[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4706 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  2d Session
                                S. 4706

             To modernize the business of selling firearms.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 11 (legislative day, July 10), 2024

 Mr. Durbin (for himself, Mr. Whitehouse, Mr. Blumenthal, Ms. Hirono, 
  Mr. Booker, Mr. Welch, Mrs. Shaheen, Mr. Reed, Mr. Schatz, and Mr. 
    Cardin) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
             To modernize the business of selling firearms.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Firearm 
Licensee Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Repeal of temporary Brady provision.
Sec. 5. Physical security of licensee premises.
Sec. 6. Business inventory firearms.
Sec. 7. Electronic records.
Sec. 8. Notification of default transfers.
Sec. 9. Multiple firearm sales records and reports.
Sec. 10. Safety devices and warnings to purchasers.
Sec. 11. Inspections.
Sec. 12. Authority with regards to license issuance and renewal.
Sec. 13. Increased licensing fees.
Sec. 14. Elimination of obligatory stay of effective date of license 
                            revocation.
Sec. 15. Elimination of relief for dealers indicted for a crime 
                            punishable by imprisonment for a term 
                            exceeding one year.
Sec. 16. Elimination of relief while Federal disability relief 
                            application pending.
Sec. 17. Presumption of knowledge of State law in sale of long guns to 
                            residents of another State.
Sec. 18. Increased penalties for knowing transfer of firearm without 
                            conducting a background check.
Sec. 19. Unlawful acts upon incurring Federal disability or notice of 
                            license suspension, revocation, or denied 
                            renewal.
Sec. 20. Regulation of facilitators of firearm transfers.
Sec. 21. Dealer and employee background checks.
Sec. 22. Liability standards.
Sec. 23. Civil enforcement.
Sec. 24. Removal of bar on civil proceedings if criminal proceedings 
                            terminated.
Sec. 25. Repeal of certain limitations.
Sec. 26. Authority to hire additional industry operation investigators 
                            for Bureau of Alcohol, Tobacco, Firearms, 
                            and Explosives.
Sec. 27. Report on implementation of this Act.
Sec. 28. Annual licensed dealer inspections report and analysis.
Sec. 29. Deadline for issuance of final regulations.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) A growing body of evidence demonstrates that firearm 
        dealers' sales practices affect the probability of firearms 
        getting to criminals and that policies designed to hold firearm 
        sellers accountable can curtail the diversion of firearms to 
        criminals.
            (2) Federal laws governing firearm dealers--
                    (A) have not been updated in more than 30 years;
                    (B) contain safeguards that protect dealers who 
                engage in illegal practices from adverse enforcement 
                action;
                    (C) frustrate law enforcement efforts to curb 
                firearm trafficking and violence; and
                    (D) are, thus, inadequate to meet the realities of 
                the 21st century.
            (3)(A) The Tiahrt Amendments, for one--
                    (i) severely limit the authority of the Bureau of 
                Alcohol, Tobacco, Firearms, and Explosives (commonly 
                known as the ``ATF'') to disclose crime firearm trace 
                data to the public;
                    (ii) prevent--
                            (I) the collection of valuable information; 
                        and
                            (II) the establishment of effective 
                        policies to prevent illegal firearms from being 
                        used in crimes; and
                    (iii) impede enforcement of the firearm laws by--
                            (I) requiring most background check records 
                        to be destroyed within 24 hours; and
                            (II) barring the Government from requiring 
                        owners of firearm shops to conduct annual 
                        inventory audits.
            (B) Repealing the Tiahrt Amendments would support law 
        enforcement efforts and give the public vital information 
        needed to craft the most effective policies against illegal 
        firearms.
            (4) Additionally, Federal law imposes no requirements that 
        firearm dealers physically secure their highly valuable and 
        lethal inventory. The number of firearm thefts from licensed 
        firearm dealers has increased more than the number from any 
        other source. Between 2013 and 2017, the number of firearms 
        stolen in firearm-dealer burglaries more than doubled and the 
        number of firearms stolen in firearm-dealer robberies tripled.

SEC. 3. DEFINITIONS.

    Section 921(a) of title 18, United States Code, is amended by 
adding at the end the following:
    ``(38) The term `facilitator' means any person engaged in the 
business of hosting a commercial marketplace in which offers for 
firearm sales, purchases, or other transfers are allowed to be made, 
except that such a person shall not be considered to be a facilitator 
with respect to any transaction that is made through the use of a 
website or mobile application owned or operated by the person if--
            ``(A) the transaction violates the terms of service of the 
        website or mobile application; and
            ``(B) the person has made a good faith effort to enforce 
        the terms of service by, at a minimum, auditing firearms 
        transactions on a quarterly basis to ensure compliance with 
        this chapter.
    ``(39) The term `occasional' means, with respect to transactions, 
fewer than 5 transactions in a 12-month period.
    ``(40) The term `personal collection' includes any firearm obtained 
only for the personal use of an individual and not for the purpose of 
selling or trading, except that a firearm obtained through inheritance 
shall not be considered part of a personal collection until the firearm 
has been possessed for 1 year.
    ``(41) The term `business inventory firearm' means, with respect to 
a person, a firearm required by law to be recorded in the acquisition 
and disposition logs of any firearms business of the person.
    ``(42)(A) The term `frame' means the part of a handgun, or a 
variant thereof, that provides housing or a structure for the primary 
energized component designed to hold back the hammer, striker, bolt, or 
similar component prior to initiation of the firing sequence (such as a 
sear or the equivalent), even if pins or other attachments are required 
to connect such component to the housing or structure.
    ``(B) The term `receiver' means the part of a rifle, shotgun, or 
projectile weapon other than a handgun, or a variant thereof, that 
provides housing or a structure for the primary component designed to 
block or seal the breech prior to initiation of the firing sequence 
(such as a bolt, breechblock, or the equivalent), even if pins or other 
attachments are required to connect such component to the housing or 
structure.
    ``(C) For purposes of this paragraph, the term `variant' means a 
weapon utilizing a similar frame or receiver design irrespective of new 
or different model designations or configurations, characteristics, 
features, components, accessories, or attachments. For example, an AK-
type firearm with a short stock and a pistol grip is a pistol variant 
of an AK-type rifle, an AR-type firearm with a short stock and a pistol 
grip is a pistol variant of an AR-type rifle, and a revolving cylinder 
shotgun is a shotgun variant of a revolver.''.

SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION.

    (a) In General.--Section 922 of title 18, United States Code, is 
amended by striking subsection (s).
    (b) Conforming Amendments.--Chapter 44 of title 18, United States 
Code, is amended--
            (1) in section 922--
                    (A) in subsection (t)--
                            (i) in paragraph (3)(C)(ii), by striking 
                        ``(as defined in subsection (s)(8))''; and
                            (ii) by adding at the end the following:
            ``(A) For purposes of this subsection, the term `chief law 
        enforcement officer' means the chief of police, the sheriff, or 
        an equivalent officer or the designee of any such 
        individual.''; and
                    (B) in subsection (y)(2), in the matter preceding 
                subparagraph (A), by striking ``, (g)(5)(B), and 
                (s)(3)(B)(v)(II)'' and inserting ``and (g)(5)(B)'';
            (2) in section 924(a)(5), by striking ``subsection (s) or 
        (t) of section 922'' and inserting ``section 922(t)''; and
            (3) in section 925A, in the matter preceding paragraph (1), 
        by striking ``subsection (s) or (t) of section 922'' and 
        inserting ``section 922(t)''.

