Gun Theft Prevention Act

I 116TH CONGRESS 1ST SESSION H. R. 2674 To enhance safety and security at federally licensed gun shops, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 10, 2019 Mr. MORELLE (for himself, Mr. PAYNE, Mr. HASTINGS, Ms. NORTON, Mr. KRISHNAMOORTHI, Ms. SCHAKOWSKY, and Mr. HIGGINS of New York) introduced the following bill; which was referred to the Committee on the Judiciary 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Gun Theft Prevention Act’’. 5 (b) TABLE OF CONTENTS.—The table of contents of 6 this Act is as follows: 7 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 phys- ical inventory by Federal firearms licensees. Sec. 4. Inspections. VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 2 •HR 2674 IH 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. Deadline for issuance of final regulations. SEC. 2. GUN SHOP SECURITY MEASURES. 1 (a) REGULATIONS.— 2 (1) IN GENERAL.—Section 926 of title 18, 3 United States Code, is amended by adding at the 4 end the following: 5 ‘‘(d) The Attorney General shall prescribe such regu- 6 lations as are necessary to ensure that any premises at 7 which a licensed dealer deals in firearms are secure from 8 theft, which shall include requiring— 9 ‘‘(1) compliance with the security plan sub- 10 mitted by the licensed dealer pursuant to section 11 923(d)(1)(G); 12 ‘‘(2) the use of locked metal cabinets and fire- 13 proof safes; 14 ‘‘(3) security systems, video monitoring, and 15 anti-theft alarms; 16 ‘‘(4) security gates, strong locks, and site hard- 17 ening; and 18 ‘‘(5) concrete bollards and other access controls, 19 if necessary.’’. 20 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 3 •HR 2674 IH (2) TRANSITION RULE.—The regulations pre- 1 scribed under section 926(d)(1) of title 18, United 2 States Code, shall not apply to a person who, on the 3 date of the enactment of this Act, is a licensed deal- 4 er (as defined in section 921(a)(11) of such title), 5 until the earlier of— 6 (A) the date the person complies with sub- 7 section (b)(2) of this section; or 8 (B) the end of the 1-year period that be- 9 gins with the date regulations are prescribed 10 under section 926(d) of such title. 11 (b) SECURITY PLAN SUBMISSION REQUIREMENT.— 12 (1) IN GENERAL.—Section 923(d)(1)(G) of 13 such title is amended by inserting ‘‘the applicant 14 submits with the application a security plan that de- 15 scribes how the applicant will secure, in accordance 16 with the regulations issued under section 926(d), the 17 premises from which the applicant will conduct busi- 18 ness under the license (including in the event of a 19 natural disaster or other emergency), and the appli- 20 cant certifies that, if issued such a license, the appli- 21 cant will comply with the plan’’ before the period. 22 (2) TRANSITION RULE.—A person who, on the 23 date of the enactment of this Act, is a licensed deal- 24 er (as defined in section 921(a)(11) of title 18, 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 4 •HR 2674 IH United States Code) and whose license to deal in 1 firearms, issued under chapter 44 of such title, will 2 not expire before the end of the 1-year period that 3 begins with the date regulations are prescribed 4 under section 926(d) of such title, shall submit to 5 the Attorney General a plan of the type described in 6 section 923(d)(1)(G) of such title not later than the 7 end of that 1-year period. Any plan so submitted 8 shall be considered to be submitted pursuant to such 9 section 923(d)(1)(G), for purposes of such sections 10 923(g)(6)(B) and 926(d). 11 (c) ANNUAL SECURITY PLAN COMPLIANCE CERTIFI- 12 CATION REQUIREMENT.— 13 (1) IN GENERAL.—Section 923 of title 18, 14 United States Code, is amended by adding at the 15 end the following: 16 ‘‘(m)(1) Each licensed dealer shall annually certify to 17 the Attorney General that each premises from which the 18 licensed dealer conducts business subject to license under 19 this chapter is in compliance with the regulations pre- 20 scribed under section 926(d), and include with the certifi- 21 cation the results of a reconciliation of the firearms inven- 22 tory of the licensed dealer with the firearms inventory at 23 the time of the most recent prior certification (if any) 24 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 5 •HR 2674 IH under this paragraph, including a report of any missing 1 firearms. 