Firearms Dealer Requirements & Permit

The bill requires a firearms dealer (dealer) to obtain a state firearms dealer permit (state permit) in order to engage in the business of dealing in firearms other than destructive devices in Colorado. Engaging in the business of dealing in firearms other than destructive devices without a permit is an unclassified felony, punishable by a fine of up to $250,000.

In order to be eligible for issued a state permit, the dealer must hold a federal firearms license; not have had a federal, state, or local license to deal firearms or ammunition revoked, suspended, or denied within the prior 3 years; and not have violated any state or federal law concerning the possession, purchase, or sale of firearms in the 3 years before applying for the license. The department of revenue (department) is responsible for issuing state permits. The fee for issuing a permit is $400, which may be adjusted annually by the department.

The department shall revoke a dealer's state permit if the dealer:

• No longer holds a valid federal firearms license;
• Does not permit a required inspection of the dealer's business or a required record; or
• Is convicted of trafficking in firearms, obtaining a firearm for or transferring a firearm to a person who is ineligible to possess a firearm, or unlawfully selling or transferring a firearm component or accessory.

If the department finds that a dealer failed to post a required notice or make a report about unlawful purchase, report a suspected unlawful purchase, or failed to make a required record, the department shall issue a warning and, for a second or subsequent offense, may revoke the dealer's state permit. If the department finds transferred a firearm without a locking device, or that the dealer has violated other federal, state, or local laws concerning the sale of firearms or firearm components, the department shall:

• For a first offense, issue a warning; and
• For a second offense, issue a warning, suspend the dealer's permit, or revoke the dealer's state permit.

The denial or revocation of a permit is subject to the requirements of the "State Administrative Procedure Act".

The bill requires a dealer and each employee of a dealer who, in the course of the employee's duties handles or otherwise has access to firearms or processes firearm sales, loans, or transfers (position that involves handling firearms) to annually complete a training course developed or approved by the department. The bill requires a dealer to:

• Secure each firearm in a manner that prevents a customer or other member of the public from accessing or using the firearm, except when the firearm is being shown to a customer, repaired, or otherwise worked on; and
• Report to law enforcement when the dealer suspects an employee is involved in a straw purchase or theft of a firearm.

The bill prohibits a dealer from selling or transferring a firearm outside of the dealer's posted business hours or to a person who the dealer knows or suspects is under the influence of alcohol or a controlled substance.

The bill prohibits a dealer from employing a person in a position that involves handling firearms who is prohibited from possessing a weapon or who has been convicted of a misdemeanor within the 5 previous years that would result in the person being denied transfer of a firearm following a criminal history record check. The bill requires a dealer's employees to annually submit to a criminal history record check once every 3 years . If a dealer knowingly employs a person in a position that involves handling firearms who is ineligible to possess a firearm or employs a person without conducting a required background check of the person, the department shall, for a first offense, issue a warning and for a second offense, issue a warning, suspend the dealer's permit, or revoke the dealer's state permit.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)