An Analysis of the Decline in Gun Dealers: 1994 to 2016

Transcription

1 DECEMBER 2016 A Aalysis of the Declie i Gu Dealers: 1994 to 2016 America oce had more gu dealers tha gas statios. Five states still do. WHEN MEN MURDER WOMEN VIOLENCE POLICY CENTER 1

2 COPYRIGHT AND ACKNOWLEDGMENTS Copyright December 2016 Violece Policy Ceter The Violece Policy Ceter (VPC) is a atioal oprofit educatioal orgaizatio that coducts research ad public educatio o violece i America ad provides iformatio ad aalysis to policymakers, jouralists, advocates, ad the geeral public. This study was fuded with the support of The Herb Block Foudatio ad The Joyce Foudatio. This study was authored by VPC Seior Policy Aalyst Marty Lagley. For a complete list of VPC publicatios with documet liks, please visit To lear more about the Violece Policy Ceter, or to make a tax-deductible cotributio to help support our work, please visit 2 VIOLENCE POLICY CENTER WHEN MEN MURDER WOMEN

3 INTRODUCTION The umber of federally licesed gu dealers i the Uited States has dropped dramatically as a result of licesig reforms implemeted by the Clito Admiistratio, combied with chages to the law made by the 1993 Brady Hadgu Violece Prevetio Act (the Brady Law ) ad the 1994 Violet Crime Cotrol ad Law Eforcemet Act. I additio, gu owership amog the geeral public cotiues to declie, decreasig the demad for firearms. 1 From 1994 to 2016, the umber of Type 1 Federal Firearms Licese (FFL) holders has falle 77 percet as a result of the eforcemet of little-kow provisios of these laws. This report examies the causes ad importace of the drop i gu dealers, details legislative efforts by the gu lobby to reverse the declie, ad offers recommedatios to further improve the regulatio of gu dealers. 1992: WHEN THERE WERE MORE GUN DEALERS THAN GAS STATIONS I 1992 the Violece Policy Ceter (VPC) released More Gu Dealers Tha Gas Statios, a study which focused atioal attetio o abuses of the law by FFL holders as well as lack of eforcemet by the federal Bureau of Alcohol, Tobacco, Firearms ad Explosives (ATF). The study revealed that, at the time of its release, the umber of Americas who possessed a Type 1 FFL the basic federal licese required to sell gus i America outumbered gas statios 245,000 to 210, The Gu Cotrol Act of 1968 (GCA) established the curret federal licesig system for maufacturers, importers, wholesalers, ad dealers of firearms. Uder the GCA, ay perso egaged i the busiess of makig or sellig firearms must be licesed by the federal Bureau of Alcohol, Tobacco, Firearms ad Explosives. A From 1968 to 1993, almost ayoe who was ot prohibited from owig firearms ad had a locatio from which they iteded to coduct busiess icludig their ow home or office could obtai a FFL. For $30 a applicat could receive the three-year licese, allowig the licese holder to ship, trasport, ad receive firearms i iterstate commerce ad egage i retail sales. Licese holders are exempt from may of the restrictios o the sale ad trasfer of firearms that private citizes are subject to uder the GCA. Ulike ordiary citizes, licesees are: able to buy ad sell firearms i iterstate commerce ad receive firearms via commo carrier; able to purchase firearms from wholesalers at discout ad i ulimited quatities; ad, exempt from waitig periods, backgroud checks, licesig, or registratio requiremets. I 1986, Cogress passed the Natioal Rifle Associatio-backed Firearms Owers Protectio Act, which further eased regulatio of licesees ad placed restrictios o ATF s ability to weed out illegitimate gu dealers ad prosecute corrupt dealers. B A B Egaged i the busiess is geerally defied as devotig time, attetio, ad labor to dealig i firearms as a regular course of trade or busiess with the pricipal objective of livelihood ad profit through the repetitive purchase ad resale of firearms USC 921(a)(21). The Firearms Owers Protectio Act curtailed ATF eforcemet activity by: limitig ATF to oe uaouced dealer ispectio per year; reducig recordkeepig requiremets for dealers sellig gus from their persoal collectios; ad, lesseig crimial pealties for dealer violatios. AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016 VIOLENCE POLICY CENTER 1

