<enum>I</enum><header>Bureau of Alcohol, Tobacco, Firearms, and Explosives Modernization and Reform</header> <section id="H502516A3647A43E88E5F4800007400CE"><enum>101.</enum><header>Graduated penalties for civil violations by Federal firearms licensees</header> <subsection id="H586079FD1F8849C09238BADA8B8E5E03"><enum>(a)</enum><header>In general</header><text>Section 923 of title 18, United States Code, is amended by striking subsections (e) and (f) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD7D1A866FF274E41A50025481F005791" style="OLC"> <subsection id="HE1493E137C7F466194BBDDD08BA17E2B"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H473085569AE54B00B7322EE9FD7EF1F4"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAA8A8D9F707548AAB0878D545B9600EE"><enum>(A)</enum><text display-inline="yes-display-inline">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—</text> <clause id="H08695FF5F5684304AE52BB74BA614241" indent="up2"><enum>(i)</enum><text>if the violation is of a minor nature—</text> <subclause id="id651BE886A30C4C289A504CA211D2E03D"><enum>(I)</enum><text>for a first such violation, issue a written warning to the licensee; and</text> </subclause><subclause id="idB8888C03F10F450AB466B2FF6F69EDC2"><enum>(II)</enum><text>for a second or subsequent such violation—</text> <item id="H826B6E963F854EF7A5FFAF84AF068249"><enum>(aa)</enum><text>impose on the licensee a civil money penalty of not more than $500 for each such violation, with no interest to accrue on the amount of such a penalty, except that the total amount of penalties imposed on a licensee under this subclause—</text> <subitem id="id752831C726BC49D6ABC076FA88A780E5"><enum>(AA)</enum><text>for violations arising from a single inspection or examination shall not exceed $2,500; and</text> </subitem><subitem id="id56EC80E4D70F421D92A4C49BB8917DE8"><enum>(BB)</enum><text>for a single calendar year shall not exceed $5,000; or</text> </subitem></item><item id="HA1DF050055B645B6BE9D23CCB6F8456"><enum>(bb)</enum><text>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</text> </item></subclause></clause><clause id="H69AC0E7EAA6A41DDA5A88E21068BDB08" indent="up2"><enum>(ii)</enum><text>if the violation is of a serious nature—</text> <subclause id="HE7DA03B39FC14CD5A17D26CEECA5DA"><enum>(I)</enum><text>impose on the licensee a civil money penalty of not more than $1,500 for each such violation, with no interest to accrue on the amount of such a penalty, except that the total amount of penalties imposed on a licensee under this subclause—</text> <item id="idCB9DAE426EEE4A1291AC5F4D901422D4"><enum>(aa)</enum><text>for a violation arising from a single inspection or examination shall not exceed $7,500; and</text> </item><item id="id5A3312F9CAF543AD80CD0E8BA8699D6E"><enum>(bb)</enum><text>for a single calendar year shall not to exceed $15,000;</text> </item></subclause><subclause id="HEA2F1E1E1B66490DB948386F7C6C8F85"><enum>(II)</enum><text>suspend the license for not more than 90 days, and specify the circumstances under which the suspension is to be terminated;</text> </subclause><subclause id="H85206A3967804184A73E51D853CDF4D5"><enum>(III)</enum><text>revoke the license; or</text> </subclause><subclause id="HB3CCFA7E42CF41F6B536598218AB7F00"><enum>(IV)</enum><text>take the actions described in subclauses (I) and (II), or subclauses (I) and (III).</text> </subclause></clause></subparagraph><subparagraph id="HF8D21E2B57B044498443C31C7E5DD772" indent="up2"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD701D70F8C64483782EE07B938FFCD60"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H5E83CC9F89A444B1B1A7D4A15177754D"><enum>(I)</enum><text>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.</text> </subclause><subclause id="HC913D5A8D1484B73B61B4E38843BD677" indent="up2"><enum>(II)</enum><text>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.</text> </subclause><subclause id="HD41D00555BE149609F50E702002B062B" indent="up2"><enum>(III)</enum><text>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 $7,500, and the total of all such penalties for a single calendar year shall not exceed $15,000.</text> </subclause></clause><clause id="HCC2342CAB79C48C4B719269500875F03" indent="up1"><enum>(ii)</enum><text>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.</text> </clause><clause id="H724229CAB4AB42148E6F4DDDE0C0347B" indent="up1"><enum>(iii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="HF3F9FA079DFC460791CE24C62F3C08C1" indent="up2"><enum>(C)</enum><text>For purposes of subparagraph (A):</text> <clause id="H0D45E3EFB36E46C090DD202854E4C38D"><enum>(i)</enum><text>A violation of this chapter shall be considered to be of a serious nature if the violation—</text> <subclause id="HA9A40451971A4C3A972D009CAA2631DA"><enum>(I)</enum><text>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;</text> </subclause><subclause id="H9324FE7D8C3F4A0B8C485BEA8D84005B"><enum>(II)</enum><text>obstructs or could have obstructed a bona fide criminal investigation or prosecution, or an inspection or examination under this chapter; or</text> </subclause><subclause id="HA076414EEF6C4DB88FB0EBF3F8FA0100"><enum>(III)</enum><text>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.