2 ‘‘(2) The Attorney General may impose a civil money 3 penalty of not more than $5,000 on, and may suspend 4 the license to deal in firearms issued under this section 5 to, a licensed dealer who fails to comply with paragraph 6 (1).’’. 7 (2) TRANSITION RULE.—The amendment made 8 by paragraph (1) of this subsection shall not apply 9 to a person who, on the date of the enactment of 10 this Act, is a licensed dealer (as defined in section 11 921(a)(11) of title 18, United States Code), until 12 the end of the 1-year period that begins with the 13 date person complies with subsection (b)(2) of this 14 section. 15 (d) EFFECTIVE DATE.—The amendments made by 16 this section shall take effect 1 year after the date of the 17 enactment of this Act. 18 SEC. 3. REPEAL OF PROHIBITION ON USE OF FUNDS TO IM- 19 PLEMENT RULE REQUIRING PHYSICAL IN- 20 VENTORY BY FEDERAL FIREARMS LICENS- 21 EES. 22 The matter under the heading ‘‘Bureau of Alcohol, 23 Tobacco, Firearms and Explosives—Salaries and Ex- 24 penses’’ in title II of division B of the Consolidated and 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 6 •HR 2674 IH Further Continuing Appropriations Act, 2013 (Public 1 Law 113–6; 127 Stat. 248) is amended by striking the 2 5th proviso. 3 SEC. 4. INSPECTIONS. 4 (a) ELIMINATION OF LIMIT ON ANNUAL INSPEC- 5 TIONS OF LICENSEES.—Section 923(g)(1)(B)(ii) of title 6 18, United States Code, is amended by striking ‘‘—’’ and 7 all that follows through ‘‘(II)’’. 8 (b) MANDATED ANNUAL INSPECTIONS OF HIGH 9 RISK LICENSED DEALERS, TRIENNIAL INSPECTIONS OF 10 OTHER LICENSED DEALERS.—Section 923(g)(1)(B) of 11 such title is amended by adding after and below the end 12 the following flush sentence: ‘‘The Attorney General shall, 13 without such reasonable cause or warrant, annually in- 14 spect or examine the inventory, records, and business 15 premises of each licensed dealer whom the Attorney Gen- 16 eral regards as a high risk dealer (based on the consider- 17 ations used to do so as of the date of the enactment of 18 this sentence), and triennially inspect or examine the in- 19 ventory, records, and business premises of each other li- 20 censed dealer. Within 6 months after an inspection under 21 this subparagraph reveals a violation of this section or any 22 regulation prescribed under this chapter, and within 6 23 months after a security inspection conducted under para- 24 graph (6)(B)(i) of this subsection, the Attorney General 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 7 •HR 2674 IH shall conduct an inspection to determine whether the viola- 1 tion identified in the preceding inspection has been 2 cured.’’ 3 (c) AUTHORITY TO HIRE ADDITIONAL INDUSTRY 4 OPERATION INVESTIGATORS FOR BATFE.—The Attorney 5 General may hire 650 Industry Operation Investigators 6 for the Bureau of Alcohol, Tobacco, Firearms and Explo- 7 sives, in addition to any personnel needed to carry out this 8 Act and any Industry Operation Investigators authorized 9 by other law. 10 SEC. 5. EMPLOYEE BACKGROUND CHECKS. 11 (a) REQUIREMENTS.— 12 (1) BACKGROUND CHECK REQUIRED BEFORE 13 FIREARM POSSESSION BY DEALER EMPLOYEE.—Sec- 14 tion 923(g) of title 18, United States Code, is 15 amended by adding at the end the following: 16 ‘‘(8) A licensed dealer shall not allow an employee 17 of the licensed dealer to possess a firearm at a premises 18 from which the licensed dealer conducts business subject 19 to license under this chapter unless— 20 ‘‘(A) the licensed dealer has contacted the na- 21 tional instant criminal background check system es- 22 tablished under section 103 of the Brady Handgun 23 Violence Prevention Act for information about 24 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 8 •HR 2674 IH whether it would be unlawful for the individual to 1 receive a firearm; and 2 ‘‘(B) the system has notified the licensee that 3 the information available to the system does not 4 demonstrate that the receipt of a firearm by the in- 5 dividual would violate subsection (g) or (n) of sec- 6 tion 922 or State law.’’. 7 (2) BACKGROUND CHECKS REQUIRED BEFORE 8 ISSUANCE OR RENEWAL OF DEALER LICENSE.