HB 1126 — Requirements for Firearms Dealers

or violated any otherfederal provisionlaw ofor thisrule articleconcerning 12the orsale anyof otherfirearms state or localfirearm lawcomponents concerningfor which the salepenalty includes potential revocation of firearms;the person's federal firearms license, the department shall:

or violated any -4- 1126 federallaworruleconcerningthesaleoffirearmsorfirearmcomponents forwhichthepenaltyincludespotentialrevocationoftheperson'sfederal firearms license, the department shall:

(A) IssueawarningtothedealerthatincludesadescriptionoftheIssue a warning to the dealer that includes a description of the offense and the penalty for subsequent offenses;

(B) F OR A SECOND OR SUBSEQUENT OFFENSE COMMITTED ON OR AFTER JANUARY 1,1,2027, 2027, IMPOSE AAFINE FINEOFUPTOSEVENTY OF-FIVETHOUSAND UPPAGE TO3-HOUSE SEVENTYBILL FIVE26-1126 THOUSAND DOLLARS IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO SUBSECTION (7.5OF(7.5)OF THIS SECTIO;SECTION;

or (C)(C)(D) (D) Revoke the dealer's state permit.

(7.5) (a) TE DEPARTMENT SHALL ADOPT RULES GOVERNING THE IMPOSITION OF FINES PURSUANT TO SUBSECTION (7)(a)(II)(OF(7)(a)(II)(B)OF THIS SECTION .THE RULESMUST INCLUDE CATEGORIES OFVIOLATIONS BASEDON THE SEVERITY OF THE OFFENSE ,FINE RANGES ASSOCIATED WITH EACH CATEGORY ,ANDAGGRAVATINGANDMITIGATINGFACTORSTHEDEPARTMENT SHALL CONSIDER WHEN DETERMINING FINE AMOUNTS .

(b) T HE RULESDEPARTMENT MUSTSHALL INCLUDETRANSMIT CATEGORIESALL OFFINES VIOLATIONSCOLLECTED BASEDPURSUANT ONTO THETHIS SEVERITYSECTION OFTHETO OFFENSE,FINETHE RANGESSTATE ASSOCIATEDTREASURER WITH,WHO EACHSHALL CATEGORYCREDIT ,THE ANDMONEY AGGRAVATINGTO ANDTHE MITIGATINGFIREARM FACTORSDEALER THEPERMIT DEPARTMENTCASH SHALLFUND CONSIDERCREATED WHENIN DETERMININGSUBSECTION FINE(2)(d)OF AMOUNTSTHIS SECTION .

(b) T HE DEPARTMENT SHALL TRANSMIT ALL FINES COLLECTED PURSUANT TO THIS SECTION TO3. THE STATE TREASURER , WHO SHALL CREDITTHEMONEYTOTHEFIREARMDEALERPERMITCASHFUNDCREATED IN SUBSECTION (2)(dOF THIS SECTIO.

SECTION3.In Colorado Revised Statutes, amend 18-12-402 as follows:

InColoradoRevisedStatutes,amend18-12-402as follows:

(1) Everyindividual,firm,orcorporationALEREvery engaged,withinindividual, -5-firm, 1126or corporationLER engaged, within this state, in thetheetailTRANSACTIONS reTRANSACTIONS, ,INCLUDINGINCLUDING THE sale, rental, or exchange, OR TRANSFER,TRANSFER , of firearms pistols, or revoOTHERrevolverOTHER THAN DESTRUCTIVEDEVICESDESTRUCTIVE shallkeeparecordofeachpistolorrevolversold,DEVICES rented,orexchangedatretailIREARMTRANSACTIONCONDUCTEDBYTHEshall DEALERkeep ,OTHERa THANrecord TRANSACTIONSof SOLELYeach INVOLVINGpistol DESTRUCTIVEor DEVICESrevolver .Therecordmustbemadeatthetimeofthetransactioninabooksold, ORrented, ELECTRONICor RECORDexchanged keptat forretaFIREARM thatTRANSACTION purpose.CONDUCTED BY THE DEALER , OTHER THAN TRANSACTIONS SOLELY INVOLVING DESTRUCTIVE DEVICES .

andThe (2)record THEmust RECORDbe REQUIREDmade INat THISthe SECTIONmusttime include:of the transaction in a book OR ELECTRONIC RECORD kept for that purpose.

