[Congressional Record Volume 145, Number 28 (Tuesday, February 23, 1999)]
[Senate]
[Pages S1804-S1806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. Schumer, and Mr. Durbin):
  S. 443. A bill to regulate the sale of firearms at gun shows; to the 
Committee on the Judiciary.


                    the gun show accountability act

  Mr. LAUTENBERG. Mr. President, I rise to introduce legislation which 
will close the loophole in our gun laws which allows criminals to buy 
and sell firearms at gun shows.
  Last year, there were more than 4,400 gun shows across America. While 
most of the citizens who participate in these gun shows are law-
abiding, there is mounting evidence that criminals are using these 
events for more sinister purposes.
  The problem is that current law allows unlicensed dealers to sell 
countless firearms without any background checks on the buyer or 
documentation of the sales. Criminals are aware of this loophole and 
exploit it. A study by the Illinois State Police showed at least 25 
percent of illegally trafficked weapons came from gun shows. Militia 
members including Timothy McVeigh and Michael Fortier used gun shows to 
easily sell previously stolen guns and obtain a ready supply of 
firearms in undocumented transactions.
  Additionally, the gun show loophole is unfair to law-abiding Federal 
Firearms Licensees. When they participate in a gun show, they must 
comply with all background checks and record-keeping, while an 
unlicensed dealer at the next table can make unlimited sales to any 
person without the same requirements. The ease of these sales

[[Page S1805]]

drains significant business from law-abiding gun store owners and other 
licensees, and penalizes them for following the law. Recognizing this 
problem, the National Alliance of Stocking Gun Dealers recently 
endorsed tighter regulations of gun shows: ``[W]e want to make it clear 
that persons attending Gun Shows to skirt laws and acquire guns for 
criminal use are unwelcome patrons of these events and diminish their 
purpose and quality.''
  During the 105th Congress, I introduced the Gun Show Sunshine Act in 
an effort to address this issue. Subsequently, President Clinton 
directed the Attorney General to study gun show firearm transactions 
and make recommendations to crack down on illegal sales.
  The Administration's recently released report confirmed what other 
law enforcement officials have been saying: gun shows are becoming 
illegal arms bazaars, where criminals buy and sell deadly weapons with 
impunity. The report looked at 314 recent Alcohol, Tobacco, and 
Firearms (ATF) investigations involving 54,000 firearms linked to gun 
shows. Nearly half of the investigations involved felons buying or 
selling firearms, and in more than one-third of the cases, the firearms 
in question were known to have been used in subsequent crimes.
  Today, I am introducing legislation that proposes a simple approach 
to the gun show loophole--no background check, no gun, no exceptions. 
This measure incorporates the recommendations made by the Department of 
Justice and the Treasury Department and I appreciate the 
Administration's support.
  This bill would take several steps designed to make it harder for 
criminals to buy and sell weapons at gun shows. It would require gun 
show promoters to register and notify ATF of all gun shows, maintain 
and report a list of vendors at the show, and ensure that all vendors 
acknowledge receipt of information about their legal obligations. Also, 
it would require that any firearms sales go through a Federal Firearms 
Licensee (FFL). The idea is that if an unlicensed person was selling a 
weapon, they would use a FFL at the gun show to complete the 
transaction. The FFL would be responsible for conducting a Brady check 
on the purchaser and maintaining records of the transactions. The FFL 
could charge a fee for the service.
  In order to make it easier for law enforcement to bring criminals to 
justice, the bill would also require FFLs to submit information 
necessary to trace all firearms transferred at gun shows to ATF's 
National Tracing Center, including the manufacturer/improper, model, 
and serial number of the firearms.
  These reasonable requirements will make our streets safer by making 
it harder for criminals to get guns. At the same time, these 
regulations will not unduly burden those law-abiding Americans who 
enjoy gun shows.
  I urge my colleagues to join with me in this effort to close the gun 
show loophole. We must do more to prevent the easy access to firearms 
which fuels the gun violence across the country.
  I ask unanimous consent that a copy of the legislation be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 443