</text> </subclause></clause><clause id="H81CCCCBDDF4D4CC6A52D2EF3E0491531"><enum>(ii)</enum><text>A violation of this chapter shall be considered to be of a minor nature if the violation is not of a serious nature.</text> </clause></subparagraph><subparagraph id="H82A1637B99D24849A2E87610B077D3A9" indent="up2"><enum>(D)</enum><text>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—</text> <clause id="H9D5C5069C6C54963AFD085B1E4CA9CC0"><enum>(i)</enum><text>the date the violation occurred; or</text> </clause><clause id="H801E6C37403C499D800024CF3F30B189"><enum>(ii)</enum><text>if the licensee intentionally obstructed discovery of the violation, the date the violation is discovered.</text> </clause></subparagraph></paragraph><paragraph id="H7E1D1DC4464849DD903296EF41B5B21" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H4AAAB97CB1884BD48EDC6E20B6144900"><enum>(A)</enum><text>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—</text> <clause id="H3FC49FC147244F1988E3CA84BEB4C7D0" indent="up1"><enum>(i)</enum><text>of the determination, and the grounds on which the determination was made;</text> </clause><clause id="H0562B12DFE44472BB7FDAE74598EAFF5" indent="up1"><enum>(ii)</enum><text>of the nature of the penalty; and</text> </clause><clause id="H3CE3AA804A6D4D2AAEE7A613F6D9C47B" indent="up1"><enum>(iii)</enum><text>that the licensee may, within 30 days after receipt of the notice, request a hearing to review the determination.</text> </clause></subparagraph><subparagraph id="H60CD35D97C8745ED8F29B323006318D4" indent="up1"><enum>(B)</enum><text>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) of this paragraph.</text> </subparagraph><subparagraph id="H4EE6DDD3DBEB4A1EB5354B9652DBC288" indent="up1"><enum>(C)</enum><text>On timely receipt from the licensee of a request for a review described in subparagraph (B), 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.</text> </subparagraph></paragraph><paragraph id="H40D8405C76214810986E65E715A1FABD" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HCE4D60DC959C42989ECAD5E16DC65E39"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H021C0419E45A408F93951B69D050669B" indent="up1"><enum>(B)</enum><text>Not less than 30 days before a hearing described in subparagraph (A), the Attorney General shall deliver to the licensee—</text> <clause id="H4112B5A133094B9DA937DA020078BCF8"><enum>(i)</enum><text>a document identifying each person whom the Attorney General intends to call as a witness during the hearing;</text> </clause><clause id="H12606CC6E7734BBABB2CEDDFC1B2E7EA"><enum>(ii)</enum><text>a copy of each document which will be introduced as evidence at the hearing; and</text> </clause><clause id="H8E76778CAF1F4FBF95D55555CF69BC09"><enum>(iii)</enum><text>copies of all documents on which the determination is based.</text> </clause></subparagraph><subparagraph id="HC08A1A9FC9EB405383C9877654EB2F43" indent="up1"><enum>(C)</enum><text>Within 90 days after a hearing described in subparagraph (A), 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.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HC3AE79AB66034346BE81A827349DBDFE" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H83B66C1B46464A189FC0F5008BD937D4" indent="up1"><enum>(E)</enum><text>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).</text> </subparagraph></paragraph><paragraph id="HAAC2B4DE6A4B49BE00D5CA48D38890D5" indent="up1"><enum>(4)</enum><text>This subsection shall not be interpreted to affect the authority of the Attorney General under section 922(t)(5).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD267116CCFC5483086C74EECA623D523"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HD39A15AA19E54BDCAFB873E90574472"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H2C6811A0AC374D12AC8736F1517C9F82" indent="up1"><enum>(2)</enum><text>In a proceeding conducted under this subsection, 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).</text> </paragraph><paragraph id="H65A73F0ACBE247AEACBE093D0FABC5" indent="up1"><enum>(3)</enum><text>If the court determines that the licensee did not willfully violate 1 or more provisions of this chapter or 1 or more regulations prescribed under this chapter, the court shall—</text> <subparagraph id="id1B5AD916697F40128E456A69DDF50764"><enum>(A)</enum><text>vacate the revocation, suspension, or fine, and remand the matter to the Attorney General for further consideration; and</text> </subparagraph><subparagraph id="id69BE8E705CFE4211B90F6B59D9BCCC80"><enum>(B)</enum><text>award to the licensee a reasonable attorney’s fee with respect to any part of the decision or determination on which the licensee prevails.