; or (III) a valid permit to carry a handgun issued by the State to the recipient. (c) A certification under subsection (b) with respect to a State shall have no force or effect on or after the date the Attorney General finds, after an opportunity for a hearing on the record, that the State does not have in effect the system described in subsection (b). (d) The Attorney General shall prescribe such regulations as may be necessary to carry out this section. . (b) Penalties Section 924(a) of such title is amended by adding at the end the following: (8) Whoever knowingly violates section 932(a)(2) shall be fined under this title, imprisoned, or both. The court shall not suspend a sentence of imprisonment imposed under this paragraph. . (c) Clerical amendment The table of sections for such chapter is amended by adding at the end the following: 932. Licensing and registration of handguns. . (d) Effective date The amendments made by this section shall apply to conduct engaged in after the 2-year period that begins with the date of the enactment of this Act. 3. Grants for State implementation of programs to license and register handguns (a) In general The Attorney General is authorized to award grants to States, units of local government, and Indian tribes to comply with the requirements under subsection (a) of section 932 of title 18, United States Code, or to implement a system described in subsection (b) of that section. (b) Program authorized From the amounts appropriated to carry out this section, and not later than 90 days after such amounts are appropriated, the Attorney General shall award grants, on a competitive basis, to eligible applicants whose applications are approved under subsection (c) to assist such applicants in carrying out the activities described in subsection (a). (c) Application To be eligible to receive a grant under this Act, a State, unit of local government, or Indian tribe shall submit to the Attorney General an application at such time, in such manner, and containing such information as