Back to Colorado

HB26-1126 • 2026

Requirements for Firearms Dealers

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

Children Elections Firearms Labor Small Business
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. E. Sirota, Rep. S. Woodrow, Sen. C. Kipp, Rep. J. Bacon, Rep. A. Boesenecker, Rep. K. Brown, Rep. S. Camacho, Rep. C. Espenoza, Rep. M. Froelich, Rep. L. García, Rep. L. Gilchrist, Rep. J. Joseph, Rep. M. Lindsay, Rep. K. McCormick, Rep. K. Nguyen, Rep. M. Rutinel, Rep. L. Smith, Rep. R. Stewart, Rep. T. Story, Rep. J. Willford, Rep. Y. Zokaie, Sen. J. Amabile, Sen. A. Benavidez, Sen. J. Coleman, Sen. L. Cutter, Sen. J. Danielson, Sen. L. Daugherty, Sen. J. Gonzales, Sen. I. Jodeh, Sen. C. Kolker, Sen. W. Lindstedt, Sen. T. Sullivan, Sen. K. Wallace, Sen. M. Weissman
Last action
2026-06-02
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

New Rules for Firearms Dealers and Their Staff

This law requires firearms dealers to get a state permit, follow new security rules, keep better records, and report lost or stolen guns within two days.

What This Bill Does

  • Requires responsible persons of a dealer to meet past license and violation checks before getting a permit.
  • Makes training rules apply to managers who handle firearms or process sales.
  • Applies employee safety and record-keeping rules to independent contractors, whether they are paid or not.
  • Allows state officials to fine dealers up to $75,000 for repeated rule breaks starting in 2027.
  • Requires dealers to keep records of all firearm sales and transfers but bans using these records to make a gun owner list.
  • Mandates that dealers secure large-capacity magazines and submit a security plan by October 1, 2027.

Who It Names or Affects

  • Firearms dealers who sell or transfer guns in the state
  • Owners and managers of firearms businesses known as responsible persons
  • Employees and independent contractors who handle firearms at a dealer's business

Terms To Know

Responsible person
An individual with the power to direct or manage the policies of a firearms dealer.
State permit
A license required by the state for someone to do business as a firearms dealer.

Limits and Unknowns

  • The specific security measures dealers must use are not listed yet because officials will write those rules later.
  • Fines of up to $75,000 only apply to violations that happen on or after January 1, 2027.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU State, Civic, Military, & Veterans Affairs

Passed [*]

Plain English: This amendment updates the bill to require firearms dealers to follow new security rules starting in October 2027 and shortens a waiting period from seventy-two hours to forty-eight hours.

  • The definition of a firearm transaction is updated to include sales or transfers done under specific state laws.
  • A new rule requires the Department to create safety standards for dealers by January 1, 2027, to protect people and prevent break-ins.
  • Dealers must submit a detailed security plan showing how they will follow these rules before October 1, 2027.
  • The time limit mentioned in the bill is changed from seventy-two hours to forty-eight hours.
  • The exact details of the new safety standards are not listed because the Department will create them later through rules.
  • Some parts of the original text were removed, so it is unclear what specific requirements they contained without seeing the full bill context.
L.002

HOU State, Civic, Military, & Veterans Affairs

Passed [*]

Plain English: This amendment clarifies that the new state permit requirement applies to any employee who handles, sells, or has access to firearms while working for a dealer.

  • The bill now requires employees of gun dealers to have a state permit if they handle guns as part of their job duties.
  • Employees must get this permit if they process the sale, loan, or transfer of any firearm.
  • Any worker who has access to firearms while working for a dealer is included in these new rules.
  • The provided text only shows changes made on page 7 and does not include the full bill context needed to explain all details of the law.
  • It is unclear from this short excerpt exactly how existing employees will be affected or if there are exceptions for certain types of workers.
L.003

HOU State, Civic, Military, & Veterans Affairs

Passed [*]

Plain English: This amendment updates the bill to clarify that a firearms dealer does not need a state permit when transferring a large-capacity magazine to someone legally allowed to buy one, or when sending a firearm for repair.

