[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 941 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 941
To reform the Bureau of Alcohol, Tobacco, Firearms, and Explosives,
modernize firearms laws and regulations, protect the community from
criminals, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 30, 2009
Mr. Crapo (for himself and Mr. Leahy) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To reform the Bureau of Alcohol, Tobacco, Firearms, and Explosives,
modernize firearms laws and regulations, protect the community from
criminals, and for other purposes.
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 Reform and Firearms Modernization Act of
2009''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES
MODERNIZATION AND REFORM
Sec. 101. Graduated penalties for civil violations by Federal firearms
licensees.
Sec. 102. Consideration of Federal firearms license applications.
Sec. 103. Definition of willfully.
Sec. 104. Establishment of formal inspection, examination, and
investigative guidelines.
Sec. 105. Liquidation of inventory in Federal firearms license
expiration, surrender, or revocation cases.
Sec. 106. Opportunity to cure violations after acquisition of firearms
business.
Sec. 107. Standards for criminal violations of recordkeeping
requirements.
Sec. 108. Effective date.
TITLE II--FIREARMS CORRECTIONS AND IMPROVEMENTS
Sec. 201. Correction of nonsubstantive error in age limit provision.
Sec. 202. Possession of machineguns for industry testing, training, and
film production.
Sec. 203. Elimination of obsolete language added by the Brady Handgun
Violence Prevention Act.
Sec. 204. Elimination of written permission requirement for supervised
handgun use.
Sec. 205. Modification of procedures for sharing of multiple handgun
sales reports.
Sec. 206. Ban on electronic retrieval of inactive licensee information.
Sec. 207. Barrel and receiver importation.
Sec. 208. Clarifications relating to manufacturing of firearms.
TITLE I--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES
MODERNIZATION AND REFORM
SEC. 101. 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, the Attorney General
may--
``(i) if the violation is of a minor nature--
``(I) for a first such violation, issue a written
warning to the licensee; and
``(II) for a second or subsequent such violation--
``(aa) impose on the licensee a civil money
penalty of not more than $500 for each such
violation, with no interest to accrue on the
amount of such a penalty, except that the total
amount of penalties imposed on a licensee under
this subclause--
``(AA) for violations arising from
a single inspection or examination
shall not exceed $2,500; and
``(BB) for a single calendar year
shall not exceed $5,000; or
``(bb) 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 $1,500 for each such violation, with
no interest to accrue on the amount of such a penalty,
except that the total amount of penalties imposed on a
licensee under this subclause--
``(aa) for a violation arising from a
single inspection or examination shall not
exceed $7,500; and
``(bb) for a single calendar year shall not
to 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)(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) On request of the licensee, the Attorney General may
consider the ability of the licensee to pay a civil money penalty, and
may allow the licensee to submit documents and information to establish
the ability of the licensee to pay. The Attorney General shall not make
part of any public record any document or information so submitted, and
shall return to the licensee any such document or information.
``(III) The total amount of penalties imposed on a licensee under
subparagraph (A) with respect to violations of a minor nature and of a
serious nature arising from a single inspection or examination shall
not exceed $7,500, and the total of all such penalties for a single
calendar year shall not exceed $15,000.
``(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.
``(iii) The Attorney General may defer, or suspend, in whole or in
part, the imposition of a civil money penalty on a licensee whose
license is suspended under this paragraph.
``(C) For purposes of subparagraph (A):
``(i) 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 or under State or local
law;
``(II) obstructs or could have obstructed a bona
fide criminal investigation or prosecution, or an
inspection or examination under this chapter; or
``(III) prevents or could have prevented a licensee
from complying with subsection (a)(7), (a)(8), (b)(1),
(b)(3), (b)(4), (j), (k), (o), or (p) of section 922,
subsection (g)(7) of this section, or subsection (b) or
(h) of section 924.
``(ii) A violation of this chapter shall be considered to
be of a minor nature if the violation is not of a serious
nature.
``(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 the violation occurred; or
``(ii) if the licensee intentionally obstructed discovery
of the violation, the date the violation is discovered.
``(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--
``(i) of the determination, and the grounds on which the
determination was made;
``(ii) of the nature of the penalty; and
``(iii) that the licensee may, within 30 days after receipt
of the notice, 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) of this paragraph.
``(C) On timely receipt from the licensee of a request for a review
described in subparagraph (B), the Attorney General shall stay the
imposition under paragraph (1) of any penalty involved, pending
resolution of the review, unless, in the case of a suspension or
revocation of a licensee, the Attorney General establishes, at a
hearing before an administrative law judge, by clear and convincing
evidence, that the continued operation by the licensee of the business
poses an immediate and grave threat to public safety.
``(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 a hearing described in
subparagraph (A), the Attorney General shall deliver to the licensee--
``(i) a document identifying each person whom the Attorney
General intends to call as a witness during the hearing;
``(ii) a copy of each document which will be introduced as
evidence at the hearing; and
``(iii) copies of all documents on which the determination
is based.
``(C) Within 90 days after a hearing described in subparagraph (A),
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, unless, in the case of a suspension or
revocation of a licensee, the Attorney General establishes, at a
hearing before an administrative law judge, by clear and convincing
evidence, that the continued operation by the licensee of the business
poses an immediate and grave threat to public safety.
``(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 subsection, 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 determines that the licensee did not willfully
violate 1 or more provisions of this chapter or 1 or more regulations
prescribed under this chapter, the court shall--
``(A) vacate the revocation, suspension, or fine, and
remand the matter to the Attorney General for further
consideration; and
``(B) award to the licensee a reasonable attorney's fee
with respect to any part of the decision or determination on
which the licensee prevails.
``(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. 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 to Procedure Applicable to Denial of
Application for License.--Section 923(d) of title 18, United States
Code, 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. 102. CONSIDERATION OF FEDERAL FIREARMS LICENSE APPLICATIONS.
(a) In General.--Section 923(d) of title 18, United States Code, as
amended by section 101(b) of this Act, is amended--
(1) by redesignating paragraphs (2) and (3) as paragraphs
(3) and (4), respectively; and
(2) by 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) of title 18, United
States Code, as amended by section 101(a) of this Act, is amended by
striking ``(d)(3)'' each place it appears and inserting ``(d)(4)''.
SEC. 103. DEFINITION OF WILLFULLY.
Section 923(e) of title 18, United States Code, as amended by
section 101(a) of this Act, is amended by adding at the end the
following:
``(5) For purposes of this subsection, the term `willfully' means,
with respect to conduct of a person, that the person knew of a legal
duty, and engaged in the conduct knowingly and in intentional disregard
of the duty.''.
SEC. 104. ESTABLISHMENT OF FORMAL INSPECTION, EXAMINATION, AND
INVESTIGATIVE GUIDELINES.
(a) In General.--The Attorney General shall establish guidelines
for how the Bureau of Alcohol, Tobacco, Firearms, and Explosives is to
conduct inspections, examinations, or investigations of possible
violations of chapters 40 and 44 of title 18, United States Code.
(b) Personnel Matters.--In no case shall the amount of fines
imposed on licensees under chapter 40 or 44 of title 18, United States
Code, or the number of warnings issued, or suspensions or revocations
of licenses under such chapters, be considered in the retention,
promotion, or transfer of any officer, agent, or employee of the Bureau
of Alcohol, Tobacco, Firearms, and Explosives.
SEC. 105. 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)(1) Except as provided in paragraph (2), 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.
During such 60-day period (including any extension of the period), the
license involved shall continue to be considered valid.
``(2) Paragraph (1) shall not apply with respect to a person if a
United States district court for the judicial district in which the
person resides or in which the principal place of business of the
person subject to the license is located finds, by clear and convincing
evidence, that the continued operation by the person of the business
poses an immediate and grave threat to public safety.''.
SEC. 106. OPPORTUNITY TO CURE VIOLATIONS AFTER ACQUISITION OF FIREARMS
BUSINESS.
Section 923 of title 18, United States Code, as amended by section
106 of this Act, is amended by adding at the end the following:
``(n) If the Attorney General is made aware that a business
licensed under this chapter has transferred to a surviving spouse or
child of the licensee, to an executor, administrator, or other legal
representative of a deceased licensee, or to a receiver or trustee in
bankruptcy, or an assignee for benefit of creditors, and, before the
transfer, or on the first inspection or examination by the Attorney
General of the records of the licensee after the transfer, the licensee
is 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; and
``(2) shall not presume that the transferee is committing
the violation.''.
SEC. 107. 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. 108. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect
180 days after the date of enactment of this Act.
TITLE II--FIREARMS CORRECTIONS AND IMPROVEMENTS
SEC. 201. CORRECTION OF NONSUBSTANTIVE ERROR IN AGE LIMIT PROVISION.
Section 922(b)(1) of title 18, United States Code, is amended to
read as follows:
``(1) any firearm or ammunition to any individual who the
licensee knows or has reasonable cause to believe has not
attained 18 years of age, and, if the firearm is other than a
shotgun or rifle, or the ammunition is for a firearm other than
a shotgun or rifle, to any individual who the licensee knows or
has reasonable cause to believe has not attained 21 years of
age;''.
SEC. 202. POSSESSION OF MACHINEGUNS FOR INDUSTRY TESTING, TRAINING, AND
FILM PRODUCTION.
(a) Post-1986 Machineguns for Testing, Research and Development.--
Section 922(o)(2) of title 18, United States Code, is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) by redesignating subparagraph (B) as subparagraph (E);
and
(3) by inserting after subparagraph (A) the following:
``(B) a transfer to, or possession by, a licensed
manufacturer or licensed importer solely for testing, research,
design, or development of ammunition or a firearm;
``(C) a possession by a licensed manufacturer or licensed
importer for the purposes of training persons to whom a
machinegun, manufactured or imported by the licensee, may be
transferred as described in subparagraph (A);
``(D) a transfer to or possession by a licensed
manufacturer, licensed importer, or licensed dealer for a
professional theatrical purpose if the licensee--
``(i) is registered under section 5802 of the
National Firearms Act;
``(ii) holds a valid permit or license under State
law to engage in business as a theatrical firearms
dealer or equivalent statutory designation;
``(iii) derives not less than 80 percent of income
from the firearms business from the use of firearms by
professional motion picture or television productions
that are distributed to or produced for a national or
international audience;
``(iv) before possessing a machinegun under this
subparagraph, provides the Attorney General with
documentation that--
``(I) the licensee meets the requirements
of clauses (i) through (iii); and
``(II) the transfer or possession, as the
case may be, is for such purpose; and
``(v) establishes that the number of machineguns
sought by the licensee is reasonable for the film,
production, or performance for which the machineguns
are requested; or''.
(b) Importation of Machineguns.--Section 925(d) of title 18, United
States Code, is amended--
(1) in paragraph (3), by striking ``or'' at the end;
(2) in paragraph (4), by striking the period and inserting
a semicolon; and
(3) by inserting after paragraph (4) the following:
``(5) is imported or brought in for a purpose described in
section 922(o)(2); or
``(6) is a machinegun being imported or brought in for a
purpose described in section 922(o)(2)(D).''.
(c) Importation Under the National Firearms Act.--Section 5844 of
the National Firearms Act (26 U.S.C. 5844) is amended--
(1) in paragraph (2), by striking ``or'' at the end; and
(2) by inserting after paragraph (3) the following:
``(4) a machinegun being imported or brought in by a
registered importer or registered manufacturer for the purpose
of training persons who acquire machineguns pursuant to
paragraph (1) that were manufactured or imported by the
registrant; or
``(5) a machinegun being imported or brought in for a
purpose described in section 922(o)(2)(D) of title 18, United
States Code;''.
