HR2618-119

2. Findings Congress finds the following: 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. Federal laws governing firearm dealers— have not been updated in more than 30 years; contain safeguards that protect dealers who engage in illegal practices from adverse enforcement action; frustrate law enforcement efforts to curb firearm trafficking and violence; and are, thus, inadequate to meet the realities of the 21st century. The Tiahrt Amendments, for one— 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; prevent— the collection of valuable information; and the establishment of effective policies to prevent illegal firearms from being used in crimes; and impede enforcement of the firearm laws by— requiring most background check records to be destroyed within 24 hours; and barring the Government from requiring owners of firearm shops to conduct annual inventory audits. 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. 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.

3. Definitions Section 921(a) of title 18, United States Code, is amended by adding at the end the following: 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— the transaction violates the terms of service of the website or mobile application; and 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. The term occasional means, with respect to transactions, fewer than 5 transactions in a 12-month period. 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. 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. The term frame means the part of a handgun, or a variant thereof, that provides housing or a structure for the primary energized component designed to hold back the hammer, striker, bolt, or similar component prior to initiation of the firing sequence (such as a sear or the equivalent), even if pins or other attachments are required to connect such component to the housing or structure. 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. 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. The term semiautomatic shotgun means any repeating shotgun that— utilizes a portion of the energy of a firing shell to extract the fired shell casing and chamber the next round; and requires a separate pull of the trigger to fire each shell. (38)The term facilitator means any person engaged in the business of hosting a commercial marketplace in which offers for firearm sales, purchases, or other transfers are allowed to be made, except that such a person shall not be considered to be a facilitator with respect to any transaction that is made through the use of a website or mobile application owned or operated by the person if—(A)the transaction violates the terms of service of the website or mobile application; and(B)the person has made a good faith effort to enforce the terms of service by, at a minimum, auditing firearms transactions on a quarterly basis to ensure compliance with this chapter.(39)The term occasional means, with respect to transactions, fewer than 5 transactions in a 12-month period.(40)The term personal collection includes any firearm obtained only for the personal use of an individual and not for the purpose of selling or trading, except that a firearm obtained through inheritance shall not be considered part of a personal collection until the firearm has been possessed for 1 year.(41)The term business inventory firearm means, with respect to a person, a firearm required by law to be recorded in the acquisition and disposition logs of any firearms business of the person.(42)(A)The term frame means the part of a handgun, or a variant thereof, that provides housing or a structure for the primary energized component designed to hold back the hammer, striker, bolt, or similar component prior to initiation of the firing sequence (such as a sear or the equivalent), even if pins or other attachments are required to connect such component to the housing or structure.(B)The term receiver means the part of a rifle, shotgun, or projectile weapon other than a handgun, or a variant thereof, that provides housing or a structure for the primary component designed to block or seal the breech prior to initiation of the firing sequence (such as a bolt, breechblock, or the equivalent), even if pins or other attachments are required to connect such component to the housing or structure. (C)For purposes of this paragraph, the term variant means a weapon utilizing a similar frame or receiver design irrespective of new or different model designations or configurations, characteristics, features, components, accessories, or attachments. For example, an AK-type firearm with a short stock and a pistol grip is a pistol variant of an AK-type rifle, an AR-type firearm with a short stock and a pistol grip is a pistol variant of an AR-type rifle, and a revolving cylinder shotgun is a shotgun variant of a revolver.(43)The term semiautomatic shotgun means any repeating shotgun that—(A)utilizes a portion of the energy of a firing shell to extract the fired shell casing and chamber the next round; and(B)requires a separate pull of the trigger to fire each shell..

