Senator Feinstein Introduces Legislation to Bolster Law Enforcement’s Ability to Punish Unlawful Gun Dealers
March 29, 2000

Washington, DC – U.S. Senator Dianne Feinstein (D-CA) today introduced legislation to tighten enforcement of current gun laws by allowing the Bureau of Alcohol, Tobacco and Firearms (ATF) to punish rogue firearms dealers according to the severity of their crimes.

Current law allows only one penalty for firearms dealers who violate the law -- revocation of their license. Supported by the Clinton Administration, the “Firearms Dealer Penalty Flexibility Act of 2000" gives the ATF additional authority to impose proportionate penalties based on the degree of the violation.

“Today, if a gun dealer violates the law, the ATF is left with only two options – permanently revoking the dealer’s license, or doing nothing,” Senator Feinstein said. “But the problem is that not every violation deserves permanent revocation of the license. This legislation creates a system that allows us to punish rogue dealers according to the severity of the crime.”

“Current law is like having the death penalty for every crime. In many cases, the ATF is understandably reluctant to destroy a dealer’s livelihood by revoking his or her license and the unlawful dealers know it. As a result, thousands of violations on the part of gun dealers go unpunished every year. Last year, ATF conducted 11,234 examinations of gun dealers and reported 3,863 violations, yet only 20 licenses were revoked.”

While many violations do not deserve revocation, ATF believes there are gun dealers taking advantage of the system. Many dealers today realize that if they commit a violation, they probably will not be caught. And if they gun dealers are caught in violation of the law, very little is likely to happen to them in the way of penalties.

“It was clearly not the intent of Congress when passing laws to regulate firearms dealers in this nation that they would be effectively immune from those laws,” Senator Feinstein said. “This bill gives law-abiding firearms dealers every opportunity to protect themselves against unwarranted claims. At the same time, it provides law enforcement with a variety of sanctions necessary to enforce true compliance with current law.”

The Firearms Dealer Penalty Flexibility Act of 2000 would:

• For willful violations of the law, allow the ATF to suspend or revoke a dealer’s license, or to assess a fine of up to $10,000 per violation;

• Make the same penalties available for any dealer who willfully transfers armor piercing ammunition.

• Allow the ATF to negotiate a compromise with a dealer at any time;

• Include clear, procedural protection for firearms dealers, including:

• The right to notice and opportunity for a hearing before any action is taken so that the dealer may be made aware of the charges and seek to avert the action;

• The right to written notice of any action taken including the grounds upon which the action was based;

• The right to a prompt hearing after a penalty is assessed, during which time the dealer can contest the outcome. This hearing must even be held at a location convenient to the dealer;

• After a second hearing, the dealer has the additional right to appeal the decision of the Department to federal court, during which time any action is stayed.