[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3832 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 3832

  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 for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 2004

  Mr. Castle (for himself, Mrs. McCarthy of New York, Mr. Quinn, Mr. 
 Kirk, and Mrs. Johnson of Connecticut) introduced the following bill; 
          which was 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 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 ``Gun Show Loophole Closing Act of 
2004''.

SEC. 2. DEFINITIONS.

    Section 921(a) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(36) Special firearms event.--The term `special firearms event'--
            ``(A) means any event at which 75 or more firearms are 
        offered or exhibited for sale, exchange, or transfer, if 1 or 
        more of the firearms has been shipped or transported in, or 
        otherwise affects, interstate or foreign commerce;
            ``(B) does not include an offer or exhibit of firearms for 
        sale, exchange, or transfer 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 section 923 or 932; and
            ``(C) does not include an offer or exhibit of firearms for 
        sale, exchange, or transfer at events conducted and attended by 
        permanent or annual dues paying members, and their immediate 
        family, of private, not-for-profit organizations whose primary 
        purpose is owning and maintaining real property for the purpose 
        of hunting activities.
    ``(37) 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 932(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 932(c).
    ``(38) Special firearms event vendor.--The term `special firearms 
event vendor' means any person who is not required to be licensed under 
section 923 and 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. 3. 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. 932. Regulation of firearms transfers at special firearms events
    ``(a) Special Firearms Events Operators.--
            ``(1) Notification to attorney general of special firearms 
        event operators.--
                    ``(A) In general.--It shall be unlawful for any 
                person to operate a special firearms event unless that 
                person notifies the Attorney General in accordance with 
                regulations promulgated by the Attorney General.
                    ``(B) Fees.--The Attorney General shall be 
                prohibited from imposing or collecting any fee from 
                special firearms event operators in connection with the 
                notification requirement in subparagraph (A).
            ``(2) Responsibilities of special firearms events 
        operators.--It shall be unlawful for a special firearms events 
        operator to organize, plan, promote, or operate a special 
        firearms event unless that operator--
                    ``(A) not later than 30 days before the 
                commencement of the special firearms event, notifies 
                the Attorney General, in writing, of the date, time, 
                duration, and location of the special firearms event, 
                and the special firearms event vendors planning to 
                participate;
                    ``(B) before the 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;
                    ``(C) before the 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;
                    ``(D) notifies each person who attends the special 
                firearms event of the requirements of this chapter, in 
                accordance with such regulations as the Attorney 
                General shall prescribe;
                    ``(E) not later than 5 days after the last day of 
                the special firearms event, submits to the Attorney 
                General a copy of the ledger and notice described in 
                subparagraph (C)(i); and
                    ``(F) maintains a copy of the records described in 
                subparagraphs (B) and (C) at the permanent place of 
                business of the operator for such period of time and in 
                such form as the Attorney General 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 State 
                law.
            ``(3) Absence of recordkeeping requirements.--Nothing in 
        this section shall permit or authorize the Attorney General 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 days on which 
        State offices are open) after the date of the agreement to 
        purchase, or if the event is held in a State that has been 
        certified by the Attorney General under section 4 of the Gun 
        Show Loophole Closing Act of 2004, not later than 24 hours 
        after such date (or 3 business days after such date 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 applicable time period under this 
                paragraph, 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 at one time or during any 5 
        consecutive business days, of 2 or more pistols or revolvers, 
        or any combination of pistols and revolvers totaling 2 or more, 
        to the same nonlicensed person, in addition to the record 
        keeping requirements described in paragraph (4), prepare a 
        report of the multiple transfers, which report shall be--
                    ``(A) on a form specified by the Attorney General; 
                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 Attorney General 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 the 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.--Upon the approval of an 
                application under this subsection and payment by the 
                applicant of a fee of $200 for 3 years, and upon 
                renewal of a valid registration and payment of a fee of 
                $90 for 3 years, the Attorney General shall issue to 
                the applicant an instant check registration, and advise 
                the Attorney General of that registration.
                    ``(B) NICS.--A special firearms event 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 special firearms event 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 on the date on which 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 members, 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:
    ``(8)(A) Whoever knowingly violates section 932(a)(1) or 932(b)--
            ``(i) shall be fined under this title, imprisoned not more 
        than 2 years, or both; and
            ``(ii) in the case of a second or subsequent conviction, 
        shall be fined under this title, imprisoned not more than 5 
        years, or both.
    ``(B) Whoever knowingly violates section 932(a)(2) or 932(c) shall 
be fined under this title, imprisoned not more than 5 years, or both.
    ``(C) Whoever knowingly violates section 932(a)(3) shall be fined 
under this title, imprisoned not more than 2 years, or both.
    ``(D) In addition to any other penalties imposed under this 
paragraph, the Attorney General may, with respect to any person who 
violates any provision of section 932--
            ``(i) if the person is registered pursuant to section 
        932(a), after notice and opportunity for a hearing, suspend for 
        not more than 6 months or revoke the registration of that 
        person under section 932(a); and
            ``(ii) impose a civil fine in an amount equal to not more 
        than $10,000.''.
    (c) Unlawful Acts.--Section 922(b) of title 18, United States Code, 
is amended in the matter preceding paragraph (1), by striking ``or 
licensed collector'' and inserting ``licensed collector, or special 
firearms event licensee''.
    (d) 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:

