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119-s-1294119th CongressWALLET

Federal Firearm Licensee Act

Sponsored By: Senator Durbin, Richard J. [D-IL]

Introduced

Summary

Modernize federal oversight of firearm dealers and online marketplaces. This bill would require Attorney General‑prescribed security plans, expand electronic recordkeeping and tracing, create a federal license and rules for marketplace facilitators, and boost inspections and penalties.

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  • Licensed dealers and manufacturers would must submit AG‑approved security plans, certify compliance annually, reconcile business inventory, and face civil penalties up to $5,000 for noncompliance. High‑risk dealers would be inspected yearly and others at least once every 5 years.
  • Online marketplace operators defined as "facilitators" would need a federal facilitator license with a $1,000 annual fee, keep sale and transfer records, and face criminal penalties for improper facilitation with enhanced terms up to 10 years when tied to certain crimes.
  • The bill would authorize electronic, searchable firearm records and stronger tracing controls with warrant protections, authorize the Attorney General to hire 650 industry operation investigators for ATF, and require implementation and annual enforcement reports to Congress.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 0 benefits, 5 costs, 1 mixed.

Stronger inspections and penalties

If enacted, the Attorney General would inspect high‑risk dealers at least once a year and must follow up within 180 days after violations. The ATF could hire 650 industry investigators to support inspections. The AG could suspend or revoke licenses and would only grant a stay for good cause. Dealers who incur a Federal disability or are notified of suspension could not move business inventory into personal collections or transfer inventory to non-licensees unless the AG grants a written waiver. The bill would also remove a statutory relief option for dealers indicted for serious crimes and repeal riders that limited ATF denial authority. Missing required background checks would trigger a $20,000 civil fine and immediate suspension or revocation, and criminal penalties for false records would increase.

Electronic records and national tracing

If enacted, the ATF National Tracing Center would build searchable electronic databases of licensee records within 3 years. Licensees would be encouraged to convert to electronic records and may give remote access to the NTC. The Attorney General could index and integrate state databases with permission, but could not remotely search dealer records without a warrant. The bill would also require NICS to include N-DEx searches and would require keeping certain background-check records for 90 business days. Dealers would need to retain sales and disposition records at the business and keep forms about multiple sales or crime-related firearms for at least 180 days.

Higher federal license fees

If enacted, many federal firearm license and related fees would increase. Examples listed in the bill include several $1,000 fees rising to $2,000, $50 fees to $100, and $10 fees (including collector fees) to $20. Other examples include $200 to $400 and $90 to $180 increases. The fee increases apply to importers, manufacturers, dealers, ammunition makers, and collectors and take effect upon enactment.

New rules for online marketplaces

If enacted, operators who facilitate firearm sales on commercial marketplaces would need a federal facilitator license and pay a $1,000 annual fee. Licensed facilitators would have to require that transfers finish through a licensed importer, manufacturer, or dealer who takes possession. Facilitators must keep records of offers and may require sellers to name the dealer before listing. Transferring a firearm through a marketplace without the required dealer taking possession would be a crime, punishable by fines or up to 1 year in jail, and up to 10 years when the transfer breaks gun-law bans or the gun is used in violent or drug crimes. The bill also adds new statutory definitions for "facilitator" and related terms.

Stricter premises security rules

If enacted, applicants for Federal firearms licenses would have to submit a written security plan and certify they will follow it. The Attorney General would approve a plan before renewal and may inspect premises after a dealer reports a loss. The Attorney General would write rules requiring safes, locked cabinets, alarms, cameras, and other hardening. Licensed importers, manufacturers, and dealers would have to certify yearly that their premises meet the rules and reconcile inventory. Civil penalties up to $5,000 and possible license suspension could apply for noncompliance.

Employee checks and age requirements

If enacted, dealers could not let an employee possess firearms at business premises unless the employee meets the local minimum age to possess firearms and a NICS check shows no disqualifying information. The Attorney General would also have to contact NICS for applicants and any listed employees before issuing or renewing a license and receive similar clearance. These rules would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Durbin, Richard J. [D-IL]

IL • D

Cosponsors

  • Sen. Whitehouse, Sheldon [D-RI]

    RI • D

    Sponsored 4/3/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 4/3/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 4/3/2025

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 4/3/2025

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 4/3/2025

  • Sen. Welch, Peter [D-VT]

    VT • D

    Sponsored 4/3/2025

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 4/3/2025

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 4/3/2025

  • Sen. Schatz, Brian [D-HI]

    HI • D

    Sponsored 7/22/2025

  • Sen. Kim, Andy [D-NJ]

    NJ • D

    Sponsored 11/10/2025

  • Sen. Alsobrooks, Angela D. [D-MD]

    MD • D

    Sponsored 6/16/2026

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 6/17/2026

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 6/17/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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