SEC. 5. PHYSICAL SECURITY OF LICENSEE PREMISES.

    (a) Security Plan Submission Requirement.--
            (1) In general.--Section 923(d)(1)(G) of title 18, United 
        States Code, is amended--
                    (A) by striking ``, the applicant'' and inserting 
                the following: ``--
                    ``(i) the applicant'';
                    (B) by striking the period ad the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(ii) the applicant--
                            ``(I) submits with the application a 
                        security plan that describes how the applicant 
                        will secure, in accordance with the regulations 
                        issued under section 926(d), the premises from 
                        which the applicant will conduct business under 
                        the license (including in the event of a 
                        natural disaster or other emergency); and
                            ``(II) certifies that, if issued such a 
                        license, the applicant will comply with the 
                        plan described in subclause (I).''.
            (2) Written approval required before license renewal.--
        Section 923(d)(1) of title 18, United States Code, is amended--
                    (A) in subparagraph (F), by striking ``and'' at the 
                end;
                    (B) in subparagraph (G), as amended by paragraph 
                (1), by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
            ``(H) in the case of an application to renew a license to 
        deal in firearms--
                    ``(i) the license is not suspended;
                    ``(ii) no license issued to the applicant under 
                this chapter has been revoked; and
                    ``(iii) the Attorney General has inspected the 
                premises and provided written approval of the security 
                plan submitted by the applicant under subparagraph 
                (G)(ii)(I).''.
            (3) Applicability to existing dealers whose license will 
        expire .--
                    (A) In general.--If, not later than 1 year after 
                the date on which regulations are prescribed under 
                section 926(d) of title 18, United States Code (as 
                added by subsection (c) of this section), a person 
                described in subparagraph (B) of this paragraph submits 
                to the Attorney General a security plan described in 
                clause (ii)(I) of section 923(d)(1)(G) of that title 
                (as added by paragraph (1) of this subsection), the 
                security plan shall be considered to have been 
                submitted in accordance with such section 923(d)(1)(G).
                    (B) Person described.--A person described in this 
                subparagraph is a person--
                            (i) who, on the date of enactment of this 
                        Act, is a licensed dealer (as defined in 
                        section 921(a)(11) of title 18, United States 
                        Code); and
                            (ii) whose license to deal in firearms 
                        issued under chapter 44 of title 18, United 
                        States Code, will expire on or after the date 
                        that is 1 year after the date on which 
                        regulations are prescribed under section 926(d) 
                        of that title (as added by subsection (c) of 
                        this section).
    (b) Annual Compliance Certification Requirement.--
            (1) In general.--Section 923 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(m) Annual Certification.--
            ``(1) In general.--Each licensed manufacturer, licensed 
        importer, and licensed dealer shall--
                    ``(A) annually certify to the Attorney General that 
                each premises from which the licensee conducts business 
                subject to license under this chapter is in compliance 
                with the regulations prescribed under section 926(d); 
                and
                    ``(B) in the case of a licensed dealer, include 
                with the certification under subparagraph (A)--
                            ``(i) the results of a reconciliation of 
                        the resale firearms then in the business 
                        inventory of the licensee against the resale 
                        firearms in the business inventory of the 
                        licensee at the time of the most recent prior 
                        certification (if any) under this paragraph; 
                        and
                            ``(ii) all dispositions and acquisitions of 
                        resale firearms in the year covered by the 
                        certification, identifying and reporting any 
                        missing firearm.
            ``(2) Civil penalty.--The Attorney General shall impose a 
        civil penalty of not more than $5,000 on, and may suspend the 
        license issued under this section to, a licensee who fails to 
        comply with paragraph (1).''.
            (2) Applicability.--In the case of a person who, on the 
        date of enactment of this Act, is a licensee referred to in 
        section 923(m) of title 18, United States Code (as added by 
        paragraph (1)), such section 923(m) shall apply to the person 
        on and after the date that is 1 year after the date on which 
        regulations are prescribed under subsection (d) of section 926 
        of that title (as added by subsection (c)(1)).
    (c) Regulations.--
            (1) In general.--Section 926 of title 18, United States 
        Code, is amended by adding at the end the following:
    ``(d) Securing Premises From Theft.--The Attorney General shall 
prescribe such regulations as are necessary to ensure that any premises 
at which a licensee referred to in section 923(m) conducts business is 
secure from theft, which shall include requiring--
            ``(1) compliance with the security plan submitted by the 
        licensee pursuant to section 923(d)(1)(G)(ii)(I), if 
        applicable;
            ``(2) the use of locked metal cabinets and fireproof safes;
            ``(3) security systems, video monitoring, and anti-theft 
        alarms;
            ``(4) security gates, strong locks, and site hardening;
            ``(5) concrete bollards and other access controls, if 
        necessary; and
            ``(6) the use of any other security-enhancing features 
        appropriate for the specific circumstances of the licensee.''.
            (2) Applicability.--The regulations prescribed under 
        section 926(d) of title 18, United States Code, as added by 
        paragraph (1), shall not apply to a person who, on the date of 
        the enactment of this Act, is a licensee referred to in section 
        923(m) of that title, until the date that is 1 year after the 
        date on which the regulations are prescribed.

SEC. 6. BUSINESS INVENTORY FIREARMS.

    (a) Requirement To Transfer Firearm in Personal Collection to 
Business Inventory Before Disposition.--Section 923(c) of title 18, 
United States Code, is amended--
            (1) by striking the second sentence and inserting the 
        following: ``Nothing in this chapter shall be construed to 
        prohibit a licensed manufacturer, licensed importer, or 
        licensed dealer from maintaining a personal collection of 
        firearms.'';
            (2) by striking the third sentence; and
            (3) by adding at the end the following: ``Any firearm 
        disposed of by a licensee shall be from the business inventory 
        of the licensee.''
    (b) Licensee Firearms Inventory.--Section 923(g) of title 18, 
United States Code, is amended by adding at the end the following:
    ``(8)(A) Each quarter, a licensee shall conduct a physical check of 
the firearms inventory of the business of the licensee licensed under 
this chapter and report to the Attorney General and appropriate local 
authorities any firearm that is lost, stolen, or unaccounted for.
    ``(B) The Attorney General shall prescribe regulations to implement 
the requirements under subparagraph (A), which shall require, at a 
minimum, that a licensee record, for each firearm in the inventory of 
the licensee--
            ``(i) the date of receipt of the firearm;
            ``(ii) the name, address, and license number, if 
        applicable, of the person from whom the firearm was received;
            ``(iii) the name of the manufacturer and, if applicable, 
        importer of the firearm;
            ``(iv) the model, serial number, type, and caliber or gauge 
        of the firearm; and
            ``(v) the date of the sale or other disposition of the 
        firearm.
    ``(C) Nothing in this paragraph shall be construed to prohibit the 
Attorney General from, at any time, requiring the regular or one-time 
submission of the inventory records of a licensee to ensure that the 
licensee is in compliance with this chapter.''.
    (c) Repeal of Limitations on Imposition of Requirement That 
Firearms Dealers Conduct Physical Check of Firearms Inventory.--
            (1) Fiscal year 2013.--The fifth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113-6; 
        127 Stat. 248) is amended by striking ``and any fiscal year 
        thereafter''.
            (2) Fiscal year 2012.--The matter under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 609) is 
        amended by striking the seventh proviso.
            (3) Fiscal year 2010.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2010 (Public Law 111-117; 123 Stat. 3129) 
        is amended by striking ``or any other''.
            (4) Fiscal year 2009.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Omnibus Appropriations Act, 2009 (Public Law 
        111-8; 123 Stat. 575) is amended by striking ``or any other''.
            (5) Fiscal year 2008.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated Appropriations Act, 2008 (Public 
        Law 110-161; 121 Stat. 1904) is amended by striking ``or any 
        other''.
            (6) Fiscal year 2006.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title I of the 
        Science, State, Justice, Commerce, and Related Agencies 
        Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2296) 
        is amended by striking ``or any other''.
            (7) Fiscal year 2005.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title I of 
        division B of the Consolidated Appropriations Act, 2005 (Public 
        Law 108-447; 118 Stat. 2860) is amended by striking ``or any 
        other''.
            (8) Fiscal year 2004.--The seventh proviso under the 
        heading ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title I of 
        division B of the Consolidated Appropriations Act, 2004 (Public 
        Law 108-199; 118 Stat. 53) is amended by striking ``or any 
        other''.

