New Jersey Law Restricts Pawnbrokers from Dealing in Firearms

New Jersey has a law that places restrictions on pawnbrokers when it comes to firearms. Specifically, Section 2C:39-11 of the New Jersey Code of Criminal Justice prohibits pawnbrokers from selling, offering to sell, lending, or giving away any weapon, destructive device, or explosive. This law makes it a third-degree crime for pawnbrokers to engage in these activities.

Background of the Law

The New Jersey legislature enacted Section 2C:39-11 in 1978 as part of a broader effort to regulate the possession and transfer of firearms in the state. Lawmakers recognized that pawnbrokers, given the nature of their business in providing loans in exchange for personal property, could enable the unlawful acquisition of firearms if left unregulated.

Section 2C:39-11 serves as an exception to the general rule that licensed retail firearms dealers can engage in the sale of firearms. By carving pawnbrokers out from this permission, the legislature aimed to prevent scenarios where individuals could easily obtain firearms by pawning an item in exchange.

Main Provisions

Section 2C:39-11 contains two main provisions regarding pawnbrokers and firearms:

1. It is a third-degree crime for a pawnbroker to sell, offer to sell, lend, or give away any firearm, destructive device, or explosive.
2. It is a disorderly persons offense for a pawnbroker to make a loan where the security or collateral for the loan is a handgun, rifle, or shotgun.

The first provision imposes an outright ban on pawnbrokers dealing in the transfer of firearms and explosives. This is the harshest restriction, making such conduct a felony-level offense.

The second provision still prohibits pawnbrokers from accepting firearms as security for loans. However, it carves out an exception to allow loans secured by long guns like rifles and shotguns. Further, it downgrades the offense to a misdemeanor level.

Penalties

As mentioned above, a pawnbroker who sells, offers to sell, lends, or gives away any firearm, destructive device, or explosive is guilty of a third-degree crime. This is the highest level misdemeanor offense in New Jersey, punishable by 3-5 years in prison and fines up to $15,000.

If a pawnbroker accepts a handgun as security for a loan, they are guilty of a disorderly persons offense. This carries up to 6 months in jail and a fine up to $1,000.

Federal Firearms License Needed to Deal in Firearms

Importantly, Section 2C:39-11 applies specifically to pawnbrokers. The law does not override the need for a Federal Firearms License (FFL) for any person or business looking to manufacture, import, or deal in firearms.

Under the federal Gun Control Act, an FFL is required to engage in the commerce of firearms. There are exceptions, such as for private sellers making occasional sales. But in general, one must apply for and obtain an FFL from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to deal in the business of buying and selling firearms.

So Section 2C:39-11 serves more as an additional restriction on pawnbrokers in New Jersey, beyond the existing federal licensing requirements that would already apply.