Prevent Illegal Gun Resales Act
Sponsored By: Representative Rep. Frost, Maxwell [D-FL-10]
Introduced
Summary
This bill would tighten firearms licensing and penalties to cut down illegal gun resales by raising fees, expanding recordkeeping and surveillance, and creating a new trafficking offense.
Show full summary
- Licensed dealers would face much higher licensing fees, must certify secure storage and business practices when applying, and keep records longer including 180 days retention and mandatory audio and video surveillance.
- Enforcement would gain a new federal trafficking crime with criminal penalties up to 15 years and strengthened civil tools for licensees, including fines that can reach $50,000 per firearm used in a crime and license suspension or revocation.
- The ATF would get new programs and powers to target problem sellers, with prioritized inspections for dealers linked to traced crime guns and a "high-risk dealer" regime requiring electronic records, 360-day video retention, and biennial inspections until fixes are certified.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 2 costs, 2 mixed.
Higher federal dealer license fees
This bill would raise multiple federal firearms licensing and related fees paid by applicants and existing dealers. Examples in the bill include some fees going from $1,000 to $2,000, $50 to $2,000, $10 to $1,000, $200 to $400, $90 to $180, and one $10 fee to $20. Dealers and applicants would pay the higher fee each time the fee applies.
New rules for high-risk dealers
This bill would let the Attorney General designate some licensed gun dealers as "high risk" if they meet triggers like a warning letter, a warning conference in the last 36 months, or being the source of two or more firearms later used in a crime traced to retail sales. High-risk dealers could be required to use electronic acquisition/disposition records, let the National Tracing Center access records electronically, keep audio and video of all firearms transactions for 360 days, and face inspections at least every two years. Dealers could stop the extra oversight only after fixing problems, getting AG certification, and passing two clean inspections six months apart.
New dealer rules, training and inspections
This bill would impose new application, recordkeeping, reporting, and inspection duties on licensed dealers. Applicants would have to certify that secure storage or safety devices will be available and submit detailed business practices for AG approval. Licensed dealers would need to answer Attorney General information requests within 24 hours, keep certain forms and records for 180 days, keep trace-request records for the prior 3 years, review trace records before transfers, and report traced sales to unlicensed persons by the close of business the same day. The ATF would create a Gun Trafficking Awareness Program requiring training, electronic recordkeeping, and audio/video of sales with limited quarterly inspections for up to one year. The Attorney General and ATF would also issue best-practice materials and prioritize inspections of dealers with high trace counts. Sections 2–6 of the bill would take effect 180 days after enactment.
New trafficking crimes and dealer penalties
This bill would create a new federal "trafficking in firearms" crime for shipping, transferring, or receiving two or more guns when the sender knows the recipient would use them in a felony. Individuals could face fines and up to 15 years in prison. Dealers who violate the dealer-specific rule could face disgorgement, huge civil penalties per gun (the bill gives $10,000 per gun or $50,000 per gun used in a crime as examples, or an alternative tracing-cost formula), and license suspension or revocation. The bill would also create affirmative defenses for dealers who show they took reasonable steps to prevent diversion, require the U.S. Sentencing Commission to review guidelines, and require the Attorney General to report annually to Congress on enforcement and program outcomes. For some dealer-only violations the bill would replace the word "willfully" with "knowingly."
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Sponsors & CoSponsors
Sponsor
Rep. Frost, Maxwell [D-FL-10]
FL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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