</text> </subparagraph></paragraph><paragraph id="H7E56E587FC314D85AC7244A8E9AC4B7C" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H68434E3BEC1141ADB010C399CC00C6D2"><enum>(b)</enum><header>Conforming amendment to procedure applicable to denial of application for license</header><text>Section 923(d) of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H91D8D45F9FB04719A1C5A9731369F07C" style="OLC"> <paragraph id="H1D1456FFB0B74F28B72C4E941F5652FB" indent="up1"><enum>(3)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H1F44538B14594577994B41D8F7381CF"><enum>102.</enum><header>Consideration of Federal firearms license applications</header> <subsection id="H68954DC0C50049CC96D8A51E005BADBD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 923(d) of title 18, United States Code, as amended by section 101(b) of this Act, is amended—</text> <paragraph id="id7841F9D9BC2A4E0393FE0A9C98B527D4"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text> </paragraph><paragraph id="idDCD896C117B740188581FA5EAD64A857"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H51E81EA9C21E4E02BA76AB534CDC8850" style="OLC"> <paragraph id="HB902F159EA994C2AA90084B0621932FC" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HFB7E15E6471F47B9A14E2C25CCFEFD6"><enum>(b)</enum><header>Conforming amendment</header><text>Section 923(f) of title 18, United States Code, as amended by section 101(a) of this Act, is amended by striking <quote>(d)(3)</quote> each place it appears and inserting <quote>(d)(4)</quote>.</text> </subsection></section><section id="H41FC3EF1EB8246C7A3745B8672878D7B"><enum>103.</enum><header>Definition of willfully</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HADFC43753A274A07AD54E628E91728E8" style="OLC"> <paragraph id="HF64FB2EA4BE341A387642B6D88F1C00" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>willfully</term> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H4208A63432F246AAB9136F2B1BB4DA55"><enum>104.</enum><header>Establishment of formal inspection, examination, and investigative guidelines</header> <subsection id="idC93BA8BBE8E540A0843F359579B6C7CE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="ID17bb38d8ae6b4b34a21d923f829766a1"><enum>(b)</enum><header>Personnel matters</header><text>In no case shall the amount of fines imposed on licensees under chapter 40 or 44 of title 18, United States Code, or the number of warnings issued, or suspensions or revocations of licenses under such chapters, be considered in the retention, promotion, or transfer of any officer, agent, or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.</text> </subsection></section><section id="HB868052B8B0E4EEFB932A87ED8256CA2"><enum>105.</enum><header>Liquidation of inventory in Federal firearms license expiration, surrender, or revocation cases</header><text display-inline="no-display-inline">Section 923 of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF760DA9B707B4A9D8C3DDF1DFA18C1CB" style="OLC"> <subsection id="HABE7F757904B4EEAA8B900A4CB90D7C1"><enum>(m)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H5E76579CD0264EFC9946F527E7515405"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H70C1F6C8E2E2443CA3913496ED58A245" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE3AA4E020B1B4D11A6002659BABC8496"><enum>106.</enum><header>Opportunity to cure violations after acquisition of firearms business</header><text display-inline="no-display-inline">Section 923 of title 18, United States Code, as amended by section 106 of this Act, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA7E301D4B36F457A994C6B57BE533900" style="OLC"> <subsection id="H311E21CA08E842AD88CA8044B4B0E15C"><enum>(n)</enum><text display-inline="yes-display-inline">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—</text> <paragraph id="H1023DFC6D73443E3A87D505904F3358F"><enum>(1)</enum><text>shall notify the transferee of the violation by the transferor; and</text> </paragraph><paragraph id="H03BCBE4B69C04B2A957CD1919DC4B7C"><enum>(2)</enum><text>shall not presume that the transferee is committing the violation.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3889065CB1504471BD089C80C1C5958C"><enum>107.</enum><header>Standards for criminal violations of recordkeeping requirements</header><text display-inline="no-display-inline">Section 922(m) of title 18, United States Code, is amended—</text> <paragraph id="H333591A811F64C44AC6F57E075DFFE7D"><enum>(1)</enum><text>by striking <quote>any false entry</quote> and inserting <quote>a materially false entry</quote>;</text> </paragraph><paragraph id="HFF96F60C001440D3A5FE428F10CAB742"><enum>(2)</enum><text>by striking <quote>appropriate entry</quote> and inserting <quote>a materially significant entry</quote>; and</text> </paragraph><paragraph id="H24EBCEEAE2174690BF2693B6DEDA2D1"><enum>(3)</enum><text>by striking <quote>properly maintain</quote> and inserting <quote>retain custody of</quote>.</text> </paragraph></section><section id="H61E97C861E534B94005273B500B9FF19"><enum>108.</enum><header>Effective date</header><text display-inline="no-display-inline">This title and the amendments made by this title shall take effect 180 days after the date of enactment of this Act.</text> </section>

