[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 890 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 890

  To require criminal background checks on all firearms transactions 
occurring at events that provide a venue for the sale, offer for sale, 
transfer, or exchange of firearms, and to provide additional resources 
                       for gun crime enforcement.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2001

 Mr. McCain (for himself, Mr. Lieberman, Mr. Schumer, Mr. DeWine, and 
  Mr. Carper) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
  To require criminal background checks on all firearms transactions 
occurring at events that provide a venue for the sale, offer for sale, 
transfer, or exchange of firearms, and to provide additional resources 
                       for gun crime enforcement.

    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 ``Gun Show Loophole Closing and Gun 
Law Enforcement Act of 2001''.

             TITLE I--GUN SHOW LOOPHOLE CLOSING ACT OF 2001

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Gun Show Loophole Closing Act of 
2001''.

SEC. 102. DEFINITIONS.

    Section 921(a) of title 18, United States Code, is amended by 
adding at the end the following:
            ``(35) Special firearms event.--The term `special firearms 
        event'--
                    ``(A) means any event at which 75 or more firearms 
                are offered or exhibited for sale or exchange, if 1 or 
                more of the firearms has been shipped or transported 
                in, or otherwise affects, interstate or foreign 
                commerce; and
                    ``(B) does not include an offer or exhibit of 
                firearms for sale or exchange by an individual from the 
                personal collection of that individual, at the private 
                residence of that individual, if the individual is not 
                required to be licensed under sections 923 and 931.
            ``(36) Special firearms event frequent operator.--The term 
        `special firearms event frequent operator' means any person who 
        operates 2 or more special firearms events in a 6 month period.
            ``(37) Special firearms event infrequent operator.--The 
        term `special firearms event infrequent operator' means any 
        person who operates not more than 1 special firearms event in a 
        6 month period.
            ``(38) Special firearms event licensee.--The term `special 
        firearms event licensee' means any person who has obtained and 
        holds a valid license in compliance with section 931(d) and who 
        is authorized to contact the national instant criminal 
        background check system on behalf of another individual who is 
        not licensed under this chapter for the purpose of conducting a 
        background check for a potential firearms transfer at a special 
        firearms event in accordance with section 931(c).
            ``(39) Special firearms event vendor.--The term `special 
        firearms event vendor' means any person who is not required to 
        be licensed under section 923, who exhibits, sells, offers for 
        sale, transfers, or exchanges 1 or more firearms at a special 
        firearms event, regardless of whether or not the person 
        arranges with the special firearms event promoter for a fixed 
        location from which to exhibit, sell, offer for sale, transfer, 
        or exchange 1 or more firearms.''.

SEC. 103. REGULATION OF FIREARMS TRANSFERS AT SPECIAL FIREARMS EVENTS.