4. Repeal of temporary Brady provision Section 922 of title 18, United States Code, is amended by striking subsection (s). Chapter 44 of title 18, United States Code, is amended— in section 922— in subsection (t)— in paragraph (3)(C)(ii), by striking (as defined in subsection (s)(8)); and by adding at the end the following: 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. 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); in section 924(a)(5), by striking subsection (s) or (t) of section 922 and inserting section 922(t); and in section 925A, in the matter preceding paragraph (1), by striking subsection (s) or (t) of section 922 and inserting section 922(t). (8)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

5. Physical security of licensee premises Section 923(d)(1)(G) of title 18, United States Code, is amended— by striking , the applicant and inserting the following: — the applicant by striking the period at the end and inserting ; and; and by adding at the end the following: the applicant— 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 certifies that, if issued such a license, the applicant will comply with the plan described in subclause (I). Section 923(d)(1) of title 18, United States Code, is amended— in subparagraph (F), by striking and at the end; in subparagraph (G), as amended by paragraph (1), by striking the period at the end and inserting ; and; and by adding at the end the following: in the case of an application to renew a license to deal in firearms— the license is not suspended; no license issued to the applicant under this chapter has been revoked; and the Attorney General has inspected the premises and provided written approval of the security plan submitted by the applicant under subparagraph (G)(ii)(I). 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). A person described in this subparagraph is a person— 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 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). Section 923 of title 18, United States Code, is amended by adding at the end the following: Each licensed manufacturer, licensed importer, and licensed dealer shall— 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 in the case of a licensed dealer, include with the certification under subparagraph (A)— 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 all dispositions and acquisitions of resale firearms in the year covered by the certification, identifying and reporting any missing firearm. 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). 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)). Section 926 of title 18, United States Code, is amended by adding at the end the following: 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— compliance with the security plan submitted by the licensee pursuant to section 923(d)(1)(G)(ii)(I), if applicable; the use of locked metal cabinets and fireproof safes; security systems, video monitoring, and anti-theft alarms; security gates, strong locks, and site hardening; concrete bollards and other access controls, if necessary; and the use of any other security-enhancing features appropriate for the specific circumstances of the licensee. 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. —(i)the applicant; (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).. (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).. (m)Annual certification(1)In generalEach 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 penaltyThe 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).. (d)Securing premises from theftThe 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..

6. Business inventory firearms Section 923(c) of title 18, United States Code, is amended— 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.; by striking the third sentence; and by adding at the end the following: Any firearm disposed of by a licensee shall be from the business inventory of the licensee. Section 923(g) of title 18, United States Code, is amended by adding at the end the following: 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. 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— the date of receipt of the firearm; the name, address, and license number, if applicable, of the person from whom the firearm was received; the name of the manufacturer and, if applicable, importer of the firearm; the model, serial number, type, and caliber or gauge of the firearm; and the date of the sale or other disposition of the firearm. 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. The fifth proviso under the heading Salaries and Expenses under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives in title II of division B of the Consolidated and Further Continuing Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113–6; 127 Stat. 248) is amended by striking and any fiscal year thereafter. 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. 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, 2010 (Public Law 111–117; 123 Stat. 3129) is amended by striking or any other. 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. 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. 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. 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. 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. (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..

7. Electronic records Section 923(g) of title 18, United States Code, is amended— in paragraph (1)(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 by striking the second sentence; in paragraph (5)(A), by inserting or electronically as may be after submit on a form; and in paragraph (7), by inserting , electronically, after orally. Section 923(g) of title 18, United States Code, as amended by section 6, is amended by adding at the end the following: 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. 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. The National Tracing Center— shall have remote access to query, search, or otherwise access the electronic databases described in subparagraph (A); and 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. 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. The electronic databases established under subparagraph (A)— 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; shall not be electronically searchable by the personally identifiable information of any individual, without a warrant authorizing such a search; and shall include in search results the entire contents of the relevant records kept by the licensee. Section 923(g) of title 18, United States Code, as amended by subsection (b), is amended by adding at the end the following: 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— maintain video surveillance of all areas within each premises where firearms in the business inventory of the licensee are sold or transferred; retain records of the surveillance, including any sound recording obtained from the surveillance, for a period of not less than 90 days; and 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. Section 924(a)(3) of title 18, United States Code, is amended— by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and adjusting the margins accordingly; by moving the matter following clause (ii) (as so redesignated) 2 ems to the right; in the matter following clause (ii) (as so redesignated), by striking one year and inserting 5 years; by inserting (A) after (3); and by adding at the end the following: 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. Section 926(a) of title 18, United States Code, is amended, in the matter following paragraph (3)— 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 in the second sentence, by striking Secretary's and inserting Attorney General's. Section 926 of title 18, United States Code, as amended by section 5, is amended by adding at the end the following: The Attorney General— 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; shall facilitate— digital capture of paper records of licensed dealers; and 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; shall facilitate, with respect to the electronic databases established under section 923(g)(9)(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 access by licensed dealers to only their own records; and may not remotely access or search electronic records of licensed dealers without a warrant authorizing such a search. (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.. (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.. (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)Facilitation of electronic recordkeepingThe 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..

