S 2155
Keeping Gun Dealers Honest Act of 2025
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Bill overview
The Keeping Gun Dealers Honest Act of 2025 aims to increase accountability for federally licensed firearms dealers. It expands the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) authority to deny licenses, conduct more frequent inspections, and impose stricter penalties for violations of federal firearms laws. The bill also increases criminal penalties for FFLs and collectors who make false statements and enhances the ATF’s ability to investigate and address illegal gun trafficking.
Key provisions
- Increases the number of annual compliance inspections ATF can conduct on firearms dealers from one to three.
- Raises the maximum prison sentence for FFLs or licensed collectors who knowingly make false statements in firearms records from one year to five years.
- Allows the ATF to suspend or revoke a dealer’s license and impose civil penalties for violations of gun control laws.
- Authorizes the ATF to require physical inventories of firearms from dealers who have been convicted of unlawful firearm transfers or where 10 or more crime guns are traced to a dealer.
- Expands the ATF’s ability to deny a firearms license if issuing it would endanger public safety or if the applicant is unlikely to comply with the law.
- Increases civil penalties for violations of the Gun Control Act, up to $10,000 per violation.
- Provides a process for aggrieved parties to challenge ATF decisions regarding license denials or suspensions.
- Allows the Director of the ATF to hire additional personnel to conduct inspections.
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119th CONGRESS — 1st Session
S. 2155
IN THE SENATE OF THE UNITED STATES
A BILL
To ensure greater accountability by licensed firearms dealers.
This Act may be cited as the Keeping Gun Dealers Honest Act of 2025
.
Section 923(g)(1)(B)(ii)(I) of title 18, United States Code, is amended by striking once
and inserting 3 times
.
Section 924(a)(3) of title 18, United States Code, is amended in the matter following subparagraph (B) by striking one year
and inserting 5 years
.
Section 924(a)(3) of title 18, United States Code, is amended by striking the period at the end and inserting . If the conduct described in subparagraph (A) or (B) is in relation to an offense under subsection (a)(6) or (d) of section 922, the licensed dealer, licensed importer, licensed manufacturer, or licensed collector shall be fined under this title, imprisoned for not more than 10 years, or both.
.
Section 923 of title 18, United States Code, is amended by striking subsections (e) and (f) and inserting the following:
The Attorney General may, after notice and opportunity for hearing, suspend or revoke any license issued under this section, or may subject the licensee to a civil penalty of not more than $10,000 per violation, if the holder of the license—
has violated any provision of this chapter or any rule or regulation prescribed by the Attorney General under this chapter; or
except as provided in subparagraph (B), fails to have secure gun storage or safety devices available at any place in which firearms are sold under the license to persons who are not licensees.
Subparagraph (A)(ii) shall not apply in any case in which a secure gun storage or safety device is temporarily unavailable because of theft, casualty loss, consumer sales, backorders from a manufacturer, or any other similar reason beyond the control of the licensee.
The Attorney General may, after notice and opportunity for hearing, suspend or revoke the license of, or assess a civil penalty of not more than $10,000 on, a dealer who transfers armor piercing ammunition.
The Attorney General may at any time compromise, mitigate, or remit the liability with respect to any violation of this chapter or any rule or regulation prescribed by the Attorney General under this chapter.
The Attorney General’s actions under this subsection may be reviewed only as provided in subsection (f).
Any person whose application for a license is denied and any holder of a license which is suspended or revoked or who is assessed a civil penalty shall receive a written notice from the Attorney General stating specifically the grounds upon which the application was denied or upon which the license was suspended or revoked or the civil penalty assessed. Any notice of a suspension or revocation of a license shall be given to the holder of the license before the effective date of the suspension or revocation.
If the Attorney General denies an application for a license, or suspends or revokes a license, or assesses a civil penalty, the Attorney General shall, upon request by the aggrieved party, promptly hold a hearing to review the denial, suspension, revocation, or assessment. In the case of a suspension or revocation of a license, the Attorney General shall, on the request of the holder of the license, stay the effective date of the suspension or revocation. A hearing under this paragraph shall be held at a location convenient to the aggrieved party.
If after a hearing held under paragraph (2) the Attorney General decides not to reverse the decision to deny an application or suspend or revoke a license or assess a civil penalty, the Attorney General shall give notice of the decision to the aggrieved party.
The aggrieved party may at any time within 60 days after the date notice is given under subparagraph (A) file a petition with the United States district court for the district in which the party resides or in which the party’s principal place of business is located for a de novo judicial review of the denial, suspension, revocation, or assessment.
In a proceeding conducted under this paragraph, the court may consider any evidence submitted by the parties to the proceeding without regard to whether such evidence was considered at the hearing held under paragraph (2).
If the court decides that the Attorney General was not authorized to deny the application or to suspend or revoke the license or to assess the civil penalty, the court shall order the Attorney General to take such action as may be necessary to comply with the judgment of the court.
Section 925(b) of title 18, United States Code, is amended by striking until any conviction pursuant to the indictment becomes final
and inserting until the date of any conviction pursuant to the indictment
.
The Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives may hire at least 80 additional employees for the purpose of carrying out additional inspections as provided for in the amendments made by this Act.
the licensee has been convicted of transferring a firearm unlawfully; or
the Attorney General finds that 10 or more firearms used in a crime under Federal, State, or local law have been traced back to the licensee.
, except as required under subsection (g)(1)(E)before the period.
salaries and expensesunder the heading
Bureau of Alcohol, Tobacco, Firearms and Explosivesunder title II of division B of the Consolidated and Further Continuing Appropriations Act, 2013 (Public Law 113–6; 127 Stat. 247) is amended in the fifth proviso by inserting
, except as required under subsection (g)(1)(E) of such section 923before the colon.
Section 923 of title 18, United States Code, is amended—
in subsection (c)—
by inserting (1)
before Upon
;
in the first sentence, by inserting , subject to paragraph (2),
after Attorney General shall
; and
by adding at the end the following:
The Attorney General may deny an application submitted under subsection (a) or (b) if the Attorney General determines that—
issuing the license would pose a danger to public safety; or
the applicant—
is not likely to comply with the law; or
is otherwise not suitable to be issued a license.
in subsection (d)(1), in the matter preceding subparagraph (A), by inserting , subject to subsection (c)(2),
after shall
.
Section 923 of title 18, United States Code, is amended—
willfully; and
in subsection (d)(1), by striking willfully
each place it appears.
Section 926(a) of title 18, United States Code, is amended, in the matter preceding paragraph (1), by striking only
.
The Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives shall submit biennial reports to Congress on the implementation of this Act and the amendments made by this Act, which shall include—
If any provision of this Act or of an amendment made by this Act, or the application of such a provision to any person or circumstance, is held to be invalid, the remainder of this Act or of such an amendment, or the application of this Act or of such an amendment to other persons or circumstances, shall not be affected.