The Federal Firearm Licensee Act aims to strengthen regulations and oversight of firearm dealers, enhance background checks, and increase penalties for violations to reduce illegal firearm trafficking and improve public safety.
Robin Kelly
Representative
IL-2
The Federal Firearm Licensee Act aims to strengthen regulations and oversight of licensed firearm dealers to reduce illegal firearm trafficking and enhance public safety. It mandates enhanced security measures, regular inventory checks, and electronic record-keeping for dealers, while also increasing inspection frequency and penalties for violations. The act also broadens background check requirements for both dealers and their employees and seeks to modernize the Bureau of Alcohol, Tobacco, Firearms, and Explosives' (ATF) operations through increased staffing and data accessibility. Finally, the act repeals limitations on sharing firearm trace data and centralizing records, and it requires reports to Congress on the act's implementation and dealer inspections.
Major Overhaul Proposed for Gun Dealers: Federal Firearm Licensee Act Mandates Stricter Security, Digital Records, and More Inspections
Congress is considering the Federal Firearm Licensee Act, a bill that significantly rewrites the rules for businesses licensed to sell, manufacture, or import firearms (often called FFLs). The core idea, according to the bill's findings, is to modernize outdated laws, increase accountability for dealers whose practices might contribute to illegal gun trafficking, and give law enforcement better tools. This involves everything from mandatory security plans and electronic record-keeping to more frequent inspections and higher penalties for violations.
Beefing Up Security and Tracking Inventory
First off, the bill targets the physical security of gun shops and the tracking of their firearms. Anyone applying for or renewing a firearms license would need to submit a detailed security plan for approval by the Attorney General, covering things like secure gun storage and security systems (Sec 5). Existing dealers would get a year to comply. Think of it like stricter safety protocols for handling sensitive goods.
On top of that, dealers would have to treat firearms moved from a personal collection into store inventory like any other business firearm (Sec 6). They'd also be required to conduct a physical inventory check every quarter – not just annually – and immediately report any lost, stolen, or unaccounted-for guns to the authorities. The Attorney General gets the power to request these inventory records anytime.
Dragging Gun Records into the Digital Age
The days of purely paper records could be numbered. This bill mandates that the ATF's National Tracing Center establish searchable electronic databases for all firearm transaction records within three years (Sec 7). Dealers would still keep records on-site but could submit forms electronically. The goal is faster tracing of crime guns. However, the bill specifies these databases can't be searched by personal info without a warrant. Dealers would also need to install video surveillance covering sale areas and keep footage for 90 days. Penalties for knowingly breaking record-keeping rules get steeper, jumping from a maximum of 1 year to 5 years in prison.
More Oversight, More Checks
The proposal significantly ramps up oversight. It mandates annual inspections for "high-risk" dealers – defined by factors like having guns traced to crimes shortly after sale or past violations – and inspections at least every five years for all others (Sec 11). If a violation is found, a re-inspection must happen within 180 days. The bill also authorizes hiring 650 new ATF industry investigators to handle this workload (Sec 26).
Furthermore, dealers would need to run NICS background checks on all employees who might handle firearms, not just the buyers (Sec 21). The Attorney General also gets broader authority to deny or revoke licenses based on public safety risks or non-compliance (Sec 12), and some previous restrictions on denying licenses (like lack of business activity) are removed.
Closing Loopholes and Increasing Stakes
Several sections aim to close perceived gaps. Reporting requirements for multiple gun sales within five days would expand beyond handguns to include semi-automatic rifles and shotguns (Sec 9). If a background check is delayed beyond the allowed time and the sale proceeds (a "default transfer"), the dealer must notify the Attorney General by the end of that business day (Sec 8).
The bill also introduces regulations for online "facilitators" – essentially marketplaces hosting gun ads – requiring them to get licensed, pay a $1,000 annual fee, and ensure sales go through a licensed dealer (Sec 20). Penalties for failing to conduct required background checks increase significantly, starting with a $20,000 civil fine for a first offense (Sec 18). Licensing fees are also set to increase across the board (Sec 13), and the legal standard for some violations shifts from "willfully" to "knowingly," potentially making it easier to penalize infractions (Sec 22). Finally, dealers will be required to provide ATF-developed materials on suicide prevention, safe storage, and straw purchasing to buyers (Sec 10).