[Congressional Record Volume 142, Number 11 (Friday, January 26, 1996)]
[Senate]
[Pages S505-S506]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. THOMPSON:
  S. 1536. A bill to amend title 18, United States Code, to permit 
Federal firearms licenses to conduct firearms business with other such 
licensees at out-of-State gun shows; to the Committee on the Judiciary.


           THE FIREARMS DEALERS REGULATORY RELIEF ACT OF 1996

  Mr. THOMPSON. Mr. President, today I am introducing legislation that 
will serve to correct and clarify section 923 of title 18 of the United 
States Code affecting licensed firearms dealers. The bill amends the 
United States Code to permit the 200,000 Federal firearms licensees to 
conduct firearms business with other licensees at out-of-State gun 
shows.
  This legislation is needed to address the problem that federally 
licensed gun dealers have when they buy, sell, or trade high-end 
collector's arms at out-of-State gun shows. Most of these firearms are 
in the $2,000 to $10,000 range and are not the target of illegal arms 
traffickers. Under current law, when licensed dealers meet at an out-
of-State gun show and conduct business, they must return home and ship 
the firearms via common carrier from their respective States of 
residence. In doing so, the dealers take great risk of loss, theft, or 
damage and great expense of shipping and insurance of what may be one-
of-a-kind items.
  The Bureau of Alcohol, Tobacco and Firearms, [BATF], has indicated 
that they would be willing to work with us ``to enact legislation which 
will reduce the regulatory burden on the legitimate firearms industry 
while maintaining adequate controls to combat the criminal misuse of 
firearms.'' They said they would have changed the regulations to allow 
these types of commerce if not for the prohibitions that they interpret 
to be in the law. I welcome this spirit of cooperation.
  This bill would make Congress' intent clear to the BATF that Federal 
firearms license holders are not the source of illegal gun trafficking. 
Federal firearms license [FFL] holders are already closely regulated by 
the Bureau as legitimate businesses. If a person is responsible enough 
to obtain a Federal firearms license in Tennessee, then he is 
responsible enough to conduct business in Kentucky, North Carolina, or 
California. The BATF already recognizes this fact but, because of the 
way the current law is written, it must, nonetheless, enforce the 
byzantine route to conduct business.
  All those concerned by the illegal use of firearms should support 
this bill, as direct transfer of firearms will improve the atmosphere 
ensuring that all guns will be recorded on dealers' books, thereby 
providing law enforcement agencies the records they need when firearms 
are used illegally.

[[Page S506]]

  This bill has the support of the Collector Arms Dealer's Association 
which represents 50,000 gun dealers and collectors.
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