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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 26-0426.01 Conrad Imel x2313 HOUSE BILL 26-1126
House Committees Senate Committees
State, Civic, Military, & Veterans Affairs State, Veterans, & Military Affairs
A BILL FOR AN ACT
CONCERNING REQUIREMENTS FOR DEALING FIREARMS.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
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
SENATE
3rd Reading Unamended
April 14, 2026
SENATE
2nd Reading Unamended
April 13, 2026
HOUSE
3rd Reading Unamended
March 20, 2026
HOUSE
Amended 2nd Reading
March 19, 2026
HOUSE SPONSORSHIP
Sirota and Woodrow, Bacon, Boesenecker, Brown, Camacho, Espenoza, Froelich, Garcia,
Gilchrist, Joseph, Lindsay, McCormick, Nguyen, Rutinel, Smith, Stewart R., Story, Willford,
Zokaie
SENATE SPONSORSHIP
Kipp, Amabile, Benavidez, Coleman, Cutter, Da nielson, Daugherty, Gonzales J., Jodeh,
Kolker, Lindstedt, Sullivan, Wallace, Weissman
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing 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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 18-12-401, amend2
(1); and add (3.5), (5.4), (5.7), and (7) as follows:3
18-12-401. Definitions.4
As used in this part 4, unless the context otherwise requires:5
(1) "Dealer" means:6
(a) A federally licensed firearm dealer as defined in section7
18-12-101; and8
(b) Any other federal firearms licensee who, within the scope of9
the licensee's license, sells firearms at retail to the public OR TRANSFERS10
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FIREARMS TO MEMBERS OF THE PUBLIC AS PART OF A RETAIL1
TRANSACTION, INCLUDING A SALE OR TRANSFER CONDUCTED BY THE2
LICENSEE PURSUANT TO SECTION 18-12-112, 18-12-112.5, OR 18-12-506.3
(3.5) (a) "EMPLOYEE" MEANS AN EMPLOYEE OF A DEALER WHO, IN4
THE COURSE OF THE EMPLOYEE'S DUTIES, HANDLES FIREARMS; PROCESSES5
THE SALE, LOAN, OR TRANSFER OF FIREARMS; OR OTHERWISE HAS ACCESS6
TO FIREARMS UNDER THE DEALER'S CONTROL.7
(b) "E MPLOYEE" INCLUDES AN INDIVIDUAL , INCLUDING AN8
INDEPENDENT CONTRACTOR UNDER THE TERMS OF A CONTRACT WITH A9
DEALER, WHO ENGAGES IN THE CONDUCT DESCRIBED IN SUBSECTION10
(3.5)(a) OF THIS SECTION, WHETHER PAID OR UNPAID.11
(c) "E MPLOYEE" DOES NOT INCLUDE AN INDIVIDUAL WHO DOES12
NOT HAVE AUTHORITY TO UNLOCK THE DEALER'S FIREARM STORAGE13
ROOMS, CONTAINERS, CASES, OR OTHER DEVICES USED TO SECURE THE14
DEALER'S FIREARMS IN A MANNER THAT PREVENTS UNAUTHORIZED USE OF15
THE FIREARMS.16
(5.4) "LARGE-CAPACITY MAGAZINE" HAS THE MEANING SET FORTH17
IN SECTION 18-12-301.18
(5.7) "RESPONSIBLE PERSON" HAS THE MEANING SET FORTH IN 2719
CFR 478.11.20
(7) "T RANSFER" HAS THE MEANING SET FORTH IN SECTION21
24-33.5-424 (1)(d).22
SECTION 2. In Colorado Revised Statutes, 18-12-401.5, amend23
(1)(a), (3), and (7)(a)(II); and add (7.5) as follows:24
18-12-401.5. Permit required - issuing agency - cash fund -25
inspections - penalty - report - rules - repeal.26
(1) (a) Beginning July 1, 2025, Every dealer must obtain a state27
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permit in order to engage in the business of dealing in firearms other than1
destructive devices in this state OR TO TRANSFER FIREARMS OTHER THAN2
DESTRUCTIVE DEVICES INTO OR OUT OF THIS STATE.3
(3) In order FOR A DEALER to be issued a state permit: a dealer4
must:5
(a) THE DEALER MUST hold a valid federal firearms license;6
(b) THE DEALER AND EACH RESPONSIBLE PERSON OF THE DEALER7
MUST not have had a license or permit to sell, lease, transfer, purchase, or8
possess a firearm or ammunition from the federal government, any state,9
or a subdivi sion of any state, revoked, suspended, or denied for good10
