S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   361

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  M.  of  A. PAULIN, RAMOS, LIFTON, ENGLEBRIGHT, KAVANAGH,
  ROSENTHAL, WRIGHT, SCHIMEL, PHEFFER, LANCMAN -- Multi-Sponsored by  --
  M.  of  A. BING, BOYLAND, GOTTFRIED, HOOPER, MAGNARELLI, TOWNS -- read
  once and referred  to  the  Committee  on  Economic  Development,  Job
  Creation, Commerce and Industry

AN  ACT to amend the general business law and the penal law, in relation
  to preventing the sale of firearms, rifles, and shotguns to criminals

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and declaration. The legislature here-
by finds and declares as follows:
  1.  Firearms, rifles and shotguns are used to kill nearly 30,000 indi-
viduals in the United States every year, including 1,000 individuals  in
New York state alone. Additionally, there are 100,000 non-fatal injuries
across  the  country.  The  federal  government has largely ignored this
public health crisis and has left it up to state and  local  governments
to protect its citizens. Firearm violence also costs millions of dollars
and  causes  incalculable  emotional  damage,  devastating  families and
communities throughout the country.  Therefore, the state  of  New  York
has  a  strong interest in reducing violence and crimes that involve the
use of firearms and the illegal trafficking of  firearms.  Illegal  guns
obtained  throughout  the  state end up in the hands of criminals, youth
and violent individuals who use them to threaten, maim and kill.
  2. There is a thriving underground market for illegal firearms, large-
ly driven by demand from drug gangs and other criminals. A highly  effi-
cient  and  continuous  business  practice  exists in which firearms are
moved from legal manufacture and sale to prohibited  purchasers,  making
them  illegal  firearms. In 2001, approximately 12,000 illegal firearms,
rifles and shotguns were seized in New York state.   From November  2000
to  April  2002,  2700  crime guns were entered into the state crime gun

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00321-01-1

A. 361                              2

database.  In 2008, according to a review by the federal bureau of alco-
hol, 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, 9,558
firearms were submitted to be traced, 2,659 of  which  were  long  guns.
Outside  New  York  City, long guns are sold without a permit. Forty-six
percent of the firearms recovered in 2008 were found  outside  New  York
City.    A significant portion of guns involved in crimes upstate origi-
nate within the state. In fact, youth data reveals that in 2000, 40%  of
the  crime  guns in Buffalo originated within a five-mile radius of that
city.
  3. A substantial portion of illegal firearms are diverted to the ille-
gal 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  investi-
gation of gun trafficking from July 1996 to December 1998 and found that
almost 26,000 trafficked firearms were associated with investigations in
which  there was a straw purchaser. Almost 50% of all trafficking inves-
tigations involved straw purchasers, with  an  average  of  37  firearms
trafficked per investigation.  Another issue, according to a 2008 report
by  Mayors  Against Illegal Guns, Inside Straw Purchasing: How Criminals
Get Guns Illegally, is that many traffickers return to  the  same  store
again  and  again  once they have identified it as one in which they can
make straw purchases easily.  Although most gun  dealers  operate  their
businesses  legally and responsibly, some gun dealers who are corrupt or
maintain shoddy recordkeeping practices flood the streets  with  illegal
weapons  as  a  result of their unrestricted access to new gun inventory
and the unwillingness of gun manufacturers to terminate their supply  to
these rogue dealers. Current federal and state regulation has not curbed
the  business practice of illegal gun dealers. According to a 2004 study
by Americans for Gun Safety, of the 120 worst gun dealers in  the  coun-
try,  namely  those  dealers with an average of 500 crime guns traced to
them, 96 were still in operation.
  4. 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 under-
taken 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 2008 report by Mayors Against Illegal
Guns indicated that several states  which  allow  state  authorities  to
supplement  the federal ATF inspections 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.
  5.  Current  New  York state laws governing firearm dealers are inade-
quate to prevent the diversion of firearms to the  illegal  marketplace.
Additional  protections that are needed include, but are not limited to,
better gun dealer internal compliance procedures, programs to  eliminate
straw  purchases, increased liability insurance, improved security meas-
ures, reducing youth access, mandatory training for gun  dealer  employ-
ees, and improved recordkeeping requirements. The additional protections

A. 361                              3

set forth in this act will greatly enhance the state's efforts to reduce
criminal activity in the state.
  S  2. Article 40 and sections 900 and 901 of the general business law,
as renumbered by chapter 407 of the laws of 1973, are renumbered article
50 and sections 1001 and 1002 and a new article 40 is added to  read  as
follows:
                                ARTICLE 40
                    PREVENTING THE SALE OF FIREARMS,
                    RIFLES, AND SHOTGUNS TO CRIMINALS
SECTION 900. DEFINITIONS.
        901. REASONABLE MEASURES TO PREVENT SALES AND
                TRANSFERS TO CRIMINALS.
        902. SECURITY.
        903. ACCESS TO FIREARMS, RIFLES, AND SHOTGUNS.
        904. LOCATION OF FIREARM, RIFLE, AND SHOTGUN SALES.
        905. EMPLOYEE TRAINING.
        906. RETAIL SALES OF FIREARMS, RIFLES, AND SHOTGUNS.
        907. MAINTENANCE OF RECORDS.
        908. COOPERATION WITH LAW ENFORCEMENT.
        909. INTERNAL COMPLIANCE AND CERTIFICATION.
        910. RULES AND REGULATIONS.
        911. VIOLATIONS.
  S 900. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1.  "DEALER"  MEANS  ANY  PERSON,  FIRM,  PARTNERSHIP, CORPORATION, OR
COMPANY WHO ENGAGES IN THE BUSINESS OF PURCHASING, SELLING, KEEPING  FOR
SALE,  LENDING,  LEASING,  OR  IN  ANY MANNER DISPOSING OF, ANY FIREARM,
RIFLE, OR SHOTGUN.
  2. "DISPOSE OF" MEANS TO DISPOSE OF, GIVE,  GIVE  AWAY,  LEASE,  LEND,
KEEP  FOR  SALE,  OFFER,  OFFER  FOR  SALE, SELL, TRANSFER, OR OTHERWISE
DISPOSE OF.
  3. "FIREARM" HAS THE SAME MEANING AS THAT TERM IS DEFINED IN  SUBDIVI-
SION THREE OF SECTION 265.00 OF THE PENAL LAW.
  4.  "FIREARM  EXHIBITOR"  MEANS  ANY PERSON, FIRM, PARTNERSHIP, CORPO-
RATION, OR COMPANY THAT EXHIBITS, SELLS, OFFERS FOR SALE, TRANSFERS,  OR
EXCHANGES FIREARMS, RIFLES, OR SHOTGUNS AT A GUN SHOW.
  5.  "GUN SHOW" MEANS AN EVENT SPONSORED, WHETHER FOR PROFIT OR NOT, BY
AN INDIVIDUAL, NATIONAL, STATE, OR LOCAL ORGANIZATION,  ASSOCIATION,  OR
OTHER  ENTITY  DEVOTED TO THE COLLECTION, COMPETITIVE USE, SPORTING USE,
OR ANY OTHER LEGAL USE OF FIREARMS, RIFLES, OR SHOTGUNS, OR AN EVENT  AT
WHICH:  (A) TWENTY PERCENT OR MORE OF THE TOTAL NUMBER OF EXHIBITORS ARE
FIREARM EXHIBITORS; (B) TEN OR MORE FIREARM EXHIBITORS  ARE  PARTICIPAT-
ING; (C) A TOTAL OF TWENTY-FIVE OR MORE PISTOLS OR REVOLVERS ARE OFFERED
FOR  SALE OR TRANSFER; OR (D) A TOTAL OF FIFTY OR MORE FIREARMS, RIFLES,
OR SHOTGUNS ARE OFFERED FOR SALE OR TRANSFER. THE TERM "GUN SHOW"  SHALL
INCLUDE  ANY BUILDING, STRUCTURE, OR FACILITY WHERE FIREARMS, RIFLES, OR
SHOTGUNS ARE OFFERED FOR SALE  OR  TRANSFER  AND  ANY  GROUNDS  USED  IN
CONNECTION WITH THE EVENT.
  6.  "RETAIL DEALER" MEANS ANY DEALER ENGAGED IN THE RETAIL BUSINESS OF
SELLING FIREARMS, RIFLES, OR SHOTGUNS.
  7. "RIFLE" HAS THE SAME MEANING AS THAT TERM IS DEFINED IN SUBDIVISION
ELEVEN OF SECTION 265.00 OF THE PENAL LAW.
  8. "SHOTGUN" HAS THE SAME MEANING AS THAT TERM IS DEFINED IN  SUBDIVI-
SION TWELVE OF SECTION 265.00 OF THE PENAL LAW.
  9.  "STRAW  PURCHASE" MEANS THE PURCHASE, OR ATTEMPT TO PURCHASE, BY A
PERSON OF A FIREARM, RIFLE, OR SHOTGUN FOR, ON BEHALF OF, OR FOR THE USE
OF ANOTHER PERSON, KNOWING THAT IT WOULD  BE  UNLAWFUL  FOR  SUCH  OTHER

