Oregon Proposes New Regulatory Framework for Firearms Dealers

The Oregon House Judiciary Committee has advanced legislation that would establish a comprehensive state licensing program for firearms dealers. The committee approved House Bill 3076 on April 8, sending it to the full House for consideration.

The 27-page proposal has generated significant opposition from Second Amendment advocacy groups, who argue the requirements are excessively burdensome. The Oregon Firearms Federation has expressed concerns that the legislation creates "absurd and draconian new restrictions" designed to reduce the number of operational firearms businesses in the state.

Under the proposed licensing framework, dealers would be required to:

• Obtain a three-year state license with fees up to $1,500
• Maintain a $1 million insurance policy
• Face potential civil penalties up to $5,000 per violation
• Submit to state inspections at least every three years

The bill includes provisions allowing fee increases of up to 20% annually.

Additionally, the legislation would impose new operational requirements on all firearms retailers, including home-based Federal Firearms License (FFL) holders. Dealers would need to implement digital surveillance systems recording all customer interactions on the premises, with specific video documentation of firearms transfers. These recordings would require three-year retention.

Staff requirements would also increase substantially. Any employee handling firearms or ammunition would need to complete state-certified training (which has yet to be developed), with annual refresher courses. All employees would undergo fingerprint-based background checks with periodic rechecks.

Record-keeping mandates would expand for dealers selling more than 10 firearms annually, requiring electronic systems with daily off-site backups. Beyond federal documentation requirements, dealers would need to record detailed transaction information including serial numbers, sale dates, purchaser identification, and permit details.

A companion bill, HB 3075, proposes significant increases to Oregon's permit-to-purchase fees - raising the initial permit cost from $65 to $150 and renewal fees from $50 to $110.

Gun rights advocates warn these combined measures could severely restrict firearm purchases throughout Oregon.

Democrats maintain strong majorities in the Oregon Legislature, likely ensuring passage of these proposals. Governor Tina Kotek, who received substantial campaign support from gun safety organizations during her 2022 election, has previously signed gun control legislation that critics have characterized as poorly drafted.