SEC. 7. ELECTRONIC RECORDS.

    (a) Records Retention and Submission.--Section 923(g) of title 18, 
United States Code, is amended--
            (1) in paragraph (1)(A)--
                    (A) in the first sentence, by inserting before the 
                period at the end the following: ``, except that, 
                notwithstanding any other provision of law, on and 
                after the date that is 1 year after the date of 
                enactment of the Federal Firearm Licensee Act, records 
                prepared by a licensee under this chapter of the sale 
                or other disposition of firearms, including each 
                firearms transaction record, and the corresponding 
                record of receipt of such firearms, shall be retained 
                at the business premises readily accessible for 
                inspection under this chapter until the business is 
                discontinued''; and
                    (B) by striking the second sentence;
            (2) in paragraph (5)(A), by inserting ``or electronically 
        as may be'' after ``submit on a form''; and
            (3) in paragraph (7), by inserting ``, electronically,'' 
        after ``orally''.
    (b) Records Databases.--Section 923(g) of title 18, United States 
Code, as amended by section 6, is amended by adding at the end the 
following:
    ``(9)(A) Not later than 3 years after the date of enactment of this 
paragraph, the National Tracing Center of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives shall establish and maintain 
electronic, searchable databases of all records regarding the 
importation, production, shipment, receipt, sale, or other disposition 
of firearms required to be submitted by licensees to the Attorney 
General under this chapter.
    ``(B) Each licensee under this chapter may provide the National 
Tracing Center with electronic access, consistent with the requirements 
of this paragraph, to all records within the possession of the licensee 
that are required to be kept under this chapter.
    ``(C) The National Tracing Center--
            ``(i) shall have remote access to query, search, or 
        otherwise access the electronic databases described in 
        subparagraph (A); and
            ``(ii) with the permission of a State, or political 
        subdivision of a State, may query, search, or otherwise access 
        the databases of the firearms registration system or pawnbroker 
        records system of the State or political subdivision.
    ``(D) The National Tracing Center may query, search, or otherwise 
access the electronic databases described in subparagraph (A) only to 
obtain information related to any Federal, State, local, tribal, or 
foreign criminal investigation.
    ``(E) The electronic databases established under subparagraph (A)--
            ``(i) shall be electronically searchable by date of 
        disposition, license number, and the information identified on 
        each firearm or other firearm descriptor, including the 
        manufacturer, importer, model, serial number, type, and caliber 
        or gauge;
            ``(ii) shall not be electronically searchable by the 
        personally identifiable information of any individual, without 
        a warrant authorizing such a search; and
            ``(iii) shall include in search results the entire contents 
        of the relevant records kept by the licensee.''.
    (c) Video Recordings of Sales and Transfers.--Section 923(g) of 
title 18, United States Code, as amended by subsection (b), is amended 
by adding to the end the following:
    ``(10) In accordance with regulations promulgated by the Attorney 
General, each licensed dealer operating a location at which firearms 
are sold to a person not licensed under this chapter shall--
            ``(A) maintain video surveillance of all areas within each 
        premises where firearms in the business inventory of the 
        licensee are sold or transferred;
            ``(B) retain records of the surveillance, including any 
        sound recording obtained from the surveillance, for a period of 
        not less than 90 days; and
            ``(C) post a sign in a conspicuous place and at each public 
        entrance to the retail location, in block letters not less than 
        1 inch in height, stating that the premises are under video 
        surveillance.''.
    (d) Increased Penalties for Licensee Violations Relating to 
Acquisition and Disposition Records.--Section 924(a)(3) of title 18, 
United States Code, is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and adjusting the margins 
        accordingly;
            (2) by moving the matter following clause (ii) (as so 
        redesignated) 2 ems to the right;
            (3) in the matter following clause (ii) (as so 
        redesignated), by striking ``one year'' and inserting ``5 
        years'';
            (4) by inserting ``(A)'' after ``(3)''; and
            (5) by adding at the end the following:
    ``(B) If the conduct described in clause (i) or (ii) of 
subparagraph (A) is in relation to an offense under subsection (a)(6) 
or (d) of section 922, the licensed dealer, licensed importer, licensed 
manufacturer, or licensed collector shall be fined under this title, 
imprisoned not more than 10 years, or both.''.
    (e) Elimination of Limitation on Centralizing Records.--Section 
926(a) of title 18, United States Code, is amended, in the matter 
following paragraph (3)--
            (1) in the first sentence, by striking ``records required 
        to be maintained under this chapter or any portion of the 
        contents of such records, be recorded at or transferred to a 
        facility owned, managed, or controlled by the United States or 
        any State or any political subdivision thereof, nor that''; and
            (2) in the second sentence, by striking ``Secretary's'' and 
        inserting ``Attorney General's''.
    (f) Electronic Recordkeeping Adoption and Implementation.--Section 
926 of title 18, United States Code, as amended by section 5, is 
amended by adding at the end the following:
    ``(e) Facilitation of Electronic Recordkeeping.--The Attorney 
General--
            ``(1) shall facilitate and incentivize the conversion to, 
        and adoption of, electronic recordkeeping solutions by 
        licensees that enable electronic completion and submission to 
        the Attorney General of all records required to be maintained 
        under this chapter;
            ``(2) shall facilitate--
                    ``(A) digital capture of paper records of licensed 
                dealers; and
                    ``(B) the integration and indexing of data onto a 
                platform accessible by law enforcement authorities for 
                purposes of investigating a violent crime or crime gun 
                trace;
            ``(3) shall facilitate, with respect to the electronic 
        databases established under section 923(g)(9)(A)--
                    ``(A) remote access to electronic records of 
                licensed dealers by law enforcement authorities for 
                purposes of investigating a violent crime or crime gun 
                trace; and
                    ``(B) access by licensed dealers to only their own 
                records; and
            ``(4) may not remotely access or search electronic records 
        of licensed dealers without a warrant authorizing such a 
        search.''.

SEC. 8. NOTIFICATION OF DEFAULT TRANSFERS.

    Section 922(t)(1) of title 18, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(E) in the case of a transfer conducted pursuant to 
        subparagraph (B)(ii) or clause (ii) or (iii) of subparagraph 
        (C), the licensee notifies the Attorney General, not later than 
        the close of business on the day on which the firearm is 
        transferred, that the firearm has been transferred to the 
        person.''.

SEC. 9. MULTIPLE FIREARM SALES RECORDS AND REPORTS.

