H.R. 4227 — AMMO Act

This section requires a federal firearms license to engage in the business of dealing in ammunition. Specifically, it (1) amends 18 U.S.C. 922(a)(1)(B) to prohibit unlicensed persons from dealing in ammunition; (2) amends the definition of "dealer" in 18 U.S.C. 921(a)(11)(A) to include those engaged in the business of selling ammunition; and (3) amends the dealer license fee provision in 18 U.S.C. 923(a)(3)(B) to cover dealers in ammunition for firearms other than destructive devices. (Thus, ammunition dealers must now obtain a federal firearms license (FFL), which is currently required only for firearms dealers.)

This section extends to ammunition the recordkeeping and reporting requirements applicable to firearms for federal firearms licensees.

This section prohibits persons licensed under the Gun Control Act (i.e., federal firearms licensees, or FFLs) from transferring to non-licensees (1) more than 100 rounds of .50 caliber ammunition or 1,000 rounds of any other caliber within any 5 consecutive days or (2) any ammunition without a transferee's written certification attesting compliance with those limits or if the transferor knows or has reason to believe the limits would be exceeded. It further requires FFLs, for such transfers, to verify a transferee's valid photo ID (i.e., as defined in 18 USC 1028(d)), obtain a completed form including the certification and penalties notice, transmit the form to the Attorney General within 30 days for violation checks, and retain it for at least 2 years (with forms destroyed by the Attorney General after 60 days absent a criminal investigation). It criminalizes knowing false statements or fake IDs by transferees. The section imposes penalties on violating FFLs of $50,000–$250,000 fines (with a 60-day sales ban for a second violation and license revocation for a third), up to 5 years imprisonment and $20,000–$50,000 fines on transferees for false statements, and $10,000 fines for recordkeeping failures. It also requires FFLs to post signage summarizing the restrictions and penalties (with $10,000 civil penalties per violation).

This section requires a licensed importer, licensed manufacturer, or licensed dealer to conduct a National Instant Criminal Background Check System (NICS) check, established under section 103 of the Brady Handgun Violence Prevention Act, before transferring ammunition to a non-licensee, including verification that receipt would not violate subsection (g) or (n) of 18 U.S.C. 922 (prohibiting possession by certain persons), subsection (d) (generally barring transfers to persons under 18, or under 21 for handguns), or state, local, or tribal law, along with identity verification via photo ID. Exceptions apply if the non-licensee presents a state-issued permit, valid for five years or less, authorizing possession or acquisition of ammunition or a firearm after government verification of eligibility. (Thus, the requirement parallels NICS checks for firearm transfers by licensees but previously did not apply to ammunition.) This section applies specified firearm background check provisions to ammunition transfers; authorizes $150 million for NICS upgrades and maintenance; makes technical and conforming amendments, including redesignating certain subsections; and states that it does not authorize a national firearms or ammunition registry or interfere with state law.

This section directs the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), within six months after the effective date of this Act and annually thereafter, to prepare, publish in the Federal Register, and make publicly available a report on violations of 18 U.S.C. §922(aa)—which prohibits certain transfers or possessions of semiautomatic firearms or large-capacity ammunition feeding devices—and information reported pursuant to §922(aa)(2)(C), including geographic data, total sales data, crime statistics, repeat offenders, and caliber types involved. The report must identify trends in such violations or other information useful to federal, state, or local law enforcement authorities.