Firearms Retailer Code of Conduct Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 2753 To require federally licensed firearms manufacturers, importers, and dealers and their employees to undergo training to be eligible to sell a firearm, to require a notice to be posted at retail firearms locations that describes the signs of unlawful firearms purchases, to require such licensees to maintain physical security elements to prevent theft and a minimum level of business liability insurance, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 20, 2023 Mr. CROW (for himself, Mr. AUCHINCLOSS, Ms. DEAN of Pennsylvania, Ms. KELLY of Illinois, Ms. NORTON, Ms. SCANLON, Mr. SCHIFF, Mr. SWALWELL, Ms. PETTERSEN, and Ms. DEGETTE) introduced the fol- lowing bill; which was referred to the Committee on the Judiciary A BILL To require federally licensed firearms manufacturers, import- ers, and dealers and their employees to undergo training to be eligible to sell a firearm, to require a notice to be posted at retail firearms locations that describes the signs of unlawful firearms purchases, to require such licensees to maintain physical security elements to pre- vent theft and a minimum level of business liability in- surance, 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 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2753 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Firearms Retailer 2 Code of Conduct Act of 2023’’. 3 SEC. 2. CODE OF CONDUCT FOR FIREARMS MANUFACTUR- 4 ERS, IMPORTERS, AND DEALERS. 5 (a) IN GENERAL.—Section 923 of title 18, United 6 States Code, is amended by adding at the end the fol- 7 lowing: 8 ‘‘(m)(1)(A) The Attorney General shall annually 9 make available to each licensed importer, licensed manu- 10 facturer, and licensed dealer, and each employee of such 11 a licensee who is authorized to engage in the transfer of 12 firearms or ammunition in the course of the firearms busi- 13 ness to unlicensed persons, a training course in the con- 14 duct of firearm transfers. 15 ‘‘(B) The training course shall describe Federal law 16 governing firearms transfers, and cover, at a minimum, 17 the following matters: 18 ‘‘(i) How to recognize and identify straw pur- 19 chasers and fraudulent activity. 20 ‘‘(ii) The indicators that a person is attempting 21 to purchase a firearm illegally. 22 ‘‘(iii) How to recognize and identify indicators 23 that an individual intends to use a firearm for un- 24 lawful purposes. 25 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2753 IH ‘‘(iv) How to recognize and identify indicators 1 that an individual intends to use a firearm for self- 2 harm. 3 ‘‘(v) How to prevent theft or burglary of fire- 4 arms and ammunition. 5 ‘‘(vi) How to respond in the circumstances de- 6 scribed in clauses (i) through (v), and the applicable 7 reporting requirements. 8 ‘‘(vii) Other reasonable business practices that 9 the Attorney General determines will deter gun traf- 10 ficking, or deter the provision of a firearm to those 11 who indicate an intent to use a firearm for unlawful 12 purposes or for self-harm. 13 ‘‘(C) The training course shall include an examina- 14 tion with not less than 20 questions derived from the 15 course materials and intended to confirm that a course 16 participant has learned the information covered by the 17 course. To receive certification of completion of the course, 18 a participant must answer at least 70 percent of the exam- 19 ination questions correctly. 20 ‘‘(D) Not less frequently than annually, the Attorney 21 General, in consultation with the Assistant Attorney Gen- 22 eral for the Civil Rights Division, shall review the training 23 course materials, and revise them as necessary. 24 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2753 IH ‘‘(E) On successful completion of the training course 1 by a participant— 2 ‘‘(i) the participant shall attest to his or her 3 participation in the course; 4 ‘‘(ii) the participant shall attest to his or her 5 receipt of the course materials; 6 ‘‘(iii) if the participant is not a licensed manu- 7 facture, licensed importer, or licensed dealer, the 8 participant has submitted to the national instant 9 criminal background check system established under 10 section 103 of the Brady Handgun Violence Preven- 11 tion Act sufficient information to enable the system 12 to determine whether the participant is prohibited by 13 subsection (g) or (n) of section 922 of this title or 14 State, local, or Tribal law from receiving a firearm 15 or if the licensee would be prohibited by section 16 922(d) of this title from transferring a firearm to 17 the participant; and 18 ‘‘(iv) if the system has determined that the par- 19 ticipant is not so prohibited, the Attorney General 20 shall immediately issue to the participant, through 21 United States mail or electronic means, a certificate 22 which indicates successful completion of the training 23 course and includes a unique certification number, 24 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2753 IH both of which shall expire 2 years after issuance un- 1 less renewed. 2 ‘‘(F) The Attorney General shall— 3 ‘‘(i) create and maintain a database which iden- 4 tifies each individual to whom such a certificate is 5 issued, the date the certificate is issued, the date the 6 certificate expires, and the unique certification num- 7 ber on the certificate; 8 ‘‘(ii) make readily available to persons licensed 9 under this chapter and Federal, State, and local law 10 enforcement authorities, on request, the certification 11 status of current or potential employees; and 12 ‘‘(iii) on a monthly basis, provide to the Bureau 13 of Alcohol, Tobacco, Firearms, and Explosives a 14 complete list of the certificates issued under sub- 15 paragraph (E) that have expired or been renewed 16 since the most recent prior provision of information, 17 if any, to the system under this clause. 18 ‘‘(G) Each licensee referred to in subparagraph (A) 19 shall keep— 20 ‘‘(i) a copy of any certificate issued to the li- 21 censee under subparagraph (E); and 22 ‘‘(ii) a copy of any such certificate issued to any 23 employee of the licensee, throughout the duration of 24 employment. 25 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 2753 IH ‘‘(H) Beginning 545 days after the date of the enact- 1 ment of this subsection, it shall be unlawful for such a 2 licensee or an employee of such a licensee to transfer a 3 firearm or ammunition in the course of firearms business, 4 unless the licensee or employee, as the case may be, has 5 been issued a certificate under this paragraph which has 6 not expired. 7 ‘‘(2) In the course of firearms business with a person 8 who is not such a licensee, such a licensee— 9 ‘‘(A) shall not transfer a firearm to an indi- 10 vidual if the licensee or an employee of the licensee 11 knows or has reasonable cause to know that the in- 12 dividual is a straw purchaser or a gun trafficker; 13 ‘‘(B) shall not transfer a firearm or ammuni- 14 tion to an individual if the licensee or an employee 15 of the licensee knows or has reasonable cause to 16 know that the individual is intoxicated; 17 ‘‘(C) shall not transfer a firearm or ammunition 18 to an individual if the licensee or an employee of the 19 licensee knows or has reasonable cause to know that 20 the individual will attempt to harm the individual or 21 others with the firearm or ammunition; 22 ‘‘(D) shall not transfer a firearm to an indi- 23 vidual not paying in United States currency, unless 24 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 2753 IH the identity of the individual matches the name on 1 the payment method used by the individual; and 2 ‘‘(E) immediately notify the Bureau of Alcohol, 3 Tobacco, Firearms, and Explosives and local law en- 4 forcement authorities if the licensee or an employee 5 of the licensee knows or has reasonable cause to 6 know that the individual has engaged or attempted 7 to engage in a straw purchase or gun trafficking. 8 ‘‘(3)(A) The Attorney General shall make available 9 to each licensee referred to in paragraph (1)(A) written 10 protocols which— 11 ‘‘(i) outline the indicators of straw purchasing 12 and gun trafficking, including the presence of a pro- 13 spective firearm transferee who— 14 ‘‘(I) is accompanied by 1 or more individ- 15 uals; 16 ‘‘(II) is communicating with other individ- 17 uals by telephone or other means; 18 ‘‘(III) is buying multiple firearms; 19 ‘‘(IV) has been the subject of a crime gun 20 trace; 21 ‘‘(V) has purchased a firearm in the pre- 22 ceding 30 days; or 23 ‘‘(VI) otherwise indicates that a firearm is 24 being obtained for another person; 25 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 2753 IH ‘‘(ii) instruct licensees and their employees to 1 attempt to ascertain whether a prospective firearm 2 transferee is lawfully purchasing a firearm, including 3 by asking questions of the prospective firearm trans- 4 feree (including whether he or she intends to trans- 5 fer the firearm to another person); and 6 ‘‘(iii) inform licensees and their employees 7 about how to report a suspected fraudulent firearm 8 purchase to the Bureau of Alcohol, Tobacco, Fire- 9 arms, and Explosives. 