Requirements for Firearms Dealers

Under existing law, a firearms dealer (dealer) must obtain a state permit in order to engage in the business of dealing in firearms. The bill clarifies that a state permit is required for a dealer to transfer firearms.

Under existing law, in order to be issued a state permit, a dealer must not have had a firearms dealer license or permit or a firearm possession permit revoked, suspended, or denied for good cause within 3 years before submitting a state permit application (prior license requirement) and must not have violated any state or federal law concerning the possession, purchase, or sale of firearms in the 3 years before applying for the state permit (prior violation requirement). The bill clarifies that the prior license and prior violation requirements apply to an individual possessing, directly or indirectly, the power to direct or cause the direction of the management and policies of the dealer, known as a "responsible person" of the dealer. The bill makes the dealer training requirements apply to responsible persons.

The bill makes provisions related to a dealer's employees who handle firearms also apply to any individual, including an independent contractor, who performs an employee's duties, whether paid or unpaid.

The bill permits the department of revenue (department) to fine a dealer up to $100,000 for a second or subsequent violation of certain dealer requirements.

Under existing state law, dealers are subject to record-keeping requirements involving pistols and revolvers sold, rented, or exchanged at retail. The bill makes the record-keeping requirements apply to all retail transactions involving any firearm other than destructive devices and clarifies that dealers may keep the records electronically.

The bill requires a dealer to secure large-capacity magazines in the dealer's possession. A dealer's place of business must have security features designed to prevent unauthorized entry installed on each exterior door and window of the place of business, have interior lighting that is sufficient to identify characteristics of a person on surveillance video, and be equipped with a security alarm system that includes video surveillance of each door and any area of the business in which firearms are kept. The bill requires a dealer to report the theft or loss of a firearm to the department.

(Note: This summary applies to this bill as introduced.)