[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4900 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 4900

  To reform the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
  modernize firearms laws and regulations, protect the community from 
                   criminals, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 19, 2007

 Mr. King of Iowa (for himself and Mr. Space) introduced the following 
  bill; which was referred to the Committee on the Judiciary, and in 
    addition to the Committee on Ways and Means, 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 reform the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
  modernize firearms laws and regulations, protect the community from 
                   criminals, 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 ``Bureau of Alcohol, Tobacco, 
Firearms, and Explosives Reform and Firearms Modernization Act of 
2007''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
     TITLE I--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES 
                        MODERNIZATION AND REFORM

Sec. 101. Graduated penalties for civil violations by Federal firearms 
                            licensees.
Sec. 102. Consideration of Federal firearms license applications.
Sec. 103. Definition of willfully.
Sec. 104. Establishment of formal inspection, examination, and 
                            investigative guidelines.
Sec. 105. Limitations on use of firearms purchaser information.
Sec. 106. Liquidation of inventory in Federal firearms license 
                            expiration, surrender, or revocation cases.
Sec. 107. Opportunity to cure violations after acquisition of firearms 
                            business.
Sec. 108. Standards for criminal violations of recordkeeping 
                            requirements.
Sec. 109. Authority to collect information on explosives stored under 
                            State law; regulations governing storage of 
                            explosives made applicable to storage of 
                            explosives by agencies operating under 
                            State law.
Sec. 110. Effective date.
            TITLE II--FIREARMS CORRECTIONS AND IMPROVEMENTS

Sec. 201. Correction of nonsubstantive error in age limit provision.
Sec. 202. Possession and transfer of machineguns for industry testing 
                            and security contracting.
Sec. 203. Elimination of obsolete language added by the Brady Handgun 
                            Violence Prevention Act.
Sec. 204. Ban on tax or fee for background check by the national 
                            instant criminal background check system.
Sec. 205. Elimination of written permission requirement for supervised 
                            handgun use.
Sec. 206. Modification of procedures for sharing of multiple handgun 
                            sales reports.
Sec. 207. Ban on electronic retrieval of inactive licensee information.
Sec. 208. Trace disclosure.
Sec. 209. Barrel and receiver importation.
Sec. 210. Clarifications relating to manufacturing of firearms.
            TITLE III--CRIMINAL GUN ENFORCEMENT IMPROVEMENTS

Sec. 301. Possession of firearms by dangerous felons.

     TITLE I--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES 
                        MODERNIZATION AND REFORM

SEC. 101. GRADUATED PENALTIES FOR CIVIL VIOLATIONS BY FEDERAL FIREARMS 
              LICENSEES.

