Title: Federal Firearm Licensee Act
Policy area: Crime and Law Enforcement

Summary:
Federal Firearm Licensee Act
This bill makes various changes related to federal firearms licensees, including by establishing physical security requirements and increasing licensing fees. It also amends several appropriations laws to remove limitations on the authority of the Bureau of Alcohol, Tobacco, Firearms and Explosives to conduct activities related to the administration of federal firearms laws.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6225 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 6225

             To modernize the business of selling firearms.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 9, 2021

     Ms. Kelly of Illinois (for herself, Mr. Cicilline, Ms. Lee of 
California, Mr. Pascrell, Mr. Langevin, Mr. Mfume, Mr. Morelle, and Mr. 
   Panetta) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
             To modernize the business of selling firearms.

    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 ``Federal Firearm Licensee Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) A growing body of evidence demonstrates that gun 
        dealers' sales practices affect the probability of guns getting 
        to criminals and that policies designed to hold gun sellers 
        accountable can curtail the diversion of guns to criminals.
            (2) Federal laws governing firearm dealers have not been 
        updated in over 30 years, contain safeguards that protect 
        dealers who engage in illegal practices from adverse 
        enforcement action, frustrate law enforcement efforts to curb 
        gun trafficking and violence and are, thus, inadequate to meet 
        the realities of the twenty-first century.
            (3) The Tiahrt Amendments, for one, severely limit the 
        authority of the Bureau of Alcohol, Tobacco, Firearms and 
        Explosives (ATF) to disclose crime gun trace data to the 
        public, prevent the collection of valuable information, and the 
        establishment of effective policies to prevent illegal guns 
        from being used in crimes and impede enforcement of the gun 
        laws by requiring most background check records to be destroyed 
        within 24 hours, and by barring the Government from requiring 
        annual inventory audits by owners of gun shops. Repealing the 
        Tiahrt Amendments would support law enforcement efforts and 
        give the public vital information needed to craft the most 
        effective policies against illegal guns.
            (4) Additionally, Federal law imposes no requirements that 
        dealers physically secure their highly valuable and lethal 
        inventory. The number of gun thefts from licensed gun dealers 
        has increased more than the number from any other source. 
        Between 2013 and 2017, the number of firearms stolen in gun-
        dealer burglaries more than doubled and the number of firearms 
        stolen in gun-dealer robberies tripled.

SEC. 3. DEFINITIONS.

    Section 921(a) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(36) The term `facilitator' means any person engaged in the 
business of hosting a commercial marketplace in which offers for 
firearm sales, purchases, or other transfers are allowed to be made, 
except that such a person shall not be considered to be a facilitator 
with respect to any transaction that is made through the use of a 
website or mobile application owned or operated by the person if the 
transaction violates the terms of service of the website or mobile 
application and the person has made a good faith effort to enforce the 
terms of service by, at a minimum, auditing firearms transactions on a 
quarterly basis to ensure compliance with this chapter.
    ``(37) The term `occasional' means, with respect to transactions, 
fewer than 5 transactions in a 12-month period.
    ``(38) The term `personal collection' includes any firearm obtained 
only for the personal use of an individual and not for the purpose of 
selling or trading, except that a firearm obtained through inheritance 
shall not be considered part of a personal collection until the firearm 
has been possessed for 1 year.
    ``(39) The term `business inventory firearm' means, with respect to 
a person, a firearm required by law to be recorded in the acquisition 
and disposition logs of any firearms business of the person.
    ``(40)(A) The term `frame or receiver'--
            ``(i) means a part of a weapon that provides or is intended 
        to provide the housing or structure to hold or integrate 1 or 
        more fire control components, even if pins or other attachments 
        are required to connect those components to the housing or 
        structure; and
            ``(ii) includes a blank, casting, or machined body, that 
        requires modification (including machining, drilling, or 
        molding) to be used as part of a functional firearm, and that 
        is designed and intended to be used in the assembly of a 
        functional firearm, unless the blank, casting, or machined body 
        has had--
                    ``(I) its size or external shape altered solely to 
                facilitate transportation or storage; or
                    ``(II) solely its chemical composition altered.
    ``(B) For purposes of subparagraph (A)(i), in the case of a weapon 
with more than 1 part that provides the housing or a structure designed 
to hold or integrate 1 or more fire control components, each such part 
shall be considered a frame or receiver, unless the Attorney General 
has provided otherwise by regulation with respect to the specific make 
and model of weapon on or before January 1, 2022.
    ``(C) For purposes of this paragraph, the term `fire control 
component'--
            ``(i) means a component necessary for a firearm to initiate 
        or complete the firing sequence; and
            ``(ii) includes a hammer, bolt, breechblock, cylinder, 
        trigger, mechanism, firing pin, striker, and slide rails.''.

SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION.

    Section 922 of title 18, United States Code, is amended by striking 
subsection (s).

SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES.

