New Everytown Report Provides Roadmap for States to Ensure Local Gun Dealers are Adequately Regulated

NEW YORK – Everytown for Gun Safety Action Fund today released a new report outlining the ways in which States can strengthen regulation and oversight of local gun dealers, just one week after the Department of Justice repealed the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s “zero tolerance” policy – despite its proven efficacy in shuttering dangerous gun dealers.

“The loss of the ATF’s ‘zero tolerance’ policy was a win for the gun industry, to be sure – but it is not insurmountable. States have the power and authority to keep bad apple firearm dealers in check,” said Nick Suplina, Senior Vice President for Law and Policy at Everytown for Gun Safety. “State leaders can hold gun dealers accountable, keep their communities safe and protect law enforcement – but only if they choose to step up to meet this moment.”

“State leaders are on the frontlines of our gun violence crisis, and with this report we have provided them a roadmap for protecting communities from bad apple gun dealers, especially when the federal government fails to do so,” said Monisha Henley, Senior Vice President for Government Affairs at Everytown for Gun Safety. “Strong state gun dealer licensing systems absolutely can and should stand in for federal regulation.”

The Department of Justice recently repealed the common sense federal “zero tolerance” policy – despite it shuttering hundreds of dangerous gun dealers – making it harder for the ATF to carry out its law enforcement mission. First announced in June 2021, the “zero tolerance” policy tasked the ATF with revoking the licenses of gun dealers who willfully violate federal law, including by transferring a firearm to a prohibited person, failing to run a required background check, falsifying records, failing to respond to an ATF crime gun tracing request, or refusing to permit the ATF to conduct an inspection. 

After the “zero tolerance” policy was implemented, the number of inspections where the ATF found qualifying violations – or those warranting revocation – dramatically increased. From July 2021 through 2024, ATF inspections identified 1,087 FFLs with qualifying violations of law, resulting in 642 license revocations or voluntary surrenders of licenses. More on the dangers of the decision to repeal the policy can be found here.

But according to Everytown’s new report, strong state dealer licensing systems can fill in for an inadequate federal system – and protect the public more robustly than federal officials are able or willing to do by giving state authorities the power to oversee dealers and enforce strong rules. What’s more, state dealer regimes can help enforce and complement other gun safety laws and programs, with dealers helping to ensure that purchasers comply with gun laws and educating them about responsible gun ownership policies. Even where it may not be politically feasible to enact a full dealer licensing system, states can still take action to regulate dangerous dealer behavior. 

According to the report, key elements of state-level gun dealer oversight include:

• Requiring gun dealers to obtain a state license in addition to the license required by federal law, and prohibiting issuance of a license to a person who is prohibited from having guns under federal or state law, who has previously had a gun dealer license revoked (absent extenuating circumstances), or where the issuance of the license would be a danger to public safety.  
• Requiring gun dealers to implement security measures to prevent theft, including locking gun stores at all times when the business is closed, physically securing guns on the business premises, and utilizing alarm and video surveillance systems. 
• Mandating periodic background checks and training for gun dealers and their employees. 
• Authorizing a state agency or local law enforcement to conduct regular compliance inspections of gun dealers. 
• Requiring gun dealers to send records of all gun sales to state officials for retention.  
• Authorizing disciplinary action against gun dealers who violate the law, including suspension and revocation of state license in specified circumstances.
• Requiring gun dealers to provide information to gun buyers at the point of sale about secure storage, suicide prevention, and the risks associated with firearm ownership.
• Establishing a minimal threshold for responsible business conduct by gun dealers and allowing for civil liability if their firearms cause harm.
• Requiring authorities to prepare an annual report that includes information on dealer applications, inspections, and disciplinary actions. 

Per Everytown’s report, a growing body of evidence demonstrates that gun dealers’ sales practices affect the probability of guns getting to traffickers and that policies designed to hold dealers accountable can curtail the diversion of guns from the legal market. One study found that in-state trafficking was 64 percent lower in places with strong gun dealer regulations and oversight, and ATF data shows that gun dealers lose over seven times more guns to robberies in states without dealer licensing laws. Another study found that state licensing requirements and laws requiring or allowing inspections or audits of gun dealers were independently associated with significantly lower firearm homicide rates.

State policymakers have far more latitude to regulate gun dealers than ATF does, and state leaders in gun safety are actively using their authority to regulate the gun industry and fight for public safety. This work and the tactics outlined in today’s report provide a major opportunity for innovators and leaders facing a new federal Administration dead-set on unwinding common-sense protections – and they should make it an imperative to ramp up oversight of gun dealers.   

To speak with an expert at Everytown for Gun Safety, please contact [email protected].

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