S. 2191 — AMMO Act

This section requires a federal firearms license to engage in the business of dealing in ammunition (previously, such licenses were required only for licensed importers or manufacturers to import or manufacture ammunition). It also (1) expands the definition of "dealer" to include any person engaged in the business of dealing in firearms or ammunition, and (2) makes conforming changes to dealer licensing fees by specifying that the $200 three-year fee applies to dealers in firearms other than destructive devices or ammunition for firearms other than destructive devices.

This section extends firearms recordkeeping requirements to ammunition for licensed importers, manufacturers, and dealers by (1) requiring records of ammunition received and disposed of, (2) requiring reports of certain dispositions of ammunition, and (3) requiring reports of theft or loss of ammunition. (As background, these licensees—known as federal firearms licensees—are required to log detailed information on firearms transactions in ATF Form 4473 or bound records, electronically report multiple handgun sales to the same non-licensee within five business days, and report inventory thefts or losses to ATF within 48 hours.)

This section expands the prohibition on straw purchases under 18 U.S.C. §932 to include ammunition in addition to firearms. (Thus, it is now unlawful to knowingly purchase or conspire to purchase ammunition for, on behalf of, or at the request or demand of another person known or reasonably believed to be prohibited under 18 U.S.C. §922(d), to intend its use in a felony, Federal crime of terrorism, or drug trafficking crime, or to intend its sale to such a person, with penalties unchanged at up to 15 years imprisonment generally or 25 years if known or reasonably believed to be used in such crimes.)

This section establishes under new 18 U.S.C. §922(aa) restrictions prohibiting persons licensed under the Gun Control Act of 1968 (i.e., federal firearms licensees) from transferring ammunition to non-licensees during any 5-day period in excess of 100 rounds of .50 caliber ammunition or 1,000 rounds of any other caliber, unless the transferee provides a signed written certification attesting compliance with those limits and the transferor has no reason to believe otherwise. It further requires such licensees to verify transferee identity via a valid identification document (as defined in 18 U.S.C. §1028(d)), obtain a completed Attorney General form including the certification and penalties notice, transmit the form to the Attorney General within 30 days, retain it for at least two years, and post signage summarizing the restrictions and related penalties under new §923(g)(8); it also prohibits knowingly false statements or identification intended to deceive. This section adds penalties under 18 U.S.C. §924(a)(9), including for knowing violations of the transfer limits or form completion: fines of $50,000-$250,000 (first offense), a 60-day prohibition on firearm or ammunition sales (second offense), and revocation of all licenses (third offense); for false statements, fines up to $20,000 (first) or $50,000 (subsequent), imprisonment up to five years, or both; and for form transmission or recordkeeping failures, fines up to $10,000. It also authorizes civil penalties of up to $10,000 per violation for signage failures under new §924(q), subject to administrative review.

This section requires licensed importers, manufacturers, and dealers to conduct a National Instant Criminal Background Check System (NICS) check—receiving a unique identification number confirming no violation of 18 U.S.C. 922(g), (n), or (d) (for recipients under 21 years old), or state, local, or Tribal law—prior to transferring ammunition to non-licensees after verifying the recipient's identity via a valid photo identification document; requires licensees to provide notice of the prohibition and obtain the recipient's certification; and applies specified firearm background check exceptions (e.g., state permits issued within the prior five years after government verification) to ammunition transfers. (As background, NICS, established under the Brady Handgun Violence Prevention Act, screens prospective firearm transferees for prohibiting factors such as felony convictions. Thus, this extends such screening to ammunition transfers by Federal firearms licensees.) The section redesignates 18 U.S.C. 922(t) as (s), modifies (s) to broaden NICS confirmation language and define "chief law enforcement officer," makes conforming amendments to related statutes (e.g., 18 U.S.C. 922(y), 925A, 925B), includes rules of construction clarifying no authorization of a national firearms or ammunition registry and no interference with state law under 18 U.S.C. 927, and authorizes $150 million for NICS upgrades and maintenance.

This section requires the Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), not later than 180 days after the effective date under section 8 and annually thereafter, to prepare, publish in the Federal Register, and make publicly available a report on violations of subsection (aa) of 18 U.S.C. §922 (as added by section 5). The report must include information reported under §922(aa)(2)(C)—such as geographic data, total sales data, crime statistics, repeat offenders, and caliber types involved—and identify trends in violations or other information useful to Federal, State, or local law enforcement agencies.