| Summary |
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 in Colorado. Engaging in the business of dealing in
firearms without a permit is an unclassified felony, punishable by a fine
of up to $250,000. In order to be eligible for 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:
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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
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 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, 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 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 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. If a dealer employs a person 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, revoke the dealer's
state permit.
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