    (a) In General.--Section 923 of title 18, United States Code, is 
amended by striking subsections (e) and (f) and inserting the 
following:
    ``(e)(1)(A) If the Attorney General determines that a licensee 
under this section has willfully violated any provision of this chapter 
or any regulation prescribed under this chapter, the Attorney General 
may--
            ``(i) if the violation is of a minor nature--
                    ``(I) impose on the licensee a civil money penalty 
                of not more than $1,000 for each such violation, except 
                that the total amount of penalties imposed on a 
                licensee under this subclause for violations arising 
                from a single inspection or examination shall not 
                exceed $5,000; or
                    ``(II) suspend the license for not more than 30 
                days, and specify the circumstances under which the 
                suspension is to be terminated, if, in the period for 
                which the license is in effect, there have been at 
                least 2 prior occasions on which the licensee has been 
                determined to have violated this chapter; or
            ``(ii) if the violation is of a serious nature--
                    ``(I) impose on the licensee a civil money penalty 
                of not more than $2,500 for each such violation, except 
                that the total amount of penalties imposed on a 
                licensee under this subclause for a violation arising 
                from a single inspection or examination shall not 
                exceed $15,000;
                    ``(II) suspend the license for not more than 90 
                days, and specify the circumstances under which the 
                suspension is to be terminated;
                    ``(III) revoke the license; or
                    ``(IV) take the actions described in subclauses (I) 
                and (II), or subclauses (I) and (III).
    ``(B)(i)(I) In determining the amount of a civil money penalty to 
impose under subparagraph (A) on a licensee, the nature and severity of 
the violation involved, the size of the firearms business operated by 
the licensee, and the prior record of the licensee shall be considered.
    ``(II) On request of the licensee, the Attorney General may 
consider the ability of the licensee to pay a civil money penalty, and 
may allow the licensee to submit documents and information to establish 
the ability of the licensee to pay. The Attorney General shall not make 
part of any public record any document or information so submitted, and 
shall return to the licensee any such document or information.
    ``(III) The total amount of penalties imposed on a licensee under 
subparagraph (A) with respect to violations of a minor nature and of a 
serious nature arising from a single inspection or examination shall 
not exceed $15,000.
    ``(ii) For purposes of subparagraph (A), violation of a provision 
of this chapter with respect to 2 or more firearms during a single 
transaction shall be considered a single violation of the provision.
    ``(iii) The Attorney General may defer, or suspend, in whole or in 
part, the imposition of a civil money penalty on a licensee whose 
license is suspended under this paragraph.
    ``(C) For purposes of subparagraph (A):
            ``(i) A violation of this chapter shall be considered to be 
        of a serious nature if the violation--
                    ``(I) results in or could have resulted in the 
                transfer of a firearm or ammunition to a person 
                prohibited from possessing or receiving the firearm or 
                ammunition under this chapter or under State or local 
                law;
                    ``(II) obstructs or could have obstructed  a  bona 
                fide criminal investigation or prosecution, or an 
                inspection or examination under this chapter; or
                    ``(III) prevents or could have prevented a licensee 
                from complying with subsection (a)(7), (a)(8), (b)(1), 
                (b)(3), (b)(4), (j), (k), (o), or (p) of section 922, 
                subsection (g)(7) of this section, or subsection (b) or 
                (h) of section 924.
            ``(ii) A violation of this chapter shall be considered to 
        be of a minor nature if the violation is not of a serious 
        nature.
    ``(D) The Attorney General may not commence an enforcement action 
under subparagraph (A) with respect to a violation, after the 5-year 
period that begins with--
            ``(i) the date the violation occurred; or
            ``(ii) if the licensee intentionally obstructed discovery 
        of the violation, the date the violation is discovered.
    ``(2)(A) Not less than 30 days before the effective date of any 
penalty imposed on a licensee by reason of a determination made under 
paragraph (1), the Attorney General shall send the licensee a written 
notice--
            ``(i) of the determination, and the grounds on which the 
        determination was made;
            ``(ii) of the nature of the penalty; and
