I 
118TH CONGRESS 
1ST SESSION H. R. 3863 
To ensure greater accountability by licensed firearms dealers. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 6, 2023 
Mr. MAGAZINER (for himself, Ms. NORTON, Mr. CASE, Ms. KELLY of Illinois, 
Mr. MCGOVERN, Mr. AUCHINCLOSS, Mr. KHANNA, Ms. SCANLON, and 
Ms. DELBENE) introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To ensure greater accountability by licensed firearms dealers. 
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 ‘‘Keeping Gun Dealers 
Honest Act of 2023’’. 
SEC. 2. INCREASING THE NUMBER OF ALLOWED COMPLI-
ANCE INSPECTIONS OF FIREARMS DEALERS. 
Section 923(g)(1)(B)(ii)(I) of title 18, United States 
Code, is amended by striking ‘‘once’’ and inserting ‘‘3 
times’’. 
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SEC. 3. INCREASING PENALTIES ON FIREARMS LICENSEES. 
Section 924(a)(3) of title 18, United States Code, is 
amended in the matter following subparagraph (B) by 
striking ‘‘one year’’ and inserting ‘‘5 years’’. 
SEC. 4. SERIOUS RECORDKEEPING OFFENSES THAT AID 
GUN TRAFFICKING. 
Section 924(a)(3) of title 18, United States Code, is 
amended by striking the period at the end and inserting 
‘‘. If the conduct described in subparagraph (A) or (B) 
is in relation to an offense under subsection (a)(6) or (d) 
of section 922, the licensed dealer, licensed importer, li-
censed manufacturer, or licensed collector shall be fined 
under this title, imprisoned for not more than 10 years, 
or both.’’. 
SEC. 5. SUSPENSION OF FIREARMS DEALER’S LICENSE AND 
CIVIL PENALTIES FOR VIOLATIONS OF THE 
GUN CONTROL ACT. 
Section 923 of title 18, United States Code, is 
amended by striking subsections (e) and (f) and inserting 
the following: 
‘‘(e)(1)(A) The Attorney General may, after notice 
and opportunity for hearing, suspend or revoke any license 
issued under this section, or may subject the licensee to 
a civil penalty of not more than $10,000 per violation, if 
the holder of the license— 
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‘‘(i) has violated any provision of this chapter 
or any rule or regulation prescribed by the Attorney 
General under this chapter; or 
‘‘(ii) except as provided in subparagraph (B), 
fails to have secure gun storage or safety devices 
available at any place in which firearms are sold 
under the license to persons who are not licensees. 
‘‘(B) Subparagraph (A)(ii) shall not apply in any case 
in which a secure gun storage or safety device is tempo-
rarily unavailable because of theft, casualty loss, consumer 
sales, backorders from a manufacturer, or any other simi-
lar reason beyond the control of the licensee. 
‘‘(2) The Attorney General may, after notice and op-
portunity for hearing, suspend or revoke the license of, 
or assess a civil penalty of not more than $10,000 on, a 
dealer who transfers armor piercing ammunition. 
‘‘(3) The Attorney General may at any time com-
promise, mitigate, or remit the liability with respect to any 
violation of this chapter or any rule or regulation pre-
scribed by the Attorney General under this chapter. 
‘‘(4) The Attorney General’s actions under this sub-
section may be reviewed only as provided in subsection (f). 
‘‘(f)(1) Any person whose application for a license is 
denied and any holder of a license which is suspended or 
revoked or who is assessed a civil penalty shall receive a 
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written notice from the Attorney General stating specifi-
cally the grounds upon which the application was denied 
or upon which the license was suspended or revoked or 
the civil penalty assessed. Any notice of a suspension or 
revocation of a license shall be given to the holder of the 
license before the effective date of the suspension or rev-
ocation. 
‘‘(2) If the Attorney General denies an application 
for a license, or suspends or revokes a license, or assesses 
a civil penalty, the Attorney General shall, upon request 
by the aggrieved party, promptly hold a hearing to review 
the denial, suspension, revocation, or assessment. In the 
case of a suspension or revocation of a license, the Attor-
ney General shall, on the request of the holder of the li-
cense, stay the effective date of the suspension or revoca-
tion. A hearing under this paragraph shall be held at a 
location convenient to the aggrieved party. 
‘‘(3)(A) If after a hearing held under paragraph (2) 
the Attorney General decides not to reverse the decision 
to deny an application or suspend or revoke a license or 
assess a civil penalty, the Attorney General shall give no-
tice of the decision to the aggrieved party. 
‘‘(B) The aggrieved party may at any time within 60 
days after the date notice is given under subparagraph 
(A) file a petition with the United States district court 
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for the district in which the party resides or in which the 
party’s principal place of business is located for a de novo 
judicial review of the denial, suspension, revocation, or as-
sessment. 
‘‘(C) In a proceeding conducted under this para-
graph, the court may consider any evidence submitted by 
the parties to the proceeding without regard to whether 
such evidence was considered at the hearing held under 
paragraph (2). 