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

SEC. 4. STATE OPTION FOR 24-HOUR BACKGROUND CHECKS AT SPECIAL FIREARMS 
              EVENTS FOR STATES WITH COMPUTERIZED DISQUALIFYING 
              RECORDS.

    (a) 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.
    (b) Certification.--The Attorney General shall certify a State for 
24-hour verification authority only upon a clear showing by the State, 
and certification by the Bureau of Justice Statistics, that--
            (1) 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);
            (2) not less than 95 percent of all records containing 
        information that would disqualify an individual under 
        paragraphs (8) and (9) of subsection 922(g) 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 Protection Act (18 
        U.S.C. 922 note); and
            (3) the chief judicial officer of the State requires the 
        courts of the State to use the toll-free telephone number 
        described in subsection (d)(1) to immediately notify the 
        National Instant Criminal Background Check System each time a 
        restraining order (as described in section 922(g)(8) of title 
        18, United States Code) is issued, lifted, or otherwise removed 
        by order of the court.
    (c) Clarifications.--
            (1) Disqualifying information.--Disqualifying information 
        for each State under subsection (b) shall include the 
        disqualifying records for that State generated during the 30 
        years preceding the date of application to the Attorney General 
        for certification.
            (2) Toll-free telephone number.--Upon a showing by the 
        State that a court of the State has developed computer systems 
        which permit the court to immediately electronically notify the 
        National Instant Criminal Background Check System with respect 
        to the issuance or lifting of restraining orders, the use of 
        the toll-free telephone number described in subsection (d)(1) 
        shall no longer be required under subsection (b)(3).
    (d) Notification Infrastructure.--Before certifying any State under 
subsection (b), the Attorney General shall--
            (1) create a toll-free telephone number through which State 
        and local courts may immediately notify the National Instant 
        Background Check System whenever a restraining order (as 
        described in section 922(g)(8) of title 18, United States Code) 
        is issued, lifted, or otherwise removed by order of the court; 
        and
            (2) encourage States to develop computer systems that 
        permit courts to immediately electronically notify the National 
        Instant Criminal Background Check System whenever a restraining 
        order (as described in section 922(g)(8) of title 18, United 
        States Code) has been issued, lifted, or otherwise removed by 
        order of the court.
    (e) 24-Hour Provision.--Upon certification by the Attorney General, 
the 24-hour provision in section 932(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.
    (f) Annual Review.--The Director of the Bureau of Justice 
Statistics shall annually review the certifications under this section.
    (g) Revocation.--The Attorney General shall revoke the 
certification required under this section for any State that is not in 
compliance with subsection (b).

SEC. 5. 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. 6. 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. 7. INCREASED PENALTIES FOR VIOLATIONS OF CRIMINAL BACKGROUND CHECK 
              REQUIREMENTS.

    Section 924(a) of title 18, United States Code, as amended by 
section 3(b), is further 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:
    ``(9) Whoever knowingly violates section 922(t) shall be fined 
under this title, imprisoned not more than 5 years, or both.''.

SEC. 8. RULE OF INTERPRETATION.

    A provision of State law is not inconsistent with this Act or an 
amendment made by this Act 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 Act or an amendment made by this 
Act.

SEC. 9. EFFECTIVE DATE.

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