A. 361                              4

PERSON TO POSSESS SUCH FIREARM, RIFLE, OR SHOTGUN, OR AN ATTEMPT TO MAKE
SUCH A PURCHASE.
  10.  "STRAW  PURCHASER"  MEANS  A PERSON WHO, KNOWING THAT IT WOULD BE
UNLAWFUL FOR ANOTHER PERSON TO POSSESS A  FIREARM,  RIFLE,  OR  SHOTGUN,
PURCHASES  OR  ATTEMPTS TO PURCHASE A FIREARM, RIFLE, OR SHOTGUN FOR, ON
BEHALF OF, OR FOR THE USE OF SUCH OTHER PERSON.
  11. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF STATE POLICE.
  S 901. REASONABLE MEASURES TO PREVENT SALES AND  TRANSFERS  TO  CRIMI-
NALS.  EVERY DEALER SHALL ADOPT REASONABLE MEASURES TO PREVENT FIREARMS,
RIFLES,  AND  SHOTGUNS  FROM  BEING  DIVERTED  FROM  THE LEGAL STREAM OF
COMMERCE, INTENTIONALLY OR  OTHERWISE,  FOR  LATER  SALE,  TRANSFER,  OR
DISPOSAL TO INDIVIDUALS NOT LEGALLY ENTITLED TO PURCHASE OR POSSESS SUCH
WEAPONS.  SUCH  MEASURES  SHALL  INCLUDE,  BUT  NEED  NOT BE LIMITED TO,
PROGRAMS TO ELIMINATE SALES TO STRAW PURCHASERS AND TO OTHERWISE  THWART
ILLEGAL  GUN  TRAFFICKING.  THE  SUPERINTENDENT  SHALL  DEVELOP PROGRAMS
DESIGNED TO ELIMINATE SALES TO STRAW PURCHASERS AND TO OTHERWISE  THWART
ILLEGAL GUN TRAFFICKING. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS
ARTICLE,  THE  SUPERINTENDENT  SHALL  SUBMIT A REPORT TO THE LEGISLATURE
DETAILING SUCH PROGRAMS, INCLUDING ESTABLISHING MINIMUM REQUIREMENTS FOR
SUCH PROGRAMS.
  S 902. SECURITY. EVERY DEALER SHALL  IMPLEMENT  A  SECURITY  PLAN  FOR
SECURING  FIREARMS,  RIFLES AND SHOTGUNS, INCLUDING FIREARMS, RIFLES AND
SHOTGUNS IN SHIPMENT. THE PLAN  MUST  SATISFY  AT  LEAST  THE  FOLLOWING
REQUIREMENTS:
  1.  DISPLAY  CASES SHALL BE LOCKED AT ALL TIMES EXCEPT WHEN REMOVING A
SINGLE FIREARM, RIFLE OR SHOTGUN TO SHOW A CUSTOMER, AND CUSTOMERS SHALL
HANDLE FIREARMS, RIFLES OR SHOTGUNS ONLY UNDER THE DIRECT SUPERVISION OF
AN EMPLOYEE;
  2. ALL FIREARMS, RIFLES AND SHOTGUNS  SHALL  BE  SECURED,  OTHER  THAN
DURING  BUSINESS  HOURS,  IN  A  LOCKED  FIREPROOF  SAFE OR VAULT IN THE
LICENSEE'S BUSINESS PREMISES OR IN A SIMILAR SECURED  AND  LOCKED  AREA;
AND
  3. AMMUNITION SHALL BE STORED SEPARATELY FROM THE FIREARMS, RIFLES AND
SHOTGUNS AND OUT OF REACH OF THE CUSTOMERS.
  S  903.  ACCESS TO FIREARMS, RIFLES, AND SHOTGUNS. EVERY RETAIL DEALER
SHALL EXCLUDE ALL  PERSONS  UNDER  EIGHTEEN  YEARS  OF  AGE  FROM  THOSE
PORTIONS OF ITS PREMISES WHERE FIREARMS, RIFLES, SHOTGUNS, OR AMMUNITION
ARE  STOCKED  OR  SOLD, UNLESS SUCH PERSON IS ACCOMPANIED BY A PARENT OR
GUARDIAN.
  S 904. LOCATION OF FIREARM, RIFLE, AND  SHOTGUN  SALES.  EVERY  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.
  S  905.  EMPLOYEE TRAINING. EVERY RETAIL DEALER SHALL PROVIDE TRAINING
TO ALL EMPLOYEES AND OTHER PERSONNEL  ENGAGED  IN  THE  RETAIL  SALE  OF
FIREARMS, RIFLES, AND SHOTGUNS RELATING TO:
  1.  THE LAW GOVERNING FIREARM, RIFLE, AND SHOTGUN TRANSFERS BY FEDERAL
FIREARMS LICENSEES AND INDIVIDUALS;
  2. HOW TO RECOGNIZE STRAW PURCHASES AND  OTHER  ATTEMPTS  TO  PURCHASE
FIREARMS, RIFLES, OR SHOTGUNS ILLEGALLY;
  3.  HOW  TO  TEACH  CONSUMERS  RULES  OF GUN SAFETY, INCLUDING BUT NOT
LIMITED TO THE SAFE HANDLING AND STORAGE OF FIREARMS, RIFLES, AND  SHOT-
GUNS; AND
  4.  HOW  TO COMPLY WITH PROVISIONS OF SECTION NINE HUNDRED SIX OF THIS
ARTICLE.

