This legislation seeks to significantly increase accountability for licensed firearms dealers and curb illegal gun sales and trafficking. It achieves this by expanding the frequency of compliance inspections from once to three times annually and by substantially increasing penalties for certain firearms offenses, including recordkeeping violations linked to gun trafficking, which could result in up to 10 years imprisonment.

The bill grants the Attorney General enhanced authority to deny new license applications if they pose a danger to public safety or if the applicant is deemed unsuitable or unlikely to comply with the law. Furthermore, it empowers the Attorney General to suspend or revoke existing licenses and impose civil penalties of up to $10,000 per violation for non-compliance with firearms laws or regulations, including the failure to make secure gun storage or safety devices available. The legislation also streamlines the process for license termination upon felony conviction and authorizes the hiring of at least 80 additional Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) employees to conduct the increased inspections.

To further deter illegal activities, the Act allows the Attorney General to mandate a physical inventory from a licensed dealer if they have unlawfully transferred a firearm or if ten or more crime guns are traced back to them. It also removes the term "willfully" from certain liability standards, potentially making it easier to prove violations. Finally, the bill requires the ATF Director to submit biennial reports to Congress detailing the Act's implementation and recommending ways to ensure dealer compliance and timely action against non-compliant dealers.