4 KITCHEN-TABLE DEALERS As a result of the lax requiremets for becomig a firearms dealer, the umber of Type 1 FFLs ballooed from 146,429 i 1975 to 245,000 i The vast majority of these licese holders were what is kow as kitche-table dealers idividuals who coduct busiess out of their homes or offices ad do ot operate actual gu or sportig goods stores. Ad while may kitche-table dealers obtaied the licese merely to ejoy lower prices ad evade the perceived red tape associated with gu purchase laws, others recogized it as a dramatic loophole i federal law that could easily be exploited to facilitate highvolume crimial gu traffickig. LICENSING REFORMS I respose to the widespread abuse of FFLs ad at the urgig of the Violece Policy Ceter, the Clito Admiistratio bega strictly eforcig the requiremet that licese holders be egaged i the busiess of sellig firearms as required by the statute. I additio, the Brady Law implemeted may of the recommedatios the VPC laid out i its 1992 study, icludig: icreasig the dealer licesig fee from $10 per year to $200 for the first three years ad $90 for each additioal three-year period; ad, requirig applicats to certify that they have otified the Chief Law Eforcemet Officer (CLEO) of their locality of their itet to apply for a licese. I 1994, the Violet Crime Cotrol ad Law Eforcemet Act codified a requiremet first implemeted by the Clito Admiistratio requirig applicats to submit photographs ad figerprits, as well as a requiremet that they certify that their busiesses complied with all state ad local laws. 3 I the three years followig these admiistrative ad statutory chages, the eligibility of existig FFL holders was reviewed as licesees applied for reewal of their liceses. FFL holders were required to submit ew applicatio packages with photographs ad figerprits, ad ATF worked with state ad local authorities to verify that licesees were i compliace with local laws ad had otified their local CLEO. 4 THE DROP IN GUN DEALERS As a result of the ew licesig requiremets ad ATF s icreased scrutiy of applicats, the umber of Type 1 FFLs i the Uited States has dropped 77 percet from 245,628 i 1994 to 56,577 i As detailed i the table o the followig page, the five states with the steepest decrease i the umber of dealers were: Massachusetts (90 percet); Califoria (89 percet); Coecticut ad Hawaii (tied at 87 percet); ad, Rhode Islad (86 percet). 5 2 VIOLENCE POLICY CENTER AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016

5 NUMBER AND PERCENT DECREASE OF TYPE 1 FFLS, 1994 TO 2016 C D State Total of Type 1 Federal Firearms Licese (FFL) Holders, 1994 C Total of Type 1 Federal Firearms Licese (FFL) Holders, 2007 D Total of Type 1 Federal Firearms Licese (FFL) Holders, 2016 Number Decrease From 1994 to 2016 Percet Decrease From 1994 to 2016 Alabama 3, ,347 73% Alaska 3, ,540 81% Arizoa 4,178 1,059 1,199 2,979 71% Arkasas 3, ,255 73% Califoria 20,148 2,120 2,200 17,948 89% Colorado 4,248 1,092 1,418 2,830 67% Coecticut 3, ,912 87% Delaware % Florida 9,970 1,270 2,168 7,802 78% Georgia 5,589 1,073 1,363 4,226 76% Hawaii % Idaho 2, ,582 69% Illiois 8,959 1,803 2,074 6,885 77% Idiaa 5,872 1,247 1,425 4,447 76% Iowa 3,877 1,138 1,302 2,575 66% Kasas 3, ,027 2,626 72% Ketucky 4, ,111 3,568 76% Louisiaa 4, ,062 3,802 78% Maie 2, ,744 80% Marylad 3, ,736 85% Massachusetts 3, ,465 90% Michiga 12,076 2,377 2,152 9,924 82% Miesota 5,741 1,483 1,400 4,341 76% Mississippi 3, ,324 75% Missouri 7,624 1,870 1,964 5,660 74% Motaa 3, ,117 69% Nebraska 2, ,001 74% Nevada 1, ,527 78% New Hampshire 1, ,157 74% New Jersey 1, ,306 79% New Mexico 1, ,336 70% New York 9,726 1,843 1,727 7,999 82% C D First year the Violece Policy Ceter coducted a aalysis of the umber of gu dealers followig the release of More Gu Dealers Tha Gas Statios i Most recet year for which the Violece Policy Ceter coducted a aalysis of the umber of gu dealers prior to the release of this study. AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016 VIOLENCE POLICY CENTER 3