‘‘(D) If the court decides that the Attorney General 
was not authorized to deny the application or to suspend 
or revoke the license or to assess the civil penalty, the 
court shall order the Attorney General to take such action 
as may be necessary to comply with the judgment of the 
court.’’. 
SEC. 6. TERMINATION OF FIREARMS DEALER’S LICENSE 
UPON FELONY CONVICTION. 
Section 925(b) of title 18, United States Code, is 
amended by striking ‘‘until any conviction pursuant to the 
indictment becomes final’’ and inserting ‘‘until the date 
of any conviction pursuant to the indictment’’. 
SEC. 7. AUTHORITY TO HIRE ADDITIONAL PERSONNEL. 
The Director of the Bureau of Alcohol, Tobacco, 
Firearms and Explosives may hire at least 80 additional 
employees for the purpose of carrying out additional in-
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spections as provided for in the amendments made by this 
Act. 
SEC. 8. AUTHORITY TO REQUIRE LICENSED DEALER TO 
CONDUCT A PHYSICAL INVENTORY AND PRO-
VIDE INVENTORY RECORD IF DEALER HAS 
UNLAWFULLY TRANSFERRED A FIREARM OR 
10 OR MORE CRIME GUNS ARE TRACED TO 
THE DEALER. 
(a) IN GENERAL.—Section 923(g)(1) of title 18, 
United States Code, is amended by adding at the end the 
following: 
‘‘(E) The Attorney General may require a licensed 
importer, licensed manufacturer, or licensed dealer to con-
duct a physical inventory of the firearms in the business 
inventory of the licensee, and provide the Attorney General 
with a detailed record of the physical inventory if— 
‘‘(i) the licensee has been convicted of transfer-
ring a firearm unlawfully; or 
‘‘(ii) the Attorney General finds that 10 or 
more firearms used in a crime under Federal, State, 
or local law have been traced back to the licensee.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 923(j) of such title is amended in 
the 6th sentence by inserting ‘‘, except as required 
under subsection (g)(1)(E)’’ before the period. 
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(2) The matter under the heading ‘‘SALARIES 
AND EXPENSES’’ under the heading ‘‘BUREAU OF 
ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES’’ 
under title II of division B of the Consolidated and 
Further Continuing Appropriations Act, 2013 (Pub-
lic Law 113–6; 127 Stat. 247) is amended in the 
5th proviso by inserting ‘‘, except as required under 
subsection (g)(1)(E) of such section 923’’ before the 
colon. 
SEC. 9. ISSUANCE OF LICENSES. 
Section 923 of title 18, United States Code, is 
amended— 
(1) in subsection (c)— 
(A) by inserting ‘‘(1)’’ before ‘‘Upon’’; 
(B) in the first sentence, by inserting ‘‘, 
subject to paragraph (2),’’ after ‘‘Attorney Gen-
eral shall’’; and 
(C) by adding at the end the following: 
‘‘(2) The Attorney General may deny an application 
submitted under subsection (a) or (b) if the Attorney Gen-
eral determines that— 
‘‘(A) issuing the license would pose a danger to 
public safety; or 
‘‘(B) the applicant— 
‘‘(i) is not likely to comply with the law; or 
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‘‘(ii) is otherwise not suitable to be issued 
a license.’’; and 
(2) in subsection (d)(1), in the matter pre-
ceding subparagraph (A), by inserting ‘‘, subject to 
subsection (c)(2),’’ after ‘‘shall’’. 
SEC. 10. LIABILITY STANDARDS. 
Section 923 of title 18, United States Code, is 
amended— 
(1) in subsection (c), in the third sentence, by 
striking ‘‘willfully’’; and 
(2) in subsection (d), by striking ‘‘willfully’’ 
each place it appears. 
SEC. 11. REGULATORY FLEXIBILITY. 
Section 926(a) of title 18, United States Code, is 
amended, in the matter preceding paragraph (1), by strik-
ing ‘‘only’’. 
SEC. 12. REPORT TO CONGRESS. 
The Director of the Bureau of Alcohol, Tobacco, 
Firearms and Explosives shall submit biennial reports to 
Congress on the implementation of this Act and the 
amendments made by this Act, which shall include— 
(1) a statement by the Director as to what ad-
ditional resources, if any, are necessary in order to 
implement this Act and the amendments made by 
this Act; and 
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(2) any recommendations of the Director for 
how better to ensure that— 
(A) firearms dealers are complying with all 
laws and regulations that apply with respect to 
dealing in firearms; and 
(B) noncompliant firearms dealers are sub-
ject to appropriate action in a timely manner. 
SEC. 13. SEVERABILITY. 
If any provision of this Act or of an amendment made 
by this Act, or the application of such a provision to any 
person or circumstance, is held to be invalid, the remain-
der of this Act or of such an amendment, or the applica-
tion of this Act or of such an amendment to other persons 
or circumstances, shall not be affected. 
Æ 
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