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HR 4106119th CongressIn Committee

Prevent Illegal Gun Sales Act

Introduced: Jun 24, 2025
Civil Rights & Justice
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Prevent Illegal Gun Sales Act is a federal bill intended to increase accountability and oversight of licensed firearms dealers. It substantially tightens enforcement by expanding compliance inspections (from once to three times per year), raising penalties for violations, broadening the types of offenses that trigger serious penalties, and granting the Attorney General broader tools to suspend or revoke licenses, impose civil penalties, and require dealers to inventory or report their firearms under certain conditions. The bill also strengthens licensure standards, enhances ATF staffing, requires regular reporting to Congress, and includes procedural protections such as hearings and potential de novo judicial review. In short, it aims to curb illegal gun sales by increasing the frequency of inspections, the consequences for noncompliance, and the overall leverage the federal government has over licensed dealers. Key elements include more inspections, longer potential prison terms for certain dealer offenses, new or enhanced recordkeeping and inventory obligations, stricter license denial and revocation powers, and a plan to expand ATF capacity to enforce these provisions. The bill introduces changes to mens rea (mental state) requirements, potentially broadening liability for dealer violations, and it expands oversight and reporting to Congress.

Key Points

  • 1Increased compliance inspections: Licensed firearms dealers would be inspected up to three times per year (instead of once), boosting federal oversight of dealer activities.
  • 2Higher penalties for licensees: Some offenses would carry much longer maximum prison terms (up to 5 years for certain violations under 18 U.S.C. 924(a)(3), and up to 10 years for serious recordkeeping offenses related to gun trafficking). Fines and other penalties for license violations are also expanded.
  • 3Expanded license suspension/revocation and enforcement tools: The Attorney General could suspend or revoke licenses or impose civil penalties up to $10,000 per violation for violations of the Gun Control Act or failure to maintain secure storage/safety devices, with certain exceptions. The AG also could suspend or revoke licenses for transfers of armor-piercing ammunition.
  • 4Inventory and risk-based triggers: The AG may require a licensed dealer to conduct a physical inventory and provide detailed inventory records if the dealer was convicted of unlawfully transferring a firearm or if 10 or more crime guns traced to the dealer are identified.
  • 5Stricter licensure standards and enforcement process: The AG can deny licenses if issuing would pose a danger to public safety, the applicant is unlikely to comply with the law, or the applicant is otherwise not suitable. The bill also clarifies and expands regulatory processes, including hearings and potential de novo judicial review.
  • 6Liability standards and regulatory flexibility: The bill removes certain “willfully” mental-state requirements in liability sections and broadens regulatory flexibility, potentially increasing dealer liability for noncompliant actions.
  • 7Additional resources and oversight: The ATF would be empowered to hire at least 80 additional personnel to carry out increased inspections, and the Director of ATF would report biennially to Congress on implementation, resource needs, and recommendations for ensuring dealer compliance and timely action against noncompliant dealers.
  • 8Enhanced reporting: Biennial reports to Congress would cover resources needed and recommendations to improve compliance and timely enforcement.
  • 9Administrative and procedural safeguards: The bill sets out hearing rights, notice requirements, and opportunities for de novo judicial review if the government denies license applications, suspends or revokes licenses, or imposes penalties.

Impact Areas

Primary group/area affected: Licensed firearms dealers (including dealers, importers, manufacturers, and collectors) and the ATF. Dealers would face more frequent inspections, tighter storage/security obligations, stricter licensure standards, higher penalties, mandatory inventories in certain cases, and potential license suspension/revocation.Secondary group/area affected: Gun owners and buyers who rely on licensed dealers for transfers may experience changes in compliance processes and potential impacts on firearm availability, transfers, or background checks due to heightened oversight and possible delays from increased enforcement actions.Additional impacts:- The bill could raise compliance costs for dealers (documentation, secure storage, inventory procedures, and potential temporary business disruption during investigations or hearings).- It may deter unlicensed or noncompliant activity by signaling stricter enforcement and higher penalties.- The legal landscape for dealer liability would shift toward broader accountability due to reduced emphasis on “willful” violation standards.- Congress would receive more frequent oversight data from the ATF, informing policy decisions and budget needs.Licensed firearms dealer: Any person or entity authorized under federal law to engage in the business of importing, manufacturing, or dealing in firearms, including typical dealers, importers, manufacturers, and collectors as defined by law.Armor-piercing ammunition: A type of ammunition designed to penetrate armor; being involved in transfers of such ammunition triggers additional penalties.Compliance inspections: Federal audits of a dealer’s records, storage security, and adherence to applicable gun laws.Physical inventory: A complete, in-person counting of all firearms held by a licensed dealer, with a detailed inventory record submitted to the ATF.
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