Federal Firearm Licensee Act

This bill updates how gun stores and other licensed sellers operate to reduce theft, trafficking, and illegal sales. It tightens security and record‑keeping, expands inspections, raises penalties for violations, and sets rules for online gun marketplaces. It also adds buyer safety information and improves how background checks and sale records are handled.

What it means day to day: gun shops would need stronger locks and cameras, regular inventory checks, and clearer records; buyers would see posted warnings and get safety materials; law enforcement would get better data to investigate crime guns; and online marketplaces that host gun listings would have to follow new rules that steer sales through licensed dealers.

Key points

• Who is affected: licensed gun dealers and their employees; importers and manufacturers; online marketplaces that host gun-sale offers; gun buyers; and law enforcement.
• Store security and records: dealers must secure premises (safes, alarms, video monitoring, strong locks/bollards) and keep video of sales areas for at least 90 days. They must do quarterly inventory checks, report missing guns, and certify each year they’re following the rules.
• Background checks and data: background check records must be kept at least 90 business days; the background check system can search an additional national database; and if a sale proceeds by default due to a delayed check, the dealer must notify the Justice Department that same day.
• Multiple sales reporting: expands reporting to include certain semiautomatic rifles or shotguns and guns that can use large‑capacity magazines, and adds reports of multiple sales to non‑licensees.
• Inspections: high‑risk dealers are inspected yearly; all others at least once every five years. If a dealer reports a theft, the government conducts a security inspection and provides fixes.
• Enforcement and penalties: clearer power to deny, suspend, or revoke licenses that pose a danger; tiered penalties that escalate to suspension or revocation; higher penalties for record violations; civil fines for unlicensed dealing; and immediate suspension if a violation creates an imminent public‑safety risk. It also shifts some legal standards from “willful” to “knowing,” making it easier to hold violators accountable.
• Online marketplaces: creates a new license for “facilitators” (platforms that host gun‑sale offers). Sales must be completed through a licensed dealer, with basic record‑keeping and penalties if that step is skipped.
• Buyer information: dealers must post required warnings and give buyers materials on suicide prevention, safe storage, and avoiding straw purchases.
• Other changes: encourages electronic records with limited law‑enforcement access and privacy protections; raises licensing fees; and rolls back some older limits that restricted sharing trace data and other oversight.
• When: the Justice Department must issue final rules within 2 years; existing dealers generally have 1 year after those rules to comply. Regular public reports on inspections begin within 2 years, then yearly.