Keeping Gun Dealers Honest Act of 2021
This bill modifies the requirements and penalties applicable to an individual who engages in the business of dealing, importing, or manufacturing firearms (i.e., a federal firearms licensee, or FFL).
Among other things, the bill does the following:
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4271 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4271
To ensure greater accountability by licensed firearms dealers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 30, 2021
Mr. Langevin (for himself, Mr. Deutch, Ms. Norton, Mr. Case, Mr.
Raskin, and Ms. Kelly of Illinois) introduced the following bill; which
was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To ensure greater accountability by licensed firearms dealers.
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 ``Keeping Gun Dealers Honest Act of
2021''.
SEC. 2. INCREASING THE NUMBER OF ALLOWED COMPLIANCE INSPECTIONS OF
FIREARMS DEALERS.
Section 923(g)(1)(B)(ii)(I) of title 18, United States Code, is
amended by striking ``once'' and inserting ``3 times''.
SEC. 3. INCREASING PENALTIES ON FIREARMS LICENSEES.
Section 924(a)(3) of title 18, United States Code, is amended in
the matter following subparagraph (B) by striking ``one year'' and
inserting ``5 years''.
SEC. 4. SERIOUS RECORDKEEPING OFFENSES THAT AID GUN TRAFFICKING.
Section 924(a)(3) of title 18, United States Code, is amended by
striking the period at the end and inserting ``. If the conduct
described in subparagraph (A) or (B) is in relation to an offense under
subsection (a)(6) or (d) of section 922, the licensed dealer, licensed
importer, licensed manufacturer, or licensed collector shall be fined
under this title, imprisoned for not more than 10 years, or both.''.
SEC. 5. SUSPENSION OF FIREARMS DEALER'S LICENSE AND CIVIL PENALTIES FOR
VIOLATIONS OF THE GUN CONTROL ACT.
Section 923 of title 18, United States Code, is amended by striking
subsections (e) and (f) and inserting the following:
``(e)(1)(A) The Attorney General may, after notice and opportunity
for hearing, suspend or revoke any license issued under this section,
or may subject the licensee to a civil penalty of not more than $10,000
per violation, if the holder of the license--
``(i) has violated any provision of this chapter or any
rule or regulation prescribed by the Attorney General under
this chapter; or
``(ii) except as provided in subparagraph (B), fails to
have secure gun storage or safety devices available at any
place in which firearms are sold under the license to persons
who are not licensees.
``(B) Subparagraph (A)(ii) shall not apply in any case in which a
secure gun storage or safety device is temporarily unavailable because
of theft, casualty loss, consumer sales, backorders from a
manufacturer, or any other similar reason beyond the control of the
licensee.
``(2) The Attorney General may, after notice and opportunity for
hearing, suspend or revoke the license of, or assess a civil penalty of
not more than $10,000 on, a dealer who transfers armor piercing
ammunition.
``(3) The Attorney General may at any time compromise, mitigate, or
remit the liability with respect to any violation of this chapter or
any rule or regulation prescribed by the Attorney General under this
chapter.
``(4) The Attorney General's actions under this subsection may be
reviewed only as provided in subsection (f).
``(f)(1) Any person whose application for a license is denied and
any holder of a license which is suspended or revoked or who is
assessed a civil penalty shall receive a written notice from the
Attorney General stating specifically the grounds upon which the
application was denied or upon which the license was suspended or
revoked or the civil penalty assessed. Any notice of a suspension or
revocation of a license shall be given to the holder of the license
before the effective date of the suspension or revocation.
``(2) If the Attorney General denies an application for a license,
or suspends or revokes a license, or assesses a civil penalty, the
Attorney General shall, upon request by the aggrieved party, promptly
hold a hearing to review the denial, suspension, revocation, or
assessment. In the case of a suspension or revocation of a license, the
Attorney General shall, on the request of the holder of the license,
stay the effective date of the suspension or revocation. A hearing
under this paragraph shall be held at a location convenient to the
aggrieved party.
``(3)(A) If after a hearing held under paragraph (2) the Attorney
General decides not to reverse the decision to deny an application or
suspend or revoke a license or assess a civil penalty, the Attorney
General shall give notice of the decision to the aggrieved party.
``(B) The aggrieved party may at any time within 60 days after the
date notice is given under subparagraph (A) file a petition with the
United States district court for the district in which the party
resides or in which the party's principal place of business is located
for a de novo judicial review of the denial, suspension, revocation, or
assessment.
