[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2443 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2443

 To amend chapter 44 of title 18, United States Code, relating to the 
        regulation of firearms dealers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 1999

 Mrs. Lowey (for herself, Mrs. McCarthy of New York, Ms. DeLauro, Ms. 
 Jackson-Lee of Texas, Ms. Schakowsky, Mrs. Maloney of New York, Mrs. 
   Napolitano, Ms. Carson, Ms. Norton, Ms. Woolsey, Ms. Lofgren, Ms. 
 Millender-McDonald, Ms. Lee, Ms. Eddie Bernice Johnson of Texas, Mrs. 
 Mink of Hawaii, and Mr. Weiner) introduced the following bill; which 
             was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend chapter 44 of title 18, United States Code, relating to the 
        regulation of firearms dealers, 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.

    This Act may be cited as the ``Targeted Gun Dealer Enforcement Act 
of 1999''.

SEC. 2. REGULATION OF LICENSED DEALERS.

    (a) Prohibition on Straw Purchases.--
            (1) In general.--Section 922(a)(6) of title 18, United 
        States Code, is amended by inserting ``, or with respect to the 
        identity of the person in fact purchasing or attempting to 
        purchase such firearm or ammunition,'' before ``under the''.
            (2) Penalties.--Section 924(a)(3) of title 18, United 
        States Code, is amended by adding at the end the following: 
        ``Notwithstanding the preceding sentence, a violation in 
        relation to section 922(a)(6) or 922(d) by a licensed dealer, 
        licensed importer, licensed manufacturer, or licensed collector 
        shall be subject to the penalties under paragraph (2) of this 
        subsection.''.
    (b) Notification of State Law Regarding Carrying Concealed 
Firearms.--Section 922 of title 18, United States Code, is amended by 
inserting after subsection (y) the following:
    ``(z) Notification of State Requirements.--It shall be unlawful for 
a licensed dealer to transfer a firearm to any person, unless the 
dealer notifies that person whether applicable State law requires 
persons to be licensed to carry concealed firearms in the State, or 
prohibits the carrying of concealed firearms in the State.''.
    (c) Revocation or Suspension of License; Civil Penalties.--Section 
923 of title 18, United States Code, is amended by striking subsections 
(e) and (f) and inserting the following:
    ``(e) Revocation or Suspension of License; Civil Penalties.--
            ``(1) In general.--The Secretary may, after notice and 
        opportunity for hearing--
                    ``(A) suspend or revoke any license issued under 
                this section, if the holder of such license--
                            ``(i) willfully violates any provision of 
                        this chapter or any rule or regulation 
                        prescribed by the Secretary under this chapter; 
                        or
                            ``(ii) fails to have secure gun storage or 
                        safety devices available at any place in which 
                        firearms are sold under the license to persons 
                        who are not licensees (except that in any case 
                        in which a secure gun storage or safety device 
                        is temporarily unavailable because of theft, 
                        casualty loss, consumer sales, backorders from 
                        a manufacturer, or any other similar reason 
                        beyond the control of the licensee, the 
                        licensed dealer shall not be considered to be 
                        in violation of the requirement to make 
                        available such a device);
                    ``(B) suspend or revoke the license issued under 
                this section to a dealer who willfully transfers armor 
                piercing ammunition; and
                    ``(C) assess and collect a civil penalty of not 
                more than $10,000 per violation against any holder of a 
                license, if the Secretary is authorized to suspend or 
                revoke the license of that holder under subparagraph 
                (A) or (B).
            ``(2) Liability.--The Secretary may at any time compromise, 
        mitigate, or remit the liability with respect to any willful 
        violation of this subsection or any rule or regulation 
        prescribed by the Secretary under this subsection.
            ``(3) Review.--An action of the Secretary under this 
        subsection may be reviewed only as provided in subsection (f).
            ``(4) Notification requirement.--Not less than once every 6 
        months, the Secretary shall notify each licensed manufacturer 
        and each licensed dealer of the name, address, and license 
        number of each dealer whose license was suspended or revoked 
        under this section during the preceding 6-month period.
    ``(f) Rights of Applicants and Licensees.--
            ``(1) In general.--If the Secretary denies an application 
        for, or revokes or suspends a license, or assesses a civil 
        penalty under this section, the Secretary shall provide written 
        notice of such denial, revocation, suspension, or assessment to 
        the affected party, stating specifically the grounds upon which 
        the application was denied, the license was suspended or 
        revoked, or the civil penalty was assessed. Any notice of a 
        revocation or suspension of a license under this paragraph 
        shall be given to the holder of such license before the 
        effective date of the revocation or suspension, as applicable.
            ``(2) Appeal process.--
                    ``(A) Hearing.--If the Secretary denies an 
                application for, or revokes or suspends a license, or 
