http://www.atf.treas.gov/breakingnews/020400report.pdf
Changes in the Federal Firearms
Licensing System
In 1993,the Administration and Congress
focused on efforts to keep firearms out of the
hands of criminals and regulate the illegal
flow of guns.Noting that it was often easier
to acquire a gun dealer license than a driver ’s
license,the President directed a review of gun
dealer licensing in August 1993,aimed at
ensuring that only those engaged in a legiti-
mate firearms business are licensed.At that
time,ATF estimated that 46 percent of li-
censed dealers conducted no business at all,
but used their licenses to buy and sell fire-
arms across State lines at wholesale prices,
often in violation of State and local zoning or
tax laws.
In modifying the Federal firearms licensing
system in 1993 and 1994,Congress added
more safeguards to ensure that only legiti-
mate gun dealers obtained Federal licenses.
The 1993 Brady Act increased the dealer
licensing fee from $10 per year to $200 for
the first three years and $90 for each addi-
Violent Crime Control and Law Enforcement
Act of 1994 (Crime Act),licensees were re-
quired to submit photographs and finger-
prints as part of their application,and to
certify that their firearms business complied
with all State and local laws,including zon-
ing regulations.
Following these changes,the NLC reviewed
the eligibility of the entire licensee popula-
tion over a three-year period.As licensees
applied for renewal of licenses,they were
required to submit complete new application
packages with photographs,fingerprints and
information about the proposed business.
The majority of these renewal applications,as
well as new applications,were sent to field
offices where inspectors contacted the appli-
cants.Beginning in 1993,ATF field offices
established partnerships with State and local
licensing and zoning authorities to disqualify
the licensees who were operating in violation
of State or local law and to ensure that appli-
cants had notified local CLEOs of their intent
to enter the gun business.
