House approves tighter rules, training and penalties for firearms dealers

The Colorado House on March 19 approved House Bill 11‑26, a sweeping cleanup and implementation bill for the firearms dealer division that expands recordkeeping to cover all firearms transactions, clarifies the definition of ‘‘responsible person,’’ and sets new training and security requirements for dealers.

Supporters, led by Representative Woodrow, said the measure fixes gaps identified during implementation of the 2024 dealer law and is intended to help law enforcement trace guns and reduce unsafe practices. Representative Woodrow moved the bill and introduced the committee report before floor debate began.

Opponents argued the bill imposes costly mandates on small, often family‑run Federal Firearms Licensees (FFLs). Representative Richardson and other rural members repeatedly warned that detailed security rules, equipment costs and a steep fine schedule could force some small dealers to close or relocate out of state. "This bill increases regulatory burden, legal exposure and the threat of fines on law‑abiding small businessmen who happen to be firearms dealers," Representative Richardson said during debate.

Members offered and voted on multiple amendments during a constrained special‑orders debate. Sponsors revised the bill in committee to move many of the specific security standards to rulemaking, and during floor debate lawmakers negotiated changes to training timelines, the definition of employee and the penalties that the department may impose for repeated violations. Several attempts to strike or roll back training and security provisions failed on the floor.

The bill creates an intermediate enforcement step: fines administered by the Department of Revenue before suspension or revocation of a dealer permit. Debate centered on the top line of the fine authority; sponsors noted later committee compromise language and said the agency will adopt a rule structure that lists categories and ranges for fines. The final passage occurred after the committee report and floor amendments were adopted; the transcript records that the bill passed as amended (final vote tally not specified in the floor record).

What happens next: the bill was sent to engrossment and placement on the calendar for third‑reading and final passage. Implementation will require department rulemaking on detailed security and fine categories, which the bill directs the Department of Revenue to develop and publish.

Why it matters: HB 11‑26 changes how retail firearm commerce is regulated in Colorado by widening recordkeeping and compliance duties, clarifying who counts as a dealer "responsible person," and giving state regulators intermediate enforcement options beyond warnings and permit revocation. Supporters say those changes make the program enforceable; critics say the direct costs and potential fines threaten small rural businesses.

Passage and formal actions: The committee report for HB 11‑26 was presented on the floor and the House recorded the bill as passed as amended on March 19, 2026. The transcript includes many floor amendment votes and extended exchanges that will shape the department's rulemaking.