Title: Ammunition Background Check Act of 2018
Policy area: Crime and Law Enforcement

Summary:
Ammunition Background Check Act of 2018
This bill establishes new federal requirements for ammunition sales.
Among other things, the bill does the following:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2627 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2627

             To appropriately restrict sales of ammunition.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2018

Mr. Blumenthal (for himself, Mr. Murphy, and Mr. Whitehouse) introduced 
the following bill; which was read twice and referred to the Committee 
                            on the Judiciary

_______________________________________________________________________

                                 A BILL


 
             To appropriately restrict sales of ammunition.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ammunition Background Check Act of 
2018''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Under current Federal law, it is illegal to sell 
        firearms or ammunition to certain individuals, including 
        felons, fugitives, drug addicts, and those deemed ``mentally 
        defective'' or committed to a mental institution.
            (2) There is no requirement under Federal law that sellers 
        of ammunition conduct a background check to determine whether 
        potential purchasers are in fact prohibited by law from buying 
        ammunition.
            (3) By contrast, under current Federal law, licensed 
        sellers of firearms are required by law to conduct an instant 
        background check using the National Instant Criminal Background 
        Check System of the Justice Department.
            (4) Over the last decade, there have been over 100,000,000 
        background checks conducted under the National Instant Criminal 
        Background Check System with respect to firearms sales, 
        resulting in the blocking of more than 1,500,000 sales of 
        firearms to felons, fugitives, drug addicts, and the mentally 
        ill, among others.
            (5) The vast majority of instant background checks on 
        firearms purchases occur in an average of 30 seconds, at 
        minimal inconvenience to firearms sellers and law-abiding 
        purchasers.
            (6) The requirement of background checks for ammunition 
        purchases would pose a minimal inconvenience to ammunition 
        sellers and law-abiding purchasers, and would help reduce gun-
        related violence.
            (7) Current Federal law includes a variety of other 
        provisions regulating the sale of firearms, including limits on 
        interstate gun sales and recordkeeping requirements designed to 
        assist in criminal investigations, that do not apply to sales 
        of ammunition.
            (8) Sales of ammunition should be held to similar 
        requirements as sales of firearms.

SEC. 3. BACKGROUND CHECKS.

