Keeping Gun Dealers Honest Act of 2025

(A) 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—

(i) has violated any provision of this chapter or any rule or regulation prescribed by the Attorney General under this chapter; or

(ii) 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.

(B) 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.

(2) 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.

(3) 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.

(4) The Attorney General’s actions under this subsection may be reviewed only as provided in subsection (f).

(1) 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.

(2) 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.

(A) 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.

(B) 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.

(C) 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).

(D) 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 923(g)(1) of title 18, United States Code, is amended by adding at the end the following:

(E) The Attorney General may require a licensed importer, licensed manufacturer, or licensed dealer to conduct a physical inventory of the firearms in the business inventory of the licensee, and provide the Attorney General with a detailed record of the physical inventory if—

(i) the licensee has been convicted of transferring a firearm unlawfully; or

(ii) 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.

(1) Section 923(j) of title 18, United States Code, is amended in the sixth sentence by inserting, except as required under subsection (g)(1)(E) before the period.

(2) The matter under the heading salaries and expenses under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives under 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 923 before the colon.

(1) in subsection (c)—

(A) by inserting (1) before Upon;

(B) in the first sentence, by inserting, subject to paragraph (2), after Attorney General shall; and

(C) by adding at the end the following:

(2) The Attorney General may deny an application submitted under subsection (a) or (b) if the Attorney General determines that—

(A) issuing the license would pose a danger to public safety; or

(B) the applicant—

(i) is not likely to comply with the law; or

(ii) is otherwise not suitable to be issued a license.

(C) ; and

(2) in subsection (d)(1), in the matter preceding subparagraph (A), by inserting, subject to subsection (c)(2), after shall.

(1) in subsection (c), in the third sentence, by striking willfully; and

(2) in subsection (d)(1), by striking willfully each place it appears.

(1) a statement by the Director as to what additional resources, if any, are necessary in order to implement this Act and the amendments made by this Act; and

(2) any recommendations of the Director for how better to ensure that—

(A) firearms dealers are complying with all laws and regulations that apply with respect to dealing in firearms; and

(B) noncompliant firearms dealers are subject to appropriate action in a timely manner.