  • Removes the general rule requiring permits for transfers involving customers who are having items repaired.
  • The provided text only shows changes on page 8 of the bill and does not include the full context or definitions used in other parts of the law.
  • It is unclear from this short excerpt exactly how 'large-capacity magazine' is defined under Section 18-12-302.
L.004

Second Reading

Passed [**]

Plain English: This amendment clarifies that a person who cannot unlock the dealer's locked storage areas for guns is not considered an employee under this law.

  • Adds a new rule stating that 'employee' does not include people without authority to open firearm storage rooms or containers.
L.005

Second Reading

Lost [**]

Plain English: This amendment requires the state to give firearms dealers at least 30 days to fix a rule violation before punishing them, unless the mistake involves fraud or an immediate danger.

  • The Department must notify a dealer about a violation and wait at least 30 days for them to fix it before issuing fines or taking away their permit.
  • This waiting period is skipped if the violation includes fraud, intentional bad behavior, or poses an immediate threat to public safety.
  • If a dealer fixes the problem within the 30-day window after being notified, they cannot be fined or have their permit suspended.
  • This amendment was voted down and did not become part of the final bill because its status is listed as 'Lost'.
L.006

Second Reading

Lost [**]

Plain English: This amendment would lower the maximum fine for breaking firearms dealer rules from $100,000 to $10,000.

  • The penalty amount listed in the bill is changed from one hundred thousand dollars.
  • This amendment was voted down and did not pass, so it does not change current law.
  • The text only shows a number being swapped but does not explain exactly which rule or situation this fine applies to without reading the full bill.
L.007

Second Reading

Lost [**]

Plain English: This amendment would count multiple small paperwork mistakes caused by one misunderstanding as a single violation if the dealer fixes them within thirty days of being notified.

  • It groups several similar clerical or administrative errors into just one official violation instead of counting each mistake separately.
  • The rule applies only when all the errors come from a single misunderstanding of rules or a common procedural mistake.
  • Dealers must fix these mistakes within thirty days after receiving notice from the department to get this benefit.
  • This amendment was voted down and did not pass, so it does not change current law.
  • The text does not define exactly what counts as a 'clerical or administrative error' versus other types of violations.
L.008

Second Reading

Lost [**]

Plain English: This amendment would limit the state department to conducting only one inspection of a firearms dealer per year unless there is credible evidence of a law violation or an active criminal investigation.

  • The state department cannot inspect a licensed firearms dealer more than once in a calendar year.
  • This amendment was lost and did not become part of the final bill, so these changes were never made to the law.
  • The text does not define exactly what counts as 'credible evidence' for an extra inspection.
L.012

Second Reading

Lost [**]

Plain English: This amendment would change the rules for when firearms dealers must be open and require police to get permission or a warrant before checking dealer records.

  • Dealers only need to keep their business open during normal posted or advertised hours instead of at all times.
  • Police cannot inspect a dealer's records for investigations unless the dealer agrees or has a court order based on probable cause.
  • The amendment was marked as 'Lost', meaning it did not pass and these changes were not made to the law.
  • The text does not define exactly what counts as 'normal posted or advertised business hours' for every dealer.
L.015

Second Reading

Passed [**]

Plain English: This amendment stops state agencies from using dealer records to create or keep a list of firearm owners.

  • State departments and other government agencies are banned from creating a registry that identifies who owns firearms.
L.016

Second Reading

Lost [**]

Plain English: This amendment requires the state department to hold at least one public meeting with businesses and citizens before creating new rules for firearm dealers.

  • The Department must conduct a minimum of one public stakeholder meeting.
  • The exact date or location for the required meeting is not specified in this text.
  • This amendment was marked as 'Lost', meaning it did not pass and will likely not become part of the final law.
L.017

Second Reading

Lost [**]

Plain English: This amendment would schedule the state's rules for regulating firearm dealers to be automatically repealed on September 1, 2031.

