Prevent Illegal Gun Resales Act

Key Points

• This bill would significantly raise the cost of getting a federal license to sell guns. For many dealers, the application fee would jump from $50 to $2,000. This change is intended to ensure that only serious, professional businesses are operating in the firearms market.
• Gun stores would be required to create and follow specific plans to prevent 'straw purchases,' which happen when someone buys a gun for a person who is legally prohibited from owning one. If a dealer fails to follow their own safety plan, they could face a $5,000 fine or have their license suspended.
• The government would label certain sellers as 'high risk' if their guns are frequently used in crimes or if they have a history of breaking rules. These dealers would be required to record video and audio of every sale and undergo regular inspections by federal agents to ensure they are following the law.
• Dealers would have to respond to police requests to trace 'crime guns' within 24 hours. If a dealer has five or more guns stolen or used in crimes within a single year, they must upgrade their security and record-keeping systems, including installing surveillance cameras.
• The bill creates a new federal crime for gun trafficking with a maximum prison sentence of 15 years. It also allows the government to fine dealers up to $50,000 for each gun they sold that was later used in a crime if the dealer had reason to believe the sale was suspicious.
• A new 'Gun Trafficking Awareness Program' would be created to train gun store employees on how to spot illegal buyers. Dealers who accidentally sell to traffickers but didn't mean to break the law could be required to join this program to keep their business open.