[Congressional Record Volume 147, Number 66 (Tuesday, May 15, 2001)]
[Senate]
[Pages S4953-S4957]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself, Mr. Lieberman, Mr. Schumer, Mr. 
        DeWine, and Mr. Carper):
  S. 890. A bill to require criminal background checks on all firearms 
transactions occurring at events that provide a venue for the sale, 
offer for sale, transfer, or exchange of firearms, and to provide 
additional resources for gun crime enforcement; to the Committee on the 
Judiciary.
  Mr. McCAIN. Mr. President, I rise today to introduce legislation to 
finally close what has become known as the ``gun show loophole'' and 
provide more resources to prosecute violations of gun laws. This bill, 
``The Gun Show Loophole Closing and Gun Law Enforcement Act of 2001,'' 
stops criminals from evading a background check while respecting the 
rights of individuals who enjoy attending and purchasing firearms at 
public gun show events and helps puts criminals who use guns behind 
bars. I am pleased to have as cosponsors Senators Lieberman, Schumer, 
DeWine, and Carper.
  Since the Brady law went into effect, Federal law requires anyone 
buying a gun at a gun store to undergo a background check, but the law 
does not apply to private individuals selling guns, such as at gun 
shows. At gun shows, both licensed and unlicensed gun sellers offer 
guns for sale. At tables operated by licensed dealers, buyers must go 
through a background check; at tables operated by private sellers 
federal law requires no background check, and 32 states do not require 
such checks either.
  Criminals and gun traffickers have figured this out. Gun shows are 
the second leading source of illegal guns recovered in gun trafficking 
investigations. According to a recent report by Americans for Gun 
Safety, ``the states that do not require background checks at gun shows 
are flooding the rest of the nation with crime guns.'' While 95 percent 
of buyers are cleared within two hours, the 5 percent who are not are 
20 times more likely to be a prohibited purchaser. Background checks 
are an essential part of keeping guns from criminals and other 
prohibited individuals.
  This gun show bill will require background checks at each of the 
4,500 gun shows that occur every year. It does so in a way that is 
balanced and protects the rights of those who enjoy gun shows. It is 
the first gun safety legislation that is genuinely bipartisan and it is 
the only bill that creates real incentives for states to improve their 
criminal history records in order to make the National Instant Check 
System, NICS, faster and more accurate. And this bill contains no 
provisions that are designed to hurt legitimate gun show business.
  This bill eliminates the confusing definition of previous bills and 
defines a gun show as any event where at least 75 guns are available 
for sale. This bill corrects a flaw in previous bills and excludes from 
background checks the sale of a gun either from the seller's home or to 
an immediate family member.
  The sticking point in previous failed gun show bills was over the 
maximum time allowed to complete a background check: 3 business days, 
which is current law for licensed dealers, or a shorter time due to the 
transience of gun shows.
  This bill creates an innovative compromise. For the first three years 
after the bill becomes law, it extends current law to gun shows: 3 
business days. But after three years, states may apply for a waiver 
from the U.S. Attorney General to reduce the maximum wait to conclude a 
background check for sales between unlicensed individuals at gun shows 
to 24 hours, but only when that state has automated its records may a 
waiver be granted so that a shortened time period won't allow criminals 
and other illegal buyers to get guns. It creates accountability so that 
states can only receive this waiver when at least 95 percent of their 
disqualifying records dating back 30 years are computerized.
  During the first three years, three business days is the maximum time 
it can take to run a check for unlicensed sellers. If, after those 
three business

[[Page S4954]]

