SEC. 303. INCREASED LICENSE FEES FOR DEALERS.
Section 923(a)(3) of title 18, United States Code, is
amended to read as follows:
‘‘(3) If the applicant—
‘‘(A) is a dealer in destructive devices or ammu-
nition for destructive devices, a fee of $2,000 per
year; or
‘‘(B) is a dealer not described in subparagraph
(A), a fee of $3,000 for 3 years.’’.
SEC. 304. INCREASED PENALTIES FOR MAKING KNOWINGLY
FALSE STATEMENTS IN CONNECTION WITH
FIREARMS.
Section 924(a)(3) of title 18, United States Code, is
amended by striking ‘‘one year’’ and inserting ‘‘10 years’’.
SEC. 305. DEALER INSPECTIONS.
Section 923(g)(1)(B) of title 18, United States Code,
is amended by striking all after ‘‘warrant—’’ and inserting
‘‘as necessary to ensure compliance with this chapter, to
further a criminal investigation, or to determine the dis-
position of one or more particular firearms.’’.
SEC. 306. GUN SHOWS.
(a) PROHIBITION OF CERTAIN HANDGUN TRANS-
FERS AT GUN SHOWS.—Section 922(b) of title 18, United
States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(4);
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; or’’; and
(3) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) any handgun to any person who is not a
licensed importer, licensed manufacturer, or licensed
dealer, at any place other than the location specified
on the license of the transferor.’’.
(b) TECHNICAL AMENDMENTS.—Section 923 of title
18, United States Code, is amended—
(1) in the first sentence of subsection (j), by in-
serting ‘‘, consistent with section 922(b)(6),’’ before
‘‘temporarily’’; and
(2) by redesignating subsection (1), as added by
section 110307 of the Violent Crime Control and
Law Enforcement Act of 1994, as subsection (l).
SEC. 307. ACQUISITION AND DISPOSITION RECORDS OF
DEALERS 
SUSPECTED 
OF 
SERVING 
AS
SOURCES OF ILLEGAL FIREARMS.
Section 923(g)(1) of title 18, United States Code, is
amended by adding at the end the following new subpara-
graph:
‘‘(E) If the Secretary, during a 1-year period, has
identified a licensed dealer as the source of 3 or more fire-
arms that have been recovered by law enforcement officials
in criminal investigations, or if the Secretary has reason
to believe that a licensed dealer is a source of firearms
used in crimes, the Secretary may require the dealer to
produce any or all records maintained by the dealer of ac-
quisition and disposition of firearms, and may continue
to impose that requirement until the Secretary determines
that the dealer is not a source of firearms used in
crimes.’’.
SEC. 308. DEALER RESPONSIBILITY FOR SALES TO FELONS
OR MINORS.
(a) IN GENERAL.—Chapter 44 of title 18, United
States Code, is amended by inserting after section 922 the
following new section:
‘‘§ 922A. Tort liability of licensed dealers
‘‘(a)(1) Any person suffering physical injury arising
from a crime of violence (as defined in section 924(c)(3))
in which a qualified firearm is used may bring an action
in any United States district court against any qualified
licensed dealer for damages and such other relief as the
court determines to be appropriate.
‘‘(2) As used in paragraph (1), the term ‘qualified
firearm’ means a firearm that—
‘‘(A) has been transferred by a licensed dealer
to a person who—
‘‘(i) has been convicted in any court of a
crime punishable by imprisonment for a term
exceeding 1 year; or
‘‘(ii) has not attained the age of 18 years;
and
‘‘(B) is subsequently used by any person in a
crime of violence (as defined in section 924(c)(3)).
‘‘(3) As used in paragraph (1), the term ‘qualified
licensed dealer’ means, with respect to a firearm, a li-
censed dealer who transfers the firearm to a person, know-
ing or having reasonable cause to believe that the person
is prohibited by Federal or State law from receiving the
firearm.
‘‘(b)(1) The defendant in an action brought under
subsection (a) shall be held liable in tort, without regard
to fault or proof of defect, for all direct and consequential
damages arising from the crime of violence referred to
therein, except as provided in paragraph (2). The court,
in its discretion, may award punitive damages.
‘‘(2) There shall be no liability under subsection (a)
if it is established by a preponderance of the evidence that
the plaintiff suffered the physical injury while committing
the crime of violence referred to therein.’’.
(b) TECHNICAL AMENDMENT.—The chapter analysis
for chapter 44 of title 18, United States Code, is amended
by inserting after the item relating to section 922 the fol-
lowing new item:
‘‘Sec. 922A. Tort liability of licensed dealers.’’.
SEC. 309. INTERSTATE SHIPMENT OF FIREARMS.
Section 922(e) of title 18, United States Code, is
amended—
(1) in the first sentence by striking ‘‘It shall
be’’ and inserting the following:
‘‘(2) It shall be’’;
(2) in the second sentence by striking ‘‘No com-
mon or contract carrier’’ and inserting the following:
‘‘(3) No common or contract carrier’’;
(3) by inserting ‘‘(1) Any common or contract
carrier that undertakes to transport or deliver fire-
arms in interstate or foreign commerce shall, not
less frequently than monthly, obtain from the Sec-
retary a list of licensed dealers. The Secretary shall
provide to any common or contract carrier, upon re-
quest and without charge, a list of licensed dealers
and their license numbers.’’ after ‘‘(e)’’;
(4) in paragraph (2), as designated by para-
graph (1)—
(A) by striking ‘‘, to persons other than li-
censed importers, licensed manufacturers, li-
censed dealers, or licensed collectors,’’; and