            ``(iii) that the licensee may, within 30 days after receipt 
        of the notice, request a hearing to review the determination.
    ``(B) A hearing to review a determination made under paragraph (1) 
with respect to a licensee shall not be held unless the licensee 
requests such a hearing within 30 days after receiving the notice of 
the determination sent pursuant to subparagraph (A).
    ``(C) On timely receipt from the licensee of a request for such a 
review, the Attorney General shall stay the imposition under paragraph 
(1) of any penalty involved, pending resolution of the review, unless, 
in the case of a suspension or revocation of a licensee, the Attorney 
General establishes, at a hearing before an administrative law judge, 
by clear and convincing evidence, that the continued operation by the 
licensee of the business poses an immediate and grave threat to public 
safety.
    ``(3)(A) Within 90 days after timely receipt from a licensee of a 
request to review a determination made under paragraph (1) (or at such 
later time as is agreed to by the Attorney General and the licensee), 
an administrative law judge shall hold a hearing, at a location 
convenient to the licensee, to review the determination.
    ``(B) Not less than 30 days before the hearing, the Attorney 
General shall deliver to the licensee--
            ``(i) a document identifying each person whom the Attorney 
        General intends to call as a witness during the hearing;
            ``(ii) a copy of each document which will be introduced as 
        evidence at the hearing; and
            ``(iii) copies of all documents on which the determination 
        is based.
    ``(C) Within 90 days after the hearing, the administrative law 
judge shall issue a written decision setting forth findings of fact and 
conclusions of law, and a decision as to whether to affirm, modify, or 
reverse the determination.
    ``(D) On request of the licensee, the Attorney General shall stay 
the effective date of any penalty, suspension, or revocation until 
there has been a final, nonreviewable judgment with respect to the 
determination involved, unless, in the case of a suspension or 
revocation of a licensee, the Attorney General establishes, at a 
hearing before an administrative law judge, by clear and convincing 
evidence, that the continued operation by the licensee of the business 
poses an immediate and grave threat to public safety.
    ``(E) The action of an administrative law judge under this 
subsection shall be considered final agency action for all purposes, 
and may be reviewed only as provided in subsection (f).
    ``(4) This subsection shall not be interpreted to affect the 
authority of the Attorney General under section 922(t)(5).
    ``(f)(1) Within 60 days after a party receives a notice issued 
under subsection (d)(3) of a decision to deny a license, or a notice 
issued under subsection (e)(3)(C) of a determination to impose a civil 
money penalty or to suspend or revoke a license, the party may file a 
petition with the United States district court for the district in 
which the party resides or has a principal place of business for a de 
novo review of the decision or determination.
    ``(2) In a proceeding conducted under this paragraph, the court 
shall, on application of a party, consider any evidence submitted by 
the parties to the proceeding whether or not the evidence was 
considered at the hearing held under subsection (d)(3) or (e)(3).
    ``(3) If the court decides that the decision or determination was 
not authorized, the court shall order the Attorney General to take such 
action as may be necessary to comply with the judgment of the court.
    ``(4) If criminal proceedings are instituted against a licensee 
alleging any violation of this chapter or of a regulation prescribed 
under this chapter, and the licensee is acquitted of the charges, or 
the proceedings are terminated, other than upon motion of the 
Government before trial on the charges, the Attorney General shall be 
absolutely barred from denying a license under this chapter, suspending 
or revoking a license granted under this chapter, or imposing a civil 
money penalty under subsection (e), if the action would be based in 
whole or in part on the facts which form the basis of the criminal 
charges. The Attorney General may not institute a proceeding to suspend 
or revoke a license granted under this chapter, or to impose a civil 
money penalty under subsection (e), more than 1 year after the filing 
of the indictment or information.''.
    (b) Conforming Amendment to Procedure Applicable to Denial of 
Application for License.--Section 923(d) of such title is amended by 
adding at the end the following:
    ``(3) If the Attorney General denies an application for a license, 
an administrative law judge of the Department of Justice shall, on 
request by the aggrieved party, promptly hold a hearing to review the 
denial, at a location convenient to the aggrieved party. If, after the 
hearing, the administrative law judge decides not to reverse the 
denial, the administrative law judge shall give notice of the final 
denial decision to the aggrieved party.''.

