paragraph (A) of this paragraph of the theft of a firearm, 
the Attorney General shall conduct an independent inspec-
tion of the security of the premises at which the theft oc-
curred, which may include an inspection of the measures 
taken to implement the security plan submitted by the li-
censed dealer pursuant to subsection (d)(1)(G). 
‘‘(ii) On completion of the security inspection, the At-
torney General shall provide the licensed dealer with— 
‘‘(I) a notice of any violation by the licensed 
dealer of any security requirements prescribed under 
section 926(d); and 
‘‘(II) recommendations for improving security 
of the premises involved.’’. 
(b) EXEMPTION OF STOLEN FIREARMS FROM PROD-
UCT LIABILITY.—Section 4(4) of the Protection of Lawful 
Commerce in Arms Act (15 U.S.C. 7903(4)) is amended 
by inserting ‘‘, except any such firearm the theft of which 
is required by section 923(g)(6)(A) of such title to be re-
ported’’ before the period. 
SEC. 7. CIVIL ENFORCEMENT. 
Section 923 of title 18, United States Code, as 
amended by section 2(c)(1) of this Act, is amended by 
adding at the end the following: 
‘‘(n) In the case of a licensed dealer who the Attorney 
General has found to be in violation of a regulation pre-
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scribed under section 926(d), to not have implemented a 
corrective action required by the Attorney General at the 
completion of a security inspection conducted under sub-
section (g)(6)(B)(i) of this section within 30 days after 
the date of the inspection, or to be in violation of sub-
section (g)(8) of this section— 
‘‘(1) the Attorney General shall— 
‘‘(A) if the violation is not a result of gross 
negligence by the licensed dealer— 
‘‘(i) in the case of the 1st such viola-
tion of the law or regulation by the li-
censed dealer, if not preceded by a viola-
tion to which subparagraph (B) applies, 
transmit to the licensed dealer a written 
notice specifying the violation, which shall 
include a copy of the provision of law or 
regulation violated and a plan for how to 
cure the violation; 
‘‘(ii) in the case of the 2nd such viola-
tion by the licensed dealer, if not preceded 
by a violation to which subparagraph (B) 
applies, impose a civil money penalty in an 
amount that is not less than $2,500 and 
not more than $20,000; 
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‘‘(iii) in the case of the 3rd such viola-
tion by the licensed dealer, if not preceded 
by a violation to which subparagraph (B) 
applies, suspend the license to deal in fire-
arms issued to the licensed dealer under 
this chapter until the violation ceases; 
‘‘(iv) in the case of the 4th such viola-
tion by the licensed dealer, whether or not 
preceded by a violation to which subpara-
graph (B) applies, revoke that license; or 
‘‘(v) in the case of any such violation 
by the licensed dealer, if preceded by a vio-
lation to which subparagraph (B) applies, 
apply the penalty authorized under this 
subsection that is 1 level greater in sever-
ity than the level of severity of the penalty 
most recently applied to the licensed dealer 
under this subsection; or 
‘‘(B) if the violation is a result of such 
gross negligence— 
‘‘(i) in the case of the 1st such viola-
tion by the licensed dealer, impose a civil 
money penalty in an amount that is not 
less than $2,500 and not more than 
$20,000; 
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‘‘(ii) in the case of the 2nd such viola-
tion by the licensed dealer— 
‘‘(I) impose a civil money penalty 
in an amount equal to $20,000; or 
‘‘(II) suspend the license to deal 
in firearms issued to the licensed deal-
er under this chapter until the viola-
tion ceases; or 
‘‘(III) revoke that license; or 
‘‘(iii) in the case of the 3rd or subse-
quent such violation by the licensed dealer, 
apply the penalty authorized under this 
subsection that is 1 or 2 levels greater in 
severity than the level of severity of the 
penalty most recently applied to the li-
censed dealer under this subsection; and 
‘‘(2) in the case of any such violation, if the At-
torney General finds that the nature of the violation 
indicates that the continued operation of a firearms 
business by the licensed dealer presents an imminent 
risk to public safety, the Attorney General shall, not-
withstanding paragraph (1), immediately suspend 
the license to deal in firearm issued to the licensed 
dealer under this chapter and secure the firearms in-
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ventory of the licensed dealer, until the violation 
ceases.’’. 