``(C) In a proceeding conducted under this paragraph, the court may
consider any evidence submitted by the parties to the proceeding
without regard to whether such evidence was considered at the hearing
held under paragraph (2).
``(D) If the court decides that the Attorney General was not
authorized to deny the application or to suspend or revoke the license
or to assess the civil penalty, the court shall order the Attorney
General to take such action as may be necessary to comply with the
judgment of the court.''.
SEC. 6. TERMINATION OF FIREARMS DEALER'S LICENSE UPON FELONY
CONVICTION.
Section 925(b) of title 18, United States Code, is amended by
striking ``until any conviction pursuant to the indictment becomes
final'' and inserting ``until the date of any conviction pursuant to
the indictment''.
SEC. 7. AUTHORITY TO HIRE ADDITIONAL PERSONNEL.
The Director of the Bureau of Alcohol, Tobacco, Firearms and
Explosives may hire at least 80 additional employees for the purpose of
carrying out additional inspections as provided for in the amendments
made by this Act.
SEC. 8. AUTHORITY TO REQUIRE LICENSED DEALER TO CONDUCT A PHYSICAL
INVENTORY AND PROVIDE INVENTORY RECORD IF DEALER HAS
UNLAWFULLY TRANSFERRED A FIREARM OR 10 OR MORE CRIME GUNS
ARE TRACED TO THE DEALER.
(a) In General.--Section 923(g)(1) of title 18, United States Code,
is amended by adding at the end the following:
``(E) The Attorney General may require a licensed importer,
licensed manufacturer, or licensed dealer to conduct a physical
inventory of the firearms in the business inventory of the licensee,
and provide the Attorney General with a detailed record of the physical
inventory if--
``(i) the licensee has been convicted of transferring a
firearm unlawfully; or
``(ii) the Attorney General finds that 10 or more firearms
used in a crime under Federal, State, or local law have been
traced back to the licensee.''.
(b) Conforming Amendments.--
(1) Section 923(j) of such title is amended in the 6th
sentence by inserting ``, except as required under subsection
(g)(1)(E)'' before the period.
(2) The matter under the heading ``salaries and expenses''
under the heading ``Bureau of Alcohol, Tobacco, Firearms and
Explosives'' under title II of division B of the Consolidated
and Further Continuing Appropriations Act, 2013 (Public Law
113-6; 127 Stat. 247) is amended in the 5th proviso by
inserting ``, except as required under subsection (g)(1)(E) of
such section 923'' before the colon.
SEC. 9. ISSUANCE OF LICENSES.
Section 923 of title 18, United States Code, is amended--
(1) in subsection (c)--
(A) by inserting ``(1)'' before ``Upon'';
(B) in the first sentence, by inserting ``, subject
to paragraph (2),'' after ``Attorney General shall'';
and
(C) by adding at the end the following:
``(2) The Attorney General may deny an application submitted under
subsection (a) or (b) if the Attorney General determines--
``(A) issuing the license would pose a danger to public
safety; or
``(B) that the applicant--
``(i) is not likely to comply with the law; or
``(ii) is otherwise not suitable to be issued a
license.''; and
(2) in subsection (d)(1), in the matter preceding
subparagraph (A), by inserting ``, subject to subsection
(c)(2),'' after ``shall''.
SEC. 10. LIABILITY STANDARDS.
Section 923 of title 18, United States Code, is amended--
(1) in subsection (c), in the third sentence, by striking
``willfully''; and
(2) in subsection (d), by striking ``willfully'' each place
it appears.
SEC. 11. REGULATORY FLEXIBILITY.
Section 926(a) of title 18, United States Code, is amended in the
matter preceding paragraph (1) by striking ``only''.
SEC. 12. REPORT TO THE CONGRESS.
The Director of the Bureau of Alcohol, Tobacco, Firearms and
Explosives shall submit biennial reports to Congress on the
implementation of this Act and the amendments made by this Act, which
shall include--
(1) a statement by the Director as to what additional
resources, if any, are necessary in order to implement this Act
and the amendments made by this Act; and
(2) any recommendations of the Director for how better to
ensure that--
(A) firearms dealers are complying with all laws
and regulations that apply with respect to dealing in
firearms; and
(B) noncompliant firearms dealers are subject to
appropriate action in a timely manner.
SEC. 13. SEVERABILITY.
If any provision of this Act or of an amendment made by this Act,
or the application of such a provision to any person or circumstance,
is held to be invalid, the remainder of this Act or of such an
amendment, or the application of this Act or of such an amendment to
other persons or circumstances, shall not be affected.
<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.
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