SEC. 102. CONSIDERATION OF FEDERAL FIREARMS LICENSE APPLICATIONS.

    (a) In General.--Section 923(d) of title 18, United States Code, as 
amended by section 101(b) of this Act, is amended by redesignating 
paragraphs (2) and (3) as paragraphs (3) and (4) and inserting after 
paragraph (1) the following:
    ``(2) The Attorney General shall make a preliminary determination 
as to whether to approve or deny an application submitted under 
subsection (a) or (b). If the preliminary determination is to deny the 
application, the Attorney General shall notify the applicant in writing 
of the preliminary determination and the reasons for the preliminary 
determination, and shall afford the applicant an opportunity to 
supplement the application with additional information and to request a 
hearing on the application. If the applicant, in a timely manner, 
requests such a hearing, the Attorney General shall hold the hearing at 
a location convenient to the applicant, and shall notify the applicant 
in writing of the time and place of the hearing.''.
    (b) Conforming Amendment.--Section 923(f) of such title, as amended 
by section 2(a) of this Act, is amended by striking ``(d)(3)'' each 
place it appears and inserting ``(d)(4)''.

SEC. 103. DEFINITION OF WILLFULLY.

    Section 923(e) of title 18, United States Code, as amended by 
section 101(a) of this Act, is amended by adding at the end the 
following:
    ``(5) For purposes of this subsection, the term `willfully' means, 
with respect to conduct of a person, that the person knew of a legal 
duty, and engaged in the conduct knowingly and in intentional disregard 
of the duty.''.

SEC. 104. ESTABLISHMENT OF FORMAL INSPECTION, EXAMINATION, AND 
              INVESTIGATIVE GUIDELINES.

    The Attorney General shall establish guidelines for how the Bureau 
of Alcohol, Tobacco, Firearms, and Explosives is to conduct 
inspections, examinations, or investigations of possible violations of 
chapters 40 and 44 of title 18, United States Code.

SEC. 105. LIMITATIONS ON USE OF FIREARMS PURCHASER INFORMATION.

    Section 923(g)(1)(D) of title 18, United States Code, is amended in 
the last sentence by inserting ``, except that information identifying 
a person who has purchased or received firearms or ammunition and who 
is not prohibited from doing so may not be so made available or so 
provided unless the agency involved has certified that the agency will 
not disclose the information to any entity other than a court, federal, 
State or local law enforcement agency, or prosecutor'' before the 
period.

SEC. 106. LIQUIDATION OF INVENTORY IN FEDERAL FIREARMS LICENSE 
              EXPIRATION, SURRENDER, OR REVOCATION CASES.

    Section 923 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(m)(1) Except as provided in paragraph (2), a person whose 
license issued under this chapter is expired, surrendered, or revoked 
shall be afforded 60 days from the effective date of the expiration, 
surrender, or revocation to liquidate the firearms inventory of the 
person, which time may be extended upon a showing of reasonable cause. 
During such 60-day period (including any extension of the period), the 
license involved shall continue to be considered valid.
    ``(2) Paragraph (1) shall not apply with respect to a person if a 
United States District Court for the judicial district in which the 
person resides or in which the principal place of business of the 
person subject to the license is located finds, by clear and convincing 
evidence, that the continued operation by the person of the business 
poses an immediate and grave threat to public safety.''.

SEC. 107. OPPORTUNITY TO CURE VIOLATIONS AFTER ACQUISITION OF FIREARMS 
              BUSINESS.

    Section 923 of title 18, United States Code, is further amended by 
adding at the end the following:
    ``(n) If the Attorney General is made aware that a business 
licensed under this chapter has transferred to a surviving spouse or 
child of the licensee, to an executor, administrator, or other legal 
representative of a deceased licensee; or to a receiver or trustee in 
bankruptcy, or an assignee for benefit of creditors, and, before the 
transfer, or on the first inspection or examination by the Attorney 
General of the records of the licensee after the transfer, the licensee 
is found to be operating the business in violation of this chapter, the 
Attorney General--
            ``(1) shall notify the transferee of the violation by the 
        transferor; and
            ``(2) shall not presume that the transferee is committing 
        the violation.''.

SEC. 108. STANDARDS FOR CRIMINAL VIOLATIONS OF RECORDKEEPING 
              REQUIREMENTS.

    Section 922(m) of title 18, United States Code, is amended--
            (1) by striking ``any false entry'' and inserting ``a 
        materially false entry'';
            (2) by striking ``appropriate entry'' and inserting ``a 
        materially significant entry''; and
            (3) by striking ``properly maintain'' and inserting 
        ``retain custody of''.

SEC. 109. AUTHORITY TO COLLECT INFORMATION ON EXPLOSIVES STORED UNDER 
              STATE LAW; REGULATIONS GOVERNING STORAGE OF EXPLOSIVES 
              MADE APPLICABLE TO STORAGE OF EXPLOSIVES BY AGENCIES 
              OPERATING UNDER STATE LAW.