Short title

This Act may be cited as the

Bureau of Alcohol, Tobacco, Firearms, and Explosives Reform and Firearms Modernization Act of 2009

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. Liquidation of inventory in Federal firearms license expiration, surrender, or revocation cases.

Sec. 106. Opportunity to cure violations after acquisition of firearms business.

Sec. 107. Standards for criminal violations of recordkeeping requirements.

Sec. 108. Effective date.

TITLE II—Firearms Corrections and Improvements

Sec. 201. Correction of nonsubstantive error in age limit provision.

Sec. 202. Possession of machineguns for industry testing, training, and film production.

Sec. 203. Elimination of obsolete language added by the Brady Handgun Violence Prevention Act.

Sec. 204. Elimination of written permission requirement for supervised handgun use.

Sec. 205. Modification of procedures for sharing of multiple handgun sales reports.

Sec. 206. Ban on electronic retrieval of inactive licensee information.

Sec. 207. Barrel and receiver importation.

Sec. 208. Clarifications relating to manufacturing of firearms.

<enum>I</enum><header>Bureau of Alcohol, Tobacco, Firearms, and Explosives Modernization and Reform</header> <section id="H502516A3647A43E88E5F4800007400CE"><enum>101.</enum><header>Graduated penalties for civil violations by Federal firearms licensees</header> <subsection id="H586079FD1F8849C09238BADA8B8E5E03"><enum>(a)</enum><header>In general</header><text>Section 923 of title 18, United States Code, is amended by striking subsections (e) and (f) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HD7D1A866FF274E41A50025481F005791" style="OLC"> <subsection id="HE1493E137C7F466194BBDDD08BA17E2B"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H473085569AE54B00B7322EE9FD7EF1F4"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAA8A8D9F707548AAB0878D545B9600EE"><enum>(A)</enum><text display-inline="yes-display-inline">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—</text> <clause id="H08695FF5F5684304AE52BB74BA614241" indent="up2"><enum>(i)</enum><text>if the violation is of a minor nature—</text> <subclause id="id651BE886A30C4C289A504CA211D2E03D"><enum>(I)</enum><text>for a first such violation, issue a written warning to the licensee; and</text> </subclause><subclause id="idB8888C03F10F450AB466B2FF6F69EDC2"><enum>(II)</enum><text>for a second or subsequent such violation—</text> <item id="H826B6E963F854EF7A5FFAF84AF068249"><enum>(aa)</enum><text>impose on the licensee a civil money penalty of not more than $500 for each such violation, with no interest to accrue on the amount of such a penalty, except that the total amount of penalties imposed on a licensee under this subclause—</text> <subitem id="id752831C726BC49D6ABC076FA88A780E5"><enum>(AA)</enum><text>for violations arising from a single inspection or examination shall not exceed $2,500; and</text> </subitem><subitem id="id56EC80E4D70F421D92A4C49BB8917DE8"><enum>(BB)</enum><text>for a single calendar year shall not exceed $5,000; or</text> </subitem></item><item id="HA1DF050055B645B6BE9D23CCB6F8456"><enum>(bb)</enum><text>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</text> </item></subclause></clause><clause id="H69AC0E7EAA6A41DDA5A88E21068BDB08" indent="up2"><enum>(ii)</enum><text>if the violation is of a serious nature—</text> <subclause id="HE7DA03B39FC14CD5A17D26CEECA5DA"><enum>(I)</enum><text>impose on the licensee a civil money penalty of not more than $1,500 for each such violation, with no interest to accrue on the amount of such a penalty, except that the total amount of penalties imposed on a licensee under this subclause—</text> <item id="idCB9DAE426EEE4A1291AC5F4D901422D4"><enum>(aa)</enum><text>for a violation arising from a single inspection or examination shall not exceed $7,500; and</text> </item><item id="id5A3312F9CAF543AD80CD0E8BA8699D6E"><enum>(bb)</enum><text>for a single calendar year shall not to exceed $15,000;</text> </item></subclause><subclause id="HEA2F1E1E1B66490DB948386F7C6C8F85"><enum>(II)</enum><text>suspend the license for not more than 90 days, and specify the circumstances under which the suspension is to be terminated;</text> </subclause><subclause id="H85206A3967804184A73E51D853CDF4D5"><enum>(III)</enum><text>revoke the license; or</text> </subclause><subclause id="HB3CCFA7E42CF41F6B536598218AB7F00"><enum>(IV)</enum><text>take the actions described in subclauses (I) and (II), or subclauses (I) and (III).</text> </subclause></clause></subparagraph><subparagraph id="HF8D21E2B57B044498443C31C7E5DD772" indent="up2"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD701D70F8C64483782EE07B938FFCD60"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H5E83CC9F89A444B1B1A7D4A15177754D"><enum>(I)</enum><text>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.</text> </subclause><subclause id="HC913D5A8D1484B73B61B4E38843BD677" indent="up2"><enum>(II)</enum><text>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.</text> </subclause><subclause id="HD41D00555BE149609F50E702002B062B" indent="up2"><enum>(III)</enum><text>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 $7,500, and the total of all such penalties for a single calendar year shall not exceed $15,000.</text> </subclause></clause><clause id="HCC2342CAB79C48C4B719269500875F03" indent="up1"><enum>(ii)</enum><text>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.</text> </clause><clause id="H724229CAB4AB42148E6F4DDDE0C0347B" indent="up1"><enum>(iii)</enum><text>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.