  • It adds a new law stating that specific sections about firearm dealer regulations will end in 2031.
  • It officially schedules these laws for review by the state legislature before they are removed.
  • The amendment text does not explain what rules would replace the current ones after September 1, 2031.
  • This specific version of the bill was marked as 'Lost,' meaning it did not pass in this form.
L.019

Second Reading

Lost [**]

Plain English: This amendment requires firearms dealers to keep records of their sales for seven years before they are allowed to destroy them.

  • Dealers must save every transaction record for a period of seven years.
  • After the seven-year limit, dealers can throw away or delete these records.
  • This amendment was voted down and did not become part of the final bill because its status is listed as 'Lost'.
L.021

Second Reading

Lost [**]

Plain English: This amendment creates a point-based penalty system for firearms dealers, requiring warnings or permit suspensions for repeated mistakes and immediate revocation for serious crimes like selling to ineligible buyers.

  • Dealers who break rules get a warning for their first offense but face suspension or losing their state permit if they offend again.
  • The amendment lists specific actions that force the government to immediately revoke a dealer's permit, such as refusing inspections or being convicted of selling guns illegally.
  • A new point system is added where dealers earn points for different types of violations, ranging from minor clerical errors to serious crimes.
  • Government officials must submit an annual report detailing how many permits were issued, suspended, or revoked and the costs involved in enforcing these rules.
  • The provided text is cut off at the end of Section 401.7, so the specific list of minor violations that earn points cannot be fully explained.
  • Because this amendment was marked as 'Lost' in its metadata, these changes were not approved and did not become law.
L.023

Second Reading

Lost [**]

Plain English: This amendment would remove all laws requiring a special Colorado permit for gun dealers, while keeping rules that require them to report suspicious sales and display their federal licenses at gun shows.

  • It deletes the state law sections that create and define the requirement for a 'state firearms dealer permit'.
  • It updates reporting laws so they apply only to federally licensed dealers, removing references to holding a state permit as a condition for those rules.
  • It changes gun show vendor rules to require displaying both federal licenses and state permits, even though it removes the law creating that state permit requirement.
  • The amendment text contains contradictory language by removing the definition of 'state firearms dealer permit' while simultaneously requiring vendors to display a copy of this now-nonexistent permit.
  • Because the bill status is listed as 'Lost', these changes were not approved and did not become law.
L.027

Second Reading

Lost [**]

Plain English: This amendment would remove a specific state law section about firearms dealers and delete most of the new rules proposed in the original bill.

  • It repeals (deletes) an existing Colorado law, specifically C.R.S. 18-12-406(1).
  • It removes a large portion of text from pages 7 and 8 of the proposed bill that contained new requirements.
  • It changes how certain parts of the remaining bill are numbered to fit after the deletions.
  • The amendment was marked as 'Lost', meaning it did not pass and these changes were not made to the final law.
  • Because most of the new text is deleted, this explanation cannot describe what specific rules would have been added or changed in detail.
L.028

Second Reading

Lost [**]

Plain English: This amendment would remove the requirement for a state permit to transfer firearms into or out of Colorado.

  • It deletes sections from pages 2 and 3 of the bill that set up new rules.
  • The official text provided is incomplete because it cuts off before explaining what current laws say about firearm transfers.
  • Because this amendment was marked as 'Lost', these changes were not approved by the legislature.
L.034

Second Reading

Lost [**]

Plain English: This amendment would remove specific sections of the bill that define how state permits are required for firearms dealers to transfer guns.

  • It deletes existing text on page 4, lines 12 through 27.
  • The provided amendment text only lists which pages and lines to delete but does not include the actual content of those deleted sections.
  • Because the specific rules being removed are missing from the input, it is impossible to explain exactly what requirements would no longer apply.
L.036

Second Reading

Lost [**]

Plain English: This amendment sets a specific start date for new firearm dealer rules and allows voters to delay or stop the law through a referendum.