                assesses a civil penalty under this section, the 
                Secretary shall, upon request of the aggrieved party, 
                promptly hold a hearing to review the denial, 
                revocation, suspension, or assessment. A hearing under 
                this subparagraph shall be held at a location 
                convenient to the aggrieved party.
                    ``(B) Notice of decision; appeal.--If, after a 
                hearing held under subparagraph (A), the Secretary 
decides not to reverse the decision of the Secretary to deny the 
application, revoke or suspend the license, or assess the civil 
penalty, as applicable--
                            ``(i) the Secretary shall provide notice of 
                        the decision of the Secretary to the aggrieved 
                        party;
                            ``(ii) during the 60-day period beginning 
                        on the date on which the aggrieved party 
                        receives a notice under clause (i), the 
                        aggrieved party may file a petition with the 
                        district court of the United States for the 
                        judicial district in which the aggrieved party 
                        resides or has a principal place of business 
                        for a de novo judicial review of such denial, 
                        revocation, suspension, or assessment;
                            ``(iii) in any judicial proceeding pursuant 
                        to a petition under clause (ii)--
                                    ``(I) the court may consider any 
                                evidence submitted by the parties to 
                                the proceeding, regardless of whether 
                                or not such evidence was considered at 
                                the hearing held under subparagraph 
                                (A); and
                                    ``(II) if the court decides that 
                                the Secretary was not authorized to 
                                make such denial, revocation, 
                                suspension, or assessment, the court 
                                shall order the Secretary to take such 
                                actions as may be necessary to comply 
                                with the judgment of the court.
            ``(3) Stay pending appeal.--If the Secretary suspends or 
        revokes a license under this section, upon the request of the 
        holder of the license, the Secretary shall stay the effective 
        date of the revocation, suspension, or assessment.''.
    (d) Effect of Conviction.--Section 925(b) of title 18, United 
States Code, is amended by striking ``until any conviction pursuant to 
the indictment becomes final'' and inserting ``until the date of any 
conviction pursuant to the indictment''.
    (e) Regulation of High-Volume Crime Gun Dealers.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
            ``(8) High-volume crime gun dealers.--
                    ``(A) Definition.--In this paragraph, the term 
                `high-volume crime gun dealer' means any licensed 
                dealer with respect to which a designation under 
                subparagraph (B)(i) is in effect, as provided in 
                subparagraph (B)(ii).
                    ``(B) Designation of high-volume crime gun 
                dealers.--
                            ``(i) In general.--The Secretary shall 
                        designate a licensed dealer as a high-volume 
                        crime gun dealer--
                                    ``(I) as soon as practicable, if 
                                the Secretary determines that the 
                                licensed dealer sold, delivered, or 
                                otherwise transferred to 1 or more 
                                persons not licensed under this chapter 
                                not less than 25 firearms that, during 
                                the preceding calendar year, were used 
                                during the commission or attempted 
                                commission of a criminal offense under 
                                Federal, State, or local law, or were 
                                possessed in violation of Federal, 
                                State, or local law; or
                                    ``(II) immediately upon the 
                                expiration date of a suspension of the 
                                license of that dealer for a willful 
                                violation of this chapter, if such 
                                violation involved 1 or more firearms 
                                that were subsequently used during the 
                                commission or attempted commission of a 
                                criminal offense under Federal, State, 
                                or local law.
                            ``(ii) Effective period of designation.--A 
                        designation under clause (i) shall remain in 
                        effect during the period beginning on the date 
                        on which the designation is made and ending on 
                        the later of--
                                    ``(I) the expiration of the 18-
                                month period beginning on that date; or
                                    ``(II) the date on which the 
                                license issued to that dealer under 
                                this section expires.
                    ``(C) Notification requirement.--Upon the 
                designation of a licensed dealer as a high-volume crime 
