text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Gun Show Loophole Closing Act of 
  2017''.
  
  SEC. 2. GUN SHOW BACKGROUND CHECK.
  
      (a) Findings.--The Congress finds that--
              (1) approximately 5,200 traditional gun shows are held 
          annually across the United States, attracting thousands of 
          attendees per show and hundreds of Federal firearms licensees 
          and unlicensed firearms sellers; and
              (2) gun shows at which firearms are exhibited or offered 
          for sale or exchange provide a convenient and centralized 
          commercial location where criminals and other prohibited 
          persons obtain firearms without background checks and without 
          records that enable firearm tracing.
      (b) Definitions.--Section 921(a) of title 18, United States Code, 
  is amended by adding at the end the following:
      ``(36) Gun Show.--The term `gun show'--
              ``(A) means any event at which 50 or more firearms are 
          offered or exhibited for sale, exchange, or transfer, if one or 
          more of the firearms has been shipped or transported in, or 
          otherwise affects, interstate or foreign commerce;
              ``(B) does not include an offer or exhibit of firearms for 
          sale, exchange, or transfer by an individual from the personal 
          collection of that individual, at the private residence of that 
          individual, if the individual is not required to be licensed 
          under section 923; and
              ``(C) does not include an offer or exhibit of firearms for 
          sale, exchange, or transfer at events--
                      ``(i) where not more than 100 firearms are offered 
                  or exhibited for sale, exchange or transfer;
                      ``(ii) that are conducted by private, not-for-
                  profit organizations whose primary purpose is owning 
                  and maintaining real property for the purpose of 
                  hunting activities; and
                      ``(iii) that are attended only by permanent or 
                  annual dues-paying members of the organizations, and 
                  the members of the immediate families of the dues-
                  paying members.
      ``(37) Gun Show Vendor.--The term `gun show vendor' means a person 
  who is not licensed under section 923 and who exhibits, sells, offers 
  for sale, transfers, or exchanges a firearm at a gun show, regardless 
  of whether or not the person arranges with the gun show operator for a 
  fixed location from which to exhibit, sell, offer for sale, transfer, 
  or exchange the firearm.''.
      (c) Regulation of Firearms Transfers at Gun Shows.--
              (1) In general.--Chapter 44 of such title is amended by 
          adding at the end the following:
  ``Sec. 932. Regulation of firearms transfers at gun shows
      ``(a) Registration of Gun Show Operators.--It shall be unlawful for 
  a person to operate a gun show, unless--
              ``(1) the person has attained 21 years of age;
              ``(2) the person (and, if the person is a corporation, 
          partnership, or association, each individual possessing, 
          directly or indirectly, the power to direct or cause the 
          direction of the management and policies of the corporation, 
          partnership, or association) is not prohibited by subsection 
          (g) or (n) of section 922 from transporting, shipping, or 
          receiving firearms or ammunition in interstate or foreign 
          commerce;
              ``(3) the person has not willfully violated any provision 
          of this chapter or regulation issued under this chapter;
              ``(4) the person has registered with the Attorney General 
          as a gun show operator, in accordance with regulations 
          promulgated by the Attorney General, and as part of the 
          registration--
                      ``(A) has provided the Attorney General with a 
                  photograph and the fingerprints of the person; and
                      ``(B) has certified that the person meets the 
                  requirements of subparagraphs (A) through (D) of 
                  section 923(d)(1);
              ``(5) the person has not willfully failed to disclose any 
          material information required, and has not made any false 
          statement as to any material fact, in connection with the 
          registration; and
              ``(6) the person has paid the Attorney General a fee for 
          the registration, in an amount determined by the Attorney 
          General.
      ``(b) Responsibilities of Gun Show Operators.--
              ``(1) In general.--It shall be unlawful for a person to 
          operate a gun show, unless the person--
                      ``(A) not later than 30 days before the 
                  commencement of the gun show, notifies the Attorney 
                  General, in writing, of the date, time, duration, and 
                  location of the gun show, and the identity of each 
                  person who will be a gun show vendor at the gun show;
                      ``(B) before commencement of the gun show--
                              ``(i) verifies the identity of each 
                          individual who will be a gun show vendor at the 
                          gun show by examining a valid identification 
                          document (as defined in section 1028(d)(3)) of 
                          the individual containing a photograph of the 
                          individual; and
                              ``(ii) requires each such individual to 
                          sign--
                                      ``(I) a ledger, and enter into the 
                                  ledger identifying information 
                                  concerning the individual; and
                                      ``(II) a notice which sets forth 
                                  the obligations of a gun show vendor 
                                  under this chapter; and
                      ``(C) notifies each person who attends the gun show 
                  of the requirements of this chapter, in accordance with 
                  such regulations as the Attorney General shall 
                  prescribe.