    (a) Security Plan Submission Requirement.--
            (1) In general.--Section 923(d)(1)(G) of title 18, United 
        States Code, is amended by striking the period at the end and 
        inserting ``, and the applicant submits with the application a 
        security plan that describes how the applicant will secure, in 
        accordance with the regulations issued under section 926(d), 
        the premises from which the applicant will conduct business 
        under the license (including in the event of a natural disaster 
        or other emergency), and the applicant certifies that, if 
        issued such a license, the applicant will comply with the plan; 
        and''.
            (2) Written approval required before license renewal.--
        Section 923(d)(1) of such title is amended--
                    (A) in subparagraph (F)(iii), by striking ``and'' 
                after the semicolon; and
                    (B) by adding at the end the following:
            ``(H) in the case of an application to renew a license to 
        deal in firearms--
                    ``(i) the license is not suspended;
                    ``(ii) the applicant has not had a license issued 
                under this chapter revoked; and
                    ``(iii) the Attorney General has inspected the 
                premises and provided written approval of the security 
                plan submitted by the applicant under subparagraph 
                (G).''.
            (3) Applicability.--A person who, on the date of the 
        enactment of this Act, is a licensed dealer (as defined in 
        section 921(a)(11) of title 18, United States Code) and whose 
        license to deal in firearms, issued under chapter 44 of such 
        title, will not expire before the end of the 1-year period that 
        begins with the date regulations are prescribed under section 
        926(d) of such title, shall submit to the Attorney General a 
        plan of the type described in section 923(d)(1)(G) of such 
        title not later than the end of that period. Any plan so 
        submitted shall be considered to be submitted pursuant to such 
        section 923(d)(1)(G).
    (b) Annual Security Plan Compliance Certification Requirement.--
            (1) In general.--Section 923 of such title is amended by 
        adding at the end the following:
    ``(m)(1) Each licensed manufacturer, licensed importer, and 
licensed dealer shall annually certify to the Attorney General that 
each premises from which the licensee conducts business subject to 
license under this chapter is in compliance with the regulations 
prescribed under section 926(d), and include with the certification the 
results of a reconciliation of the resale firearms then in the business 
inventory of the licensee against the resale firearms in the business 
inventory of the licensee at the time of the most recent prior 
certification (if any) under this paragraph, and all dispositions and 
acquisitions of resale firearms in the year covered by the 
certification, identifying and reporting any missing firearm.
    ``(2) The Attorney General shall impose a civil money penalty of 
not more than $5,000 on, and may suspend the license issued under this 
section to, a licensee who fails to comply with paragraph (1).''.
            (2) Applicability.--The amendment made by paragraph (1) of 
        this subsection shall not apply to a person who, on the date of 
        the enactment of this Act, is a licensee referred to in section 
        923(m) of title 18, United States Code, until the end of the 1-
        year period that begins with the date the person complies with 
        subsection (a)(2) of this section.
    (c) Regulations.--
            (1) In general.--Section 926 of such title is amended by 
        adding at the end the following:
    ``(d) The Attorney General shall prescribe such regulations as are 
necessary to ensure that any premises at which a licensee referred to 
in section 923(m) conducts business is secure from theft, which shall 
include requiring--
            ``(1) compliance with the security plan submitted by the 
        licensee pursuant to section 923(d)(1)(G);
            ``(2) the use of locked metal cabinets and fireproof safes;
            ``(3) security systems, video monitoring, and antitheft 
        alarms;
            ``(4) security gates, strong locks, and site hardening;
            ``(5) concrete bollards and other access controls, if 
        necessary; and
            ``(6) the use of any other security-enhancing features 
        appropriate for the licensee's specific circumstances.''.
            (2) Applicability.--The regulations prescribed under 
        section 926(d)(1) of such title shall not apply to a person 
        who, on the date of the enactment of this Act, is a licensee 
        referred to in section 923(m) of such title, until the earlier 
        of--
                    (A) the date the person complies with subsection 
                (b)(2) of this section; or
                    (B) the end of the 1-year period that begins with 
                the date regulations are prescribed under section 
                926(d) of such title.

SEC. 6. BUSINESS INVENTORY FIREARMS.

    (a) Requirement To Transfer Firearm in Personal Collection to 
Business Inventory Before Disposition.--Section 923(c) of title 18, 
United States Code, is amended--
            (1) by striking the 2nd sentence and inserting the 
        following: ``Nothing in this chapter shall be construed to 
        prohibit a licensed manufacturer, licensed importer, or 
        licensed dealer from maintaining a personal collection of 
        firearms.'';
            (2) by striking the 3rd sentence; and
            (3) by adding at the end the following: ``Any firearm 
        disposed of by a licensee shall be from the business inventory 
        of the licensee.''.
    (b) Licensee Firearms Inventory.--Section 923(g) of such title is 
amended by adding at the end the following:
    ``(8) Each licensee shall conduct a quarterly physical check of the 
firearms inventory of the business of the licensee licensed under this 
chapter and report any lost, stolen, or unaccounted for firearm to the 
Attorney General and appropriate local authorities in accordance with 
regulations which shall be prescribed by the Attorney General and shall 
require, at a minimum, the recording of the date of receipt of the 
firearm, the name, address, and license number, if applicable, of the 
person from whom the firearm was received, the name of the manufacturer 
and, if applicable, importer of the firearm, the model, serial number, 
type, and caliber or gauge of the firearm, and the date of the sale or 
other disposition of the firearm. This chapter shall not be interpreted 
to prohibit the Attorney General from, at any time, requiring the 
regular or one-time submission of the inventory records of a licensee 
to ensure that the licensee is in compliance with this chapter.''.
    (c) Repeal of Limitations on Imposition of Requirement That 
Firearms Dealers Conduct Physical Check of Firearms Inventory.--
            (1) The 5th proviso under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' 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 ``and any 
        fiscal year thereafter''.
            (2) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' 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 7th 
        proviso.
            (3) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title II of Division B of the Consolidated Appropriations Act 
        of 2010 (18 U.S.C. 923 note; Public Law 111-117; 123 Stat. 
        3128) is amended by striking ``or any other Act'' in the 7th 
        proviso.
            (4) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title II of Division B of the Omnibus Appropriations Act of 
        2009 (18 U.S.C. 923 note; Public Law 111-8; 123 Stat. 574) is 
        amended by striking ``or any other Act'' in the 7th proviso.
            (5) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title II of Division B of the Consolidated Appropriations Act 
        of 2008 (18 U.S.C. 923 note; Public Law 110-161; 121 Stat. 
        1903) is amended by striking ``or any other Act'' in the 7th 
        proviso.
            (6) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title I of the Science, State, Justice, Commerce And Related 
        Agencies Appropriations Act of 2006 (18 U.S.C. 923 note; Public 
        Law 109-108; 119 Stat. 2295) is amended by striking ``or any 
        other Act'' in the 7th proviso.
            (7) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title I of Division B of the Consolidated and Further 
        Continuing Appropriations Act, 2005 (18 U.S.C. 923 note; Public 
        Law 108-447; 118 Stat. 2859-2860) is amended by striking ``or 
        any other Act'' in the 7th proviso.
            (8) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title I of Division B of the Consolidated and Further 
        Continuing Appropriations Act, 2004 (18 U.S.C. 923 note; Public 
        Law 108-199; 1185 Stat. 53) is amended by striking ``or any 
        other Act'' in the 7th proviso.

