| 1 | 1 | | REFERENCE TITLE: firearm dealers; firearms transfers; requirements State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022 HB 2362 Introduced by Representatives Longdon: Hernandez D AN ACT amending title 44, chapter 36, Arizona Revised Statutes, by adding article 2; relating to firearms transfers. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: firearm dealers; firearms transfers; requirements |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-fifth Legislature Second Regular Session 2022 |
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| 11 | 11 | | HB 2362 |
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| 12 | 12 | | Introduced by Representatives Longdon: Hernandez D |
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| 14 | 14 | | REFERENCE TITLE: firearm dealers; firearms transfers; requirements |
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| 24 | 24 | | State of Arizona |
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| 26 | 26 | | House of Representatives |
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| 28 | 28 | | Fifty-fifth Legislature |
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| 30 | 30 | | Second Regular Session |
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| 32 | 32 | | 2022 |
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| 40 | 40 | | HB 2362 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representatives Longdon: Hernandez D |
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| 52 | 52 | | AN ACT |
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| 55 | 55 | | |
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| 56 | 56 | | amending title 44, chapter 36, Arizona Revised Statutes, by adding article 2; relating to firearms transfers. |
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| 62 | 62 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 66 | 66 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Title 44, chapter 36, Arizona Revised Statutes, is amended by adding article 2, to read: ARTICLE 2. FIREARMS DEALERS START_STATUTE44-7861. Definitions In this article, unless the context otherwise requires: 1. "Firearms dealer" means a person that is any of the following: (a) Engaged in the business of selling firearms at wholesale or retail. (b) Engaged in the business of repairing firearms or of making or fitting special barrels, stocks or trigger mechanisms to firearms. (c) A pawnbroker as defined in section 44-1621. (d) A holder of a federal firearms license. 2. "Firearms trafficker" means a person that sells or resells firearms without a federal firearms license. 3. "Immediate family member" means a spouse, domestic partner, parent, child, sibling, grandparent, grandchild, niece, nephew, first cousin, aunt or uncle, whether by adoption or blood. 4. "Person": (a) Means an individual, corporation, company, association, firm, partnership, society or joint stock company. (b) Does not include a holder of a federal firearms license. 5. "Straw purchaser" means a person that illegally obtains a firearm for another person. 6. "Trace request" means an inquiry from a law enforcement agency about the acquisition or disposition, or both, of a specifically identified firearm. 7. "Transfer" includes selling, assigning, pledging or leasing a firearm. END_STATUTE START_STATUTE44-7862. Firearms dealers; required actions; exceptions A. A firearms dealer that transfers firearms to persons in this state shall take reasonable measures to prevent the transfer of firearms to straw purchasers or firearms traffickers, including: 1. Screening for indicators of straw purchases and firearms traffickers, including asking questions of all prospective transferees to determine whether the prospective transferee is a legitimate, responsible purchaser, has or will obtain sufficient training and knowledge of the firearm and intends to provide the firearm to another person. 2. Maintaining and reviewing records of all trace requests received from any federal, state or local law enforcement agency to determine and avoid sales with indicators that the sales may be supplying the criminal market, including identifying the names of transferees that bought a firearm that is later traced to criminal conduct, and the patterns of those sales. 3. If a name is provided on the method of payment, ensuring that the name on the method of payment matches the name of the prospective transferee. 4. For transfers of firearms that are purchased over the internet or telephone or by other electronic means, ensuring that the individual who orders and pays for the firearm is the same individual who completes the transfer in person. 5. Prohibiting firearms dealer personnel from directing a customer on how to answer questions on forms that must be completed in connection with the sale. 6. Limiting purchases of firearms to one purchase per thirty days per civilian, nonlaw enforcement customer. B. A firearms dealer that transfers firearms to individuals shall take reasonable measures to prevent the transfer of firearms to individuals who are prohibited from purchasing firearms and individuals who are too dangerous to possess firearms, including: 1. Refusing to transfer a firearm until a background check has been completed and the transferee is cleared to purchase the firearm. 2. Refusing to transfer firearms or ammunition to an individual who exhibits signs of alcohol intoxication, drug use or possession or mental instability. 3. Searching available state court and department of public safety databases that may provide information on whether the prospective transferee is a prohibited possessor. 4. Refusing to transfer a firearm to an individual if the firearms dealer has information that the individual may be a danger to self or others. 5. Refusing to sell firearms at firearms shows unless all firearms sales at the shows are conducted only on completion of a background check. 