    (a) Expanding Reporting Requirement to Certain Long Guns.--Section 
923(g)(3)(A) of title 18, United States Code, is amended--
            (1) in the first sentence, by striking ``pistols, or 
        revolvers, or any combination of pistols and revolvers'' and 
        inserting ``pistols, revolvers, semiautomatic rifles or 
        shotguns, or rifles or shotguns capable of accepting a high 
        capacity magazine, or any combination of such weapons''; and
            (2) by inserting after the first sentence the following: 
        ``In the preceding sentence, the term `high capacity magazine' 
        means a magazine capable of holding more than 10 rounds of 
        ammunition, and includes a magazine that may be readily 
        converted to hold more than 10 rounds of ammunition.''
    (b) Requirement To Retain Instant Criminal Background Check Records 
for 90 Business Days.--Section 922(t)(2)(C) of title 18, United States 
Code, is amended--
            (1) by striking ``destroy'' and inserting ``retain for not 
        less than 90 business days'';
            (2) by striking ``(other than the identifying number and 
        the date the number was assigned)''; and
            (3) by inserting before the period at the end the 
        following: ``solely for purposes related to discovering misuse 
        or avoidance of the national instant criminal background check 
        system or ensuring its proper operation''.
    (c) Attorney General Reports of Multiple Sales by Non-Licensees.--
Section 923(g)(3) of title 18, United States Code, is amended--
            (1) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (2) by inserting after subparagraph (A) the following:
    ``(B)(i) The Attorney General shall prepare a report of multiple 
dispositions of firearms to persons not licensed under this chapter, 
which shall include the names and identifying information of 
transferees appearing in the records retained under section 
922(t)(2)(C) on 2 or more occasions in any period of 5 consecutive 
business days.
    ``(ii) The report described in clause (i) shall be prepared on a 
form substantially similar to the form created pursuant to subparagraph 
(A) and include the names and addresses of the licensees who requested 
the background checks under subsection (t).
    ``(iii) The Attorney General shall forward the report described in 
clause (i) to the office designated pursuant to subparagraph (A) and to 
the departments of State police or State law enforcement agencies of 
the State or local law enforcement agencies of the local jurisdictions 
in which the sales or other dispositions took place, not later than the 
close of business on the date of the most recent such sale or other 
disposition.''.
    (d) Records Retention To Investigate Crime Guns.--Section 
923(g)(3)(C) of title 18, United States Code, as redesignated by 
subsection (c)(1) of this section, is amended--
            (1) in the first sentence--
                    (A) by inserting ``a firearm involved in a crime 
                or'' after ``Except in the case of forms and contents 
                thereof regarding''; and
                    (B) by striking ``, and shall destroy each such 
                form and any record of the contents thereof no more 
                than 20 days from the date such form is received'' and 
                inserting ``and shall retain each such form and any 
                record of the contents of the form for not less than 
                180 days after the date on which the form is 
                received''; and
            (2) by striking the second sentence.

SEC. 10. SAFETY DEVICES AND WARNINGS TO PURCHASERS.

    Section 922(z) of title 18, United States Code, is amended--
            (1) by inserting ``and Warnings to Purchasers'' after 
        ``Secure Gun Storage or Safety Device'';
            (2) by striking ``handgun'' each place it appears and 
        inserting ``firearm''; and
            (3) by adding at the end the following:
            ``(4) Warnings to purchasers.--
                    ``(A) In general.--A licensed dealer operating a 
                physical retail location shall post conspicuously 
                within the licensed premises all warnings required to 
                be provided to firearms purchasers under applicable 
                State and local law.
                    ``(B) Materials.--
                            ``(i) Development and distribution by 
                        attorney general.--The Attorney General shall--
                                    ``(I) develop materials regarding 
                                suicide prevention, securing firearms 
                                from loss, theft, or access by a minor 
                                or prohibited person, and straw 
                                purchasing; and
                                    ``(II) provide the materials 
                                developed under subclause (I) to each 
                                licensed dealer.
                            ``(ii) Dissemination by dealers.--A 
                        licensed dealer shall disseminate the materials 
                        described in clause (i) upon transfer of a 
                        firearm to a person not licensed under this 
                        chapter.''.

SEC. 11. INSPECTIONS.

    (a) Mandated Annual Inspections of High-Risk Licensed Dealers and 
Quinquennial Inspections of Other Licensed Dealers.--Section 
923(g)(1)(B) of title 18, United States Code, is amended--
            (1) in clause (ii), by redesignating subclauses (I) and 
        (II) as items (aa) and (bb), respectively, and adjusting the 
        margins accordingly;
            (2) by redesignating clauses (i), (ii), and (iii) as 
        subclauses (I), (II), and (III), respectively, and adjusting 
        the margins accordingly;
            (3) by inserting ``(i)'' after ``(B)''; and
            (4) by adding at the end the following:
    ``(ii)(I) The Attorney General--
            ``(aa) not less frequently than annually, shall inspect or 
        examine the inventory, records, and business premises of each 
        licensed dealer whom the Attorney General determines to be a 
        high-risk dealer, based on considerations that include 
        whether--
                    ``(AA) during the preceding 5 years, the dealer 
                reported a lost or stolen firearm;
                    ``(BB) during the preceding 10 years, the dealer 
                was issued a report of violation, received a warning 
                letter, or was the subject of a warning conference; or
                    ``(CC) during the preceding year, multiple firearms 
                were determined to have been used in a crime under 
                Federal, State, or local law within 3 years after sale 
                by the dealer; and
            ``(bb) may appoint an attorney to ensure that high-risk 
        dealers comply with all applicable firearm sales laws.
    ``(II) An attorney appointed under subclause (I)(bb) may, with 
respect to high-risk dealers, use in-store observation, monitor 
records, conduct random and repeated sales integrity tests, and design 
and offer instructional programs providing best practices sales 
training to all employees involved in firearm sales until the attorney 
certifies to the Attorney General that the high-risk dealer has 
complied with all applicable firearm sales laws for 3 consecutive 
years.
    ``(III) Not later than 180 days after the date on which an 
inspection or examination under subclause (I) reveals a violation of 
this section or any regulation prescribed under this chapter, and not 
later than 180 days after a security inspection conducted under 
paragraph (6)(B)(i) of this subsection, the Attorney General shall 
conduct an inspection or examination to determine whether the violation 
identified in the preceding inspection or examination has been cured.
    ``(IV) Not less frequently than once every 5 years, the Attorney 
General shall inspect or examine the inventory, records, and business 
premises of each licensed dealer that the Attorney General has not 
determined to be a high-risk dealer under subclause (I).''.
    (b) Elimination of Limit on Inspection of Licensee Records.--
Section 923(g)(1)(B)(i)(II) of title 18, United States Code, as 
redesignated by subsection (a), is amended--
            (1) by striking ``--'' and all that follows through 
        ``(bb)''; and
            (2) by striking ``with respect to records relating to a 
        firearm involved in a criminal investigation that is traced to 
        the licensee''.
    (c) Mandated Security Inspection of Dealers Reporting Lost or 
Stolen Firearms.--Section 923(g)(6) of title 18, United States Code, is 
amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:
    ``(B)(i) If the Attorney General receives a report under 
subparagraph (A) from a licensed dealer, the Attorney General shall 
conduct an independent inspection of the security of the premises at 
which the theft occurred, which shall include an inspection of the 
measures taken to implement the security plan submitted by the licensed 
dealer under subsection (d)(1)(G)(ii).
    ``(ii) On completion of a security inspection under clause (i), the 
Attorney General shall provide the licensed dealer with--
            ``(I) a notice of any violation by the licensed dealer of 
        any security requirements prescribed under section 926(d); and
            ``(II) recommendations for improving security of the 
        premises involved.''.
    (d) Elimination of Limit on Inspection of Other Premises.--Section 
923(j) of title 18, United States Code, is amended by striking the 
sixth sentence.

