Federal

Federal Firearm Licensee Act

Source: Congress.gov · 11,425 words in original text

What This Bill Does

This bill modernizes federal laws that control who can sell firearms and how they must operate their businesses. It requires gun dealers to secure their inventory better, keep detailed records, and submit to more frequent inspections. The bill also creates new rules for online marketplaces that host firearm sales. ##

Who It Affects

- Licensed firearm dealers (people who sell guns for profit) - Licensed manufacturers and importers of firearms - Licensed collectors of firearms - Licensed facilitators (operators of online marketplaces where guns are sold) - Employees of gun dealers - The Attorney General and Bureau of Alcohol, Tobacco, Firearms and Explosives - Law enforcement agencies ##

Key Provisions

- Licensed dealers must submit a security plan describing how they will protect their firearm inventory from theft, including use of locked cabinets, safes, security systems, and video monitoring (Sec. 5) - Licensed dealers must conduct quarterly physical checks of their firearm inventory and report any lost, stolen, or unaccounted for firearms to the Attorney General (Sec. 6) - The Attorney General shall establish electronic, searchable databases of all firearm records within 3 years to help law enforcement investigate crimes (Sec. 7) - Licensed dealers operating retail locations must maintain video surveillance of all areas where firearms are sold and retain surveillance records for at least 90 days (Sec. 7) - Licensed dealers must be inspected at least annually if identified as high-risk dealers, and at least every 5 years for all other dealers (Sec. 11) - Online marketplaces hosting firearm sales must be licensed as facilitators and require that all firearm sales go through a licensed dealer who conducts a background check (Sec. 20) - The Attorney General may hire 650 additional investigators for the Bureau of Alcohol, Tobacco, Firearms and Explosives (Sec. 26) ##

What Changes

**For gun dealers:** - They must now submit written security plans before getting or renewing licenses - They must conduct quarterly inventory checks instead of being prohibited from doing so - They face annual inspections if deemed high-risk, rather than less frequent inspections - Their licensing fees increase (for example, manufacturer fees go from $1,000 to $2,000 annually) - They must keep firearm transaction records permanently at their business instead of destroying them - They must maintain video surveillance of sales areas - They must post warning signs about video surveillance - They must certify annually that their premises comply with security requirements **For background checks:** - Records must be retained for 90 business days instead of being destroyed within 24 hours - The Attorney General must prepare reports of people who make multiple firearm purchases within short timeframes **For online firearm sales:** - Websites and apps hosting firearm sales must become licensed facilitators - All firearm transactions through these platforms must be completed through a licensed dealer who conducts a background check - These platforms must maintain records of sales transactions **For enforcement:** - The Attorney General gets authority to deny licenses if issuing one would pose a danger to public safety or if the applicant is unlikely to comply with the law - The Attorney General can suspend or revoke dealer licenses, not just revoke them - Violations of regulations can result in fines, license suspension, or license revocation depending on severity - The Attorney General can conduct security inspections after a dealer reports stolen firearms **For records:** - Firearm dealers can now use electronic recordkeeping systems - The Attorney General is prohibited from remotely accessing dealer records without a warrant ##

Important Definitions

- **Facilitator**: A person or company that operates an online marketplace where firearm sales, purchases, or transfers can be made. A facilitator is not considered a facilitator if they actively audit quarterly to prevent illegal transactions and ban violators from their platform (Sec. 3) - **Occasional**: Fewer than 5 transactions in a 12-month period (Sec. 3) - **Personal collection**: Firearms obtained only for an individual's personal use and not for resale or trade. A firearm received through inheritance is not considered part of a personal collection until the person has owned it for 1 year (Sec. 3) - **Business inventory firearm**: A firearm that federal law requires to be recorded in a dealer's acquisition and disposition logs (Sec. 3) - **Frame**: The part of a handgun that holds back the hammer, striker, bolt, or similar component before the gun fires, even if pins or attachments are needed to connect it (Sec. 3) - **Receiver**: The part of a rifle, shotgun, or other non-handgun firearm that blocks or seals the breech before firing, even if pins or attachments are needed to connect it (Sec. 3) - **High capacity magazine**: A magazine capable of holding more than 10 rounds of ammunition, or magazines that can be readily converted to hold more than 10 rounds (Sec. 9) - **High-risk dealer**: A dealer the Attorney General determines is high-risk based on factors including reports of lost or stolen firearms in the prior 5 years, past violations, warning letters, or multiple firearms traced to crimes committed within 3 years of the sale (Sec. 11) ##

Effective Date

Not specified in bill text

I 118TH CONGRESS 1ST SESSION H. R. 1478 To modernize the business of selling firearms. IN THE HOUSE OF REPRESENTATIVES MARCH 9, 2023 Ms. KELLY of Illinois (for herself, Mr. CICILLINE, Ms. LEE of California, Mr. MORELLE, Mr. PANETTA, Mr. PASCRELL, Mr. AUCHINCLOSS, Mr. BLU- MENAUER, Mr. BOWMAN, Mr. BOYLE of Pennsylvania, Mr. CARSON, Mr. CASTEN, Ms. CASTOR of Florida, Mrs. CHERFILUS-MCCORMICK, Ms. CROCKETT, Mr. CROW, Mr. DAVIS of Illinois, Mr. DESAULNIER, Mr. ESPAILLAT, Mr. FROST, Mr. IVEY, Mr. MOULTON, Ms. NORTON, Mr. PAYNE, Ms. PLASKETT, Mr. QUIGLEY, Mrs. RAMIREZ, Mr. RASKIN, Ms. SA´NCHEZ, Ms. SCANLON, Ms. SCHOLTEN, Mr. SWALWELL, Ms. TITUS, Ms. TLAIB, Ms. TOKUDA, Mrs. WATSON COLEMAN, Ms. WILSON of Flor- ida, Ms. MCCOLLUM, Mr. VARGAS, and Mr. TONKO) introduced the fol- lowing bill; which was referred to the Committee on the Judiciary A BILL To modernize the business of selling firearms. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Federal Firearm Li- 4 censee Act’’. 5 SEC. 2. FINDINGS. 6 The Congress finds the following: 7 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 1478 IH (1) A growing body of evidence demonstrates 1 that gun dealers’ sales practices affect the prob- 2 ability of guns getting to criminals and that policies 3 designed to hold gun sellers accountable can curtail 4 the diversion of guns to criminals. 5 (2) Federal laws governing firearm dealers have 6 not been updated in over 30 years, contain safe- 7 guards that protect dealers who engage in illegal 8 practices from adverse enforcement action, frustrate 9 law enforcement efforts to curb gun trafficking and 10 violence and are, thus, inadequate to meet the reali- 11 ties of the twenty-first century. 12 (3) The Tiahrt Amendments, for one, severely 13 limit the authority of the Bureau of Alcohol, To- 14 bacco, Firearms and Explosives (ATF) to disclose 15 crime gun trace data to the public, prevent the col- 16 lection of valuable information, and the establish- 17 ment of effective policies to prevent illegal guns from 18 being used in crimes and impede enforcement of the 19 gun laws by requiring most background check 20 records to be destroyed within 24 hours, and by bar- 21 ring the Government from requiring annual inven- 22 tory audits by owners of gun shops. Repealing the 23 Tiahrt Amendments would support law enforcement 24 efforts and give the public vital information needed 25 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 1478 IH to craft the most effective policies against illegal 1 guns. 2 (4) Additionally, Federal law imposes no re- 3 quirements that dealers physically secure their high- 4 ly valuable and lethal inventory. The number of gun 5 thefts from licensed gun dealers has increased more 6 than the number from any other source. Between 7 2013 and 2017, the number of firearms stolen in 8 gun-dealer burglaries more than doubled and the 9 number of firearms stolen in gun-dealer robberies 10 tripled. 11 SEC. 3. DEFINITIONS. 12 Section 921(a) of title 18, United States Code, is 13 amended by adding at the end the following: 14 ‘‘(38) The term ‘facilitator’ means any person en- 15 gaged in the business of hosting a commercial marketplace 16 in which offers for firearm sales, purchases, or other 17 transfers are allowed to be made, except that such a per- 18 son shall not be considered to be a facilitator with respect 19 to any transaction that is made through the use of a 20 website or mobile application owned or operated by the 21 person if the transaction violates the terms of service of 22 the website or mobile application and the person has made 23 a good faith effort to enforce the terms of service by, at 24 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 1478 IH a minimum, auditing firearms transactions on a quarterly 1 basis to ensure compliance with this chapter. 2 ‘‘(39) The term ‘occasional’ means, with respect to 3 transactions, fewer than 5 transactions in a 12-month pe- 4 riod. 5 ‘‘(40) The term ‘personal collection’ includes any fire- 6 arm obtained only for the personal use of an individual 7 and not for the purpose of selling or trading, except that 8 a firearm obtained through inheritance shall not be consid- 9 ered part of a personal collection until the firearm has 10 been possessed for 1 year. 11 ‘‘(41) The term ‘business inventory firearm’ means, 12 with respect to a person, a firearm required by law to be 13 recorded in the acquisition and disposition logs of any fire- 14 arms business of the person. 