Federal Firearm Licensee Act
Sponsored By: Representative Rep. Kelly, Robin L. [D-IL-2]
Introduced
Summary
This bill would modernize federal firearm licensee regulation. It focuses on strengthening premises security, expanding centralized electronic recordkeeping and tracing, licensing online marketplaces, and increasing ATF inspections and penalties.
Show full summary
- Licensed dealers and employees would face stricter on-site rules. Dealers would need an approved premises security plan, publish quarterly physical inventories, transfer personal-collection firearms into business inventory, report missing guns, and retain surveillance of certain sales for at least 90 days. Annual compliance certifications increase and failures can bring civil penalties up to $5,000 and criminal exposure with prison terms up to five years or up to ten years for aggravated offenses.
- Online marketplaces ("facilitators") would be newly regulated and charged an annual $1,000 fee. Facilitators must route transfers through licensed dealers who take possession, keep specific transaction records, and face enhanced criminal liability up to 10 years if required takeovers or legal protections fail.
- Enforcement, data, and inspections would expand. The National Tracing Center would build centralized electronic databases within 3 years and the Attorney General could hire 650 industry operation investigators. The bill repeals prior limits on trace data, requires annual inspections for high‑risk dealers and five‑year inspections for others, and mandates public reporting on inspections and enforcement outcomes.
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 1 benefits, 5 costs, 2 mixed.
Tougher penalties and license actions for dealers
If enacted, penalties would escalate from warnings to civil fines of $2,500–$20,000 per violation, with $20,000 for gross negligence. The Attorney General could suspend or revoke licenses, including immediately if a dealer poses an imminent risk to public safety. The bill would tighten legal standards, raise some record‑keeping crimes to up to 5 years (up to 10 years in related cases), and set a $20,000 penalty plus immediate suspension or revocation for repeated knowing failures to run background checks. After a disability or after notice of suspension, revocation, or renewal denial, a licensee could not move inventory to a personal collection or to unlicensed persons; knowingly violating could bring up to 1 year in jail. It would also remove an indictment relief option and allow civil suits to proceed even if a related criminal case ends.
National gun records and tracing modernization
If enacted, within 3 years the National Tracing Center would build searchable electronic databases of required firearms records. They could be used only for criminal investigations, and searches by a person’s identifying info would need a warrant. Dealers would see only their own records, and the Attorney General could not remotely search dealer records without a warrant. The bill would remove past limits on ATF’s use of trace data and on centralizing records. DOJ would also flag when the same unlicensed person shows multiple gun transfers within five business days and send same‑day reports to law enforcement.
More frequent risk-based dealer inspections
If enacted, high‑risk dealers would be inspected every year. Other dealers would be inspected at least once every five years. The Attorney General could assign oversight with in‑store checks, records reviews, sales tests, and training until a dealer shows three straight years of compliance. Follow‑up inspections would be required within 180 days after a violation. DOJ would publish an inspection report to Congress within 2 years and then yearly with counts and enforcement details.
New licenses and rules for gun marketplaces
If enacted, operators of sites that allow gun offers would need a facilitator license and pay $1,000 each year. They would have to require a licensed dealer to take possession for each transfer and keep offer records, including seller, dealer license number, model, and serial number. Knowingly transferring to an unlicensed person without a dealer could bring fines and up to 1 year in jail, or up to 10 years in serious cases. Dealers handling marketplace sales would have to treat those guns like their own inventory for compliance. The bill defines who is a facilitator and provides a narrow exception when a transaction breaks site rules and the platform does quarterly audits.
Stronger store security and records for dealers
If enacted, gun dealers would need a written security plan and to follow new rules that may require safes, alarms, gates, and bollards. Dealers would do quarterly physical inventory checks and report any gun that is lost, stolen, or unaccounted for. Stores that sell to the public would keep video of sales areas, keep recordings at least 90 days, and post signs. Dealers would keep some background‑check records at least 90 business days and crime‑gun forms at least 180 days; one year after enactment, sales records would have to stay at the business and be ready for inspection until the business closes. When a theft is reported, the Attorney General would inspect the store’s security and send violations and fixes. Failing required certifications could lead to a fine up to $5,000 and possible license suspension.
Tighter background checks and transfer rules for dealers
If enacted, for certain default transfers the dealer would have to notify the Attorney General by the close of business that same day. Background checks would have to include an N‑DEx search, and the Attorney General could not issue or renew a license unless NICS confirms no legal bar for the applicant and trusted employees. Dealers could not let an employee handle guns at the store unless local age rules are met and NICS has cleared them. The bill would remove a phrase that had limited risk in some out‑of‑state long‑gun sales, raising legal risk if sellers ignore other States’ laws. It would also strike a temporary Brady subsection to align background‑check rules.
Safety notices and handouts at gun stores
If enacted, dealers would post any State and local warnings inside their stores. The Attorney General would provide handouts on suicide prevention, safe storage, and straw purchasing. Dealers would give these materials to unlicensed buyers when a firearm is transferred.
