Title: Gun Theft Prevention Act
Policy area: Crime and Law Enforcement

Summary:
Gun Theft Prevention Act
This bill makes various changes to federal firearms laws related to detecting and deterring the theft of firearms from federally licensed gun dealers.
Among the changes, the bill establishes security requirements for gun dealers; background check requirements for employees of gun dealers; inspection requirements for the Bureau of Alcohol, Tobacco, Firearms and Explosives; and reporting requirements for individual gun owners.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4423 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 4423

To enhance safety and security at federally licensed gun shops, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 2021

 Mr. Morelle (for himself, Mr. Khanna, Ms. Schakowsky, Mr. Carson, Mr. 
   Suozzi, and Ms. Scanlon) introduced the following bill; which was 
  referred to the Committee on the Judiciary, and in addition to the 
 Committee on Rules, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To enhance safety and security at federally licensed gun shops, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Gun Theft 
Prevention Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Gun shop security measures.
Sec. 3. Repeal of prohibition on use of funds to implement rule 
                            requiring physical inventory by Federal 
                            firearms licensees.
Sec. 4. Inspections.
Sec. 5. Employee background checks.
Sec. 6. Gun store thefts.
Sec. 7. Civil enforcement.
Sec. 8. No effect on State laws governing dealing in firearms.
Sec. 9. Repeal of prohibition on denial of Federal firearm license due 
                            to lack of business activity.
Sec. 10. Repeal of limitations relating to use of firearms trace data.
Sec. 11. Lost and stolen reporting requirement.
Sec. 12. Report on implementation of this Act.
Sec. 13. Hearing.
Sec. 14. Deadline for issuance of final regulations.

SEC. 2. GUN SHOP SECURITY MEASURES.

    (a) Regulations.--
            (1) In general.--Section 926 of title 18, United States 
        Code, 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 licensed dealer deals 
in firearms are secure from theft, which shall include requiring--
            ``(1) compliance with the security plan submitted by the 
        licensed dealer pursuant to section 923(d)(1)(G);
            ``(2) the use of locked metal cabinets and fireproof safes;
            ``(3) security systems, video monitoring, and anti-theft 
        alarms;
            ``(4) security gates, strong locks, and site hardening; and
            ``(5) concrete bollards and other access controls, if 
        necessary.''.
            (2) Transition rule.--The regulations prescribed under 
        section 926(d)(1) of title 18, United States Code, shall not 
        apply to a person who, on the date of the enactment of this 
        Act, is a licensed dealer (as defined in section 921(a)(11) 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.
    (b) Security Plan Submission Requirement.--
            (1) In general.--Section 923(d)(1)(G) of such title is 
        amended by inserting ``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'' before the period.
            (2) Transition rule.--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 1-year period. Any plan so 
        submitted shall be considered to be submitted pursuant to such 
        section 923(d)(1)(G), for purposes of such sections 
        923(g)(6)(B) and 926(d).
    (c) Annual Security Plan Compliance Certification Requirement.--
            (1) In general.--Section 923 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(m)(1) Each licensed dealer shall annually certify to the 
Attorney General that each premises from which the licensed dealer 
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 
firearms inventory of the licensed dealer with the firearms inventory 
at the time of the most recent prior certification (if any) under this 
paragraph, including a report of any missing firearms.
    ``(2) The Attorney General may impose a civil money penalty of not 
more than $5,000 on, and may suspend the license to deal in firearms 
issued under this section to, a licensed dealer who fails to comply 
with paragraph (1).''.
            (2) Transition rule.--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 licensed dealer (as defined 
        in section 921(a)(11) of title 18, United States Code), until 
        the end of the 1-year period that begins with the date person 
        complies with subsection (b)(2) of this section.
    (d) Effective Date.--The amendments made by this section shall take 
effect 1 year after the date of the enactment of this Act.

SEC. 3. REPEAL OF PROHIBITION ON USE OF FUNDS TO IMPLEMENT RULE 
              REQUIRING PHYSICAL INVENTORY BY FEDERAL FIREARMS 
              LICENSEES.

    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 
(Public Law 113-6; 127 Stat. 248) is amended by striking the 5th 
proviso.

SEC. 4. INSPECTIONS.

    (a) Elimination of Limit on Annual Inspections of Licensees.--
Section 923(g)(1)(B)(ii) of title 18, United States Code, is amended by 
striking ``--'' and all that follows through ``(II)''.
    (b) 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: ``The Attorney General shall, without such 
reasonable cause or warrant, annually inspect or examine the inventory, 
records, and business premises of each licensed dealer whom the 
Attorney General regards as a high risk dealer (based on the 
considerations used to do so as of the date of the enactment of this 
sentence), and triennially inspect or examine the inventory, records, 
and business premises of each other licensed dealer. Within 6 months 
after an inspection under this subparagraph 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.''
    (c) 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, in addition to any personnel needed to carry out this Act 
and any Industry Operation Investigators authorized by other law.

SEC. 5. EMPLOYEE BACKGROUND CHECKS.

