Prevent Illegal Gun Resales Act

Increased Safety via Storage Requirements: Applicants for a dealer's license must certify that secure gun storage or safety devices will be available at the place where firearms are sold (Section 3(a)(i)).

Prevention of Inventory Diversion: The bill requires licensees to implement practices and procedures to prevent business inventory, such as firearms and ammunition, from being diverted from lawful commerce or transferred to a straw purchaser (Section 3(b)).

Enhanced Information Sharing: The Act requires licensees to respond to the Attorney General's requests for information regarding criminal investigations within 24 hours (Section 4(a)(3)(A)).

Consumer Awareness/Prevention Programs: The creation of the "Gun Trafficking Awareness Program" provides training for licensees to help them identify signs of straw purchasing or gun trafficking (Section 6(c)(2)(A)).

Increased Costs for Licensees: The bill significantly increases various licensing fees, such as increasing several categories from $1,000 to $2,000 (Section 2).

Financial Penalties for Non-Compliance: Licensed dealers may face a civil money penalty of up to $5,000 and the potential suspension of their license if they fail to follow the practices specified in their application (Section 3(c)).

Strict Criminal Penalties for Trafficking: Individuals found guilty of firearms trafficking may face fines and up to 15 years in prison (Section 6(a)(1)).

Heavy Civil Penalties for Licensees: Licensees involved in unlawful transfers may be required to disgorge all profits and pay civil penalties of $10,000 per firearm, or up to $50,000 if the firearm was used in a crime (Section 6(a)(2)(A)).

Increased Regulatory Burden for "High Risk" Dealers: Dealers identified as "high risk" must adopt specific practices, such as electronic record keeping and audio/video recordings, and are subject to inspections at least every two years without a warrant (Section 7(a)).