SEC. 8. NO EFFECT ON STATE LAWS GOVERNING DEALING 
IN FIREARMS. 
Nothing in this Act shall be interpreted to preclude 
a State from imposing or enforcing any requirement relat-
ing to dealing in firearms (as defined in section 921(a)(3) 
of title 18, United States Code). 
SEC. 9. REPEAL OF PROHIBITION ON DENIAL OF FEDERAL 
FIREARM LICENSE DUE TO LACK OF BUSI-
NESS ACTIVITY. 
The matter under the heading ‘‘Bureau of Alcohol, 
Tobacco, Firearms and Explosives—Salaries and Ex-
penses’’ in title II of division B of the Consolidated and 
Further Continuing Appropriations Act, 2013 (18 U.S.C. 
923 note; Public Law 113–6; 127 Stat. 248) is amended 
by striking the 6th proviso. 
SEC. 10. REPEAL OF LIMITATIONS RELATING TO USE OF 
FIREARMS TRACE DATA. 
(a) The matter under the heading ‘‘Bureau of Alco-
hol, Tobacco, Firearms and Explosives—Salaries and Ex-
penses’’ in title I of division B of the Consolidated and 
Further Continuing Appropriations Act, 2012 (18 U.S.C. 
923 note; Public Law 112–55; 125 Stat. 609–610) is 
amended by striking the 6th proviso. 
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(b) The 6th proviso under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Salaries and 
Expenses’’ in title II of division B of the Consolidated Ap-
propriations Act, 2010 (18 U.S.C. 923 note; Public Law 
111–117; 123 Stat. 3128–3129) is amended by striking 
‘‘beginning in fiscal year 2010 and thereafter’’ and insert-
ing ‘‘in fiscal year 2010’’. 
(c) The 6th proviso under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Salaries and 
Expenses’’ in title II of division B of the Omnibus Appro-
priations Act, 2009 (18 U.S.C. 923 note; Public Law 111– 
8; 123 Stat. 574–576) is amended by striking ‘‘beginning 
in fiscal year 2009 and thereafter’’ and inserting ‘‘in fiscal 
year 2009’’. 
(d) The 6th proviso under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Salaries and 
Expenses’’ in title II of division B of the Consolidated Ap-
propriations Act, 2008 (18 U.S.C. 923 note; Public Law 
110–161; 121 Stat. 1903–1904) is amended by striking 
‘‘beginning in fiscal year 2008 and thereafter’’ and insert-
ing ‘‘in fiscal year 2008’’. 
(e) The 6th proviso under the heading ‘‘Bureau of 
Alcohol, Tobacco, Firearms and Explosives—Salaries and 
Expenses’’ in title I of the Science, State, Justice, Com-
merce, and Related Agencies Appropriations Act, 2006 
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(18 U.S.C. 923 note; Public Law 109–108; 119 Stat. 
2295–2296) is amended by striking ‘‘with respect to any 
fiscal year’’. 
(f) The 6th proviso under the heading in title I of 
division B of the Consolidated Appropriations Act, 2005 
(18 U.S.C. 923 note; Public Law 108–447; 118 Stat. 
2859–2860) is amended by striking ‘‘with respect to any 
fiscal year’’. 
(g) Section 644 of title VI of division J of the Con-
solidated Appropriations Resolution, 2003 (5 U.S.C. 552 
note; Public Law 108–7; 117 Stat. 473–474) is amended 
by striking ‘‘or any other Act with respect to any fiscal 
year’’. 
SEC. 11. LOST AND STOLEN REPORTING REQUIREMENT. 
(a) IN GENERAL.—Section 922 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(aa) The owner of a firearm shall report the theft 
or loss of the firearm, within 30 days after the owner be-
comes aware of the theft or loss, to the Attorney General 
and to the appropriate local authorities.’’. 
(b) CIVIL PENALTY.—Section 924 of such title is 
amended by adding at the end the following: 
‘‘(q) Whoever violates section 922(aa) shall be fined 
not more than $1,000 in a civil proceeding.’’. 
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