H.R. 6127: ATF Improvement and Modernization Act of 2025

The ATF Improvement and Modernization Act of 2025 proposes several changes aimed at enhancing the operational capabilities of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regarding firearms regulation. The key provisions of the bill include:

1. Removal of Restrictions on Firearms Trace Data

The bill seeks to eliminate existing limitations regarding the use of firearms trace data by the ATF. Specifically, it would remove the Tiahrt amendments that restrict the ability of the ATF to track and analyze firearms data and the requirement for such data to remain confidential. This change is intended to enable law enforcement to utilize this data in a more effective manner while enforcing firearms laws.

2. Centralization of Firearms Records

The legislation would allow for the centralization or consolidation of records related to the acquisition and disposition of firearms held by Federal firearms licensees, thus streamlining the monitoring and regulation of firearm sales and ownership.

3. Inspection Requirements for Firearms Dealers

The bill removes the prohibition on requiring firearms dealers to conduct physical checks of their inventory, thereby allowing the ATF to mandate such inspections to ensure compliance with firearms regulations.

4. Changes to Instant Check Record Retention

It proposes the elimination of the requirement that records of instant background checks be destroyed within 24 hours, permitting the retention of those records for longer periods to aid in law enforcement efforts.

5. Access to Information on Arson and Explosives

The bill would repeal restrictions on processing Freedom of Information Act (FOIA) requests concerning incidents involving arson, explosives, or firearms traces, enhancing transparency and accessibility of information related to these incidents.

6. Importation and Sale of Firearms

This bill seeks to repeal prohibitions against the importation of surplus military firearms and certain shotgun models that have previously been deemed unsuitable for sporting purposes. This change would allow for these firearms to be imported and sold in the U.S.

7. Inspections of Federal Firearms Licensees

The Act would eliminate limits on the frequency of inspections of inventory and records at Federal firearms licensees, potentially increasing oversight and compliance checks on firearms dealers.

8. Revised Standard for License Revocation

The standard for revoking Federal firearms licenses would be revised from a "willful" to a "knowing" violation, potentially making it easier for the ATF to revoke licenses in cases of non-compliance.

9. Removal of Application Denial Restrictions

The legislation also aims to remove barriers that prevent the denial of Federal firearms licenses based on lack of business activity, which may lead to a more streamlined licensing process for prospective firearms dealers.

10. Access to Out-of-Business Dealer Records

The bill would enable the ATF to search computerized records of federally licensed firearms dealers who are no longer in business, facilitating easier access to important historical firearms sales data.

11. Additional Provisions

Additional provisions involve the elimination of certain prohibitions that limit the ability of law enforcement to collect and utilize data related to firearms and improve operational capabilities within the ATF.

Relevant Companies

• Ruger (RGR) - Might be impacted by changes in regulations affecting the sale and distribution of firearms.
• Smith & Wesson (SAFM) - Could see changes in compliance and operational requirements affecting business practices.
• Vista Outdoor (VSTO) - May be influenced by new laws affecting the manufacturing and distribution of firearms and ammunition.