  • The bill would not take effect until August 12, 2026, unless it is put on hold by a voter petition.
  • If citizens sign enough petitions against this law within ninety days of the legislature ending its session, voters must approve it in November 2026 before it starts.
  • New rules for applying to be a firearms dealer will only apply to applications submitted after the official start date.
  • New rules for selling or transferring firearms will only apply to transactions that happen on or after the official start date.
  • This amendment was voted down and did not pass, so these changes are not part of the final law.
  • The text does not explain what happens if a referendum is filed but then fails to get enough signatures or votes.
L.037

Second Reading

Lost [**]

Plain English: This amendment adds a rule stating that if any part of the bill is found to be illegal, then the entire bill must fail.

  • It inserts a new section called 'Nonseverability' into the bill.
  • The amendment was marked as 'Lost', meaning it did not pass and is not part of the final law.
  • This text only explains how to handle invalid parts of the bill, but does not change any rules about firearms dealers directly.
L.042

Second Reading

Lost [**]

Plain English: This amendment creates a new fund to help small gun dealers pay for expensive security rules by offering them extra time or money grants.

  • It sets up a 'firearm dealer permit cash fund' in the state treasury using fees and other government money.
  • The department must check how much new security rules will cost before making small businesses follow them.
  • If costs are more than 5% of a small business's income, they get at least two years to comply or can apply for a grant from the fund.
  • The amendment text does not explain exactly how much money is in the new fund.
  • It mentions rules about 'security measures' but does not list what those specific security steps are.
  • Since this amendment was marked as 'Lost', these changes were not approved and did not become part of the final bill.
L.043

Second Reading

Lost [**]

Plain English: This amendment adds a new definition for the term 'responsible person' to describe someone who manages and sets policies for firearms at a dealer's business.

  • Adds a new section labeled (5.7) that defines what a "responsible person" is.
  • The amendment text only provides the definition of 'responsible person' and does not explain how this term will be used in other parts of the law.
  • This amendment was marked as lost, meaning it did not pass and would not change the final bill.
L.048

Second Reading

Lost [**]

Plain English: This amendment would change the bill to allow a firearms dealer to transfer guns that are being repaired, have security locks or tags, or belong to customers legally allowed to buy large-capacity magazines.

  • The text adds an exception for transferring firearms that are currently being repaired or worked on by a dealer.
  • It allows transfers of firearms that have a security tag or lock attached to them.
  • It permits dealers to transfer guns to customers who are legally allowed under state law to purchase large-capacity magazines.
  • The amendment text is incomplete and does not show the full sentence it modifies, so the exact context of these exceptions is unclear.
  • This amendment was marked as 'Lost' during its second reading stage, meaning it did not pass in this form.
L.050

Second Reading

Lost [**]

Plain English: This amendment would require firearms dealers to have security measures in place by October 1, 2027, and clarify that a state permit is needed when transferring guns to customers allowed to buy large-capacity magazines or for repairs.

  • Requires dealers to implement reasonable security measures to prevent theft of firearms and inventory starting on October 1, 2027.
  • Clarifies that the rule applies when a dealer transfers a firearm to a customer who is legally allowed to purchase a large-capacity magazine under state law.
  • Includes situations where a firearm is being repaired or worked on by the dealer.
  • The amendment text does not define what specific actions count as 'reasonable security measures.'
  • This amendment was marked as 'Lost,' meaning it did not pass and these changes were not made to the bill.
  • Some parts of the original bill text referenced in the amendment are missing from the provided material, so full context is limited.
L.052

Second Reading

Lost [**]

Plain English: This amendment would delay the start date of the new firearms dealer rules until July 1, 2026.