SEC. 7. ELECTRONIC RECORDS.

    (a) Records Retention and Submission.--Section 923(g) of title 18, 
United States Code, is amended--
            (1) in paragraph (1)(A)--
                    (A) in the 1st sentence, by inserting ``, except 
                that, notwithstanding any other provision of law, as of 
                the effective date of the Federal Firearm Licensee Act, 
                records prepared by licensees under this chapter of the 
                sale or other disposition of firearms, including each 
                firearms transaction record, and the corresponding 
                record of receipt of such firearms, shall be retained 
                at the business premises readily accessible for 
                inspection under this chapter until the business is 
                discontinued'' before the period; and
                    (B) by striking the 2nd sentence;
            (2) in paragraph (5)(A), by inserting ``or electronically 
        as may be'' after ``submit on a form''; and
            (3) in paragraph (7), by inserting ``, electronically,'' 
        after ``orally''.
    (b) Records Databases.--Section 923(g) of such title is further 
amended by adding at the end the following:
    ``(9)(A) Within 3 years after the date of enactment of this 
paragraph, the National Tracing Center of the Bureau of Alcohol, 
Tobacco, Firearms and Explosives shall establish and maintain 
electronic, searchable databases of all records regarding the 
importation, production, shipment, receipt, sale, or other disposition 
of firearms required to be submitted by licensees to the Attorney 
General under this chapter.
    ``(B) Each licensee under this chapter may provide the National 
Tracing Center with electronic access, consistent with the requirements 
of this paragraph, to all records within the possession of the licensee 
that are required to be kept under this chapter.
    ``(C) The National Tracing Center--
            ``(i) shall have remote access to query, search, or 
        otherwise access the electronic databases described in this 
        paragraph; and
            ``(ii) with the permission of a State, or political 
        subdivision of a State, may query, search, or otherwise access 
        the databases of the firearms registration system or pawnbroker 
        records system of the State or political subdivision.
    ``(D) The National Tracing Center may query, search, or otherwise 
access the electronic databases described in this paragraph only to 
obtain information related to any Federal, State, local, tribal, or 
foreign criminal investigation.
    ``(E) The databases established under this paragraph--
            ``(i) shall be electronically searchable by date of 
        disposition, license number, and the information identified on 
        each firearm or other firearm descriptor, including the 
        manufacturer, importer, model, serial number, type, and caliber 
        or gauge;
            ``(ii) shall not be electronically searchable by the 
        personally identifiable information of any individual, without 
        a warrant authorizing such a search; and
            ``(iii) shall include in search results the entire contents 
        of the relevant records kept by the licensee.''.
    (c) Video Recordings of Sales and Transfers.--Section 923(g) of 
such title is further amended by adding to the end the following:
    ``(10) In accordance with regulations promulgated by the Attorney 
General, each licensed dealer operating a location at which firearms 
are sold to a person not licensed under this chapter shall--
            ``(A) maintain video surveillance of all areas within each 
        premises where firearms in the business inventory of the 
        licensee are sold or transferred;
            ``(B) retain records of the surveillance, including any 
        sound recording obtained from the surveillance, for a period of 
        not less than 90 days; and
            ``(C) post a sign in a conspicuous place and at each public 
        entrance to the retail location, in block letters not less than 
        1 inch in height, stating that the premises are under video 
        surveillance.''.
    (d) Increased Penalties for Licensee Violations Relating to 
Acquisition and Disposition Records.--Section 924(a)(3) of such title 
is amended--
            (1) in the matter following subparagraph (B), by striking 
        ``one year'' and inserting ``5 years''; and
            (2) by adding at the end the following: ``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, licensed manufacturer, 
        licensed collector, or licensed facilitator shall be fined 
        under this title, imprisoned not more than 10 years, or 
        both.''.
    (e) Elimination of Limitation on Centralizing Records.--Section 
926(a) of such title is amended in the matter following paragraph (3) 
by striking ``records required to be maintained under this chapter or 
any portion of the contents of such records, be recorded at or 
transferred to a facility owned, managed, or controlled by the United 
States or any State or any political subdivision thereof, nor that.''.
    (f) Electronic Recordkeeping Adoption and Implementation.--Section 
926 of such title is further amended by adding at the end the 
following:
    ``(e) The Attorney General--
            ``(1) shall facilitate and incentivize licensee conversion 
        to, and adoption of, electronic recordkeeping solutions that 
        enable electronic completion and submission to the Attorney 
        General of all records required to be maintained under this 
        chapter;
            ``(2) shall facilitate digital capture of dealer paper 
        records, the integration and indexing of data onto a platform 
        accessible by law enforcement authorities for purposes of 
        investigating a violent crime or crime gun trace;
            ``(3) shall facilitate remote access to electronic records 
        of licensed dealers by law enforcement authorities for purposes 
        of investigating a violent crime or crime gun trace, and dealer 
        access to only their own records; and
            ``(4) shall not remotely access or search electronic 
        records of licensed dealers without a warrant authorizing such 
        a search.''.

SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS.

    Section 922(t)(1)(B)(ii) of title 18, United States Code, is 
amended by adding at the end, before the semicolon, the following: ``, 
if the licensee notifies the Attorney General that such firearm has 
been transferred to such person no later than the close of business on 
the day that the firearm is transferred''.

SEC. 9. MULTIPLE FIREARM SALES RECORDS AND REPORTS.

    (a) Expanding Reporting Requirement to Certain Long Guns.--Section 
923(g)(3)(A) of title 18, United States Code, is amended--
            (1) by striking ``pistols, or revolvers, or any combination 
        of pistols and revolvers'' and inserting ``pistols, revolvers, 
        semiautomatic rifles or shotguns, or rifles or shotguns capable 
        of accepting a high capacity magazine, or any combination of 
        such weapons''; and
            (2) by inserting after the 1st sentence the following: ``In 
        the preceding sentence, the term `high capacity magazine' means 
        a magazine capable of holding more than 10 rounds of 
        ammunition, and includes magazines that may be readily 
        converted to hold more than 10 rounds of ammunition.''.
    (b) Requirement To Retain Instant Criminal Background Check Records 
for 90 Business Days.--Section 922(t)(2)(C) of such title is amended--
            (1) by striking ``destroy'' and inserting ``retain for 90 
        business days'';
            (2) by striking ``(other than the identifying number and 
        the date the number was assigned)''; and
            (3) by inserting ``solely for purposes related to 
        discovering misuse or avoidance of the national instant 
        criminal background check system or ensuring its proper 
        operation'' before the period at the end.
    (c) Attorney General Reports of Multiple Sales by Non-Licensees.--
Section 923(g)(3) of such title is amended--
            (1) by inserting after subparagraph (A) the following:
    ``(B) The Attorney General shall prepare a report of multiple 
dispositions of firearms to persons not licensed under this chapter, 
which shall include the names and identifying information of 
transferees appearing in the records retained pursuant to section 
922(t)(2)(C) on 2 or more occasions in any period of 5 consecutive 
business days. The report shall be prepared on a form substantially 
similar to the form created pursuant to subparagraph (A) and include 
the names and addresses of the licensees who requested the background 
checks pursuant to subsection (t). The Attorney General shall forward 
the report to the office designated pursuant to subparagraph (A) and to 
the departments of State police or State law enforcement agencies of 
the State or local law enforcement agencies of the local jurisdictions 
in which the sales or other dispositions took place, not later than the 
close of business on the date of the most recent such sale or other 
disposition.''; and
            (2) by redesignating subparagraph (B) as subparagraph (C).
    (d) Records Retention To Investigate Crime Guns.--Section 
923(g)(3)(C) of such title as redesignated by subsection (c)(2) of this 
section, is further amended--
            (1) by inserting ``a firearm involved in a crime or'' after 
        ``Except in the case of forms and contents thereof regarding'';
            (2) by striking ``, and shall destroy each such form and 
        any record of the contents thereof no more than 20 days from 
        the date such form is received'' and inserting ``and shall 
        retain each such form and any record of the contents of the 
        form for 180 days after the date the form is received''; and
            (3) by striking the 2nd sentence.

SEC. 10. SAFETY DEVICES AND WARNINGS TO PURCHASERS.

    Section 922(z) of title 18, United States Code, is amended--
            (1) by inserting ``and Warnings to Purchasers'' after 
        ``Secure Gun Storage or Safety Device'';
            (2) by striking ``handgun'' each place it appears and 
        inserting ``firearm''; and
            (3) by adding at the end the following:
            ``(4) Warnings to purchasers.--All licensed dealers 
        operating a physical retail location shall post conspicuously 
        within the licensed premises all warnings required to be 
        provided to firearms purchasers under applicable State and 
        local law. The Attorney General shall develop materials 
        regarding suicide prevention, securing firearms from loss, 
        theft, or access by a minor or prohibited person, and straw 
        purchasing, and provide the materials to licensed dealers who 
        shall disseminate the materials on transfer of a firearm to a 
        person not licensed under this chapter.''.

SEC. 11. INSPECTIONS.

    (a) Mandated Annual Inspections of High Risk Licensed Dealers, 
Triennial Inspections of Other Licensed Dealers.--Section 923(g)(1)(B) 
of such title is amended by adding after and below the end the 
following flush sentence: ``Not less frequently than annually, the 
Attorney General shall inspect or examine the inventory, records, and 
business premises of each licensed dealer whom the Attorney General 
determines to be a high risk dealer (based on considerations that shall 
include dealers who have reported a lost or stolen firearm within the 
preceding 5 years, were issued a report of violation, received a 
warning letter, or been the subject of a warning conference, or, within 
the preceding year, to whom were traced multiple firearms used in a 
crime under Federal, State, or local law within 3 years after sale by 
the dealer) and may appoint a special master to ensure that such 
dealers comply with all applicable firearm sales laws. The special 
master may use in-store observation, monitor records, conduct random 
and repeated sales integrity tests, and design and offer instructional 
programs providing best practices sales training to all employees 
involved in firearms sales until the special master certifies that the 
dealer has complied with all applicable firearms sales laws for 3 
consecutive years. Not less frequently than every 5 years, the Attorney 
General shall inspect or examine the inventory, records, and business 
premises of each other licensed dealer. Within 6 months after such an 
inspection reveals a violation of this section or any regulation 
prescribed under this chapter, and within 6 months after a security 
inspection conducted under paragraph (6)(B)(i) of this subsection, the 
Attorney General shall conduct an inspection to determine whether the 
violation identified in the preceding inspection has been cured.''.
    (b) Elimination of Limit on Inspection of Licensee Records.--
Section 923(g)(1)(B)(ii) of such title is amended--
            (1) by striking ``--'' and all that follows through 
        ``(II)''; and
            (2) by striking ``with respect to records relating to a 
        firearm involved in a criminal investigation that is traced to 
        the licensee''.
    (c) Mandated Security Inspection of Dealers Reporting Lost or 
Stolen Firearms.--Section 923(g)(6) of such title is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:
    ``(B)(i) After the Attorney General receives such a report from a 
licensed dealer of the theft of a firearm, the Attorney General shall 
conduct an independent inspection of the security of the premises at 
which the theft occurred, which shall include an inspection of the 
measures taken to implement the security plan submitted by the licensed 
dealer pursuant to subsection (d)(1)(G).
    ``(ii) On completion of the security inspection, the Attorney 
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.''.
    (d) Elimination of Limit on Inspection of Other Premises.--Section 
923(j) of such title is amended by striking the 6th sentence.

SEC. 12. AUTHORITY WITH REGARDS TO LICENSE ISSUANCE AND RENEWAL.

    (a) Denial Authority.--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 General shall''; 
                and
                    (C) by adding at the end the following:
    ``(2) The Attorney General shall deny an application submitted 
under subsection (a) or (b) if the Attorney General determines--
            ``(A) issuing the license would pose a danger to public 
        safety; or
            ``(B) that the applicant--
                    ``(i) is not likely to comply with the law; or
                    ``(ii) is otherwise not suitable to be issued a 
                license.''; and
            (2) in subsection (d)(1)--
                    (A) in the first sentence, by inserting ``and 
                renewals thereof'' after ``this section'';
                    (B) in the matter preceding subparagraph (A), by 
                inserting ``, subject to subsection (c)(2),'' after 
                ``shall'';
                    (C) in subparagraph (C), by striking ``not 
                willfully violated'' and inserting ``no uncured 
                violations''; and
                    (D) in subparagraph (F)--
                            (i) in clause (ii)(II), by striking ``and'' 
                        at the end; and
                            (ii) by adding at the end the following:
                    ``(iv) all employees employed in the business will 
                be at least the minimum age at which individuals may 
                possess a firearm in the locality in which the business 
                will be conducted and are not prohibited from 
                transporting, shipping, or receiving firearms or 
                ammunition in interstate or foreign commerce by 
                subsection (g) or (n) of section 922;''.
    (b) Authority To Revoke or Suspend Licenses.--Section 923 of such 
title is amended--
            (1) in subsection (e), by striking ``revoke'' and inserting 
        ``revoke or suspend''; and
            (2) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) by striking all instances of 
                        ``revoked'' and inserting ``revoked or 
                        suspended''; and
                            (ii) by striking all instances of 
                        ``revocation'' and inserting ``revocation or 
                        suspension''; and
                    (B) in paragraph (2)--
                            (i) by striking ``, or revokes'' and 
                        inserting ``revokes, or suspends''; and
                            (ii) by striking ``or revocation'' and 
                        inserting ``, revocation, or suspension''; and
                    (C) in paragraph (3)--
                            (i) by striking ``or revoke'' and inserting 
                        ``or revoke or suspend'';
                            (ii) by striking ``or revocation'' and 
                        inserting ``, revocation, or suspension''; and
                            (iii) by striking ``to revoke'' and 
                        inserting ``to revoke or suspend''.
    (c) Authority To Promulgate Rules.--Section 926(a) of such title is 
amended by striking ``only''.
    (d) Repeal of Riders Limiting Use of Funds To Deny Licenses Due to 
Lack of Business Activity.--
            (1) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' 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 9th 
        proviso.
            (2) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' 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. 247-248) is amended by striking the 6th 
        proviso.

SEC. 13. INCREASED LICENSING FEES.

    (a) Fees for Licensed Importers, Manufacturers, and Dealers in 
Firearms and Importers and Manufacturers of Ammunition.--Section 923(a) 
of title 18, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000'';
                    (B) in subparagraph (B), by striking ``$50'' and 
                inserting ``$100''; and
                    (C) in subparagraph (C), by striking ``$10'' and 
                inserting ``$20'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000''; and
                    (B) in subparagraph (B), by striking ``$50'' and 
                inserting ``$100''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$200'' and inserting 
                        ``$400''; and
                            (ii) by striking ``$90'' and inserting 
                        ``$180''.
    (b) Fees for Licensed Collectors.--Section 923(b) of such title is 
amended by striking ``$10'' and inserting ``$20''.

SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFECTIVE DATE OF LICENSE 
              REVOCATION.

    Section 923(f)(2) of title 18, United States Code, is amended in 
the 2nd sentence by striking ``shall upon the request of the holder of 
the license'' and inserting ``may, upon a showing by the holder of the 
license of good cause,''.

SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED FOR A CRIME 
              PUNISHABLE BY IMPRISONMENT FOR A TERM EXCEEDING ONE YEAR.

    (a) In General.--Section 925 of title 18, United States Code, is 
amended by striking subsection (b) and redesignating subsections (c) 
through (f) as subsections (b) through (e), respectively.
    (b) Conforming Amendments.--Section 922 of such title is amended--
            (1) in subsection (d), in the 2nd sentence, by striking 
        ``licensed importer, licensed manufacturer, licensed dealer, or 
        licensed collector who pursuant to subsection (b) of section 
        925 of this chapter is not precluded from dealing in firearms 
        or ammunition, or to a'';
            (2) in subsection (l), by striking ``925(d) of this 
        chapter'' and inserting ``925(c)''; and
            (3) in subsection (r), by striking ``925(d)(3) of this 
        chapter'' and inserting ``925(c)(3)''.

SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DISABILITY RELIEF 
              APPLICATION PENDING.

    Section 925(b) of title 18, United States Code, as so redesignated 
by section 15(a) of this Act, is further amended by striking the 4th 
sentence and inserting ``This subsection shall not be interpreted to 
prohibit the Attorney General from, on a showing by a licensee of good 
cause, permitting the licensee to continue operations while an 
application for relief from disabilities is pending.''.

SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN SALE OF LONG GUNS TO 
              RESIDENTS OF ANOTHER STATE.

    Section 922(b)(3) of title 18, United States Code, is amended by 
striking ``in the absence of evidence to the contrary,''.

SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER OF FIREARM WITHOUT 
              CONDUCTING A BACKGROUND CHECK.

    Section 922(t)(5) of title 18, United States Code, is amended by 
inserting ``in the case of the 1st violation and, in the case of a 
subsequent violation, shall immediately suspend or revoke any license 
issued to the licensee under section 923 and impose on the licensee a 
civil fine equal to $20,000'' before the period.

SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DISABILITY OR NOTICE OF 
              LICENSE SUSPENSION, REVOCATION OR DENIED RENEWAL.

    (a) Restrictions.--Section 922 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(aa)(1) It shall be unlawful for a licensed importer, licensed 
manufacturer, licensed dealer, licensed collector, or licensed 
facilitator who incurs a disability imposed by Federal laws with 
respect to the acquisition, receipt, transfer, shipment, 
transportation, or possession of firearms or ammunition during the term 
of a license issued under this chapter or while an application to renew 
such a license is pending, or who has been notified by the Attorney 
General that a license issued to the licensee under this chapter has 
been suspended or revoked or that an application of the licensee to 
renew such a license has been denied, to--
            ``(A) transfer a business inventory firearm--
                    ``(i) into the personal collection of the licensee; 
                or
                    ``(ii) to any person other than a licensee under 
                this chapter or a Federal, State, or local law 
                enforcement agency; or
            ``(B) receive a business inventory firearm.
    ``(2) Upon a showing by a licensee of good cause, the Attorney 
General may issue a written waiver of paragraph (1) if the licensee 
authorizes the Attorney General to inspect the records and inventory of 
the licensee at any time to ensure that the licensee is in compliance 
with this chapter.''.
    (b) Penalties.--Section 924(a) of such title is amended by adding 
at the end the following:
    ``(8) Whoever knowingly violates section 922(aa) shall be fined 
under this title, imprisoned not more than 1 year, or both.''.
    (c) Notice Requirement.--Section 923(f)(1) of such title is amended 
in the 1st sentence by inserting ``and setting forth the provisions of 
Federal law and regulation that prohibit a person not licensed under 
this chapter from engaging in the business of dealing in firearms and 
the restrictions set forth in section 922(aa)'' before the period.

SEC. 20. REGULATION OF FACILITATORS OF FIREARM TRANSFERS.

    (a) Licensing.--Section 923(a) of title 18, United States Code, is 
amended by adding at the end the following:
            ``(4) If the applicant is a facilitator of firearm sales, 
        purchases or other transfers, a fee of $1,000 per year.''.
    (b) Completed Facilitated Sales.--Section 923 of such title is 
further amended by adding at the end the following:
    ``(n)(1) Each licensed facilitator shall--
            ``(A) inform all prospective sellers using its commercial 
        marketplace that any offer for firearm sales, purchases, or 
        other transfers made using its commercial marketplace may be 
        completed only with the assistance of a licensed importer, 
        licensed manufacturer, or licensed dealer, who must take 
        possession of the firearm directly from the transferor for the 
        purpose of complying with section 922(t);
            ``(B) require all prospective firearm sellers to so 
        complete all firearms sales, purchases, or other transfers; and
            ``(C) maintain records of any such sale, purchase, or other 
        transfer which shall include the date of the offer, the name of 
        the offeror, and the name and the licensee number of the 
        licensee that will take possession of the firearm directly from 
        the transferor, and the model, serial number, type, and caliber 
        or gauge of the firearm involved.
    ``(2) A licensed facilitator may require, as a condition of using 
its commercial marketplace, that, before offering a firearm for sale, a 
prospective seller identify a licensed dealer that will take possession 
of the firearm and complete the sale.
    ``(3) On taking possession of a firearm sold, purchased, or 
otherwise transferred in such a commercial marketplace, a licensee 
shall comply with all requirements of this chapter as if the licensee 
were transferring the firearm from the inventory of the licensee to the 
unlicensed transferee.''.
    (c) Liability.--Section 924(h) of such title is amended--
            (1) by inserting ``(1)'' before ``Whoever''; and
            (2) by adding at the end the following:
    ``(2) Whoever, having accepted an offer to transfer ownership of a 
firearm using a commercial marketplace of a licensed facilitator in 
order to complete a firearm transaction as described in paragraph (1) 
of this subsection, knowingly transfers the firearm to a person not 
licensed under this chapter without a licensed importer, licensed 
manufacturer, or licensed dealer first taking possession of the firearm 
for the purpose of complying with section 922(t), shall be fined under 
this title, imprisoned not more than 1 year, or both, except that if 
receipt of the firearm by the transferee violates subsection (g) or (n) 
of section 922, or the firearm is used to commit a crime of violence 
(as defined in section (c)(3) of this section) or drug trafficking 
crime (as defined in subsection (c)(2) of this section), the transferor 
shall be fined under this title, imprisoned not more than 10 years, or 
both.''.
    (d) Conforming Amendments.--
            (1) Section 922 of such title is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``or'' at the end of 
                        subparagraph (A);
                            (ii) by adding ``or'' at the end of 
                        subparagraph (B); and
                            (iii) by adding at the end the following:
                    ``(C) except a licensed facilitator, to engage in 
                the business of hosting a commercial marketplace in 
                which offers for firearms sales, purchases, or other 
                transfers are allowed to be made;'';
                    (B) in subsection (a)(6)--
                            (i) by striking ``or licensed collector'' 
                        and inserting ``licensed collector, or licensed 
                        facilitator''; and
                            (ii) by striking ``or collector'' and 
                        inserting ``collector, or facilitator''; and
                    (C) in subsection (m), by striking ``or licensed 
                collector'' and inserting ``licensed collector, or 
                licensed facilitator''.
            (2) Section 923 of such title is amended--
                    (A) in the 1st sentence of subsection (c), by 
                inserting ``or facilitate firearm sales, purchases or 
                other transfers'' before ``during the period stated in 
                the license'';
                    (B) in subsection (g)(1)(A)--
                            (i) in the first sentence, by striking 
                        ``and licensed dealer'' and inserting 
                        ``licensed dealer, and licensed facilitator''; 
                        and
                            (ii) in the last sentence, by inserting 
                        ``licensed facilitator,'' before ``or any 
                        licensed importer''; and
                    (C) in subsection (j), by striking ``or licensed 
                dealer'' the 1st place it appears and inserting 
                ``licensed dealer, or licensed facilitator''.
            (3) Section 924(a)(3) of such title is amended by striking 
        ``or licensed collector'' and inserting ``licensed collector, 
        or licensed facilitator''.

SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS.

    (a) Requirements.--
            (1) Background checks required before issuance or renewal 
        of dealers license.--Section 923(c) of title 18, United States 
        Code, is amended by inserting after the 1st sentence the 
        following: ``Notwithstanding the preceding sentence, the 
        Attorney General may not issue or renew a license unless the 
        Attorney General has contacted the national instant criminal 
        background check system established under section 103 of the 
        Brady Handgun Violence Prevention Act to determine whether it 
        would be unlawful for the applicant or any employee of the 
        applicant identified by the applicant on the application as 
        trusted with the possession or receipt of any firearm, to 
        receive a firearm, and the system has notified the Attorney 
        General that the information available to the system does not 
        demonstrate that the receipt of a firearm by the applicant or 
        any such employee would violate subsection (g) or (n) of 
        section 922 or the law of the State in which the business 
        premises of the applicant subject to the license is located.''.
            (2) Background check required before firearm possession by 
        dealer employee.--Section 923(g) of such title is further 
        amended by adding at the end the following:
    ``(11) A licensed dealer shall not allow an employee to possess a 
firearm at a premises from which the licensed dealer conducts business 
subject to license under this chapter, unless--
            ``(A) the employee is at least the minimum age required by 
        State and local law to possess or receive a firearm;
            ``(B) the licensed dealer has contacted the national 
        instant criminal background check system established under 
        section 103 of the Brady Handgun Violence Prevention Act to 
        determine whether it would be unlawful for the individual to 
        receive a firearm; and
            ``(C) the system has notified the licensee that the 
        information available to the system does not demonstrate that 
        the receipt of a firearm by the individual would violate 
        subsection (g) or (n) of section 922 or State law.''.
    (b) Authority of NICS System To Respond to Licensed Dealer Request 
for Criminal Background Check of Employee or Applicant for 
Employment.--Section 103(b) of the Brady Handgun Violence Prevention 
Act (34 U.S.C. 40901(b)) is amended by adding at the end the following: 
``The Attorney General shall ensure that the system responds to any 
request received by the system from a licensed dealer for information 
on whether receipt of a firearm by an employee or applicant for 
employment of the licensed dealer would violate such section 922 or 
State law.''.
    (c) Authority of NICS System To Search National Data Exchange.--
Section 103(e)(1) of the Brady Handgun Violence Prevention Act (34 
U.S.C. 40901(e)(1)) is amended by adding at the end the following:
                    ``(L) Search of national data exchange database.--
                The system established under this section shall include 
                a search of the database of the National Data Exchange 
                when conducting a background check under this 
                section.''.

SEC. 22. LIABILITY STANDARDS.

    (a) Liability in Licensing.--Section 923 of title 18, United States 
Code, is amended--
            (1) in subsection (d)(1)(D), by striking ``willfully'' and 
        inserting ``knowingly''; and
            (2) in subsection (e), by striking ``willfully'' each place 
        it appears and inserting ``knowingly''.
    (b) Liability in Penalties.--Section 924 of such title is amended--
            (1) in subsection (a)(1)(D), by striking ``willfully'' and 
        inserting ``knowingly''; and
            (2) in subsection (d)(1), by striking ``willful'' and 
        inserting ``knowing''.

SEC. 23. CIVIL ENFORCEMENT.

