Dealer Requirements Under the Gun Dealer Licensing Act

Illinois requires certification of federal firearms licenses for the business of selling, leasing, or otherwise transferring firearms unless an exemption applies. The Firearm Dealer License Certification Act (430 ILCS 68, Article 5), enacted in 2019, established the Firearm Dealer License Certification (FDLC) program administered by the Illinois State Police. Unless an exemption applies, FFL holders engaged in the business of selling, leasing, or otherwise transferring firearms in Illinois must obtain an FDLC from the ISP. If the ISP does not issue an initial certificate within 30 days of receiving the license copy and sworn affidavit, the licensee may operate as if a certificate has been granted unless and until the ISP issues a denial.^[1]

Licensing Fees and Categories

The FDLC fee structure distinguishes between two types of licensees:

• Retail location: $1,200 for an initial FDLC and $400 for renewal for an FFL that operates a storefront or other location open to the public for the sale of firearms
• Non-retail location: $300 for an initial FDLC and $100 for renewal for an FFL whose location is not open to the public, such as a residential dealer who conducts transfers with known individuals or by appointment

These fees are in addition to the federal FFL application and renewal fees charged by the ATF. The FDLC must be renewed with each new or renewed FFL, and the ISP may refuse renewal for violations of the certification Act or any law applicable to the sale or transfer of firearms.^[2]

Training Requirements

All owners, agents, and employees of a licensed firearms dealer who are engaged in transferring firearms must complete the ISP application training. Certified licensees and their employees who sell or transfer firearms must receive at least 2 hours of training annually regarding legal requirements and responsible business practices applicable to firearm sales or transfers. The training requirement applies to every person at the dealership who handles firearm transactions, not just the FFL holder of record.^[3]

Safe Storage Plan

As part of the FDLC application, dealers maintaining retail locations must develop and submit a safe storage plan for firearms and ammunition to the ISP. The plan must address storage of firearms and ammunition during retail hours, after closing, and in any off-site storage areas. Firearms in inventory must be stored in a safe, vault, secured room, or locked display, or secured with a trigger lock, cable lock, or similar device that prevents loading, firing, and easy theft. The ISP may reject an inadequate storage plan with a written description of its specific inadequacies, and the dealer must submit a corrected plan within 60 days. The dealer may operate while a plan is on file with the ISP and during the permitted correction periods.^[4]

Electronic Record-Keeping

FDLC-certified dealers operating retail locations must maintain electronic record-keeping systems for inventory tracking. These records must include the make, model, caliber or gauge, and serial number of every firearm in the dealer's inventory. During an inspection, licensees must make all records, documents, and firearms accessible upon request by the ISP or other law enforcement agencies. Federal regulations require licensed dealers to record firearm receipts and dispositions in an A&D (Acquisition and Disposition) record. Illinois requires certified licensees operating retail locations to maintain an electronic inventory record system.^[5]

Legislative Purpose

The Act gave the ISP authority to conduct its own compliance checks, impose conditions on dealer operations, and revoke state certification independently of the federal licensing process.^[6]

Penalties for Operating Without FDLC

Unless an exemption applies, a person who holds a federal firearms license but fails to obtain or maintain a valid FDLC from the ISP may not conduct firearms business in Illinois. Operating without a required FDLC violates 430 ILCS 68. A first violation is a Class A misdemeanor and a second or subsequent violation is a Class 4 felony. ISP may also impose a civil penalty of up to $10,000 per offense after a hearing. The ISP has authority to suspend or revoke an FDLC for violations of state firearms laws, failure to maintain required records, or failure to comply with the safe storage plan. A dealer whose FDLC is revoked may not continue to operate even if their federal FFL remains active.^[7]

See also: How to Obtain a Firearm Dealer License Certification (FDLC)

See also: Buying a Handgun in Illinois: Step-by-Step