days the buyer has not been denied, he or she can purchase the gun. It 
is not a waiting period; if you clear the system, you immediately get 
your gun. If, after three years, a state has sufficiently computerized 
their records, 24 hours is the new maximum time it can take to run a 
check for unlicensed sellers.
  Background checks do not hurt gun show business in any way. For 
example, Pennsylvania currently requires background checks for all gun 
sales and hosts the second most gun shows in the Nation, hundreds every 
year. And unlike previous bills, this bill creates no new onerous 
reporting requirements for gun sales at gun shows but requires only the 
same paperwork required for gun sales from a licensed gun store.
  This bill will reduce crime by providing for tougher enforcement of 
current gun laws. This bill adds new ATF agents and gun crime 
prosecutors, expands Project Exile, calls for more resources for gun 
tracing and more research into new ``smart gun" technologies, and 
provides much needed money for states to automate their records.
  Recently, the States of Oregon and Colorado overwhelmingly passed 
statewide referenda closing the gun show loophole. I wholeheartedly 
supported those efforts. Given the overwhelming support that the people 
of these two states provided to closing the gun show loophole, I think 
it is time that we have a national requirement for background checks 
for all sales at gun shows. In the end, it will require parity between 
gun stores and gun shows, help stop criminals from getting guns on the 
black market, reduce the interstate trafficking of guns, and will not 
harm gun show operators.
  I do not view my stance on the gun show loophole as inconsistent with 
my twenty-year long Congressional voting record on gun-related issues. 
I will always be a strong defender of law-abiding Americans' Second 
Amendment rights, but with rights, come responsibilities. And we have a 
responsibility to help keep guns out of the hands of criminals while 
protecting the rights of honest, law-abiding citizens.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 890

       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 Loophole Closing 
     and Gun Law Enforcement Act of 2001''.

             TITLE I--GUN SHOW LOOPHOLE CLOSING ACT OF 2001

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Gun Show Loophole Closing 
     Act of 2001''.

     SEC. 102. DEFINITIONS.

       Section 921(a) of title 18, United States Code, is amended 
     by adding at the end the following:
       ``(35) Special firearms event.--The term `special firearms 
     event'--
       ``(A) means any event at which 75 or more firearms are 
     offered or exhibited for sale or exchange, if 1 or more of 
     the firearms has been shipped or transported in, or otherwise 
     affects, interstate or foreign commerce; and
       ``(B) does not include an offer or exhibit of firearms for 
     sale or exchange by an individual from the personal 
     collection of that individual, at the private residence of 
     that individual, if the individual is not required to be 
     licensed under sections 923 and 931.
       ``(36) Special firearms event frequent operator.--The term 
     `special firearms event frequent operator' means any person 
     who operates 2 or more special firearms events in a 6 month 
     period.
       ``(37) Special firearms event infrequent operator.--The 
     term `special firearms event infrequent operator' means any 
     person who operates not more than 1 special firearms event in 
     a 6 month period.
       ``(38) Special firearms event licensee.--The term `special 
     firearms event licensee' means any person who has obtained 
     and holds a valid license in compliance with section 931(d) 
     and who is authorized to contact the national instant 
     criminal background check system on behalf of another 
     individual who is not licensed under this chapter for the 
     purpose of conducting a background check for a potential 
     firearms transfer at a special firearms event in accordance 
     with section 931(c).
       ``(39) Special firearms event vendor.--The term `special 
     firearms event vendor' means any person who is not required 
     to be licensed under section 923, who exhibits, sells, offers 
     for sale, transfers, or exchanges 1 or more firearms at a 
     special firearms event, regardless of whether or not the 
     person arranges with the special firearms event promoter for 
     a fixed location from which to exhibit, sell, offer for sale, 
     transfer, or exchange 1 or more firearms.''.

     SEC. 103. REGULATION OF FIREARMS TRANSFERS AT SPECIAL 
                   FIREARMS EVENTS.

       (a) 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 special 
       firearms events