15 ‘‘(42)(A) The term ‘frame’ means the part of a hand- 16 gun, or variants thereof, that provides housing or a struc- 17 ture for the primary energized component designed to hold 18 back the hammer, striker, bolt, or similar component prior 19 to initiation of the firing sequence (such as a sear or the 20 equivalent), even if pins or other attachments are required 21 to connect such component to the housing or structure. 22 ‘‘(B) The term ‘receiver’ means the part of a rifle, 23 shotgun, or projectile weapon other than a handgun, or 24 variants thereof, that provides housing or a structure for 25 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 1478 IH the primary component designed to block or seal the 1 breech prior to initiation of the firing sequence (such as 2 a bolt, breechblock, or the equivalent), even if pins or other 3 attachments are required to connect such component to 4 the housing or structure. 5 ‘‘(C) For purposes of this paragraph, the terms ‘vari- 6 ant’ and ‘variants thereof’ mean a weapon utilizing a simi- 7 lar frame or receiver design irrespective of new or different 8 model designations or configurations, characteristics, fea- 9 tures, components, accessories, or attachments. For exam- 10 ple, an AK-type firearm with a short stock and a pistol 11 grip is a pistol variant of an AK-type rifle, an AR-type 12 firearm with a short stock and a pistol grip is a pistol 13 variant of an AR-type rifle, and a revolving cylinder shot- 14 gun is a shotgun variant of a revolver.’’. 15 SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION. 16 Section 922 of title 18, United States Code, is 17 amended by striking subsection (s). 18 SEC. 5. PHYSICAL SECURITY OF DEALER PREMISES. 19 (a) SECURITY PLAN SUBMISSION REQUIREMENT.— 20 (1) IN GENERAL.—Section 923(d)(1)(G) of title 21 18, United States Code, is amended by striking the 22 period at the end and inserting ‘‘, and the applicant 23 submits with the application a security plan that de- 24 scribes how the applicant will secure, in accordance 25 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •HR 1478 IH with the regulations issued under section 926(d), the 1 premises from which the applicant will conduct busi- 2 ness under the license (including in the event of a 3 natural disaster or other emergency), and the appli- 4 cant certifies that, if issued such a license, the appli- 5 cant will comply with the plan; and’’. 6 (2) WRITTEN APPROVAL REQUIRED BEFORE LI- 7 CENSE RENEWAL.—Section 923(d)(1) of such title is 8 amended— 9 (A) in subparagraph (F)(iii), by striking 10 ‘‘and’’ after the semicolon; and 11 (B) by adding at the end the following: 12 ‘‘(H) in the case of an application to renew a 13 license to deal in firearms— 14 ‘‘(i) the license is not suspended; 15 ‘‘(ii) the applicant has not had a license 16 issued under this chapter revoked; and 17 ‘‘(iii) the Attorney General has inspected 18 the premises and provided written approval of 19 the security plan submitted by the applicant 20 under subparagraph (G).’’. 21 (3) APPLICABILITY.—A person who, on the 22 date of the enactment of this Act, is a licensed deal- 23 er (as defined in section 921(a)(11) of title 18, 24 United States Code) and whose license to deal in 25 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •HR 1478 IH firearms, issued under chapter 44 of such title, will 1 not expire before the end of the 1-year period that 2 begins with the date regulations are prescribed 3 under section 926(d) of such title, shall submit to 4 the Attorney General a plan of the type described in 5 section 923(d)(1)(G) of such title not later than the 6 end of that period. Any plan so submitted shall be 7 considered to be submitted pursuant to such section 8 923(d)(1)(G). 9 (b) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI- 10 CATION REQUIREMENT.— 11 (1) IN GENERAL.—Section 923 of such title is 12 amended by adding at the end the following: 13 ‘‘(m)(1) Each licensed manufacturer, licensed im- 14 porter, and licensed dealer shall annually certify to the At- 15 torney General that each premises from which the licensee 16 conducts business subject to license under this chapter is 17 in compliance with the regulations prescribed under sec- 18 tion 926(d), and include with the certification the results 19 of a reconciliation of the resale firearms then in the busi- 20 ness inventory of the licensee against the resale firearms 21 in the business inventory of the licensee at the time of 22 the most recent prior certification (if any) under this para- 23 graph, and all dispositions and acquisitions of resale fire- 24 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •HR 1478 IH arms in the year covered by the certification, identifying 1 and reporting any missing firearm. 