</text> </clause></subparagraph><subparagraph id="HF3F9FA079DFC460791CE24C62F3C08C1" indent="up2"><enum>(C)</enum><text>For purposes of subparagraph (A):</text> <clause id="H0D45E3EFB36E46C090DD202854E4C38D"><enum>(i)</enum><text>A violation of this chapter shall be considered to be of a serious nature if the violation—</text> <subclause id="HA9A40451971A4C3A972D009CAA2631DA"><enum>(I)</enum><text>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;</text> </subclause><subclause id="H9324FE7D8C3F4A0B8C485BEA8D84005B"><enum>(II)</enum><text>obstructs or could have obstructed a bona fide criminal investigation or prosecution, or an inspection or examination under this chapter; or</text> </subclause><subclause id="HA076414EEF6C4DB88FB0EBF3F8FA0100"><enum>(III)</enum><text>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.</text> </subclause></clause><clause id="H81CCCCBDDF4D4CC6A52D2EF3E0491531"><enum>(ii)</enum><text>A violation of this chapter shall be considered to be of a minor nature if the violation is not of a serious nature.</text> </clause></subparagraph><subparagraph id="H82A1637B99D24849A2E87610B077D3A9" indent="up2"><enum>(D)</enum><text>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—</text> <clause id="H9D5C5069C6C54963AFD085B1E4CA9CC0"><enum>(i)</enum><text>the date the violation occurred; or</text> </clause><clause id="H801E6C37403C499D800024CF3F30B189"><enum>(ii)</enum><text>if the licensee intentionally obstructed discovery of the violation, the date the violation is discovered.</text> </clause></subparagraph></paragraph><paragraph id="H7E1D1DC4464849DD903296EF41B5B21" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H4AAAB97CB1884BD48EDC6E20B6144900"><enum>(A)</enum><text>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—</text> <clause id="H3FC49FC147244F1988E3CA84BEB4C7D0" indent="up1"><enum>(i)</enum><text>of the determination, and the grounds on which the determination was made;</text> </clause><clause id="H0562B12DFE44472BB7FDAE74598EAFF5" indent="up1"><enum>(ii)</enum><text>of the nature of the penalty; and</text> </clause><clause id="H3CE3AA804A6D4D2AAEE7A613F6D9C47B" indent="up1"><enum>(iii)</enum><text>that the licensee may, within 30 days after receipt of the notice, request a hearing to review the determination.</text> </clause></subparagraph><subparagraph id="H60CD35D97C8745ED8F29B323006318D4" indent="up1"><enum>(B)</enum><text>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) of this paragraph.</text> </subparagraph><subparagraph id="H4EE6DDD3DBEB4A1EB5354B9652DBC288" indent="up1"><enum>(C)</enum><text>On timely receipt from the licensee of a request for a review described in subparagraph (B), 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.</text> </subparagraph></paragraph><paragraph id="H40D8405C76214810986E65E715A1FABD" indent="up1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HCE4D60DC959C42989ECAD5E16DC65E39"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H021C0419E45A408F93951B69D050669B" indent="up1"><enum>(B)</enum><text>Not less than 30 days before a hearing described in subparagraph (A), the Attorney General shall deliver to the licensee—</text> <clause id="H4112B5A133094B9DA937DA020078BCF8"><enum>(i)</enum><text>a document identifying each person whom the Attorney General intends to call as a witness during the hearing;</text> </clause><clause id="H12606CC6E7734BBABB2CEDDFC1B2E7EA"><enum>(ii)</enum><text>a copy of each document which will be introduced as evidence at the hearing; and</text> </clause><clause id="H8E76778CAF1F4FBF95D55555CF69BC09"><enum>(iii)</enum><text>copies of all documents on which the determination is based.</text> </clause></subparagraph><subparagraph id="HC08A1A9FC9EB405383C9877654EB2F43" indent="up1"><enum>(C)</enum><text>Within 90 days after a hearing described in subparagraph (A), 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.</text> </subparagraph><subparagraph display-inline="no-display-inline" id="HC3AE79AB66034346BE81A827349DBDFE" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">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.</text> </subparagraph><subparagraph id="H83B66C1B46464A189FC0F5008BD937D4" indent="up1"><enum>(E)</enum><text>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).</text> </subparagraph></paragraph><paragraph id="HAAC2B4DE6A4B49BE00D5CA48D38890D5" indent="up1"><enum>(4)</enum><text>This subsection shall not be interpreted to affect the authority of the Attorney General under section 922(t)(5).</text> </paragraph></subsection><subsection display-inline="no-display-inline" id="HD267116CCFC5483086C74EECA623D523"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="HD39A15AA19E54BDCAFB873E90574472"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H2C6811A0AC374D12AC8736F1517C9F82" indent="up1"><enum>(2)</enum><text>In a proceeding conducted under this subsection, 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).</text> </paragraph><paragraph id="H65A73F0ACBE247AEACBE093D0FABC5" indent="up1"><enum>(3)</enum><text>If the court determines that the licensee did not willfully violate 1 or more provisions of this chapter or 1 or more regulations prescribed under this chapter, the court shall—</text> <subparagraph id="id1B5AD916697F40128E456A69DDF50764"><enum>(A)</enum><text>vacate the revocation, suspension, or fine, and remand the matter to the Attorney General for further consideration; and</text> </subparagraph><subparagraph id="id69BE8E705CFE4211B90F6B59D9BCCC80"><enum>(B)</enum><text>award to the licensee a reasonable attorney’s fee with respect to any part of the decision or determination on which the licensee prevails.