Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE) Modernization and Reform Act of 2006 - (Sec. 2) Amends the federal criminal code to revise the civil penalties for violations of firearms law and the procedures for assessing such penalties. Requires fines to be based upon the nature and severity of the violation, the size of the firearms business involved, and the prior record of the firearm's licensee. Limits total civil penalties to $15,000.
Allows the Attorney General to consider the financial ability of a licensee to pay a civil penalty and defer or suspend part or all of the penalty on a licensee whose license is suspended.
Imposes a five-year limitation period for civil penalty enforcement actions.
Revises procedures for civil enforcement hearings before an administrative law judge.
(Sec. 3) Requires the Attorney General to make a preliminary determination on firearm license applications and to notify applicants in writing of a proposed denial. Allows license applicants to obtain the reasons for the denial and to request a hearing on the application.
(Sec. 4) Defines the legal standard of "willfully" for purposes of determining violations of firearm requirements to require a showing that a person knew of a legal duty and engaged in conduct knowingly and in intentional disregard of the duty.
(Sec. 5) Directs the Attorney General to establish guidelines for Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) inspections, examinations, or investigations of possible firearms violations.
(Sec. 6) Requires the Inspector General of the Department of Justice to review and report to the House and Senate Judiciary Committees on ATF operations relating to the gun show enforcement program and blanket residency checks of prospective and actual firearms purchases.
(Sec. 7) Amends the federal criminal code to prohibit ATF from disclosing information on firearms purchasers other than to a court or to law enforcement officials.
(Sec. 8) Permits a person whose firearms license is expired, surrendered, or revoked 60 days to liquidate firearms inventory. Allows extensions of such 60-day period for reasonable cause.
(Sec. 9) Requires the Attorney General to notify the transferee of a firearms business that the former owner of such business was operating in violation of firearms requirements and to not presume that the transferee is committing the violation.
(Sec. 10) Amends federal criminal code provisions relating to firearms record-keeping requirements to prohibit a materially false entry or an omission of a materially significant entry in a required record (currently, "any false entry" or the omission of an "appropriate entry" is prohibited).
(Sec. 11) Requires any state agency that stores or keeps explosive materials to submit a written report to the Attorney General that specifies each location at which such materials are kept or stored and the types and amounts of such materials. Makes certain federal regulations governing the storage of explosive applicable to state agencies storing explosive materials.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5092 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5092
To modernize and reform the Bureau of Alcohol, Tobacco, Firearms, and
Explosives.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 5, 2006
Mr. Coble (for himself and Mr. Scott of Virginia) introduced the
following bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To modernize and reform the Bureau of Alcohol, Tobacco, Firearms, and
Explosives.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bureau of Alcohol, Tobacco,
Firearms, and Explosives (BATFE) Modernization and Reform Act of
2006''.
SEC. 2. GRADUATED PENALTIES FOR CIVIL VIOLATIONS BY FEDERAL FIREARMS
LICENSEES.
(a) In General.--Section 923 of title 18, United States Code, is
amended by striking subsections (e) and (f) and inserting the
following:
``(e)(1)(A) If the Attorney General determines that a licensee
under this section has willfully violated any provision of this chapter
or any regulation prescribed under this chapter, or has failed to have
secure gun sotrage or safety devices available at any place in which
firearms are sold under the license to persons who are not licensees
(except because of theft, casualty loss, consumer sales, backorders
from a manufacturer, or any other similar reason beyond the control of
the licensee), the Attorney General may--
``(i) if the violation is not of a serious nature--
``(I) impose on the licensee a civil money penalty
of not more than $1,000 for each such violation, except
that the total amount of penalties imposed on a
licensee under this subclause for violations arising
from a single inspection or examination shall not
exceed $5,000; or
``(II) suspend the license for not more than 30
days, and specify the circumstances under which the
suspension is to be terminated, if, in the period for
which the license is in effect, there have been at
least 2 prior occasions on which the licensee has been
determined to have violated this chapter; or
``(ii) if the violation is of a serious nature--
``(I) impose on the licensee a civil money penalty
of not more than $2,500 for each such violation, except
that the total amount of penalties imposed on a
licensee under this subclause for a violations arising
from a single inspection or examination shall not
exceed $15,000;
``(II) suspend the license for not more than 90
days, and specify the circumstances under which the
suspension is to be terminated;
``(III) revoke the license; or
``(IV) take the actions described in subclauses (I)
and (II), or subclauses (I) and (III).
``(B)(i) In determining the amount of a civil money penalty to
impose under subparagraph (A) on a licensee, the nature and severity of
the violation involved, the size of the firearms business operated by
the licensee, and the prior record of the licensee shall be considered.
``(ii) For purposes of subparagraph (A), violation of a provision
of this chapter with respect to 2 or more firearms during a single
transaction shall be considered a single violation of the provision.
