Michigan Bills That Would Add State Licensing for Firearm Dealers Stalls in Committee

The Michigan Senate Judiciary Committee heard testimony on Senate Bills 853 and 854 on April 28, 2026 and did not take a vote. The bills, introduced March 18 by Democratic senators including Senators Chang, Bayer, Moss, Polehanki, and Santana, would create a new state-level licensing and compliance system for firearm dealers in Michigan on top of the federal licensing already required.

The Republican-controlled House has already declared the bills dead on arrival. Michigan Speaker of the House Matt Hall and Rep. Sarah Lightner, chair of the House Judiciary Committee, have both voiced opposition. Lightner told Michigan Advance the bills violate Michiganders’ constitutional rights and do not address public safety. Without House support, the bills face no realistic path to becoming law in their current form.


Senate Bill 853: State Dealer Licensing

SB 853 adds a new section to Michigan’s existing firearms law requiring any dealer selling firearms in Michigan to obtain a state-issued license in addition to their existing Federal Firearms License.

The cost: $250 per location for an initial license, $200 annually to renew. Each physical location requires its own license.

The timeline: Dealers would need to be licensed 18 months after the state promulgates the initial rules, which must be in place by January 1, 2027.

Employee requirements: Every employee or agent who handles or has access to firearms at the business must be at least 21 years old, legally eligible to possess a firearm, and have no criminal history related to firearms, theft, assault, or violent crime. Dealers must certify this through a signed affidavit.

Annual training: The state would develop or approve a training course covering state and federal firearms law, identifying straw purchasers and trafficking, recognizing individuals who may be attempting illegal purchases or intending self-harm, theft prevention, and safe storage practices. Every dealer and qualifying employee must complete this course and pass a written exam with a score of at least 70 percent. This is required every year.

Record keeping: Dealers must maintain inventory reconciliation records annually and file them with the state.

License revocation: The state may deny, suspend, or revoke a license for violations of the new requirements or failure to maintain proper federal records.


Senate Bill 854: Physical Requirements and Access Restrictions

SB 854 adds operational requirements for licensed dealers. These are the provisions most directly affecting the customer experience and daily store operations.

Firearms storage when closed: Every firearm must be stored in a locked fireproof safe or vault, or secured with a hardened steel rod or cable.

Firearms access when open: All firearms must remain inaccessible to the public unless a customer is in the immediate presence of and under direct supervision of a qualified employee. Customers cannot handle a firearm without a trained employee present.

Ammunition access when open: All ammunition must be locked in a case. Customers cannot access ammunition without asking a qualified employee for assistance.

Video surveillance: Dealers must install and maintain a comprehensive video surveillance system covering all areas where firearms and ammunition are stored, handled, sold, or carried, including counters, safes, vaults, cabinets, entryways, and parking lots. The system must operate continuously during business hours and record on motion detection when closed. Recordings must capture facial features clearly enough to be used in criminal investigations.

Retention: All surveillance footage must be retained for six years and made available to federal, state, or local law enforcement on request.

Security alarm: A professionally installed security alarm system is required.

Inspections: Law enforcement may inspect and search the premises during business hours or any time the dealer or an employee is present. Evidence of violations found during an inspection may be seized.

Criminal history checks: Dealers must conduct criminal background checks on all employees who handle or access firearms, both at hiring and at each annual license renewal.


What This Means in Practice

The combined effect of these two bills on a typical Michigan gun store is significant.

A small dealer with two or three employees would need to pay the licensing fee, put every employee through annual state-approved training and a written exam, install a comprehensive surveillance system that meets specific technical requirements, lock all firearms and ammunition behind counters or in cases, retain six years of video footage, conduct annual inventory reconciliation filed with the state, and open the store to law enforcement inspection on demand.

The surveillance and storage requirements alone represent meaningful capital expenditure, particularly for smaller dealers operating on thin margins. A surveillance system meeting the bill’s specifications, cameras covering all counters, safes, vaults, entryways, and parking lots, with continuous recording capability and six-year retention, is not a consumer-grade installation.

The locked ammunition requirement changes the customer experience in every gun store in Michigan. Currently, many dealers display ammunition accessibly, the way a sporting goods store does. Under SB 854, every box of .22 LR requires a trained employee to retrieve it for the customer.


What Happened at the April 28 Hearing

The Senate Judiciary Committee heard testimony from both sides but did not advance the bills to a floor vote.

Governor Gretchen Whitmer joined a rally on the Capitol steps alongside members of Moms Demand Action, Students Demand Action, and Everytown for Gun Safety, calling for passage of the bills and additional gun violence prevention measures including prohibitions on bump stocks and ghost guns.

Chris Lee, director of government relations for the National Shooting Sports Foundation, testified in opposition, arguing the bills create unnecessary regulatory burdens on an industry already among the most heavily regulated in the country.

The committee’s decision not to vote keeps the bills in limbo. With House Speaker Matt Hall declaring them dead on arrival and the House Judiciary Committee chair on record in opposition, the bills have no clear path forward in the current legislative session.

We will follow this if it develops further.