9. Multiple firearm sales records and reports Section 923(g)(3)(A) of title 18, United States Code, is amended— 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 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.. Section 922(t)(2)(C) of title 18, United States Code, is amended— by striking destroy and inserting retain for not less than 90 business days; by striking (other than the identifying number and the date the number was assigned); and 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. Section 923(g)(3) of title 18, United States Code, is amended— by redesignating subparagraph (B) as subparagraph (C); and by inserting after subparagraph (A) the following: 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. 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). 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. Section 923(g)(3)(C) of title 18, United States Code, as redesignated by subsection (c)(1) of this section, is amended— in the first sentence— by inserting a firearm involved in a crime or after Except in the case of forms and contents thereof regarding; and 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 by striking the second sentence. (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..

10. Safety devices and warnings to purchasers Section 922(z) of title 18, United States Code, is amended— by inserting and warnings to purchasers after Secure gun storage or safety device; by striking handgun each place it appears and inserting firearm; and by adding at the end the following: 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. The Attorney General shall— develop materials regarding suicide prevention, securing firearms from loss, theft, or access by a minor or prohibited person, and straw purchasing; and provide the materials developed under subclause (I) to each licensed dealer. A licensed dealer shall disseminate the materials described in clause (i) upon transfer of a firearm to a person not licensed under this chapter. (4)Warnings to purchasers(A)In generalA 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 GeneralThe 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 dealersA licensed dealer shall disseminate the materials described in clause (i) upon transfer of a firearm to a person not licensed under this chapter..

11. Inspections Section 923(g)(1)(B) of title 18, United States Code, is amended— in clause (ii), by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins accordingly; by redesignating clauses (i), (ii), and (iii) as subclauses (I), (II), and (III), respectively, and adjusting the margins accordingly; by inserting (i) after (B); and by adding at the end the following: The Attorney General— 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— during the preceding 5 years, the dealer reported a lost or stolen firearm; 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 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 may appoint an attorney to ensure that high-risk dealers comply with all applicable firearm sales laws. 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. 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. 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). Section 923(g)(1)(B)(i)(II) of title 18, United States Code, as redesignated by subsection (a), is amended— by striking — and all that follows through (bb); and by striking with respect to records relating to a firearm involved in a criminal investigation that is traced to the licensee. Section 923(g)(6) of title 18, United States Code, is amended— by inserting (A) after (6); and by adding at the end the following: 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). On completion of a security inspection under clause (i), the Attorney General shall provide the licensed dealer with— a notice of any violation by the licensed dealer of any security requirements prescribed under section 926(d); and recommendations for improving security of the premises involved. Section 923(j) of title 18, United States Code, is amended by striking the sixth sentence. (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)(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..

12. Authority with regard to license issuance and renewal Section 923 of title 18, United States Code, is amended— in subsection (c)— by inserting (1) before Upon; in the first sentence, by inserting , subject to paragraph (2), after the Attorney General shall; and by adding at the end the following: The Attorney General shall deny an application submitted under subsection (a) or (b) if the Attorney General determines that— issuing the license would pose a danger to public safety; or the applicant— is not likely to comply with the law; or is otherwise not suitable to be issued a license. in subsection (d)(1)— in the matter preceding subparagraph (A), by striking shall and inserting or renewal thereof shall, subject to subsection (c)(2),; in subparagraph (C), by striking not willfully violated and inserting no uncured violations of; and in subparagraph (F)— in clause (ii), by striking and at the end; and by adding at the end the following: each employee employed in the business— 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 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 Section 923 of title 18, United States Code, is amended— in subsection (e)— in the first sentence, by inserting or suspend after revoke; and in the third sentence, by striking Secretary's and inserting Attorney General's; and in subsection (f)— in paragraph (1)— by inserting or suspended after revoked each place it appears; and by inserting or suspension after revocation each place it appears; in paragraph (2)— by striking , or revokes and inserting , revokes, or suspends; and by striking or revocation and inserting , revocation, or suspension; and in paragraph (3)— by inserting or suspend after revoke each place it appears; and by striking or revocation and inserting , revocation, or suspension. Section 926(a) of title 18, United States Code, is amended, in the matter preceding paragraph (1), by striking only. The matter under the heading Salaries and Expenses under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives in title II of division B of the Consolidated and Further Continuing Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113–6; 127 Stat. 247) is amended by striking the sixth proviso. 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. (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 (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.