    (a) Authority To Collect Information on Explosives Stored Under 
State Law.--
            (1) In general.--Section 846 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(c) Each agency operating under the law of any State or political 
subdivision thereof that stores or keeps explosive materials shall 
submit to the Attorney General, at such time as the Attorney General 
shall prescribe in regulations, a written report that specifies each 
location at which the agency stores or keeps explosive materials that 
have been shipped or transported in interstate or foreign commerce, and 
the types and amounts of such explosive materials that are stored or 
kept at the location.''.
            (2) Regulations.--Within 6 months after the date of the 
        enactment of this section, the Attorney General shall prescribe 
        the regulations referred to in section 846(c) of title 18, 
        United States Code.
    (b) Regulations Governing Storage of Explosives Made Applicable to 
Storage of Explosives by Agencies Operating Under State Law.--Subpart K 
of part 555 of subchapter C of chapter II of title 27, Code of Federal 
Regulations, shall apply with respect to the storage by agencies 
operating under the law of any State or political subdivision thereof 
of explosive materials that have been shipped or transported in 
interstate or foreign commerce.

SEC. 110. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
at the end of the 180-day period that begins with the date of the 
enactment of this Act.

            TITLE II--FIREARMS CORRECTIONS AND IMPROVEMENTS

SEC. 201. CORRECTION OF NONSUBSTANTIVE ERROR IN AGE LIMIT PROVISION.

    Section 922(b)(1) of title 18, United States Code, is amended to 
read as follows:
            ``(1) any firearm or ammunition to any individual who the 
        licensee knows or has reasonable cause to believe has not 
        attained 18 years of age, and, if the firearm is other than a 
        shotgun or rifle, or the ammunition is for a firearm other than 
        a shotgun or rifle, to any individual who the licensee knows or 
        has reasonable cause to believe has not attained 21 years of 
        age;''.

SEC. 202. POSSESSION AND TRANSFER OF MACHINEGUNS FOR INDUSTRY TESTING 
              AND SECURITY CONTRACTING.