6. Performing background checks for private sellers for a reasonable fee. C. A firearms dealer that sells a firearm over the internet or telephone or through other electronic means and that transfers the firearm to an in-state firearms dealer for transfer to a consumer shall take reasonable measures to prevent straw purchasers, firearms traffickers, prohibited possessors and other dangerous individuals from acquiring firearms, including: 1. Establishing adequate safeguards on its website and screening processes for telephonic or other electronic sales that are designed to identify potential straw transactions and illegal intended uses of the firearm. 2. Refusing to transfer a firearm if the name on the customer's account does not match the name on the method of payment. 3. Refusing to transfer a firearm if the firearms dealer has a reasonable suspicion that the transfer may be a straw purchase, the buyer will illegally use the firearm or the buyer exhibits signs of substance abuse or mental instability. 4. Clearly informing the in-state firearms dealer of the name of the individual who ordered and paid for the firearm and identifying that individual as the only individual who may complete the transfer. 5. Limiting purchases of firearms to one purchase per thirty days per civilian, nonlaw enforcement customer. D. A firearms dealer that transfers firearms to individuals shall take reasonable measures to prevent the theft of firearms and ammunition, including: 1. Developing and implementing a plan to protect its inventory that includes adequate locks, exterior lighting, surveillance cameras, alarm systems and other anti-theft measures and practices. The plan shall also address the safe storage of weapons and ammunition that are displayed during business hours. 2. Electronically recording the make, model, caliber or gauge and serial number of all firearms that are acquired not later than one business day after the acquisition and electronically recording the purchaser not later than one business day after the disposition. The firearms dealer shall maintain monthly backups of these records in a secure container. The firearms dealer must account for all firearms that are acquired but that are not yet disposed of through a daily electronic inventory check that is maintained at a secure location. 3. Providing immediate notification of loss or theft of any firearms to local and federal law enforcement authorities. E. A firearms dealer that transfers firearms to individuals shall adopt reasonable employment practices and policies to ensure maximum compliance with the law, including: 1. Requiring each firearms dealer employee to pass a preemployment background check, including a criminal history check that is the same as the criminal history check that firearms purchasers must complete, and contacting a prospective employee's references and prior employers. 2. Requiring each firearms dealer employee who transfers firearms to attend an initial training session before transferring firearms. The initial training session shall cover the law governing firearm transfers, how to recognize straw purchases, how to recognize indicators that a person is attempting to purchase firearms illegally and may be diverting those firearms for later sale or transfer, and how to respond to those attempts. Each firearms dealer employee shall attend a similar refresher training session on an annual basis. 3. Requiring each firearms dealer employee who transfers firearms to review the circumstances surrounding each firearm at issue in each trace request that is received, including a review of the videotape or electronic recording of the sale. 4. Firing A firearms dealer employee who participates in a clear or obvious straw purchase in violation of the firearms dealer's policy or law and seeking and supporting criminal prosecution, as appropriate. 5. Annually reviewing and updating compliance policies, procedures and training materials regarding firearms transactions. 6. Producing a biannual report of the firearms dealer's safety and compliance record and making it available to the public. The report shall specifically state the total number of firearms traced to the firearms dealer in the prior six months, broken down by month, the number of known straw purchases either attempted or completed within the prior six months, broken down by month, and the number of violations cited by the Bureau of Alcohol, Tobacco, Firearms and Explosives during the past one hundred eighty days. F. A firearms dealer that transfers firearms to individuals shall take reasonable measures to assist law enforcement in investigating and preventing criminal access to firearms, including: 1. Immediately notifying local, state and federal law enforcement authorities of suspected straw purchasers, prohibited possessors or dangerous individuals who attempt to obtain firearms. 2. Immediately notifying local, state and federal law enforcement authorities of multiple handgun purchases by the same customer that occur within any ninety-day period. 3. Videotaping and audio recording all point-of-sale firearms transactions and maintaining the videotapes or electronic recordings for at least five years. G. A firearms dealer that transfers firearms to individuals shall maintain a liability insurance policy with a minimum policy limit of $1,000,000 to potentially compensate victims for damage to property and for injury to or death of any individual as a result of a firearms dealer's wrongful conduct in the transfer of any firearm or ammunition. H. This section does not apply if the firearm transfer is either: 1. A bona fide gift between immediate family members. 2. Necessary to prevent imminent death or severe physical injury to the transferee and both: (a) The transfer lasts only as long as immediately necessary to prevent imminent death or severe physical injury to the transferee. (b) The transferee is not prohibited from possessing a firearm under state or federal law. END_STATUTE START_STATUTE44-7863. Violation; civil penalty A firearms dealer that violates this article is subject to a civil penalty of $500 for each violation. END_STATUTE |
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| 68 | 68 | | Be it enacted by the Legislature of the State of Arizona: |
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| 69 | 69 | | |
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| 70 | 70 | | Section 1. Title 44, chapter 36, Arizona Revised Statutes, is amended by adding article 2, to read: |
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| 71 | 71 | | |
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| 72 | 72 | | ARTICLE 2. FIREARMS DEALERS |
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| 73 | 73 | | |
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| 74 | 74 | | START_STATUTE44-7861. Definitions |
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| 76 | 76 | | In this article, unless the context otherwise requires: |
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| 77 | 77 | | |
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| 78 | 78 | | 1. "Firearms dealer" means a person that is any of the following: |
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| 79 | 79 | | |
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| 80 | 80 | | (a) Engaged in the business of selling firearms at wholesale or retail. |
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| 81 | 81 | | |
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| 82 | 82 | | (b) Engaged in the business of repairing firearms or of making or fitting special barrels, stocks or trigger mechanisms to firearms. |
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| 83 | 83 | | |
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| 84 | 84 | | (c) A pawnbroker as defined in section 44-1621. |
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| 85 | 85 | | |
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| 86 | 86 | | (d) A holder of a federal firearms license. |
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| 88 | 88 | | 2. "Firearms trafficker" means a person that sells or resells firearms without a federal firearms license. |
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| 89 | 89 | | |
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| 90 | 90 | | 3. "Immediate family member" means a spouse, domestic partner, parent, child, sibling, grandparent, grandchild, niece, nephew, first cousin, aunt or uncle, whether by adoption or blood. |
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| 91 | 91 | | |
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| 92 | 92 | | 4. "Person": |
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| 93 | 93 | | |
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| 94 | 94 | | (a) Means an individual, corporation, company, association, firm, partnership, society or joint stock company. |
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| 95 | 95 | | |
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| 96 | 96 | | (b) Does not include a holder of a federal firearms license. |
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| 97 | 97 | | |
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| 98 | 98 | | 5. "Straw purchaser" means a person that illegally obtains a firearm for another person. |
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| 99 | 99 | | |
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| 100 | 100 | | 6. "Trace request" means an inquiry from a law enforcement agency about the acquisition or disposition, or both, of a specifically identified firearm. |
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| 102 | 102 | | 7. "Transfer" includes selling, assigning, pledging or leasing a firearm. END_STATUTE |
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| 103 | 103 | | |
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| 104 | 104 | | START_STATUTE44-7862. Firearms dealers; required actions; exceptions |
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| 105 | 105 | | |
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| 106 | 106 | | A. A firearms dealer that transfers firearms to persons in this state shall take reasonable measures to prevent the transfer of firearms to straw purchasers or firearms traffickers, including: |
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| 107 | 107 | | |
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| 108 | 108 | | 1. Screening for indicators of straw purchases and firearms traffickers, including asking questions of all prospective transferees to determine whether the prospective transferee is a legitimate, responsible purchaser, has or will obtain sufficient training and knowledge of the firearm and intends to provide the firearm to another person. |
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| 109 | 109 | | |
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| 110 | 110 | | 2. Maintaining and reviewing records of all trace requests received from any federal, state or local law enforcement agency to determine and avoid sales with indicators that the sales may be supplying the criminal market, including identifying the names of transferees that bought a firearm that is later traced to criminal conduct, and the patterns of those sales. |
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| 111 | 111 | | |
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| 112 | 112 | | 3. If a name is provided on the method of payment, ensuring that the name on the method of payment matches the name of the prospective transferee. |
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| 113 | 113 | | |
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| 114 | 114 | | 4. For transfers of firearms that are purchased over the internet or telephone or by other electronic means, ensuring that the individual who orders and pays for the firearm is the same individual who completes the transfer in person. |
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| 115 | 115 | | |
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| 116 | 116 | | 5. Prohibiting firearms dealer personnel from directing a customer on how to answer questions on forms that must be completed in connection with the sale. |
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| 117 | 117 | | |
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| 118 | 118 | | 6. Limiting purchases of firearms to one purchase per thirty days per civilian, nonlaw enforcement customer. |
