[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2618 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 2618
To modernize the business of selling firearms.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2025
Ms. Kelly of Illinois (for herself, Mr. Amo, Ms. Ansari, Mr.
Auchincloss, Ms. Barragan, Mrs. Beatty, Mr. Bell, Ms. Bonamici, Mr.
Boyle of Pennsylvania, Ms. Brownley, Mr. Carter of Louisiana, Mr.
Casten, Mrs. Cherfilus-McCormick, Ms. Clarke of New York, Mr. Cleaver,
Mr. Connolly, Mr. Costa, Ms. Crockett, Mr. Davis of Illinois, Ms.
DeGette, Mrs. Dingell, Mr. Frost, Ms. Garcia of Texas, Mr. Goldman of
New York, Mr. Johnson of Georgia, Mr. Kennedy of New York, Mr. Khanna,
Mr. Krishnamoorthi, Mr. Lynch, Ms. McBride, Ms. McCollum, Mr. McGarvey,
Mrs. McIver, Mr. Moulton, Mr. Mrvan, Mr. Mullin, Mr. Neguse, Ms.
Norton, Mr. Peters, Mr. Quigley, Mrs. Ramirez, Ms. Scanlon, Ms.
Schakowsky, Mr. Schneider, Ms. Stansbury, Mr. Subramanyam, Mr.
Thanedar, Ms. Titus, Ms. Tokuda, Mr. Torres of New York, Ms. Lee of
Pennsylvania, Ms. Johnson of Texas, Mr. Evans of Pennsylvania, Mr.
David Scott of Georgia, Ms. Ocasio-Cortez, Ms. Tlaib, Ms. Dean of
Pennsylvania, Mr. Magaziner, Mr. Morelle, and Mr. Panetta) introduced
the following 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal Firearm
Licensee Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Repeal of temporary Brady provision.
Sec. 5. Physical security of licensee premises.
Sec. 6. Business inventory firearms.
Sec. 7. Electronic records.
Sec. 8. Notification of default transfers.
Sec. 9. Multiple firearm sales records and reports.
Sec. 10. Safety devices and warnings to purchasers.
Sec. 11. Inspections.
Sec. 12. Authority with regard to license issuance and renewal.
Sec. 13. Increased licensing fees.
Sec. 14. Elimination of obligatory stay of effective date of license
revocation.
Sec. 15. Elimination of relief for dealers indicted for a crime
punishable by imprisonment for a term
exceeding one year.
Sec. 16. Elimination of relief while Federal disability relief
application pending.
Sec. 17. Presumption of knowledge of State law in sale of long guns to
residents of another State.
Sec. 18. Increased penalties for knowing transfer of firearm without
conducting a background check.
Sec. 19. Unlawful acts upon incurring Federal disability or notice of
license suspension, revocation, or denied
renewal.
Sec. 20. Regulation of facilitators of firearm transfers.
Sec. 21. Dealer and employee background checks.
Sec. 22. Liability standards.
Sec. 23. Civil enforcement.
Sec. 24. Removal of bar on civil proceedings if criminal proceedings
terminated.
Sec. 25. Repeal of certain limitations.
Sec. 26. Authority to hire additional industry operation investigators
for Bureau of Alcohol, Tobacco, Firearms,
and Explosives.
Sec. 27. Report on implementation of this Act.
Sec. 28. Annual licensed dealer inspections report and analysis.
Sec. 29. Deadline for issuance of final regulations.
SEC. 2. FINDINGS.
Congress finds the following:
(1) A growing body of evidence demonstrates that firearm
dealers' sales practices affect the probability of firearms
getting to criminals and that policies designed to hold firearm
sellers accountable can curtail the diversion of firearms to
criminals.
(2) Federal laws governing firearm dealers--
(A) have not been updated in more than 30 years;
(B) contain safeguards that protect dealers who
engage in illegal practices from adverse enforcement
action;
(C) frustrate law enforcement efforts to curb
firearm trafficking and violence; and
(D) are, thus, inadequate to meet the realities of
the 21st century.
(3)(A) The Tiahrt Amendments, for one--
(i) severely limit the authority of the Bureau of
Alcohol, Tobacco, Firearms, and Explosives (commonly
known as the ``ATF'') to disclose crime firearm trace
data to the public;
(ii) prevent--
(I) the collection of valuable information;
and
(II) the establishment of effective
policies to prevent illegal firearms from being
used in crimes; and
(iii) impede enforcement of the firearm laws by--
(I) requiring most background check records
to be destroyed within 24 hours; and
(II) barring the Government from requiring
owners of firearm shops to conduct annual
inventory audits.
(B) Repealing the Tiahrt Amendments would support law
enforcement efforts and give the public vital information
needed to craft the most effective policies against illegal
firearms.