    (a) Machineguns for Federal Contractors.--Section 922(a)(4) of 
title 18, United States Code, is amended by striking ``except'' and all 
that follows and inserting ``except--
                    ``(A) as specifically authorized by the Attorney 
                General consistent with public safety and necessity; or
                    ``(B) to comply with a contract between any person 
                and the United States which requires that person to 
                provide national security services for the United 
                States or any training related to such services;''.
    (b) Sale or Delivery of Machineguns to Federal Contractors.--
Section 922(b) of such title is amended by adding at the end the 
following: ``Paragraphs (2) and (4) of this subsection shall not apply 
to a sale or delivery to comply with a contract between any person and 
the United States which requires that person to provide national 
security services for the United States or any training related to the 
services.''.
    (c) Post-86 Machineguns for Testing, Research and Development, 
Training, and Security.--Section 922(o) of such title is amended--
            (1) in paragraph (2)--
                    (A) by striking ``or'' at the end of subparagraph 
                (A); and
                    (B) by redesignating subparagraph (B) as 
                subparagraph (F) and inserting after subparagraph (A) 
                the following:
            ``(B) a transfer to, or possession by, a person to comply 
        with a contract between that person and the United States which 
        requires the person to provide national security services for 
        the United States or any training related to the services;
            ``(C) a transfer to, or possession by, a licensed 
        manufacturer or licensed importer solely for testing, research, 
        design, or development of ammunition or a firearm;
            ``(D) a possession by a licensed manufacturer or licensed 
        importer for the purposes of training persons to whom a 
        machinegun, manufactured or imported by the licensee, may be 
        transferred as described in subparagraph (A) or (B);
            ``(E) a transfer to or possession by a licensed 
        manufacturer, licensed importer, or licensed dealer for a 
        professional theatrical purpose if the licensee--
                    ``(i) is registered under section 5802 of the 
                National Firearms Act;
                    ``(ii) holds a valid permit or license under State 
                law to engage in business as a theatrical firearms 
                dealer or equivalent statutory designation;
                    ``(iii) derives not less than 80 percent of income 
                from the firearms business from the use of firearms by 
                professional motion picture or television productions 
                that are distributed to or produced for a national or 
                international audience;
                    ``(iv) before possessing a machinegun under this 
                subparagraph, provides the Attorney General with 
                documentation that--
                            ``(I) the licensee meets the requirements 
                        of clauses (i) through (iii); and
                            ``(II) the transfer or possession, as the 
                        case may be, is for such purpose; and
                    ``(v) establishes that the number of machineguns 
                sought by the licensee is reasonable for the film, 
                production, or performance for which the machineguns 
                are requested; or''; and
            (2) by adding at the end the following:
    ``(3) A person who receives, possesses, transports, imports, or 
uses a weapon, ammunition, or a device under subsection (b) of this 
section, shall be subject to a background check every 3 years by the 
Attorney General, based on fingerprints and including a background 
check under section 103(b) of the Brady Handgun Violence Protection Act 
(Public Law 103-159; 18 U.S.C. 922 note) to determine whether the 
person is prohibited from possessing or receiving a firearm under 
Federal or State law. Any person who receives, possesses, transports, 
imports, or uses a weapon, ammunition or a device under subsection (b) 
of this section shall be subject to subsections (g) and (n) of this 
section.''.
    (d) Importation of Machineguns.--Section 925(d) of such title is 
amended--
            (1) in paragraph (3), by striking ``or'' at the end;
            (2) in paragraph (4), by striking the period and inserting 
        a semicolon; and
            (3) by inserting after paragraph (4) the following:
            ``(5) is imported or brought in for a purpose described in 
        section 922(o)(2); or
            ``(6) a machinegun being imported or brought in for a 
        purpose described in section 922(o)(2)(E).''.
    (e) Importation Under the National Firearms Act.--Section 5844 of 
the National Firearms Act (26 U.S.C. 5844) is amended--
            (1) by striking ``or'' at the end of paragraph (2); and
            (2) by inserting after paragraph (3) the following:
            ``(4) a machinegun being imported or brought in to comply 
        with a contract between any person and the United States which 
        requires the person to provide national security services for 
        the United States or any training related to the services;
            ``(5) a machinegun being imported or brought in by a 
        registered importer or registered manufacturer for the purpose 
        of training persons who acquire machineguns pursuant to 
        paragraph (1) that were manufactured or imported by the 
        registrant; or
            ``(6) a machinegun being imported or brought in for a 
        purpose described in section 922(o)(2)(E) of title 18, United 
        States Code;''.
    (f) National Security Services Defined.--Section 921(a) of such 
title is amended by adding at the end the following:
    ``(36) The term `national security services' means any protective, 
defensive, or security services provided pursuant to a contract with a 
department or agency of the United States.
    ``(37) The term `professional theatrical purpose' means the use of 
firearms in a motion picture or television production which is expected 
to be produced, distributed, marketed, or shown by a member of a 
nationally recognized professional trade association related primarily 
to motion picture and television production, as determined by the 
Attorney General.''.
    (g) Effective Date.--The amendments made by this section shall take 
effect after the 180-day period that begins with the date of the 
enactment of this Act.

SEC. 203. ELIMINATION OF OBSOLETE LANGUAGE ADDED BY THE BRADY HANDGUN 
              VIOLENCE PREVENTION ACT.

    Section 922 of title 18, United States Code, is amended--
            (1) by striking subsection (s); and
            (2) in subsection (t)(1), by striking ``Beginning'' and all 
        that follows through ``a licensed'' and inserting ``A 
        licensed''.

SEC. 204. BAN ON TAX OR FEE FOR BACKGROUND CHECK BY THE NATIONAL 
              INSTANT CRIMINAL BACKGROUND CHECK SYSTEM.

    Section 922(t) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(7) The Attorney General shall not charge any tax or fee for any 
background check conducted pursuant to this subsection.''.

SEC. 205. ELIMINATION OF WRITTEN PERMISSION REQUIREMENT FOR SUPERVISED 
              HANDGUN USE.

