H.R. 4227: Ammunition Modernization and Monitoring Oversight Act

This bill, known as the Ammunition Modernization and Monitoring Oversight Act (AMMO Act), proposes several changes to the laws regarding the sale and transfer of ammunition in the United States. Below is a summary of the key provisions of the bill:

1. Amendment of Ammunition Sale Regulations

The bill seeks to amend Title 18 of the United States Code to impose stricter regulations on the sale and transfer of ammunition:

• It broadens the definition of who needs to be licensed to deal in ammunition, extending beyond just manufacturers to include dealers.
• It updates recordkeeping requirements for licensed dealers to include ammunition, thereby necessitating detailed tracking of sales.

2. Bulk Sales Restrictions

The bill establishes limits on the amount of ammunition that can be sold in bulk:

• Licensed dealers cannot transfer more than 100 rounds of .50 caliber ammunition or more than 1,000 rounds of any other caliber to individuals not licensed under specific conditions within any period of five consecutive days.
• The buyer must provide a written certification confirming that the limits on the amount of ammunition acquired do not exceed the set thresholds.

3. Background Checks

Under this bill, a background check will be required before any ammunition transfer by licensed dealers to unlicensed individuals:

• The dealer must contact the national instant criminal background check system (NICS) before completing the sale.
• A unique identification number will be issued by the system to indicate the buyer’s eligibility to receive the ammunition.

4. Prohibition on Straw Purchases

The bill includes provisions to prohibit straw purchases of ammunition, making it illegal for someone to buy ammunition on behalf of another person who is not legally entitled to purchase it.

5. Reporting and Compliance

The bill mandates the creation and annual publication of reports by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) detailing violations related to ammunition sales and providing data that might help law enforcement heads in addressing issues more effectively.

6. Civil and Criminal Penalties

Penalties for violations of the new regulations would include:

• Fines ranging from $50,000 to $250,000 for knowingly violating the bulk sales limits.
• Additional penalties for providing false information during the purchase process or failing to comply with reporting requirements.

7. Signage Requirements

Licensed dealers will be required to post signs at their premises that inform customers of the new restrictions and the penalties associated with violations.

8. Funding for the Background Check System

The bill also includes a provision for increased funding to upgrade and maintain the national instant criminal background check system, with authorization for up to $150 million in appropriations.

9. Effective Date

If passed, the amendments made by this bill will come into effect 120 days after its enactment.

Relevant Companies

• AOBC (American Outdoor Brands Corp) - A significant manufacturer and dealer of firearms and ammunition that would be directly impacted by increased regulatory compliance and potential changes in sales volumes due to bulk sales restrictions.
• VSTO (Vista Outdoor Inc) - Engaged in the manufacture of ammunition, this company could face challenges related to new recordkeeping and selling limitations.