SEC. 12. AUTHORITY WITH REGARDS TO LICENSE ISSUANCE AND RENEWAL.

    (a) Denial Authority.--Section 923 of title 18, United States Code, 
is amended--
            (1) in subsection (c)--
                    (A) by inserting ``(1)'' before ``Upon'';
                    (B) in the first sentence, by inserting ``, subject 
                to paragraph (2),'' after ``the Attorney General 
                shall''; and
                    (C) by adding at the end the following:
    ``(2) The Attorney General shall deny an application submitted 
under subsection (a) or (b) if the Attorney General determines that--
            ``(A) issuing the license would pose a danger to public 
        safety; or
            ``(B) the applicant--
                    ``(i) is not likely to comply with the law; or
                    ``(ii) is otherwise not suitable to be issued a 
                license.''; and
            (2) in subsection (d)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``shall'' and inserting ``or renewal thereof 
                shall, subject to subsection (c)(2),'';
                    (B) in subparagraph (C), by striking ``not 
                willfully violated'' and inserting ``no uncured 
                violations''; and
                    (C) in subparagraph (F)--
                            (i) in clause (ii), by striking ``and'' at 
                        the end; and
                            (ii) by adding at the end the following:
                            ``(iv) each employee employed in the 
                        business--
                                    ``(I) will be at least the minimum 
                                age at which individuals may possess a 
                                firearm in the locality in which the 
                                business will be conducted; and
                                    ``(II) is not prohibited from being 
                                transferred a firearm, or transporting, 
                                shipping, or receiving firearms or 
                                ammunition, in interstate or foreign 
                                commerce by subsection (d), (g), or (n) 
                                (as applicable) of section 922 or by 
                                State, local, or Tribal law; and''.
    (b) Authority To Revoke or Suspend Licenses.--Section 923 of title 
18, United States Code, is amended--
            (1) in subsection (e)--
                    (A) in the first sentence, by inserting ``or 
                suspend'' after ``revoke''; and
                    (B) in the third sentence, by striking 
                ``Secretary's'' and inserting ``Attorney General's''; 
                and
            (2) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) by inserting ``or suspended'' after 
                        ``revoked'' each place it appears; and
                            (ii) by inserting ``or suspension'' after 
                        ``revocation'' each place it appears;
                    (B) in paragraph (2)--
                            (i) by striking ``, or revokes'' and 
                        inserting ``, revokes, or suspends''; and
                            (ii) by striking ``or revocation'' and 
                        inserting ``, revocation, or suspension''; and
                    (C) in paragraph (3)--
                            (i) by inserting ``or suspend'' after 
                        ``revoke'' each place it appears; and
                            (ii) by striking ``or revocation'' and 
                        inserting ``, revocation, or suspension''.
    (c) Authority To Promulgate Rules.--Section 926(a) of title 18, 
United States Code, is amended, in the matter preceding paragraph (1), 
by striking ``only''.
    (d) Repeal of Riders Limiting Use of Funds To Deny Licenses Due to 
Lack of Business Activity.--
            (1) Fiscal year 2013.--The matter under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113-6; 
        127 Stat. 247) is amended by striking the sixth proviso.
            (2) Fiscal year 2012.--The matter under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2012 (Public Law 112-55; 125 Stat. 609) is 
        amended by striking the ninth proviso.

SEC. 13. INCREASED LICENSING FEES.

    (a) Fees for Licensed Importers, Manufacturers, and Dealers in 
Firearms and Importers and Manufacturers of Ammunition.--Section 923(a) 
of title 18, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000'';
                    (B) in subparagraph (B), by striking ``$50'' and 
                inserting ``$100''; and
                    (C) in subparagraph (C), by striking ``$10'' and 
                inserting ``$20'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000''; and
                    (B) in subparagraph (B), by striking ``$50'' and 
                inserting ``$100''; and
            (3) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``$1,000'' and 
                inserting ``$2,000''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$200'' and inserting 
                        ``$400''; and
                            (ii) by striking ``$90'' and inserting 
                        ``$180''.
    (b) Fees for Licensed Collectors.--Section 923(b) of title 18, 
United States Code, is amended by striking ``$10'' and inserting 
``$20''.

SEC. 14. ELIMINATION OF OBLIGATORY STAY OF EFFECTIVE DATE OF LICENSE 
              REVOCATION.

    Section 923(f)(2) of title 18, United States Code, is amended, in 
the second sentence, by striking ``shall upon the request of the holder 
of the license'' and inserting ``may, upon a showing by the holder of 
the license of good cause,''.

SEC. 15. ELIMINATION OF RELIEF FOR DEALERS INDICTED FOR A CRIME 
              PUNISHABLE BY IMPRISONMENT FOR A TERM EXCEEDING ONE YEAR.

    (a) In General.--Section 925 of title 18, United States Code, is 
amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) through (f) as 
        subsections (b) through (e), respectively.
    (b) Conforming Amendments.--
            (1) Chapter 44 of title 18, united states code.--Chapter 44 
        of title 18, United States Code, is amended--
                    (A) in section 922--
                            (i) in subsection (d), in the second 
                        sentence--
                                    (I) by striking ``licensed 
                                importer, licensed manufacturer, 
                                licensed dealer, or licensed collector 
                                who pursuant to subsection (b) of 
                                section 925 is not precluded from 
                                dealing in firearms or ammunition, or 
                                to a''; and
                                    (II) by striking ``subsection (c) 
                                of section 925'' and inserting 
                                ``section 925(b)'';
                            (ii) in subsection (l), by striking 
                        ``925(d) of this chapter'' and inserting 
                        ``925(c)''; and
                            (iii) in subsection (r), by striking 
                        ``925(d)(3) of this chapter'' and inserting 
                        ``925(c)(3)''; and
                    (B) in section 925(f), by striking ``subsection 
                (d)'' and inserting ``subsection (c)''.
            (2) Foreign military sales act.--Section 38(b)(1)(B)(i) of 
        the Foreign Military Sales Act (22 U.S.C. 2778(b)(1)(B)(i)) is 
        amended by striking ``925(e)'' and inserting ``925(d)''.
            (3) NICS improvement amendments act of 2007.--Section 
        101(c)(2)(A)(iii) of the NICS Improvement Amendments Act of 
        2007 (34 U.S.C. 40911(c)(2)(A)(iii)) is amended by striking 
        ``925(c)'' and inserting ``925(b)''.
            (4) Atomic energy act of 1954.--Section 161A(b) of the 
        Atomic Energy Act of 1954 (42 U.S.C. 2201a(b)) is amended by 
        striking ``925(d)'' and inserting ``925(c)''.

SEC. 16. ELIMINATION OF RELIEF WHILE FEDERAL DISABILITY RELIEF 
              APPLICATION PENDING.

    Section 925(b) of title 18, United States Code, as so redesignated 
by section 15(a) of this Act, is amended by striking the fourth 
sentence and inserting the following: ``This subsection shall not be 
construed to prohibit the Attorney General from, on a showing by a 
licensee of good cause, permitting the licensee to continue operations 
while an application for relief from disabilities is pending.''

