RIFLE Act Overhauls ATF Rules for Gun Dealers: New Standards, Lighter Penalties, and More Leeway

The "Reining In Federal Licensing Enforcement Act of 2025," or RIFLE Act, is a significant overhaul of how the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) regulates gun dealers (Federal Firearms Licensees, or FFLs). The core purpose is to ease penalties, create stricter due process for enforcement, and limit how purchaser information is used. It also provides ways for previously penalized dealers to get their licenses back and requires the ATF to publish clearer standards for inspections.

Shifting the Burden: "Willful" Violations Redefined

One of the biggest changes is how the law defines a "willful" violation. Previously, things like receiving ATF documents or having experience in the business could be used as evidence of knowing the rules. The RIFLE Act throws that out. Now, to prove a violation was willful, the ATF needs to show the dealer knew about a specific legal duty, understood it, and deliberately ignored it (SEC. 4). This is a much higher bar, making it harder to penalize dealers for intentional bad acts.

For example, imagine a gun store owner repeatedly sells firearms without proper background checks, despite prior warnings. Under the old rules, those warnings could be strong evidence. Under RIFLE, the ATF would need to demonstrate, with clear and convincing evidence, that the owner specifically understood the background check requirement and intentionally chose to disregard it. This shift could make enforcement more challenging.

Due Process and Paperwork

The RIFLE Act introduces a graduated penalty system for FFLs (SEC 2). Unintentional violations get a warning and a chance to fix the problem. Even for willful violations, the ATF must first try to work with the dealer. Only if that fails can they suspend a license (up to 30 days for first-time offenders) or revoke it. The bill also tightens up timelines for enforcement, requiring action within three years of a violation (or discovery, if it was hidden).

There are new, extensive due process requirements: 60-days' notice before penalties, the right to a hearing, and strict rules for evidence and burden of proof (all on the ATF). Even if a dealer loses a license, they can appeal to a U.S. district court for a new trial, with all evidence considered. The court cannot revoke a license unless it finds the ATF gave proper notice and a chance to comply.

Second Chances and Sunset Clauses

The bill offers several avenues for reconsideration:

• Denied Applications: If you were denied an FFL before this law, and the denial was based on a "willfulness" finding, you can reapply under the new, stricter definition (SEC. 5).
• Revoked/Suspended Licenses: If your license was revoked or suspended while certain ATF Orders (5370.1E, 5370.1F, or 5370.1G) were in effect, those actions are reversed unless the ATF can prove you're a public safety threat. You can even get reimbursed for legal fees (SEC. 5). A website, gunrightsrestored.gov, will be set up for this.
• New Owners: If you take over a gun business, you get a clean slate. The ATF must notify you of any past violations by the previous owner, and you can't be automatically penalized for them (SEC. 9).
• Inventory Liquidation: If a license expires, is surrendered or revoked, the FFL has 90 days (extendable) to sell off their inventory. (SEC. 8).

Limits on Purchaser Data and Recordkeeping Changes

The RIFLE Act restricts how information on legal gun purchasers can be shared (SEC. 7). Agencies receiving this data must certify they won't share it beyond law enforcement or courts. It also modifies the criminal penalties for record-keeping violations, changing the language to require "materially false" entries or the failure to "retain custody" of records, rather than simply making "any false entry" or failing to "properly maintain" them (SEC. 10). This could make it harder to prosecute minor paperwork errors.

Transparency and Accountability?

The bill mandates the ATF to create written standards for inspections, investigations, and enforcement actions (SEC. 6). These standards must include "mitigating factors" to consider before penalizing a dealer. They also must be publicly available. While this could increase transparency, the requirement to consider mitigating factors could also limit the ATF's discretion.

The RIFLE Act represents a significant shift in firearms regulation, favoring gun dealers and potentially making enforcement more difficult. While proponents would argue it protects due process and prevents overreach, critics might worry it could hinder efforts to curb illegal gun sales and trafficking.