Inspections

(a) Mandated annual inspections of high-Risk licensed dealers and quinquennial inspections of other licensed dealers Section 923(g)(1)(B) of title 18, United States Code, is amended— (1) in clause (ii), by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and adjusting the margins accordingly; (2) by redesignating clauses (i), (ii), and (iii) as subclauses (I), (II), and (III), respectively, and adjusting the margins accordingly; (3) by inserting (i) after (B); and (4) by adding at the end the following: (ii) (I) The Attorney General— (aa) not less frequently than annually, shall inspect or examine the inventory, records, and business premises of each licensed dealer whom the Attorney General determines to be a high-risk dealer, based on considerations that include whether— (AA) during the preceding 5 years, the dealer reported a lost or stolen firearm; (BB) during the preceding 10 years, the dealer was issued a report of violation, received a warning letter, or was the subject of a warning conference; or (CC) during the preceding year, multiple firearms were determined to have been used in a crime under Federal, State, or local law within 3 years after sale by the dealer; and (bb) may appoint an attorney to ensure that high-risk dealers comply with all applicable firearm sales laws. (II) An attorney appointed under subclause (I)(bb) may, with respect to high-risk dealers, use in-store observation, monitor records, conduct random and repeated sales integrity tests, and design and offer instructional programs providing best practices sales training to all employees involved in firearm sales until the attorney certifies to the Attorney General that the high-risk dealer has complied with all applicable firearm sales laws for 3 consecutive years. (III) Not later than 180 days after the date on which an inspection or examination under subclause (I) reveals a violation of this section or any regulation prescribed under this chapter, and not later than 180 days after a security inspection conducted under paragraph (6)(B)(i) of this subsection, the Attorney General shall conduct an inspection or examination to determine whether the violation identified in the preceding inspection or examination has been cured. (IV) Not less frequently than once every 5 years, the Attorney General shall inspect or examine the inventory, records, and business premises of each licensed dealer that the Attorney General has not determined to be a high-risk dealer under subclause (I).. (b) Elimination of limit on inspection of licensee records Section 923(g)(1)(B)(i)(II) of title 18, United States Code, as redesignated by subsection (a), is amended— (1) by striking — and all that follows through (bb); and (2) by striking with respect to records relating to a firearm involved in a criminal investigation that is traced to the licensee. (c) Mandated security inspection of dealers reporting lost or stolen firearms Section 923(g)(6) of title 18, United States Code, is amended— (1) by inserting (A) after (6); and (2) by adding at the end the following: (B) (i) If the Attorney General receives a report under subparagraph (A) from a licensed dealer, the Attorney General shall conduct an independent inspection of the security of the premises at which the theft occurred, which shall include an inspection of the measures taken to implement the security plan submitted by the licensed dealer under subsection (d)(1)(G)(ii). (ii) On completion of a security inspection under clause (i), the Attorney General shall provide the licensed dealer with— (I) a notice of any violation by the licensed dealer of any security requirements prescribed under section 926(d); and (II) recommendations for improving security of the premises involved.. (d) Elimination of limit on inspection of other premises Section 923(j) of title 18, United States Code, is amended by striking the sixth sentence.