</text> </subparagraph></paragraph><paragraph id="H7E56E587FC314D85AC7244A8E9AC4B7C" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H68434E3BEC1141ADB010C399CC00C6D2"><enum>(b)</enum><header>Conforming amendment to procedure applicable to denial of application for license</header><text>Section 923(d) of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H91D8D45F9FB04719A1C5A9731369F07C" style="OLC"> <paragraph id="H1D1456FFB0B74F28B72C4E941F5652FB" indent="up1"><enum>(3)</enum><text>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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H1F44538B14594577994B41D8F7381CF"><enum>102.</enum><header>Consideration of Federal firearms license applications</header> <subsection id="H68954DC0C50049CC96D8A51E005BADBD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 923(d) of title 18, United States Code, as amended by section 101(b) of this Act, is amended—</text> <paragraph id="id7841F9D9BC2A4E0393FE0A9C98B527D4"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and</text> </paragraph><paragraph id="idDCD896C117B740188581FA5EAD64A857"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after paragraph (1) the following:</text> <quoted-block display-inline="no-display-inline" id="H51E81EA9C21E4E02BA76AB534CDC8850" style="OLC"> <paragraph id="HB902F159EA994C2AA90084B0621932FC" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HFB7E15E6471F47B9A14E2C25CCFEFD6"><enum>(b)</enum><header>Conforming amendment</header><text>Section 923(f) of title 18, United States Code, as amended by section 101(a) of this Act, is amended by striking <quote>(d)(3)</quote> each place it appears and inserting <quote>(d)(4)</quote>.</text> </subsection></section><section id="H41FC3EF1EB8246C7A3745B8672878D7B"><enum>103.</enum><header>Definition of willfully</header><text display-inline="no-display-inline">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:</text> <quoted-block display-inline="no-display-inline" id="HADFC43753A274A07AD54E628E91728E8" style="OLC"> <paragraph id="HF64FB2EA4BE341A387642B6D88F1C00" indent="up1"><enum>(5)</enum><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>willfully</term> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H4208A63432F246AAB9136F2B1BB4DA55"><enum>104.</enum><header>Establishment of formal inspection, examination, and investigative guidelines</header> <subsection id="idC93BA8BBE8E540A0843F359579B6C7CE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text> </subsection><subsection id="ID17bb38d8ae6b4b34a21d923f829766a1"><enum>(b)</enum><header>Personnel matters</header><text>In no case shall the amount of fines imposed on licensees under chapter 40 or 44 of title 18, United States Code, or the number of warnings issued, or suspensions or revocations of licenses under such chapters, be considered in the retention, promotion, or transfer of any officer, agent, or employee of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.</text> </subsection></section><section id="HB868052B8B0E4EEFB932A87ED8256CA2"><enum>105.</enum><header>Liquidation of inventory in Federal firearms license expiration, surrender, or revocation cases</header><text display-inline="no-display-inline">Section 923 of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF760DA9B707B4A9D8C3DDF1DFA18C1CB" style="OLC"> <subsection id="HABE7F757904B4EEAA8B900A4CB90D7C1"><enum>(m)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H5E76579CD0264EFC9946F527E7515405"><enum>(1)</enum><text>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.</text> </paragraph><paragraph id="H70C1F6C8E2E2443CA3913496ED58A245" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HE3AA4E020B1B4D11A6002659BABC8496"><enum>106.</enum><header>Opportunity to cure violations after acquisition of firearms business</header><text display-inline="no-display-inline">Section 923 of title 18, United States Code, as amended by section 106 of this Act, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA7E301D4B36F457A994C6B57BE533900" style="OLC"> <subsection id="H311E21CA08E842AD88CA8044B4B0E15C"><enum>(n)</enum><text display-inline="yes-display-inline">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—</text> <paragraph id="H1023DFC6D73443E3A87D505904F3358F"><enum>(1)</enum><text>shall notify the transferee of the violation by the transferor; and</text> </paragraph><paragraph id="H03BCBE4B69C04B2A957CD1919DC4B7C"><enum>(2)</enum><text>shall not presume that the transferee is committing the violation.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H3889065CB1504471BD089C80C1C5958C"><enum>107.</enum><header>Standards for criminal violations of recordkeeping requirements</header><text display-inline="no-display-inline">Section 922(m) of title 18, United States Code, is amended—</text> <paragraph id="H333591A811F64C44AC6F57E075DFFE7D"><enum>(1)</enum><text>by striking <quote>any false entry</quote> and inserting <quote>a materially false entry</quote>;</text> </paragraph><paragraph id="HFF96F60C001440D3A5FE428F10CAB742"><enum>(2)</enum><text>by striking <quote>appropriate entry</quote> and inserting <quote>a materially significant entry</quote>; and</text> </paragraph><paragraph id="H24EBCEEAE2174690BF2693B6DEDA2D1"><enum>(3)</enum><text>by striking <quote>properly maintain</quote> and inserting <quote>retain custody of</quote>.</text> </paragraph></section><section id="H61E97C861E534B94005273B500B9FF19"><enum>108.</enum><header>Effective date</header><text display-inline="no-display-inline">This title and the amendments made by this title shall take effect 180 days after the date of enactment of this Act.