(C) APPLICABLE TO REVOLVERS.—The li-
censee shall not import, manufacture, or offer
for sale a pistol that does not have a safety fea-
ture which—
(i) automatically (for a double action
revolver) or by manual operation (for a
single action revolver) causes the hammer
to retract so that the firing pin does not
rest on the primer of the cartridge; and
(ii) is not disabled after a mass with
a weight equal to that of the revolver is
dropped 5 times onto the rear of the ham-
mer from a height of 1 meter in a line par-
allel to the barrel.
(D) BAN ON SALE OF LARGE CAPACITY
MAGAZINES.—The licensee shall not import,
manufacture, or offer for sale a large capacity
ammunition feeding device.
(2) 
PACKAGING
WARNINGS.—Beginning 
months after the date of the enactment of this Act,
the licensee shall not import, manufacture, or offer
for sale a handgun the packaging of which does not
include in 14 point boldface type the following warn-
ing:
‘‘This handgun is not equipped with a device that
fully blocks use by unauthorized users. More than 200,000
handguns like this one are stolen from their owners every
year in the United States. In addition, there are more than
1,000 suicides each year by younger children and teen-
agers who get access to firearms. Hundreds more die from
accidental discharge. It is likely that many more children
sustain serious wounds, or inflict such wounds accidentally
to others. In order to limit the chance of such misuse, it
is imperative that you keep this weapon locked in a secure
place and take other steps necessary to limit the possibility
of theft or accident. Failure to take reasonable preventa-
tive steps may result in innocent lives being lost, and in
some circumstances may result in your liability for these
deaths.’’.
(3) SALES AND DISTRIBUTION RULES.—The li-
censee shall comply with the following:
(A) 
AUTHORIZED
DISTRIBUTORS
AND
DEALERS.—The licensee shall not transfer a
firearm to a distributor of or dealer in firearms
unless the distributor or dealer has entered into
a written agreement with the licensee to do the
following:
(i) With respect to each firearms
transaction between the distributor or deal-
er and a person who is not licensed under
chapter 44 of title 18, United States Code,
and in the presence of the unlicensed
person—
(I) meet all requirements im-
posed by or under the chapter; and
(II) transfer possession of the
firearm to the unlicensed person.
(ii) Not sell a firearm at a gun show
unless a criminal background check is re-
quired to be completed before each firearm
sale at the gun show.
(C) INVENTORY TRACKING PLAN.—
(i) ELECTRONIC RECORDING OF AC-
QUISITIONS AND DISPOSITIONS.—After the
24-month period that begins with the date
of the enactment of this Act, the licensee
shall comply with the following:
(I) 
ACQUISITIONS.—Within 
business day after acquiring a fire-
arm, the licensee shall record elec-
tronically the make, model, caliber or
gauge, and serial number of the fire-
arm.
(II) 
DISPOSITIONS.—Within 
business day after disposing of a fire-
arm, the licensee shall record elec-
tronically the disposition.
(III) MONTHLY
BACKUPS.—The
licensee 
shall 
maintain 
monthly
backups of such records in a secure
container designed to prevent loss by
fire, theft, or other mishap.
(ii) MONTHLY INVENTORY ACCOUNT-
ING.—The licensee shall account for all
firearms acquired but not yet disposed of,
through a monthly electronic inventory
check, and maintain the account in a se-
cure location.
(iii) SECURITY OF RECORDS.—The li-
censee shall maintain all ATF Form 4473
firearm transaction records at the licens-
ee’s business premises in a secure con-
tainer designated to prevent loss by fire,
theft, or other mishap.
(D) SECURITY PLAN.—
(i) FIREARMS
ON
DISPLAY
DURING
BUSINESS HOURS.—The licensee shall keep
each firearm display case locked except
when removing a single firearm to show a
customer. The licensee shall not permit a
customer to handle a firearm except under
the direct supervision of an employee of
the licensee.
(ii) FIREARMS ON DISPLAY OUTSIDE
OF BUSINESS HOURS.—Other than during
business hours, the licensee shall store all
firearms in a locked fireproof safe or vault
in the licensee’s business premises or in
another secured and locked area.
(iii) AMMUNITION.—The licensee shall
store ammunition separately from all fire-
arms and in a manner inaccessible to cus-
tomers.
(E) JUVENILE PROTECTION.—
(i) CHILD
SAFETY
LOCKS.—The li-
censee shall not transfer possession or title
to a handgun to a person not licensed
under chapter 44 of title 18, United States
Code, unless the transferee is provided
with a secure gun storage or safety device
for the handgun.
(ii) ADULT
SUPERVISION.—The li-
censee shall not permit an individual who
has not attained 18 years of age to be in
any portion of the business premises of the
licensee in which a firearm or ammunition
is displayed, stored, offered for sale, or
sold, unless the individual is accompanied
by a parent or guardian of the individual.