              ``(2) Recordkeeping.--A person who operates, or has 
          operated, a gun show shall maintain records demonstrating 
          compliance with paragraph (1)(B), at such place, for such 
          period of time, and in such form as the Attorney General shall 
          require by regulation, or transmit the records to the Attorney 
          General.
      ``(c) Background Check Required Before Transfer of Firearm Between 
  Unlicensed Persons.--It shall be unlawful for a person who is not 
  licensed under this chapter to transfer possession of, or title to, a 
  firearm at, or on the curtilage of, a gun show, to another person who 
  is not so licensed, or for a person who is not so licensed to receive 
  possession of, or title to, a firearm at, or on the curtilage of, a gun 
  show from another person who is not so licensed, unless a licensed 
  importer, licensed manufacturer, or licensed dealer--
              ``(1) has entered into a separate bound record the make, 
          model, and serial number of the firearm, and such other 
          information about the transaction as the Attorney General may 
          require by regulation; and
              ``(2) has notified the prospective transferor and 
          prospective transferee of the firearm that the national instant 
          criminal background check system established under section 103 
          of the Brady Handgun Violence Prevention Act has provided the 
          licensee with a unique identification number, indicating that 
          receipt of the firearm by the prospective transferee would not 
          violate section 922 of this title or State law.
      ``(d) Recordkeeping Requirements.--
              ``(1) In general.--A licensee who provides a notice 
          pursuant to subsection (c)(2) with respect to the transfer of a 
          firearm shall--
                      ``(A) not later than 10 days after the date of the 
                  transfer, submit to the Attorney General a report of 
                  the transfer, which report shall specify the make, 
                  model, and serial number of the firearm, and contain 
                  such other information and be on such form, as the 
                  Attorney General shall require by regulation, except 
                  that the report shall not include the name of or other 
                  identifying information relating to any person involved 
                  in the transfer who is not licensed under this chapter; 
                  and
                      ``(B) retain a record of the transfer, including 
                  the same information as would be required if the 
                  transfer were from the inventory of the licensee, as 
                  part of the permanent business records of the licensee.
              ``(2) Limitation.--The Attorney General may not impose any 
          recordkeeping requirement on any gun show vendor by reason of 
          this section.''.
              (2) Penalties.--Section 924(a) of such title is amended by 
          adding at the end the following:
      ``(8)(A) Whoever knowingly violates subsection (a) or (d) of 
  section 932 shall be fined under this title, imprisoned not more than 5 
  years, or both.
      ``(B) Whoever knowingly violates subsection (b) or (c) of section 
  932, shall be--
              ``(i) fined under this title, imprisoned not more than 2 
          years, or both; and
              ``(ii) in the case of a second or subsequent conviction, 
          fined under this title, imprisoned not more than 5 years, or 
          both.
      ``(C) In addition to any other penalties imposed under this 
  paragraph, the Attorney General may, with respect to any person who 
  knowingly violates any provision of section 932--
              ``(i) if the person is registered pursuant to section 
          932(a), after notice and opportunity for a hearing, suspend for 
          not more than 6 months or revoke the registration of that 
          person under section 932(a); and
              ``(ii) impose a civil fine in an amount equal to not more 
          than $10,000.''.
              (3) Clerical amendment.--The table of contents for such 
          chapter is amended by adding at the end the following:
  
  ``Sec. 932. Regulation of firearms transfers at gun shows.''.
      (d) Inspection Authority.--Section 923(g)(1) of such title is 
  amended by adding at the end the following:
      ``(E) Notwithstanding subparagraph (B) of this paragraph, the 
  Attorney General may enter during business hours any place where a gun 
  show operator operates a gun show or is required to maintain records 
  pursuant to section 932(b)(2), for purposes of examining the records 
  required by sections 923 and 932 and the inventory of licensees 
  conducting business at the gun show. The entry and examination shall be 
  conducted for the purposes of determining compliance with this chapter 
  by gun show operators and licensees conducting business at the gun 
  show, and shall not require a showing of reasonable cause or a 
  warrant.''.