6 State Total of Type 1 Federal Firearms Licese (FFL) Holders, 1994 Total of Type 1 Federal Firearms Licese (FFL) Holders, 2007 Total of Type 1 Federal Firearms Licese (FFL) Holders, 2016 Number Decrease From 1994 to 2016 Percet Decrease From 1994 to 2016 North Carolia 6,466 1,327 1,921 4,545 70% North Dakota 1, ,162 72% Ohio 9,464 2,129 2,268 7,196 76% Oklahoma 4, ,191 2,833 70% Orego 4,995 1,368 1,405 3,590 72% Pesylvaia 11,799 2,525 2,548 9,251 78% Rhode Islad % South Carolia 2, ,446 62% South Dakota 1, ,039 68% Teessee 4,736 1,048 1,249 3,487 74% Texas 18,041 3,935 5,106 12,935 72% Utah 2, ,462 69% Vermot 1, ,249 80% Virgiia 6,942 1,353 1,473 5,469 79% Washigto 5, ,001 4,723 83% West Virgiia 3, ,496 77% Wiscosi 5,953 1,474 1,492 4,461 75% Wyomig 1, ,173 68% Total 245,628 50,630 56, ,051 77% Despite these dramatic declies, five states still have more gu dealers tha gas statios (Alaska, Idaho, Motaa, Orego, ad Wyomig). I some cases, substatially more. 4 VIOLENCE POLICY CENTER AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016

7 FIVE STATES STILL HAVE MORE GUN DEALERS THAN GAS STATIONS State Number of Gu Dealers Number of Gas Statios Alabama 888 3,061 Alaska Arizoa 1,199 1,676 Arkasas 841 1,568 Califoria 2,200 8,041 Colorado 1,418 1,618 Coecticut 422 1,056 Delaware Florida 2,168 6,294 Georgia 1,363 5,137 Hawaii Idaho Illiois 2,074 3,915 Idiaa 1,425 2,589 Iowa 1,302 1,819 Kasas 1,027 1,189 Ketucky 1,111 2,157 Louisiaa 1,062 2,480 Maie Marylad 496 1,582 Massachusetts 386 2,035 Michiga 2,152 3,759 Miesota 1,400 2,192 Mississippi 756 2,007 Missouri 1,964 2,857 Motaa Nebraska Nevada New Hampshire New Jersey 339 2,339 New Mexico New York 1,727 4,711 North Carolia 1,921 4,722 North Dakota Ohio 2,268 3,955 Oklahoma 1,191 1,829 Orego 1, Pesylvaia 2,548 3,873 AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016 VIOLENCE POLICY CENTER 5

8 State Number of Gu Dealers Number of Gas Statios Rhode Islad South Carolia 886 2,598 South Dakota Teessee 1,249 3,301 Texas 5,106 11,123 Utah Vermot Virgiia 1,473 3,356 Washigto 1,001 1,992 West Virgiia 738 1,009 Wiscosi 1,492 2,530 Wyomig U.S. Total 56, ,401 E I 2004, Cogress at the behest of the Natioal Rifle Associatio added a provisio to ATF s spedig bills prohibitig the agecy from deyig or refusig to reew a dealer s licese due to a lack of busiess activity. This rule remais i effect to this day. E E Source for gas statio umbers: 2012 Ecoomic Cesus, Geographic Area Series, Retail Trade, U.S. Cesus Bureau, October 9, Icludes gas statios ad gas statios with coveiece stores ad is the most recet data available from the U.S. Cesus ( 6 VIOLENCE POLICY CENTER AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016