SEC. 17. PRESUMPTION OF KNOWLEDGE OF STATE LAW IN SALE OF LONG GUNS TO 
              RESIDENTS OF ANOTHER STATE.

    Section 922(b)(3) of title 18, United States Code, is amended by 
striking ``in the absence of evidence to the contrary,''.

SEC. 18. INCREASED PENALTIES FOR KNOWING TRANSFER OF FIREARM WITHOUT 
              CONDUCTING A BACKGROUND CHECK.

    Section 922(t)(5) of title 18, United States Code, is amended by 
inserting before the period at the end the following: ``in the case of 
the first violation and, in the case of a subsequent violation, shall 
immediately suspend or revoke any license issued to the licensee under 
section 923 and impose on the licensee a civil fine equal to $20,000''.

SEC. 19. UNLAWFUL ACTS UPON INCURRING FEDERAL DISABILITY OR NOTICE OF 
              LICENSE SUSPENSION, REVOCATION, OR DENIED RENEWAL.

    (a) Restrictions.--Section 922 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(aa) Unlawful Acts Upon Incurring Federal Disability or Notice of 
License Suspension, Revocation or Denied Renewal.--
            ``(1) In general.--It shall be unlawful for a licensed 
        importer, licensed manufacturer, licensed dealer, licensed 
        collector, or licensed facilitator who incurs a disability 
        imposed by Federal laws with respect to the acquisition, 
        receipt, transfer, shipment, transportation, or possession of 
        firearms or ammunition during the term of a license issued 
        under this chapter or while an application to renew such a 
        license is pending, or who has been notified by the Attorney 
        General that a license issued to the licensee under this 
        chapter has been suspended or revoked or that an application of 
        the licensee to renew such a license has been denied, to--
                    ``(A) transfer a business inventory firearm--
                            ``(i) into the personal collection of the 
                        licensee; or
                            ``(ii) to any person other than a licensee 
                        under this chapter or a Federal, State, or 
                        local law enforcement agency; or
                    ``(B) receive a business inventory firearm.
            ``(2) Waiver.--Upon a showing by a licensee of good cause, 
        the Attorney General may issue a written waiver of paragraph 
        (1) if the licensee authorizes the Attorney General to inspect 
        the records and inventory of the licensee at any time to ensure 
        that the licensee is in compliance with this chapter.''.
    (b) Penalties.--Section 924(a) of title 18, United States Code, is 
amended by adding at the end the following:
    ``(9) Whoever knowingly violates section 922(aa) shall be fined 
under this title, imprisoned for not more than 1 year, or both.''.
    (c) Notice Requirement.--Section 923(f)(1) of title 18, United 
States Code, is amended, in the first sentence, by inserting before the 
period at the end the following: ``and setting forth the provisions of 
Federal law and regulation that prohibit a person not licensed under 
this chapter from engaging in the business of dealing in firearms and 
the restrictions set forth in section 922(aa)''.

SEC. 20. REGULATION OF FACILITATORS OF FIREARM TRANSFERS.

    (a) Licensing.--Section 923(a) of title 18, United States Code, is 
amended by adding at the end the following:
            ``(4) If the applicant is a facilitator of firearm sales, 
        purchases, or other transfers, a fee of $1,000 per year.''.
    (b) Completed Facilitated Sales.--Section 923 of title 18, United 
States Code, as amended by section 5, is amended by adding at the end 
the following:
    ``(n) Duties of Facilitators.--
            ``(1) In general.--A licensed facilitator shall--
                    ``(A) inform each prospective seller using the 
                commercial marketplace of the licensed facilitator that 
                any offer for firearm sales, purchases, or other 
                transfers made using the commercial marketplace may be 
                completed only with the assistance of a licensed 
                importer, licensed manufacturer, or licensed dealer, 
                who must take possession of the firearm directly from 
                the transferor for the purpose of complying with 
                section 922(t);
                    ``(B) require each prospective firearm seller using 
                the commercial marketplace of the licensed facilitator 
                to complete each firearm sale, purchase, or other 
                transfer as described in subparagraph (A); and
                    ``(C) maintain records of any sale, purchase, or 
                other transfer described in subparagraph (A), which 
                shall include--
                            ``(i) the date of the offer;
                            ``(ii) the name of the offeror;
                            ``(iii) the name and the licensee number of 
                        the licensee that will take possession of the 
                        firearm directly from the transferor; and
                            ``(iv) the model, serial number, type, and 
                        caliber or gauge of the firearm involved.
            ``(2) Advance identification of licensed dealer.--A 
        licensed facilitator may require a prospective seller, as a 
        condition of using the commercial marketplace of the licensed 
        facilitator, to, before offering a firearm for sale, identify a 
        licensed dealer that will take possession of the firearm and 
        complete the sale.
            ``(3) Licensee compliance.--On taking possession of a 
        firearm sold, purchased, or otherwise transferred in a 
        commercial marketplace of a licensed facilitator, a licensee 
        shall comply with all requirements of this chapter as if the 
        licensee were transferring the firearm from the inventory of 
        the licensee to the unlicensed transferee.''.
    (c) Liability.--Section 924(h) of title 18, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``Whoever''; and
            (2) by adding at the end the following:
    ``(2) Whoever, having accepted an offer to transfer ownership of a 
firearm using a commercial marketplace of a licensed facilitator in 
order to complete a firearm transaction as described in subsection 
(n)(1), knowingly transfers the firearm to a person not licensed under 
this chapter without a licensed importer, licensed manufacturer, or 
licensed dealer first taking possession of the firearm for the purpose 
of complying with section 922(t)--
            ``(A) except as provided in subparagraph (B), shall be 
        fined under this title, imprisoned for not more than 1 year, or 
        both; or
            ``(B) if transfer of the firearm to, or receipt of the 
        firearm by, the transferee violates subsection (d), (g), or (n) 
        of section 922, or the firearm is used to commit a crime of 
        violence (as defined in section (c)(3) of this section) or drug 
        trafficking crime (as defined in subsection (c)(2) of this 
        section), shall be fined under this title, imprisoned not more 
        than 10 years, or both.''.
    (d) Conforming Amendments.--Chapter 44 of title 18, United States 
Code, is amended--
            (1) in section 922--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``or'' at the end;
                                    (II) in subparagraph (B), by adding 
                                ``or'' at the end; and
                                    (III) by adding at the end the 
                                following:
                    ``(C) except a licensed facilitator, to engage in 
                the business of hosting a commercial marketplace in 
                which offers for firearm sales, purchases, or other 
                transfers are allowed to be made;''; and
                            (ii) in paragraph (6)--
                                    (I) by striking ``or licensed 
                                collector'' and inserting ``licensed 
                                collector, or licensed facilitator''; 
                                and
                                    (II) by striking ``or collector'' 
                                and inserting ``collector, or 
                                facilitator''; and
                    (B) in subsection (m), by striking ``or licensed 
                collector'' and inserting ``licensed collector, or 
                licensed facilitator'';
            (2) in section 923--
                    (A) in subsection (c)(1), as so designated by 
                section 12 of this Act, in the first sentence, by 
                inserting ``or facilitate firearm sales, purchases, or 
                other transfers'' before ``during the period stated in 
                the license'';
                    (B) in subsection (g)(1)(A)--
                            (i) in the first sentence, by striking 
                        ``and licensed dealer'' and inserting 
                        ``licensed dealer, and licensed facilitator''; 
                        and
                            (ii) in the last sentence, by inserting 
                        ``licensed facilitator,'' before ``or any 
                        licensed importer''; and
                    (C) in subsection (j), in the first sentence, by 
                striking ``or licensed dealer'' and inserting 
                ``licensed dealer, or licensed facilitator''; and
            (3) in section 924(a)(3), as amended by section 7--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``or licensed collector'' and 
                inserting ``licensed collector, or licensed 
                facilitator''; and
                    (B) in subparagraph (B), by striking ``or licensed 
                collector'' and inserting ``licensed collector, or 
                licensed facilitator''.