    Section 922(x)(3)(A) of title 18, United States Code, is amended--
            (1) in clause (ii), by striking subclause (II) and 
        inserting the following:
                            ``(II) with respect to ranching or farming 
                        activities, target practice, hunting, or a 
                        course of instruction in the safe and lawful 
                        use of a handgun, as described in clause (i), a 
                        juvenile may possess and use a handgun or 
                        ammunition without the prior written consent, 
                        if the parent or legal guardian is present at 
                        all times and the juvenile acts at the 
                        direction of a parent, legal guardian, or other 
                        adult who is not prohibited by Federal, State, 
                        or local law from possessing a firearm;''; and
            (2) in clause (iii), by inserting ``except as provided in 
        clause (ii)(II),'' after ``(iii)''.

SEC. 206. MODIFICATION OF PROCEDURES FOR SHARING OF MULTIPLE HANDGUN 
              SALES REPORTS.

    Section 923(g)(3)(A) of title 18, United States Code, is amended--
            (1) by striking ``and to the department of State police'' 
        and all that follows through ``took place''; and
            (2) by adding at the end the following: ``On request by a 
        State or local law enforcement agency of the jurisdiction in 
        which the sale or other disposition took place, the Attorney 
        General may provide the report to the agency, unless the agency 
        failed to make the certification required by subparagraph (B) 
        for the most recent 6-month period for which the certification 
        is so required.''.

SEC. 207. BAN ON ELECTRONIC RETRIEVAL OF INACTIVE LICENSEE INFORMATION.

    Subsection 923(g)(4) of title 18, United States Code, is amended by 
adding at the end the following: ``The Attorney General shall not 
electronically retrieve information gathered pursuant to this paragraph 
by name or by any personal identification code.''.

SEC. 208. TRACE DISCLOSURE.

    (a) In General.--Section 923(g) of title 18, United States Code, is 
amended by adding at the end the following:
    ``(8)(A) Notwithstanding any other provision of law, information 
required to be kept by licensees pursuant to this subsection, or 
required to be reported pursuant to paragraphs (3) and (7) of this 
subsection, and information in the firearms trace system database 
maintained by the National Trace Center of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives, including all information received 
or generated by the Bureau in connection with a request to trace a 
firearm--
            ``(i) shall not be disclosed by the Attorney General to any 
        entity, except--
                    ``(I) to an official of a Federal, State, local, or 
                foreign law enforcement agency, or a Federal, State, or 
                local prosecutor, solely in connection with bona fide 
                criminal investigative purposes or prosecutions, not to 
                be used or disclosed for any other purpose;
                    ``(II) to a Federal official for national security, 
                intelligence, or counterterrorism purposes, and not to 
                be used or disclosed for any other purpose;
                    ``(III) for use in an action or proceeding 
                commenced by the Attorney General to enforce this 
                chapter, the National Firearms Act, or chapter 3 of the 
                Arms Export Control Act, or a review of such an action 
                or proceeding; or
                    ``(IV) for use in an action or proceeding commenced 
                by the Secretary of the Treasury to enforce part III of 
                subchapter D of chapter 32 of the Internal Revenue Code 
                of 1986, or a review of such an action or proceeding; 
                and
            ``(ii) shall not be disclosed to any Federal, State, local, 
        or foreign law enforcement agency, or a Federal, State, or 
        local prosecutor, except in connection with bona fide criminal 
        investigative purposes or prosecutions.
        Nothing in this paragraph shall be construed to prevent the 
        sharing or exchanging of the information among and between 
        Federal, State, local, or foreign law enforcement agencies and 
        Federal, State, or local prosecutors solely in connection with 
        bona fide criminal investigative purposes or prosecutions, or 
        among and between national security, intelligence, or 
        counterterrorism officials solely in connection with national 
        security, intelligence, or counterterrorism purposes.
    ``(B) Information in the firearms trace system database maintained 
by the National Trace Center of the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, including all information received or 
generated by the Bureau in connection with a request to trace a 
firearm, shall be immune from legal process, shall not be subject to 
subpoena or other discovery, shall not be used, relied on, or disclosed 
in any manner, and shall not be admissible as evidence, nor shall 
testimony or other evidence based on the information be admissible as 
evidence, in any civil action pending on or filed after the effective 
date of this subparagraph in any State or Federal court, or in any 
administrative proceeding other than a proceeding commenced by the 
Bureau to enforce this chapter, the National Firearms Act, or chapter 3 
of the Arms Export Control Act, or a review of such an action or 
proceeding.
    ``(C) This paragraph shall not be construed to prevent the 
disclosure of statistical information concerning total production, 
importation, and exportation by each licensed importer and licensed 
manufacturer.''.
    (b) Exemption of Law Enforcement Officers From Criminal 
Penalties.--
            (1) In general.--Section 925(a) of such title is amended by 
        adding at the end the following:
    ``(6) Section 924(a)(1)(D) shall not apply to the violation of 
section 923(g)(8) by an official of any Federal, State, or local law 
enforcement agency.''.
            (2) Conforming amendment.--Section 924(a)(1) of such title 
        is amended by striking ``in section 929'' and inserting 
        ``section 925(a)(6) or 929''.