2 ‘‘(2) The Attorney General shall impose a civil money 3 penalty of not more than $5,000 on, and may suspend 4 the license issued under this section to, a licensee who fails 5 to comply with paragraph (1).’’. 6 (2) APPLICABILITY.—The amendment made by 7 paragraph (1) of this subsection shall not apply to 8 a person who, on the date of the enactment of this 9 Act, is a licensee referred to in section 923(m) of 10 title 18, United States Code, until the end of the 1- 11 year period that begins with the date the person 12 complies with subsection (a)(2) of this section. 13 (c) REGULATIONS.— 14 (1) IN GENERAL.—Section 926 of such title is 15 amended by adding at the end the following: 16 ‘‘(d) The Attorney General shall prescribe such regu- 17 lations as are necessary to ensure that any premises at 18 which a licensee referred to in section 923(m) conducts 19 business is secure from theft, which shall include requir- 20 ing— 21 ‘‘(1) compliance with the security plan sub- 22 mitted by the licensee pursuant to section 23 923(d)(1)(G); 24 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •HR 1478 IH ‘‘(2) the use of locked metal cabinets and fire- 1 proof safes; 2 ‘‘(3) security systems, video monitoring, and 3 antitheft alarms; 4 ‘‘(4) security gates, strong locks, and site hard- 5 ening; 6 ‘‘(5) concrete bollards and other access controls, 7 if necessary; and 8 ‘‘(6) the use of any other security-enhancing 9 features appropriate for the licensee’s specific cir- 10 cumstances.’’. 11 (2) APPLICABILITY.—The regulations pre- 12 scribed under section 926(d)(1) of such title shall 13 not apply to a person who, on the date of the enact- 14 ment of this Act, is a licensee referred to in section 15 923(m) of such title, until the earlier of— 16 (A) the date the person complies with sub- 17 section (b)(2) of this section; or 18 (B) the end of the 1-year period that be- 19 gins with the date regulations are prescribed 20 under section 926(d) of such title. 21 SEC. 6. BUSINESS INVENTORY FIREARMS. 22 (a) REQUIREMENT TO TRANSFER FIREARM IN PER- 23 SONAL COLLECTION TO BUSINESS INVENTORY BEFORE 24 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •HR 1478 IH DISPOSITION.—Section 923(c) of title 18, United States 1 Code, is amended— 2 (1) by striking the 2nd sentence and inserting 3 the following: ‘‘Nothing in this chapter shall be con- 4 strued to prohibit a licensed manufacturer, licensed 5 importer, or licensed dealer from maintaining a per- 6 sonal collection of firearms.’’; 7 (2) by striking the 3rd sentence; and 8 (3) by adding at the end the following: ‘‘Any 9 firearm disposed of by a licensee shall be from the 10 business inventory of the licensee.’’. 11 (b) LICENSEE FIREARMS INVENTORY.—Section 12 923(g) of such title is amended by adding at the end the 13 following: 14 ‘‘(8) Each licensee shall conduct a quarterly physical 15 check of the firearms inventory of the business of the li- 16 censee licensed under this chapter and report any lost, sto- 17 len, or unaccounted for firearm to the Attorney General 18 and appropriate local authorities in accordance with regu- 19 lations which shall be prescribed by the Attorney General 20 and shall require, at a minimum, the recording of the date 21 of receipt of the firearm, the name, address, and license 22 number, if applicable, of the person from whom the fire- 23 arm was received, the name of the manufacturer and, if 24 applicable, importer of the firearm, the model, serial num- 25 VerDate Sep 11 2014 17:08 Mar 25, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1478.IH H1478 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •HR 1478 IH ber, type, and caliber or gauge of the firearm, and the 1 date of the sale or other disposition of the firearm. This 2 chapter shall not be interpreted to prohibit the Attorney 3 General from, at any time, requiring the regular or one- 4 time submission of the inventory records of a licensee to 5 ensure that the licensee is in compliance with this chap- 6 ter.’’. 7 (c) REPEAL OF LIMITATIONS ON IMPOSITION OF RE- 8 QUIREMENT THAT FIREARMS DEALERS CONDUCT PHYS- 9 ICAL CHECK OF FIREARMS INVENTORY.— 10 (1) The 5th proviso under the heading ‘‘Bureau 11 of Alcohol, Tobacco, Firearms and Explosives—Sala- 12 ries and Expenses’’ in title II of division B of the 13 Consolidated and Further Continuing Appropria- 14 tions Act, 2013 (18 U.S.C. 923 note; Public Law 15 113–6; 127 Stat. 248) is amended by striking ‘‘and 16 any fiscal year thereaft [Text truncated for display. Full text available on Congress.gov.]

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