DOVER, Del. — The Delaware House passed legislation Thursday that would create a state licensing system for gun dealers and add new inspection, reporting, training and security requirements.
Senate Substitute 1 for Senate Bill 300 is sponsored by Sen. Dave Sokola and Rep. Mara Gorman. The bill now heads back to the Senate for final consideration.
Supporters say the legislation is meant to strengthen oversight of gun dealers and help keep guns out of the hands of people who may pose a threat to themselves or others.
“SB 300 is about accountability, responsibility, public safety and prevention,” Gorman said. “When we leave gaps in our firearms laws, we are gambling with people’s lives. SB 300 recognizes something most Delawareans already understand: if you are in the business of selling firearms, one of the most dangerous products on the market, there should be basic standards in place to ensure those firearms are stored securely, sold responsibly, and kept out of the wrong hands.”
Gun dealers are currently required to hold a federal license and are overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Supporters of the bill say federal oversight is limited because of staffing challenges. A 2023 U.S. Department of Justice inspector general report found that more than 2,000 active dealers had gone more than a decade without a compliance inspection, and that ATF revokes less than 1 percent of dealer licenses annually, even when serious violations are found.
The bill would establish baseline standards for dealers who sell or transfer more than 10 guns per year. Those standards would include security measures such as alarms, digital surveillance, secure storage and prompt reporting of lost or stolen guns.
Employees would also be required to pass background checks and receive training on identifying straw purchases, detecting trafficking indicators and recognizing signs of self-harm risk.
The Delaware State Police would be required to conduct inspections at least every two years. Most violations would first result in a warning and a chance to come into compliance. Stronger enforcement actions, including license suspension or revocation, would be reserved for repeat or serious violations.
The final version of the bill includes House Amendment 15, which was developed after discussions with representatives from the Delaware State Sportsmen’s Association, the National Rifle Association and the House Minority Caucus.
The amendment clarifies that licensed firearm dealers may continue participating in gun shows and similar events. It also creates a framework for State Police to develop regulations under the Administrative Procedures Act, which requires public meetings and notice. State Police would also have to consult with stakeholders, industry representatives, trade associations and advocacy organizations while developing those regulations.
The amendment also allows gun dealers to use surveillance footage and images to defend themselves in legal proceedings or regulatory actions. It also clarifies that the definition of “transfer” does not include temporary loans, temporary transfers, or transfers for repair and service, meaning gunsmithing and firearm repairs would not be affected.
The amendment says the legislation does not create or authorize a gun registry.
“Today’s vote to strengthen firearm dealer licensing requirements in our state takes the responsible step forward to ensure that guns don’t end up in the wrong hands,” Sokola said. “By holding gun dealers accountable, we will save lives in Delaware and throughout our region.”
If adopted, the bill would take effect in 2029.