    (a) In General.--Chapter 44 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 931. Regulation of firearms transfers at special firearms events
    ``(a) Special Firearms Event Operators.--
            ``(1) Registration of special firearms event operators.--
                    ``(A) In general.--It shall be unlawful for any 
                person to operate a special firearms event unless that 
                person registers with the Secretary in accordance with 
                regulations promulgated by the Secretary.
                    ``(B) Fees.--The Secretary shall be prohibited from 
                imposing or collecting any fee from special firearms 
                event operators in connection with the registration 
                requirement in subparagraph (A).
            ``(2) Responsibilities of special firearms events frequent 
        operators.--It shall be unlawful for a special firearms events 
        frequent operator to organize, plan, promote, or operate a 
        special firearms event unless that operator--
                    ``(A) has an annual operating license for special 
                firearms events frequent operators issued by the 
                Secretary pursuant to regulations promulgated by the 
                Secretary;
                    ``(B) not later than 30 days before commencement of 
                the special firearms event, notifies the Secretary of 
                the date, time, duration, and location of the special 
                firearms event, the vendors planning to participate, 
                and any other information concerning the special 
                firearms event as the Secretary may require by 
                regulation;
                    ``(C) not later than 72 hours before commencement 
                of the special firearms event, submits to the Secretary 
                an updated list of all special firearms event vendors 
                planning to participate, and any other information 
                concerning such vendors as the Secretary may require by 
                regulation;
                    ``(D) before commencement of the special firearms 
                event, or in the case of a vendor who arrives after the 
                commencement of the event, upon the arrival of the 
                vendor, verifies the identity of each special firearms 
                event vendor participating in the special firearms 
                event by examining a valid identification document (as 
                defined in section 1028(d)(2)) of the vendor containing 
                a photograph of the vendor;
                    ``(E) before commencement of the special firearms 
                event, or in the case of a vendor who arrives after the 
                commencement of the event, upon the arrival of the 
                vendor, requires each special firearms event vendor to 
                sign--
                            ``(i) a ledger with identifying information 
                        concerning the vendor; and
                            ``(ii) a notice advising the vendor of the 
                        obligations of the vendor under this chapter;
                    ``(F) notifies each person who attends the special 
                firearms event of the requirements of this chapter, in 
                accordance with such regulations as the Secretary shall 
                prescribe;
                    ``(G) not later than 5 days after the last day of 
                the special firearms event, submits to the Secretary a 
                copy of the ledger and notice described in subparagraph 
                (E); and
                    ``(H) maintains a copy of the records described in 
                subparagraphs (C) through (E) at the permanent place of 
                business of the operator for such period of time and in 
                such form as the Secretary shall require by regulation.
            ``(3) Responsibilities of special firearms events 
        infrequent operators.--It shall be unlawful for a special 
        firearms event infrequent operator to organize, plan, promote, 
        or operate a special firearms event unless that person--
                    ``(A) not later that 30 days before commencement of 
                the special firearms event, notifies the Secretary of 
                the date, time, duration, and location of the special 
                firearms event;
                    ``(B) not later than 72 hours before commencement 
                of the special firearms event, submits to the Secretary 
                a list of all special firearms event vendors planning 
                to participate in the special firearms event and any 
                other information concerning such vendors as the 
                Secretary may require by regulation;
                    ``(C) before commencement of the special firearms 
                event, or in the case of a vendor who arrives after the 
                commencement of the event, upon the arrival of the 
                vendor, verifies the identity of each special firearms 
                event vendor participating in the special firearms 
                event by examining a valid identification document (as 
                defined in section 1028(d)(2)) of the vendor containing 
                a photograph of the vendor;
                    ``(D) before commencement of the special firearms 
                event, or in the case of a vendor who arrives after the 
                commencement of the event, upon the arrival of the 
                vendor, requires each special firearms event vendor to 
                sign--
                            ``(i) a ledger with identifying information 
                        concerning the vendor; and
