Requires the creation and imposition of restrictive commercial practices and stringent recordkeeping and reporting to prevent gun sales to criminals

Summary of provisions

Section 1 of the bill sets forth legislative findings.

Section 2 adds a new Article 39-BB to the general business law. The new article contains ten sections as follows:

Section 875-a sets forth definitions.

Section 875-b requires gun dealers to adopt reasonable measures to prevent sales and transfers to criminals to keep guns from being diverted from the legal stream of commerce to individuals who are not legally entitled to purchase or possess such weapons. This section also requires action by the superintendent of state police to thwart illegal gun trafficking

Section 875-c requires gun dealers to implement a security plan for securing firearms, rifles and shotguns, including providing for the display and storage of weapons and ammunition in a secure manner, and requiring an alarm system installed and maintained by an alarm company operator properly licensed pursuant to state law.

Section 875-d requires that retail dealers exclude persons under eighteen from the portions of the premises where firearms, rifles and shotguns or ammunition are stocked or sold, unless the minor is accompanied by a parent or guardian.

Section 875-e provides that a dealer shall sell or otherwise dispose of firearms, rifles and shotguns only at the location listed on the dealer's federal firearms license or at gun shows.

Section 875-f provides that all employees engaged in the retail sale of firearms, rifles and shotguns must be at least 21 years of age and shall not participate in the sale or disposition of firearms, rifles and shotguns without receiving the training required by this section. The section requires the retail dealer to provide the training specified.

Section 875-g sets forth record keeping requirements for gun dealers, and requires submission to the New York State Police every April and October.

Section 875-h requires gun dealers to establish internal compliance procedures, and to certify to the superintendent of the state police compliance with the requirements of this new Article 39-BB on an annual basis. The section also requires the superintendent of state police to promulgate regulations establishing periodic inspections of

the premises of dealers to determine compliance by the dealer with the requirements of this article. Every dealer shall provide the division of state police full access to such dealer's premises for such inspections.

Section 875-i authorizes the superintendent of state police to promulgate additional rules and regulations to prevent firearms, rifles and shotguns from being diverted from the legal stream of commerce.

Section 875-j provides that a violation of any provision of this new Article 39-BB is a class A misdemeanor and provides that a second violation occurring within five years of a prior conviction for a violation of any provision of this article is a class E felony.

Section 3 amends subdivision 1 of section 400.00 of the penal law, as amended by chapter 1 of the laws of 2013, to provide that no person shall engage in the business of dealer in firearms unless such person complies with the provisions of Article 39-BB of the general business law.

Section 4 amends subdivisions 11 and 12 of section 400.00 of the penal law, as amended by chapter 1 of the laws of 2013, to provide that a license to engage in the business of dealer may be revoked or suspended for any violation of the provisions of Article 39-BB of the general business law, and that in addition to the records required of gunsmiths and dealers in firearms, such persons shall be required to comply with the provisions of Article 39-BB.

Section 5 provides a severability provision. Section 6 provides the effective date.

Justification

Firearms, rifles and shotguns are used to kill over 30,000 individuals in the United Sates every year, including 1,000 individuals in New York state alone. Additionally, there are 100,000 nonfatal injuries across the country. There is a thriving underground market for illegal firearms, largely driven by demand from drug gangs and other criminals. A highly efficient and continuous business practice exists in which firearms are moved from legal manufacture and sale to prohibited purchasers, making them illegal firearms. In 2013, according to a review by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) of trace data compiled for several regions in the state, including Albany, Buffalo, Rochester, Syracuse, Long Island and New York City that calendar year, 8,539 firearms were recovered and traced, 2,164 of which were long guns. Outside New York City, long guns are sold without a permit. 64.4% of the firearms recovered from crimes in New York in 2013 were found in New York City. In 2011, ATF trace data showed that 90% of the traceable guns used in crimes in the five boroughs were from out of state Statewide, in 2011, 68% of traced crime guns recovered in New York came from out of state. A significant portion of guns involved in crimes upstate originate within the state. For example, according to 2009 ATF crime gun trace data, 69% of crime guns in the Buffalo area and 50% of crime guns in the Syracuse area originated within New York state.

A substantial portion of illegal firearms are diverted to the illegal market through licensed gun dealers. Rogue gun dealers play a key role

in this market. These rogue dealers funnel guns to the illegal market through a variety of channels. One of the most common means is to allow "straw purchases." A straw purchase occurs when a person purchases a gun on behalf of a prohibited person. The ATF conducted an investigation of gun trafficking from July 1996 to December 1998 and found almost 26,000 trafficked firearms were associated with investigations in which there was a straw purchaser. Almost 50% of all trafficking investigations involved straw purchasers, with an average of 37 firearms trafficked per investigation.

Moreover, this problem is not limited to unlicensed sellers, and clearly includes federal firearms licensees (FFLs). Indeed, although FFLs were involved in under 10% of the trafficking investigations undertaken by ATF, they were associated with the largest number of diverted firearms - over 40,000 guns, which is nearly half of the total number of trafficked firearms documented during the two-year period of ATF's investigation. Additionally, a 2010 report by Mayors Against Illegal Guns indicated that several states which allow state authorities to supplement the federal ATF inspection with routine inspections provide law enforcement with more opportunities to uncover dealers in violation of the law. These inspections also help identify dealers who exercise lax oversight over their inventory and may lead to improved compliance with federal, state, and local laws.

The first part of this bill seeks to prevent the diversion of firearms to the illegal marketplace by addressing the problems with New York State's current laws governing firearm dealers. Specifically, this bill adds a new Article 39-BB to the General Business Law which: (1) requires gun dealers to display and store weapons and ammunition in a secure manner; (2) provides that guns may be sold only at the location listed on the dealer's federal firearms license or at gun shows; (3) requires that all dealer employees making retail gun sales must be at least 21 years of age and must receive adequate training; (4) provides that children may not enter premises where guns are sold unless accompanied by a parent or guardian; (5) requires gun dealers to maintain sales records and periodically submit them to the state police; and (6) requires gun dealers to establish internal compliance procedures, and to certify compliance with the requirements of new Article 39-BB on an annual basis. A violation of new Article 39-BB is a class A misdemeanor, and a second violation within five years is a class E felony. The additional requirements set forth in this bill will help to reduce the diversion of firearms to the illegal market, and will also assist police departments, prosecutors and other law enforcement officials in their efforts to trace and recover illegal weapons. As a result, this bill will help to reduce the number of crimes and other violent acts involving firearms in New York State every year, which will help save lives and prevent needless injuries caused by use of illegal weapons.

Prior legislative history

2013-2014 - S.41 2011-12: S.965 2010:S 1715-A Referred to Codes; A.1093-A Passed Assembly 2007-2008: S.2404-B Referred to Codes; A.6525-A Passed Assembly 2005-2006: S.2944 Referred to Codes; A.4958 Referred to Codes 2003-2004: S.5420 Referred to Codes; A.7002-A Referred to Codes 2001: A.9255-A Ordered to Third Reading

Fiscal implications

New York State and its local governments will realize substantial savings in future years through reduced costs in the prosecution of gun-related crimes and the treatment of gun-related injuries.

Effective date

The bill takes effect on the ninetieth day after it shall have become a law; provided that the superintendent of the division of state police is authorized and directed to immediately adopt, amend, and promulgate such rules and regulation as may be necessary and desirable to effectuate the purpose of section two of this act.