(a)and The(2) nameTHE ofRECORD theREQUIRED personIN toTHIS whomSECTION themust pistolinclude: or revolver is sold or rented or with whom exchanged;

his(a) orThe herTHATname RECEIVEDof THEthe FIREARMANDTHERECIPIENTperson Sageoccupation,residence,and,ifresidingto inwhomthe apistol city,or therevolver streetis andsold numberor thereinrented where he or shewith rANDdeswhom ADDRESSexchanged; ;

(b)his Theor make,herTHAT caliber,RECEIVED THE FIREARM AND THE RECIPIENT 'S age occupation, residence, and, if residing in a city, the street and finishnumber oftherein saidwhere pistolhe or revolver,she togetherresidAND withADDRESS itsE; FIREARM;

(c)PAGE THE4-HOUSE FIREARMBILL Snumber26-1126 (b) The make, caliber, and serialfinish letter,of ifsaid any;pistol or revolver, together with itsTHE FIREARM ;

(d)(c) TheTHE dateFIREARM ofS thenumber sale,and rental,serial orletter, exchangeif ofany; said pistol or revolverTRANSACTION ;

and(d) (e)Thedateofthesale,rental,orexchangeofsaidpistolorrevolver The name of the employee or other person making such sale, rental, or exchangeAT CONDUCTED THE TRANSACTION .;

(3)and (e) The recordname bookof shallthe beemployee openDEALERor SHALLother MAKEperson THEmaking RECORDSsuch DESCRIBEDsale, INrental, THISor SECTIONexchangeTHAT AVAILABLEatCONDUCTED allTHE timesTRANSACTION to. FOR inspection of anyY Aduly authorized poliPEACE officer.

(4)(3) THEDEPARTMENTANDANYOTHERSTATEAGENCYSHALLNOTThe USErecord THEbook INFORMATIONshall OBTAINEDbe FROMopen DEALER SHALL MAKE THE RECORDS TODESCRIBED CREATEIN ORTHIS MAINTAINSECTION AVAILABLE at all times to thFOR inspection of anyBY A REGISTRYduly IDENTIFYINGauthorized FIREARMpolicePEACE OWNERSHIP.officer.

SECTION4.(4) T HE DEPARTMENT AND ANY OTHER STATE AGENCY SHALL NOT USE THE INFORMATION OBTAINED FROM DEALER RECORDS TO CREATE OR MAINTAIN A REGISTRY IDENTIFYING FIREARM OWNERSHIP .

InColoradoRevisedStatutes,amend18-12-403asSECTION -6-4. 1126 follows:

In Colorado Revised Statutes, amend 18-12-403 as follows:

Everyindividual,firm,orcorporationEALEREvery whofailstokeepindividual, therecordrequiredpursuanttosection18-12-402orsection18-12-111.5firm, or corporation DEALER who fails to keep the record required pursuant to section 18-12-402 or section 18-12-111.5 (7)(b), or who refuses to exhibit the record when requested by a police PEACE officer, and any purchaser, lessee, or exchanger of a pistol or revolverFIREARMrevolver FIREARM who, in connection with the making of sucTHEsuch THE record, gives false information, commits a class 2 misdemeanor.

In Colorado Revised Statutes, 18-12-406, amend (1)(a)(1)(a)introductoryportion,(1)(a)(VIII),(1)(b),(1)(c),(2),and(6);andadd introductory(2.5) portion,and (1)(a)(VIII),(4.5) (1)(b),as (1)(c),follows: (2), and (6);

and add (2.5) and (4.5) as follows:

(1) (a) The department shall develop training or approve training coursesprovidedbyotherentitiesfordealers,PONSIBLEPERSONS,andPAGE 5-HOUSE BILL 26-1126 courses provided by other entities for dealersRESPONSIBLE PERSONS , and dealers' employees.

The training must be available in an online format and include an examination with at least twenty questions derived from the course material and intended to confirm that a course participant understandsunderstandstheinformationcoveredinthecourse.Thedepartment,orother trainerconductingthetraining,shallgivea COURSE participantwhoanswers at least seventy percent of the informationexamination coveredquestions incorrectly a printable certificate of completion that is valid for one year after the course.date of completion.

The department, or othertrainerconductingthetraining,shallgiveaSE participantwho answers at least seventypercent of the examination questions correctlya printable certificate of completion that is valid for one year after the date of completion.

(VIII) EffectivelyachingEffectively Teaching consumers rules of firearm safety, including the safe handling and storage of firearms;

and -7- 1126 (b) A dealer,AND EACH RESPONSIBLE PERSON OFOFTHE THE DEALER WHO ,IN, THEINTHECOURSEOFTHEIRDUTIES COURSE,HANDLESFIREARMS OF;PROCESSESTHESALE THEIR, DUTIE,HANDLESLOAN FIREARMS,ORTRANSFEROFFIREARMS ;PROCESSES;OROTHERWISEHASACCESSTOFIREARMS THE SALE,LOAN ,OR TRANSFER OFFIREARMS ;OR OTHERWISE HAS ACCESS TO FIREARMS , shall, within thirty days after the date the permit is issued andannuallythereafter,completeatrainingcoursedevelopedorapprovedand annually thereafter, complete a training course developed or approved by the department pursuant to this subsection (1).

