New Bill Proposes Major Overhaul for Gun Dealers: Mandates Security Plans, Digital Records, and Stricter Enforcement

The Federal Firearm Licensee Act aims to significantly update the rules governing the business of selling firearms in the U.S. It introduces a range of new requirements for federally licensed firearm dealers (FFLs), focusing on preventing theft, improving record-keeping, enhancing background checks, and increasing accountability through stricter enforcement and higher penalties. The bill also seeks to regulate online firearm marketplaces and repeal long-standing restrictions on firearm trace data.

Tightening Up Shop: Security and Inventory Mandates

One of the core changes involves physical security and inventory control. Under Section 5, anyone applying for or renewing a dealer license must submit a detailed security plan outlining measures like locked cabinets, safes, security systems, video monitoring, and potentially physical barriers like bollards. Existing dealers have a year to submit their plans. Furthermore, Section 6 mandates quarterly physical inventory checks, requiring dealers to reconcile their stock and report any lost, stolen, or unaccounted-for firearms promptly to the ATF and local law enforcement. This means a local gun shop owner, for example, would need to invest in potentially costly security upgrades and implement a rigorous quarterly counting process, facing penalties for non-compliance.

Bringing Records into the Digital Age

Record-keeping sees a major shift towards modernization. Section 7 encourages and facilitates electronic record-keeping, replacing the current paper-based system for many dealers. Within three years, the ATF is directed to establish searchable electronic databases of these records, accessible remotely by the National Tracing Center for criminal investigations (though warrants are required to access dealer records or personally identifiable information). This section also mandates video surveillance covering points of sale, with recordings kept for 90 days. Critically, Section 25 repeals parts of the Tiahrt Amendments, removing restrictions that previously limited the ATF's ability to consolidate records and use firearm trace data analysis, potentially giving law enforcement more tools to track crime guns.

Background Checks and Online Sales Oversight

Background check procedures and oversight are strengthened in several ways. Section 21 requires background checks not just for license applicants but for all employees who might handle firearms. Dealers must also notify the ATF if a firearm transfer proceeds because a background check wasn't completed within the allowed timeframe (a "default proceed" transfer, Section 8). Section 9 expands reporting requirements for multiple sales to include certain semi-automatic rifles and shotguns and mandates NICS check records be kept for 90 days, up from 24 hours (Sec 25). Penalties for knowingly transferring a firearm without a background check are significantly increased (Sec 18). Additionally, the bill defines and regulates "facilitators" – entities hosting firearm marketplaces – requiring them to be licensed ($1,000/year) and ensure transactions are finalized through a licensed dealer (Sec 20), aiming to bring more online-facilitated sales under regulatory scrutiny.

Stepping Up Enforcement and Accountability

The legislation significantly ramps up ATF oversight and enforcement capabilities. Section 11 mandates more frequent inspections: annually for "high-risk" dealers (defined by factors like past violations or crime gun traces) and at least every five years for others. Licensing standards become stricter (Sec 12), considering public safety risks and compliance likelihood, with the Attorney General gaining authority to suspend licenses. Fees for licenses are doubled (Sec 13). The legal standard for some violations is lowered from "willfully" to "knowingly" (Sec 22), potentially making it easier to penalize dealers. Section 23 introduces a tiered system of civil penalties for violations, ranging from written warnings to license revocation and fines up to $20,000, with provisions for immediate license suspension if a violation poses an imminent public safety risk. To support this, Section 26 authorizes hiring 650 new ATF industry operation investigators.