Graduated penalties for civil violations by Federal firearms licensees

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 violated this chapter— (i) in the case of a violation that is not willful, the Attorney General shall notify the licensee of the violation and work with the licensee to rectify the violation within a commercially reasonable time frame; or (ii) in the case of a willful violation, if the Attorney General, after working with the licensee to rectify the violation within a commercially reasonable time frame, finds that a lesser action (such as a warning, warning letter, or warning conference) is not likely to lead to future compliance, and the Attorney General seeks revocation of the license in an administrative action, the Attorney General may— (I) if the licensee has no history of noncompliance with this chapter, suspend the license for not more than 30 days or such lesser period as would apply on compliance with such conditions as are specified by the Attorney General; or (II) in any other case, revoke the license. (B) In applying subparagraph (A), the Attorney General shall presume that the violation is not willful, absent clear and convincing evidence to the contrary. (C) For purposes of subparagraph (A): (i) A violation of this chapter with respect to 2 or more firearms during a single transaction shall be considered a single violation. (ii) A violation of this chapter with respect to any category of record keeping requirements, even if involving multiple instances, shall be considered a single violation. (D) The Attorney General may not commence an enforcement action under subparagraph (A) with respect to a violation, after the 3-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. (E) The Attorney General may not commence an enforcement action under subparagraph (A) with respect to a violation without first notifying the licensee of the reasons for the contemplated action and affording the licensee an opportunity to demonstrate or achieve compliance with this chapter and to submit facts, arguments, or proposals of adjustment. (2) (A) (i) Not less than 60 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 by certified return receipt mail— (I) of the determination, and the grounds on which the determination was made; (II) that sets forth the facts on which the Attorney General relied as a basis for the determination, including the facts pertaining to any determination of willfulness; (III) of the nature of the penalty; and (IV) that the licensee may, within 60 days after receipt of the notice, request in writing a hearing to review the determination. (ii) Within 5 calendar days after serving the written notice on the licensee, the Attorney General, shall give written notice to the licensee of the date the written notice was so served and provide the licensee with proof of the service. (B) A hearing to review a determination made under paragraph (1) with respect to a licensee shall not be held unless the licensee or an agent of the licensee requests such a hearing within 60 days after receiving the written notice required by subparagraph (A), and if held, shall be open to the public (C) On timely receipt from the licensee of a request for such a review, the Attorney General shall stay the imposition of any penalty under paragraph (1), pending resolution of the hearing, unless, in the case of a license revocation, the Attorney General establishes, at a hearing before an administrative law judge, by clear and convincing evidence, that the licensee committed the violation willfully and that the continued operation by the licensee of the business involved poses an immediate and grave threat to public safety. (3) (A) Within not fewer than 60 days after timely receipt from a licensee or an agent of the licensee of a written request for a hearing 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 an evidentiary hearing, at a location convenient to the licensee, to review the determination, except that, if the licensee moves for leave to take the deposition of any witness identified by the Attorney General or any officer or employee of the Department of Justice who was involved in the inspection or examination, or any prior inspection or examination on which the Attorney General relies, the administrative law judge shall grant the motion and adjust the hearing date accordingly. (B) Not less than 30 days before the hearing, 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 and a summary of the proposed sworn testimony of the witness; (ii) a copy of each document, in unredacted form, that will be introduced by the Attorney General as evidence at the hearing; (iii) copies of all documents on which the determination is based; (iv) a complete copy of the file of the licensee maintained by the Attorney General; and (v) a sworn statement from the Attorney General as to whether or not there is a pending criminal investigation by the Attorney General of the licensee, which statement shall be supplemented or amended by the Attorney General if a criminal investigation is initiated before the conclusion of the hearing. (C) (i) Within 120 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. (ii) The findings of fact and conclusions of law and decision of the administrative law judge shall be— (I) de novo and not predicated on a presumption that the determination of the Attorney General was correct; and (II) based on a clear and convincing standard of proof, which shall be borne by the Attorney General. (iii) The administrative law judge shall not make a determination to revoke a license unless the administrative law judge finds, by clear and convincing evidence, that— (I) the Attorney General notified the licensee in writing of all reasons for the contemplated action of the Attorney General; (II) the Attorney General afforded the licensee a commercially reasonable opportunity to demonstrate or achieve compliance with this chapter; and (III) the licensee has not complied, and is unlikely to be able to achieve compliance, with this chapter. (iv) The Attorney General shall provide to the licensee a complete copy of the hearing transcript, including exhibits, within 60 days after the date of the hearing. (D) On request of the licensee, the Attorney General shall stay the effective date of any penalty, suspension, or revocation until there is a final, unreviewable judgment with respect to the determination of the administrative law judge, unless, in the case of a license revocation, the Attorney General establishes, at a hearing before an administrative law judge, by clear and convincing evidence, that the licensee committed the violation willfully and that the continued operation by the licensee of the business involved poses an immediate and grave threat to public safety. (E) An 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), except that the provisions of section 922(t)(5) regarding notice and opportunity for a hearing shall be subject to the procedural and evidentiary requirements provided in this subsection. (f) (1) Within 60 days after a party receives a notice issued under subsection (d) of a decision to deny a license, or a notice issued under subsection (e)(3)(C) of a determination 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 trial of the 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) or (e)(3). (3) (A) If the court decides that the determination was not authorized by law, the court shall order the Attorney General to take such action as may be necessary to comply with the judgment of the court. (B) The court shall not make a determination to revoke a license unless the court finds, by clear and convincing evidence, that— (i) the Attorney General notified the licensee in writing of all reasons for the contemplated action of the Attorney General; (ii) the Attorney General afforded the licensee a commercially reasonable opportunity to demonstrate or achieve compliance with this chapter; and (iii) the licensee has not complied, and is unlikely to be able to comply, with this chapter. (4) If criminal proceedings are instituted against an applicant for a license under this chapter or a licensee alleging a violation of this chapter, and the applicant or licensee, as the case may be, is acquitted of the charges, or the proceedings are terminated, other than on motion of the Government before trial on the charges, the Attorney General shall be absolutely barred from denying a license under this chapter, or suspending or revoking a license granted under this chapter, 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, more than 1 year after the filing of the indictment or information. (6) The Attorney General may not institute a proceeding to suspend or revoke a license granted under this chapter, based on a violation that is finally determined to have occurred with respect to a different license..