Justice Department deadlines and progress report
If enacted, the Attorney General would have to issue all rules needed to carry out the bill within 2 years. Within 2 years, DOJ would also report to Congress and post online the remaining steps and any extra resources needed for regular inspections and timely enforcement.
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Sponsors & CoSponsors
Sponsor
Rep. Kelly, Robin L. [D-IL-2]
IL • D
Cosponsors
Rep. Amo, Gabe [D-RI-1]
RI • D
Sponsored 4/3/2025
Ansari
AZ • D
Sponsored 4/3/2025
Rep. Auchincloss, Jake [D-MA-4]
MA • D
Sponsored 4/3/2025
Rep. Barragan, Nanette Diaz [D-CA-44]
CA • D
Sponsored 4/3/2025
Rep. Beatty, Joyce [D-OH-3]
OH • D
Sponsored 4/3/2025
Bell
MO • D
Sponsored 4/3/2025
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 4/3/2025
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 4/3/2025
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 4/3/2025
Rep. Carter, Troy [D-LA-2]
LA • D
Sponsored 4/3/2025
Rep. Casten, Sean [D-IL-6]
IL • D
Sponsored 4/3/2025
Rep. Cherfilus-McCormick, Sheila [D-FL-20]
FL • D
Sponsored 4/3/2025
Rep. Clarke, Yvette D. [D-NY-9]
NY • D
Sponsored 4/3/2025
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 4/3/2025
Rep. Connolly, Gerald E. [D-VA-11]
VA • D
Sponsored 4/3/2025
Rep. Costa, Jim [D-CA-21]
CA • D
Sponsored 4/3/2025
Rep. Crockett, Jasmine [D-TX-30]
TX • D
Sponsored 4/3/2025
Rep. Davis, Danny K. [D-IL-7]
IL • D
Sponsored 4/3/2025
Rep. DeGette, Diana [D-CO-1]
CO • D
Sponsored 4/3/2025
Rep. Dingell, Debbie [D-MI-6]
MI • D
Sponsored 4/3/2025
Rep. Frost, Maxwell [D-FL-10]
FL • D
Sponsored 4/3/2025
Rep. Garcia, Sylvia R. [D-TX-29]
TX • D
Sponsored 4/3/2025
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 4/3/2025
Rep. Johnson, Henry C. "Hank," Jr. [D-GA-4]
GA • D
Sponsored 4/3/2025
Rep. Kennedy, Timothy M. [D-NY-26]
NY • D
Sponsored 4/3/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 4/3/2025
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 4/3/2025
Rep. Lynch, Stephen F. [D-MA-8]
MA • D
Sponsored 4/3/2025
McBride
DE • D
Sponsored 4/3/2025
Rep. McCollum, Betty [D-MN-4]
MN • D
Sponsored 4/3/2025
Rep. McGarvey, Morgan [D-KY-3]
KY • D
Sponsored 4/3/2025
Rep. McIver, LaMonica [D-NJ-10]
NJ • D
Sponsored 4/3/2025
Rep. Moulton, Seth [D-MA-6]
MA • D
Sponsored 4/3/2025
Rep. Mrvan, Frank J. [D-IN-1]
IN • D
Sponsored 4/3/2025
Rep. Mullin, Kevin [D-CA-15]
CA • D
Sponsored 4/3/2025
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 4/3/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 4/3/2025
Peters
CA • D
Sponsored 4/3/2025
Rep. Quigley, Mike [D-IL-5]
IL • D
Sponsored 4/3/2025
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 4/3/2025
Rep. Scanlon, Mary Gay [D-PA-5]
PA • D
Sponsored 4/3/2025
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Sponsored 4/3/2025
Rep. Schneider, Bradley Scott [D-IL-10]
IL • D
Sponsored 4/3/2025
Rep. Stansbury, Melanie Ann [D-NM-1]
NM • D
Sponsored 4/3/2025
Rep. Subramanyam, Suhas [D-VA-10]
VA • D
Sponsored 4/3/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 4/3/2025
Rep. Titus, Dina [D-NV-1]
NV • D
Sponsored 4/3/2025
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 4/3/2025
Rep. Torres, Ritchie [D-NY-15]
NY • D
Sponsored 4/3/2025
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 4/3/2025
Johnson (TX)
TX • D
Sponsored 4/3/2025
Rep. Evans, Dwight [D-PA-3]
PA • D
Sponsored 4/3/2025
Rep. Scott, David [D-GA-13]
GA • D
Sponsored 4/3/2025
Rep. Ocasio-Cortez, Alexandria [D-NY-14]
NY • D
Sponsored 4/3/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 4/3/2025
Rep. Dean, Madeleine [D-PA-4]
PA • D
Sponsored 4/3/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 4/3/2025
Rep. Morelle, Joseph D. [D-NY-25]
NY • D
Sponsored 4/3/2025
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 4/3/2025
Fletcher
TX • D
Sponsored 4/29/2025
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 4/29/2025
Latimer
NY • D
Sponsored 4/29/2025
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 7/10/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 7/10/2025
Rep. Balint, Becca [D-VT-At Large]
VT • D
Sponsored 2/4/2026
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 3/25/2026
Roll Call Votes
No roll call votes available for this bill.
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