House Passes Legislation to Enhance Firearm Dealer Oversight in Delaware

DOVER – Continuing efforts to improve public safety and keep firearms out of the hands of those who aim to do harm to themselves or others, the House passed Senate Substitute 1 for Bill 300 on Thursday.

This legislation, sponsored by Rep. Mara Gorman and Senate President Pro Tempore Dave Sokola, would bolster Delaware’s oversight of firearm dealers by implementing an enhanced licensing system with stricter inspection, reporting, and security requirements.

“SB 300 is about accountability, responsibility, public safety, and prevention,” said Rep. Mara Gorman, House Prime Sponsor of SB 300. 

“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. It’s time to close this gap in our state law, and add one more layer of protection against deadly weapons for all Delawareans.”

Firearm dealers are currently required to hold a federal license, and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), is responsible for their oversight. However, ATF is chronically understaffed. A 2023 DOJ Inspector General report found that over 2,000 active dealers had gone more than a decade without a single compliance inspection — and ATF revokes less than 1% of dealer licenses annually, even when serious violations are found.

SS 1 for SB 300 would address this gap by establishing baseline standards for dealers who sell or transfer more than 10 firearms per year. These standards would include requirements for security measures such as alarms and digital surveillance, secure storage, and prompt reporting of lost or stolen firearms. 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 violations or serious violations.

In preparing the final version of this bill, Sen. Sokola and Rep. Gorman worked with representatives from the Delaware State Sportsmen Association, the National Rifle Association, and the House Minority Caucus to develop House Amendment 15.

The key changes reflected in the amendment include:

• Clarifying that licensed firearm dealers may continue participating in gun shows and similar events.
• Creating a framework for the State Police to promulgate regulations in accordance with the Administrative Procedures Act (which requires public meetings with notice) that take into account industry standards and best practices. The State Police must also consult with stakeholders, industry representatives, trade associations, and advocacy organizations when developing those regulations.
• Allowing firearm dealers to use surveillance footage and images to defend themselves in legal proceedings or regulatory actions. 
• Clarifying the definition of “transfer” to ensure it does not include temporary loans, temporary transfers, or transfers for repair and service (this means that gunsmithing and firearm repairs are not impacted by the bill).

Importantly, the amendment clarifies that this legislation does not enable or create a 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. By holding gun dealers accountable, we will save lives in Delaware and throughout our region,” said Senate President Pro Tempore Dave Sokola, Prime Sponsor of SB 300.

“Thank you to my House sponsor Rep. Mara Gorman for shepherding this legislation through the chamber, and to the countless advocates, like those at Brady United, who have been steadfast in their unwavering support of this commonsense piece of legislation. Together, our efforts will help save lives.”

If adopted, SB 300 (S) would take effect in 2029.

SB 300(S) now heads back to the Senate for final consideration.

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