    (a) Requiring Background Checks for Purchases of Ammunition.--
            (1) In general.--Section 922 of title 18, United States 
        Code, is amended by inserting after subsection (u) the 
        following:
    ``(v)(1) Beginning on the date that is 180 days after the date of 
enactment of the Ammunition Background Check Act of 2018, no person who 
is licensed under this chapter shall transfer ammunition to any other 
person who is not licensed under this chapter, unless--
            ``(A) before the completion of the transfer, the licensee 
        contacts the national instant criminal background check system 
        established under section 103 of the Brady Handgun Violence 
        Prevention Act (34 U.S.C. 40901);
            ``(B) the system provides the licensee with a unique 
        identification number; and
            ``(C) the transferor has verified the identity of the 
        transferee by examining a valid identification document, as 
        defined in section 1028(d) of this title, of the transferee 
        containing a photograph of the transferee.
    ``(2) If receipt of ammunition would not violate subsection (g) or 
(n) or State law, the system shall--
            ``(A) assign a unique identification number to the 
        transfer;
            ``(B) provide the licensee with the number; and
            ``(C) destroy all records of the system with respect to the 
        call (other than the identifying number and the date the number 
        was assigned) and all records of the system relating to the 
        person or the transfer.
    ``(3) Paragraph (1) shall not apply to an ammunition transfer 
between a licensee and another person if--
            ``(A)(i) such other person has presented to the licensee a 
        permit that--
                    ``(I) allows such other person to possess or 
                acquire ammunition; and
                    ``(II) was issued not more than 5 years earlier by 
                the State in which the transfer is to occur; and
            ``(ii) the law of the State in which the transfer is to 
        take place provides that such a permit is to be issued only 
        after an authorized government official has verified that the 
        information available to such official does not indicate that 
        possession of a firearm or ammunition by such other person 
        would be in violation of law;
            ``(B) the Attorney General has approved the transfer in the 
        same manner as provided in section 5812 of the Internal Revenue 
        Code of 1986; or
            ``(C) on application of the transferor, the Attorney 
        General has certified that compliance with paragraph (1) is 
        impracticable because--
                    ``(i) the ratio of the number of law enforcement 
                officers of the State in which the transfer is to occur 
                to the number of square miles of land area of the State 
                does not exceed 0.0025;
                    ``(ii) the business premises of the licensee at 
                which the transfer is to occur are extremely remote in 
                relation to the chief law enforcement officer, as 
                defined in subsection (s)(8); and
                    ``(iii) there is an absence of telecommunications 
                facilities in the geographical area in which the 
                business premises are located.
    ``(4) If the national instant criminal background check system 
notifies any person licensed under this chapter that the information 
available to the system does not demonstrate that the receipt of 
ammunition by such other person would violate subsection (g) or (n) or 
State law, and the licensee transfers ammunition to such other person, 
the seller shall include in the record of the transfer the unique 
identification number provided by the system with respect to the 
transfer.
    ``(5) If any person licensed under this chapter knowingly transfers 
ammunition to another person and knowingly fails to comply with 
paragraph (1) with respect to the transfer and, at the time such other 
person most recently proposed the transfer, the national instant 
criminal background check system was operating and information was 
available to the system demonstrating that receipt of ammunition by 
such other person would violate subsection (g) or (n) or State law, the 
Attorney General may, after notice and opportunity for a hearing--
            ``(A) suspend for not more than 6 months or revoke any 
        license issued to the licensee under section 923; and
            ``(B) impose on the licensee a civil fine of not more 
        than--
                    ``(i) in the case of a first violation, $5,000;
                    ``(ii) in the case of a second violation, $25,000; 
                and
                    ``(iii) in the case of any subsequent violation, 
                $100,000.
    ``(6) Neither a local government nor an employee of the Federal 
Government or of any State or local government responsible for 
providing information to the national instant criminal background check 
system shall be liable in an action at law for damages--
            ``(A) for failure to prevent the sale or transfer of 
        ammunition to a person whose receipt or possession of the 
        ammunition is unlawful under this section; or
            ``(B) for preventing such a sale or transfer to a person 
        who may lawfully receive or possess ammunition.''.
            (2) Regulations relating to retention and destruction of 
        records in system.--In promulgating regulations to carry out 
        section 922(v)(2)(C) of title 18, United States Code, as added 
        by this Act, the Attorney General shall ensure that the records 
        described in that subsection are destroyed not later than 3 
        business days after the date on which a licensee is notified 
        that a transfer of ammunition may proceed under that 
        subsection.
            (3) Conforming amendments.--
                    (A) Title 18.--Section 922 of title 18, United 
                States Code, is amended--
                            (i) in subsection (c)--
                                    (I) in the matter preceding 
                                paragraph (1), by inserting ``or 
                                ammunition'' after ``sell a firearm'';
                                    (II) in paragraph (1)--
                                            (aa) by inserting ``or 
                                        ammunition'' after ``a 
                                        firearm'';
                                            (bb) by inserting ``or 
                                        ammunition'' after ``this 
