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GGD-94-111R 1 (1994-03-14)

handle is hein.gao/gaobacknb0001 and id is 1 raw text is: GAO | Unif ed Staltes Gemral Accoiti g Office GAO Washikiol, D).C. 20548 General Goverlnment D~ivision B-256668 March 14, 1994 The Honorable Lloyd M. Bentsen The Secretary of the Treasury Attention: Assistant Secretary (Management)/Chief Financial Officer Dear Mr. Secretary: As you know, last November Congress passed the Brady Handgun Violence Prevention Law, Public Law 103-159 (1993). The Brady Law, among other things, increased the application fee for gun dealers to obtain a federal firearms license (FFL). Gun dealers make up approximately 90 percent of the total number of federal firearms licensees. Other firearms licensees include manufacturers, importers and collectors. Prior to the Brady Law, FFL fees for all licensees were statutorily set by the Gun Control Act of 1968, Public Law 90-618. For example, the application fee to conduct business as a gun dealer was set at $10 per year ($30 for 3 years). The Brady Law raised the 3-year fee to $200 for new licenses (about $67 per year) and $90 for a 3-year renewal; the fees for other FFLs have not changed. Early this year, you unveiled a proposal to further increase the gun dealer's license fee to $600 per year, an amount generally intended to cover the cost of processing and issuing a license, along with other measures intended to reduce and control the nation's almost 250,000 federally licensed gun dealers. Last year, the Bureau of Alcohol, Tobacco and Firearms (ATF) had not calculated actual total program costs but had estimated the direct costs to process and issue one gun dealer's license to be about $375. Recently, ATF revised its estimate to approximately $650 for processing a new FFL application and approximately $575 for processing a renewal FFL application. Regardless of what licensees are eventually charged for FFLs, we believe that you should consider asking Congress to establish a FFL user fee program as part of your proposal. Currently, the tees for gun dealers are set in statute under the Brady Law, and the fees for other licenses are set under GAO/GGD-94-111R, User Fees for Firearms Licenses

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