[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4423 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4423
To enhance safety and security at federally licensed gun shops, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2021
Mr. Morelle (for himself, Mr. Khanna, Ms. Schakowsky, Mr. Carson, Mr.
Suozzi, and Ms. Scanlon) introduced the following bill; which was
referred to the Committee on the Judiciary, and in addition to the
Committee on Rules, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To enhance safety and security at federally licensed gun shops, and for
other purposes.
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 ``Gun Theft
Prevention Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Gun shop security measures.
Sec. 3. Repeal of prohibition on use of funds to implement rule
requiring physical inventory by Federal
firearms licensees.
Sec. 4. Inspections.
Sec. 5. Employee background checks.
Sec. 6. Gun store thefts.
Sec. 7. Civil enforcement.
Sec. 8. No effect on State laws governing dealing in firearms.
Sec. 9. Repeal of prohibition on denial of Federal firearm license due
to lack of business activity.
Sec. 10. Repeal of limitations relating to use of firearms trace data.
Sec. 11. Lost and stolen reporting requirement.
Sec. 12. Report on implementation of this Act.
Sec. 13. Hearing.
Sec. 14. Deadline for issuance of final regulations.
SEC. 2. GUN SHOP SECURITY MEASURES.
(a) Regulations.--
(1) In general.--Section 926 of title 18, United States
Code, is amended by adding at the end the following:
``(d) The Attorney General shall prescribe such regulations as are
necessary to ensure that any premises at which a licensed dealer deals
in firearms are secure from theft, which shall include requiring--
``(1) compliance with the security plan submitted by the
licensed dealer pursuant to section 923(d)(1)(G);
``(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; and
``(5) concrete bollards and other access controls, if
necessary.''.
(2) Transition rule.--The regulations prescribed under
section 926(d)(1) of title 18, United States Code, shall not
apply to a person who, on the date of the enactment of this
Act, is a licensed dealer (as defined in section 921(a)(11) of
such title), until the earlier of--
(A) the date the person complies with subsection
(b)(2) of this section; or
(B) the end of the 1-year period that begins with
the date regulations are prescribed under section
926(d) of such title.
(b) Security Plan Submission Requirement.--
(1) In general.--Section 923(d)(1)(G) of such title is
amended by inserting ``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 the applicant
certifies that, if issued such a license, the applicant will
comply with the plan'' before the period.
(2) Transition rule.--A person who, on the date of the
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 such
title, will not expire before the end of the 1-year period that
begins with the date regulations are prescribed under section
926(d) of such title, shall submit to the Attorney General a
plan of the type described in section 923(d)(1)(G) of such
title not later than the end of that 1-year period. Any plan so
submitted shall be considered to be submitted pursuant to such
section 923(d)(1)(G), for purposes of such sections
923(g)(6)(B) and 926(d).
(c) Annual Security Plan Compliance Certification Requirement.--
(1) In general.--Section 923 of title 18, United States
Code, is amended by adding at the end the following:
``(m)(1) Each licensed dealer shall annually certify to the
Attorney General that each premises from which the licensed dealer
conducts business subject to license under this chapter is in
compliance with the regulations prescribed under section 926(d), and
include with the certification the results of a reconciliation of the
firearms inventory of the licensed dealer with the firearms inventory
at the time of the most recent prior certification (if any) under this
paragraph, including a report of any missing firearms.
``(2) The Attorney General may impose a civil money penalty of not
more than $5,000 on, and may suspend the license to deal in firearms
issued under this section to, a licensed dealer who fails to comply
with paragraph (1).''.
(2) Transition rule.--The amendment made by paragraph (1)
of this subsection shall not apply to a person who, on the date
of the enactment of this Act, is a licensed dealer (as defined
in section 921(a)(11) of title 18, United States Code), until
the end of the 1-year period that begins with the date person
complies with subsection (b)(2) of this section.
(d) Effective Date.--The amendments made by this section shall take
effect 1 year after the date of the enactment of this Act.
SEC. 3. REPEAL OF PROHIBITION ON USE OF FUNDS TO IMPLEMENT RULE
REQUIRING PHYSICAL INVENTORY BY FEDERAL FIREARMS
LICENSEES.
The matter under the heading ``Bureau of Alcohol, Tobacco, Firearms
and Explosives--Salaries and Expenses'' in title II of division B of
the Consolidated and Further Continuing Appropriations Act, 2013
(Public Law 113-6; 127 Stat. 248) is amended by striking the 5th
proviso.
SEC. 4. INSPECTIONS.
(a) Elimination of Limit on Annual Inspections of Licensees.--
Section 923(g)(1)(B)(ii) of title 18, United States Code, is amended by
striking ``--'' and all that follows through ``(II)''.