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| 119 | 119 | | |
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| 120 | 120 | | B. A firearms dealer that transfers firearms to individuals shall take reasonable measures to prevent the transfer of firearms to individuals who are prohibited from purchasing firearms and individuals who are too dangerous to possess firearms, including: |
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| 121 | 121 | | |
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| 122 | 122 | | 1. Refusing to transfer a firearm until a background check has been completed and the transferee is cleared to purchase the firearm. |
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| 123 | 123 | | |
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| 124 | 124 | | 2. Refusing to transfer firearms or ammunition to an individual who exhibits signs of alcohol intoxication, drug use or possession or mental instability. |
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| 125 | 125 | | |
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| 126 | 126 | | 3. Searching available state court and department of public safety databases that may provide information on whether the prospective transferee is a prohibited possessor. |
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| 127 | 127 | | |
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| 128 | 128 | | 4. Refusing to transfer a firearm to an individual if the firearms dealer has information that the individual may be a danger to self or others. |
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| 129 | 129 | | |
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| 130 | 130 | | 5. Refusing to sell firearms at firearms shows unless all firearms sales at the shows are conducted only on completion of a background check. |
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| 131 | 131 | | |
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| 132 | 132 | | 6. Performing background checks for private sellers for a reasonable fee. |
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| 133 | 133 | | |
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| 134 | 134 | | C. A firearms dealer that sells a firearm over the internet or telephone or through other electronic means and that transfers the firearm to an in-state firearms dealer for transfer to a consumer shall take reasonable measures to prevent straw purchasers, firearms traffickers, prohibited possessors and other dangerous individuals from acquiring firearms, including: |
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| 135 | 135 | | |
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| 136 | 136 | | 1. Establishing adequate safeguards on its website and screening processes for telephonic or other electronic sales that are designed to identify potential straw transactions and illegal intended uses of the firearm. |
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| 137 | 137 | | |
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| 138 | 138 | | 2. Refusing to transfer a firearm if the name on the customer's account does not match the name on the method of payment. |
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| 139 | 139 | | |
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| 140 | 140 | | 3. Refusing to transfer a firearm if the firearms dealer has a reasonable suspicion that the transfer may be a straw purchase, the buyer will illegally use the firearm or the buyer exhibits signs of substance abuse or mental instability. |
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| 141 | 141 | | |
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| 142 | 142 | | 4. Clearly informing the in-state firearms dealer of the name of the individual who ordered and paid for the firearm and identifying that individual as the only individual who may complete the transfer. |
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| 143 | 143 | | |
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| 144 | 144 | | 5. Limiting purchases of firearms to one purchase per thirty days per civilian, nonlaw enforcement customer. |
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| 145 | 145 | | |
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| 146 | 146 | | D. A firearms dealer that transfers firearms to individuals shall take reasonable measures to prevent the theft of firearms and ammunition, including: |
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| 147 | 147 | | |
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| 148 | 148 | | 1. Developing and implementing a plan to protect its inventory that includes adequate locks, exterior lighting, surveillance cameras, alarm systems and other anti-theft measures and practices. The plan shall also address the safe storage of weapons and ammunition that are displayed during business hours. |
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| 149 | 149 | | |
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| 150 | 150 | | 2. Electronically recording the make, model, caliber or gauge and serial number of all firearms that are acquired not later than one business day after the acquisition and electronically recording the purchaser not later than one business day after the disposition. The firearms dealer shall maintain monthly backups of these records in a secure container. The firearms dealer must account for all firearms that are acquired but that are not yet disposed of through a daily electronic inventory check that is maintained at a secure location. |
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| 151 | 151 | | |
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| 152 | 152 | | 3. Providing immediate notification of loss or theft of any firearms to local and federal law enforcement authorities. |
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| 153 | 153 | | |
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| 154 | 154 | | E. A firearms dealer that transfers firearms to individuals shall adopt reasonable employment practices and policies to ensure maximum compliance with the law, including: |
