Federal Firearm Licensee Act
Sponsors
Legislative Progress
In CommitteeMr. Durbin (for himself, Mr. Whitehouse, Mr. Blumenthal, Ms. Hirono, …
Summary
What This Bill Does
The Federal Firearm Licensee Act is a comprehensive overhaul of how the federal government regulates licensed firearms dealers. It repeals the Tiahrt Amendments that have limited ATF enforcement powers for nearly two decades, creates new electronic tracking databases, mandates physical security requirements at gun stores, and establishes stronger penalties for violations. The bill aims to reduce firearms theft from dealers and improve the ability to trace crime guns.
Who Benefits and How
Law enforcement agencies gain significant new tools: the ATF will receive authority to hire 650 additional investigators, can now conduct annual inspections of high-risk dealers, and will have access to searchable electronic databases for crime gun tracing. The National Tracing Center will be able to maintain electronic records and conduct more effective investigations.
Security equipment manufacturers (safes, alarm systems, video surveillance) stand to benefit from new requirements that gun dealers install locked metal cabinets, fireproof safes, security systems, and video monitoring equipment.
Licensed firearms dealers who follow the law may benefit from a more level playing field, as competitors engaging in illegal practices face stronger enforcement.
Who Bears the Burden and How
Licensed firearms dealers face the most significant new requirements: mandatory security plans with license applications, quarterly physical inventory checks, annual certification of compliance, installation of video surveillance systems, 90-day retention of surveillance footage, and background checks on all employees. Licensing fees will double (from $50 to $100 for renewals, $1,000 to $2,000 for initial applications). Dealers who violate regulations face escalating penalties up to license revocation.
Online firearms marketplace platforms (like GunBroker and Armslist) will need to obtain federal licenses at $1,000/year, ensure all transactions go through licensed dealers, and maintain detailed records. Violations could result in criminal penalties.
Gun shop employees must now pass background checks before being allowed to handle firearms at their workplace.
Taxpayers bear the cost of expanding ATF with 650 new investigators and establishing new electronic database systems.
Key Provisions
- Repeals the Tiahrt Amendments, allowing ATF to require inventory audits and retain background check records for 90 days instead of 24 hours
- Mandates electronic, searchable firearms databases at the National Tracing Center within 3 years
- Requires annual ATF inspections of "high-risk" dealers and at least once every 5 years for all others
- Doubles federal firearms licensing fees across the board
- Lowers the legal standard for violations from "willfully" to "knowingly," making it easier to penalize dealers
- Creates new licensing requirements for online firearms marketplace platforms
- Expands multiple-sale reporting to include semiautomatic rifles and high-capacity magazine-compatible weapons
- Establishes escalating civil penalties: warning, fine (up to $20,000), license suspension, then revocation
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Strengthens federal regulation and oversight of licensed firearm dealers by enhancing security requirements, expanding record-keeping and reporting mandates, increasing inspection authority, creating electronic databases, doubling licensing fees, and providing new enforcement mechanisms including license suspension powers.
Policy Domains
Legislative Strategy
"Comprehensive overhaul of federal firearm dealer regulation by repealing Tiahrt Amendments, creating electronic tracking databases, imposing physical security requirements, expanding inspection authority, and increasing penalties for non-compliance"
Likely Beneficiaries
- Law enforcement agencies (ATF, state and local police)
- Public safety advocates
- Gun violence prevention organizations
- Communities affected by gun violence
Likely Burden Bearers
- Federal firearms licensees (dealers, manufacturers, importers)
- Online firearm marketplace platforms (facilitators)
- Employees of gun shops
- The Bureau of Alcohol, Tobacco, Firearms, and Explosives (increased workload)
- Taxpayers (funding 650 new ATF investigators)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_licensee"
- → Federal firearms licensee (dealer, manufacturer, importer, collector, or facilitator)
- "the_attorney_general"
- → United States Attorney General
- "the_national_tracing_center"
- → National Tracing Center of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)
Key Definitions
Terms defined in this bill
The part of a handgun, or a variant thereof, that provides housing or a structure for the primary energized component designed to hold back the hammer, striker, bolt, or similar component prior to initiation of the firing sequence
The part of a rifle, shotgun, or projectile weapon other than a handgun that provides housing or a structure for the primary component designed to block or seal the breech prior to initiation of the firing sequence
With respect to transactions, fewer than 5 transactions in a 12-month period
Any person engaged in the business of hosting a commercial marketplace in which offers for firearm sales, purchases, or other transfers are allowed to be made, with exception for platforms that prohibit such transactions in their terms of service and make good faith enforcement efforts through quarterly audits
A licensed dealer whom the Attorney General determines to be high-risk based on considerations including: (1) reporting a lost or stolen firearm in the preceding 5 years, (2) receiving a violation report, warning letter, or warning conference in the preceding 10 years, or (3) multiple firearms traced to crimes within 3 years after sale in the preceding year
Any firearm obtained only for the personal use of an individual and not for the purpose of selling or trading, except that a firearm obtained through inheritance shall not be considered part of a personal collection until the firearm has been possessed for 1 year
Any repeating shotgun that utilizes a portion of the energy of a firing shell to extract the fired shell casing and chamber the next round, and requires a separate pull of the trigger to fire each shell
A firearm required by law to be recorded in the acquisition and disposition logs of any firearms business of the person
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology