purposes of subparagraph (A): 
‘‘(i) A violation of this chapter with respect to 
2 or more firearms during a single transaction shall 
be considered a single violation. 
‘‘(ii) A violation of this chapter with respect to 
any category of record keeping requirements, even if 
involving multiple instances, shall be considered a 
single violation. 
‘‘(D) The Attorney General may not commence an 
enforcement action under subparagraph (A) with respect 
to a violation, after the 3-year period that begins with— 
‘‘(i) the date the violation occurred; or 
‘‘(ii) if the licensee intentionally obstructed dis-
covery of the violation, the date the violation is dis-
covered. 
‘‘(E) The Attorney General may not commence an en-
forcement action under subparagraph (A) with respect to 
a violation without first notifying the licensee of the rea-
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sons for the contemplated action and affording the licensee 
an opportunity to demonstrate or achieve compliance with 
this chapter and to submit facts, arguments, or proposals 
of adjustment. 
‘‘(2)(A)(i) Not less than 60 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 by certified 
return receipt mail— 
‘‘(I) of the determination, and the grounds 
on which the determination was made; 
‘‘(II) that sets forth the facts on which the 
Attorney General relied as a basis for the deter-
mination, including the facts pertaining to any 
determination of willfulness; 
‘‘(III) of the nature of the penalty; and 
‘‘(IV) that the licensee may, within 60 
days after receipt of the notice, request in writ-
ing a hearing to review the determination. 
‘‘(ii) Within 5 calendar days after serving the written 
notice on the licensee, the Attorney General, shall give 
written notice to the licensee of the date the written notice 
was so served and provide the licensee with proof of the 
service. 
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‘‘(B) A hearing to review a determination made under 
paragraph (1) with respect to a licensee shall not be held 
unless the licensee or an agent of the licensee requests 
such a hearing within 60 days after receiving the written 
notice required by subparagraph (A), and if held, shall be 
open to the public 
‘‘(C) On timely receipt from the licensee of a request 
for such a review, the Attorney General shall stay the im-
position of any penalty under paragraph (1), pending reso-
lution of the hearing, unless, in the case of a license rev-
ocation, the Attorney General establishes, at a hearing be-
fore an administrative law judge, by clear and convincing 
evidence, that the licensee committed the violation willfully 
and that the continued operation by the licensee of the 
business involved poses an immediate and grave threat to 
public safety. 
‘‘(3)(A) Within not fewer than 60 days after timely 
receipt from a licensee or an agent of the licensee of a 
written request for a hearing 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 an evidentiary hearing, 
at a location convenient to the licensee, to review the de-
termination, except that, if the licensee moves for leave 
to take the deposition of any witness identified by the At-
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torney General or any officer or employee of the Depart-
ment of Justice who was involved in the inspection or ex-
amination, or any prior inspection or examination on 
which the Attorney General relies, the administrative law 
judge shall grant the motion and adjust the hearing date 
accordingly. 
‘‘(B) Not less than 30 days before the hearing, 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 and a summary of the proposed 
sworn testimony of the witness; 
‘‘(ii) a copy of each document, in unredacted 
form, that will be introduced by the Attorney Gen-
eral as evidence at the hearing; 
‘‘(iii) copies of all documents on which the de-
termination is based; 
‘‘(iv) a complete copy of the file of the licensee 
maintained by the Attorney General; and 
‘‘(v) a sworn statement from the Attorney Gen-
eral as to whether or not there is a pending criminal 
investigation by the Attorney General of the licensee, 
which statement shall be supplemented or amended 
by the Attorney General if a criminal investigation 
is initiated before the conclusion of the hearing. 
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‘‘(C)(i) Within 120 days after the hearing, the admin-
istrative law judge shall issue a written decision setting 
forth findings of fact and conclusions of law, and a deci-
sion as to whether to affirm, modify, or reverse the deter-
mination. 
‘‘(ii) The findings of fact and conclusions of law and 
decision of the administrative law judge shall be— 
‘‘(I) de novo and not predicated on a presump-
tion that the determination of the Attorney General 
was correct; and 
‘‘(II) based on a clear and convincing standard 
of proof, which shall be borne by the Attorney Gen-
eral. 