</text> </section><enum>II</enum><header>Firearms Corrections and Improvements</header> <section id="H21B9738050BF470F9BBCA3F06453C45C" section-type="subsequent-section"><enum>201.</enum><header>Correction of nonsubstantive error in age limit provision</header><text display-inline="no-display-inline">Section 922(b)(1) of title 18, United States Code, is amended to read as follows:</text> <quoted-block id="HEC8E47739D3E4BE79BD090FDBAE2BEFB" style="OLC"> <paragraph id="H699FD3B4EF9940348C179676621082DD"><enum>(1)</enum><text>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;</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HF96427D1F21E482E88D600F8B77FB0C4"><enum>202.</enum><header>Possession of machineguns for industry testing, training, and film production</header> <subsection id="H0ACABE1E3A9E4A64AED998228FCA18C"><enum>(a)</enum><header>Post-1986 machineguns for testing, research and development</header><text>Section 922(o)(2) of title 18, United States Code, is amended—</text> <paragraph id="H847F36EFA7CD4AB9838F4EC5DFD55F44"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="id307F229AE85848CA89C7E78C4A6D9B6D"><enum>(2)</enum><text>by redesignating subparagraph (B) as subparagraph (E); and</text> </paragraph><paragraph id="id57BDED692A934618896E27C32F99C6F9"><enum>(3)</enum><text>by inserting after subparagraph (A) the following:</text> <quoted-block id="H7D5E922EB4344E0CBD59005794F364A8" style="OLC"> <subparagraph id="H646A48804D44446F84E3795EC245D2B5" indent="up1"><enum>(B)</enum><text>a transfer to, or possession by, a licensed manufacturer or licensed importer solely for testing, research, design, or development of ammunition or a firearm;</text> </subparagraph><subparagraph id="HE6776D0335E44845BAD3116F00C45413" indent="up1"><enum>(C)</enum><text>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);</text> </subparagraph><subparagraph id="H2DC1C478DCBD440C8DB437B264F180C1" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">a transfer to or possession by a licensed manufacturer, licensed importer, or licensed dealer for a professional theatrical purpose if the licensee—</text> <clause id="H748395B9735841A2BBB6D4D151A3342F"><enum>(i)</enum><text display-inline="yes-display-inline">is registered under section 5802 of the National Firearms Act;</text> </clause><clause id="HE9C615D9D8C84A1094AE00CFAD73E68B"><enum>(ii)</enum><text display-inline="yes-display-inline">holds a valid permit or license under State law to engage in business as a theatrical firearms dealer or equivalent statutory designation;</text> </clause><clause id="HAEE8EB0C922E4FCCA5B622567806E7B0"><enum>(iii)</enum><text display-inline="yes-display-inline">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;</text> </clause><clause id="H2875A7AEEA7A48FFA449487D22B20041"><enum>(iv)</enum><text display-inline="yes-display-inline">before possessing a machinegun under this subparagraph, provides the Attorney General with documentation that—</text> <subclause id="H471CB8560ABA4A57B79EDCC4F5C844A2"><enum>(I)</enum><text display-inline="yes-display-inline">the licensee meets the requirements of clauses (i) through (iii); and</text> </subclause><subclause id="H8C9547A3634A4ABFA127B9FA18F3A800"><enum>(II)</enum><text>the transfer or possession, as the case may be, is for such purpose; and</text> </subclause></clause><clause id="HDD8CF6397D5F4BE4AD65779342DEFD23"><enum>(v)</enum><text display-inline="yes-display-inline">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</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H5B4E414E66B342DA83F200604EFD64BB"><enum>(b)</enum><header>Importation of machineguns</header><text>Section 925(d) of title 18, United States Code, is amended—</text> <paragraph id="H7EF354A0AD2F408EB67338B05BCFCFB4"><enum>(1)</enum><text>in paragraph (3), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="H7AEA37F35F444305809F429062DA9311"><enum>(2)</enum><text>in paragraph (4), by striking the period and inserting a semicolon; and</text> </paragraph><paragraph id="HAEF65D7DC11C43C99F32EFEC8C78255B"><enum>(3)</enum><text>by inserting after paragraph (4) the following:</text> <quoted-block display-inline="no-display-inline" id="H08B10205D33A44C888A5EACE3736200" style="OLC"> <paragraph id="H8B89896E935C44C8984E35310064863C"><enum>(5)</enum><text display-inline="yes-display-inline">is imported or brought in for a purpose described in section 922(o)(2); or</text> </paragraph><paragraph id="HE9410FD72847413CA43D133BE2365084"><enum>(6)</enum><text display-inline="yes-display-inline">is a machinegun being imported or brought in for a purpose described in section 922(o)(2)(D).</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H6276681F4BF9457B9D52BDD80513661E"><enum>(c)</enum><header>Importation under the National Firearms Act</header><text>Section 5844 of the National Firearms Act (26 U.S.C. 5844) is amended—</text> <paragraph id="HAF516F09772F495790F7FAFF54103212"><enum>(1)</enum><text>in paragraph (2), by striking <quote>or</quote> at the end; and</text> </paragraph><paragraph id="HD03DFA8F46CE4C9896BECD1F25E52207"><enum>(2)</enum><text>by inserting after paragraph (3) the following:</text> <quoted-block id="HC059C29B14394093A902DEEA9BA46F66" style="OLC"> <paragraph id="HC2DFBD06A917465290BA60F1D09F1D59"><enum>(4)</enum><text>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</text> </paragraph><paragraph id="H0EE4EBA96FBA4160A84160959BECAD34"><enum>(5)</enum><text display-inline="yes-display-inline">a machinegun being imported or brought in for a purpose described in section 922(o)(2)(D) of title 18, United States Code;</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H8027804B496E4578BAF0D4E983002400"><enum>(d)</enum><header>Professional theatrical purpose defined</header><text>Section 921(a) of title 18, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H9C10EB3AC1F140B6A947281D5167728F" style="OLC"> <paragraph id="H261FB578E42C42BE00C142B0F076A5E9" indent="up1"><enum>(36)</enum><text>The term <term>professional theatrical purpose</term> 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.