                gun dealer under subparagraph (B), the Secretary shall 
                notify the appropriate United States attorney's office, 
                the appropriate State and local law enforcement 
                agencies (including the district attorney's offices and 
                the police or sheriff's departments), and each State 
                and local agency responsible for the issuance of 
                business licenses in the jurisdiction in which the 
                high-volume crime gun dealer is located of such 
                designation.
                    ``(D) Reporting and recordkeeping requirements.--
                Notwithstanding any other provision of this paragraph--
                            ``(i) not later than 10 days after the date 
                        on which a handgun is sold, delivered, or 
                        otherwise transferred by a high-volume crime 
                        gun dealer to a person not licensed under this 
                        chapter, the high-volume crime gun dealer shall 
                        submit to the Secretary and to the department 
                        of State police or State law enforcement agency 
                        of the State or local jurisdiction in which the 
                        sale, delivery, or transfer took place, on a 
                        form prescribed by the Secretary, a report of 
                        the sale, delivery, or transfer, which report 
                        shall include--
                                    ``(I) the manufacturer or importer 
                                of the handgun;
                                    ``(II) the model, type, caliber, 
                                gauge, and serial number of the 
                                handgun; and
                                    ``(III) the name, address, date of 
                                birth, and height and weight of the 
                                purchaser or transferee, as applicable;
                            ``(ii) each high-volume crime gun dealer 
                        shall submit to the Secretary, on a form 
                        prescribed by the Secretary, a monthly report 
                        of each firearm received and each firearm 
disposed of by the dealer during that month, which report shall include 
only the name of the manufacturer or importer and the model, type, 
caliber, gauge, serial number, date of receipt, and date of disposition 
of each such firearm, except that the initial report submitted by a 
dealer under this clause shall include such information with respect to 
the entire inventory of the high-volume crime gun dealer; and
                            ``(iii) a high-volume crime gun dealer may 
                        not destroy any record required to be 
                        maintained under paragraph (1)(A).
                    ``(E) Inspection.--Notwithstanding paragraph (1), 
                the Secretary may inspect or examine the inventory and 
                records of a high-volume crime gun dealer at any time 
                without a showing of reasonable cause or a warrant for 
                purposes of determining compliance with the 
                requirements of this chapter.
                    ``(F) Recordkeeping by local police departments.--
                Notwithstanding paragraph (3)(B), a State or local law 
                enforcement agency that receives a report under 
                subparagraph (D)(i) may retain a copy of that record 
                for not more than 5 years.
                    ``(G) License renewal.--Notwithstanding subsection 
                (d)(2), the Secretary shall approve or deny an 
                application for a license submitted by a high-volume 
                crime gun dealer before the expiration of the 120-day 
                period beginning on the date on which the application 
                is received.
                    ``(H) Effect of failure to comply.--
                            ``(i) In general.--Notwithstanding 
                        subsection (e), the Secretary shall, after 
                        notice and an opportunity for a hearing--
                                    ``(I) suspend for not less than 90 
                                days any license issued under this 
                                section to a high-volume crime gun 
                                dealer who willfully violates any 
                                provision of this section (including 
                                any requirement of this paragraph);
                                    ``(II) revoke any license issued 
                                under this section to a high-volume 
                                crime gun dealer who willfully violates 
                                any provision of this section 
                                (including any requirement of this 
                                paragraph) and who has committed a 
                                prior willful violation of any 
                                provision of this section (including 
                                any requirement of this paragraph); and
                                    ``(III) revoke any license issued 
                                under this section to a high-volume 
                                crime gun dealer who willfully violates 
                                any provision of section 922 or 924.
                            ``(ii) Stay pending appeal.--
                        Notwithstanding subsection (f)(3), the 
                        Secretary may not stay the effective date of a 
                        suspension or revocation under this 
                        subparagraph pending an appeal.''.