``(C) For purposes of subparagraph (A), a violation of this chapter
shall be considered to be of a serious nature if the violation--
``(i) results in or could have resulted in the transfer of
a firearm or ammunition to a person prohibited from possessing
or receiving the firearm or ammunition under this chapter;
``(ii) obstructs or could have obstructed a bona fide civil
or criminal investigation or prosecution; or
``(iii) prevents or could have prevented a licensee from
complying with subsection (g)(7).
``(D) The Attorney General may not commence an enforcement action
under subparagraph (A) with respect to a violation after the 5-year
period that begins with--
``(i) the date of the violation; or
``(ii) if the licensee involved intentionally obstructed
discovery of the violation, the date of discovery of the
violation.
``(2)(A) Not less than 30 days before the effective date of any
penalty imposed on a licensee by reason of a determination made under
paragraph (1), the Attorney General shall send the licensee a written
notice of--
``(i) the determination, and the grounds on which the
determination was made;
``(ii) the nature of the penalty; and
``(iii) how, and by when, the licensee may request a
hearing to review the determination.
``(B) A hearing to review a determination made under paragraph (1)
with respect to a licensee shall not be held unless the licensee
requests such a hearing within 30 days after receiving the notice of
the determination sent pursuant to subparagraph (A).
``(C) On timely receipt from the licensee of a request for such a
review, the Attorney General shall stay the imposition under paragraph
(1) of any penalty involved, pending resolution of the review.
``(3)(A) Within 90 days after timely receipt from a licensee of a
request to review a determination made under paragraph (1) (or at such
later time as is agreed to by the Attorney General and the licensee),
an administrative law judge shall hold a hearing, at a location
convenient to the licensee, to review the determination.
``(B) Not less than 30 days before the hearing, the Attorney
General shall deliver to the licensee a copy of each document which
will be introduced as evidence at the hearing, and copies of all
documents on which the determination is based.
``(C) Within 90 days after the hearing, the administrative law
judge shall issue a written decision setting forth findings of fact and
conclusions of law, and a decision as to whether to affirm, modify, or
reverse the determination.
``(D) On request of the licensee, the Attorney General shall stay
the effective date of any penalty, suspension, or revocation until
there has been a final, nonreviewable judgment with respect to the
determination involved.
``(E) The action of an administrative law judge under this
subsection shall be considered final agency action for all purposes,
and may be reviewed only as provided in subsection (f).
``(4) This subsection shall not be interpreted to affect the
authority of the Attorney General under section 922(t)(5).
``(f)(1) Within 60 days after a party receives a notice issued
under subsection (d)(3) of a decision to deny a license, or a notice
issued under subsection (e)(3)(C) of a determination to impose a civil
money penalty or to suspend or revoke a license, the party may file a
petition with the United States district court for the district in
which the party resides or has a principal place of business for a de
novo review of the decision or determination.
``(2) In a proceeding conducted under this paragraph, the court
shall, on application of a party, consider any evidence submitted by
the parties to the proceeding whether or not the evidence was
considered at the hearing held under subsection (d)(3) or (e)(3).
``(3) If the court decides that the decision or determination was
not authorized, the court shall order the Attorney General to take such
action as may be necessary to comply with the judgment of the court.
``(4) If criminal proceedings are instituted against a licensee
alleging any violation of this chapter or of a regulation prescribed
under this chapter, and the licensee is acquitted of the charges, or
the proceedings are terminated, other than upon motion of the
Government before trial on the charges, the Attorney General shall be
absolutely barred from denying a license under this chapter, suspending
or revoking a license granted under this chapter, or imposing a civil
money penalty under subsection (e), if the action would be based in
whole or in part on the facts which form the basis of the criminal
charges.
``(5) The Attorney General may not institute a proceeding to
suspend or revoke a license granted under this chapter, or to impose a
civil money penalty under subsection (e), more than 1 year after the
filing of the indictment or information.''.
(b) Conforming Amendment.--Section 923(d) of such title is amended
by adding at the end the following:
``(3) If the Attorney General denies an application for a license,
an administrative law judge of the Department of Justice shall, on
request by the aggrieved party, promptly hold a hearing to review the
denial, at a location convenient to the aggrieved party. If, after the
hearing, the administrative law judge decides not to reverse the
denial, the administrative law judge shall give notice of the final
denial decision to the aggrieved party.''.
SEC. 3. CONSIDERATION OF FEDERAL FIREARMS LICENSE APPLICATIONS.
(a) In General.--Section 923(d) of title 18, United States Code, as
amended by section 2(b) of this Act, is amended by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4) and inserting after
paragraph (1) the following:
``(2) The Attorney General shall make a preliminary determination
as to whether to approve or deny an application submitted under
subsection (a) or (b). If the preliminary determination is to deny the
application, the Attorney General shall notify the applicant in writing
of the preliminary determination and the reasons for the preliminary
determination, and shall afford the applicant an opportunity to
supplement the application with additional information and to request a
hearing on the application. If the applicant, in a timely manner,
requests such a hearing, the Attorney General shall hold the hearing at
a location convenient to the applicant, and shall notify the applicant
in writing of the time and place of the hearing.''.
