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H.R. 3770: Fighting Irrational Regulatory Enforcement to Avert Retailers’ Misfortune Act

The bill titled "Fighting Irrational Regulatory Enforcement to Avert Retailers’ Misfortune Act" (also known as the FIREARM Act) introduces several changes aimed at firearm retailers regarding licensing and regulatory compliance. Here’s a breakdown of its main provisions:

Definitions and Key Terms

The bill establishes certain definitions related to firearms licensing, including:

Self-Reported Violation: A violation that a licensee voluntarily reports to the Attorney General before it is discovered during an inspection.
Willfully: Refers to violations resulting from intentional actions, excluding minor or clerical mistakes.
Uncorrectable Violation: A violation that cannot be rectified, such as transferring a firearm to a prohibited individual.

Self-Reported Violations

The bill allows for self-reported violations to be corrected without enforcement actions resulting in license revocation or denial, except under specific circumstances:

The Attorney General is required to assist the licensee in correcting the violation and provide guidance to prevent future occurrences.

Enforcement Actions and Notifications

Before the Attorney General can initiate enforcement actions, they must notify the licensee of the violation. This notification must include:

A detailed description of the violation.
All relevant evidence the Attorney General has.
An assurance that enforcement will not occur if the licensee corrects the violation within 30 business days of receiving the notice.

Judicial Review of License Revocation

The bill also provides a process for judicial review if a license is revoked or denied. Key points include:

The affected party can petition a district court for review within 15 business days of receiving a revocation notice.
During the review, the Attorney General must hold off on the revocation until the court issues a ruling.
The court may evaluate any evidence and can only uphold the revocation if it finds clear evidence of willful misconduct by the license holder.

Retroactive Application

The bill states that its provisions will apply retroactively to any licensees whose licenses were revoked or denied under the Enhanced Regulatory Enforcement Policy established on June 23, 2021. Also:

Licensees affected by this policy will be allowed to reapply for their licenses if they can demonstrate compliance with relevant regulations and have not committed a crime that prohibits them from being licensed.

Conclusion of Key Provisions

Overall, the bill aims to provide firearm retailers with a framework to correct minor regulatory violations and reduce the risk of penalties due to self-reported issues, while ensuring that serious violations still face enforcement action.