Prevent Illegal Gun Sales Act

This bill aims to stop illegal gun sales by increasing oversight of licensed gun dealers. It would let federal agents do up to three routine compliance inspections instead of just one, and raise the maximum penalty for certain violations from 1 year to 5 years. The government could suspend or revoke a dealer’s license, or fine up to $10,000 per violation, for breaking the law or failing to offer secure gun storage devices, with exceptions for temporary shortages beyond the dealer’s control; it also allows penalties for transferring armor‑piercing ammunition and sets clear notice and appeal rights, including a quick hearing and court review .

If a dealer is convicted of a felony, their license would end on the date of conviction. The bill would let ATF hire at least 80 more staff to carry out the added inspections. The Attorney General could require a dealer to do a full physical inventory if the dealer unlawfully transferred a gun or if 10 or more crime guns are traced back to that dealer, and could deny new licenses if issuing one would endanger public safety, the applicant is unlikely to follow the law, or is otherwise not suitable. ATF would report to Congress every two years on how these changes are working, including resource needs and ideas to improve compliance and timely action against problem dealers.

Key points

• Who is affected: Licensed gun dealers; ATF; communities where guns are sold .
• What changes: More inspections; higher penalties; fines up to $10,000 per violation; stronger rules on secure storage devices; faster license loss after a felony conviction; inventory checks tied to crime‑gun traces; tougher standards for granting licenses; regular ATF reports .
• When: Would take effect if passed; ATF reports would be every two years.