13. Increased licensing fees Section 923(a) of title 18, United States Code, is amended— in paragraph (1)— in subparagraph (A), by striking $1,000 and inserting $2,000; in subparagraph (B), by striking $50 and inserting $100; and in subparagraph (C), by striking $10 and inserting $20; in paragraph (2)— in subparagraph (A), by striking $1,000 and inserting $2,000; and in subparagraph (B), by striking $50 and inserting $100; and in paragraph (3)— in subparagraph (A), by striking $1,000 and inserting $2,000; and in subparagraph (B)— by striking $200 and inserting $400; and by striking $90 and inserting $180. Section 923(b) of title 18, United States Code, is amended by striking $10 and inserting $20.

15. Elimination of relief for dealers indicted for a crime punishable by imprisonment for a term exceeding one year Section 925 of title 18, United States Code, is amended— by striking subsection (b); and by redesignating subsections (c) through (f) as subsections (b) through (e), respectively. Chapter 44 of title 18, United States Code, is amended— in section 922— in subsection (d), in the second sentence— 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 by striking subsection (c) of section 925 and inserting section 925(b); in subsection (l), by striking 925(d) of this chapter and inserting 925(c); and in subsection (r), by striking 925(d)(3) of this chapter and inserting 925(c)(3); and in section 925(f), by striking subsection (d) and inserting subsection (c). 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). 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). Section 161A(b) of the Atomic Energy Act of 1954 (42 U.S.C. 2201a(b)) is amended by striking 925(d)(3) and inserting 925(c)(3).

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.

19. Unlawful acts upon incurring Federal disability or notice of license suspension, revocation, or denied renewal Section 922 of title 18, United States Code, is amended by adding at the end the following: 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— transfer a business inventory firearm— into the personal collection of the licensee; or to any person other than a licensee under this chapter or a Federal, State, or local law enforcement agency; or receive a business inventory firearm. 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. Section 924(a) of title 18, United States Code, is amended by adding at the end the following: Whoever knowingly violates section 922(aa) shall be fined under this title, imprisoned for not more than 1 year, or both. 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). (aa)Unlawful acts upon incurring Federal disability or notice of license suspension, revocation, or denied renewal(1)In generalIt 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)WaiverUpon 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.. (9)Whoever knowingly violates section 922(aa) shall be fined under this title, imprisoned for not more than 1 year, or both..

