Delaware General Assembly

Senate Executive 4/30/26

Awaiting consideration in Committee

4/30/26

Sokola

Rep. Gorman

Sen. Lockman, Townsend
Reps. Bolden, Griffith, Morrison, Romer

AN ACT TO AMEND TITLE 11, TITLE 16, AND TITLE 24 OF THE DELAWARE CODE RELATING TO DEADLY WEAPONS DEALERS.

This Act requires firearm dealers to obtain a state license to sell or transfer firearms instead of the license to sell deadly weapons under Chapter 9 of Title 24. For purposes of this Act, a “firearm dealer” means a person that engages in the wholesale or retail sale or transfer of firearms, including a pawnbroker, and that has, or is required to have, a federal firearms license. A “firearm dealer” does not include a person that has sold or transferred 10 or fewer firearms within any 1-year period that the person has engaged in selling or transferring firearms. However, people that do not meet the definition of “firearm dealer” under this Act shall still be required to obtain a license to sell deadly weapons under Chapter 9 of Title 24. The Delaware State Police (DSP) shall create a standardized application for the license under Chapter 9B. The new state license under Chapter 9B of Title 24 modifies Delaware's current firearm dealer licensing practices as follows: (1) Establishes in statute factors that make a person ineligible to obtain a state license to sell or transfer firearms or to serve as a responsible person for a state license holder (licensee). A "responsible person" is defined as a person who directly or indirectly has the power to direct the management and policies as that management and policy relates to firearms. A responsible person is required under federal law to be included on a federal firearms license. Ineligibility is not always permanent and there are exemptions in this Act. (2) Heightened and more specific security requirements including that a licensee must: a. Post business hours and proof of licensure. b. Only sell or transfer firearms at their business location, except when conducting business at an allowable temporary business location. c. Equip their business location and any place that, for business purposes, the licensee stores or displays firearms or ammunition with a functioning security alarm system. d. Equip their business location with a functioning digital surveillance system that surveils certain key areas, such as entrances and exits. The DSP shall adopt security regulations to establish requirements for the secure storage and display of firearms and ammunition to prevent unauthorized access. Special provisions are included to address the unique operations of a licensee that sells or transfers on average 50 or fewer firearms and a licensee whose business location is also a residential dwelling. It is not a violation of this Act if the security features required by this Act become temporarily inoperable through no fault of the licensee. (3) Heightened and centralized recordkeeping and reporting such as: a. A licensee shall annually report information about trace requests and federal inspections to the State Attorney General. The Attorney General shall compile the information and provide it to the General Assembly and make it publicly available. b. A licensee shall promptly notify the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the DSP about any loss, theft, or unlawful transfer of any firearm or ammunition, including if caused by the licensee’s employee, contractor, or volunteer. c. A licensee shall report certain changes to the DSP, including change of business location and responsible persons. d. A licensee shall establish and maintain a book or electronic database with the information required in this Act, including inventory and disposition, as well as follow the information backup and storage requirements to ensure records remain available. e. A licensee shall have the book or database accessible in the licensee’s business location and shall submit certain records therein to the DSP, biannually, by every April 30 and October 30. f. The DSP shall collect information and report about licensee compliance and data on lost and stolen firearms and ammunition. The report must be publicly available. (4) Requires background checks for contractors and volunteers with access to the licensee's firearms or performing certain tasks for a licensee. Licensees, responsible persons, and employees already undergo background checks under current law and must continue to do so under this Act. Licensees (if individuals) and responsible persons must now obtain annual background checks, as is currently the practice with employees. If the “Rap Back System” as defined by § 8502 of Title 11 becomes available, annual background checks will be replaced by use of the Rap Back System. (5) Training requirements. a. The DSP shall develop a training course or approve a training course for licensees, responsible persons, and the licensees’ employees, contractors, and volunteers. Training must include topics designed to help prevent the entry of firearms into the illegal market. b. The training must be successfully completed biennially. Only those employees, contractors, or volunteers who handle firearms or ammunition or process the sale or transfer of firearms or ammunition must complete the training. (6) A recurring inspection by the DSP to ensure firearm dealers are in compliance with State law. a. The DSP shall conduct an on-site inspection of each licensee’s business location at least once every 2 years to ensure compliance with this Act. b. DSP may conduct reasonable periodic inspections of a licensee’s place of business during the licensee’s regular posted business hours and of a licensee’s records to ensure compliance with this Act. (7) Establishes civil penalties and possible license revocation in the event of violations. a. The DSP is required to revoke a state license if a licensee: 1. No longer holds a valid FFL. 2. Knowingly employs, contracts with, or allows as a volunteer a person in violation of this Act. 3. Is or becomes prohibited from possessing or purchasing firearms under any state or federal law. 4. Knows or should have known that a responsible person is ineligible to serve as a responsible person and the licensee allows that responsible person to continue to serve as a responsible person. b. The DSP has the flexibility to consider the severity of any other violations and assess an appropriate penalty as follows: 1. For a first occurrence, issue a warning to the licensee that includes a description of the violation and the penalty for subsequent violations. 