  • Sets a specific effective date for the law to begin on July 1, 2026.
  • The amendment was marked as 'Lost', meaning it did not pass and will likely not change the bill.
  • The text only shows changes to section numbers and dates but does not explain what other parts of the law do.
L.053

Second Reading

Lost [**]

Plain English: This amendment requires the state department to give firearms dealers a written report of inspection findings within two weeks, with an extra two-week extension allowed for unexpected delays.

  • The Department must provide a written summary of inspection results to permit holders no later than 14 days after finishing the inspection.
  • If circumstances outside the Department's control prevent meeting the deadline, they get an additional 14 days to deliver the report.
  • The amendment was marked as 'Lost', meaning it did not pass and is not part of the final law.
  • The text does not explain what specific details must be included in the written summary or how a dealer can request an extension if needed.
L.055

Second Reading

Passed [**]

Plain English: This amendment lowers the maximum fine for breaking firearms dealer rules from $100,000 to $75,000.

  • The penalty amount is changed from one hundred thousand dollars.
L.058

Second Reading

Lost [**]

Plain English: This amendment creates a new fund to help small gun dealers pay for expensive security rules by offering them extra time or money if the costs are too high.

  • Creates a 'firearm dealer permit cash fund' in the state treasury using fees and other government money.
  • Allows this fund to be used for issuing permits, inspections, and giving financial assistance grants to dealers.
  • Requires the department to publish an analysis of costs before enforcing new security rules on businesses.
  • Gives small business owners either a 24-month delay or a grant if new security measures cost more than 5% of their previous year's income.
  • The amendment text does not explain the specific details of how grants will be awarded beyond requiring policies to be created.
  • It is unclear exactly which businesses qualify as a 'small business' since that definition must still be written into department rules.
L.059

Second Reading

Lost [**]

Plain English: This amendment requires the state department to hold at least one public meeting with businesses and citizens before creating new rules for firearms dealers.

  • The Department must conduct a minimum of one public stakeholder meeting.
  • The text does not specify when the meeting must happen or how many people need to attend.
  • This amendment was lost and did not become part of the final bill.
L.061

Second Reading

Lost [**]

Plain English: This amendment requires the state to give firearms dealers at least 30 days to fix a rule violation before punishing them, unless the violation involves fraud or an immediate danger.

  • The Department must notify a dealer about a violation and wait at least 30 days for them to fix it before issuing fines or taking away their permit.
  • If a dealer fixes the problem within that 30-day window, the Department cannot fine them or suspend their permit.
  • This waiting period is skipped if the violation involves fraud, intentional bad behavior, or an immediate threat to public safety.
  • The amendment was marked as 'Lost' in the Senate, meaning it did not pass and will not change the law.
  • This explanation only covers the specific text of this failed amendment and does not describe other parts of the original bill.
L.062

Second Reading

Lost [**]

Plain English: This amendment would count multiple small paperwork mistakes caused by one misunderstanding as a single violation if the dealer fixes them within thirty days of being notified.

  • It groups several similar clerical or administrative errors into just one official violation instead of counting each mistake separately.
  • The rule applies only when all the errors come from a single misunderstanding of rules or a common procedural mistake.
  • Dealers must fix these mistakes within thirty days after receiving notice from the department to get this benefit.
  • This amendment was lost and did not become part of the final bill, so it does not change current law.
  • The text does not define exactly what counts as a 'clerical or administrative error' versus other types of violations.
L.066

Second Reading

Lost [**]

Plain English: This amendment would limit the state department to conducting only one inspection of a firearms dealer per year unless there is credible evidence of a law violation or an active criminal investigation.

  • The state department cannot inspect a licensed firearms dealer more than once in a calendar year.
  • This amendment was lost and did not become part of the final bill, so these changes were never made to the law.
  • The text does not define exactly what counts as 'credible evidence' for an extra inspection.
L.067

Second Reading

Lost [**]

Plain English: This amendment would change the rules for when police can check a gun dealer's records, requiring them to have consent or a warrant if they are investigating something.