       ``(a) Special Firearms Event Operators.--
       ``(1) Registration of special firearms event operators.--
       ``(A) In general.--It shall be unlawful for any person to 
     operate a special firearms event unless that person registers 
     with the Secretary in accordance with regulations promulgated 
     by the Secretary.
       ``(B) Fees.--The Secretary shall be prohibited from 
     imposing or collecting any fee from special firearms event 
     operators in connection with the registration requirement in 
     subparagraph (A).
       ``(2) Responsibilities of special firearms events frequent 
     operators.--It shall be unlawful for a special firearms 
     events frequent operator to organize, plan, promote, or 
     operate a special firearms event unless that operator--
       ``(A) has an annual operating license for special firearms 
     events frequent operators issued by the Secretary pursuant to 
     regulations promulgated by the Secretary;
       ``(B) not later than 30 days before commencement of the 
     special firearms event, notifies the Secretary of the date, 
     time, duration, and location of the special firearms event, 
     the vendors planning to participate, and any other 
     information concerning the special firearms event as the 
     Secretary may require by regulation;
       ``(C) not later than 72 hours before commencement of the 
     special firearms event, submits to the Secretary an updated 
     list of all special firearms event vendors planning to 
     participate, and any other information concerning such 
     vendors as the Secretary may require by regulation;
       ``(D) before commencement of the special firearms event, or 
     in the case of a vendor who arrives after the commencement of 
     the event, upon the arrival of the vendor, verifies the 
     identity of each special firearms event vendor participating 
     in the special firearms event by examining a valid 
     identification document (as defined in section 1028(d)(2)) of 
     the vendor containing a photograph of the vendor;
       ``(E) before commencement of the special firearms event, or 
     in the case of a vendor who arrives after the commencement of 
     the event, upon the arrival of the vendor, requires each 
     special firearms event vendor to sign--
       ``(i) a ledger with identifying information concerning the 
     vendor; and
       ``(ii) a notice advising the vendor of the obligations of 
     the vendor under this chapter;
       ``(F) notifies each person who attends the special firearms 
     event of the requirements of this chapter, in accordance with 
     such regulations as the Secretary shall prescribe;
       ``(G) not later than 5 days after the last day of the 
     special firearms event, submits to the Secretary a copy of 
     the ledger and notice described in subparagraph (E); and
       ``(H) maintains a copy of the records described in 
     subparagraphs (C) through (E) at the permanent place of 
     business of the operator for such period of time and in such 
     form as the Secretary shall require by regulation.
       ``(3) Responsibilities of special firearms events 
     infrequent operators.--It shall be unlawful for a special 
     firearms event infrequent operator to organize, plan, 
     promote, or operate a special firearms event unless that 
     person--
       ``(A) not later that 30 days before commencement of the 
     special firearms event, notifies the Secretary of the date, 
     time, duration, and location of the special firearms event;
       ``(B) not later than 72 hours before commencement of the 
     special firearms event, submits to the Secretary a list of 
     all special firearms event vendors planning to participate in 
     the special firearms event and any other information 
     concerning such vendors as the Secretary may require by 
     regulation;
       ``(C) before commencement of the special firearms event, or 
     in the case of a vendor who arrives after the commencement of 
     the event, upon the arrival of the vendor, verifies the 
     identity of each special firearms event vendor participating 
     in the special firearms event by examining a valid 
     identification document (as defined in section 1028(d)(2)) of 
     the vendor containing a photograph of the vendor;
       ``(D) before commencement of the special firearms event, or 
     in the case of a vendor who arrives after the commencement of 
     the event, upon the arrival of the vendor, requires each 
     special firearms event vendor to sign--
       ``(i) a ledger with identifying information concerning the 
     vendor; and
       ``(ii) a notice advising the vendor of the obligations of 
     the vendor under this chapter;
       ``(E) notifies each person who attends the special firearms 
     event of the requirements of this chapter, in accordance with 
     such regulations as the Secretary shall prescribe;
       ``(F) not later than 5 days after the last day of the 
     special firearms event, submits to the Secretary a copy of 
     the ledger and notice described in subparagraph (D); and
       ``(G) maintains a copy of the records described in 
     subparagraphs (B) through (D) at the permanent place of 
     business of the special firearms event promoter for such 
     period

[[Page S4955]]

     of time and in such form as the Secretary shall require by 
     regulation.
       ``(b) Responsibilities of Transferors Other Than 
     Licensees.--
       ``(1) In general.--If any part of a firearm transaction 
     takes place at a special firearms event, or on the curtilage 
     of the event, 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, licensed dealer, or a special firearms event 
     licensee in accordance with subsection (c).
       ``(2) Criminal background checks.--A person who is subject 
     to the requirement of paragraph (1) shall not--
       ``(A) transfer the firearm to the transferee until the 
     licensed importer, licensed manufacturer, licensed dealer, or 
     a special firearms event licensee through which the transfer 
     is made makes the notification described in subsection 
     (c)(2)(A); or
       ``(B) transfer the firearm to the transferee if the person 
     has been notified under subsection (c)(2)(B) that the 
     transfer would violate section 922 or would violate State 
     law.
       ``(3) Absence of recordkeeping requirements.--Nothing in 
     this section shall permit or authorize the Secretary to 
     impose recordkeeping requirements on any nonlicensed special 
     firearms event vendor.
       ``(c) Responsibilities of Licensees.--A licensed importer, 
     licensed manufacturer, licensed dealer, or special firearms 
     event licensee who agrees to assist a person who is not 
     licensed under this chapter in carrying out the 
     responsibilities of that person under subsection (b) with 
     respect to the transfer of a firearm shall--
       ``(1) except as provided in paragraph (2), 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);
       ``(2) not later than 3 business days (meaning a day on 
     which State offices are open), or if the event is held in a 
     State that has been certified by the Attorney General under 
     section 104 of the Gun Show Loophole Closing Act of 2001, not 
     later than 24 hours (or 3 business days if additional 
     information is required in order to verify disqualifying 
     information from a State that has not been certified by the 
     Attorney General) notify the nonlicensed transferor and the 
     nonlicensed transferee--
       ``(A) of any response from the national criminal background 
     check system, or if the licensee has had no response from the 
     national criminal background check system within the time 
     period set forth in paragraph (2), notify the nonlicensed 
     transferor that no response has been received and that the 
     transfer may proceed; and
       ``(B) 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;
       ``(3) in the case of a transfer of 2 or more firearms on a 
     single day to a person other than a licensee, prepare a 
     report of the multiple transfers, which report shall be--
       ``(A) on a form specified by the Secretary; and
       ``(B) not later than the close of business on the date on 
     which the multiple 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
       ``(4) comply with all record keeping requirements under 
     this chapter.
       ``(d) Special Firearms Event License.--
       ``(1) In general.--The Secretary shall issue a special 
     firearms event license to a person who submits an application 
     for a special firearms event license in accordance with this 
     subsection.
       ``(2) Application.--The application required by paragraph 
     (1) shall be approved if--
       ``(A) the applicant is 21 years of age or over;
       ``(B) the application includes a photograph and the 
     fingerprints of the applicant;
       ``(C) the applicant (including, in the case of a 
     corporation, partnership, or association, any individual 
     possessing, directly or indirectly, the power to direct or 
     cause the direction of the management and policies of the 
     corporation, partnership, or association) is not prohibited 
     from transporting, shipping, or receiving firearms or 
     ammunition in interstate or foreign commerce under subsection 
     (g) or (n) of section 922;
       ``(D) the applicant has not willfully violated any of the 
     provisions of this chapter or regulations issued thereunder;
       ``(E) the applicant has not willfully failed to disclose 
     any material information required, or has not made any false 
     statement as to any material fact, in connection with his 
     application; and
       ``(F) the applicant certifies that--
       ``(i) the applicant meets the requirements of subparagraphs 
     (A) through (D) of section 923(d)(1);
       ``(ii) the business to be conducted under the license is 
     not prohibited by State or local law in the place where the 
     licensed premises is located; and
       ``(iii) the business will not be conducted under the 
     license until the requirements of State and local law 
     applicable to the business have been met.
       ``(3) Application and approval.--
       ``(A) In general.--On approval of an application as 
     provided in this subsection and payment by the applicant of a 
     fee of $200 for 3 years, and upon renewal of valid 
     registration a fee of $90 for 3 years, the Secretary shall 
     issue to the applicant an instant check registration, and 
     advise the Attorney General of that registration.
       ``(B) NICS.--A special firearms licensee may contact the 
     national instant criminal background check system established 
     under section 103 of the Brady Handgun Violence Prevention 
     Act (18 U.S.C. 922 note) for information about any individual 
     desiring to obtain a firearm at a gun show from any special 
     firearms event vendor who has requested the assistance of the 
     registrant in complying with subsection (c) with respect to 
     the transfer of the firearm, during the 3-year period that 
     begins with the date the registration is issued.
       ``(4) Requirements.--The requirements for a special 
     firearms event licensee shall not exceed the requirements for 
     a licensed dealer and the record keeping requirements shall 
     be the same.
       ``(5) Restrictions.--
       ``(A) Background checks.--A special firearms event licensee 
     may have access to the national instant criminal background 
     check system to conduct a background check only at a special 
     firearms event and only on behalf of another person.
       ``(B) Transfer of firearms.--A special firearms event 
     licensee shall not transfer a firearm at a special firearms 
     event.
       ``(e) Firearm Transaction Defined.--In this section, the 
     term `firearm transaction'--
       ``(1) includes the sale, offer for sale, transfer, or 
     exchange of a firearm; and
       ``(2) does not include--
       ``(A) the mere exhibition of a firearm; or
       ``(B) the sale, transfer, or exchange of firearms between 
     immediate family, including parents, children, siblings, 
     grandparents, and grandchildren.''.
       (b) Penalties.--Section 924(a) of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(7)(A)(i) Whoever knowingly violates section 931(a)(1) 
     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.
       ``(ii) Whoever knowingly violates section 931(a)(2) shall 
     be fined under this title, imprisoned not more than 5 years, 
     or both.
       ``(iii) Whoever knowingly violates section 931(a)(3) shall 
     be fined under this title, imprisoned not more than 2 years, 
     or both.
       ``(B) Whoever knowingly violates section 931(b) 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 knowingly violates section 931(c) shall be 
     fined under this title, imprisoned not more than 5 years, or 
     both.
       ``(D) In addition to any other penalties imposed under this 
     paragraph, the Secretary may, with respect to any person who 
     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.''.
       (c) Technical and Conforming Amendments.--Chapter 44 of 
     title 18, United States Code, is amended in the chapter 
     analysis, by adding at the end the following:

``931. Regulation of firearms transfers at special firearms events.''.

     SEC. 104. OPTION FOR 24-HOUR BACKGROUND CHECKS AT SPECIAL 
                   FIREARMS EVENTS FOR STATES WITH COMPUTERIZED 
                   DISQUALIFYING RECORDS AND PROGRAMS TO IMPROVE 
                   STATE DATABASES.

       (a) Option For 24-Hour Requirement.--
       (1) In general.--Effective 3 years after the date of 
     enactment of this Act, a State may apply to the Attorney 
     General for certification of the 24-hour verification 
     authority of that State.
       (2) Certification.--The Attorney General shall certify a 
     State for 24-hour verification authority only upon a clear 
     showing by the State that not less than 95 percent of all 
     records containing information that would disqualify an 
     individual under subsections (g) and (n) of section 922 of 
     title 18, United States Code, or under State law, is 
     available on computer records in the State, and is searchable 
     under the national instant criminal background check system 
     established under section 103 of the Brady Handgun Violence 
     Prevention Act (18 U.S.C. 922 note).
       (3) Disqualifying information.--Such disqualifying 
     information shall include, at a minimum, the disqualifying 
     records for that State going back 30 years from the date of 
     application to the Attorney General for certification.
       (4) 24-Hour provision.--Upon certification by the Attorney 
     General, the 24-hour provision in section 931(c)(2) of title 
     18, United States Code, shall apply to the verification

[[Page S4956]]

     process (for transfers between unlicensed persons) in that 
     State unless additional information is required in order to 
     verify disqualifying information from a State that has not 
     been certified by the Attorney General, in which case the 3 
     business day limit shall apply.
       (5) Annual review.--The Attorney General shall annually 
     review and revoke for any State not in compliance the 
     certification required in the amendment made by paragraph 
     (1).
       (b) Priority.--The Attorney General shall give priority to 
     background check requests at special firearms events made 
     pursuant to section 931 of title 18, United States Code, as 
     added by this Act.
       (c) Study.--Not later than 180 days after the date of 
     enactment of this Act, the Attorney General shall identify 
     and report to Congress the reasons for delays in background 
     checks at the Federal and State levels and include 
     recommendations for eliminating those delays.
       (d) Grant Program.--
       (1) In general.--The Attorney General is authorized to make 
     grants to States to assist in the computerization of the 
     criminal conviction records and other disqualifying records 
     of that State and with other issues facing States that want 
     to apply for certification under section 104(a) of this 
     title.
       (2) Authorization.--There are authorized to be appropriated 
     such sums as are necessary for fiscal years 2002 through 2004 
     to carry out this subsection.

     SEC. 105. INSPECTION AUTHORITY.

       Section 923(g)(1)(B), of title 18, United States Code, is 
     amended by striking ``or licensed dealer'' and inserting 
     ``licensed dealer, or special firearms event operator''.

     SEC. 106. 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, 
     licensed collector, or special firearms event licensee 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.''.

     SEC. 107. INCREASED PENALTIES FOR VIOLATIONS OF CRIMINAL 
                   BACKGROUND CHECK REQUIREMENTS.

       Section 924(a) of title 18, United States Code, is 
     amended--
       (1) in paragraph (5), by striking ``subsection (s) or (t) 
     of section 922'' and inserting ``section 922(s)''; and
       (2) 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.''.

     SEC. 108. RULE OF INTERPRETATION.

       A provision of State law is not inconsistent with this 
     title or an amendment made by this title if the provision 
     imposes a regulation or prohibition of greater scope or a 
     penalty of greater severity than any prohibition or penalty 
     imposed by this title or an amendment made by this title.

     SEC. 109. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect 180 days after the date of enactment of this Act.

               TITLE II--GUN LAW ENFORCEMENT ACT OF 2001

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Gun Law Enforcement Act of 
     2001''.

     SEC. 202. STATE AND LOCAL GUN CRIME PROSECUTORS.

       (a) Purpose.--The purpose of this section is to--
       (1) provide funding for State and local prosecutors to 
     focus on gun prosecutions in high gun crime areas; and
       (2) double funding for such programs from fiscal year 2001 
     to 2002.
       (b) Authorization.--There are authorized to be appropriated 
     $150,000,000 for fiscal year 2002 to the Attorney General to 
     provide grants to States and units of local government to 
     support prosecutions in high gun crime areas by State and 
     local prosecutors.

     SEC. 203. NATIONAL PROJECT EXILE.

       (a) Purpose.--The purpose of this section is to provide 
     funding to replicate the success of the Project EXILE 
     program.
       (b) Authorization.--There are authorized to be appropriated 
     $20,000,000 for fiscal year 2002 to the Attorney General to 
     provide for additional Assistant United States Attorneys to 
     establish not to exceed 100 Project EXILE programs with local 
     United States Attorneys and local jurisdictions.
       (c) Media Awareness.--From amounts authorized by subsection 
     (b), the Attorney General may provide funds to participating 
     local jurisdictions.

     SEC. 204. FUNDING FOR ADDITIONAL ATF AGENTS.

       There are authorized to be appropriated $18,000,000 for 
     fiscal year 2002 to the Secretary of the Treasury for the 
     purpose of funding the hiring of an additional 200 agents for 
     the Bureau of Alcohol, Tobacco, and Firearms.

     SEC. 205. GUN TRACING AND YOUTH CRIME GUN INTERDICTION.

       There are authorized to be appropriated $20,000,000 for 
     fiscal years 2002 through 2005 to the Secretary of the 
     Treasury for the purpose of--
       (1) funding additional resources for the Bureau of Alcohol, 
     Tobacco, and Firearms to trace guns involved in gun crimes; 
     and
       (2) expanding the Youth Crime Gun Interdiction Initiative 
     to 250 cities over the 4 years funding is authorized.

     SEC. 206. SMART GUN TECHNOLOGY.

       There are authorized to be appropriated $10,000,000 for 
     fiscal year 2002 to the National Institute for Justice for 
     the purpose of making grants to research entities developing 
     technologies that limit the use of a gun to the owner.

     SEC. 207. REPORT ON BRADY ENFORCEMENT.

       Not later than February 1 of each year--
       (1) the Attorney General shall report to Congress--
       (A) the number of prosecutions resulting from background 
     checks conducted pursuant to the Brady Handgun Violence 
     Prevention Act;
       (B) what barriers exist to prosecutions under that Act; and
       (C) what steps could be taken to maximize prosecutions; and
       (2) the Secretary of Treasury shall report to Congress--
       (A) the number of investigations conducted pursuant to the 
     Brady Handgun Violence Prevention Act;
       (B) the number of investigations initiated but not pursued 
     under that Act;
       (C) the number of firearms retrieved as transferred in 
     contravention of that Act; and
       (D) what barriers exist to investigations under that Act.