‘‘(iii) The administrative law judge shall not make a 
determination to revoke a license unless the administrative 
law judge finds, by clear and convincing evidence, that— 
‘‘(I) the Attorney General notified the licensee 
in writing of all reasons for the contemplated action 
of the Attorney General; 
‘‘(II) the Attorney General afforded the licensee 
a commercially reasonable opportunity to dem-
onstrate or achieve compliance with this chapter; 
and 
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‘‘(III) the licensee has not complied, and is un-
likely to be able to achieve compliance, with this 
chapter. 
‘‘(iv) The Attorney General shall provide to the li-
censee a complete copy of the hearing transcript, including 
exhibits, within 60 days after the date of the hearing. 
‘‘(D) On request of the licensee, the Attorney General 
shall stay the effective date of any penalty, suspension, 
or revocation until there is a final, unreviewable judgment 
with respect to the determination of the administrative law 
judge, unless, in the case of a license revocation, the Attor-
ney General establishes, at a hearing before an adminis-
trative law judge, by clear and convincing evidence, that 
the licensee committed the violation willfully and that the 
continued operation by the licensee of the business in-
volved poses an immediate and grave threat to public safe-
ty. 
‘‘(E) An 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), except that the provisions of section 922(t)(5) 
regarding notice and opportunity for a hearing shall be 
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subject to the procedural and evidentiary requirements 
provided in this subsection. 
‘‘(f)(1) Within 60 days after a party receives a notice 
issued under subsection (d) of a decision to deny a license, 
or a notice issued under subsection (e)(3)(C) of a deter-
mination to suspend 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 trial of the determination. 
‘‘(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) or (e)(3). 
‘‘(3)(A) If the court decides that the determination 
was not authorized by law, the court shall order the Attor-
ney General to take such action as may be necessary to 
comply with the judgment of the court. 
‘‘(B) The court shall not make a determination to 
revoke a license unless the court finds, by clear and con-
vincing evidence, that— 
‘‘(i) the Attorney General notified the licensee 
in writing of all reasons for the contemplated action 
of the Attorney General; 
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‘‘(ii) the Attorney General afforded the licensee 
a commercially reasonable opportunity to dem-
onstrate or achieve compliance with this chapter; 
and 
‘‘(iii) the licensee has not complied, and is un-
likely to be able to comply, with this chapter. 
‘‘(4) If criminal proceedings are instituted against an 
applicant for a license under this chapter or a licensee al-
leging a violation of this chapter, and the applicant or li-
censee, as the case may be, is acquitted of the charges, 
or the proceedings are terminated, other than on motion 
of the Government before trial on the charges, the Attor-
ney General shall be absolutely barred from denying a li-
cense under this chapter, or suspending or revoking a li-
cense granted under this chapter, if the action would be 
based in whole or in part on the facts which form the basis 
of the criminal charges. 
‘‘(5) The Attorney General may not institute a pro-
ceeding to suspend or revoke a license granted under this 
chapter, more than 1 year after the filing of the indict-
ment or information. 
‘‘(6) The Attorney General may not institute a pro-
ceeding to suspend or revoke a license granted under this 
chapter, based on a violation that is finally determined to 
have occurred with respect to a different license.’’. 
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SEC. 3. CONSIDERATION OF FEDERAL FIREARMS LICENSE 
APPLICATIONS. 
Section 923(d) of title 18, United States Code, is 
amended by striking paragraph (2) and inserting 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. 
‘‘(3) The Attorney General may not deny an applica-
tion for a license based on— 
‘‘(A) any prior violation of this chapter by the 
applicant, if more than 5 years have elapsed since 
the date a license previously issued to the applicant 
under this chapter was terminated, unless the Attor-
ney General finds that the applicant is a person de-
scribed in section 922(g); 
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‘‘(B) the applicant having been employed by, or 
a responsible party for, a licensee whose license 
under this chapter was revoked, unless there is clear 
and convincing evidence that the applicant willfully 
violated this chapter in that capacity; or 
‘‘(C) the applicant being a spouse, former 
spouse, or child of a licensee whose license under 
this chapter was revoked, unless there is clear and 
convincing evidence that the applicant willfully vio-
lated this chapter as a responsible party under the 
license. 
‘‘(4) The procedures provided for in subsection (e) 
shall apply with respect to any applicant for a license 
under this chapter and any application for such a li-
cense.’’. 
SEC. 4. DEFINITION OF ‘‘WILLFULLY’’; CERTAIN EVIDENCE 
INADMISSIBLE TO PROVE WILLFULNESS. 
