HB3422 99TH GENERAL ASSEMBLY

LRB099 09504 RLC 29712 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3422

Introduced , by Rep. Christian L. Mitchell

SYNOPSIS AS INTRODUCED:

See Index

Creates the Gun Dealer and Ammunition Seller Act. Provides that it is unlawful for any person to engage in the business of selling, leasing, or otherwise transferring firearms or ammunition without a dealer license issued by the Department of Financial and Professional Regulation. Provides that a dealer license expires 5 years after the date of issuance. Provides that a license may be renewed for additional 5-year periods if the licensee submits a timely application for renewal, accompanied by a nonrefundable renewal fee established by the Department. Establishes licensing requirements. Provides that the Department shall require each applicant for a dealer license or the renewal of a dealer license, as part of the application process, and each prospective employee of a licensee, as a condition of employment, to: (1) provide a copy of a currently valid Firearm Owner's Identification Card issued to that person; and (2) authorize an investigation to determine if any of the conditions for license denial exist. Establishes conditions for denial of a license. Provides that the licensee shall not allow any person to consume alcohol on the premises of the business. Provides that the Department of State Police may establish rules requiring employees and agents of licensees to undergo training regarding legal requirements and responsible business practices as applicable to the sale or transfer of firearms or ammunition. Amends the Firearm Owners Identification Card Act and the Firearm Concealed Carry Act to make conforming changes.

CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning firearms.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Gun Dealer and Ammunition Seller Act.

Section 5. Legislative findings; purpose and intent. The General Assembly hereby finds and declares that the business of selling, leasing, or otherwise transferring firearms or ammunition is hereby declared to affect the public health, safety, and welfare of the people of Illinois and to be subject to regulation in the public interest. The purpose of this Act is to protect and benefit the public by requiring firearms dealers and ammunition sellers to obtain a State license and conduct business responsibly, and to protect the public from the diversion of firearms or ammunition into the illegal market. This Act shall be liberally construed to best carry out these subjects and purposes.

Section 10. Definitions. As used in this Act:

"Ammunition" has the same meaning as "firearm ammunition" in Section 1.1 of the Firearm Owners Identification Card Act.

"Applicant" means any person who applies for a dealer license, or the renewal of the license, to sell, lease, or transfer firearms or ammunition.

"Dealer license" means a license issued by the Department to sell, lease, or transfer firearms or ammunition under this Act.

"Department" means the Department of Financial and Professional Regulation.

"Engage in the business of selling, leasing, or otherwise transferring firearms or ammunition" means to:

(1) conduct a business selling, leasing, or transferring firearms or ammunition;

(2) hold himself or herself out as engaged in the business of selling, leasing or otherwise transferring firearms or ammunition; or

(3) sell, lease, or transfer firearms or ammunition in quantity, in series, or in any other manner indicative of trade.

"Firearm" has the same meaning as "firearm" in Section 1.1 of the Firearm Owners Identification Card Act.

"Licensee" or "firearms dealer licensee" means any person engaged in the business of selling, leasing, or otherwise transferring firearms or ammunition who has obtained a license from the Department to sell, lease, or transfer firearms or ammunition under this Act.

Section 15. License requirement. It is unlawful for any person to engage in the business of selling, leasing, or otherwise transferring firearms or ammunition without a dealer license, as required by this Act.

Section 20. Application for a dealer license.

(a) Any person who is required to obtain a dealer license under this Act shall:

(1) complete and submit to the Department an application, in writing, signed under penalty of perjury, on a form prescribed by the Department;

(2) provide all relevant information that the Department requests to demonstrate compliance with this Act, including:

(A) the applicant's full name and any other name by which the applicant has ever been known;

(B) the home address and telephone number of the applicant;

(C) the present occupation, business address and business telephone number of the applicant;

(D) information relating to every other license to sell, lease, transfer, purchase, possess, or carry firearms or ammunition which the applicant or an employer of the applicant sought at any time from the federal government or from any state or subdivision of any state, including, but not limited to, the type of license sought, the date of each application and whether it resulted in the issuance of the license, and the date and circumstances of any revocation or suspension;