(F) MULTIPLE HANDGUN SALES.—
(i) DUTIES ON DATE OF SALE.—On
any date on which the licensee sells 2 or
more handguns to a purchaser who is not
licensed under chapter 44 of title 18,
United States Code, the licensee—
(I) shall not transfer to the pur-
chaser possession of more than 1 of
the handguns; and
(II) shall file with the Bureau of
Alcohol, Tobacco and Firearms a mul-
tiple sales report with respect to the
sale.
(ii) RELEASE OF REMAINING HAND-
GUNS AFTER 14 DAYS.—During the 14-day
period that begins with the date of such a
sale, the licensee shall not transfer to the
purchaser possession of any of the remain-
ing handguns.
(G) CODE
OF
RESPONSIBLE
BUSINESS
PRACTICES.—
(i) QUARTERLY REPORTING OF HAND-
GUN SALES DATA TO BATF.—The licensee
shall provide to the Bureau of Alcohol, To-
bacco and Firearms quarterly reports of
the firearm sales data of the licensee,
downstream firearm sales data, and the
volume of firearm sales by make, model,
caliber, and gauge.
(ii) BAN
ON
HANDGUNS
READILY
CONVERTIBLE INTO MACHINE GUNS.—The
licensee shall not import, manufacture, or
offer for sale a handgun that can be read-
ily converted into a machinegun.
(iii) BAN
ON
HANDGUNS
DESIGNED
TO BE FINGERPRINT-RESISTANT.—The li-
censee shall not import, manufacture, or
offer for sale a firearm which is designed
to be resistant to fingerprints.
(iv) NO MARKETING TO MINORS OR
FOR USE IN CRIME.—The licensee shall not
market a firearm in a way that would
make the firearm particularly appealing to
individuals who have not attained 18 years
of age, or by advertising the firearm as
‘‘fingerprint-resistant’’.
(v) BAN
ON
NONIMPORTABLE
PIS-
TOLS.—The licensee shall not manufacture
or offer for sale a pistol which it would be
unlawful to import into the United States.
(vi) NO
FIREARM
ADVERTISEMENTS
NEAR SCHOOLS OR PUBLIC HOUSING.—The
licensee shall not cause any advertisement
for a firearm to be placed within 1,000
feet of any school or public housing prop-
erty.
(vii) VERIFY VALIDITY OF FEDERAL
FIREARMS
LICENSE.—Before transferring
a firearm to a person who claims to be li-
censed under chapter 44 of title 18, United
States Code, the licensee shall verify with
the Bureau of Alcohol, Tobacco and Fire-
arms that the person is so licensed.
(viii) NO
TRANSFERS
TO
CERTAIN
INDICTEES.—The licensee shall not trans-
fer a firearm to another licensee if the li-
censee knows or has reasonable cause to
believe that the other licensee is under in-
dictment for a violation of chapter 44 of
title 18, United States Code, or chapter 53
of the Internal Revenue Code of 1986.
(ix) IMPLEMENTATION
OF
SECURITY
PLAN.—The licensee shall implement a se-
curity plan for securing all firearms of the
licensee, including firearms being shipped
by the licensee, which includes the fol-
lowing:
(I) CONTROLLED MOVEMENT OF
EMPLOYEES
AND
VISITORS.—The li-
censee shall ensure that employee and
visitor movement into and out of the
manufacturer’s facility is only through
designated security control points,
that a visitor is admitted only after
positive identification and confirma-
tion of the purpose of the visit, and
that each employee and each visitor
passes through a metal detector be-
fore leaving.
(II) 
DESIGNATION
OF
RE-
STRICTED AREAS.—The licensee shall
designate any area where a firearm is
assembled or stored as a restricted
area, authorize access to such a re-
stricted area only for an employee
whose work requires the employee to
enter the area or for an escorted vis-
itor, and install any protective barrier
necessary to deny or impede unau-
thorized access to any restricted area.
(III) ENTRY
DETECTION
SYS-
TEM.—The licensee shall ensure that
there is a system to detect unauthor-
ized entry into any facility or area
where a firearm, ammunition, or a
component of a firearm is stored.
(IV) SHIPPING RULES.—The li-
censee shall not ship a firearm except
in a secure carton that does not bear
an identifying mark or word indi-
cating that the carton contains a fire-
arm. The licensee shall—
(aa) secure a large carton in
which a firearm is shipped with
steel strapping in 2 different di-
rections;
(bb) ship a firearm only by
carrier or freight forwarder who
warrants in writing that the car-
rier or forwarder conducts crimi-
nal background checks on all de-
livery personnel and reports all
thefts or losses of firearms to the
Bureau of Alcohol, Tobacco and
Firearms within 48 hours after
discovery; and
(cc) inspect periodically the
local facilities of any such carrier
or forwarder.