10 ‘‘(B) Beginning 545 days after the date of the enact- 11 ment of this subsection, each such licensee shall— 12 ‘‘(i) obtain the written protocols described in 13 subparagraph (A); and 14 ‘‘(ii) during all business hours, display the writ- 15 ten protocols at each point of sale in the firearms 16 business of the licensee, in a manner that is clearly 17 visible to employees of the business. 18 ‘‘(4) Beginning 545 days after the date of the enact- 19 ment of this subsection, each licensee referred to in para- 20 graph (1)(A) of this subsection shall maintain general 21 business and liability insurance as described in subsection 22 (d)(1)(F)(iv) during each day of a calendar month, unless 23 the licensee has certified to the Attorney General, on the 24 1st day of that month, that the licensee— 25 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 2753 IH ‘‘(A) did not transfer more than 20 firearms in 1 the 12-month period that precedes the date of the 2 certification; and 3 ‘‘(B) expects to transfer not more than 20 fire- 4 arms in the 12-month period that begins with that 5 date. 6 ‘‘(5)(A) Beginning on the date that is 24 months 7 after the date of the enactment of this subsection, each 8 licensee referred to in paragraph (1)(A) of this subsection 9 shall, when the premises covered by the license is not open 10 for business except as provided for in subsection (j), secure 11 each firearm in the business inventory of the licensee by 12 means of devices or storage containers that are designed 13 to deny unauthorized access to, and theft of, firearms. 14 ‘‘(B) Each device or storage container shall be se- 15 cured by a combination lock, key lock, or lock based on 16 biometric information which, once locked, is incapable of 17 being opened without the combination, key, or biometric 18 information, respectively.’’. 19 (b) DEADLINE FOR DEVELOPMENT OF FIREARM 20 TRANSFER TRAINING COURSE.—Within 180 days after 21 the date of the enactment of this Act, the Attorney Gen- 22 eral, in consultation with the Assistant Attorney General 23 for the Civil Rights Division, shall develop the training 24 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 2753 IH course provided for in section 923(m)(1) of title 18, 1 United States Code. 2 (c) DEADLINE FOR DEVELOPMENT OF WRITTEN 3 BUSINESS PROTOCOLS FOR FIREARMS SALES.—Within 4 180 days after the date of the enactment of this Act, the 5 Attorney General shall, in consultation with the Assistant 6 Attorney General for the Civil Rights Division— 7 (1) develop the written protocols provided for in 8 section 923(m)(3) of title 18, United States Code; 9 and 10 (2) not less frequently than annually, review the 11 protocols, and revise them as necessary. 12 (d) BUSINESS LIABILITY INSURANCE CERTIFICATION 13 REQUIRED IN APPLICATION FOR FIREARMS LICENSE.— 14 Section 923(d)(1)(F) of title 18, United States Code, is 15 amended— 16 (1) by striking ‘‘and’’ at the end of clause 17 (ii)(II); and 18 (2) by adding at the end the following: 19 ‘‘(iv) the applicant has applied for, and will 20 not conduct the business before the applicant 21 has received, a general business and liability in- 22 surance policy from an insurance company li- 23 censed to do business in the State in which the 24 licensed premises is located, which provides cov- 25 VerDate Sep 11 2014 22:09 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2753.IH H2753 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 2753 IH erage for damages for the negligent or unlawful 1 transfer of a firearm in an amount of at least 2 $1,000,000, unless the applicant certifies in the 3 application that the applicant expects to trans- 4 fer to persons not licensed under this chapter 5 not more than 20 firearms per year; and’’. 6 (e) VALIDATION OF LICENSEE AND EMPLOYEE CER- 7 TIFICATIONS.—Section 922(t)(1) of such title is amend- 8 ed— 9 (1) by striking ‘‘and’’ at the end of subpara- 10 graph (C)(iii)(II); 11 (2) by striking the period at the end of sub- 12 paragraph (D) and inserting ‘‘; and’’; and 13 (3) by adding at the end the following: 14 ‘‘(E) a unique certification number has been 15 issued to the transferor under section 16 923(m)(1)(E)(iv) and has not expired, and the 17 transferor has validated that number with the sys- 18 tem.’’. 19 SEC. 3. DEFINITIONS. 20 Section 921(a) of title 18, United States Code, is 21 amended by adding at the end the following: 22 ‘‘(38) The term ‘straw purchase’ means the purchase 23 of a firearm by an individual who conceals, or intends to 24 conce [Text truncated for display. Full text available on Congress.gov.]