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| 155 | 155 | | |
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| 156 | 156 | | 1. Requiring each firearms dealer employee to pass a preemployment background check, including a criminal history check that is the same as the criminal history check that firearms purchasers must complete, and contacting a prospective employee's references and prior employers. |
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| 157 | 157 | | |
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| 158 | 158 | | 2. Requiring each firearms dealer employee who transfers firearms to attend an initial training session before transferring firearms. The initial training session shall cover the law governing firearm transfers, how to recognize straw purchases, how to recognize indicators that a person is attempting to purchase firearms illegally and may be diverting those firearms for later sale or transfer, and how to respond to those attempts. Each firearms dealer employee shall attend a similar refresher training session on an annual basis. |
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| 159 | 159 | | |
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| 160 | 160 | | 3. Requiring each firearms dealer employee who transfers firearms to review the circumstances surrounding each firearm at issue in each trace request that is received, including a review of the videotape or electronic recording of the sale. |
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| 161 | 161 | | |
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| 162 | 162 | | 4. Firing A firearms dealer employee who participates in a clear or obvious straw purchase in violation of the firearms dealer's policy or law and seeking and supporting criminal prosecution, as appropriate. |
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| 163 | 163 | | |
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| 164 | 164 | | 5. Annually reviewing and updating compliance policies, procedures and training materials regarding firearms transactions. |
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| 165 | 165 | | |
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| 166 | 166 | | 6. Producing a biannual report of the firearms dealer's safety and compliance record and making it available to the public. The report shall specifically state the total number of firearms traced to the firearms dealer in the prior six months, broken down by month, the number of known straw purchases either attempted or completed within the prior six months, broken down by month, and the number of violations cited by the Bureau of Alcohol, Tobacco, Firearms and Explosives during the past one hundred eighty days. |
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| 167 | 167 | | |
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| 168 | 168 | | F. A firearms dealer that transfers firearms to individuals shall take reasonable measures to assist law enforcement in investigating and preventing criminal access to firearms, including: |
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| 169 | 169 | | |
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| 170 | 170 | | 1. Immediately notifying local, state and federal law enforcement authorities of suspected straw purchasers, prohibited possessors or dangerous individuals who attempt to obtain firearms. |
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| 171 | 171 | | |
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| 172 | 172 | | 2. Immediately notifying local, state and federal law enforcement authorities of multiple handgun purchases by the same customer that occur within any ninety-day period. |
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| 173 | 173 | | |
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| 174 | 174 | | 3. Videotaping and audio recording all point-of-sale firearms transactions and maintaining the videotapes or electronic recordings for at least five years. |
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| 175 | 175 | | |
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| 176 | 176 | | G. A firearms dealer that transfers firearms to individuals shall maintain a liability insurance policy with a minimum policy limit of $1,000,000 to potentially compensate victims for damage to property and for injury to or death of any individual as a result of a firearms dealer's wrongful conduct in the transfer of any firearm or ammunition. |
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| 177 | 177 | | |
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| 178 | 178 | | H. This section does not apply if the firearm transfer is either: |
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| 179 | 179 | | |
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| 180 | 180 | | 1. A bona fide gift between immediate family members. |
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| 181 | 181 | | |
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| 182 | 182 | | 2. Necessary to prevent imminent death or severe physical injury to the transferee and both: |
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| 183 | 183 | | |
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| 184 | 184 | | (a) The transfer lasts only as long as immediately necessary to prevent imminent death or severe physical injury to the transferee. |
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| 185 | 185 | | |
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| 186 | 186 | | (b) The transferee is not prohibited from possessing a firearm under state or federal law. END_STATUTE |
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| 187 | 187 | | |
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| 188 | 188 | | START_STATUTE44-7863. Violation; civil penalty |
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| 189 | 189 | | |
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| 190 | 190 | | A firearms dealer that violates this article is subject to a civil penalty of $500 for each violation. END_STATUTE |
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