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H8416C920B0504E2C9D9EC7AFA722733"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall take effect 180 days after the date of enactment of this Act.</text> </subsection></section><section id="HF9AB5A99F6F249DC923CBAF2EADDDE19"><enum>203.</enum><header>Elimination of obsolete language added by the Brady Handgun Violence Prevention Act</header><text display-inline="no-display-inline">Section 922 of title 18, United States Code, is amended—</text> <paragraph id="H7A578EDDDD494BF49D1E005691BB06F3"><enum>(1)</enum><text>by striking subsection (s); and</text> </paragraph><paragraph id="H34C10F43AE5B4D0493DD84C7F44F400"><enum>(2)</enum><text>in subsection (t)(1), by striking <quote>Beginning</quote> and all that follows through <quote>a licensed</quote> and inserting <quote>A licensed</quote>.</text> </paragraph></section><section id="H33466FAB43E84D7CB9EBAC00274BA8E3"><enum>204.</enum><header>Elimination of written permission requirement for supervised handgun use</header><text display-inline="no-display-inline">Section 922(x)(3)(A) of title 18, United States Code, is amended—</text> <paragraph id="H975D3A9265754C63B363F5C6702CB8DD"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii), by striking subclause (II) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HC43B37D23FB6400B93B4FD00CFA29FBE" style="OLC"> <subclause id="HA297F939809B4B7B9072406C7BEF7D72" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">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;</text> </subclause><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H28D737BFF3A44FF2B731308B01001DC8"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (iii), by inserting <quote>except as provided in clause (ii)(II),</quote> after <quote>(iii)</quote>.</text> </paragraph></section><section id="HED80E45C595A4D78B524B8E638C2496"><enum>205.</enum><header>Modification of procedures for sharing of multiple handgun sales reports</header><text display-inline="no-display-inline">Section 923(g)(3)(A) of title 18, United States Code, is amended—</text> <paragraph id="HD43C8B6B696F45958FD42F97D68DDF08"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>and to the department of State police</quote> and all that follows through <quote>took place</quote>; and</text> </paragraph><paragraph id="HB0EEC40D3EF3412CB5EA319FE23136C3"><enum>(2)</enum><text>by adding at the end the following: <quote>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.</quote>.</text> </paragraph></section><section id="HEAA33BCFEE504A98905FC1502557CA3E"><enum>206.</enum><header>Ban on electronic retrieval of inactive licensee information</header><text display-inline="no-display-inline">Subsection 923(g)(4) of title 18, United States Code, is amended by adding at the end the following: <quote>The Attorney General shall not electronically retrieve information gathered pursuant to this paragraph by name or by any personal identification code.</quote>.</text> </section><section id="H53807796428E4C0100F8C1D16E1D1FF4"><enum>207.</enum><header>Barrel and receiver importation</header> <subsection id="H2C96983E7033469A84832D45B876F9B8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 925(e) of title 18, United States Code, is amended—</text> <paragraph id="HEF3B3637236D41678CBEDD01B93C1B51"><enum>(1)</enum><text>in paragraph (1), by striking <quote>, and</quote> and inserting a period;</text> </paragraph><paragraph id="H793C822FBCDF43168C5700C8A4F8D43B"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HAE22696646664F3A985E0229647D9975" style="OLC"> <paragraph id="HB4D1EAFFE0DA4357A5B22E0798B904B7"><enum>(3)</enum><text>All frames or receivers of rifles, or barrels for firearms other than handguns, if the importation is for repair or replacement purposes.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HCE811BC49E7548549CF5E2394FD97511"><enum>(b)</enum><header>Governmental imports</header><text>Section 925(a)(1) of title 18, United States Code, is amended by inserting <quote>, barrel,</quote> after <quote>or importation of any firearm</quote>.</text> </subsection></section><section display-inline="no-display-inline" id="H0DE6D42535184419BD5C5EC8B2D500F5" section-type="subsequent-section"><enum>208.</enum><header>Clarifications relating to manufacturing of firearms</header> <subsection id="H85FC430F1A62408EA871BA9DCD9556F2"><enum>(a)</enum><header>Clarification of definition of manufacturing</header><text display-inline="yes-display-inline">Section 921(a)(10) of title 18, United States Code, is amended by adding at the end the following: <quote>The term <term>manufacturing</term> 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.</quote>.</text> </subsection><subsection id="H34686DBC5E1D42D9AD2F6C4257006087"><enum>(b)</enum><header>Clarification of definition of dealer</header><text display-inline="yes-display-inline">Section 921(a)(11)(B) of title 18, United States Code, is amended by striking <quote>or trigger mechanisms to firearms</quote> and inserting <quote>trigger mechanisms, or other parts to firearms, or engraving or otherwise altering the appearance of firearms</quote>.</text> </subsection></section>