Colorado Bill Clarifies Firearms Dealer Permit Requirements

Detected March 6th, 2026

Summary

Colorado HB26-1126 clarifies existing firearms dealer permit requirements, expands them to 'responsible persons' and employees/contractors, and introduces new security and reporting mandates. The bill also allows for fines up to $100,000 for repeat violations.

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What changed

Colorado House Bill 26-1126, introduced for the 2026 Regular Session, significantly clarifies and expands requirements for firearms dealers. The bill explicitly states that a state permit is required for a dealer to transfer firearms. Key changes include extending prior license and violation requirements to 'responsible persons' who direct a dealer's management, applying dealer training requirements to these responsible persons, and extending employee duties related to firearms handling to independent contractors. New security mandates require dealers to secure large-capacity magazines, install security features on exterior doors and windows, ensure adequate interior lighting for surveillance, and equip their premises with an alarm system including video surveillance. Dealers will also be required to report the theft or loss of any firearm to the department of revenue.

These changes will necessitate immediate review and potential updates to internal compliance policies and security protocols for firearms dealers operating in Colorado. Responsible persons within dealerships must also be identified and brought into compliance with training and background requirements. The expanded record-keeping requirements for all firearm retail transactions (excluding destructive devices) and the new reporting obligation for lost or stolen firearms require immediate operational adjustments. Furthermore, the potential for fines up to $100,000 for second or subsequent violations underscores the critical need for strict adherence to these new provisions. While a specific compliance deadline is not yet set as this is a bill, regulated entities should prepare for implementation upon its potential enactment.

What to do next

Review and update internal policies to reflect clarified permit requirements for firearm transfers.
Identify and ensure compliance of all 'responsible persons' with prior license/violation requirements and dealer training.
Implement enhanced security measures for large-capacity magazines, exterior doors/windows, interior lighting, and alarm/video surveillance systems.
Establish procedures for reporting lost or stolen firearms to the department of revenue.

Penalties

Fines up to $100,000 for a second or subsequent violation of certain dealer requirements.

Source document (simplified)

HB26-1126

Requirements for Firearms Dealers

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Crimes, Corrections, & Enforcement |
Concerning requirements for dealing firearms.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

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.)