SB1868 99TH GENERAL ASSEMBLY

LRB099 09567 JLK 29776 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1868

Introduced 2/20/2015, by Sen. Ira I. Silverstein

SYNOPSIS AS INTRODUCED:

New Act

Creates the Firearm Dealer Licensing Act. Provides for the regulation of firearm dealers through licensure by the Department of Financial and Professional Regulation. Provides that no person may sell or otherwise transfer, expose for sale or transfer, or have in his or her possession with the intent to sell or transfer any firearm without being licensed under the Act. Provides, however, that the prohibition does not apply to a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or as a hobby, or who sells all or part of his or her personal collection of firearms. Sets forth provisions concerning application, fees, duration of licensure, license retention requirements, submissions to the Department, penalties, revocation, and suspension. Grants rulemaking authority to the Department and provides that for the purpose of determining compliance with the Act, the Act may be enforced by any municipality in which a licensee is located or, if a licensee is not located in a municipality, by the county in which a licensee is located.

A BILL FOR

AN ACT concerning regulation.

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 Firearm Dealer Licensing Act.

Section 5. Definitions. In this Act:

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

"Firearm dealer" means any person who is:

(1) engaged in the business of selling firearms at wholesale or retail;

(2) engaged in the business of repairing firearms or making or fitting special barrels, stocks, or trigger mechanisms to firearms; or

(3) a pawnbroker whose business or occupation includes the taking or receiving, by way of pledge or pawn, of any firearm as security for the payment or repayment of money.

"Licensed dealer" means any firearms dealer who is licensed under both this Act and Section 923 of the federal Gun Control Act of 1968 (18 U.S.C. 923).

"Person" means an individual, firm, association, society, partnership, limited liability company, corporation, or other entity.

"Engaged in the business" means the devotion of time, attention, and labor to engaging in the activity as a regular course of trade or business with the principal objective of livelihood and profit. "Engaged in the business" does not include the making of occasional repairs of firearms, or the occasional fitting of special barrels, stocks, or trigger mechanisms to firearms.

"Firearm" has the meaning given to that term in the Firearm Owners Identification Card Act.

"Transfer" means the actual or attempted transfer of a firearm or firearm ammunition, with or without consideration. "Transfer" does not include the lease of a firearm, or the provision of ammunition specifically for that firearm, if the firearm and the ammunition are to be used on the lessor's premises, and does not include any transfer of possession when the transferor maintains supervision and control over the firearm or ammunition.

"With the principal objective of livelihood and profit" means that the intent underlying the sale or disposition is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such as improving or liquidating a personal firearms collection; however, proof of profit shall not be required as to a person who engages in the regular and repetitive purchase and disposition of firearms for criminal purposes or terrorism.

Section 10. Unlicensed dealing; exemption.

(a) No person may sell or otherwise transfer, expose for sale or transfer, or have in his or her possession with the intent to sell or transfer any firearm without being licensed under this Act.

(b) This Section does not apply to a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or as a hobby, or who sells all or part of his or her personal collection of firearms.

Section 15. License application; fees; penalty.

(a) The Department may grant a firearm dealer license to an applicant who satisfies the following requirements:

(1) he or she is at least 21 years of age;

(2) he or she possesses a valid Firearm Owner's Identification Card; and

(3) he or she submits to a background check conducted by the Department that includes the initiation and completion of an automated search of its criminal history record information files and those of the Federal Bureau of Investigation, including the National Instant Criminal Background Check System, and of the files of the Department of Human Services relating to mental health and developmental disabilities to obtain any felony conviction or patient hospitalization information that would disqualify a person from obtaining licensure under this Act.

(b) An application for a firearm dealer license must be made on forms prescribed by the Department. The application must be verified by the applicant under oath and must be accompanied by the required fee.

(c) The applicant must submit to the Department a license fee of $300, payable at the time of application, and an additional $300 payable every 3 years thereafter for so long as the license is in effect.

(d) The applicant must submit to fingerprinting in accordance with rules adopted by the Department and must pay a fingerprint processing fee in the amount set by the Department by rule.

(e) A person who knowingly makes a false statement or knowingly conceals a material fact or uses false information or identification in any application for a license under this Act commits a Class A misdemeanor.

Section 20. Duration of licensure. A license granted under this Act remains in effect until it is revoked, suspended, or otherwise withdrawn by the Department or until it is surrendered by the licensee.

Section 25. License retention requirements. A license granted under this Act is subject to all of the following requirements:

(1) A licensed dealer may only transact business under this Act at an address that has a zoning classification that permits the operations of a retail establishment.

(2) A licensed dealer may not transact business in any place other than the premises specified on his or her license, except that a licensed dealer may display, sell, or transfer firearms at a gun show open to the general public or at any regular meeting of an incorporated collectors club in accordance with this Act and federal law.

(3) A licensed dealer may not violate any provision of any federal or State law pertaining to the possession, use, sale, or delivery of firearms.

(4) A licensed dealer must strictly adhere to the provisions of all applicable federal and State laws and local ordinances and local business license requirements.

(5) A separate license must be obtained for each separate place of business. Before a licensed dealer moves his or her place of business, he or she must promptly apply to the Department for an amended license.

(6) The license, or a copy of the license certified by the Department, must be conspicuously displayed at the business premises.

(7) Every firearm must be unloaded when delivered.

(8) A licensee must obtain a certificate of registration issued under the Retailers' Occupation Tax Act.

(9) The licensee must take reasonable precautions to ensure that all firearms that the licensee sells will not be used illegally. These precautions include, but are not limited to, the following:

(A) the refusal to sell a firearm to a person the licensee knows or has reason to know is purchasing the firearm on behalf of another person who could not legally purchase the firearm;

(B) the refusal to sell a firearm to a person who has provided a home address in a municipality or county in which possession of that type of firearm is illegal, unless the transferee presents reasonably satisfactory evidence that the firearm will not be used or possessed unlawfully in that municipality or county; and

(C) the refusal to sell a firearm to a person who has provided a home address in a municipality or county that requires registration of the firearm, unless the purchaser presents satisfactory evidence of compliance with the registration requirement.

(10) A licensee must make his or her records relating to the sale of firearms available to any officer or employee of the Department or of any unit of local government in this State whenever the officer or employee is authorized to enforce laws or ordinances pertaining to firearms, provided that no officer or employee may conduct any search or seizure other than an inspection of a licensee's records relating to firearms sales without a warrant and that nothing in this Section shall authorize any search or seizure forbidden by the United States Constitution or the Illinois Constitution.

Section 30. Submission to Department.

(a) A licensed dealer must, within 24 hours after making a sale or transfer of a firearm to a person who is not licensed as a firearm dealer, submit a report concerning that sale to the Department. The report must contain the following information:

(1) the date of the sale or transfer;

(2) the identity and address of the dealer;

(3) the name, address, age, and occupation of the transferee;

(4) the price of the firearm; and

(5) the type, description, and number of the firearm.

(b) All records of the reports submitted under this Section must be maintained by the Department on a computer database capable of allowing the retrieval of information for each dealer and each transferee. The computer database must also contain a listing of each county or municipality that prohibits one or more types of firearm, and the type or types of firearms that are prohibited in that county or municipality. Information in the database must be made available to any law enforcement agency responsible for the enforcement of any federal, State, or local law or ordinance relating to firearms, and to any licensed dealer who requests information relating to a person who is seeking to purchase one or more firearms from that dealer. Except as specifically provided in this Section, information in the database is deemed the confidential record of the Department and is not subject to disclosure under any other law.

(c) Any licensee who is required to keep a record of transfer under subsection (b) of Section 3 of the Firearm Owners Identification Card Act must report any transfer of a firearm that occurred within the 24-month period immediately preceding the effective date of this Act to the Department no later than 30 days after the effective date of this Act. The report must contain that information required by subsection (b) of Section 3 of the Firearm Owners Identification Card Act. The Department must include this report in the computer database required to be maintained under this Section.

Section 35. Penalty. Any person who sells, or who possesses with intent to sell, trade, or transfer, any firearm without being licensed under this Act is guilty of a Class 4 felony.

Section 40. 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.

Section 45. Revocation; suspension. The Department, after due notice to the licensee and reasonable opportunity for the licensee to be heard, may revoke a license or may suspend a license for a period of time that the Department may deem proper upon satisfactory proof that the licensee has violated or permitted a violation of any requirement of this Act or is no longer eligible to obtain a license under this Act. A person whose license has been revoked by the Department is disqualified from receiving a license under this Act for 10 years after the revocation. Any person who has substantially participated in the operation or management of a licensee that has had a license revoked may not be employed by or participate in the business of any other licensee for 10 years after the revocation. Proceedings for revocation or suspension under this Section may be initiated by the Department or by any municipality or county.