Preventing firearm trafficking

(a) Duties of firearm licensees Section 923(g) of title 18, United States Code, is amended— (1) in paragraph (1)(B)— (A) by striking or at the end of clause (ii); and (B) by redesignating clause (iii) as clause (iv) and inserting after clause (ii) the following: (iii) for ensuring compliance with the regulations prescribed under section 926(d); or; (2) in paragraph (3)(B)— (A) by inserting a firearm involved in a crime or after thereof regarding; (B) by striking, and shall destroy each such form and any record of the contents thereof no more than 20 days from the date such form is received and inserting and shall retain each such form and any record of the contents of the form for 180 days after the date the form is received; and (C) by striking the 2nd sentence; and (3) by striking paragraph (7) and inserting the following: (7) (A) Each licensee shall respond immediately to, and in no event later than 24 hours after the receipt of, a request by the Attorney General for information contained in the records required to be kept by this chapter as may be required for determining the disposition of 1 or more firearms in the course of a bona fide criminal investigation. The requested information shall be provided orally or in writing, as the Attorney General may require. The Attorney General shall implement a system whereby the licensee can positively identify and establish that an individual requesting information via telephone is employed by and authorized by the agency to request the information. (B) Each licensee shall, in the absence of unique and special circumstances and approved in writing by the Attorney General, maintain records of all such crime gun trace requests for firearms disposed of by the licensee within the preceding 3 years, with copies of the transaction records for the firearms in the possession of the licensee, if any, to review before the transfer of any firearm. (C) Each licensee shall review all records of crime gun trace requests before transferring any firearm, and report sales or other dispositions whenever the licensee sells or otherwise disposes of any firearm to an unlicensed person to whom a crime gun has been traced. The report shall be prepared on a form specified by the Attorney General and forwarded to the office specified thereon and to the department of State police or State law enforcement agency of the State or local law enforcement agency of the local jurisdiction in which the sale or other disposition took place, not later than the close of business on the day that the licensee determines that the sale or other disposition occurs. (D) (i) Each licensed dealer shall update the practices, policies, and procedures referred to in section 923(d)(1)(G)(ii) of the licensee, whenever— (I) the licensee reports to the Attorney General 5 or more lost or stolen firearms in any period of 12 consecutive months; or (II) 5 or more firearms that were used in a crime under Federal, State, or local law within 3 years after the last known retail sale of the firearm are traced to the licensee within any such 12-month period. (ii) Each licensed dealer shall maintain physical records of costs incurred to implement and update the business practices, policies, and procedures, including the installation of audio and video surveillance of firearms transactions, and the implementation of an electronic record keeping system, or of physical security to prevent loss or theft of firearm inventory, and shall make the records available for inspection on the premises covered by the license until the licensee ceases to engage in the business of selling firearms.. (b) Duties of the Attorney General The Attorney General shall— (1) develop, draft, and distribute to persons licensed under chapter 44 of title 18, United States Code, materials setting forth best business practices, policies, and procedures to prevent the diversion of firearms inventory from lawful commerce, and from time to time revise the materials as appropriate; and (2) during the 3 fiscal years that first begin after the date of the enactment of this Act, prioritize for compliance inspections those firearms dealers that have not been inspected within the then preceding fiscal year with a high number of crime gun traces relative to other firearms dealers.