Keeping Gun Dealers Honest Act of 2021

Keeping Gun Dealers Honest Act of 2021

This bill modifies the requirements and penalties applicable to an individual who engages in the business of dealing, importing, or manufacturing firearms (i.e., a federal firearms licensee, or FFL).

Among other things, the bill does the following:

• increases the allowable number of annual compliance inspections;
• authorizes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to hire at least 80 additional personnel to conduct additional inspections;
• increases the maximum prison term for an FFL or licensed collector who knowingly makes a false statement or representation in required firearms records;
• allows the ATF to require an FFL to conduct physical inventories if the FFL unlawfully transfers a firearm or if 10 or more crime guns are traced back to the FFL;
• allows the ATF to deny an application for a federal firearms license if it would endanger public safety or if the applicant is unlikely to comply with the law; and
• modifies the liability standard for an FFL who fails to comply with laws or regulations.