Keeping Gun Dealers Honest Act of 2025

Increased Oversight: The bill increases the number of allowed compliance inspections from once to three times (Section 2). This could ensure dealers are following the rules more frequently.

Stronger Penalties for Violations: Penalties for certain firearm-related offenses are increased from one year to five years (Section 3). For specific recordkeeping offenses related to certain crimes, the bill introduces a fine or up to 10 years in prison (Section 4).

Enhanced Public Safety Standards: The Attorney General can now deny licenses if they determine the applicant is not likely to comply with the law, is not suitable, or if the license would pose a danger to public safety (Section 9).

Increased Enforcement Staff: The Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives is authorized to hire at least 80 additional employees to carry out more inspections (Section 7).

Stricter Inventory Requirements: The Attorney General can require a physical inventory if a dealer has been convicted of an unlawful transfer or if 10 or more crime guns are traced back to the dealer (Section 8).

Increased Financial Burdens for Dealers: The Attorney General may impose civil penalties of up to $10,000 per violation (Section 5). This includes violations of the chapter or rules, and failure to have secure gun storage or safety devices available, unless the shortage is due to reasons beyond the dealer's control (Section 5).

Risk to Business Licensing: The Attorney General has increased authority to suspend or revoke licenses for various violations (Section 5). Additionally, a license may now be terminated upon a felony conviction rather than waiting for the conviction to become final (Section 6).

Lowered Standards for Liability: The bill removes the requirement that certain actions be done "willfully" in several sections of the law (Section 10). This could make it easier to hold individuals liable for violations.