(4) Additionally, Federal law imposes no requirements that
firearm dealers physically secure their highly valuable and
lethal inventory. The number of firearm thefts from licensed
firearm dealers has increased more than the number from any
other source. Between 2013 and 2017, the number of firearms
stolen in firearm-dealer burglaries more than doubled and the
number of firearms stolen in firearm-dealer robberies tripled.
SEC. 3. DEFINITIONS.
Section 921(a) of title 18, United States Code, is amended by
adding at the end the following:
``(38) The term `facilitator' means any person engaged in the
business of hosting a commercial marketplace in which offers for
firearm sales, purchases, or other transfers are allowed to be made,
except that such a person shall not be considered to be a facilitator
with respect to any transaction that is made through the use of a
website or mobile application owned or operated by the person if--
``(A) the transaction violates the terms of service of the
website or mobile application; and
``(B) the person has made a good faith effort to enforce
the terms of service by, at a minimum, auditing firearms
transactions on a quarterly basis to ensure compliance with
this chapter.
``(39) The term `occasional' means, with respect to transactions,
fewer than 5 transactions in a 12-month period.
``(40) The term `personal collection' includes any firearm obtained
only for the personal use of an individual and not for the purpose of
selling or trading, except that a firearm obtained through inheritance
shall not be considered part of a personal collection until the firearm
has been possessed for 1 year.
``(41) The term `business inventory firearm' means, with respect to
a person, a firearm required by law to be recorded in the acquisition
and disposition logs of any firearms business of the person.
``(42)(A) The term `frame' means the part of a handgun, or a
variant thereof, that provides housing or a structure for the primary
energized component designed to hold back the hammer, striker, bolt, or
similar component prior to initiation of the firing sequence (such as a
sear or the equivalent), even if pins or other attachments are required
to connect such component to the housing or structure.
``(B) The term `receiver' means the part of a rifle, shotgun, or
projectile weapon other than a handgun, or a variant thereof, that
provides housing or a structure for the primary component designed to
block or seal the breech prior to initiation of the firing sequence
(such as a bolt, breechblock, or the equivalent), even if pins or other
attachments are required to connect such component to the housing or
structure.
``(C) For purposes of this paragraph, the term `variant' means a
weapon utilizing a similar frame or receiver design irrespective of new
or different model designations or configurations, characteristics,
features, components, accessories, or attachments. For example, an AK-
type firearm with a short stock and a pistol grip is a pistol variant
of an AK-type rifle, an AR-type firearm with a short stock and a pistol
grip is a pistol variant of an AR-type rifle, and a revolving cylinder
shotgun is a shotgun variant of a revolver.
``(43) The term `semiautomatic shotgun' means any repeating shotgun
that--
``(A) utilizes a portion of the energy of a firing shell to
extract the fired shell casing and chamber the next round; and
``(B) requires a separate pull of the trigger to fire each
shell.''.
SEC. 4. REPEAL OF TEMPORARY BRADY PROVISION.
(a) In General.--Section 922 of title 18, United States Code, is
amended by striking subsection (s).
(b) Conforming Amendments.--Chapter 44 of title 18, United States
Code, is amended--
(1) in section 922--
(A) in subsection (t)--
(i) in paragraph (3)(C)(ii), by striking
``(as defined in subsection (s)(8))''; and
(ii) by adding at the end the following:
``(8) For purposes of this subsection, the term `chief law
enforcement officer' means the chief of police, the sheriff, or an
equivalent officer or the designee of any such individual.''; and
(B) in subsection (y)(2), in the matter preceding
subparagraph (A), by striking ``, (g)(5)(B), and
(s)(3)(B)(v)(II)'' and inserting ``and (g)(5)(B)'';
(2) in section 924(a)(5), by striking ``subsection (s) or
(t) of section 922'' and inserting ``section 922(t)''; and
(3) in section 925A, in the matter preceding paragraph (1),
by striking ``subsection (s) or (t) of section 922'' and
inserting ``section 922(t)''.
SEC. 5. PHYSICAL SECURITY OF LICENSEE PREMISES.
(a) Security Plan Submission Requirement.--
(1) In general.--Section 923(d)(1)(G) of title 18, United
States Code, is amended--
(A) by striking ``, the applicant'' and inserting
the following: ``--
``(i) the applicant'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(ii) the applicant--
``(I) submits with the application a
security plan that describes how the applicant
will secure, in accordance with the regulations
issued under section 926(d), the premises from
which the applicant will conduct business under
the license (including in the event of a
natural disaster or other emergency); and
``(II) certifies that, if issued such a
license, the applicant will comply with the
plan described in subclause (I).''.
