[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Pages S4556-S4563]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DURBIN:
S. 4701. A bill to amend the Higher Education Act of 1965 regarding
proprietary institutions of higher education in order to protect
students and taxpayers; to the Committee on Health, Education, Labor,
and Pensions.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 4701
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 ``Protecting Our Students and
Taxpayers Act of 2024'' or ``POST Act of 2024''.
SEC. 2. 85/15 RULE.
(a) In General.--Section 102(b) of the Higher Education Act
of 1965 (20 U.S.C. 1002(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``and'' after the
semicolon;
(B) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(F) meets the requirements of paragraph (2).'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Revenue sources.--
``(A) Definitions.--In this paragraph:
``(i) Alternative financing arrangement.--The term
`alternative financing agreement' means a financing agreement
between--
``(I) a student of an institution; and
``(II)(aa) the institution;
``(bb) any entity or individual--
``(AA) in the institution's ownership tree; or
``(BB) with any common ownership of the institution and the
entity providing the funds; or
``(cc)(AA) an entity that has any other relationship or
agreement with the institution; or
``(BB) an entity with common ownership with an entity
described in subitem (AA).
``(ii) Federal education assistance funds.--The term
`Federal education assistance funds' means Federal funds that
are disbursed or delivered to or on behalf of a student to be
used to attend such institution, as calculated under
subparagraph (C).
``(B) 85/15 rule.--In order to qualify as a proprietary
institution of higher education under this subsection, an
institution shall derive not less than 15 percent of the
institution's revenues from sources other than Federal
education assistance funds, as calculated in accordance with
subparagraphs (A) and (C).
``(C) Implementation of non-federal revenue requirement.--
In making calculations under subparagraph (B), an institution
of higher education shall--
``(i) use the cash basis of accounting;
``(ii) consider as revenue only those funds generated by
the institution from--
``(I) tuition, fees, and other institutional charges for
students enrolled in programs eligible for assistance under
title IV;
``(II) activities conducted by the institution that are
necessary for the education and training of the institution's
students, if such activities are--
``(aa) conducted on campus or at a facility under the
control of the institution;
``(bb) performed under the supervision of a member of the
institution's faculty;
``(cc) required to be performed by all students in a
specific educational program at the institution; and
``(dd) related directly to services performed by students;
``(III) a contractual arrangement with a Federal agency for
the purpose of providing job training to low-income
individuals who are in need of such training; and
``(IV) funds paid by a student, or on behalf of a student
by a party unrelated to the institution, its owners, or
affiliates, for an education or training program that is not
eligible for assistance under title IV, as long as--
``(aa) such noneligible program does not include any
courses offered in an eligible program of the proprietary
institution;
``(bb) such noneligible program is provided by the
institution, and taught by an instructor of the institution,
at--
``(AA) its main campus or one of its additional locations,
as approved by the appropriate accrediting agency or
association;
``(BB) another school facility approved by the appropriate
State agency or accrediting agency or association; or
``(CC) an employer facility; and
``(cc) such noneligible program is not a program where the
institution is merely providing facilities for test
preparation courses, acting as a proctor, or overseeing a
course of self-study;
``(iii) presume that any Federal education assistance funds
that are disbursed or delivered to an institution on behalf
of a student or directly to a student will be used to pay the
student's tuition, fees, or other institutional charges,
regardless of whether the institution credits such funds to
the student's account or pays such funds directly to the
student, except to the extent that the student's tuition,
fees, or other institutional charges are satisfied by--
``(I) grant funds provided by an outside source that--
``(aa) has no affiliation with the institution; and
``(bb) shares no employees, executives, or board members
with the institution; and
``(II) institutional scholarships described in clause (vi);
``(iv) include no loans made by an institution of higher
education as revenue to the school, except for payments made
by current or former students to the institution during the
fiscal year for which the determination is being made on such
loans that are--
``(I) used to satisfy tuition, fees, and other
institutional charges;
``(II) bona fide, as evidenced by standalone repayment
agreements between the students and the institution that are
enforceable promissory notes;
``(III) issued at intervals related to the institution's
enrollment periods;
``(IV) subject to regular loan repayments and collections
by the institution; and
``(V) separate from the enrollment contracts signed by the
students;
``(v) include funds from an income share agreement, or any
other alternative financing agreement, with a student only
if--
``(I) the institution clearly identifies the student's
institutional charges, and such charges are the same or less
than the stated rate for institutional charges;
``(II) the agreement clearly identifies the maximum time
and maximum amount a student would be required to pay,
including the implied or imputed interest rate and any fees
and revenue generated for a related third party, the
institution, or an entity described in subparagraph
(A)(i)(II), for that maximum time period; and
``(III) all payments under the agreement are applied with a
portion allocated to the return of capital and a portion
allocated to profit, with revenue, interest, and fees not
included in the calculation;
``(vi) include a scholarship provided by the institution--
``(I) only if the scholarship is in the form of monetary
aid based upon the academic achievements or financial need of
students, disbursed to qualified student recipients during
each fiscal year from an established restricted account; and
``(II) only to the extent that funds in that account
represent designated funds, or income earned on such funds,
from an outside source that--
``(aa) has no affiliation with the institution; and
``(bb) shares no employees, executives, or board members
with the institution; and
``(vii) exclude from revenues--
``(I) the amount of funds the institution received under
part C of title IV, unless the institution used those funds
to pay a student's institutional charges;
``(II) the amount of funds the institution received under
subpart 4 of part A of title IV;
``(III) the amount of funds provided by the institution as
matching funds for any Federal program;
``(IV) the amount of Federal education assistance funds
provided to the institution to pay institutional charges for
a student that were refunded or returned; and
``(V) the amount charged for books, supplies, and
equipment, unless the institution includes that amount as
tuition, fees, or other institutional charges.