SEC. 21. DEALER AND EMPLOYEE BACKGROUND CHECKS.

    (a) Requirements.--
            (1) Background checks required before issuance or renewal 
        of dealers license.--Section 923(c)(1) of title 18, United 
        States Code, as so designated by section 12 of this Act, is 
        amended by inserting after the first sentence the following: 
        ``Notwithstanding the preceding sentence, the Attorney General 
        may not issue or renew a license unless the Attorney General 
        has contacted the national instant criminal background check 
        system established under section 103 of the Brady Handgun 
        Violence Prevention Act (34 U.S.C. 40901) to determine whether 
        it would be unlawful for the applicant, or any employee of the 
        applicant identified by the applicant on the application as 
        trusted with the possession or receipt of any firearm, to be 
        transferred or receive a firearm, and the system has notified 
        the Attorney General that the information available to the 
        system does not demonstrate that the transfer to or receipt of 
        a firearm by the applicant or any such employee would violate 
        subsection (d), (g), or (n) (as applicable) of section 922 or 
        State, local, or Tribal law where the business premises of the 
        applicant subject to the license is located.''
            (2) Background check required before firearm possession by 
        dealer employee.--Section 923(g) of title 18, United States 
        Code, as amended by section 7 of this Act, is amended by adding 
        at the end the following:
    ``(11) A licensed dealer may not allow an employee to possess a 
firearm at a premises from which the licensed dealer conducts business 
subject to license under this chapter, unless--
            ``(A) the employee is at least the minimum age required by 
        State and local law to possess or receive a firearm;
            ``(B) the licensed dealer has contacted the national 
        instant criminal background check system established under 
        section 103 of the Brady Handgun Violence Prevention Act (34 
        U.S.C. 40901) to determine whether transfer of a firearm to, or 
        receipt of a firearm by, the individual would be unlawful; and
            ``(C) the system has notified the licensee that the 
        information available to the system does not demonstrate that 
        the transfer of a firearm to, or receipt of a firearm by, the 
        individual would violate subsection (d), (g), or (n) (as 
        applicable) of section 922 or State, local, or Tribal law.''.
    (b) Authority of NICS System To Respond to Licensed Dealer Request 
for Criminal Background Check of Employee or Applicant for 
Employment.--Section 103(b)(2) of the Brady Handgun Violence Prevention 
Act (34 U.S.C. 40901(b)(2)) is amended--
            (1) in the heading, by striking ``Voluntary'' and inserting 
        ``Compulsory''; and
            (2) in subparagraph (A), by striking ``voluntarily''.
    (c) Authority of NICS System To Search National Data Exchange.--
Section 103(e)(1) of the Brady Handgun Violence Prevention Act (34 
U.S.C. 40901(e)(1)) is amended by adding at the end the following:
                    ``(L) Search of national data exchange database.--
                The system established under this section shall include 
                a search of the database of the National Data Exchange 
                when conducting a background check under this 
                section.''.

SEC. 22. LIABILITY STANDARDS.

    (a) Liability in Licensing.--Section 923 of title 18, United States 
Code, is amended--
            (1) in subsection (d)(1)(D), by striking ``willfully'' and 
        inserting ``knowingly''; and
            (2) in subsection (e), by striking ``willfully'' each place 
        it appears and inserting ``knowingly''.
    (b) Liability in Penalties.--Section 924 of title 18, United States 
Code, is amended--
            (1) in subsection (a)(1)(D), by striking ``willfully'' and 
        inserting ``knowingly''; and
            (2) in subsection (d)(1), by striking ``willful'' and 
        inserting ``knowing''.

SEC. 23. CIVIL ENFORCEMENT.

    (a) Fines for Engaging in the Business Without a License.--Section 
924(n) of title 18, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(n)''; and
            (2) by adding at the end the following:
    ``(2) If the Attorney General finds that a person has engaged in 
conduct that constitutes a violation of section 922(a)(1)(A), the 
Attorney General shall--
            ``(A) transmit to the person a written notice specifying 
        the violation, which shall include a copy of the provision of 
        law violated; and
            ``(B) impose on the person a civil penalty in an amount 
        that is not less than $2,500 and not more than $20,000.''.
    (b) Tiered Penalties for Repeated Violations of Regulations by 
Licensed Dealers.--Section 924 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(q) Penalties Relating to Violations of Regulations by Licensed 
Dealers.--
            ``(1) In general.--If the Attorney General finds a licensed 
        dealer to be in violation of a regulation prescribed under 
        section 926, the Attorney General shall--
                    ``(A) if the violation is not a result of gross 
                negligence by the licensed dealer--
                            ``(i) in the case of the first such 
                        violation by the licensed dealer, if not 
                        preceded by a violation to which subparagraph 
                        (B) applies, transmit to the licensed dealer a 
                        written notice specifying the violation, which 
                        shall include a copy of the regulation 
                        violated;
                            ``(ii) in the case of the second such 
                        violation by the licensed dealer, if not 
                        preceded by a violation to which subparagraph 
                        (B) applies, impose a civil penalty in an 
                        amount that is not less than $2,500 and not 
                        more than $20,000;
                            ``(iii) in the case of the third such 
                        violation by the licensed dealer, if not 
                        preceded by a violation to which subparagraph 
                        (B) applies, suspend the license to deal in 
                        firearms issued to the licensed dealer under 
                        this chapter until the violation ceases;
                            ``(iv) in the case of the fourth such 
                        violation by the licensed dealer, whether or 
                        not preceded by a violation to which 
                        subparagraph (B) applies, revoke the license; 
                        or
                            ``(v) in the case of any such violation by 
                        the licensed dealer, if preceded by a violation 
                        to which subparagraph (B) applies, apply the 
                        penalty authorized under this subsection that 
                        is 1 level greater in severity than the level 
                        of severity of the penalty most recently 
                        applied to the licensed dealer under this 
                        subsection; or
                    ``(B) if the violation is a result of gross 
                negligence by the licensed dealer--
                            ``(i) in the case of the first such 
                        violation by the licensed dealer, impose a 
                        civil penalty in an amount that is not less 
                        than $2,500 and not more than $20,000;
                            ``(ii) in the case of the second such 
                        violation by the licensed dealer--
                                    ``(I) impose a civil penalty in an 
                                amount equal to $20,000; and
                                    ``(II) suspend the license to deal 
                                in firearms issued to the licensed 
                                dealer under this chapter until the 
                                violation ceases; or
                            ``(iii) in the case of the third such 
                        violation by the licensed dealer, revoke the 
                        license to deal in firearms issued to the 
                        licensed dealer under this chapter.
            ``(2) Suspension of license.--In the case of any violation 
        described in paragraph (1), if the Attorney General finds that 
        the nature of the violation indicates that the continued 
        operation of a firearms business by the licensed dealer 
        presents an imminent risk to public safety, the Attorney 
        General shall, notwithstanding paragraph (1), immediately 
        suspend the license to deal in firearms issued to the licensed 
        dealer under this chapter and secure the firearms inventory of 
        the licensed dealer, until the violation ceases, unless the 
        appropriate penalty under paragraph (1) is revocation of the 
        license, in which case the Attorney General shall immediately 
        revoke the license and secure the firearms inventory of the 
        licensed dealer.''.