(2) Written approval required before license renewal.--
Section 923(d)(1) of title 18, United States Code, is amended--
(A) in subparagraph (F), by striking ``and'' at the
end;
(B) in subparagraph (G), as amended by paragraph
(1), by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(H) in the case of an application to renew a license to
deal in firearms--
``(i) the license is not suspended;
``(ii) no license issued to the applicant under
this chapter has been revoked; and
``(iii) the Attorney General has inspected the
premises and provided written approval of the security
plan submitted by the applicant under subparagraph
(G)(ii)(I).''.
(3) Applicability to existing dealers whose license will
expire .--
(A) In general.--If, not later than 1 year after
the date on which regulations are prescribed under
section 926(d) of title 18, United States Code (as
added by subsection (c) of this section), a person
described in subparagraph (B) of this paragraph submits
to the Attorney General a security plan described in
clause (ii)(I) of section 923(d)(1)(G) of that title
(as added by paragraph (1) of this subsection), the
security plan shall be considered to have been
submitted in accordance with such section 923(d)(1)(G).
(B) Person described.--A person described in this
subparagraph is a person--
(i) who, on the date of enactment of this
Act, is a licensed dealer (as defined in
section 921(a)(11) of title 18, United States
Code); and
(ii) whose license to deal in firearms
issued under chapter 44 of title 18, United
States Code, will expire on or after the date
that is 1 year after the date on which
regulations are prescribed under section 926(d)
of that title (as added by subsection (c) of
this section).
(b) Annual Compliance Certification Requirement.--
(1) In general.--Section 923 of title 18, United States
Code, is amended by adding at the end the following:
``(m) Annual Certification.--
``(1) In general.--Each licensed manufacturer, licensed
importer, and licensed dealer shall--
``(A) annually certify to the Attorney General that
each premises from which the licensee conducts business
subject to license under this chapter is in compliance
with the regulations prescribed under section 926(d);
and
``(B) in the case of a licensed dealer, include
with the certification under subparagraph (A)--
``(i) the results of a reconciliation of
the resale firearms then in the business
inventory of the licensee against the resale
firearms in the business inventory of the
licensee at the time of the most recent prior
certification (if any) under this paragraph;
and
``(ii) all dispositions and acquisitions of
resale firearms in the year covered by the
certification, identifying and reporting any
missing firearm.
``(2) Civil penalty.--The Attorney General shall impose a
civil penalty of not more than $5,000 on, and may suspend the
license issued under this section to, a licensee who fails to
comply with paragraph (1).''.
(2) Applicability.--In the case of a person who, on the
date of enactment of this Act, is a licensee referred to in
section 923(m) of title 18, United States Code (as added by
paragraph (1)), such section 923(m) shall apply to the person
on and after the date that is 1 year after the date on which
regulations are prescribed under subsection (d) of section 926
of that title (as added by subsection (c)(1)).
(c) Regulations.--
(1) In general.--Section 926 of title 18, United States
Code, is amended by adding at the end the following:
``(d) Securing Premises From Theft.--The Attorney General shall
prescribe such regulations as are necessary to ensure that any premises
at which a licensee referred to in section 923(m) conducts business is
secure from theft, which shall include requiring--
``(1) compliance with the security plan submitted by the
licensee pursuant to section 923(d)(1)(G)(ii)(I), if
applicable;
``(2) the use of locked metal cabinets and fireproof safes;
``(3) security systems, video monitoring, and anti-theft
alarms;
``(4) security gates, strong locks, and site hardening;
``(5) concrete bollards and other access controls, if
necessary; and
``(6) the use of any other security-enhancing features
appropriate for the specific circumstances of the licensee.''.
(2) Applicability.--The regulations prescribed under
section 926(d) of title 18, United States Code, as added by
paragraph (1), shall not apply to a person who, on the date of
the enactment of this Act, is a licensee referred to in section
923(m) of that title, until the date that is 1 year after the
date on which the regulations are prescribed.
SEC. 6. BUSINESS INVENTORY FIREARMS.
(a) Requirement To Transfer Firearm in Personal Collection to
Business Inventory Before Disposition.--Section 923(c) of title 18,
United States Code, is amended--
(1) by striking the second sentence and inserting the
following: ``Nothing in this chapter shall be construed to
prohibit a licensed manufacturer, licensed importer, or
licensed dealer from maintaining a personal collection of
firearms.'';
(2) by striking the third sentence; and
(3) by adding at the end the following: ``Any firearm
disposed of by a licensee shall be from the business inventory
of the licensee.''
(b) Licensee Firearms Inventory.--Section 923(g) of title 18,
United States Code, is amended by adding at the end the following:
``(8)(A) Each quarter, a licensee shall conduct a physical check of
the firearms inventory of the business of the licensee licensed under
this chapter and report to the Attorney General and appropriate local
authorities any firearm that is lost, stolen, or unaccounted for.
``(B) The Attorney General shall prescribe regulations to implement
the requirements under subparagraph (A), which shall require, at a
minimum, that a licensee record, for each firearm in the inventory of
the licensee--
``(i)