[[Page S4557]]
``(D) Regaining eligibility.--Notwithstanding subparagraph
(B), a proprietary institution of higher education that fails
to meet the requirements of such subparagraph for a fiscal
year shall be ineligible for purposes of this paragraph for a
period of not less than 2 institutional fiscal years. To
regain eligibility under this paragraph, the proprietary
institution shall demonstrate compliance with all eligibility
and certification requirements under section 498 for a
minimum of 2 institutional fiscal years after the
institutional fiscal year in which the institution became
ineligible.
``(E) Report to congress.--Not later than July 1, 2026, and
by July 1 of each succeeding year, the Secretary shall submit
to the authorizing committees a report that contains, for
each proprietary institution of higher education that
receives assistance under title IV and as provided in the
audited financial statements submitted to the Secretary by
each institution pursuant to the requirements of section
487(c)--
``(i) the amount and percentage of such institution's
revenues received from Federal education assistance funds;
and
``(ii) the amount and percentage of such institution's
revenues received from other sources.''.
(b) Repeal of Existing Requirements.--Section 487 of the
Higher Education Act of 1965 (20 U.S.C. 1094) is amended--
(1) in subsection (a)--
(A) by striking paragraph (24);
(B) by redesignating paragraphs (25) through (29) as
paragraphs (24) through (28), respectively;
(C) in paragraph (24)(A)(ii) (as redesignated by
subparagraph (B)), by striking ``subsection (e)'' and
inserting ``subsection (d)''; and
(D) in paragraph (26) (as redesignated by subparagraph
(B)), by striking ``subsection (h)'' and inserting
``subsection (g)'';
(2) by striking subsection (d);
(3) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively;
(4) in the matter preceding paragraph (1) of subsection (d)
(as redesignated by paragraph (3)), by striking ``(a)(25)''
and inserting ``(a)(24)'';
(5) in subsection (f)(1) (as redesignated by paragraph
(3)), by striking ``subsection (e)(2)'' and inserting
``subsection (d)(2)''; and
(6) in subsection (g)(1) (as redesignated by paragraph
(3)), by striking ``subsection (a)(27)'' in the matter
preceding subparagraph (A) and inserting ``subsection
(a)(26)''.
(c) Conforming Amendments.--The Higher Education Act of
1965 (20 U.S.C. 1001 et seq.) is amended--
(1) in section 152 (20 U.S.C. 1019a)--
(A) in subsection (a)(1)(A), by striking ``subsections
(a)(27) and (h) of section 487'' and inserting ``subsections
(a)(26) and (g) of section 487''; and
(B) in subsection (b)(1)(B)(i)(I), by striking ``section
487(e)'' and inserting ``section 487(d)'';
(2) in section 153(c)(3) (20 U.S.C. 1019b(c)(3)), by
striking ``section 487(a)(25)'' each place the term appears
and inserting ``section 487(a)(24)'';
(3) in section 496(c)(3)(A) (20 U.S.C. 1099b(c)(3)(A)), by
striking ``section 487(f)'' and inserting ``section 487(e)'';
and
(4) in section 498(k)(1) (20 U.S.C. 1099c(k)(1)), by
striking ``section 487(f)'' and inserting ``section 487(e)''.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall take effect on July
1, 2025.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
______
By Mr. DURBIN (for himself, Mr. Whitehouse, Mr. Blumenthal, Ms.
Hirono, Mr. Booker, Mr. Welch, Mrs. Shaheen, Mr. Reed, Mr.
Schatz, and Mr. Cardin):
S. 4706. A bill to modernize the business of selling firearms; to the
Committee on the Judiciary.
S. 4706
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
[[Page S4558]]
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.
[[Page S4559]]
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
[[Page S4560]]
(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
[[Page S4561]]
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
[[Page S4562]]
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
[[Page S4563]]
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.
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