2. For a subsequent occurrence, the DSP may issue a warning; assess a civil penalty; or revoke the licensee’s state license. A civil penalty under this Act may be from $1,000 through $3,000, including costs. (8) Requires the DSP to set license fees that will be directly proportional to the average annual firearm sales and transfers for the following transaction ranges: a. If the firearm dealer or licensee sold and transferred 11 to 25 firearms per year. b. If the firearm dealer or licensee sold and transferred 26 to 50 firearms per year. c. If the firearm dealer or licensee sold and transferred 51 to 250 firearms per year. d. If the firearm dealer or licensee sold and transferred 251 to 750 firearms per year. e. If the firearm dealer or licensee sold and transferred 751 to 1,000 firearms per year. f. If the firearm dealer or licensee sold and transferred more than 1,000 firearms per year. The cost of license fees may not be set higher than the cost of administering this Act. The Act also provides license fee guidance for people who have sold or transferred less than 11 firearms but wish to obtain a license under this Act. Any fees collected under this Act will be placed in the Firearm Licensing Fund. The DSP may use the proceeds in the Fund to cover implementation costs. These changes to Delaware’s licensing system are in recognition of a growing body of evidence that demonstrates that firearms dealers’ sales practices affect the probability of firearms entering the illegal market, and that policies designed to hold dealers accountable can curtail illegal use of firearms and the concomitant crimes. According to the Johns Hopkins University Center for Gun Violence Solutions, utilizing data from the Centers for Disease Control, firearms are used in 78% of homicides that occur in Delaware. In addition to loss of life, firearm violence has an economic impact, costing Delawareans $1.3 billion per year, which amounts to $1,236 per resident. An article in the Journal of Urban Health found that in-state trafficking was 64 percent lower in places with strong firearm dealer regulations and oversight. A study published in the American Journal of Public Health, examining 20 years of data, found that state licensing requirements and laws requiring or allowing inspections or audits of firearm dealers were independently associated with significantly lower firearm homicide rates. The ATF has oversight over firearms dealers, but its efforts are insufficient. Though the ATF aims to inspect firearm dealers at least every three years, at the rate inspections are performed, a dealer can expect inspection only once every 9 years. ATF data reveals that, when they occur, dealer inspections generally yield a large number of violations. In sum, the frequency of violations and the rarity of inspections allow the possibility that dealers are violating law each year without any corrective action by the ATF. According to data compiled by Brady United, there is State-specific evidence to suggest Delaware’s firearm licensing system would benefit from reform to protect the health and safety of our residents. According to 2017 through 2021 ATF data, 6,626 firearms were recovered in Delaware by law enforcement, after either having been used in a crime, found at a crime scene, or where the purchase or possession of the firearm was itself illegal (“crime guns”). Half of these crime guns were recovered by law enforcement within 3 years of retail purchase, which is indicative of potential firearm trafficking. The data also raises concerns about potential straw purchasing in our State, as there was a mismatch in the identity of the firearm purchaser and firearm possessor during a criminal offense in 72% of the traceable cases. Furthermore, 67% of the firearms recovered by law enforcement in this State were sourced from in-State firearm dealers. Delaware is also a significant supplier of crime guns to other states, most significantly Maryland (12.2% of the crime guns recovered come from Delaware dealers) and Pennsylvania (8.9% if the crime guns recovered come from Delaware dealers). Sections 2 through 10 of this Act update existing Code to account for the creation of Chapter 9B in Title 24. Section 11 through Section 13 provide information on the effective date and implementation of this Act. This Act is effective immediately and is to be implemented 1 year from the date of this Act’s enactment except as follows: a. If a person with a valid special license to sell deadly weapons under Chapter 9 of Title 24 applies for a state license on or by 455 days after this Act’s enactment then that person may sell or transfer firearms until the DSP has acted upon that person’s application for a state license under Chapter 9B of Title 24, as contained in Section 1 of this Act. b. Initial reports will not be due until at least on or after 455 days after this Act’s enactment. This Act requires a greater-than-majority vote for passage because Article VIII, §§ 10(a), 11(a) of the Delaware Constitution requires the affirmative vote of 3/5 of the members elected to each house of the General Assembly to impose a tax or license fee or increase the effective rate of any tax levied or license fee imposed by the State.

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