(b) Mandated Annual Inspections of High Risk Licensed Dealers,
Triennial Inspections of Other Licensed Dealers.--Section 923(g)(1)(B)
of such title is amended by adding after and below the end the
following flush sentence: ``The Attorney General shall, without such
reasonable cause or warrant, annually inspect or examine the inventory,
records, and business premises of each licensed dealer whom the
Attorney General regards as a high risk dealer (based on the
considerations used to do so as of the date of the enactment of this
sentence), and triennially inspect or examine the inventory, records,
and business premises of each other licensed dealer. Within 6 months
after an inspection under this subparagraph reveals a violation of this
section or any regulation prescribed under this chapter, and within 6
months after a security inspection conducted under paragraph (6)(B)(i)
of this subsection, the Attorney General shall conduct an inspection to
determine whether the violation identified in the preceding inspection
has been cured.''
(c) Authority To Hire Additional Industry Operation Investigators
for BATFE.--The Attorney General may hire 650 Industry Operation
Investigators for the Bureau of Alcohol, Tobacco, Firearms and
Explosives, in addition to any personnel needed to carry out this Act
and any Industry Operation Investigators authorized by other law.
SEC. 5. EMPLOYEE BACKGROUND CHECKS.
(a) Requirements.--
(1) Background check required before firearm possession by
dealer employee.--Section 923(g) of title 18, United States
Code, is amended by adding at the end the following:
``(8) A licensed dealer shall not allow an employee of the licensed
dealer to possess a firearm at a premises from which the licensed
dealer conducts business subject to license under this chapter unless--
``(A) the licensed dealer has contacted the national
instant criminal background check system established under
section 103 of the Brady Handgun Violence Prevention Act for
information about whether it would be unlawful for the
individual to receive a firearm; and
``(B) the system has notified the licensee that the
information available to the system does not demonstrate that
the receipt of a firearm by the individual would violate
subsection (g) or (n) of section 922 or State law.''.
(2) Background checks required before issuance or renewal
of dealer license.--Section 923(c) of such title is amended by
inserting after the 1st sentence the following:
``Notwithstanding the preceding sentence, the Attorney General
may not issue or renew a license to deal in firearms unless the
Attorney General has contacted the national instant criminal
background check system established under section 103 of the
Brady Handgun Violence Prevention Act for information about
whether it would be unlawful for any employee of the applicant
for the license or renewal, identified by the applicant as
having the responsibility to receive a firearm, for information
about whether it would be unlawful for the employee to receive
a firearm, and the system has notified the Attorney General
that the information available to the system does not
demonstrate that the receipt of a firearm by the employee would
violate subsection (g) or (n) of section 922 or the law of the
State in which the business premises of the applicant subject
to the license is located.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the date that is 1 year after the date of
the enactment of this Act.
(b) Authority of NICS System To Respond to Licensed Dealer Request
for Criminal Background Check of Employee or Prospective Employee.--
Section 103(b) of the Brady Handgun Violence Prevention Act (34 U.S.C.
40901(b)) is amended by adding at the end the following: ``The Attorney
General shall ensure that the system responds to any request received
by the system from a licensed dealer for information on whether receipt
of a firearm by an employee or prospective employee of the licensed
dealer would violate such section 922 or State law.''.
SEC. 6. GUN STORE THEFTS.
(a) In General.--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) Within 30 days after the Attorney General receives a
report from a licensed dealer pursuant to subparagraph (A) of this
paragraph of the theft of a firearm, the Attorney General shall conduct
an independent inspection of the security of the premises at which the
theft occurred, which may include an inspection of the measures taken
to implement the security plan submitted by the licensed dealer
pursuant to subsection (d)(1)(G).
``(ii) On completion of the security inspection, 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.''.
(b) Exemption of Stolen Firearms From Product Liability.--Section
4(4) of the Protection of Lawful Commerce in Arms Act (15 U.S.C.
7903(4)) is amended by inserting ``, except any such firearm the theft
of which is required by section 923(g)(6)(A) of such title to be
reported'' before the period.
SEC. 7. CIVIL ENFORCEMENT.
Section 923 of title 18, United States Code, as amended by section
2(c)(1) of this Act, is amended by adding at the end the following:
``(n) In the case of a licensed dealer who the Attorney General has
found to be in violation of a regulation prescribed under section
926(d), to not have implemented a corrective action required by the
Attorney General at the completion of a security inspection conducted
under subsection (g)(6)(B)(i) of this section within 30 days after the
date of the inspection, or to be in violation of subsection (g)(8) of
this section--
``(1) 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 1st such violation
of the law or regulation 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
provision of law or regulation violated and a
plan for how to cure the violation;
``(ii) in the case of the 2nd such
violation by the licensed dealer, if not
preceded by a violation to which subparagraph
(B) applies, impose a civil money penalty in an
amount that is not less than $2,500 and not
more than $20,000;
``(iii) in the case of the 3rd 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 4th such
violation by the licensed dealer, whether or
not preceded by a violation to which
subparagraph (B) applies, revoke that 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 such gross
negligence--
``(i) in the case of the 1st such violation
by the licensed dealer, impose a civil money
penalty in an amount that is not less than
$2,500 and not more than $20,000;
``(ii) in the case of the 2nd such
violation by the licensed dealer--
``(I) impose a civil money penalty
in an amount equal to $20,000; or
``(II) suspend the license to deal
in firearms issued to the licensed
dealer under this chapter until the
violation ceases; or
``(III) revoke that license; or
``(iii) in the case of the 3rd or
subsequent such violation by the licensed
dealer, apply the penalty authorized under this
subsection that is 1 or 2 levels greater in
severity than the level of severity of the
penalty most recently applied to the licensed
dealer under this subsection; and
``(2) in the case of any such violation, 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 firearm issued to the licensed
dealer under this chapter and secure the firearms inventory of
the licensed dealer, until the violation ceases.''.