                                        firearm''; and
                                            (cc) by inserting ``or 
                                        ammunition'' after ``the 
                                        firearm''; and
                                    (III) in paragraph (2), by 
                                inserting ``or ammunition'' after 
                                ``firearm'' each place it appears; and
                            (ii) in subsection (d), in the matter 
                        following paragraph (9), by adding at the end, 
                        the following: ``Any person who is licensed 
                        under this chapter and who sells ammunition to 
                        any of the persons described in paragraphs (1) 
                        through (9) after failing to comply with the 
                        requirements of subsection (v) shall be deemed 
                        to have acted knowingly with respect to this 
                        subsection.''.
                    (B) Penalty.--Section 924(a)(5) of title 18, United 
                States Code, is amended by striking ``or (t)'' and 
                inserting ``, (t), or (v)''.
                    (C)  Brady handgun violence prevention act.--
                Section 103 of the Brady Handgun Violence Prevention 
                Act (34 U.S.C. 40901) is amended--
                            (i) by inserting ``or ammunition'' after 
                        ``firearm'' each place it appears, except where 
                        ``firearm'' appears in subsection (j);
                            (ii) in subsection (i)--
                                    (I) in the subsection heading, by 
                                inserting ``or Ammunition'' after 
                                ``Firearms''; and
                                    (II) in paragraph (2), by inserting 
                                `` ammunition,'' after ``firearms,''; 
                                and
                            (iii) in subsection (j)(2), inserting 
                        ```ammunition','' after ``The terms''.
    (b) Ammunition Transfers.--
            (1) In general.--Chapter 44 of title 18, United States 
        Code, is amended by adding at the end the following:
``Sec. 932. Background checks for ammunition transfers by unlicensed 
              persons
    ``(a) Definitions.--In this section--
            ``(1) the term `unlicensed transferee' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to receive ammunition from an 
                unlicensed transferor; and
            ``(2) the term `unlicensed transferor' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to transfer ammunition to an 
                unlicensed transferee.
    ``(b) Prohibition.--
            ``(1) In general.--It shall be unlawful for an unlicensed 
        transferor to knowingly transfer ammunition to an unlicensed 
        transferee and knowingly fail to obtain a background check 
        conducted by a licensed dealer in accordance with subsection 
        (d) with respect to the transfer.
            ``(2) Criminal penalty.--An unlicensed transferor who 
        violates paragraph (1) shall be fined under this title, 
        imprisoned for not more than 1 year, or both.
    ``(c) Civil Penalty.--If any unlicensed transferor knowingly 
transfers ammunition to an unlicensed transferee and knowingly fails to 
obtain a background check conducted by a licensed dealer in accordance 
with subsection (d) with respect to the transfer and, at the time such 
unlicensed transferee most recently proposed the transfer, the national 
instant criminal background check system was operating and information 
was available to the system demonstrating that receipt of ammunition by 
such unlicensed transferee would violate subsection (g) or (n) of 
section 922 or State law, the Attorney General may, after notice and 
opportunity for a hearing, impose on the unlicensed transferee a civil 
fine of not more than--
            ``(1) in the case of a first violation, $5,000;
            ``(2) in the case of a second violation, $25,000; and
            ``(3) in the case of any subsequent violation, $100,000.
    ``(d) Background Checks Through Licensed Dealers.--A licensed 
dealer who agrees to assist in the transfer of ammunition between an 
unlicensed transferor and an unlicensed transferee shall--
            ``(1) enter such information about the ammunition as the 
        Attorney General may require by regulation into a separate 
        bound record;
            ``(2) record the transfer on a form specified by the 
        Attorney General;
            ``(3) comply with section 922(v) as if transferring the 
        ammunition from the inventory of the licensed dealer to the 
        unlicensed transferee (except that a licensed dealer assisting 
        in the transfer of ammunition under this subsection shall not 
        be required to comply again with the requirements of section 
        922(v) in delivering the ammunition to the unlicensed 
        transferee) and notify the unlicensed transferor and unlicensed 
        transferee--
                    ``(A) of such compliance; and
                    ``(B) if the transfer is subject to the 
                requirements of section 922(v)(1), of any receipt by 
                the licensed dealer of a notification from the national 
                instant criminal background check system that the 
                transfer would violate section 922 or State law;
            ``(4) not later than 31 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of or other 
                identifying information relating to the unlicensed 
                transferor or unlicensed transferee;
            ``(5) if the licensed dealer assists an unlicensed 
        transferor in transferring, at the same time or during any 5 
        consecutive business days, not less than 1,000 rounds of 
        ammunition, to the same unlicensed transferee, in addition to 
        the reports required under paragraph (4), prepare a report of 
        the multiple transfers that shall--
                    ``(A) be prepared on a form specified by the 
                Attorney General; and
                    ``(B) not later than the close of business on the 
                date on which the transfer requiring the report under 
                this paragraph occurs, be submitted to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(6) retain a record of the transfer as part of the 
        permanent business records of the licensed dealer.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 44 of title 18, United States Code, is amended by 
        adding at the end the following:

``932. Background checks for ammunition transfers by unlicensed 
                            persons.''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Attorney General such sums as are necessary--
            (1) to ensure that the national instant criminal background 
        check system operates as quickly and effectively as it did 
        before the enactment of this Act; and
            (2) for the cost of implementing and enforcing the 
        amendments made by this Act, including audits and other 
        regulatory or enforcement efforts.

SEC. 4. REGULATORY REQUIREMENTS.

    (a) Requiring Recordkeeping for Ammunition Sales.--Section 
922(b)(5) of title 18, United States Code, is amended by striking ``or 
armor-piercing ammunition'' and inserting ``or ammunition''.
    (b) No Ammunition Sales Contrary to State Law.--Section 922(b)(2) 
of title 18, United States Code, is amended by inserting ``or 
ammunition'' after ``firearm'' each place it appears.
    (c) No Interstate Ammunition Sales.--
            (1) In general.--Section 922(b)(3) of title 18, United 
        States Code, is amended--
                    (A) by inserting ``or ammunition'' after ``any 
                firearm''; and
                    (B) by striking ``rifle or shotgun'' and inserting 
                ``ammunition, rifle, or shotgun''.
            (2) Other provisions.--Section 922(a) is amended--
                    (A) in paragraph (3) by inserting ``or ammunition'' 
                after ``firearm'' each place it appears; and
                    (B) in paragraph (5), by inserting ``or 
                ammunition'' after ``firearm'' each place it appears 
                except the last place it appears.
    (d) Reporting.--
            (1) In general.--Section 923(g) of title 18, United States 
        Code, is amended--
                    (A) in paragraph (1)(A)--
                            (i) in the first sentence, by inserting 
                        ``or ammunition'' after ``other disposition of 
                        firearms''; and
                            (ii) in the third sentence, by striking ``, 
                        or any licensed importer or manufacturer of 
                        ammunition,'' and inserting ``, or any licensed 
                        importer, manufacturer, or dealer of 
                        ammunition,'';
                    (B) in paragraph (2)--
                            (i) by inserting ``or ammunition'' after 
                        ``disposition of firearms''; and
                            (ii) by inserting ``or ammunition'' after 
                        ``a firearm'';
                    (C) in paragraph (3), by adding at the end the 
                following:
    ``(C)(i) Each licensee shall prepare a report of multiple sales or 
other dispositions whenever the licensee sells or otherwise disposes 
of, at one time or during any 5 consecutive business days, a large 
quantity of ammunition (as determined in accordance with clause (ii)) 
to an unlicensed person. The report shall be prepared on a form 
specified by the Attorney General and forwarded to the office specified 
thereon and to the department of State police or State law enforcement 
agency of the State and, where feasible, the local law enforcement 
agency of the local jurisdiction in which the sale or other disposition 
took place, not later than the close of business on the day that the 
multiple sales or other disposition occurs.
    ``(ii) The Attorney General shall determine the quantity of 
ammunition that constitutes a large quantity for the purpose of this 
subparagraph, the quantity of which--
            ``(I) shall be based on the determination by the Attorney 
        General of the quantity that indicates an intent to engage in 
        any type of criminal activity;
            ``(II) may be modified by the Attorney General from time to 
        time; and
            ``(III) may vary by geographic area if the Attorney General 
        determines that it is appropriate to assist law enforcement 
        efforts.'';
                    (D) in paragraph (6)--
                            (i) by inserting ``or a significant 
                        quantity of ammunition,'' after ``theft or loss 
                        of a firearm''; and
                            (ii) by adding at the end the following: 
                        ``Not later than 60 days after the date of 
                        enactment of the Ammunition Background Check 
                        Act of 2018, the Attorney General shall 
                        promulgate rules defining `significant 
                        quantity' for the purpose of this paragraph.''; 
                        and
                    (E) in paragraph (7), by inserting ``or any 
                quantity of ammunition'' after ``1 or more firearms''.
            (2) Conforming amendment.--Section 4182(d) of the Internal 
        Revenue Code of 1986 (relating to exemptions relating to 
        firearms) is amended by inserting ``and except as provided in 
        paragraphs (1)(A) and (3)(C) of section 923(g) of title 18, 
        United States Code,'' before ``no person holding a Federal 
        license''.
    (e) Making It a Crime To Steal Ammunition.--Section 922(u) of title 
18, United States Code, is amended--
            (1) by inserting ``or ammunition'' after ``in firearms''; 
        and
            (2) by inserting ``or ammunition'' after ``any firearm''.
    (f) Keeping Ammunition Out of the Hands of Juveniles.--Section 
922(x) of title 18, United States Code, is amended--
            (1) in paragraph (1)(B), by striking ``only''; and
            (2) in paragraph (2)(B), by striking ``only''.
    (g) Licensing of Ammunition Dealers.--
            (1) In general.--Section 923(a) of title 18, United States 
        Code, is amended in the matter preceding paragraph (1), by 
        striking ``, or importing or manufacturing'' and inserting 
        ``or''.
            (2) Definitions.--Section 921(a) of title 18, United States 
        Code is amended--
                    (A) in paragraph (11)(A), by inserting ``or 
                ammunition'' after ``firearms'';
                    (B) in paragraph (12), by inserting ``or 
                ammunition'' after ``any firearm''; and
                    (C) in paragraph (13), by inserting ``or 
                ammunition'' after ``firearms''.