(c)(c)(I) (I)Anemployeeof Anadealerwho,inthecourseof employeetheemployee's ofduties,handlesfirearms;processesthesale,loan,ortransferof afirearms;or dealerotherwise who,has inaccess to firearms shall, within thirty days after the employee'sfirstdayofworkforthedealerandannuallythereafter,complete a training course ofdeveloped theor employee'sapproved duties,bythe handlesdepartment firearms;pursuant to this subsection (1).

processes the sale, loan, or transfer of firearms;

or otherwise has access to firearms within thirty days after the employee's first day of work for the dealer and annually thereafter, complete a training course developed or approved by the department pursuant to this subsection (1).

or otherwise has access to firearms, who is employed byadealeronJuly1,by 2025,a shalldealer completeon theJuly employee's1, first2025,shallcompletetheemployee'sfirsttrainingcoursenolaterthanthirty training course no later than thirty days after July 1, 2025.

(II) A dealer shall maintain the training records ofCHof RESPONSIBLEPERSONOFTHEDEALERANDEACH eachemployeeandshallmakeRESPONSIBLE therecordsavailabletothedepartmentduringanon-siteinspectionofthePERSON OF THE DEALER AND each employee and shall make the records available to the department during an on-site inspection of the dealer's place of business.

(a) The dealer secures each firearm, except when the firearm is beingshowntoacustomer,repaired,orotherwiseworkedon,inamannerPAGE 6-HOUSE BILL 26-1126 being shown to a customer, repaired, or otherwise worked on, in a manner that prevents unauthorized use of the firearm.

Securing a firearm may include keeping the firearm in a locked container, including a locked displaycase;properlyinstallingalockingdeviceonthefirearm;or,ifdisplay thecase; -8- 1126 firearm is a personalized firearm, activating the safety characteristics of the firearm.

(b)properly THEinstalling DEALERa SECURESlocking EACHdevice LARGEon -CAPACITYthe MAGAZINEfirearm; IN THE DEALER S POSSESSION BEHIND A COUNTER ,IN AN ENCLOSED AND LOCKED DISPLAY CASE ,OR IN A LOCKED ROOM INACCESSIBLE TO THE PUBLIC,EXCEPT WHEN THE LARGE CAPACITY MAGAZINE IS BEING SHOWN TOACUSTOMERPERMITTEDTOPURCHASEALARGE -CAPACITYMAGAZINE PURSUANT TO SECTION 18-12-302OR IS BEING REPAIRED OR OTHERWISE WORKED ON ;

ANDor, (c)if BEGINNINGOthe CTOBERfirearmisapersonalizedfirearm,activatingthesafetycharacteristicsofthe 1,2027,THEDEALERHASIMPLEMENTEDfirearm. SECURITY MEASURES IN COMPLIANCE WITH THE DEPARTMENT 'S RULES ADOPTEDPURSUANTTOSUBSECTION (2.5)(aOFTHISSECTIONANDASSET FORTH IN THE DEALERS COMPREHENSIVE SECURITY PLAN SUBMITTED TO THE DEPARTMENT PURSUANT TO SUBSECTION (2.5)(bOF THIS SECTIO.

(2.5)(b) (a)THEDEALERSECURESEACHLARGE ONCAPACITYMAGAZINE ORINTHE BEFOREDEALER JANUARYS 1,POSSESSION 2027THEBEHIND DEPARTMENTA SHALLCOUNTER ADOPT,IN RULESAN REQUIRINGENCLOSED SECURITYAND MEASURESLOCKED FORDISPLAYCASE A,ORINALOCKEDROOMINACCESSIBLETOTHEPUBLIC DEALER,EXCEPT SWHEN PLACEOFBUSINESSTOPROTECTPERSONNELTHE ,CUSTOMERSLARGE ,FIREARMS,AND-CAPACITY AMMUNITIONMAGAZINE ,ANDTOPREVENTUNAUTHORIZEDENTRYIS .THEDEPARTMENTBEING MAYSHOWN CONSIDERTO ,A ANDCUSTOMER SETPERMITTED DIFFERENTTO STANDARDSPURCHASE BASEDA ONLARGE ,-CAPACITY THEMAGAZINE CHARACTERISTICSPURSUANT OFTO ASECTION PLACE18-12-302 OFORISBEINGREPAIREDOROTHERWISEWORKEDON BUSINE.S;AND (b)(c) ABEGINNING DEALEROCTOBER SHALL1, SUBMIT2027,THE ADEALER COMPREHENSIVEHAS IMPLEMENTED SECURITY PLANMEASURES TOIN THECOMPLIANCE DEPARTMENTWITH THAT DEMONSTRATES THE SECURITYDEPARTMENT MEASURESS THATTHEDEALERWILLIMPLEMENTTOCOMPLYWITHTHERULESADOPTEDRULES ADOPTED PURSUANT TO THIS SUBSECTION (2.5).HE(2.5)(a)OF DEPARTMENTTHIS MAYSECTION PROVIDEAND FEEDBACKTOADEALERONASUBMITTEDPLANAS .IFADEALERUPDATESITSSET PLANATANYTIMEFORTHINTHEDEALER ,THEDEALERSHALLSUBMITTHEUPDATEDPLANTOTHESCOMPREHENSIVESECURITYPLANSUBMITTEDTOTHE DEPARTMENT .PURSUANT TO SUBSECTION (2.5)(bOF THIS SECTION.