cause within three years before submitting an application; and11
(c) A DEALER AND EACH RESPONSIBLE PERSON OF THE DEALER12
MUST not have been convicted for a violation of any provision of this13
article 12; any Colorado or any other state's law concerning the14
possession, purchase, or sale of firearms; or any federal law concerning15
the possession or sale of firearms in the three years before submitting an16
application for a state permit.17
(7) (a) Except as provided in subsection (8) of this section, if the18
department finds that a dealer failed to post the required notice or make19
a report concerning unlawful purchases in violation of section 18-12-111;20
failed to make a record required pursuant to section 18-12-402;21
transferred a firearm without a locking device or failed to post the22
required notice concerning locking devices, in violation of section23
18-12-405; failed to comply with any of the requirements of section24
18-12-406; failed to comply with any of the requirements of section25
29-11.7-105 (5); violated any other provision of this article 12 or any26
other state or local law concerning the sale of firearms; or violated any27
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federal law or rule concerning the sale of firearms or firearm components1
for which the penalty includes potential revocation of the person's federal2
firearms license, the department shall:3
(II) For a second or subsequent offense:4
(A) Issue a warning to the dealer that includes a description of the5
offense and the penalty for subsequent offenses;6
(B) FOR A SECOND OR SUBSEQUENT OFFENSE COMMITTED ON OR7
AFTER JANUARY 1, 2027, IMPOSE A FINE OF UP TO SEVENTY-FIVE8
THOUSAND DOLLARS IN ACCORDANCE WITH THE RULES ADOPTED9
PURSUANT TO SUBSECTION (7.5) OF THIS SECTION;10
(B) (C) Suspend the dealer's state permit for a period of time11
determined by the department; or12
(C) (D) Revoke the dealer's state permit.13
(7.5) (a) THE DEPARTMENT SHALL ADOPT RULES GOVERNING THE14
IMPOSITION OF FINES PURSUANT TO SUBSECTION (7)(a)(II)(B) OF THIS15
SECTION. THE RULES MUST INCLUDE CATEGORIES OF VIOLATIONS BASED16
ON THE SEVERITY OF THE OFFENSE, FINE RANGES ASSOCIATED WITH EACH17
CATEGORY, AND AGGRAVATING AND MITIGATING FACTORS THE18
DEPARTMENT SHALL CONSIDER WHEN DETERMINING FINE AMOUNTS.19
(b) T HE DEPARTMENT SHALL TRANSMIT ALL FINES COLLECTED20
PURSUANT TO THIS SECTION TO THE STATE TREASURER , WHO SHALL21
CREDIT THE MONEY TO THE FIREARM DEALER PERMIT CASH FUND CREATED22
IN SUBSECTION (2)(d) OF THIS SECTION.23
SECTION 3. In Colorado Revised Statutes, amend 18-12-402 as24
follows:25
18-12-402. Retail dealers - record - inspection.26
(1) Every individual, firm, or corporation DEALER engaged, within27
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this state, in the retail TRANSACTIONS, INCLUDING THE sale, rental, or1
exchange, OR TRANSFER, of firearms pistols, or revolvers OTHER THAN2
DESTRUCTIVE DEVICES shall keep a record of each pistol or revolver sold,3
rented, or exchanged at retail FIREARM TRANSACTION CONDUCTED BY THE4
DEALER, OTHER THAN TRANSACTIONS SOLELY INVOLVING DESTRUCTIVE5
DEVICES. The record must be made at the time of the transaction in a book6
OR ELECTRONIC RECORD kept for that purpose. and7
(2) THE RECORD REQUIRED IN THIS SECTION must include:8
(a) The name of the person to whom the pistol or revolver is sold9
or rented or with whom exchanged; his or her THAT RECEIVED THE10
FIREARM AND THE RECIPIENT'S age occupation, residence, and, if residing11
in a city, the street and number therein where he or she resides AND12
ADDRESS;13
(b) The make, caliber, and finish of said pistol or revolver,14
together with its THE FIREARM;15
(c) THE FIREARM'S number and serial letter, if any;16