      (e) Reports of Multiple Sales Assisted by Licensees at Gun Shows.--
  Section 923(g)(3)(A) of such title is amended by inserting ``or 
  provides pursuant to section 932(c)(2) notice with respect to,'' after 
  ``sells or otherwise disposes of,''.
      (f) Increased Penalties for Serious Recordkeeping Violations by 
  Licensees.--Section 924(a)(3) of such title is amended to read as 
  follows:
      ``(3)(A) Except as provided in subparagraph (B), any licensed 
  dealer, licensed importer, licensed manufacturer, or licensed collector 
  who knowingly makes any false statement or representation with respect 
  to the information required by this chapter to be kept in the records 
  of a person licensed under this chapter, or violates section 922(m), 
  shall be fined under this title, imprisoned not more than 1 year, or 
  both.
      ``(B) If the violation described in subparagraph (A) is in relation 
  to an offense--
              ``(i) under paragraph (1) or (3) of section 922(b), such 
          person shall be fined under this title, imprisoned not more 
          than 5 years, or both; or
              ``(ii) under subsection (a)(6) or (d) of section 922, such 
          person shall be fined under this title, imprisoned not more 
          than 10 years, or both.''.
      (g) Increased Penalties for Violations of Criminal Background Check 
  Requirements.--
              (1) Penalties.--Section 924(a)(5) of such title is 
          amended--
                      (A) by striking ``subsection (s) or (t) of section 
                  922'' and inserting ``section 922(t)''; and
                      (B) by striking ``1'' and inserting ``5''.
              (2) Elimination of certain elements of offense.--Section 
          922(t)(5) of such title is amended by striking ``and, at the 
          time'' and all that follows through ``State law''.
      (h) Authority To Hire Personnel To Inspect Gun Shows.--The Director 
  of the Bureau of Alcohol, Tobacco, Firearms, and Explosives may hire at 
  least 40 additional Industry Operations Investigators for the purpose 
  of carrying out inspections of gun shows (as defined in section 
  921(a)(36) of title 18, United States Code).
      (i) Report to the Congress.--The Director of the Bureau of Alcohol, 
  Tobacco, Firearms, and Explosives shall submit biennial reports to the 
  Congress on how firearms (as defined in section 921(a)(3) of title 18, 
  United States Code) are sold at gun shows (as defined in paragraph (36) 
  of such section), how this section is being carried out, whether 
  firearms are being sold without background checks conducted by the 
  national instant criminal background check system established under 
  section 103 of the Brady Handgun Violence Prevention Act, what 
  resources are needed to carry out this section, and any recommendations 
  for improvements to ensure that firearms are not sold without the 
  background checks.
      (j) Effective Date.--This section and the amendments made by this 
  section shall take effect 180 days after the date of enactment of this 
  Act.
target: Gun Show Loophole Closing Act of 2017  This bill makes it unlawful for any person to operate a gun show unless such person: (1) has attained 21 years of age; (2) is not prohibited from transporting, shipping, or receiving firearms and has not violated any federal firearms requirements; (3) has registered with the Department of Justice (DOJ) as a gun show operator and has provided a photograph and fingerprints; (4) has not concealed material information nor made false statements in connection with a gun show operator registration; and (5) notifies DOJ of the date, time, and duration of a gun show not later than 30 days before the commencement of such show and verifies the identity of each vendor at the gun show. The bill makes it unlawful for a person not licensed under this bill to transfer possession of a firearm at a gun show to another person not licensed unless a licensed importer, manufacturer, or dealer has, among other conditions, recorded the transfer with DOJ. Additionally, the licensed dealer must notify the prospective transferor and transferee of the firearm that the national instant criminal background check system has provided the dealer with a unique identification number indicating that the receipt of the firearm would not violate certain federal or state firearm laws. The bill grants DOJ authority to enter, without a showing of reasonable cause or a warrant, any place where a gun show is held or where a gun show operator is required to maintain records to examine records and inventory to determine compliance with this bill. 
feat_title: Gun Show Loophole Closing Act of 2017