20. Regulation of facilitators of firearm transfers Section 923(a) of title 18, United States Code, is amended by adding at the end the following: If the applicant is a facilitator of firearm sales, purchases, or other transfers, a fee of $1,000 per year. Section 923 of title 18, United States Code, as amended by section 5, is amended by adding at the end the following: A licensed facilitator shall— 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); 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 maintain records of any sale, purchase, or other transfer described in subparagraph (A), which shall include— the date of the offer; the name of the offeror; the name and the licensee number of the licensee that will take possession of the firearm directly from the transferor; and the model, serial number, type, and caliber or gauge of the firearm involved. 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. 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. Section 924(h) of title 18, United States Code, is amended— by inserting (1) before Whoever; and by adding at the end the following: 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)— except as provided in subparagraph (B), shall be fined under this title, imprisoned for not more than 1 year, or both; or if transfer of the firearm to, or receipt of the firearm by, the transferee violates subsection (d), (g), or (n) of section 922, or the firearm is used to commit a crime of violence (as defined in section (c)(3) of this section) or drug trafficking crime (as defined in subsection (c)(2) of this section), shall be fined under this title, imprisoned for not more than 10 years, or both. Chapter 44 of title 18, United States Code, is amended— in section 922— in subsection (a)— in paragraph (1)— in subparagraph (A), by striking or at the end; in subparagraph (B), by adding or at the end; and by adding at the end the following: 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; in paragraph (6)— by striking or licensed collector and inserting licensed collector, or licensed facilitator; and by striking or collector and inserting collector, or facilitator; and in subsection (m), by striking or licensed collector and inserting licensed collector, or licensed facilitator; in section 923— 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; in subsection (g)(1)(A)— in the matter preceding clause (i)— in the first sentence, by striking and licensed dealer and inserting licensed dealer, and licensed facilitator; and in the last sentence, by inserting licensed facilitator, before or any licensed importer; in clause (i), by striking or licensed collector and inserting , licensed collector, or licensed facilitator; and in clause (ii), by striking or licensed collector and inserting , licensed collector, or licensed facilitator; and in subsection (j), in the first sentence, by striking or licensed dealer and inserting licensed dealer, or licensed facilitator; and in section 924(a)(3), as amended by section 7— in subparagraph (A), in the matter preceding clause (i), by striking or licensed collector and inserting licensed collector, or licensed facilitator; and in subparagraph (B), by striking or licensed collector and inserting licensed collector, or licensed facilitator. (4)If the applicant is a facilitator of firearm sales, purchases, or other transfers, a fee of $1,000 per year.. (n)Duties of facilitators(1)In generalA 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 dealerA 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 complianceOn 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.. (2)Whoever, having accepted an offer to transfer ownership of a firearm using a commercial marketplace of a licensed facilitator in order to complete a firearm transaction as described in subsection (n)(1), knowingly transfers the firearm to a person not licensed under this chapter without a licensed importer, licensed manufacturer, or licensed dealer first taking possession of the firearm for the purpose of complying with section 922(t)—(A)except as provided in subparagraph (B), shall be fined under this title, imprisoned for not more than 1 year, or both; or(B)if transfer of the firearm to, or receipt of the firearm by, the transferee violates subsection (d), (g), or (n) of section 922, or the firearm is used to commit a crime of violence (as defined in section (c)(3) of this section) or drug trafficking crime (as defined in subsection (c)(2) of this section), shall be fined under this title, imprisoned for not more than 10 years, or both.. (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

21. Dealer and employee background checks 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.. 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: 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— the employee is at least the minimum age required by State and local law to possess or receive a firearm; 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 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. Section 103(b)(2) of the Brady Handgun Violence Prevention Act (34 U.S.C. 40901(b)(2)) is amended— in the heading, by striking Voluntary and inserting Compulsory; and in subparagraph (A), by striking voluntarily. 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: 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. (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.. (L)Search of national data exchange databaseThe 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..

22. Liability standards Section 923 of title 18, United States Code, is amended— in subsection (d)(1)(D), by striking willfully and inserting knowingly; and in subsection (e), by striking willfully each place it appears and inserting knowingly. Section 924 of title 18, United States Code, is amended— in subsection (a)(1)(D), by striking willfully and inserting knowingly; and in subsection (d)(1), by striking willful and inserting knowing.

23. Civil enforcement Section 924(n) of title 18, United States Code, is amended— by inserting (1) after (n); and by adding at the end the following: 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— transmit to the person a written notice specifying the violation, which shall include a copy of the provision of law violated; and impose on the person a civil penalty in an amount that is not less than $2,500 and not more than $20,000. Section 924 of title 18, United States Code, is amended by adding at the end the following: If the Attorney General finds a licensed dealer to be in violation of a regulation prescribed under section 926, the Attorney General shall— if the violation is not a result of gross negligence by the licensed dealer— 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; 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; 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; 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 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 if the violation is a result of gross negligence by the licensed dealer— 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; in the case of the second such violation by the licensed dealer— impose a civil penalty in an amount equal to $20,000; and suspend the license to deal in firearms issued to the licensed dealer under this chapter until the violation ceases; or 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. 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. (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.. (q)Penalties relating to violations of regulations by licensed dealers(1)In generalIf 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 licenseIn 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..