FIREARM Act
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Would prohibit ATF from revoking or denying renewal of a federal firearms dealer license on the basis of a self-reported, correctable violation, and would require the agency to provide a 30-business-day notice-and-correction window before bringing any enforcement action against a licensee.
It would also apply retroactively to dealers whose licenses were revoked under ATF's 2021 Enhanced Regulatory Enforcement Policy, allowing them to reapply, and would require federal courts to review revocation decisions de novo — independently, without deference to the agency — raising the legal bar ATF must clear.
What this bill would do
What it would do
The bill would amend the Gun Control Act to bar the Attorney General — acting through ATF — from revoking or denying renewal of a federal firearms license based on a "self-reported violation," defined as one the licensee discloses to ATF before the agency discovers it during a compliance inspection. The protection would not apply if the violation is uncorrectable or if it involved transferring a firearm to a prohibited person. For all other violations, ATF would be required to give the licensee written actual notice, share all supporting evidence, and allow 30 business days to correct the problem before initiating an enforcement action. The bill would also narrowly redefine "willfully" to require deliberate planning or specific intent, explicitly barring willfulness from being inferred from prior conduct.
For revocations challenged in court, the bill would require federal district courts to review ATF decisions de novo and uphold a revocation only upon a finding, by a preponderance of the evidence, that the licensee willfully violated the law. ATF would be required to stay any revocation while litigation is pending. The retroactivity provision would require ATF to allow reapplication by dealers whose licenses were revoked or surrendered under the agency's Enhanced Regulatory Enforcement Policy announced June 23, 2021, if those dealers demonstrate compliance and corrective action.
Key provisions
- 1Would add definitions of 'self-reported violation,' 'willfully' (requiring deliberate planning or specific intent, not inferred from prior conduct), and 'uncorrectable violation' to 18 U.S.C. § 921(a).
- 2Would bar ATF from revoking or denying renewal of a firearms license based on a correctable self-reported violation, unless the violation involved a transfer to a prohibited person.
- 3Would require ATF to provide actual written notice, all supporting evidence, and a 30-business-day correction window before initiating any license enforcement action; corrected violations could not later be used as the basis for revocation.
- 4Would require federal district courts to review ATF revocation decisions de novo, stay revocations during litigation, and uphold them only on a finding of willful violation by a preponderance of the evidence.
- 5Would apply the Act retroactively to dealers whose licenses were revoked or surrendered under ATF's Enhanced Regulatory Enforcement Policy announced June 23, 2021, and require ATF to allow and approve reapplications from qualifying dealers.
Who would be affected
Federal firearms licensees — primarily gun dealers, manufacturers, and importers holding ATF-issued licenses — who face compliance inspections or enforcement actions. Dealers whose licenses were revoked or surrendered under ATF's 2021 Enhanced Regulatory Enforcement Policy would be directly affected by the retroactivity provision. ATF itself would face new procedural and evidentiary obligations before revoking any license.
Why it matters
Gun dealers who self-report paperwork or record-keeping errors would be shielded from license revocation so long as the errors are correctable and did not involve transfers to prohibited persons. The redefined "willfully" standard and mandatory de novo court review would make it substantially harder for ATF to permanently revoke licenses. The retroactive provision could restore operating licenses to dealers whose businesses were closed following the 2021 ATF enforcement crackdown.
What would change
Changes to existing law
Amends 18 U.S.C. § 921(a) (Sec. 2(a))
Adds statutory definitions of 'self-reported violation,' 'willfully,' and 'uncorrectable violation' for use in firearms licensing enforcement.
Amends 18 U.S.C. § 923(e) (Sec. 2(b))
Bars ATF from revoking or denying license renewal based on correctable self-reported violations; requires 30-business-day notice and correction opportunity before any enforcement action.
Amends 18 U.S.C. § 923(f) (Sec. 2(c))
Replaces existing judicial review provision with de novo review standard, mandatory stay of revocation during litigation, and preponderance-of-the-evidence burden on ATF.
Agencies directed to act
Effective dates
- Retroactive application to dealers affected by the 2021 Enhanced Regulatory Enforcement Policy
Funding and costs
Congressional Budget Office estimate
CBO estimates the FIREARM Act would have a negligible effect on the federal deficit, increasing revenues by less than $500,000 over the 2026–2035 period.
CBO estimates that H.R. 3770, the FIREARM Act, would increase federal revenues by less than $500,000 over the 2026–2035 period, primarily from firearms license application fees paid by businesses that previously had their licenses revoked or surrendered and would now be eligible to reapply. Direct spending (mandatory outlays) would not change. Discretionary costs — spending that depends on future congressional appropriations — are estimated at less than $500,000 over 2026–2030, reflecting the Department of Justice's costs to update its policies and procedures. CBO found no intergovernmental or private-sector mandates in the bill.
How implementation would work
ATF would need to develop compliance-assistance and training procedures to help self-reporting licensees correct violations. Before any enforcement action, ATF must issue written notice containing a detailed explanation of the violation, all supporting evidence, and a deadline 30 business days out. For retroactive cases, ATF would review reapplications from dealers affected by the 2021 policy and approve those that demonstrate compliance and corrective action, barring disqualifying convictions. Federal district courts hearing revocation petitions must independently re-examine the record and stay revocations during the proceeding; ATF bears the burden of proving willful violation by a preponderance of the evidence.
Legislative status & sources
Latest action
Ordered to be Reported (Amended) by the Yeas and Nays: 15 - 8.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill prohibits the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) from bringing an enforcement action to revoke or deny renewal of a federal firearms license on the basis of a self-reported violation that is correctable, so long as the violation did not involve the transfer of a firearm to a prohibited person.
The term self-reported violation means a violation of a statutory provision or implementing regulation by a federal firearms licensee (e.g., a gun dealer) that the licensee reports to the ATF before it is discovered during a compliance inspection.
The bill applies retroactively.
Legislative subjects
Civil actions and liability; Crime and Law Enforcement; Federal district courts; Firearms and explosives; Judicial review and appeals; Licensing and registrations