(d) Professional Theatrical Purpose Defined.--Section 921(a) of
title 18, United States Code, is amended by adding at the end the
following:
``(36) The term `professional theatrical purpose' means the use of
firearms in a motion picture or television production which is expected
to be produced, distributed, marketed, or shown by a member of a
nationally recognized professional trade association related primarily
to motion picture and television production, as determined by the
Attorney General.''.
(e) Effective Date.--The amendments made by this section shall take
effect 180 days after the date of enactment of this Act.
SEC. 203. ELIMINATION OF OBSOLETE LANGUAGE ADDED BY THE BRADY HANDGUN
VIOLENCE PREVENTION ACT.
Section 922 of title 18, United States Code, is amended--
(1) by striking subsection (s); and
(2) in subsection (t)(1), by striking ``Beginning'' and all
that follows through ``a licensed'' and inserting ``A
licensed''.
SEC. 204. ELIMINATION OF WRITTEN PERMISSION REQUIREMENT FOR SUPERVISED
HANDGUN USE.
Section 922(x)(3)(A) of title 18, United States Code, is amended--
(1) in clause (ii), by striking subclause (II) and
inserting the following:
``(II) with respect to ranching or farming
activities, target practice, hunting, or a
course of instruction in the safe and lawful
use of a handgun, as described in clause (i), a
juvenile may possess and use a handgun or
ammunition without the prior written consent,
if the parent or legal guardian is present at
all times and the juvenile acts at the
direction of a parent, legal guardian, or other
adult who is not prohibited by Federal, State,
or local law from possessing a firearm;''; and
(2) in clause (iii), by inserting ``except as provided in
clause (ii)(II),'' after ``(iii)''.
SEC. 205. MODIFICATION OF PROCEDURES FOR SHARING OF MULTIPLE HANDGUN
SALES REPORTS.
Section 923(g)(3)(A) of title 18, United States Code, is amended--
(1) by striking ``and to the department of State police''
and all that follows through ``took place''; and
(2) by adding at the end the following: ``On request by a
State or local law enforcement agency of the jurisdiction in
which the sale or other disposition took place, the Attorney
General may provide the report to the agency, unless the agency
failed to make the certification required by subparagraph (B)
for the most recent 6-month period for which the certification
is so required.''.
SEC. 206. BAN ON ELECTRONIC RETRIEVAL OF INACTIVE LICENSEE INFORMATION.
Subsection 923(g)(4) of title 18, United States Code, is amended by
adding at the end the following: ``The Attorney General shall not
electronically retrieve information gathered pursuant to this paragraph
by name or by any personal identification code.''.
SEC. 207. BARREL AND RECEIVER IMPORTATION.
(a) In General.--Section 925(e) of title 18, United States Code, is
amended--
(1) in paragraph (1), by striking ``, and'' and inserting a
period;
(2) by adding at the end the following:
``(3) All frames or receivers of rifles, or barrels for
firearms other than handguns, if the importation is for repair
or replacement purposes.''.
(b) Governmental Imports.--Section 925(a)(1) of title 18, United
States Code, is amended by inserting ``, barrel,'' after ``or
importation of any firearm''.
SEC. 208. CLARIFICATIONS RELATING TO MANUFACTURING OF FIREARMS.
(a) Clarification of Definition of Manufacturing.--Section
921(a)(10) of title 18, United States Code, is amended by adding at the
end the following: ``The term `manufacturing' shall not include
repairing firearms, making or fitting special barrels, stocks, trigger
mechanisms, or other parts to firearms, or engraving or otherwise
altering the appearance of firearms.''.
(b) Clarification of Definition of Dealer.--Section 921(a)(11)(B)
of title 18, United States Code, is amended by striking ``or trigger
mechanisms to firearms'' and inserting ``trigger mechanisms, or other
parts to firearms, or engraving or otherwise altering the appearance of
firearms''.
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