(E) the address of the proposed location for which the license is sought, if different than applicant's business address;

(F) the business name, and the name of any corporation, partnership, or other entity that has any ownership in, or control over, the business;

(G) the names, dates of birth, and addresses of all paid or unpaid employees, agents, or volunteers who will have access to or control of firearms or ammunition, if any;

(H) proof of a possessory interest in the property at which the proposed business will be conducted, as owner, lessee, or other legal occupant, and, if the applicant is not the owner of record of the real property upon which the applicant's business is to be located and conducted, the written consent of the owner of record of the real property to the applicant's proposed business;

(I) the date, location, and nature of all criminal convictions of the applicant, if any, in any jurisdiction in the United States;

(J) proof that the applicant has applied for or received a certificate of registration under the Retailers' Occupation Tax Act; and

(K) written approval from the sheriff of the county or chief of police of the municipality in which the business is located, together with a statement of any additional requirements or conditions the business must fulfill in order to comply with local law or ordinance, including requirements or conditions imposed by the sheriff or chief at his or her discretion. A municipality or county may impose additional requirements for the licensing and operation of licensees beyond the requirements of this Act, provided they are included within this statement. This subparagraph (K) supersedes Section 13.1 of the Firearm Owners Identification Card Act and Section 90 of the Firearm Concealed Carry Act as applied to the local regulation of licensees and applications for dealer licenses.

(b) The Department may charge a fee to cover the administrative costs of the issuance of the license.

Section 25. Employee background checks.

(a) In addition to the requirements of Section 20, the Department shall require each applicant for a dealer license or the renewal of a dealer license, as part of the application process, and each prospective employee of a licensee, as a condition of employment, to:

(1) provide a copy of a currently valid Firearm Owner's Identification Card issued to that person; and

(2) authorize an investigation to determine if any of the of the conditions listed in Section 30 exist.

(b) The Department shall contact the Department of State Police with the applicant or prospective employee's Firearm Owner's Identification Card number to determine the validity of the applicant or prospective employee's Firearm Owner's Identification Card. The Department of State Police shall provide the Department with an approval number if the Firearm Owner's Identification Card is valid.

(c) Prior to renewal of a dealer license, the Department shall contact the Department of State Police to confirm the validity of the Firearm Owner's Identification Card issued to each employee of the licensee who will have access to or control over firearms or ammunition, and the Department of State Police shall provide the Department with an approval number if the Firearm Owner's Identification Card is currently valid.

(d) The Department may conduct any additional investigation necessary to determine whether any of the conditions listed in Section 30 exist for each applicant, employee, or prospective employee. The Department may require each individual to provide fingerprints, a recent photograph, a signed authorization for the release of pertinent records, and any additional information which the Department considers necessary to complete the investigation.

(e) A licensee shall not allow an employee or other agent of the licensee to have access to or control over firearms or ammunition until the Department has conducted an investigation under this Section, and verified that the person is the holder of a currently valid Firearm Owner's Identification Card and that none of the conditions listed in Section 30 exist, as applied to the person.

(f) This Section shall only apply to employees, or prospective employees of a licensee if those individuals will have access to or control over firearms or ammunition. This Section shall apply to unpaid or paid volunteers or agents of the licensee who will have access to or control over firearms or ammunition, just as it applies to employees.

Section 30. Grounds for license denial. The Department shall deny the issuance or renewal of a dealer license if the operation of the business would not or does not comply with federal, State, or local law or ordinance, including this Act, or if the applicant:

(1) is under 21 years of age;

(2) is not licensed as required by all applicable federal and local laws and ordinances;

(3) has made a false or misleading statement of a material fact or omission of a material fact in an application for a dealer license, or in any other documents submitted to the Department under this Act. If a license is denied on this ground, the applicant is prohibited from reapplying for a license for a period of 5 years;

(4) has had a license or permit to sell, lease, transfer, purchase, or possess firearms or ammunition from the federal government or the government of any state or subdivision of any state revoked or suspended for good cause within the preceding 5 years, or been terminated from employment with a licensee or former licensee for good cause within the preceding 5 years; and

(5) is prohibited by any federal, State, or local law or ordinance from purchasing or possessing firearms or ammunition.

Section 35. Issuance of dealer license; duration.

(a) A dealer license expires 5 years after the date of issuance. A license may be renewed for additional 5-year periods if the licensee submits a timely application for renewal, accompanied by a nonrefundable renewal fee established by the Department. The renewal application and the renewal fee must be received by the Department no later than 90 days before the expiration of the current license.

(b) A decision regarding issuance or renewal of the dealer license may be appealed in the manner provided under the Illinois Administrative Procedure Act.

Section 40. Semi-annual inventory reports. Within the first 5 business days of April and October of each year, the licensee shall cause a physical inventory to be taken that includes a listing of each firearm held by the licensee by make, model, and serial number, together with a listing of each firearm the licensee has sold since the last inventory period. In addition, the inventory shall include a listing of each firearm lost or stolen that is required to be reported under federal law. The licensee shall include with the inventory an affidavit signed by an authorized agent or employee on behalf of the licensee under penalty of perjury stating that within that particular date in April or October, as the case may be, the signer personally confirmed the presence of the firearms reported on the inventory. The licensee shall maintain the inventory on the premises for which the license was issued for a period of not less than 5 years from the date of the inventory and shall make the copy available for inspection by federal, State, or local law enforcement upon request.

Section 45. Rules. The Department of State Police may adopt rules requiring employees and agents of licensees to undergo training regarding legal requirements and responsible business practices as applicable to the sale or transfer of firearms or ammunition. Before an employee or agent of a licensee has access to or control over firearms or ammunition in the licensee's inventory, the licensee shall ensure that the employee or agent receives the training that the Department of State Police may require.

Section 50. Display of dealer license. The dealer license, or a certified copy of it, shall be displayed in a prominent place on the business premises where it can be easily seen by those entering the premises.

Section 55. Non-assignability. A dealer license issued under this Act is not assignable. Any attempt to assign a dealer license shall result in revocation of the license.

Section 60. Ammunition sales records.

(a) No licensee or other person acting under the licensee's authority shall sell or otherwise transfer ammunition from the licensee's inventory without recording, on a form to be provided by the Department, the date of the transaction, the name, address, telephone number, and date of birth of the transferee, the number of the transferee's current Firearm Owner's Identification Card, or, if the transferee does not have a Firearm Owner's Identification Card, the driver's license or other government-issued identification card containing a photograph of the transferee and the name of the governmental authority that issued it, the caliber or gauge, brand, type, and amount of any ammunition transferred, the transferee's signature, and the name of the licensee's agent or employee who processed the transaction. The licensee or other person acting under the licensee's authority shall also, at the time of purchase or transfer, obtain the right thumbprint of the transferee on this form.

(b) A licensee shall maintain the forms described in this Section on the premises for which the licensee was issued for a period of not less than 5 years from the date of the sale or transfer, and shall make the copy available for inspection by federal, State, or local law enforcement upon request.

Section 65. Law enforcement inspections.

(a) Before issuance or renewal of the dealer license, the Department of State Police or the local sheriff or local chief of police may inspect the premises of the proposed business to ensure compliance with this Act.

(b) Licensees shall have their places of business open for inspection by federal, State, and local law enforcement during all hours of operation. Licensees shall make all records, documents, firearms, and ammunition accessible for inspection upon the request of federal, State, or local law enforcement.

Section 70. On-site security.

(a) The licensed business location shall be equipped with a video surveillance system sufficient to monitor the critical areas of the business premises, including, but not limited to, all places where firearms are stored, handled, sold, transferred, or carried. The video surveillance system shall operate without interruption, whenever the licensee is open for business. Whenever the licensee is not open for business, the system shall be triggered by a motion detector and begin recording immediately upon detection of any motion within the monitored area. In addition, every sale or transfer of a firearm shall be recorded by the video surveillance system in a way that the facial features of the purchaser or transferee are clearly visible. The stored images shall be maintained on the business premises of the licensee for a period of not less than one year from the date of recordation and shall be made available for inspection by federal, State, or local law enforcement upon request. The licensee shall post a sign in a conspicuous place at each entrance to the premises that states in block letters not less than one inch in height:

THESE PREMISES ARE UNDER VIDEO SURVEILLANCE. YOUR IMAGE MAY BE RECORDED.

(b) In addition to the requirements of this Section, a licensee shall comply with standards specifying minimum security requirements for licensees to prevent thefts as adopted by the Department of State Police. By January 1, 2017, all licensees shall comply with the standards. The standards may provide for:

(1) the manner of securing firearms and ammunition when the location is both open and closed for business;

(2) alarm systems for licensees; and

(3) other reasonable requirements to deter illegal sales and reduce the risk of burglaries and other crimes or accidents at licensees' business establishments.

Section 75. Alcohol consumption on premises. The licensee shall not allow any person to consume alcohol on the premises of the business.

Section 80. Location of business premises.

(a) The business of a licensee shall be carried on only in the building located at the street address shown on the license, and all firearms and ammunition in the inventory of a licensee must be kept at the licensed business location. This subsection does not prohibit the licensee from participating in a gun show or event as defined under federal law that is authorized by federal, State, or local law or ordinance upon compliance with those laws.

(b) The business premises shall not be located in any district or area that is zoned for residential use, or within 1,000 feet of any school, pre-school, day-care facility, or in any location where it violates a valid local ordinance.

Section 85. Warnings to consumers.

(a) A licensee shall post in a conspicuous position on the premises where the licensee conducts business a sign that contains the following warning in block letters not less than one inch in height: "With few exceptions, it is unlawful for you to:

(1) store or leave an unsecured firearm in a place where a child can obtain access to it,

(2) sell or transfer your firearm to someone else without receiving approval for the transfer from the Department of State Police, or

(3) fail to report the loss or theft of your firearm to local law enforcement within 72 hours."

(b) The Department of State Police may require licensees to post additional warnings or otherwise provide information to consumers regarding firearms laws and the safe storage of firearms. A licensee shall post any warnings or provide any information to consumers as required by the Department.

Section 90. Compliance by existing businesses. A person engaged in the business of selling, leasing, or otherwise transferring any firearm or ammunition on the effective date of this Act shall, within 180 days of the effective date, comply with this Act. However, any person whose business is located in any location described in Section 80 of this Act may continue to sell, lease, or transfer firearms or ammunition for up to 2 years after the effective date of this Act. After the 2-year period has expired, that person is prohibited from selling, leasing or transferring firearms or ammunition in the named location.

Section 95. Penalty.

(a) Any person who engages in the business of selling, leasing, or otherwise transferring firearms or ammunition without a dealer license as required by this Act is guilty of a Class 4 felony. The Department, the Department of State Police and any law enforcement officer shall have the authority and power to investigate any and all unlicensed activity.

(b) The Department may refuse to renew, or may revoke or suspend a license, or place on probation, reprimand, or take other disciplinary or non-disciplinary action against a licensee as the Department may deem appropriate, including imposing fines not to exceed $10,000, for each violation of any provision of this Act or any other applicable federal, State, or local law by the licensee.

(c) In addition to any other penalty or remedy, the Department shall report any person or entity whose dealer license is revoked or suspended or who is subject to other disciplinary action under this Act to the Bureau of Alcohol, Tobacco, Firearms and Explosives within the U.S. Department of Justice, the Department of State Police, and to the local sheriff or chief of police.

Section 100. Enforcement; rulemaking.

(a) This Act must be enforced by the Department, and may be enforced, for the purpose of determining compliance with this Act, by any municipality in which the licensee is located or, if the licensee is not located in a municipality, by the county in which the licensee is located.

(b) The Department shall adopt rules necessary for the implementation and administration of this Act, in consultation with the Department of State Police. The provisions of the Illinois Administrative Procedure Act are hereby expressly adopted and shall apply to all administrative rules and procedures of the Department under this Act, except that the provision of paragraph (d) of Section 10-65 of the Illinois Administrative Procedure Act, which provides that at hearings the licensee or person holding a license has the right to show compliance with all lawful requirements for retention or continuation of the license, is specifically excluded. For the purpose of this Act, the notice required under Section 10-25 of the Illinois Administrative Procedure Act is deemed sufficient when mailed to the last known address of record of a party.

Section 1005. The Firearm Owners Identification Card Act is amended by changing Section 13.1 as follows:

(430 ILCS 65/13.1) (from Ch. 38, par. 83-13.1)

Sec. 13.1. Preemption.

(a) Except as otherwise provided in the Firearm Concealed Carry Act and subsections (b) and (c) of this Section, the provisions of any ordinance enacted by any municipality which requires registration or imposes greater restrictions or limitations on the acquisition, possession and transfer of firearms than are imposed by this Act, are not invalidated or affected by this Act.

(b) Notwithstanding subsection (a) of this Section, the regulation, licensing, possession, and registration of handguns and ammunition for a handgun, and the transportation of any firearm and ammunition by a holder of a valid Firearm Owner's Identification Card issued by the Department of State Police under this Act are exclusive powers and functions of this State. Any ordinance or regulation, or portion of that ordinance or regulation, enacted on or before the effective date of this amendatory Act of the 98th General Assembly that purports to impose regulations or restrictions on a holder of a valid Firearm Owner's Identification Card issued by the Department of State Police under this Act in a manner that is inconsistent with this Act, on the effective date of this amendatory Act of the 98th General Assembly, shall be invalid in its application to a holder of a valid Firearm Owner's Identification Card issued by the Department of State Police under this Act.

(c) Notwithstanding subsection (a) of this Section, the regulation of the possession or ownership of assault weapons are exclusive powers and functions of this State. Any ordinance or regulation, or portion of that ordinance or regulation, that purports to regulate the possession or ownership of assault weapons in a manner that is inconsistent with this Act, shall be invalid unless the ordinance or regulation is enacted on, before, or within 10 days after the effective date of this amendatory Act of the 98th General Assembly. Any ordinance or regulation described in this subsection (c) enacted more than 10 days after the effective date of this amendatory Act of the 98th General Assembly is invalid. An ordinance enacted on, before, or within 10 days after the effective date of this amendatory Act of the 98th General Assembly may be amended. The enactment or amendment of ordinances under this subsection (c) are subject to the submission requirements of Section 13.3. For the purposes of this subsection, "assault weapons" means firearms designated by either make or model or by a test or list of cosmetic features that cumulatively would place the firearm into a definition of "assault weapon" under the ordinance.

(c-5) Notwithstanding the provisions of this Section, a dealer of firearms or ammunition is subject to the provisions of subparagraph (K) of paragraph (2) of subsection (a) of Section 20 of the Gun Dealer and Ammunition Seller Act.

(d) For the purposes of this Section, "handgun" has the meaning ascribed to it in Section 5 of the Firearm Concealed Carry Act.

(e) This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 98-63, eff. 7-9-13.)

Section 1010. The Firearm Concealed Carry Act is amended by changing Section 90 as follows:

(430 ILCS 66/90)

Sec. 90. Preemption. Except as otherwise provided in subparagraph (K) of paragraph (2) of subsection (a) of Section 20 of the Gun Dealer and Ammunition Seller Act, the The regulation, licensing, possession, registration, and transportation of handguns and ammunition for handguns by licensees are exclusive powers and functions of the State. Any ordinance or regulation, or portion thereof, enacted on or before the effective date of this Act that purports to impose regulations or restrictions on licensees or handguns and ammunition for handguns in a manner inconsistent with this Act shall be invalid in its application to licensees under this Act on the effective date of this Act. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

(Source: P.A. 98-63, eff. 7-9-13.)