SPRINGFIELD, Ill. (WAND) — A new report shows nearly 230 Illinoisans hold a federal license to manufacture guns, but few actually produce them. The National Violence Policy Center is concerned that these people are evading gun laws and buying weapons in bulk.

People with Type 07 federal firearms licenses can bypass background checks and sell guns in interstate commerce by common carriers. The Violence Policy Center found 82% of license holders in Illinois did not report producing any guns in 2022. 

VPC Executive Director Josh Sugarmann told WAND News roughly a third of non-manufacturing licensees appear to be located in residential homes.

"We believe that most Illinois residents, probably like residents of most states, would like to know if their next-door neighbor is a gun manufacturer and if their kids walking to school are walking by what is registered as a manufacturing site for firearms," Sugarmann said.

However, the Illinois State Rifle Association said these are law-abiding citizens. ISRA Executive Director Richard Pearson said anyone designing firearms, looking for a patent, or repairing guns for police departments needs the license.

"They have to submit fingerprints to the FBI," Pearson said. "They're constantly checked by the FBI. There's actually nothing wrong with what they're doing."

Yet, there is minimal federal oversight for Type 007 FFL holders. Anyone with this license could pay additional fees to the federal government to get fully automatic machine guns.

"The license is not designed for tinkerers or those who just want to have it as a coupon to obtain guns at discount," Sugarmann said. "Under federal law, the definition of engaged in the business is very clear. It's that you're dedicating time and attention as an ongoing business concern with the goal of making a living and gaining profit."

Sugarmann said Illinois lawmakers and local governments should identify ways to confirm license holders are obeying all state and local requirements, along with business and zoning regulations. He also urged state agencies to review their business databases to ensure all Type 07 FFL holders have obtained a business license and are listed with all relevant information on publicly available online resources.

Pearson argued the Violence Policy Center is trying to create a new problem to force people out of business.

"Illinois put so many restrictions on a business, like having cameras and all kinds of things that aren't actually necessary if you're just working on a firearm or two," Pearson said. "So, they were forced into going into their homes and that sort of thing."

You can find an interactive map showing Type 07 FFL holders in Illinois and the full VPC report by clicking here.

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