    (a) Requirements.--
            (1) Background check required before firearm possession by 
        dealer employee.--Section 923(g) of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(8) A licensed dealer shall not allow an employee of the licensed 
dealer to possess a firearm at a premises from which the licensed 
dealer conducts business subject to license under this chapter unless--
            ``(A) the licensed dealer has contacted the national 
        instant criminal background check system established under 
        section 103 of the Brady Handgun Violence Prevention Act for 
        information about whether it would be unlawful for the 
        individual to receive a firearm; and
            ``(B) 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.''.
            (2) Background checks required before issuance or renewal 
        of dealer license.--Section 923(c) of such title is amended by 
        inserting after the 1st sentence the following: 
        ``Notwithstanding the preceding sentence, the Attorney General 
        may not issue or renew a license to deal in firearms unless the 
        Attorney General has contacted the national instant criminal 
        background check system established under section 103 of the 
        Brady Handgun Violence Prevention Act for information about 
        whether it would be unlawful for any employee of the applicant 
        for the license or renewal, identified by the applicant as 
        having the responsibility to receive a firearm, for information 
        about whether it would be unlawful for the employee 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 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.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date that is 1 year after the date of 
        the enactment of this Act.
    (b) Authority of NICS System To Respond to Licensed Dealer Request 
for Criminal Background Check of Employee or Prospective Employee.--
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 prospective employee of the licensed 
dealer would violate such section 922 or State law.''.

SEC. 6. GUN STORE THEFTS.

    (a) In General.--Section 923(g)(6) of title 18, United States Code, 
is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:
    ``(B)(i) Within 30 days after the Attorney General receives a 
report from a licensed dealer pursuant to subparagraph (A) of this 
paragraph 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 may 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.''.
    (b) Exemption of Stolen Firearms From Product Liability.--Section 
4(4) of the Protection of Lawful Commerce in Arms Act (15 U.S.C. 
7903(4)) is amended by inserting ``, except any such firearm the theft 
of which is required by section 923(g)(6)(A) of such title to be 
reported'' before the period.

SEC. 7. CIVIL ENFORCEMENT.

    Section 923 of title 18, United States Code, as amended by section 
2(c)(1) of this Act, is amended by adding at the end the following:
    ``(n) In the case of a licensed dealer who the Attorney General has 
found to be in violation of a regulation prescribed under section 
926(d), to not have implemented a corrective action required by the 
Attorney General at the completion of a security inspection conducted 
under subsection (g)(6)(B)(i) of this section within 30 days after the 
date of the inspection, or to be in violation of subsection (g)(8) of 
this section--
            ``(1) the Attorney General shall--
                    ``(A) if the violation is not a result of gross 
                negligence by the licensed dealer--
                            ``(i) in the case of the 1st such violation 
                        of the law or regulation 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 that 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; or
                                    ``(II) suspend the license to deal 
                                in firearms issued to the licensed 
                                dealer under this chapter until the 
                                violation ceases; or
                                    ``(III) revoke that 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 1 or 2 levels greater in 
                        severity than the level of severity of the 
                        penalty most recently applied to the licensed 
                        dealer under this subsection; and
            ``(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 firearm issued to the licensed 
        dealer under this chapter and secure the firearms inventory of 
        the licensed dealer, until the violation ceases.''.

SEC. 8. NO EFFECT ON STATE LAWS GOVERNING DEALING IN FIREARMS.

    Nothing in this Act shall be interpreted to preclude a State from 
imposing or enforcing any requirement relating to dealing in firearms 
(as defined in section 921(a)(3) of title 18, United States Code).

SEC. 9. REPEAL OF PROHIBITION ON DENIAL OF FEDERAL FIREARM LICENSE DUE 
              TO LACK OF BUSINESS ACTIVITY.

    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. 248) is amended by 
striking the 6th proviso.

SEC. 10. REPEAL OF LIMITATIONS RELATING TO USE OF FIREARMS TRACE DATA.

    (a) The matter under the heading ``Bureau of 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.
    (b) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco, 
Firearms and Explosives--Salaries and Expenses'' in title II of 
division B of the Consolidated 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''.
    (c) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco, 
Firearms and Explosives--Salaries and Expenses'' in title II of 
division B of the Omnibus 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''.
    (d) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco, 
Firearms and Explosives--Salaries and Expenses'' in title II of 
division B of the Consolidated 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''.
    (e) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco, 
Firearms and Explosives--Salaries and Expenses'' in title I of the 
Science, State, Justice, 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''.
    (f) The 6th proviso under the heading in title I of division B of 
the Consolidated Appropriations Act, 2005 (18 U.S.C. 923 note; Public 
Law 108-447; 118 Stat. 2859-2860) is amended by striking ``with respect 
to any fiscal year''.
    (g) Section 644 of title VI of division J of the 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''.

SEC. 11. LOST AND STOLEN REPORTING REQUIREMENT.

    (a) In General.--Section 922 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(aa) The owner of a firearm shall report the theft or loss of the 
firearm, within 30 days after the owner becomes aware of the theft or 
loss, to the Attorney General and to the appropriate local 
authorities.''.
    (b) Civil Penalty.--Section 924 of such title is amended by adding 
at the end the following:
    ``(q) Whoever violates section 922(aa) shall be fined not more than 
$1,000 in a civil proceeding.''.

SEC. 12. 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 a written report on the 
implementation of this Act and the amendments made by this Act, 
including any remaining steps that are necessary to complete the 
implementation, which shall also identify any additional resources that 
are required to conduct regular inspections and to ensure that this Act 
and the amendments made by this Act are enforced against noncompliant 
firearm dealers in a timely manner.

SEC. 13. HEARING.

    (a) In General.--The Committee on the Judiciary of the House of 
Representatives shall hold a hearing on the report submitted by the 
Attorney General under section 12.
    (b) Exercise of Rulemaking Authority.--Subsection (a) is enacted--
            (1) as an exercise of rulemaking power of the House of 
        Representatives, and, as such, shall be considered as part of 
        the rules of the House, and such rules shall supersede any 
        other rule of the House only to the extent that rule is 
        inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change such rules (so far as relating to the 
        procedure in such House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of the 
        House.

SEC. 14. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.

    Within 1 year after the date of the enactment of this Act, the 
Attorney shall prescribe, in final form, all regulations required to 
carry out this Act and the amendments made by this Act.
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