EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0773*
SENATE BILL 773
E4 2lr1916
By: Senator Carter
Introduced and read first time: February 7, 2022
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 15, 2022
CHAPTER ______
AN ACT concerning 1
Public Safety – Firearms Dealers – Storage Vaults for Regulated Firearms 2
Income Tax – Credit for Firearm Safety Devices 3
FOR the purpose of requiring an applicant for a regulated firearms dealer’s license to 4
provide evidence satisfactory to the Secretary of State Police that the applicant’s 5
proposed place of business has a certain vault to store all regulated firearms to be 6
offered for sale; requiring a licensee to store all regulated firearms for sale in a 7
certain vault when the licensee’s place of business is closed; requiring a certain 8
licensee to comply with the storage requirement on or before a certain date; and 9
generally relating to regulated firearms dealers and regulated firearms authorizing 10
a credit against the State income tax for the purchase of certain firearm safety 11
devices during the taxable year; making the credit refundable; and generally relating 12
to a credit against the State income tax for firearm safety devices. 13
BY adding to 14
Article – Public Safety 15
Section 5–110.1 16
Annotated Code of Maryland 17
(2018 Replacement Volume and 2021 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Public Safety 20
Section 5–114 21
Annotated Code of Maryland 22
(2018 Replacement Volume and 2021 Supplement) 23 2 SENATE BILL 773
BY adding to 1
Article – Tax – General 2
Section 10–754 3
Annotated Code of Maryland 4
(2016 Replacement Volume and 2021 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Public Safety 8
5–110.1. 9
(A) BEFORE THE SECRETARY ISSUES A DE ALER’S LICENSE TO AN 10
APPLICANT, THE APPLICANT SHALL PROVIDE EVIDENCE SAT ISFACTORY TO THE 11
SECRETARY THAT THE APPLICANT ’S PROPOSED PLACE OF BUSINESS HAS A VAULT 12
THAT IS SECURED TO T HE FLOOR AND THAT CA N HOLD ALL OF THE RE GULATED 13
FIREARMS TO BE OFFER ED FOR SALE. 14
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 15
WHEN A LICENSEE ’S PLACE OF BUSINES S IS CLOSED, THE LICENSEE SHALL S TORE 16
ALL REGULATED FIREAR MS FOR SALE IN A VAU LT DESCRIBED IN SUBS ECTION (A) OF 17
THIS SECTION. 18
(2) A PERSON WHO HOLDS A D EALER’S LICENSE ON OR BEFO RE 19
OCTOBER 1, 2022, SHALL COMPLY WITH TH IS SUBSECTION ON OR BEFORE JULY 1, 20
2023. 21
5–114. 22
(a) (1) The Secretary shall suspend a dealer’s license if the licensee: 23
(i) is under indictment for a crime of violence; or 24
(ii) is arrested for a violation of this subtitle that prohibits the 25
purchase or possession of a regulated firearm. 26
(2) (i) The Secretary may suspend a dealer’s license if the licensee is 27
not in compliance with the record keeping and reporting requirements of § 5–145 of this 28
subtitle. 29
(ii) The Secretary may lift a suspension under this paragraph after 30
the licensee provides evidence that the record keeping violation has been corrected. 31
(b) The Secretary shall revoke a dealer’s license if: 32 SENATE BILL 773 3
(1) it is discovered that false information has been supplied or false 1
statements have been made in an application required by this subtitle; or 2
(2) the licensee: 3
(i) is convicted of a disqualifying crime; 4
(ii) is convicted of a violation classified as a common law crime and 5
receives a term of imprisonment of more than 2 years; 6
(iii) is a fugitive from justice; 7
(iv) is a habitual drunkard; 8
(v) is addicted to a controlled dangerous substance or is a habitual 9
user; 10
(vi) has spent more than 30 consecutive days in a medical institution 11
for treatment of a mental disorder, unless the licensee produces a physician’s certificate, 12
issued after the last institutionalization and certifying that the licensee is capable of 13
possessing a regulated firearm without undue danger to the licensee or to another; 14
(vii) has knowingly or willfully manufactured, offered to sell, or sold 15
a handgun not on the handgun roster in violation of § 5–406 of this title; or 16
(viii) has knowingly or willfully participated in a straw purchase of a 17
regulated firearm. 18
(C) THE SECRETARY MAY DENY A DEALER’S LICENSE TO AN APP LICANT OR 19
SUSPEND OR REVOKE A DEALER’S LICENSE IF THE APP LICANT OR LICENSEE F AILS 20
TO COMPLY WITH § 5–110.1 OF THIS SUBTITLE . 21
[(c)] (D) If the Secretary suspends or revokes a dealer’s license, the Secretary 22
shall notify the licensee in writing of the suspension or revocation. 23
[(d)] (E) A person whose dealer’s license is suspended or revoked may not engage 24
in the business of selling, renting, or transferring regulated firearms, unless the suspension 25
or revocation has been subsequently withdrawn by the Secretary or overruled by a court in 26
accordance with § 5–116 of this subtitle. 27
Article – Tax – General 28
10–754. 29
(A) IN THIS SECTION, “FIREARM SAFETY DEVIC E” MEANS ANY DEVICE THA T: 30 4 SENATE BILL 773
(1) (I) WHEN INSTALLED ON A FIREARM, IS DESIGNED TO PREVE NT 1
THE FIREARM FROM BEING O PERATED WITHOUT FIRS T DEACTIVATING THE D EVICE; 2
AND 3
(II) IS DESIGNED TO PREVE NT THE OPERATION OF THE 4
FIREARM BY ANYONE NO T HAVING ACCESS TO T HE DEVICE; OR 5
(2) IS A SAFE, GUN SAFE, GUN CASE, LOCK BOX, OR OTHER DEVICE 6
THAT IS DESIGN ED TO BE OR CAN BE U SED TO STORE A FIREA RM AND THAT IS 7
DESIGNED TO BE UNLOC KED ONLY BY MEANS OF A KEY, A COMBINATION , OR OTHER 8
SIMILAR MEANS . 9
(B) (1) AN INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE STATE 10
INCOME TAX FOR THE A MOUNT PAID BY THE IN DIVIDUAL TO PURCHASE A FIREARM 11
SAFETY DEVICE DURING THE TAXABLE YEAR IN AN AMOUNT EQUAL TO T HE LESSER 12
OF: 13
(I) 100% OF THE PURCHASE PRIC E FOR THE FIREARM SA FETY 14
DEVICE; OR 15
(II) $250. 16
(2) FOR ANY TAXABLE YEAR , THE TAX CREDIT UNDER THIS SECTION 17
MAY BE CLAIMED ONLY ONCE BY AN INDI VIDUAL. 18
(C) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE YEAR 19
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , THE INDIVIDUAL MAY 20
CLAIM A REFUND IN TH E AMOUNT OF THE EXCE SS. 21
(D) TO CLAIM THE CREDIT A LLOWED UNDER THIS SECTION, THE 22
INDIVIDUAL SHALL ATT ACH TO THE INDIVIDUA L’S INCOME TAX RETURN OR 23
OTHERWISE FILE WITH THE COMPTROLLER PROOF OF PAYMENT BY THE 24
INDIVIDUAL OF THE PU RCHASE PRICE FOR WHI CH THE INDIVIDUAL MA Y CLAIM THE 25
CREDIT UNDER THIS SE CTION. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
October July 1, 2022, and shall be applicable to all taxable years beginning after December 28
31, 2021. 29