(d) The date of the sale, rental, or exchange of said pistol or17
revolver TRANSACTION; and18
(e) The name of the employee or other person making such sale,19
rental, or exchange THAT CONDUCTED THE TRANSACTION.20
(3) The record book shall be open DEALER SHALL MAKE THE21
RECORDS DESCRIBED IN THIS SECTION AVAILABLE at all times to the FOR22
inspection of any BY A duly authorized police PEACE officer.23
(4) THE DEPARTMENT AND ANY OTHER STATE AGENCY SHALL NOT24
USE THE INFORMATION OBTAINED FROM DEALER RECORDS TO CREATE OR25
MAINTAIN A REGISTRY IDENTIFYING FIREARM OWNERSHIP.26
SECTION 4. In Colorado Revised Statutes, amend 18-12-403 as27
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follows:1
18-12-403. Record - failure to make - penalty.2
Every individual, firm, or corporation A DEALER who fails to keep3
the record required pursuant to section 18-12-402 or section 18-12-111.54
(7)(b), or who refuses to exhibit the record when requested by a police5
PEACE officer, and any purchaser, lessee, or exchanger of a pistol or6
revolver FIREARM who, in connection with the making of such THE7
record, gives false information, commits a class 2 misdemeanor.8
SECTION 5. In Colorado Revised Statutes, 18-12-406, amend9
(1)(a) introductory portion, (1)(a)(VIII), (1)(b), (1)(c), (2), and (6); and10
add (2.5) and (4.5) as follows:11
18-12-406. Requirements for firearms dealers - training -12
securing firearms - sale outside of business hours prohibited - rules13
- penalty.14
(1) (a) The department shall develop training or approve training15
courses provided by other entities for dealers, RESPONSIBLE PERSONS, and16
dealers' employees. The training must be available in an online format17
and include an examination with at least twenty questions derived from18
the course material and intended to confirm that a course participant19
understands the information covered in the course. The department, or20
other trainer conducting the training, shall give a COURSE participant who21
answers at least seventy percent of the examination questions correctly a22
printable certificate of completion that is valid for one year after the date23
of completion. The training must include instruction regarding the24
following:25
(VIII) Effectively Teaching consumers rules of firearm safety,26
including the safe handling and storage of firearms; and27
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(b) A dealer, AND EACH RESPONSIBLE PERSON OF THE DEALER1
WHO, IN THE COURSE OF THEIR DUTIES, HANDLES FIREARMS; PROCESSES2
THE SALE, LOAN, OR TRANSFER OF FIREARMS; OR OTHERWISE HAS ACCESS3
TO FIREARMS, shall, within thirty days after the date the permit is issued4
and annually thereafter, complete a training course developed or approved5
by the department pursuant to this subsection (1).6
(c) (I) An employee of a dealer who, in the course of the7
employee's duties, handles firearms; processes the sale, loan, or transfer8
of firearms; or otherwise has access to firearms shall, within thirty days9
after the employee's first day of work for the dealer and annually10
thereafter, complete a training course developed or approved by the11
department pursuant to this subsection (1). An employee who, in the12
course of the employee's duties, handles firearms; processes the sale,13
loan, or transfer of firearms; or otherwise has access to firearms, who is14
employed by a dealer on July 1, 2025, shall complete the employee's first15
training course no later than thirty days after July 1, 2025.16
(II) A dealer shall maintain the training records of EACH17
RESPONSIBLE PERSON OF THE DEALER AND each employee and shall make18
the records available to the department during an on-site inspection of the19