SEC. 5. ARMOR-PIERCING AND INCENDIARY AMMUNITION.

    (a) Expanding Definition of Armor-Piercing Bullets.--Section 
921(a)(17)(B) of title 18, United States Code, is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(iii) a bullet or projectile which is coated with Teflon 
        or any chemical compound with properties similar to Teflon.''.
    (b) Banning Incendiary Ammunition.--
            (1) Definition.--Section 921(a) of title 18, United States 
        Code, is amended by adding at the end the following:
            ``(36) The term `incendiary ammunition'--
                    ``(A) means a bullet that is designed for the 
                purpose of, held out by the manufacturer or distributor 
                as, or generally recognized as having a specialized 
                capability to ignite upon impact; and
                    ``(B) includes such bullets commonly designated as 
                `M1 Incendiary', `M23 Incendiary', `M8 Armor-Piercing 
                Incendiary', `API', `M20 Armor-Piercing Incendiary 
                Tracer', or `APIT'.''.
            (2) Prohibition.--Chapter 44 of title 18, United States 
        Code, is amended--
                    (A) by inserting ``or incendiary ammunition'' after 
                ``armor piercing ammunition'' each place it appears, 
                except--
                            (i) in section 921; and
                            (ii) in section 923(k);
                    (B) in section 922(b)(5), by inserting ``or 
                incendiary ammunition'' after ``armor-piercing 
                ammunition''; and
                    (C) in section 923(k)--
                            (i) by inserting ``, incendiary 
                        projectiles, and'' after ``armor piercing 
                        projectiles''; and
                            (ii) by inserting ``or incendiary 
                        ammunition as defined in section 921(a)(36)'' 
                        before the period at the end.
    (c) Prohibition on Possession and Transfer.--Section 922(a)(7) of 
title 18, United States Code, is amended--
            (1) in the matter proceeding subparagraph (A), by striking 
        ``or import'' and inserting ``import, transfer, or possess'';
            (2) in subparagraph (A)--
                    (A) by inserting ``, transfer, or possession'' 
                after ``manufacture''; and
                    (B) by inserting ``or the transfer or possession of 
                such ammunition relates to use on behalf of'' after 
                ``for the use of'';
            (3) in subparagraph (B), by inserting ``, transfer, or 
        possession'' after ``manufacture''; and
            (4) in subparagraph (C), by inserting ``, transfer, or 
        possession'' after ``manufacture''.
    (d) Grandfathering of Continued Possession of Ammunition.--
            (1) In general.--The amendments made by this section shall 
        not apply to the possession of any armor piercing ammunition 
        (as defined in section 921(a)(17)(B) of title 18, United States 
        Code, as amended by subsection (a)), or incendiary ammunition 
        (as defined in section 921(a)(36) of title 18, United States 
        Code, as added by subsection (b)) otherwise lawfully possessed 
        under Federal law on the date of enactment of this Act.
            (2) No transfer, sale, or delivery.--Nothing in paragraph 
        (1) shall be construed to authorize the transfer, sale, or 
        delivery of any armor piercing ammunition or incendiary 
        ammunition described in paragraph (1).
                                 <all>