-9-(2.5) 1126(a) 2O (4.5)OR ADEALERBEFORE SHALLJANUARY REPORT1,2027,THE THEDEPARTMENT THEFTSHALL ORADOPT LOSSRULES OFREQUIRING ASECURITY FIREARMMEASURES FROMFOR THEA DEALER S INVENTORYPLACE OF BUSINESS TO THEPROTECT PERSONNEL , CUSTOMERS , FIREARMS , AND AMMUNITION ,AND TO PREVENT UNAUTHORIZED ENTRY .THE DEPARTMENT WITHINMAY FORTYCONSIDER EIGHT, HOURSAND AFTERSET LEARNINGDIFFERENT OFSTANDARDS BASED ON , THE THEFTCHARACTERISTICS OROF LOS.A PLACE OF BUSINESS.

(6)(b) A violationDEALER ofSHALL anySUBMIT provisionA ofCOMPREHENSIVE thisSECURITY sectionPLAN byTO aTHEDEPARTMENTTHATDEMONSTRATESTHESECURITYMEASURESTHATTHE dealerDEALERWILLIMPLEMENTTOCOMPLYWITHTHERULESADOPTEDPURSUANT violationofTO stateTHIS lawSUBSECTION concerning(2.5). the sale of firearmsandissubjecttothe penalties described in section 18-12-401.5 (7).

SECTIONHE 6.DEPARTMENT MAY PROVIDE FEEDBACK TO A DEALER ON A SUBMITTED PLAN .F A DEALER UPDATES ITS PLAN AT ANY TIME,THEDEALERSHALLSUBMITTHEUPDATEDPLANTOTHEDEPARTMENT .

In(4.5) ColoradoA RevisedDEALER Statutes,SHALL 18-12-407,REPORT amendTHE (1)THEFT introductoryOR portionLOSS asOF follows:A FIREARM FROMTHEDEALER 'SINVENTORYTOTHEDEPARTMENTWITHINFORTY -EIGHT HOURS AFTER LEARNING OF THE THEFT OR LOSS .

(6) A violation of any provision of this section by a dealera violation of state law concerning the sale of firearms and is subject to the PAGE 7-HOUSE BILL 26-1126 penalties described in section 18-12-401.5 (7).

SECTION6.

InColoradoRevisedStatutes,18-12-407,amend(1) introductory portion as follows:

Dealeremployeerequirements-backgroundcheckDealer employee requirements - background check - penalty.

(1) A dealer shall not employONTRACTemployOR CONTRACT WITH a person who, in thethecourseoftheperson'sduties courseASANEMPLOYEEORCONTRACTOR of,handles the person's dutiesEMPLOYEE OR CONTRACTOR , handles firearms;

or otherwise has access to firearms,ho:firearms,AND who:

SECTIONSECTION7. 7.

Applicability.Applicability.(1) Section18-12-401.5(3),Colorado RevisedStatutes,asamendedinsection2ofthisact,appliestoapplications submitted on or after the effective date of this act.

(1)Section(2) 18-12-401.5Section (3),18-12-402, Colorado Revised Statutes, as amended insection2ofin thisact,appliessection 3 of this act, applies to applicationstransactions submittedconducted on or after the effective date of this act.

(2) Section18-12-402,ColoradoRevisedStatutes,asamendedin section 3 of this act, applies to transactions conducted on or after the effective date of this act.

The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsforpreservation of the public peace, health, or safety or for appropriations for PAGE 8-HOUSE BILL 26-1126 the support and maintenance of the departments of the state and state institutions.

-10-____________________________ 1126____________________________ Julie McCluskie James Rashad Coleman, Sr.

SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 9-HOUSE BILL 26-1126