Section 923(e) of title 18, United States Code, as 
amended by section 2(a) of this Act, is amended by adding 
at the end the following: 
‘‘(5) For purposes of this subsection, the term ‘will-
fully’ means, with respect to conduct of an individual who 
holds a license or is designated in the records of the Attor-
ney General as a responsible party under a specific license, 
that the person— 
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‘‘(A) had actual knowledge of a clearly estab-
lished legal duty; 
‘‘(B) understood the obligation imposed by the 
legal duty; and 
‘‘(C) engaged in the conduct knowingly and in 
deliberate disregard of the legal duty. 
‘‘(6) Evidence that a person has received a document 
or other communication containing information about a 
requirement imposed by or under this chapter and evi-
dence that the person has signed an acknowledgment that 
the person understands the legal obligations of the person 
under this chapter shall not be admissible as part of the 
determination of the Attorney General, in an administra-
tive law hearing or in a court of law, to prove actual 
knowledge and shall not be admissible as evidence to es-
tablish a willful violation of this chapter. 
‘‘(7) Evidence that a person has substantial experi-
ence as a licensee, or has in other instances successfully 
complied with this chapter, shall not be admissible as part 
of the determination of the Attorney General, in an admin-
istrative law hearing or in a court of law, to prove actual 
knowledge and shall not be admissible as evidence to es-
tablished a willful violation of this chapter. 
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‘‘(8) In determining under this subsection whether 
conduct of a licensee was willful, the entire historical ad-
ministrative record of the licensee shall be considered.’’. 
SEC. 
5. 
RECONSIDERATION 
OF 
APPLICATIONS 
FROM 
FORMER LICENSEES WHOSE LICENSES WERE 
REVOKED, IN LIGHT OF NEW RULES PER-
TAINING TO WILLFULLNESS. 
The Attorney General shall reconsider each applica-
tion for a license under chapter 44 of title 18, United 
States Code, that is submitted by an individual whose li-
cense under such chapter was revoked or whose applica-
tion for a license was denied before the date of the enact-
ment of this Act, and that was disposed of on or before 
such date of enactment, and, in doing so, the Attorney 
General shall apply the amendments made by section 4 
of this Act. 
SEC. 6. ESTABLISHMENT OF FORMAL INSPECTION, EXAM-
INATION, AND INVESTIGATIVE STANDARDS. 
(a) IN GENERAL.—The Attorney General shall estab-
lish written standards for how the Bureau of Alcohol, To-
bacco, Firearms, and Explosives is to— 
(1) conduct inspections, examinations, or inves-
tigations of a possible violation of chapter 40 or 44 
of title 18, United States Code; and 
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(2) make license application denial, license sus-
pension, license revocation or other adverse deter-
minations regarding an applicant or licensee. 
(b) INCLUSION
OF
MITIGATING
FACTORS.—The 
standards shall include mitigation factors that must be 
considered before the Attorney General initiates any ad-
verse action against an applicant or licensee. 
(c) AVAILABILITY.—The written standards shall be 
made available to the public, and shall be provided by the 
Attorney General to applicants and licensees at the time 
of any license application and on demand. 
SEC. 7. LIMITATIONS ON USE OF FIREARMS PURCHASER 
INFORMATION. 
Section 923(g)(1)(D) of title 18, United States Code, 
is amended in the last sentence by inserting ‘‘, except that 
information identifying a person who has purchased or re-
ceived firearms or ammunition and who is not prohibited 
from doing so may not be so made available or so provided 
unless the agency involved has certified that the agency 
will not disclose the information to any entity other than 
a court, federal, State or local law enforcement agency, 
or prosecutor’’ before the period. 
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SEC. 8. 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), an en-
tity whose license issued under this chapter is expired, sur-
rendered, or revoked shall be afforded 90 days from the 
effective date of the expiration, surrender, or revocation 
(not counting any period in which an appeal of such a 
revocation is pending) to liquidate the firearms business 
inventory of the entity, which time may be extended on 
a showing of reasonable cause. During the 90-day period 
(including any extension of the period), the license in-
volved shall continue to be considered valid, notwith-
standing the expiration, surrender, or revocation, and the 
Attorney General shall issue letters of authorization to the 
entity on which licensees under this chapter and commer-
cial third parties may rely. At any time before the expira-
tion of the disposition period, the entity may transfer any 
remaining firearms from the firearms business inventory 
of the entity to the entity or, if more than 1 person holds 
an interest in the entity, to the interest holders, at which 
point the firearms are deemed to be a personal collection 
of the entity or interest holders, as the case may be. 
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