—Sec- 9 tion 923(c) of such title is amended by inserting 10 after the 1st sentence the following: ‘‘Notwith- 11 standing the preceding sentence, the Attorney Gen- 12 eral may not issue or renew a license to deal in fire- 13 arms unless the Attorney General has contacted the 14 national instant criminal background check system 15 established under section 103 of the Brady Handgun 16 Violence Prevention Act for information about 17 whether it would be unlawful for any employee of 18 the applicant for the license or renewal, identified by 19 the applicant as having the responsibility to receive 20 a firearm, for information about whether it would be 21 unlawful for the employee to receive a firearm, and 22 the system has notified the Attorney General that 23 the information available to the system does not 24 demonstrate that the receipt of a firearm by the em- 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 9 •HR 2674 IH ployee would violate subsection (g) or (n) of section 1 922 or the law of the State in which the business 2 premises of the applicant subject to the license is lo- 3 cated.’’. 4 (3) EFFECTIVE DATE.—The amendments made 5 by this subsection shall take effect on the date that 6 is 1 year after the date of the enactment of this Act. 7 (b) AUTHORITY OF NICS SYSTEM TO RESPOND TO 8 LICENSED DEALER REQUEST FOR CRIMINAL BACK- 9 GROUND CHECK OF EMPLOYEE OR PROSPECTIVE EM- 10 PLOYEE.—Section 103(b) of the Brady Handgun Violence 11 Prevention Act (34 U.S.C. 40901(b)) is amended by add- 12 ing at the end the following: ‘‘The Attorney General shall 13 ensure that the system responds to any request received 14 by the system from a licensed dealer for information on 15 whether receipt of a firearm by an employee or prospective 16 employee of the licensed dealer would violate such section 17 922 or State law.’’. 18 SEC. 6. GUN STORE THEFTS. 19 (a) IN GENERAL.—Section 923(g)(6) of title 18, 20 United States Code, is amended— 21 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 22 (2) by adding at the end the following: 23 ‘‘(B)(i) Within 30 days after the Attorney General 24 receives a report from a licensed dealer pursuant to sub- 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 10 •HR 2674 IH paragraph (A) of this paragraph of the theft of a firearm, 1 the Attorney General shall conduct an independent inspec- 2 tion of the security of the premises at which the theft oc- 3 curred, which may include an inspection of the measures 4 taken to implement the security plan submitted by the li- 5 censed dealer pursuant to subsection (d)(1)(G). 6 ‘‘(ii) On completion of the security inspection, the At- 7 torney General shall provide the licensed dealer with— 8 ‘‘(I) a notice of any violation by the licensed 9 dealer of any security requirements prescribed under 10 section 926(d); and 11 ‘‘(II) recommendations for improving security 12 of the premises involved.’’. 13 (b) EXEMPTION OF STOLEN FIREARMS FROM PROD- 14 UCT LIABILITY.—Section 4(4) of the Protection of Lawful 15 Commerce in Arms Act (15 U.S.C. 7903(4)) is amended 16 by inserting ‘‘, except any such firearm the theft of which 17 is required by section 923(g)(6)(A) of such title to be re- 18 ported’’ before the period. 19 SEC. 7. CIVIL ENFORCEMENT. 20 Section 923 of title 18, United States Code, as 21 amended by section 2(c)(1) of this Act, is amended by 22 adding at the end the following: 23 ‘‘(n) In the case of a licensed dealer who the Attorney 24 General has found to be in violation of a regulation pre- 25 VerDate Sep 11 2014 21:08 May 23, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2674.IH H2674 pbinns on DSK79D2C42PROD with BILLS 11 •HR 2674 IH scribed under section 926(d), to not have implemented a 1 corrective action required by the Attorney General at the 2 completion of a security inspection conducted under sub- 3 section (g)(6)(B)(i) of this section within 30 days after 4 the date of the inspection, or to be in violation of sub- 5 section (g)(8) of this section— 6 ‘‘(1) the Attorney General shall— 7 ‘‘(A) if the violation is not a result of gross 8 negligence by the licensed dealer— 9 ‘‘(i) in the case of the 1st such viola- 10 tion of the law or regulation by the li- 11 censed dealer, if not preceded by a viola- 12 tion to which subparagraph (B) applies, 13 transmit to the licensed dealer a written 14 notice specifying the violation, which shall 15 include a copy of the provision of law or 16 regulation violated and a plan for how to 17 cure the violation; 18 ‘‘(ii) in the case of the 2nd such viola- 19 tion by the licensed dealer, if not preceded 20 by a violation to which subparagraph (B) 2 [Text truncated for display. 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