This bill amends federal law to expand regulatory oversight of ammunition. It requires a federal license for individuals dealing in ammunition and extends existing recordkeeping requirements for firearms to include ammunition sales by licensees. These provisions aim to enhance the tracking and accountability of ammunition transactions.

A key provision restricts bulk ammunition sales to non-licensees, limiting transfers to 100 rounds of .50 caliber or 1,000 rounds of other calibers within a five-day period. Purchasers must present valid identification and certify compliance with these limits on a form, which licensees must then transmit to the Attorney General. The bill also explicitly extends the prohibition against straw purchasing to ammunition, making it unlawful to acquire ammunition for another person who is prohibited from possessing it.

Furthermore, the legislation mandates that federal firearms licensees conduct a National Instant Criminal Background Check System (NICS) check before transferring ammunition to non-licensees. This ensures the recipient is not legally prohibited from possessing ammunition or firearms, though exemptions exist for individuals with certain state-issued permits. To support these expanded requirements, the bill authorizes $150 million for upgrading and maintaining the NICS system.

The bill establishes significant penalties for licensees violating bulk sale restrictions or reporting requirements, including fines and potential license revocation for repeat offenses. Individuals making false statements during an ammunition purchase also face fines and imprisonment. Additionally, it requires the Bureau of Alcohol, Tobacco, Firearms and Explosives to annually report on violations and ammunition sales data, providing insights for law enforcement.