C.R.S. § 18-12-406: Requirements for firearms dealers - training - securing firearms - sale outside of business hours prohibited - rules - penalty.

(1) (a) The department shall develop training or approve training courses provided by other entities for dealers, responsible persons, and dealers' employees. The training must be available in an online format and include an examination with at least twenty questions derived from the course material and intended to confirm that a course participant understands the information covered in the course. The department, or other trainer conducting the training, shall give a course participant who answers at least seventy percent of the examination questions correctly a printable certificate of completion that is valid for one year after the date of completion. The training must include instruction regarding the following:

(I) Federal and state laws governing the sale and transfer of firearms and ammunition;

(II) Recognizing and identifying straw purchasers and fraudulent activity;

(III) Indicators that a person is attempting to purchase a firearm illegally;

(IV) Recognizing and identifying indicators that an individual intends to use a firearm for unlawful purposes;

(V) Recognizing and identifying indicators that an individual intends to use a firearm for self-harm;

(VI) Preventing theft or burglary of firearms and ammunition;

(VII) Responding to circumstances described in subsections (1)(a)(I) to (1)(a)(VI) of this section, and any applicable reporting requirements;

(VIII) Teaching consumers rules of firearm safety, including the safe handling and storage of firearms; and

(IX) Any other reasonable business practices that the department determines will deter firearm trafficking or the unlawful use of firearms.

(b) A dealer, and each responsible person of the dealer who, in the course of their duties, handles firearms; processes the sale, loan, or transfer of firearms; or otherwise has access to firearms, shall, within thirty days after the date the permit is issued and annually thereafter, complete a training course developed or approved by the department pursuant to this subsection (1).

(c) (I) An employee of a dealer shall, within thirty days after the employee's first day of work for the dealer and annually thereafter, complete a training course developed or approved by the department pursuant to this subsection (1).

(II) A dealer shall maintain the training records of each responsible person of the dealer and each employee and shall make the records available to the department during an on-site inspection of the dealer's place of business.

(2) A dealer shall not conduct business or store firearms at the dealer's place of business unless:

(a) The dealer secures each firearm, except when the firearm is being shown to a customer, repaired, or otherwise worked on, in a manner that prevents unauthorized use of the firearm. Securing a firearm may include keeping the firearm in a locked container, including a locked display case; properly installing a locking device on the firearm; or, if the firearm is a personalized firearm, activating the safety characteristics of the firearm.

(b) The dealer secures each large-capacity magazine in the dealer's possession behind a counter, in an enclosed and locked display case, or in a locked room inaccessible to the public, except when the large-capacity magazine is being shown to a customer permitted to purchase a large-capacity magazine pursuant to section 18-12-302 or is being repaired or otherwise worked on; and

(c) Beginning October 1, 2027, the dealer has implemented security measures in compliance with the department's rules adopted pursuant to subsection (2.5)(a) of this section and as set forth in the dealer's comprehensive security plan submitted to the department pursuant to subsection (2.5)(b) of this section.

(2.5) (a) On or before January 1, 2027, the department shall adopt rules requiring security measures for a dealer's place of business to protect personnel, customers, firearms, and ammunition, and to prevent unauthorized entry. The department may consider, and set different standards based on, the characteristics of a place of business.

(b) 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 adopted pursuant to this subsection (2.5). The department may provide feedback to a dealer on a submitted plan. If a dealer updates its plan at any time, the dealer shall submit the updated plan to the department.

(3) A dealer shall not sell or transfer a firearm:

(a) Outside of the dealer's posted business hours; except that a dealer may sell or transfer a firearm at a gun show, as defined in section 18-12-501, outside of the dealer's posted business hours; or

(b) To a person the dealer knows or suspects is under the influence of intoxicating liquor or of a controlled substance, as defined in section 18-18-102 (5).

(4) If a dealer knows or suspects that an employee of the dealer is involved in the theft of a firearm from the dealer's business, the dealer shall report the theft within forty-eight hours after learning of the theft to a law enforcement agency with jurisdiction over the dealer's place of business.

(4.5) A dealer shall report the theft or loss of a firearm from the dealer's inventory to the department within forty-eight hours after learning of the theft or loss.

(5) The department may promulgate rules necessary to implement this section.

(6) A violation of any provision of this section is a violation of state law concerning the sale of firearms and is subject to the penalties described in section 18-12-401.5 (7).