SEC. 3. ENHANCED ABILITY TO TRACE FIREARMS.

    (a) Voluntary Submission of Dealer's Records.--Section 923(g)(4) of 
title 18, United States Code, is amended to read as follows:
            ``(4) Voluntary submission of dealer's records.--
                    ``(A) Business discontinued.--
                            ``(i) Successor.--When a firearms or 
                        ammunition business is discontinued and 
                        succeeded by a new licensee, the records 
                        required to be kept by this chapter shall 
                        appropriately reflect that fact and shall be 
                        delivered to the successor. Upon receipt of 
                        those records, the successor licensee may 
                        retain the records of the discontinued business 
                        or submit the discontinued business records to 
                        the Secretary.
                            ``(ii) No successor.--When a firearms or 
                        ammunition business is discontinued without a 
                        successor, records required to be kept by this 
                        chapter shall be delivered to the Secretary 
                        within 30 days after the business is 
                        discontinued.
                    ``(B) Old records.--A licensee maintaining a 
                firearms business may voluntarily submit the records 
                required to be kept by this chapter to the Secretary if 
                such records are at least 20 years old.
                    ``(C) State or local requirements.--If State law or 
                local ordinance requires the delivery of records 
                regulated by this paragraph to another responsible 
                authority, the Secretary may arrange for the delivery 
                of records to such other responsible authority.''
    (b) Centralization and Maintenance of Records.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
            ``(9) Centralization and maintenance of records by 
        secretary.--Notwithstanding any other provision of law, the 
        Secretary--
                    ``(A) may receive and centralize any information or 
                records submitted to the Secretary under this chapter 
                and maintain such information or records in whatever 
                manner will enable their most efficient use in law 
                enforcement investigations; and
                    ``(B) shall retain a record of each firearms trace 
                conducted by the Secretary, unless the Secretary 
                determines that there is a valid law enforcement reason 
                not to retain the record.''.
    (c) Licensee Reports of Secondhand Firearms.--Section 923(g) of 
title 18, United States Code, is amended by adding at the end the 
following:
            ``(10) Licensee reports of secondhand firearms.--A licensed 
        importer, licensed manufacturer, and licensed dealer shall 
        submit to the Secretary, on a form prescribed by the Secretary, 
        a monthly report of each firearm received from a person not 
        licensed under this chapter during that month, which report 
        shall not include any identifying information relating to the 
        transferor or any subsequent purchaser.''.

SEC. 4. GENERAL REGULATION OF FIREARMS TRANSFERS.

    (a) Transfers of Crime Guns.--Section 924(h) of title 18, United 
States Code, is amended by inserting ``or having reasonable cause to 
believe'' after ``knowing''.
    (b) Increased Penalties for Trafficking in Firearms With 
Obliterated Serial Numbers.--Section 924(a) of title 18, United States 
Code, is amended--
            (1) in paragraph (1)(B), by striking ``(k),''; and
            (2) in paragraph (2), by inserting ``(k),'' after ``(j),''.

SEC. 5. AMENDMENT OF FEDERAL SENTENCING GUIDELINES.

    The United States Sentencing Commission shall amend the Federal 
sentencing guidelines to reflect the amendments made by this Act.
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