                            ``(ii) a notice advising the vendor of the 
                        obligations of the vendor under this chapter;
                    ``(E) notifies each person who attends the special 
                firearms event of the requirements of this chapter, in 
                accordance with such regulations as the Secretary shall 
                prescribe;
                    ``(F) not later than 5 days after the last day of 
                the special firearms event, submits to the Secretary a 
                copy of the ledger and notice described in subparagraph 
                (D); and
                    ``(G) maintains a copy of the records described in 
                subparagraphs (B) through (D) at the permanent place of 
                business of the special firearms event promoter for 
                such period of time and in such form as the Secretary 
                shall require by regulation.
    ``(b) Responsibilities of Transferors Other Than Licensees.--
            ``(1) In general.--If any part of a firearm transaction 
        takes place at a special firearms event, or on the curtilage of 
        the event, it shall be unlawful for any person who is not 
        licensed under this chapter to transfer a firearm to another 
        person who is not licensed under this chapter, unless the 
        firearm is transferred through a licensed importer, licensed 
        manufacturer, licensed dealer, or a special firearms event 
        licensee in accordance with subsection (c).
            ``(2) Criminal background checks.--A person who is subject 
        to the requirement of paragraph (1) shall not--
                    ``(A) transfer the firearm to the transferee until 
                the licensed importer, licensed manufacturer, licensed 
                dealer, or a special firearms event licensee through 
                which the transfer is made makes the notification 
                described in subsection (c)(2)(A); or
                    ``(B) transfer the firearm to the transferee if the 
                person has been notified under subsection (c)(2)(B) 
that the transfer would violate section 922 or would violate State law.
            ``(3) Absence of recordkeeping requirements.--Nothing in 
        this section shall permit or authorize the Secretary to impose 
        recordkeeping requirements on any nonlicensed special firearms 
        event vendor.
    ``(c) Responsibilities of Licensees.--A licensed importer, licensed 
manufacturer, licensed dealer, or special firearms event licensee who 
agrees to assist a person who is not licensed under this chapter in 
carrying out the responsibilities of that person under subsection (b) 
with respect to the transfer of a firearm shall--
            ``(1) except as provided in paragraph (2), comply with 
        section 922(t) as if transferring the firearm from the 
        inventory of the licensed importer, licensed manufacturer, or 
        licensed dealer to the designated transferee (although a 
        licensed importer, licensed manufacturer, or licensed dealer 
        complying with this subsection shall not be required to comply 
        again with the requirements of section 922(t) in delivering the 
        firearm to the nonlicensed transferor);
            ``(2) not later than 3 business days (meaning a day on 
        which State offices are open), or if the event is held in a 
        State that has been certified by the Attorney General under 
        section 104 of the Gun Show Loophole Closing Act of 2001, not 
        later than 24 hours (or 3 business days if additional 
        information is required in order to verify disqualifying 
        information from a State that has not been certified by the 
        Attorney General) notify the nonlicensed transferor and the 
        nonlicensed transferee--
                    ``(A) of any response from the national criminal 
                background check system, or if the licensee has had no 
                response from the national criminal background check 
                system within the time period set forth in paragraph 
                (2), notify the nonlicensed transferor that no response 
                has been received and that the transfer may proceed; 
                and
                    ``(B) of any receipt by the licensed importer, 
                licensed manufacturer, or licensed dealer of a 
                notification from the national instant criminal 
                background check system that the transfer would violate 
                section 922 or would violate State law;
            ``(3) in the case of a transfer of 2 or more firearms on a 
        single day to a person other than a licensee, prepare a report 
        of the multiple transfers, which report shall be--
                    ``(A) on a form specified by the Secretary; and
                    ``(B) not later than the close of business on the 
                date on which the multiple transfer occurs, forwarded 
                to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(4) comply with all record keeping requirements under 
        this chapter.
    ``(d) Special Firearms Event License.--
            ``(1) In general.--The Secretary shall issue a special 
        firearms event license to a person who submits an application 
        for a special firearms event license in accordance with this 
        subsection.
            ``(2) Application.--The application required by paragraph 
        (1) shall be approved if--
                    ``(A) the applicant is 21 years of age or over;
                    ``(B) the application includes a photograph and the 
                fingerprints of the applicant;
                    ``(C) the applicant (including, in the case of a 
                corporation, partnership, or association, any 