9 RECOMMENDATIONS Eve with a atioal drop of 77 percet i the umber of gu dealers, FFLs both kitche-table ad stockig dealers remai a kow source of weapos for crimial gu traffickers. The Violece Policy Ceter recommeds the followig actios: All federally licesed firearms dealers should be required to operate from a storefrot busiess, ot a residece. Liceses should be limited to busiesses devoted primarily to the sale of firearms. Gu shops should be cospicuously idetified to the public as such. This will reduce the umber of dealers ATF must moitor. ATF should have the authority to susped a dealer s licese ad/or assess meaigful civil pealties i additio to revocatio authority whe a dealer violates the law. ATF s ability to ispect a licesee s premises to esure compliace with recordkeepig ad other requiremets should be expaded from oce a year to at least four times per year. The loophole which allows dealers to divert firearms from their busiess ivetory to their persoal collectios ad the sell those gus without performig the Brady backgroud check should be elimiated. Dealers should be required to safely ad securely store their ivetories. Local law eforcemet agecies ad regulators should closely moitor dealers i their areas to esure that they are i compliace with all applicable local laws icludig busiess licesig, zoig, ad ay pertiet local firearm restrictios such as bas o assault weapos ad armor-piercig ammuitio. Cogress should rescid the provisio icluded i ATF s spedig authorizatio prohibitig the agecy from deyig liceses to persos who do ot meet the egaged i the busiess test for busiess activity. AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016 VIOLENCE POLICY CENTER 7

10 APPENDIX: TYPE 1 FFLS BY STATE PER 100,000 POPULATION Rak State Populatio Type 1 FFLs Type 1 FFLs per 100,000 populatio 1 Wyomig 586, Motaa 1,032, Alaska 738, North Dakota 756, South Dakota 858, Vermot 626, Idaho 1,654, Iowa 3,123,899 1, West Virgiia 1,844, Nebraska 1,896, Kasas 2,911,641 1, Orego 4,028,977 1, Maie 1,329, Missouri 6,083,672 1, New Hampshire 1,330, Oklahoma 3,911,338 1, Arkasas 2,978, New Mexico 2,085, Colorado 5,456,574 1, Wiscosi 5,771,337 1, Miesota 5,489,594 1, Mississippi 2,992, Ketucky 4,425,092 1, Louisiaa 4,670,724 1, Utah 2,995, Michiga 9,922,576 2, Idiaa 6,619,680 1, Pesylvaia 12,802,503 2, Ohio 11,613,423 2, North Carolia 10,042,802 1, Teessee 6,600,299 1, Texas 27,469,114 5, Alabama 4,858, South Carolia 4,896, Virgiia 8,382,993 1, Arizoa 6,828,065 1, Illiois 12,859,995 2, Nevada 2,890, VIOLENCE POLICY CENTER AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016

11 Rak State Populatio Type 1 FFLs Type 1 FFLs per 100,000 populatio 39 Washigto 7,170,351 1, Delaware 945, Georgia 10,214,860 1, Coecticut 3,590, Florida 20,271,272 2, New York 19,795,791 1, Marylad 6,006, Hawaii 1,431, Rhode Islad 1,056, Massachusetts 6,794, Califoria 39,144,818 2, New Jersey 8,958, U.S. Total 320,746,592 56, AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016 VIOLENCE POLICY CENTER 9

12 ENDNOTES 1. Accordig to data from the Natioal Opiio Research Ceter (NORC) at the Uiversity of Chicago, durig the period 1972 to 2016 the percetage of America households that reported havig ay gus i the home has dropped more tha 21 percetage poits: from a high of 53.7 percet i 1977 to 32.4 percet i For more iformatio, see the 2015 Violece Policy Ceter publicatio A Shrikig Miority: The Cotiuig Declie of Gu Owership i America ( 2. More Gu Dealers Tha Gas Statios: A Study of Federally Licesed Firearms Dealers i America (Washigto, DC: Violece Policy Ceter, 1992): Commerce i Firearms i the Uited States (Washigto, DC: Bureau of Alcohol, Tobacco ad Firearms, February 2000): Commerce i Firearms i the Uited States (Washigto, DC: Bureau of Alcohol, Tobacco ad Firearms, February 2000): Bureau of Alcohol, Tobacco, Firearms ad Explosives data. 10 VIOLENCE POLICY CENTER AN ANALYSIS OF THE DECLINE IN GUN DEALERS: 1994 TO 2016

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