SEC. 209. BARREL AND RECEIVER IMPORTATION.

    (a) In General.--Section 925(e) of title 18, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``, and'' and inserting a 
        period;
            (2) by adding at the end the following:
            ``(3) All frames or receivers of rifles, or barrels for 
        firearms other than handguns, if the importation is for repair 
        or replacement purposes.''.
    (b) Governmental Imports.--Section 925(a)(1) of such title is 
amended by inserting ``, barrel,'' after ``or importation of any 
firearm''.

SEC. 210. CLARIFICATIONS RELATING TO MANUFACTURING OF FIREARMS.

    (a) Clarification of Definition of Manufacturing.--Section 
921(a)(10) of title 18, United States Code, is amended by adding at the 
end the following: ``The term `manufacturing' shall not include 
repairing firearms, making or fitting special barrels, stocks, trigger 
mechanisms, or other parts to firearms, or engraving or otherwise 
altering the appearance of firearms.''.
    (b) Clarification of Definition of Dealer.--Section 921(a)(11)(B) 
of title 18, United States Code, is amended by striking ``or trigger 
mechanisms to firearms'' and inserting ``trigger mechanisms, or other 
parts to firearms, or engraving or otherwise altering the appearance of 
firearms''.

            TITLE III--CRIMINAL GUN ENFORCEMENT IMPROVEMENTS

SEC. 301. POSSESSION OF FIREARMS BY DANGEROUS FELONS.

    (a) In General.--Section 924(e) of title 18, United States Code, is 
amended by striking all that precedes paragraph (2) and inserting the 
following:
    ``(e)(1) In the case of a person who violates section 922(g) and 
has previously been convicted by any court referred to in section 
922(g)(1) of a violent felony or a serious drug offense shall--
            ``(A) in the case of 1 such prior conviction, if more than 
        10 years has elapsed since the later of the date of the 
        conviction or the date of the release of the person from 
        imprisonment for the conviction, be imprisoned for not more 
        than 15 years, fined under this title, or both;
            ``(B) in the case of 2 such prior convictions for 
        violations committed on occasions different from one another, 
        if not more than 10 years has elapsed since the later of the 
        date of the most recent such conviction and the date of the 
        release of the person from imprisonment for the most recent 
        such conviction, be imprisoned for not more than 20 years, 
        fined under this title, or both; and
            ``(C) in the case of 3 such prior convictions for 
        violations committed on occasions different from one another, 
        if not more than 10 years has elapsed since the later date of 
        the most recent such conviction or the date of the release of 
        the person from imprisonment for the most recent such 
        conviction, be imprisoned for any term of years not less than 
        15 years or for life and fined under this title, and 
        notwithstanding any other provision of law, the court shall not 
        suspend the sentence of, or grant a probationary sentence to, 
        such person with respect to the conviction under section 
        922(g).'.''.
    (b) Amendment to Sentencing Guidelines.--Pursuant to its authority 
under section 994(p) of title 28, United States Code, the United States 
Sentencing Commission shall amend the Federal Sentencing Guidelines to 
provide for an appropriate increase in the offense level for violations 
of section 922(g) of title 18, United States Code, in accordance with 
section 924(e) of such title, as amended by subsection (a) of this 
section.
                                 <all>