(b) Conforming Amendment.--Section 923(f)(1) of such title, as
amended by section 2(a) of this Act, is amended by striking ``(d)(3)''
each place it appears and inserting ``(d)(4)''.
SEC. 4. DEFINITION OF WILLFULLY.
Section 921(a) of title 18, United States Code, is amended by
adding at the end the following:
``(36) The term `willfully' means intentionally, purposely, and
with the intent to act in violation of a known legal duty.''.
SEC. 5. ESTABLISHMENT OF FORMAL INVESTIGATIVE GUIDELINES.
The Attorney General shall establish guidelines for how the Bureau
of Alcohol, Tobacco, Firearms, and Explosives is to conduct
investigations of possible violations of chapter 44 of title 18, United
States Code.
SEC. 6. REVIEW BY THE INSPECTOR GENERAL OF THE DEPARTMENT OF JUSTICE OF
THE GUN SHOW ENFORCEMENT PROGRAM; REPORT.
(a) Review.--The Inspector General of the Department of Justice
shall conduct a review of the operations of the Bureau of Alcohol,
Tobacco, Firearms, and Explosives, for the purpose of assessing the
manner in which the Bureau conducts the gun show enforcement program
and blanket residency checks of prospective and actual firearms
purchasers.
(b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Inspector General of the Department of Justice shall
submit to the Committee on the Judiciary of the House of
Representatives and the Committee on the Judiciary of the Senate a
written report that contains the findings of the review required by
subsection (a), and includes such recommendations as may be
appropriate.
SEC. 7. LIMITATIONS ON USE OF FIREARMS PURCHASER INFORMATION.
Section 923(g)(1)(D) of title 18, United States Code, is amended in
the last sentence by inserting ``, except that information about the
conduct of a named individual with respect to a firearm or ammunition
may not be so made available or so provided unless the agency involved
has certified that the agency will not disclose the information to any
entity other than a court, Federal, State, or local law enforcement
agency, or prosecutor'' before the period.
SEC. 8. CLARIFICATION OF RESPONSIBILITIES.
Section 1111(b) of the Homeland Security Act of 2002 (6 U.S.C.
531(b)) is amended--
(1) by adding ``and'' at the end of paragraph (1);
(2) by striking ``; and'' at the end of paragraph (2) and
inserting a period; and
(3) by striking paragraph (3).
SEC. 9. LIQUIDATION OF INVENTORY IN FEDERAL FIREARMS LICENSE
EXPIRATION, SURRENDER, OR REVOCATION CASES.
Section 923 of title 18, United States Code, is amended by adding
at the end the following:
``(m) A person whose license issued under this chapter is expired,
surrendered, or revoked shall be afforded 60 days from the effective
date of the expiration, surrender, or revocation to liquidate the
firearms inventory of the person, which time may be extended upon a
showing of reasonable cause.''.
SEC. 10. OPPORTUNITY TO CURE VIOLATIONS AFTER ACQUISITION OF FIREARMS
BUSINESS.
Section 923 of title 18, United States Code, is further amended by
adding at the end the following:
``(n) If the Attorney General is made aware that a person licensed
under this chapter has transferred to another person an entire firearms
business subject to license under this chapter and, before the
transfer, the transferor was found to be operating the business in
violation of this chapter, the Attorney General--
``(1) shall notify the transferee of the violation by the
transferor;
``(2) shall not presume that the transferee is committing
the violation; and
``(3) if the Attorney General finds that the transferee is
committing the violation--
``(A) shall notify the transferee of the violation;
``(B) shall afford the transferee a reasonable
amount of time after receipt of the notice to cure the
violation; and
``(C) shall not impose a sanction on the transferee
with respect to the violation, unless the transferee
has not cured the violation with the reasonable amount
of time referred to in subparagraph (B).''.
SEC. 11. STANDARDS FOR CRIMINAL VIOLATIONS OF RECORDKEEPING
REQUIREMENTS.
Section 922(m) of title 18, United States Code, is amended--
(1) by striking ``any false entry'' and inserting ``a
materially false entry'';
(2) by striking ``appropriate entry'' and inserting ``a
materially significant entry''; and
(3) by striking ``properly maintain'' and inserting
``retain custody of''.
SEC. 12. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect at
the end of the 180-day period that begins with the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee by Voice Vote .
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Judiciary. H. Rept. 109-672.
Reported (Amended) by the Committee on Judiciary. H. Rept. 109-672.
Placed on the Union Calendar, Calendar No. 401.
Mr. Sensenbrenner moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H6953-6961, H6993)
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DEBATE - The House proceeded with forty minutes of debate on H.R. 5092.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Considered as unfinished business. (consideration: CR H7369-7370)
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 277 - 131 (Roll no. 476).(text: CR 9/25/2006 H6953-6954)
Roll Call #476 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 277 - 131 (Roll no. 476). (text: CR 9/25/2006 H6953-6954)
Roll Call #476 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate.