H.R. 4106 — Prevent Illegal Gun Sales Act

This section increases the maximum term of imprisonment for recordkeeping violations by federal firearms licensees (FFLs)—such as making false statements or failing to maintain required records—to not more than 10 years (from not more than 1 year) if the violation relates to straw purchases under 18 U.S.C. §922(a)(6) (i.e., false statements on ATF Form 4473) or sales to prohibited persons under 18 U.S.C. §922(d).

This section revises the grounds and procedures for the Attorney General to suspend or revoke federal firearms licenses (FFLs) issued under the Gun Control Act or impose civil penalties of not more than $10,000 per violation. Subsection (e) authorizes such actions, after notice and opportunity for hearing, if the licensee (1) violates any provision of the Gun Control Act (chapter 44 of title 18, U.S. Code) or related regulations promulgated by the Attorney General, or fails to have secure gun storage or safety devices available at any premises where firearms are sold to non-licensees (except if temporarily unavailable due to theft, casualty loss, consumer sales, backorders, or similar circumstances beyond the licensee's control); or (2) as a dealer, transfers armor piercing ammunition. It further authorizes the Attorney General to compromise, mitigate, or remit any such penalty, with review available only under subsection (f). Subsection (f) requires written notice specifying the grounds; provides for an administrative hearing upon request (with a stay of any suspension or revocation pending the hearing, at the licensee's request); and authorizes de novo judicial review in U.S. district court within 60 days after the final agency decision, with the court considering all submitted evidence regardless of prior administrative consideration.

This section revises the termination of a federal firearms license upon felony conviction of the licensee to occur on the date of conviction (from when the conviction becomes final).

This section authorizes the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives to hire at least 80 additional employees to conduct inspections required by the Act.

This section authorizes the Attorney General to require a licensed importer, licensed manufacturer, or licensed dealer to conduct a physical inventory of firearms in the licensee's business inventory and provide a detailed record if (1) the licensee has been convicted of unlawfully transferring a firearm or (2) 10 or more firearms used in a crime under federal, state, or local law have been traced to the licensee. (As background, federal firearms licensees maintain records of firearm acquisitions and dispositions but are generally prohibited from routine inventory requirements.) The section makes conforming amendments to except this authority from prior statutory and appropriations law limits on such inventories.

This section authorizes the Attorney General to deny applications for federal firearms licenses (FFLs) under 18 USC 923(a) (covering manufacturers, importers, and dealers) or 923(b) (covering collectors of curios and relics) if issuing the license would pose a danger to public safety or if the applicant is not likely to comply with the law or is otherwise unsuitable. (Previously, the Attorney General was required to issue licenses to qualified applicants; this authority also applies to license renewals.)

This section strikes "willfully" from (1) the penalty provision in subsection (c) for federal firearms licensees (FFLs) who fail to comply with recordkeeping requirements (thus subjecting licensees to fines up to $5,000 and/or imprisonment up to one year for any such violation rather than only willful violations) and (2) the license revocation provision in subsection (d) (thus authorizing the Attorney General to revoke an FFL for any violation of the Gun Control Act rather than only willful violations).

This section directs the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives to submit biennial reports to Congress on the implementation of this Act and its amendments. The reports must include (1) a statement on any additional resources needed for implementation and (2) recommendations to ensure firearms dealers comply with applicable laws and regulations and that noncompliant dealers receive timely appropriate action.

This section establishes a severability clause, under which the invalidation of any provision of the Act or its amendments—or its application to any person or circumstance—does not affect the remainder of the Act or amendments, or their application to other persons or circumstances.