                individual possessing, directly or indirectly, the 
                power to direct or cause the direction of the 
                management and policies of the corporation, 
                partnership, or association) is not prohibited from 
                transporting, shipping, or receiving firearms or 
                ammunition in interstate or foreign commerce under 
                subsection (g) or (n) of section 922;
                    ``(D) the applicant has not willfully violated any 
                of the provisions of this chapter or regulations issued 
                thereunder;
                    ``(E) the applicant has not willfully failed to 
                disclose any material information required, or has not 
                made any false statement as to any material fact, in 
                connection with his application; and
                    ``(F) the applicant certifies that--
                            ``(i) the applicant meets the requirements 
                        of subparagraphs (A) through (D) of section 
                        923(d)(1);
                            ``(ii) the business to be conducted under 
                        the license is not prohibited by State or local 
                        law in the place where the licensed premises is 
                        located; and
                            ``(iii) the business will not be conducted 
                        under the license until the requirements of 
                        State and local law applicable to the business 
                        have been met.
            ``(3) Application and approval.--
                    ``(A) In general.--On approval of an application as 
                provided in this subsection and payment by the 
                applicant of a fee of $200 for 3 years, and upon 
                renewal of valid registration a fee of $90 for 3 years, 
                the Secretary shall issue to the applicant an instant 
                check registration, and advise the Attorney General of 
                that registration.
                    ``(B) NICS.--A special firearms licensee may 
                contact the national instant criminal background check 
                system established under section 103 of the Brady 
                Handgun Violence Prevention Act (18 U.S.C. 922 note) 
                for information about any individual desiring to obtain 
                a firearm at a gun show from any special firearms event 
                vendor who has requested the assistance of the 
                registrant in complying with subsection (c) with 
                respect to the transfer of the firearm, during the 3-
                year period that begins with the date the registration 
                is issued.
            ``(4) Requirements.--The requirements for a special 
        firearms event licensee shall not exceed the requirements for a 
        licensed dealer and the record keeping requirements shall be 
        the same.
            ``(5) Restrictions.--
                    ``(A) Background checks.--A special firearms event 
                licensee may have access to the national instant 
                criminal background check system to conduct a 
                background check only at a special firearms event and 
                only on behalf of another person.
                    ``(B) Transfer of firearms.--A special firearms 
                event licensee shall not transfer a firearm at a 
                special firearms event.
    ``(e) Firearm Transaction Defined.--In this section, the term 
`firearm transaction'--
            ``(1) includes the sale, offer for sale, transfer, or 
        exchange of a firearm; and
            ``(2) does not include--
                    ``(A) the mere exhibition of a firearm; or
                    ``(B) the sale, transfer, or exchange of firearms 
                between immediate family, including parents, children, 
                siblings, grandparents, and grandchildren.''.
    (b) Penalties.--Section 924(a) of title 18, United States Code, is 
amended by adding at the end the following:
    ``(7)(A)(i) Whoever knowingly violates section 931(a)(1) shall be--
            ``(I) fined under this title, imprisoned not more than 2 
        years, or both; and
            ``(II) in the case of a second or subsequent conviction, 
        such person shall be fined under this title, imprisoned not 
        more than 5 years, or both.
    ``(ii) Whoever knowingly violates section 931(a)(2) shall be fined 
under this title, imprisoned not more than 5 years, or both.
    ``(iii) Whoever knowingly violates section 931(a)(3) shall be fined 
under this title, imprisoned not more than 2 years, or both.
    ``(B) Whoever knowingly violates section 931(b) shall be--
            ``(i) fined under this title, imprisoned not more than 2 
        years, or both; and
            ``(ii) in the case of a second or subsequent conviction, 
        such person shall be fined under this title, imprisoned not 
        more than 5 years, or both.
    ``(C) Whoever knowingly violates section 931(c) shall be fined 
under this title, imprisoned not more than 5 years, or both.
    ``(D) In addition to any other penalties imposed under this 
paragraph, the Secretary may, with respect to any person who violates 
any provision of section 931--
            ``(i) if the person is registered pursuant to section 
        931(a), after notice and opportunity for a hearing, suspend for 
        not more than 6 months or revoke the registration of that 
        person under section 931(a); and
            ``(ii) impose a civil fine in an amount equal to not more 
        than $10,000.''.
    (c) Technical and Conforming Amendments.--Chapter 44 of title 18, 
United States Code, is amended in the chapter analysis, by adding at 
the end the following:

