sequent violation, shall immediately revoke the 
license.’’. 
(b) DIRECTIVE TO SENTENCING COMMISSION.— 
(1) IN
GENERAL.—Pursuant to its authority 
under section 994(p) of title 28, United States Code, 
the United States Sentencing Commission shall re-
view and, if appropriate, amend the Federal sen-
tencing guidelines and policy statements applicable 
to persons convicted of offenses under section 933 of 
title 18, United States Code (as added by subsection 
(a) of this section). 
(2) REQUIREMENTS.—In carrying out this sec-
tion, the Commission shall review the penalty struc-
ture that the guidelines provide based on the number 
of firearms involved in the offense and determine 
whether any changes to the penalty structure are ap-
propriate in order to reflect the intent of the Con-
gress that the penalties reflect the gravity of the of-
fense, the number of trafficked firearms purchased 
by or from the defendant, the extent of the knowl-
edge of the defendant about the overall scheme to 
traffic firearms, the amount of money or nonmone-
tary compensation provided to the defendant for the 
participation of the defendant, and the culpability of 
the defendant, including whether the defendant is a 
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licensed manufacturer, importer, or dealer and, as 
mitigating factors, whether the defendant is a rel-
ative or current or former intimate partner of an-
other individual involved in a conspiracy to traffic 
firearms, is a domestic violence survivor, or has been 
otherwise exploited by personal affection, fear of re-
prisal. or economic need to commit an offense under 
section 933 of title 18, United States Code. 
(c) DIRECTIVE TO ATF.— 
(1) DUTY TO INVESTIGATE.—The Director of 
the Bureau of Alcohol, Tobacco, Firearms and Ex-
plosives shall investigate the source of firearms traf-
ficked in violation of section 923 or 933 of title 18, 
United States Code, and in particular, whether the 
source is engaged in the business of importing, man-
ufacturing, or dealing in firearms in violation of sec-
tion 922(a)(1) of such title, and refer prosecutions 
of the source to the Attorney General. The Director 
shall assess whether regulations, informal guidance, 
licensee resources regarding trafficking, and the con-
duct of a firearms transferee would indicate, to a 
reasonable person, that the transferee may be vio-
lating section 932 or 933 of such title, and revise 
and re-issue the materials developed under section 
4(b) of this Act, accordingly. 
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(2) 
GUN
TRAFFICKING
AWARENESS
PRO-
GRAM.—The Director shall establish a program, to 
be known as the ‘‘Gun Trafficking Awareness Pro-
gram’’, in which licensees under chapter 44 of title 
18, United States Code, who have transferred fire-
arms to an individual who has violated section 
932(b) of such title, but who lack the mens rea to 
have committed a violation of section 933 of such 
title, may be enrolled for purposes of preventing fu-
ture such violations. The program shall include, at 
a minimum— 
(A) electronic or in-person training of such 
a licensee and all employees of the licensee who 
are responsible for handling firearms to identify 
signs of straw purchasing or gun trafficking; 
(B) the adoption by such a licensee of elec-
tronic record keeping and collation of records 
relevant to trafficking, including crime gun 
trace requests and multiple purchase reports; 
and 
(C) a requirement that such a licensee who 
operates retail premises from which firearms 
are transferred maintain audio and video sur-
veillance of all areas of the premises; and 
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(D) inspections of such a licensee, as ap-
propriate, and not more frequently than quar-
terly, for a period of 1 year, to ensure compli-
ance with such chapter. 
(d) DIRECTIVE
TO
THE ATTORNEY GENERAL.— 
Within 2 years after the date of the enactment of this Act 
and annually thereafter, the Attorney General shall submit 
to the Committee on the Judiciary of the Senate and the 
Committee on the Judiciary of the House of Representa-
tives a report containing the following information: 
(1) For the preceding 12-month period— 
(A) the number of investigations initiated 
for violations of section 933 of title 18, United 
States Code; 
(B) the number of individuals, entities, 
and Federal firearm licensees charged crimi-
nally or civilly for the violations; 
(C) the number of individuals, entities, and 
Federal firearm licensees indicted for the viola-
tions; 
(D) the number of investigations referred 
to the Attorney General by the Bureau of Alco-
hol, Tobacco, Firearms and Explosives that did 
not result in criminal or civil charges; and 
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(E) the number of licensees enrolled in, 
and the number of licenses determined to have 
successfully completed, the program established 
under subsection (c)(2). 
(2) To the extent the information is available, 
the average length of the sentences of imprisonment 
and average and mean monetary fines imposed on 
persons convicted of violations of section 933 of title 
18, United States Code, during the preceding 12- 
month period. 
(3) A narrative describing the trafficking 
schemes prosecuted in the preceding 12-month pe-
riod, including the sources of firearms, the roles of 
various defendants in the scheme, the number of 
firearms trafficked, and a description of any traf-
ficking practices or trends common among various 
firearm trafficking schemes. 
SEC. 7. ENHANCED REGULATION OF HIGH RISK DEALERS. 
Chapter 44 of title 18, United States Code, is amend-
ed by adding at the end the following: 
‘‘§ 935. Regulation of high risk dealers 
‘‘(a) IN GENERAL.—On a determination by the At-
torney General that a licensed dealer is a high risk dealer, 
the Attorney General shall— 
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proval of the application by the Attorney General in writ-
ing, the inspections of the dealer under subsection (a)(2) 
shall cease— 
‘‘(1) on certification by the Attorney General 
that the dealer— 
‘‘(A) has permanently altered the business 
practices of the dealer or made the physical im-
provements required under subsection (a)(1); 
and 
‘‘(B) will maintain the practices and im-
provements until otherwise notified by the At-
torney General; and 
‘‘(2) if, on 2 separate and consecutive occasions 
at least 6 months apart, the Attorney General has 
inspected and examined the books and records of the 
dealer and, during that period, the dealer has not 
been notified of any violations of Federal, State, or 
local law. 
‘‘(c) NOTICE.—The Attorney General shall inform 
high risk dealers in writing of their obligations under this 
section. 
‘‘(d) DEFINITION.—The term ‘high risk dealer’ 
means any dealer identified by the Attorney General as 
lacking sufficient policies, procedures, or controls to pre-
vent the diversion from lawful commerce of firearms or 
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ammunition in the firearms business inventory of the deal-
er or transferred by the dealer, and firearms possessed 
by the dealer that are to be destroyed, and, thus, necessi-
tating enhanced regulation and enforcement including reg-
ular inspection and examination of the inventory, records, 
and premises of the firearms business of the dealer. The 
Attorney General shall so identify such a dealer if— 
‘‘(1) the Attorney General has issued to the 
dealer a report of violation or warning letter; 
‘‘(2) the dealer has been the subject of a warn-
ing conference with the Attorney General within the 
preceding 36 months; or 
‘‘(3) in the preceding 12 months, the dealer was 
the source of 2 or more firearms that were used in 
a crime under Federal, State, or local law within 36 
months after the last known retail sale of the fire-
arm.’’. 
SEC. 8. EFFECTIVE DATE. 
Sections 2 through 6 shall take effect on the date 
that is 180 days after the date of the enactment of this 
Act. 
Æ 
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