Legislation Introduced in Delaware to Create Strengthened Firearm Dealer Licensing Requirement


A new bill introduced in Delaware would create stricter oversight of firearm dealers through a state licensing system aimed at reducing illegal gun trafficking. Senate Bill 300, sponsored by Senate President Pro Tempore Dave Sokola, would require most gun dealers to obtain a state license and meet enhanced standards for inspections, security, training, and reporting. The legislation is designed to hold dealers accountable and improve gun safety. Supporters say stronger oversight could help prevent firearms from ending up in the wrong hands. This legislation would also expand background checks, require regular inspections by Delaware State Police, and mandate reporting of lost or stolen firearms. The bill has been assigned to the Senate Executive Committee for consideration.
 
Additional Information from the Delaware Senate Majority Caucus:
 In an effort to prevent firearms from entering the illegal market, Senate President Pro Tempore Dave Sokola introduced Senate Bill 300 on Thursday to bolster Delaware’s oversight of firearm dealers by implementing an enhanced licensing system with stricter inspection, reporting, and security requirements.
 
The legislation follows a growing body of evidence that indicates firearm dealers’ sales practices have a significant impact on the probability of gun trafficking, and that holding dealers accountable can reduce the illegal use of firearms.
 
“The numbers don’t lie: Delaware can be doing more to prevent guns from ending up in the wrong hands. Strong, comprehensive licensing procedures will guarantee that gun dealers are doing everything they can to ensure safe, responsible gun ownership while following the law,” said Sen. Sokola. “Delaware has made great progress to end gun violence in recent years, and SB 300 is a very important next step to hold gun dealers accountable for illegal or reckless practices.”

According to Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) data from 2017 through 2021, 6,626 crime guns were recovered by law enforcement in Delaware, meaning those firearms were either used in a crime, found at a crime scene, or where the purchase or possession of the gun itself was illegal.

ATF also reported that while 67% of crime guns recovered by law enforcement in Delaware were purchased from in-state dealers, the state has also been a large supplier of all crime guns recovered in other states – specifically, 12.2% in Maryland and 8.9% in Pennsylvania.

Under SB 300, firearm dealers – meaning wholesale or retail sellers or transferors of more than 10 firearms a year – must obtain a state license to sell or transfer firearms. 

 
Those who do not meet the definition of a firearm dealer under SB 300 will still be required to obtain a special license to sell deadly weapons if required under Chapter 9 of Title 24 of the Delaware Code.

In order to receive a license, firearm dealers must complete and submit an application developed by Delaware State Police, and submit additional information including a required licensing fee, proof of a federal firearms license, a copy of their personal identification, and proof of liability insurance.

“This measure will help keep Delawareans safe by ensuring firearms dealers are following the law and meeting necessary standards, something that is especially important at a time when the federal government is hampering the ability of the Bureau of Alcohol, Tobacco, Firearms and Explosives to do this work responsibly,” said Rep. Mara Gorman, House prime sponsor of SB 300.

 
“I feel truly honored to serve as Sen. Sokola’s co-prime sponsor on what will be the final bill of his long and distinguished career advancing commonsense gun safety legislation. I’ve been committed to the work of fighting for firearm safety for years, and I’ll continue to fight for safer communities as long as I’m in office.”

To prevent firearms from entering the illegal market, licensees, their employees, and “responsible persons” – meaning a person who sets policies for a business that sells firearms – would need to complete a tailored training course developed by the Delaware State Police once every 2 years.

SB 300 expands existing background check requirements – already applied to licensees, responsible persons, and employees – to include contractors and volunteers at firearms businesses, while requiring annual background checks for licensees and responsible persons.

Once a firearm dealer receives a state license, SB 300 would require a range of strengthened security requirements. This includes publicly displaying business hours and proof of licensure, as well as ensuring businesses have a functioning security alarm system to monitor where firearms and ammunition are kept, and a digital surveillance system that tracks entrances and exits.

Delaware State Police would also have the responsibility to conduct on-site inspection of firearm businesses at least once every two years, though the agency may conduct periodic inspections to ensure compliance.

Further, SB 300 would bolster reporting standards for licensees on a number of fronts. The licensee must report any theft, loss, or illegal transfer of a firearm or ammunition to ATF and Delaware State Police, and submit annual reports to the Attorney General regarding federal investigations and firearm trace requests. State Police would then compile loss/theft data to be made available to the public.

“Gun dealers are our first line of defense in protecting our communities from gun violence, but some of them operate irresponsibly. A State Gun Dealer Licensing and Code of Conduct law in Delaware would combat improper dealer actions, ensuring they operate within the bounds of the law. Inspections are the norm for almost every other industry in Delaware; we rigorously oversee restaurants, barber shops, and the cannabis industry to ensure public safety,” said Kris Brown, president of Brady United. 

 
“It is past time we hold the gatekeepers of lethal weapons to that same standard. We want to thank Senate President Pro Tempore Senator Sokola and Representative Mara Gorman for their leadership in introducing this bill, and fighting for gun violence prevention in Delaware.”

Under this legislation, the firearm dealer licensing fee would be established by the Delaware State Police based upon the average annual firearms sales and transfers at a business.

Those fees range depending on the scale of sales or transfers at a business, with the lowest bracket at 11 to 25 firearms per year, and the highest at more than 1,000 firearms per year. Funds derived from licensing fees would be placed in the Firearm Licensing Fund, which Delaware State Police can use for implementation costs.

Licensees would also need to notify Delaware State Police of any key business changes, and maintain detailed inventory and transaction records in a secure, backed-up database – accessible at the business – to be submitted to Delaware State Police twice a year.

SB 300 allows Delaware State Police to revoke a state license if a licensee no longer holds a federal firearms license, becomes prohibited from having firearms, or knowingly allows an ineligible employee or responsible person to continue in their role. The first violation of this Act would result in a warning, while subsequent violations could result in a further warning, a $1,000 to $3,000 civil penalty, or the revocation of the firearm dealer’s state license.

If adopted, SB 300 takes effect immediately and be implemented 1 year from its enactment date. Since SB 300 requires a licensing fee for firearm dealers, the Delaware Constitution requires a three-fifths majority vote to pass.

SB 300 has been assigned to the Senate Executive Committee for consideration.


 

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