This bill makes it tougher for gun dealers to operate without proper oversight and accountability. Right now, federal inspectors can only check a gun dealer's records once per year, but this bill would allow them to inspect three times per year instead. The bill also increases penalties for dealers who break the rules—if a dealer violates recordkeeping requirements, they could face up to five years in prison instead of one year. If a dealer's violations are connected to illegal gun trafficking, the penalty jumps to up to ten years in prison.

The bill gives the government more tools to punish bad actors. Dealers who fail to keep secure gun storage devices available for customers, or who sell armor-piercing ammunition, could lose their license or face fines up to $10,000 per violation. If a dealer is convicted of a felony, their license ends immediately rather than staying active during appeals. The bill also requires dealers to do a complete inventory of their firearms if they've been caught illegally transferring guns or if ten or more crime guns have been traced back to them.

On the licensing side, the government can now deny applications from people who pose a danger to public safety or who aren't likely to follow the law. The bill removes the requirement that violations be "willful" to be prosecuted, making it easier to hold dealers accountable for mistakes. To make all this work, the bill allows the Bureau of Alcohol, Tobacco, Firearms and Explosives to hire at least 80 additional employees to conduct more inspections and enforcement.