Prohibits a licensed dealer from selling or delivering a firearm to a qualified purchaser if the dealer has reasonable cause to believe that: (1) the purchaser intends to transfer the firearm to an ineligible individual; or (2) the gun will be used in a crime.
Requires a chief law enforcement officer who determines that a person is ineligible to receive a handgun to notify the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE) of the person's attempt to purchase a firearm.
Prohibits the sale to, or purchase by, an unlicensed individual of two or more handguns during any 30-day period.
Directs the Attorney General to prescribe security standards for the storage and display of firearms by licensed firearms dealers to prevent theft or other loss.
Authorizes inspections of the inventory and records of a licensed importer, manufacturer, or dealer at any time without reasonable cause or warrant.
Requires a licensed importer, dealer, or collector, before purchasing a firearm from an unlicensed person, to check the firearm against the Stolen Gun File of the National Crime Information Center.
Increases penalties for specified violations. Provides for: (1) mandatory license suspension when the licensee is charged with a crime; and (2) license suspension for at least 48 hours for failure to report a missing firearm.
Reduces from 50 pounds to five pounds of commercially manufactured black powder the threshold amount covered by certain explosives provisions.
Authorizes appropriations to hire new BATFE inspectors and agents.