New Gun Bill Triples ATF Inspections and Raises Fines to $10,000 for Licensed Dealers

The aptly named Prevent Illegal Gun Sales Act is a major regulatory overhaul aimed squarely at federally licensed firearms dealers (FFLs). In short, it significantly increases the government’s oversight, dramatically stiffens penalties for rule-breaking, and makes it easier for federal authorities to prove violations. If you’re a licensed gun dealer, this bill changes almost everything about how the government interacts with your business. If you’re a regular citizen, this bill aims to plug regulatory holes that can lead to illegal gun trafficking.

More Eyes, More Often: The Compliance Crank

Right now, the ATF is generally limited to one compliance inspection per FFL each year. This bill changes that rule, allowing federal agents to conduct up to three compliance inspections annually (Sec. 2). For a dealer, this means tripling the time spent preparing for and undergoing federal checks on inventory and records. To handle this new workload, the bill authorizes the ATF Director to hire at least 80 additional employees specifically for these inspections (Sec. 7). This isn't just a threat on paper; they’re hiring the staff to make the new inspection schedule a reality.

The Penalty Box Gets a Lot Tougher

This bill doesn’t just increase oversight; it increases consequences. First, the maximum jail time for an FFL who violates certain licensing rules is jumping from one year to five years (Sec. 3). That’s a massive increase in criminal liability for licensing mistakes. Second, the bill creates a serious new penalty for bad paperwork: if a dealer’s recordkeeping failure aids in gun trafficking, they could face up to 10 years in prison (Sec. 4). This means sloppy inventory management, if it helps a prohibited person get a gun, is now a major felony.

The $10,000 Fine and the AG’s New Power

Perhaps the biggest change is the new authority granted to the Attorney General (AG) in Section 5. The AG can now suspend or revoke a dealer’s license, or hit them with a civil penalty of up to $10,000 per violation, for any federal gun law violation or related regulation. This is a huge shift. A single, minor violation could now carry a five-figure fine, giving the AG significant leverage over every licensed dealer. The AG also gains the power to demand a full physical inventory and records check if ten or more crime guns are traced back to that dealer (Sec. 8).

Lowering the Bar for Liability: The 'Willfully' Problem

Here’s the detail that analysts pay close attention to: Section 10 removes the word “willfully” from several key sections of the law related to FFL violations. In legal terms, “willfully” means the government has to prove you knew you were breaking the law or acted with specific intent. By removing it, the standard of proof drops significantly. Now, prosecutors may only need to prove that the violation occurred, regardless of whether the dealer intended to break the rule. For FFLs, this means an honest, administrative mistake—a misplaced signature, a late form—could potentially lead to criminal liability or that new $10,000 fine, making the regulatory tightrope walk much more dangerous.

New Gatekeeping for New Dealers

Finally, Section 9 grants the Attorney General new power to deny a license application even if the applicant meets all basic requirements. The AG can now deny a license if they determine that issuing it “would create a danger to public safety.” This is a broad, subjective standard. While the intent is clearly to prevent licenses from falling into the wrong hands, future applicants should know that the government’s decision will now be based not only on compliance with the checklist but also on the AG’s assessment of potential public safety risk.