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Gun Show Accountability 
     Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) more than 4,400 traditional gun shows are held annually 
     across the United States, attracting thousands of attendees 
     per show and hundreds of Federal firearms licensees and 
     nonlicensed firearms sellers;
       (2) traditional gun shows, as well as flea markets and 
     other organized events, at which a large number of firearms 
     are offered for sale by Federal firearms licensees and 
     nonlicensed firearms sellers, form a significant part of the 
     national firearms market;
       (3) firearms and ammunition that are exhibited or offered 
     for sale or exchange at gun shows, flea markets, and other 
     organized events move easily in and substantially affect 
     interstate commerce;
       (4) in fact, even before a firearm is exhibited or offered 
     for sale or exchange at a gun show, flea market, or other 
     organized event, the gun, its component parts, ammunition, 
     and the raw materials from which it is manufactured have 
     moved in interstate commerce;
       (5) gun shows, flea markets, and other organized events at 
     which firearms are exhibited or offered for sale or exchange, 
     provide a convenient and centralized commercial location at 
     which firearms may be bought and sold anonymously, often 
     without background checks and without records that enable gun 
     tracing;
       (6) at gun shows, flea markets, and other organized events 
     at which guns are exhibited or offered for sale or exchange, 
     criminals and other prohibited persons obtain guns without 
     background checks and frequently use guns that cannot be 
     traced to later commit crimes;
       (7) many persons who buy and sell firearms at gun shows, 
     flea markets, and other organized events cross State lines to 
     attend these events and engage in the interstate 
     transportation of firearms obtained at these events;
       (8) gun violence is a pervasive, national problem that is 
     exacerbated by the availability of guns at gun shows, flea 
     markets, and other organized events;
       (9) firearms associated with gun shows have been 
     transferred illegally to residents of another State by 
     Federal firearms licensees and nonlicensed firearms sellers, 
     and have been involved in subsequent crimes including drug 
     offenses, crimes of violence, property crimes, and illegal 
     possession of firearms by felons and other prohibited 
     persons; and
       (10) Congress has the power, under the interstate commerce 
     clause and other provisions of the Constitution of the United 
     States, to ensure, by enactment of this Act, that criminals 
     and other prohibited persons do not obtain firearms at gun 
     shows, flea markets, and other organized events.

     SEC. 3. EXTENSION OF BRADY BACKGROUND CHECKS TO GUN SHOWS.

       (a) Definitions.--Section 921(a) of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(35) Gun show.--The term `gun show' means any event--
       ``(A) at which 50 or more firearms are offered or exhibited 
     for sale, transfer, or exchange, if 1 or more of the firearms 
     has been shipped or transported in, or otherwise affects, 
     interstate or foreign commerce; and
       ``(B) at which 2 or more persons are offering or exhibiting 
     1 or more firearms for sale, transfer, or exchange.
       ``(36) Gun show promoter.--The term `gun show promoter' 
     means any person who organizes, plans, promotes, or operates 
     a gun show.
       ``(37) Gun show vendor.--The term `gun show vendor' means 
     any person who exhibits, sells, offers for sale, transfers, 
     or exchanges 1 or more firearms at a gun show, regardless of 
     whether or not the person arranges with the gun show promoter 
     for a fixed location from which to exhibit, sell, offer for 
     sale, transfer, or exchange 1 or more firearms.''
       (b) Regulation of Firearms Transfers at Gun Shows.--
       (1) In general.--Chapter 44 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 931. Regulation of firearms transfers at gun shows

       ``(a) Registration of Gun Show Promoters.--It shall be 
     unlawful for any person to organize, plan, promote, or 
     operate a gun show unless that person--
       ``(1) registers with the Secretary in accordance with 
     regulations promulgated by the Secretary; and
       ``(2) pays a registration fee, in an amount determined by 
     the Secretary.
       ``(b) Responsibilities of Gun Show Promoters.--It shall be 
     unlawful for any person to organize, plan, promote, or 
     operate a gun show unless that person--
       ``(1) not later that 30 days before commencement of the gun 
     show, notifies the Secretary of the date, time, duration, and 
     location of the gun show and any other information concerning 
     the gun show as the Secretary may require by regulation;
       ``(2) not later than 72 hours before commencement of the 
     gun show, submits to the Secretary an updated list of all gun 
     show vendors planning to participate in the gun show and any 
     other information concerning such vendors as the Secretary 
     may require by regulation;
       ``(3) before commencement of the gun show, verifies the 
     identity of each gun show vendor participating in the gun 
     show by examining a valid identification document (as defined 
     in section 1028(d)(1)) of the vendor containing a photograph 
     of the vendor;
       ``(4) before commencement of the gun show, requires each 
     gun show vendor to sign--
       ``(A) a ledger with identifying information concerning the 
     vendor; and
       ``(B) a notice advising the vendor of the obligations of 
     the vendor under this chapter; and
       ``(5) notifies each person who attends the gun show of the 
     requirements of this chapter, in accordance with such 
     regulations as the Secretary shall prescribe;
       ``(6) not later than 5 days after the last day of the gun 
     show, submits to the Secretary a copy of the ledger and 
     notice described in paragraph (4); and
       ``(7) maintains a copy of the records described in 
     paragraphs (2) through (4) at the permanent place of business 
     of the gun show promoter for such period of time and in such 
     form as the Secretary shall require by regulation.

[[Page S1806]]

       ``(c) Responsibilities of Transferors Other Than 
     Licensees.--
       ``(1) In general.--If any part of a firearm transaction 
     takes place at a gun show, it shall be unlawful for any 
     person who is not licensed under this chapter to transfer a 
     firearm to another person who is not licensed under this 
     chapter, unless the firearm is transferred through a licensed 
     importer, licensed manufacturer, or licensed dealer in 
     accordance with subsection (e).
       ``(2) Criminal background checks.--A person who is subject 
     to the requirement of paragraph (1)--
       ``(A) shall not transfer the firearm to the transferee 
     until the licensed importer, licensed manufacturer, or 
     licensed dealer through which the transfer is made under 
     subsection (e) makes the notification described in subsection 
     (e)(3)(A); and
       ``(B) notwithstanding subparagraph (A), shall not transfer 
     the firearm to the transferee if the licensed importer, 
     licensed manufacturer, or licensed dealer through which the 
     transfer is made under subsection (e) makes the notification 
     described in subsection (e)(3)(B).
       ``(d) Responsibilities of Transferees Other Than 
     Licensees.--
       ``(1) In general.--If any part of a firearm transaction 
     takes place at a gun show, it shall be unlawful for any 
     person who is not licensed under this chapter to receive a 
     firearm from another person who is not licensed under this 
     chapter, unless the firearm is transferred through a licensed 
     importer, licensed manufacturer, or licensed dealer in 
     accordance with subsection (e).
       ``(2) Criminal background checks.--A person who is subject 
     to the requirement of paragraph (1)--
       ``(A) shall not receive the firearm from the transferor 
     until the licensed importer, licensed manufacturer, or 
     licensed dealer through which the transfer is made under 
     subsection (e) makes the notification described in subsection 
     (e)(3)(A); and
       ``(B) notwithstanding subparagraph (A), shall not receive 
     the firearm from the transferor if the licensed importer, 
     licensed manufacturer, or licensed dealer through which the 
     transfer is made under subsection (e) makes the notification 
     described in subsection (e)(3)(B).
       ``(e) Responsibilities of Licensees.--A licensed importer, 
     licensed manufacturer, or licensed dealer who agrees to 
     assist a person who is not licensed under this chapter in 
     carrying out the responsibilities of that person under 
     subsection (c) or (d) with respect to the transfer of a 
     firearm shall--
       ``(1) enter such information about the firearm as the 
     Secretary may require by regulation into a separate bound 
     record;
       ``(2) record the transfer on a form specified by the 
     Secretary;
       ``(3) comply with section 922(t) as if transferring the 
     firearm from the inventory of the licensed importer, licensed 
     manufacturer, or licensed dealer to the designated transferee 
     (although a licensed importer, licensed manufacturer, or 
     licensed dealer complying with this subsection shall not be 
     required to comply again with the requirements of section 
     922(t) in delivering the firearm to the nonlicensed 
     transferor), and notify the nonlicensed transferor and the 
     nonlicensed transferee--
       ``(A) of such compliance; and
       ``(B) if the transfer is subject to the requirements of 
     section 922(t)(1), of any receipt by the licensed importer, 
     licensed manufacturer, or licensed dealer of a notification 
     from the national instant criminal background check system 
     that the transfer would violate section 922 or would violate 
     State law;
       ``(4) not later than 10 days after the date on which the 
     transfer occurs, submit to the Secretary a report of the 
     transfer, which report--
       ``(A) shall be on a form specified by the Secretary by 
     regulation; and
       ``(B) shall not include the name of or other identifying 
     information relating to any person involved in the transfer 
     who is not licensed under this chapter;
       ``(5) if the licensed importer, licensed manufacturer, or 
     licensed dealer assists a person other than a licensee in 
     transferring, at 1 time or during any 5 consecutive business 
     days, 2 or more pistols or revolvers, or any combination of 
     pistols and revolvers totaling 2 or more, to the same 
     nonlicensed person, in addition to the reports required under 
     paragraph (4), prepare a report of the multiple transfers, 
     which report shall be--
       ``(A) prepared on a form specified by the Secretary; and
       ``(B) not later than the close of business on the date on 
     which the transfer occurs, forwarded to--
       ``(i) the office specified on the form described in 
     subparagraph (A); and
       ``(ii) the appropriate State law enforcement agency of the 
     jurisdiction in which the transfer occurs; and
       ``(6) retain a record of the transfer as part of the 
     permanent business records of the licensed importer, licensed 
     manufacturer, or licensed dealer.
       ``(f) Records of Licensee Transfers.--If any part of a 
     firearm transaction takes place at a gun show, each licensed 
     importer, licensed manufacturer, and licensed dealer who 
     transfers 1 or more firearms to a person who is not licensed 
     under this chapter shall, not later than 10 days after the 
     date on which the transfer occurs, submit to the Secretary a 
     report of the transfer, which report--
       ``(1) shall be in a form specified by the Secretary by 
     regulation;
       ``(2) shall not include the name of or other identifying 
     information relating to the transferee; and
       ``(3) shall not duplicate information provided in any 
     report required under subsection (e)(4).
       ``(g) Firearm Transaction Defined.--In this section, the 
     term `firearm transaction' includes the exhibition, sale, 
     offer for sale, transfer, or exchange of a firearm.''.
       (2) Penalties.--Section 924(a) of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(7)(A) Whoever knowingly violates section 931(a) shall be 
     fined under this title, imprisoned not more than 5 years, or 
     both.
       ``(B) Whoever knowingly violates subsection (b) or (c) of 
     section 931, shall be--
       ``(i) fined under this title, imprisoned not more than 2 
     years, or both; and
       ``(ii) in the case of a second or subsequent conviction, 
     such person shall be fined under this title, imprisoned not 
     more than 5 years, or both.
       ``(C) Whoever willfully violates section 931(d), shall be--
       ``(i) fined under this title, imprisoned not more than 2 
     years, or both; and
       ``(ii) in the case of a second or subsequent conviction, 
     such person shall be fined under this title, imprisoned not 
     more than 5 years, or both.
       ``(D) Whoever knowingly violates subsection (e) or (f) of 
     section 931 shall be fined under this title, imprisoned not 
     more than 5 years, or both.
       ``(E) In addition to any other penalties imposed under this 
     paragraph, the Secretary may, with respect to any person who 
     knowingly violates any provision of section 931--
       ``(i) if the person is registered pursuant to section 
     931(a), after notice and opportunity for a hearing, suspend 
     for not more than 6 months or revoke the registration of that 
     person under section 931(a); and
       ``(ii) impose a civil fine in an amount equal to not more 
     than $10,000.''.
       (3) Technical and conforming amendments.--Chapter 44 of 
     title 18, United States Code, is amended--
       (A) in the chapter analysis, by adding at the end the 
     following:

``931. Regulation of firearms transfers at gun shows.''; and
       (B) in the first sentence of section 923(j), by striking 
     ``a gun show or event'' and inserting ``an event''; and
       (c) Inspection Authority.--Section 923(g)(1) is amended by 
     adding at the end the following:
       ``(E) Notwithstanding subparagraph (B), the Secretary may 
     enter during business hours the place of business of any gun 
     show promoter and any place where a gun show is held for the 
     purposes of examining the records required by sections 923 
     and 931 and the inventory of licensees conducting business at 
     the gun show. Such entry and examination shall be conducted 
     for the purposes of determining compliance with this chapter 
     by gun show promoters and licensees conducting business at 
     the gun show and shall not require a showing of reasonable 
     cause or a warrant.''.
       (d) Increased Penalties for Serious Recordkeeping 
     Violations by Licensees.--Section 924(a)(3) of title 18, 
     United States Code, is amended to read as follows:
       ``(3)(A) Except as provided in subparagraph (B), any 
     licensed dealer, licensed importer, licensed manufacturer, or 
     licensed collector who knowingly makes any false statement or 
     representation with respect to the information required by 
     this chapter to be kept in the records of a person licensed 
     under this chapter, or violates section 922(m) shall be fined 
     under this title, imprisoned not more than 1 year, or both.
       ``(B) If the violation described in subparagraph (A) is in 
     relation to an offense--
       ``(i) under paragraph (1) or (3) of section 922(b), such 
     person shall be fined under this title, imprisoned not more 
     than 5 years, or both; or
       ``(ii) under subsection (a)(6) or (d) of section 922, such 
     person shall be fined under this title, imprisoned not more 
     than 10 years, or both.''.
       (e) Increased Penalties for Violations of Criminal 
     Background Check Requirements.--
       (1) Penalties.--Section 924 of title 18, United States 
     Code, is amended--
       (A) in paragraph (5), by striking ``subsection (s) or (t) 
     of section 922'' and inserting ``section 922(s)''; and
       (B) by adding at the end the following:
       ``(8) Whoever knowingly violates section 922(t) shall be 
     fined under this title, imprisoned not more than 5 years, or 
     both.''.
       (2) Elimination of certain elements of offense.--Section 
     922(t)(5) of title 18, United States Code, is amended by 
     striking ``and, at the time'' and all that follows through 
     ``State law''.
       (f) Effective Date.--This section and the amendments made 
     by this section shall take effect 180 days after the date of 
     enactment of this Act.
                                 ______