  • Gun dealers must make their record books available during normal business hours instead of at all times.
  • Police officers need either the dealer's permission or a court warrant based on probable cause before inspecting records for an investigation.
  • The amendment text contains formatting errors and missing words that make some parts hard to read clearly.
  • This proposal was voted down (lost) in the Senate, so it did not become part of the final law.
L.068

Second Reading

Lost [**]

Plain English: This amendment sets a specific start date for new firearm dealer rules and allows voters to delay or stop the law through a referendum.

  • The bill will not take effect until August 12, 2026, unless it is put on hold by a voter petition.
  • If citizens sign enough petitions against the law within ninety days of the legislative session ending, voters must approve it in November 2026 before it starts.
  • New rules for dealer applications will only apply to requests made after the official start date.
  • New rules for firearm transactions will only apply to sales that happen on or after the official start date.
  • This amendment was lost and did not become part of the final bill, so these changes were not adopted.
  • The text does not explain what happens if a petition is filed but fails to get enough signatures before the deadline.

Bill History

  1. 2026-06-02 Governor

    Governor Signed

  2. 2026-05-27 Governor

    Sent to the Governor

  3. 2026-05-27 Senate

    Signed by the President of the Senate

  4. 2026-05-27 House

    Signed by the Speaker of the House

  5. 2026-04-14 Senate

    Senate Third Reading Passed - No Amendments

  6. 2026-04-13 Senate

    Senate Second Reading Passed - No Amendments

  7. 2026-04-10 Senate

    Senate Second Reading Laid Over to 04/13/2026 - No Amendments

  8. 2026-04-07 Senate

    Senate Committee on State, Veterans, & Military Affairs Refer Unamended to Senate Committee of the Whole

  9. 2026-03-25 Senate

    Introduced In Senate - Assigned to State, Veterans, & Military Affairs

  10. 2026-03-20 House

    House Third Reading Passed - No Amendments

  11. 2026-03-19 House

    House Second Reading Special Order - Passed with Amendments - Committee, Floor

  12. 2026-03-05 House

    House Second Reading Laid Over Daily - No Amendments

  13. 2026-03-02 House

    House Committee on State, Civic, Military, & Veterans Affairs Refer Amended to House Committee of the Whole

  14. 2026-02-04 House

    Introduced In House - Assigned to State, Civic, Military, & Veterans Affairs

Official Summary Text

The act clarifies that a state permit to engage in the business of dealing in firearms (state permit) is required for a firearms dealer (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 act 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 act makes the dealer training requirements apply to responsible persons who, in the course of their duties, handle firearms; process the sale, loan, or transfer of firearms; or otherwise have access to firearms.
The act makes provisions related to a dealer's employees who handle firearms; process the sale, loan, or transfer of firearms; or otherwise have access to firearms also apply to any individual, including an independent contractor, who performs an employee's duties, whether paid or unpaid.
The act permits the department of revenue (department) to fine a dealer up to $75,000 for a second or subsequent violation of certain dealer requirements committed on or after January 1, 2027. The department shall adopt rules concerning the imposition of fines.
Under existing state law, dealers are subject to record-keeping requirements involving pistols and revolvers sold, rented, or exchanged at retail. The act makes the record-keeping requirements apply to all retail transactions, including a transfer, involving a firearm other than a destructive device, clarifies that dealers may keep the records electronically, and prohibits the department and any other state agency from using information obtained from dealer records to create or maintain a registry identifying firearm ownership.
The act requires a dealer to secure large-capacity magazines in the dealer's possession. The department shall adopt rules requiring security measures for dealers' places of business, and a dealer shall submit a comprehensive security plan to the department that demonstrates the security measures that the dealer will implement to comply with the rules. Beginning October 1, 2027, a dealer must implement the security measures.
The act requires a dealer to report the theft or loss of a firearm to the department within 48 hours after learning of the theft or loss.
(Note: This summary applies to this bill as enacted.)