(x) BACKGROUND
CHECKS.—The li-
censee shall not transfer a firearm to a
person who is not licensed under chapter
44 of title 18, United States Code, unless
the national instant criminal background
check system established under section 103
of the Brady Handgun Violence Prevention
Act notifies the licensee that the informa-
tion available to the system does not dem-
onstrate that the receipt of a firearm by
the prospective transferee would violate
subsection (g) or (n) of section 922 of such
title or State law.
(xi) QUALIFIED
PURCHASERS.—The
licensee shall not transfer a firearm to a
person who is not licensed under chapter
44 of title 18, United States Code, unless
the person demonstrates to the licensee, in
such manner as the Secretary of the
Treasury shall by regulations prescribe
that the person knows how to load, oper-
ate, unload, and safely store the firearm,
and how to engage and disengage all safety
devices on or transferred with the firearm.
(xii) NO
SALE
TO
STRAW
PUR-
CHASER.—The licensee shall not sell a fire-
arm to any individual who the licensee
knows or has reasonable cause to believe is
purchasing the firearm for a person who is
prohibited by law from receiving a firearm.
(4) EMPLOYEE TRAINING.—The licensee shall
require—
(A) all employees of the licensee to attend
annual training developed in consultation with
the Bureau of Alcohol, Tobacco and Firearms
that includes training in—
(i) the law governing firearms trans-
fers;
(ii) how to recognize an individual
who may be purchasing a firearm for a
person who is prohibited by law from re-
ceiving a firearm and other means by
which unlawful firearms purchases are at-
tempted, how to recognize indications that
a firearm may be diverted for later sale or
transfer to a person who may not lawfully
receive a firearm, and how to respond to
such attempts and indications; and
(iii) the safe handling and storage of
firearms; and
(B) new employees of the licensee—
(i) before handling or selling a firearm
on behalf of the licensee, to attend training
on the topics set forth in subparagraph
(A), based on materials developed for the
annual training; and
(ii) thereafter, to attend the annual
training.
(b) EXEMPTIONS RELATING TO LAW ENFORCEMENT
AGENCIES AND THE MILITARY.—Subsection (a)(1) shall
not apply to—
(1) the importation or manufacture of a firearm
for transfer to, or possession by, the United States
or a department or agency of the United States, or
a State or a department, agency, or political subdivi-
sion of a State; or
(2) the transfer of a firearm to, or the posses-
sion of a firearm by, a law enforcement officer em-
ployed by an entity referred to in paragraph (1) of
this subsection, for a law enforcement purpose, re-
gardless of whether the law enforcement officer is on
or off-duty.
(c) DEFINITIONS.—In this section, the terms
‘‘State’’, ‘‘firearm’’, ‘‘licensed importer’’, ‘‘licensed manu-
facturer’’, ‘‘ammunition’’, ‘‘Secretary’’, ‘‘handgun’’, ‘‘large
capacity ammunition feeding device’’, ‘‘machinegun’’, and
‘‘secure gun storage or safety device’’ shall have the mean-
ings given in section 921(a) of title 18, United States
Code.
SEC. 6. DISPOSITION OF FIREARMS BY LAW ENFORCEMENT
AGENCIES.
(a) IN GENERAL.—The law enforcement agency shall
not dispose of a firearm except by destroying the firearm
or transferring the firearm to another law enforcement
agency.
(b) PROVISION
OF INFORMATION
TO NATIONAL
TRACING CENTER.—The law enforcement agency, on ac-
quiring or disposing of a firearm, shall notify the Bureau
of Alcohol, Tobacco and Firearms of—
(1) the make, model, and serial number of the
firearm; and
(2) the date of the acquisition or disposition.
(c) MAINTENANCE OF INFORMATION ON FIREARMS
TRANSFERS BY LAW ENFORCEMENT AGENCIES; USE OF
INFORMATION TO TRACE FIREARMS USED IN CRIME.—
The Bureau of Alcohol, Tobacco and Firearms shall collect
and maintain the information provided pursuant to sub-
section (b), and may use the information to assist a law
enforcement agency to trace firearms used in crime.
SEC. 7. INSPECTION AUTHORITY.
Section 923(g)(1)(B) of title 18, United States Code,
is amended—
(1) in clause (ii)(II), by striking ‘‘or’’;
(2) in clause (iii), by striking the period and in-
serting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(iv) for evaluating compliance of a licensed im-
porter or licensed manufacturer with section 5 of the
Safer Guns for Safer Communities Act.’’.
SEC. 8. EVALUATION.
The National Institute of Justice shall, to the extent
practicable, evaluate the effect, if any, of the grant pro-
gram in reducing gun-related crime in the jurisdictions in
which the recipients of grants under this Act are located.
Æ