``931. Regulation of firearms transfers at special firearms events.''.

SEC. 104. OPTION FOR 24-HOUR BACKGROUND CHECKS AT SPECIAL FIREARMS 
              EVENTS FOR STATES WITH COMPUTERIZED DISQUALIFYING RECORDS 
              AND PROGRAMS TO IMPROVE STATE DATABASES.

    (a) Option for 24-Hour Requirement.--
            (1) In general.--Effective 3 years after the date of 
        enactment of this Act, a State may apply to the Attorney 
        General for certification of the 24-hour verification authority 
        of that State.
            (2) Certification.--The Attorney General shall certify a 
        State for 24-hour verification authority only upon a clear 
        showing by the State that not less than 95 percent of all 
        records containing information that would disqualify an 
        individual under subsections (g) and (n) of section 922 of 
        title 18, United States Code, or under State law, is available 
        on computer records in the State, and is searchable under the 
        national instant criminal background check system established 
        under section 103 of the Brady Handgun Violence Prevention Act 
        (18 U.S.C. 922 note).
            (3) Disqualifying information.--Such disqualifying 
        information shall include, at a minimum, the disqualifying 
        records for that State going back 30 years from the date of 
        application to the Attorney General for certification.
            (4) 24-hour provision.--Upon certification by the Attorney 
        General, the 24-hour provision in section 931(c)(2) of title 
        18, United States Code, shall apply to the verification process 
        (for transfers between unlicensed persons) in that State unless 
        additional information is required in order to 
verify disqualifying information from a State that has not been 
certified by the Attorney General, in which case the 3 business day 
limit shall apply.
            (5) Annual review.--The Attorney General shall annually 
        review and revoke for any State not in compliance the 
        certification required in the amendment made by paragraph (1).
    (b) Priority.--The Attorney General shall give priority to 
background check requests at special firearms events made pursuant to 
section 931 of title 18, United States Code, as added by this Act.
    (c) Study.--Not later than 180 days after the date of enactment of 
this Act, the Attorney General shall identify and report to Congress 
the reasons for delays in background checks at the Federal and State 
levels and include recommendations for eliminating those delays.
    (d) Grant Program.--
            (1) In general.--The Attorney General is authorized to make 
        grants to States to assist in the computerization of the 
        criminal conviction records and other disqualifying records of 
        that State and with other issues facing States that want to 
        apply for certification under section 104(a) of this title.
            (2) Authorization.--There are authorized to be appropriated 
        such sums as are necessary for fiscal years 2002 through 2004 
        to carry out this subsection.

SEC. 105. INSPECTION AUTHORITY.

    Section 923(g)(1)(B), of title 18, United States Code, is amended 
by striking ``or licensed dealer'' and inserting ``licensed dealer, or 
special firearms event operator''.

SEC. 106. INCREASED PENALTIES FOR SERIOUS RECORDKEEPING VIOLATIONS BY 
              LICENSEES.

    Section 924(a)(3) of title 18, United States Code, is amended to 
read as follows:
            ``(3)(A) Except as provided in subparagraph (B), any 
        licensed dealer, licensed importer, licensed manufacturer, 
        licensed collector, or special firearms event licensee who 
        knowingly makes any false statement or representation with 
        respect to the information required by this chapter to be kept 
        in the records of a person licensed under this chapter, or 
        violates section 922(m) shall be fined under this title, 
        imprisoned not more than 1 year, or both.
            ``(B) If the violation described in subparagraph (A) is in 
        relation to an offense--
                    ``(i) under paragraph (1) or (3) of section 922(b), 
                such person shall be fined under this title, imprisoned 
                not more than 5 years, or both; or
                    ``(ii) under subsection (a)(6) or (d) of section 
                922, such person shall be fined under this title, 
                imprisoned not more than 10 years, or both.''.

SEC. 107. INCREASED PENALTIES FOR VIOLATIONS OF CRIMINAL BACKGROUND 
              CHECK REQUIREMENTS.