SEC. 24. REMOVAL OF BAR ON CIVIL PROCEEDINGS IF CRIMINAL PROCEEDINGS 
              TERMINATED.

    Section 923(f) of title 18, United States Code, is amended by 
striking paragraph (4).

SEC. 25. REPEAL OF CERTAIN LIMITATIONS.

    (a) Limitations Related to Use of Firearms Trace Data.--
            (1) Fiscal year 2012.--The matter under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated and Further Continuing 
        Appropriations Act, 2012 (18 U.S.C. 923 note; Public Law 112-
        55; 125 Stat. 609) is amended by striking the sixth proviso.
            (2) Fiscal year 2010.--The sixth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated Appropriations Act, 2010 (Public 
        Law 111-117; 123 Stat. 3128) is amended by striking ``beginning 
        in fiscal year 2010 and thereafter'' and inserting ``in fiscal 
        year 2010''.
            (3) Fiscal year 2009.--The sixth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Omnibus Appropriations Act, 2009 (Public Law 
        111-8; 123 Stat. 575) is amended by striking ``beginning in 
        fiscal year 2009 and thereafter'' and inserting ``in fiscal 
        year 2009''.
            (4) Fiscal year 2008.--The sixth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title II of 
        division B of the Consolidated Appropriations Act, 2008 (Public 
        Law 110-161; 121 Stat. 1903) is amended by striking ``beginning 
        in fiscal year 2008 and thereafter'' and inserting ``in fiscal 
        year 2008''.
            (5) Fiscal year 2006.--The sixth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title I of the 
        Science, State, Justice, Commerce, and Related Agencies 
        Appropriations Act, 2006 (Public Law 109-108; 119 Stat. 2295) 
        is amended by striking ``with respect to any fiscal year''.
            (6) Fiscal year 2005.--The sixth proviso under the heading 
        ``salaries and expenses'' under the heading ``Bureau of 
        Alcohol, Tobacco, Firearms and Explosives'' in title I of 
        division B of the Consolidated Appropriations Act, 2005 (Public 
        Law 108-447; 118 Stat. 2859) is amended by striking ``with 
        respect to any fiscal year''.
            (7) Fiscal year 2023.--Section 644 of division J of the 
        Consolidated Appropriations Resolution, 2003 (5 U.S.C. 552 
        note; Public Law 108-7; 117 Stat. 473) is amended by striking 
        ``or any other Act with respect to any fiscal year''.
    (b) Limitations Relating to Consolidating and Centralizing 
Records.--The first proviso under the heading ``salaries and expenses'' 
under the heading ``Bureau of Alcohol, Tobacco, Firearms and 
Explosives'' in title II of division B of the Consolidated and Further 
Continuing Appropriations Act, 2012 (18 U.S.C. 923 note; Public Law 
112-55; 125 Stat. 609) is amended by striking ``or hereafter''.
    (c) Requirement To Destroy Instant Criminal Background Check 
Records Within 24 Hours.--Section 511 of division B of the Consolidated 
and Further Continuing Appropriations Act, 2012 (34 U.S.C. 40901 note; 
Public Law 112-55; 125 Stat. 632) is amended--
            (1) by striking ``--'' and all that follows through 
        ``(1)''; and
            (2) by striking the semicolon and all that follows and 
        inserting a period.

SEC. 26. AUTHORITY TO HIRE ADDITIONAL INDUSTRY OPERATION INVESTIGATORS 
              FOR BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES.

    The Attorney General may hire 650 industry operation investigators 
for the Bureau of Alcohol, Tobacco, Firearms, and Explosives, to be 
distributed among the various field divisions to match the number and 
distribution of persons licensed under chapter 44 of title 18, United 
States Code, in addition to any personnel needed to carry out this Act 
and the amendments made by this Act and any industry operation 
investigators authorized by other law.

SEC. 27. REPORT ON IMPLEMENTATION OF THIS ACT.

    Not later than 2 years after the date of enactment of this Act, the 
Attorney General shall submit to Congress and publish on the website of 
the Department of Justice a written report on the implementation of 
this Act and the amendments made by this Act, including any steps 
needed to complete the implementation, which shall identify any 
additional resources that are required to--
            (1) conduct regular inspections under chapter 44 of title 
        18, United States Code; and
            (2) ensure that this Act and the amendments made by this 
        Act are enforced against noncompliant federally licensed 
        firearms dealers in a timely manner.

SEC. 28. ANNUAL LICENSED DEALER INSPECTIONS REPORT AND ANALYSIS.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, and annually thereafter, the Attorney General shall submit 
to Congress and publish on the website of the Department of Justice a 
report that contains the information described in subsection (b) with 
respect to--
            (1) the preceding 2-year period, in the case of the first 
        report; or
            (2) the preceding year, in the case of each subsequent 
        report.
    (b) Contents.--Each report under subsection (a) shall state, with 
respect to the applicable reporting period--
            (1) the number of inspections or examinations conducted of 
        Type 01, Type 02, and Type 07 Federal firearm licensees 
        (dealers, pawnbrokers, and manufacturers, respectively) by each 
        field division of the Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives, including by the number of inspections or 
        examinations of high-risk dealers and non-high-risk dealers (as 
        those terms are used in clause (ii) of section 923(g)(1)(B) of 
        title 18, United States Code, as added by section 11 of this 
        Act);
            (2) the number of security inspections under subparagraph 
        (B) of section 923(g)(6) of title 18, United States Code, as 
        added by section 11 of this Act, prompted by dealer reports of 
        lost or stolen firearms under subparagraph (A) of such section 
        923(g)(6), as so designated by section 11 of this Act, and the 
        number of follow-up security inspections conducted during the 
        6-month period following a security inspection revealing a 
        violation;
            (3) the average amount of time spent on--
                    (A) inspections or examinations of high-risk 
                dealers (as described in paragraph (1));
                    (B) inspections or examinations of non-high-risk 
                dealers (as described in paragraph (1));
                    (C) security inspections (as described in paragraph 
                (2)); and
                    (D) follow-up security inspections (as described in 
                paragraph (2)); and
            (4) an analysis of the most frequently cited violations and 
        corrective actions or penalties imposed in each inspection or 
        examination described in paragraph (1) or security inspection 
        described in paragraph (2), including--
                    (A) the number of licenses recommended to be 
                suspended or revoked;
                    (B) the number of licensees sent notices of 
                suspension or revocation;
                    (C) the number of hearings requested by licensees 
                on receipt of a notice of suspension or revocation;
                    (D) the number of suspension or revocation hearings 
                initiated during a prior 12-month period that remain 
                ongoing during the 12-month period covered by the 
                report; and
                    (E) the decision ultimately rendered in each such 
                matter by the Director of the Bureau of Alcohol, 
                Tobacco, Firearms, and Explosives.

SEC. 29. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.

    Not later than 2 years after the date of enactment of this Act, the 
Attorney General shall prescribe all regulations required to carry out 
this Act and the amendments made by this Act.
                                 <all>