    (a) Fines for Engaging in the Business Without a License.--Section 
924(n), of title 18, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(n)''; and
            (2) by adding at the end the following:
    ``(2) In the case of a person who the Attorney General has found to 
be engaged in conduct that constitutes a violation of section 
922(a)(1)(A), the Attorney General shall transmit to the persona 
written notice specifying the violation, which shall include a copy of 
the provision of law violated, and impose a civil money penalty in an 
amount that is not less than $2,500 and not more than $20,000.''.
    (b) Tiered Penalties for Repeated Violations of Regulations by 
Licensed Dealers.--Section 924 of such title is amended by adding at 
the end the following:
    ``(q) Penalties Relating to Violations of Regulations by Licensed 
Dealers.--
            ``(1) In the case of a licensed dealer who the Attorney 
        General has found to be in violation of a regulation prescribed 
        under section 926, 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 violation 
                        by the licensed dealer, if not preceded by a 
                        violation 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 
                        violation 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;
                            ``(iii) in the case of the 3rd such 
                        violation by the licensed dealer, if not 
                        preceded by a violation to which subparagraph 
                        (B) applies, suspend the license to deal in 
                        firearms issued to the licensed dealer under 
                        this chapter until the violation ceases;
                            ``(iv) in the case of the 4th such 
                        violation by the licensed dealer, whether or 
                        not preceded by a violation to which 
                        subparagraph (B) applies, revoke the license; 
                        or
                            ``(v) in the case of any such violation by 
                        the licensed dealer, if preceded by a violation 
                        to which subparagraph (B) applies, apply the 
                        penalty authorized under this subsection that 
                        is 1 level greater in severity 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 violation 
                        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;
                            ``(ii) in the case of the 2nd such 
                        violation by the licensed dealer--
                                    ``(I) impose a civil money penalty 
                                in an amount equal to $20,000;
                                    ``(II) suspend the license to deal 
                                in firearms issued to the licensed 
                                dealer under this chapter until the 
                                violation ceases; or
                                    ``(III) revoke the license; or
                            ``(iii) in the case of the 3rd or 
                        subsequent such violation by the licensed 
                        dealer, apply the penalty authorized under this 
                        subsection that is 2 levels greater in severity 
                        than the level of severity of the penalty most 
                        recently applied to the licensed dealer under 
                        this subsection.
            ``(2) In the case of any such violation, if the Attorney 
        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, notwithstanding paragraph (1), immediately 
        suspend the license to deal in firearms issued to the licensed 
        dealer under this chapter and secure the firearms inventory of 
        the licensed dealer, until the violation ceases.''.

SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF CRIMINAL PROCEEDINGS 
              TERMINATED.

    Section 923(f) of title 18, United States Code, is amended by 
striking paragraph (4).

SEC. 25. REPEAL OF CERTAIN LIMITATIONS.

    (a) Limitations Related to Use of Firearms Trace Data.--
            (1) The matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' 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.
            (2) 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 Appropriations 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 inserting ``in fiscal year 2010''.
            (3) 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 Appropriations 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''.
            (4) 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 Appropriations 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 inserting ``in fiscal year 2008''.
            (5) The 6th proviso under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--Salaries and Expenses'' in 
        title I of the Science, State, Justice, Commerce, and Related 
        Agencies Appropriations Act, 2006 (18 U.S.C. 923 note; Public 
        Law 109-108; 119 Stat. 2295-2296) is amended by striking ``with 
        respect to any fiscal year''.
            (6) 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''.
            (7) Section 644 of title VI of division J of the 
        Consolidated 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''.
    (b) Limitations Relating to Consolidating and Centralizing 
Records.--The matter under the heading ``Bureau of Alcohol, Tobacco, 
Firearms and Explosives--Salaries and Expenses'' 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) is amended in 
the 1st proviso by striking ``or hereafter''.
    (c) Requirement To Destroy Instant Criminal Background Check 
Records Within 24 Hours.--Section 511 of the Consolidated and Further 
Continuing Appropriations Act, 2012 (18 U.S.C. 922 note; Public Law 
112-55; 125 Stat. 632) is amended--
            (1) by striking ``for--'' and all that follows through 
        ``(1)''; and
            (2) by striking the semicolon and all that follows and 
        inserting a period.

SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OPERATION INVESTIGATORS 
              FOR BATFE.

    The Attorney General may hire 650 Industry Operation Investigators 
for the Bureau of Alcohol, Tobacco, Firearms and Explosives, to be 
distributed among the various field divisions to match the number and 
distribution of persons licensed under chapter 44 of title 18, United 
States Code, in addition to any personnel needed to carry out this Act 
and any Industry Operation Investigators authorized by other law.

SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT.

    Within 2 years after the date of the enactment of this Act, the 
Attorney General shall submit to the Congress and publish publicly on 
the website of the Department of Justice a written report on the 
implementation of this Act and the amendments made by this Act, 
including any steps needed to complete the implementation, which shall 
identify any additional resources that are required to conduct regular 
inspections under chapter 44 of title 18, United States Code, and to 
ensure that this Act and the amendments made by this Act are enforced 
against noncompliant federally licensed firearms dealers in a timely 
manner.

SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT AND ANALYSIS.

    Within 2 years after the date of enactment of this Act, and 
annually thereafter, the Attorney General shall submit to the Congress 
and publish publicly on the website of the Department of Justice, a 
written report which states--
            (1) the number of inspections conducted of Type 01 and 02 
        Federal firearm licensees (dealers and pawnbrokers) in the 
        preceding 24 months, by each field division of the Bureau of 
        Alcohol, Tobacco, Firearms and Explosives (in this section 
        referred to as the ``BATFE''), including by the number of 
        inspections of high risk dealers and non-high risk dealers;
            (2) the number of security inspections prompted by dealer 
        reports of lost or stolen firearms, and the number of follow-up 
        inspections conducted 6 months after an inspection revealing a 
        violation;
            (3) the average time spent on high risk, non-high risk, 
        security, and follow up inspections; and
            (4) an analysis of the most frequently cited violations and 
        corrective actions or penalties imposed in each instance, 
        including--
                    (A) the number of licenses recommended to be 
                suspended or revoked;
                    (B) the number of licensees sent notices of 
                suspension or revocation;
                    (C) the number of hearings requested by licensees 
                on receipt of notice of suspension or revocation;
                    (D) the number of suspension or revocation hearings 
                initiated in a prior 12-month period that remain 
                ongoing during the 12-month period covered by the 
                report; and
                    (E) the decision ultimately rendered in each such 
                matter by the Director of the BATFE.

SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.

    Within two years after the date of enactment of this Act, the 
Attorney General shall prescribe, in final form, all regulations 
required to carry out this Act and the amendments made by this Act.
                                 <all>