Firearm dealers in Colorado could face significant consequences if a bill currently making its way through the legislature is passed. According to the proposed legislation, these dealers would be mandated to obtain a permit in order to sell guns. Failure to comply with this requirement could result in a hefty fine of up to $250,000 and potentially even felony charges.
The Senate Finance Committee narrowly passed the bill in the early hours of Friday, with just one vote in favor. The General Assembly is set to conclude its regular session on May 8.
The bill mandates that firearm dealers must acquire a state firearm dealer permit to engage in the business of dealing in firearms and other destructive devices, as stated in House Bill 24-1353. Non-compliance with this requirement would result in an unclassified felony charge and a potential fine of up to $250,000.
The bill, which spans 20 pages, has been introduced by Reps. Andrew Boesenecker, D-Fort Collins, and Emily Sirota, D-Denver, along with Sens. Jeff Bridges, D-Greenwood Village, and Dafna Michaelson Jenet, D-Commerce City. If the bill is approved, it would require an expenditure of $724,607 this year, $3.1 million next year, and $2.7 million in fiscal year 2026, as per research conducted by Colorado’s nonpartisan legislative council staff.
The Department of Revenue, the agency in charge of issuing permits, may adjust the permit fee annually. At present, the fee stands at $400.
According to Bridges, liquor stores, restaurants, and hairdressers are required to obtain a state license to operate. He believes that gun stores should also be subject to the same requirement. Bridges emphasizes that this new licensing rule will not have a negative impact on the majority of stores that already comply with state laws. Instead, it aims to ensure that every employee in every store is knowledgeable about and adheres to the state’s laws. By implementing this measure, Bridges asserts that it will contribute to community safety, prevent firearms from falling into the wrong hands, and provide essential oversight for gun stores in Colorado.
The House approved the bill with a vote of 40-21 on April 20, and it was then referred to the Senate Finance Committee on April 22.
“We will continue to fight,” stated Ian Escalante from the Rocky Mountain Gun Owners in a video shared on the organization’s social media platform. “Our utmost priority is to defeat this bill.”
The bill mandates that firearm dealers must possess a federal firearms license in order to obtain a state permit. If a dealer’s license has been denied, suspended, or revoked by any level of government within the past three years, they will be ineligible for the new state permit.
The bill would make it mandatory for dealers and employees to undergo background checks every three years. They would also be required to complete training on various aspects such as preventing theft, identifying “straw purchasers,” recognizing individuals at risk of self-harm, and detecting fraudulent activities. Furthermore, the state would enforce compliance with both state and federal laws by conducting random and regular inspections.
