ICYMI: Committee Approves Bill to Require Permit to Sell a Firearm

Legislation would reduce gun violence, crack down on illegal firearm sales, and prevent crime by requiring firearm dealers to hold a state license

DENVER, CO – Legislation sponsored by Senators Jeff Bridges, D-Arapahoe County, and Dafna Michaelson Jenet, D-Commerce City, to reduce gun violence, crack down on illegal firearm sales, and prevent crime by requiring firearm dealers to hold a state license was approved by the Senate Finance Committee yesterday.

Starting July 1, 2025, HB24-1353 would require firearm dealers in Colorado to hold a state firearms dealer permit in order to sell guns in Colorado. Operating without this permit would be an unclassified felony punishable by a fine of up to $250,000.

“Liquor stores, restaurants, and hair dressers all need a state license to operate, and this bill says that gun stores should have one too,” said Bridges. “This new licensing requirement shouldn’t have any negative impact on stores that follow state laws, which is nearly all of them. But it will ensure that every employee in every store knows what our state laws are, and that they follow them. It’s an important way to keep our communities safe, keep guns out of the hands of those who shouldn’t have them, and give Colorado the basic oversight it needs over these stores.”

“Due to the nature of their business, firearm dealers must be held to very high standards,” Michaelson Jenet said. “Requiring state licensure provides another check to make sure dealers are operating safely and in accordance with the law. I’m proud to sponsor this legislation which sets new requirements like increased inspections and trainings to reduce gun violence and prevent crimes.”

Under the bill, firearm dealers would apply through the Department of Revenue and must hold a valid federal firearm license to be eligible for a state firearms dealer permit. Applicants would not be eligible for the permit if they have an adverse licensing action taken for good cause by the federal government or any state within three years of applying. They would also be ineligible if they have been convicted of a violation of any state or federal law regarding the possession or sale of firearms.

Other requirements for receiving a state firearms dealer permit include:

• Finger-printed background checks for employees every 3 years;

• Training on how to prevent theft and identify straw purchasers, fraudulent activities, and people at risk of self-harm. An exam on this training would also be required before an applicant is granted a permit;

• Random and regular inspections to ensure firearm dealers are complying with state and federal law;

• Firearm sales to only occur during business hours, except during a gun show; and

• Contacting law enforcement to report a suspicious person who tried to unlawfully purchase a firearm within 48 hours of the incident.

Studies show that policies regulating firearm dealer licensing can lead to significant reductions in gun violence, including gun homicides and suicides. After Connecticut passed a similar law, its firearm homicide rate fell by 28 percent and firearm suicide rate decreased by 33 percent.

HB24-1353 now moves to the Senate Appropriations Committee for further consideration. Track its progress HERE.