    Section 924(a) of title 18, United States Code, is amended--
            (1) in paragraph (5), by striking ``subsection (s) or (t) 
        of section 922'' and inserting ``section 922(s)''; and
            (2) by adding at the end the following:
            ``(8) Whoever knowingly violates section 922(t) shall be 
        fined under this title, imprisoned not more than 5 years, or 
        both.''.

SEC. 108. RULE OF INTERPRETATION.

    A provision of State law is not inconsistent with this title or an 
amendment made by this title if the provision imposes a regulation or 
prohibition of greater scope or a penalty of greater severity than any 
prohibition or penalty imposed by this title or an amendment made by 
this title.

SEC. 109. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
180 days after the date of enactment of this Act.

               TITLE II--GUN LAW ENFORCEMENT ACT OF 2001

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Gun Law Enforcement Act of 2001''.

SEC. 202. STATE AND LOCAL GUN CRIME PROSECUTORS.

    (a) Purpose.--The purpose of this section is to--
            (1) provide funding for State and local prosecutors to 
        focus on gun prosecutions in high gun crime areas; and
            (2) double funding for such programs from fiscal year 2001 
        to 2002.
    (b) Authorization.--There are authorized to be appropriated 
$150,000,000 for fiscal year 2002 to the Attorney General to provide 
grants to States and units of local government to support prosecutions 
in high gun crime areas by State and local prosecutors.

SEC. 203. NATIONAL PROJECT EXILE.

    (a) Purpose.--The purpose of this section is to provide funding to 
replicate the success of the Project EXILE program.
    (b) Authorization.--There are authorized to be appropriated 
$20,000,000 for fiscal year 2002 to the Attorney General to provide for 
additional Assistant United States Attorneys to establish not to exceed 
100 Project EXILE programs with local United States Attorneys and local 
jurisdictions.
    (c) Media Awareness.--From amounts authorized by subsection (b), 
the Attorney General may provide funds to participating local 
jurisdictions.

SEC. 204. FUNDING FOR ADDITIONAL ATF AGENTS.

    There are authorized to be appropriated $18,000,000 for fiscal year 
2002 to the Secretary of the Treasury for the purpose of funding the 
hiring of an additional 200 agents for the Bureau of Alcohol, Tobacco, 
and Firearms.

SEC. 205. GUN TRACING AND YOUTH CRIME GUN INTERDICTION.

    There are authorized to be appropriated $20,000,000 for fiscal 
years 2002 through 2005 to the Secretary of the Treasury for the 
purpose of--
            (1) funding additional resources for the Bureau of Alcohol, 
        Tobacco, and Firearms to trace guns involved in gun crimes; and
            (2) expanding the Youth Crime Gun Interdiction Initiative 
        to 250 cities over the 4 years funding is authorized.

SEC. 206. SMART GUN TECHNOLOGY.

    There are authorized to be appropriated $10,000,000 for fiscal year 
2002 to the National Institute for Justice for the purpose of making 
grants to research entities developing technologies that limit the use 
of a gun to the owner.

SEC. 207. REPORT ON BRADY ENFORCEMENT.

    Not later than February 1 of each year--
            (1) the Attorney General shall report to Congress--
                    (A) the number of prosecutions resulting from 
                background checks conducted pursuant to the Brady 
                Handgun Violence Prevention Act;
                    (B) what barriers exist to prosecutions under that 
                Act; and
                    (C) what steps could be taken to maximize 
                prosecutions; and
            (2) the Secretary of Treasury shall report to Congress--
                    (A) the number of investigations conducted pursuant 
                to the Brady Handgun Violence Prevention Act;
                    (B) the number of investigations initiated but not 
                pursued under that Act;
                    (C) the number of firearms retrieved as transferred 
                in contravention of that Act; and
                    (D) what barriers exist to investigations under 
                that Act.
                                 <all>