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 obstructedabona 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.
END