  Mr. LIEBERMAN. Mr. President, I am proud to join Senator McCain, 
Senator DeWine, Senator Schumer, and Senator Carper in introducing this 
important legislation. This bill aims to build common ground on gun 
violence, a problem that has too often divided Members of Congress. And 
we are going to build that common ground on commonly held American 
values. As citizens of this great Democracy, we have rights and we have 
responsibilities. We have the right to own guns, but we have a 
responsibility not to sell them to criminals. That is the simple but 
important set of values on which the legislation we introduce today is 
founded.
  For several decades, our nation has had a clear policy against 
allowing convicted felons to buy guns, because we know that mixing 
criminals and guns far too often yields violent results. Through the 
Brady law, we established what seems like an obvious corollary to that 
policy--a requirement that those selling guns determine whether someone 
trying to buy a firearm isn't supposed to get one before they sell it 
to them. The Brady law has been an enormous success. Since its 
enactment, background checks have kept well over half a million people 
who by law are not allowed to own guns from getting guns, saving an 
untold number of our citizens from the violence, injury or death the 
sale of many of these guns would have brought.
  The Brady law, however, contained an unfortunate loophole that has 
since been exploited to allow convicted felons and other people who 
shouldn't own guns to evade the background check requirement by buying 
their guns at gun shows. The problem is that Brady applies only to 
Federal Firearms Licensees, so-called FFLs, people who are in the 
business of selling guns. Brady explicitly exempts from the background 
check requirement anyone ``who makes occasional sales, exchanges, or 
purchases of firearms for the enhancement of a personal collection or 
for a hobby, or who sells all or part of his personal collection of 
firearms.'' As a result, any person selling guns as a hobby or only 
occasionally, whether at a gun show, flea market or elsewhere, need not 
obtain a federal license and therefore has no obligation to conduct a 
background check. This means that any person wanting to avoid a 
background check can go to a gun show, find out which vendors are not 
FFLs, and buy a gun. And this is dangerous not only because it allows 
convicted felons and other prohibited persons to buy guns, but also 
because, in contrast to FFLs, non-FFLs have no obligation to keep 
records of the transaction, thereby depriving law enforcement of the 
ability to trace the gun if it later turns up at a crime scene.
  Our bill will change that. We will make sure that no one will be able 
to buy a gun at a gun show without it

[[Page S4957]]

first being determined whether that person is a convicted felon or is a 
member of one of the other categories of people we all agree should not 
be allowed to buy guns.

  Senator McCain and I have heard the concerns expressed about past 
proposals to close the gun show loophole, and we have tried hard in our 
bill to make sure those concerns are addressed.
  First, our bill has a simple definition of a gun show, an event where 
75 or more guns are offered or exhibited for sale--and we make clear 
that that definition doesn't include sales from a private collection by 
nonlicensed sellers out of their homes.
  Second, to respond to the argument that previous proposals made it 
too difficult for nonlicensed sellers to fulfill the background check 
requirement, our bill makes sure that nonlicensed sellers will have 
easy access to someone who can initiate background checks for them, by 
creating a new class of licensee whose sole purpose will be to initiate 
background checks at gun shows.
  Third, we have tried to respond to those who say that a three-day 
check is too long for gun shows, because those events only last a 
couple of days. It is worth noting that the length allowed for the 
check doesn't affect the majority of gun purchasers, because 72 percent 
of checks are completed within 30 seconds and almost 95 percent are 
done within two hours. We have come up with a compromise that 
authorizes a State to move to a 24-hour check for nonlicensed dealers 
at gun shows--when the State can prove that a 24-hour check is 
feasible. A State can prove that by showing that 95 percent of the 
records that would disqualify people in that State from buying guns are 
computerized and searchable by the NICS system.
  Now I know that there are many, including President Bush, who argue 
that what we need to solve the gun violence problem are not new laws 
but the enforcement of existing ones. I agree with part of that 
statement. Our bill authorizes significant increases in funding for a 
number of gun enforcement programs, including state and local gun crime 
prosecutors, Project Exile, additional ATF agents, gun tracing and 
smart gun technology. I am pleased that the President said yesterday 
that he supported a large chunk of what we are proposing today.
  But I believe we must go farther than that, because we will never be 
able to enforce existing laws unless we close the loopholes in them 
that criminals exploit. And we all know that there is a big loophole in 
the provision saying that felons aren't supposed to buy guns, and that 
is that criminals know that if they go to a gun show, they will be able 
to avoid the background check that was set up to keep them from getting 
guns.
  Gun crime remains a critical public safety problem. For too long, it 
has unnecessarily divided the Congress, and the American people have 
been left to suffer the violent consequences. But the reality is that 
most of us agree on most of the critical questions. We agree that the 
laws on the books should be enforced, that the rights of law-abiding 
gun owners should be protected, and that convicted felons shouldn't be 
able to get guns. The bill we are introducing today would write those 
principles into law. I hope all of my colleagues support it.
                                 ______