Synopsis
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