Firearms Licensing Act of 1994

Firearms Licensing Act of 1994 - Requires the Director of the Bureau of Justice Assistance to reduce by 25 percent the annual allocation to a State for a fiscal year under title I of the Omnibus Crime Control and Safe Streets Act of 1968 unless the State has in effect laws and procedures which provide for: (1) a records check before issuance of a driver's license and identification documents, and the use of magnetic strips to identify prohibited persons; (2) the seizure and voiding of the driver's license of a person convicted of a felony or adjudicated mentally incompetent, and the use of a magnetic strip identifying the licensee as a prohibited person to be attached to future licenses; (3) the funding of records checks by increasing fines imposed upon convicted felons; and (4) a requirement that the State maintain and update a computerized list of prohibited persons.

Directs the Attorney General to: (1) create a national, computerized list of prohibited persons; (2) incorporate State criminal history records into the Federal criminal records system maintained by the Federal Bureau of Investigation; (3) develop hardware and software systems to link State lists of prohibited persons with the national list; and (4) provide any responsible State agency with access to the national list upon request.

Sets forth provisions regarding: (1) procedures for correcting erroneous records; and (2) judicial review.

Amends the Federal criminal code to prohibit a person from possessing a firearm unless the person is carrying an identification document that is issued to the person by the State transportation agency where the person resides and affixed with a magnetic strip on which is encoded information that identifies the licensee as a person who is not a prohibited person. Makes it unlawful for any licensed dealer to: (l) knowingly transfer a firearm to an unlicensed individual unless the dealer has used an electronic device to read such strip; or (2) fail to notify local law enforcement authorities within 72 hours of any attempt to purchase a firearm by a person who is identified as a prohibited person through the use of such a device.

Sets penalties for violations. Directs the court, upon conviction of such illegal possession of a firearm, to offer the defendant the opportunity to seek enlistment or appointment in the armed forces (and if the defendant immediately accepts, to impose a probationary sentence on the defendant, conditioned on the defendant becoming enlisted or appointed within 60 days after imposition of such sentence and completing the minimum period of obligated active service required under the enlistment or appointment).