New Gun Resales Act Hikes Dealer Fees, Mandates Surveillance, and Targets 'High-Risk' Dealers

Alright, let's talk about the new 'Prevent Illegal Gun Resales Act.' This bill is looking to seriously shake up how firearms are sold and tracked, aiming to clamp down on illegal trafficking. If you're a licensed firearms dealer, a manufacturer, an importer, or even a collector, get ready for some significant changes, especially to your wallet and your daily operations.

Your Wallet Just Got Lighter: Fee Hikes for Everyone

First up, the money. This bill is jacking up federal firearms licensing fees across the board. For manufacturers and importers, that new license application fee jumps from $1,000 to $2,000, and annual renewals are soaring from a mere $50 to a hefty $2,000. Dealers, including pawnbrokers, are looking at the same jump: $1,000 to $2,000 for a new license and $50 to $2,000 for annual renewal. Even ammunition manufacturers are seeing their new license fee go from $10 to $1,000. And collectors of curios and relics? Your three-year renewal goes from $200 to $400. Basically, if you're in the business of firearms or collecting them, the cost of entry and staying in the game is about to get a lot steeper, starting 180 days after this thing passes (Section 2).

New Rules, New Headaches: Dealers on the Hook

Beyond the fees, dealers are facing a whole new world of compliance. The bill requires you to certify that you'll make secure gun storage devices available at your business. But it goes way beyond that. You'll have to submit detailed descriptions of your business practices, policies, and procedures to the Attorney General, who then has to sign off that they're good enough to prevent firearms from being diverted to illegal markets or falling into the hands of a "straw purchaser." Think about the paperwork and the potential overhauls to your current setup (Section 3).

Keeping Tabs: More Records, Faster Responses, and Surveillance

This bill is all about tightening the leash on how firearms move. Dealers will now have to keep records of multiple handgun sales (ATF Form 3310.4) for 180 days instead of destroying them in 20. If the Attorney General needs information for a criminal investigation, you've got to respond within 24 hours – and they'll set up a system to verify who's calling. You'll also need to keep records of all crime gun trace requests for firearms you've sold in the last three years and review them before any new transfer. If you've sold a gun to someone who was previously traced for a crime gun, you have to report it to law enforcement by the close of business that day. And if five or more guns from your shop are lost, stolen, or used in a crime within a year, you'll have to update your business practices. Oh, and you'll need to keep physical records of all your security costs, like surveillance systems, for inspection (Section 4).

The 'High-Risk' Label: What It Means for Dealers

One of the biggest shifts is the creation of a "high-risk dealer" designation. The Attorney General can slap this label on you if you've received a warning letter, had a warning conference, or if two or more guns from your shop were used in a crime within 36 months of their sale in the last year. If you're deemed high-risk, prepare for some serious changes: mandatory electronic record-keeping, providing the National Tracing Center with electronic access to all your records, and making video and audio recordings of all firearms transactions, which you'll have to keep for 360 days (or longer if a transaction is traced). Plus, the Attorney General can inspect your premises every two years without needing a warrant or reasonable cause. Getting off this list means proving you've made permanent changes and passing two clean inspections six months apart (Section 7).

Stiffer Penalties and a Lower Bar for Violations

Finally, the bill is creating new federal offenses for firearms trafficking. If you knowingly or have reasonable cause to believe you're transferring two or more firearms to someone who would use them in a felony, or receiving them under similar circumstances, you could face up to 15 years in prison. For dealers, transferring firearms to another dealer who has a history of crime gun traces or compliance issues is also illegal. The penalties for dealers can be steep, including forfeiture of profits and civil penalties of up to $10,000 per firearm, or even $50,000 if a gun is later used in a crime. What's more, the mental state required for conviction on certain violations for licensees is being lowered from "willfully" to "knowingly" (Section 5, Section 6). This means it might be easier for the feds to prove you broke the rules, even if you weren't actively trying to. All these changes are set to kick in 180 days after the bill becomes law, so dealers, it's time to start looking at your operations and your books.