SEC. 8. NO EFFECT ON STATE LAWS GOVERNING DEALING IN FIREARMS.
Nothing in this Act shall be interpreted to preclude a State from
imposing or enforcing any requirement relating to dealing in firearms
(as defined in section 921(a)(3) of title 18, United States Code).
SEC. 9. REPEAL OF PROHIBITION ON DENIAL OF FEDERAL FIREARM LICENSE DUE
TO LACK OF BUSINESS ACTIVITY.
The matter under the heading ``Bureau of Alcohol, Tobacco, Firearms
and Explosives--Salaries and Expenses'' 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 the 6th proviso.
SEC. 10. REPEAL OF LIMITATIONS RELATING TO USE OF FIREARMS TRACE DATA.
(a) The matter under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title I of division
B of the Consolidated and Further Continuing Appropriations Act, 2012
(18 U.S.C. 923 note; Public Law 112-55; 125 Stat. 609-610) is amended
by striking the 6th proviso.
(b) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title II of
division B of the Consolidated Appropriations Act, 2010 (18 U.S.C. 923
note; Public Law 111-117; 123 Stat. 3128-3129) is amended by striking
``beginning in fiscal year 2010 and thereafter'' and inserting ``in
fiscal year 2010''.
(c) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title II of
division B of the Omnibus Appropriations Act, 2009 (18 U.S.C. 923 note;
Public Law 111-8; 123 Stat. 574-576) is amended by striking ``beginning
in fiscal year 2009 and thereafter'' and inserting ``in fiscal year
2009''.
(d) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title II of
division B of the Consolidated Appropriations Act, 2008 (18 U.S.C. 923
note; Public Law 110-161; 121 Stat. 1903-1904) is amended by striking
``beginning in fiscal year 2008 and thereafter'' and inserting ``in
fiscal year 2008''.
(e) The 6th proviso under the heading ``Bureau of Alcohol, Tobacco,
Firearms and Explosives--Salaries and Expenses'' in title I of the
Science, State, Justice, Commerce, and Related Agencies Appropriations
Act, 2006 (18 U.S.C. 923 note; Public Law 109-108; 119 Stat. 2295-2296)
is amended by striking ``with respect to any fiscal year''.
(f) The 6th proviso under the heading in title I of division B of
the Consolidated Appropriations Act, 2005 (18 U.S.C. 923 note; Public
Law 108-447; 118 Stat. 2859-2860) is amended by striking ``with respect
to any fiscal year''.
(g) Section 644 of title VI of division J of the Consolidated
Appropriations Resolution, 2003 (5 U.S.C. 552 note; Public Law 108-7;
117 Stat. 473-474) is amended by striking ``or any other Act with
respect to any fiscal year''.
SEC. 11. LOST AND STOLEN REPORTING REQUIREMENT.
(a) In General.--Section 922 of title 18, United States Code, is
amended by adding at the end the following:
``(aa) The owner of a firearm shall report the theft or loss of the
firearm, within 30 days after the owner becomes aware of the theft or
loss, to the Attorney General and to the appropriate local
authorities.''.
(b) Civil Penalty.--Section 924 of such title is amended by adding
at the end the following:
``(q) Whoever violates section 922(aa) shall be fined not more than
$1,000 in a civil proceeding.''.
SEC. 12. REPORT ON IMPLEMENTATION OF THIS ACT.
Within 2 years after the date of the enactment of this Act, the
Attorney General shall submit to the Congress a written report on the
implementation of this Act and the amendments made by this Act,
including any remaining steps that are necessary to complete the
implementation, which shall also identify any additional resources that
are required to conduct regular inspections and to ensure that this Act
and the amendments made by this Act are enforced against noncompliant
firearm dealers in a timely manner.
SEC. 13. HEARING.
(a) In General.--The Committee on the Judiciary of the House of
Representatives shall hold a hearing on the report submitted by the
Attorney General under section 12.
(b) Exercise of Rulemaking Authority.--Subsection (a) is enacted--
(1) as an exercise of rulemaking power of the House of
Representatives, and, as such, shall be considered as part of
the rules of the House, and such rules shall supersede any
other rule of the House only to the extent that rule is
inconsistent therewith; and
(2) with full recognition of the constitutional right of
either House to change such rules (so far as relating to the
procedure in such House) at any time, in the same manner, and
to the same extent as in the case of any other rule of the
House.
SEC. 14. DEADLINE FOR ISSUANCE OF FINAL REGULATIONS.
Within 1 year after the date of the enactment of this Act, the
Attorney shall prescribe, in final form, all regulations required to
carry out this Act and the amendments made by this Act.
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