dealer's place of business.20
(2) A dealer shall not conduct business or store firearms at the21
dealer's place of business unless:22
(a) The dealer secures each firearm, except when the firearm is23
being shown to a customer, repaired, or otherwise worked on, in a manner24
that prevents unauthorized use of the firearm. Securing a firearm may25
include keeping the firearm in a locked container, including a locked26
display case; properly installing a locking device on the firearm; or, if the27
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firearm is a personalized firearm, activating the safety characteristics of1
the firearm.2
(b) THE DEALER SECURES EACH LARGE -CAPACITY MAGAZINE IN3
THE DEALER 'S POSSESSION BEHIND A COUNTER , IN AN ENCLOSED AND4
LOCKED DISPLAY CASE , OR IN A LOCKED ROOM INACCESSIBLE TO THE5
PUBLIC, EXCEPT WHEN THE LARGE-CAPACITY MAGAZINE IS BEING SHOWN6
TO A CUSTOMER PERMITTED TO PURCHASE A LARGE-CAPACITY MAGAZINE7
PURSUANT TO SECTION 18-12-302 OR IS BEING REPAIRED OR OTHERWISE8
WORKED ON; AND9
(c) BEGINNING OCTOBER 1, 2027, THE DEALER HAS IMPLEMENTED10
SECURITY MEASURES IN COMPLIANCE WITH THE DEPARTMENT 'S RULES11
ADOPTED PURSUANT TO SUBSECTION (2.5)(a) OF THIS SECTION AND AS SET12
FORTH IN THE DEALER'S COMPREHENSIVE SECURITY PLAN SUBMITTED TO13
THE DEPARTMENT PURSUANT TO SUBSECTION (2.5)(b) OF THIS SECTION.14
(2.5) (a) O N OR BEFORE JANUARY 1, 2027, THE DEPARTMENT15
SHALL ADOPT RULES REQUIRING SECURITY MEASURES FOR A DEALER 'S16
PLACE OF BUSINESS TO PROTECT PERSONNEL, CUSTOMERS, FIREARMS, AND17
AMMUNITION, AND TO PREVENT UNAUTHORIZED ENTRY. THE DEPARTMENT18
MAY CONSIDER, AND SET DIFFERENT STANDARDS BASED ON , THE19
CHARACTERISTICS OF A PLACE OF BUSINESS.20
(b) A DEALER SHALL SUBMIT A COMPREHENSIVE SECURITY PLAN21
TO THE DEPARTMENT THAT DEMONSTRATES THE SECURITY MEASURES22
THAT THE DEALER WILL IMPLEMENT TO COMPLY WITH THE RULES ADOPTED23
PURSUANT TO THIS SUBSECTION (2.5). THE DEPARTMENT MAY PROVIDE24
FEEDBACK TO A DEALER ON A SUBMITTED PLAN. IF A DEALER UPDATES ITS25
PLAN AT ANY TIME, THE DEALER SHALL SUBMIT THE UPDATED PLAN TO THE26
DEPARTMENT.27
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1
(4.5) A DEALER SHALL REPORT THE THEFT OR LOSS OF A FIREARM2
FROM THE DEALER 'S INVENTORY TO THE DEPARTMENT WITHIN3
FORTY-EIGHT HOURS AFTER LEARNING OF THE THEFT OR LOSS.4
(6) A violation of any provision of this section by a dealer is a5
violation of state law concerning the sale of firearms and is subject to the6
penalties described in section 18-12-401.5 (7).7
SECTION 6. In Colorado Revised Statutes, 18-12-407, amend8
(1) introductory portion as follows:9
18-12-407. Dealer employee requirements - background check10
- penalty.11
(1) A dealer shall not employ OR CONTRACT WITH a person who,12
in the course of the person's duties AS AN EMPLOYEE OR CONTRACTOR ,13
handles firearms; processes the sale, loan, or transfer of firearms; or14
otherwise has access to firearms, AND who:15
SECTION 7. Applicability. (1) Section 18-12-401.5 (3),16
Colorado Revised Statutes, as amended in section 2 of this act, applies to17
applications submitted on or after the effective date of this act.18
(2) Section 18-12-402, Colorado Revised Statutes, as amended in19
section 3 of this act, applies to transactions conducted on or after the20
effective date of this act.21
SECTION 8. Safety clause. The general assembly finds,22
determines, and declares that this act is necessary for the immediate23
preservation of the public peace, health, or safety or for appropriations for24
the support and maintenance of the departments of the state and state25
institutions.26
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