A. 361                              5

  NO EMPLOYEE OR AGENT OF ANY RETAIL DEALER  SHALL  PARTICIPATE  IN  THE
SALE  OR DISPOSITION OF FIREARMS, RIFLES, OR SHOTGUNS UNLESS SUCH PERSON
IS AT LEAST TWENTY-ONE YEARS OF AGE AND HAS FIRST RECEIVED THE  TRAINING
REQUIRED  BY  THIS  SECTION.  THE  SUPERINTENDENT SHALL PROMULGATE REGU-
LATIONS  SETTING  FORTH  MINIMUM  REQUIREMENTS  FOR  THE  MAINTENANCE OF
RECORDS OF SUCH TRAINING.
  S 906. RETAIL SALES OF FIREARMS, RIFLES, AND SHOTGUNS.  1.  NO  RETAIL
DEALER  SHALL  SELL,  DELIVER, LEASE, OR TRANSFER ANY FIREARM, RIFLE, OR
SHOTGUN TO ANY RETAIL  CUSTOMER  UNLESS  SUCH  RETAIL  DEALER  HAS:  (A)
CONDUCTED  THE  REQUIRED  NATIONAL INSTANT CRIMINAL BACKGROUND CHECK AND
COMPLIED WITH THE PROVISIONS OF 18 U.S.C. 922(T); (B) SHOWN  THE  TRANS-
FEREE  HOW  TO  LOAD  AND  UNLOAD THE FIREARM, RIFLE, OR SHOTGUN, HOW TO
ENGAGE AND DISENGAGE ALL SAFETY DEVICES, AND HOW  TO  SAFELY  STORE  THE
WEAPON;  (C)  PROVIDED  THE  TRANSFEREE  WITH  A  GUN  LOCKING DEVICE AS
REQUIRED BY SECTION THREE HUNDRED NINETY-SIX-EE  OF  THIS  CHAPTER;  (D)
PROVIDED  THE  TRANSFEREE WITH A COPY OF THE SAFE STORAGE WARNING NOTICE
SET FORTH IN SUBDIVISION TWO OF THIS SECTION AND A COPY OF  THE  FEDERAL
BUREAU  OF  ALCOHOL,  TOBACCO,  FIREARMS  AND  EXPLOSIVES DISPOSITION OF
FIREARMS NOTICE; (E) OBTAINED  THE  TRANSFEREE'S  SIGNATURE  ON  A  FORM
PROMULGATED  BY  THE  SUPERINTENDENT  CERTIFYING THAT THE TRANSFEREE HAS
RECEIVED THE INSTRUCTION AND NOTICE REQUIRED BY THIS  SECTION;  AND  (F)
PROVIDED  THE TRANSFEREE WITH A WRITTEN RECORD OF THE MAKE, MODEL, CALI-
BER OR GAUGE, AND SERIAL NUMBER  OF  EACH  FIREARM,  RIFLE,  OR  SHOTGUN
TRANSFERRED  TO  ENABLE THE TRANSFEREE TO ACCURATELY DESCRIBE THE WEAPON
TO LAW ENFORCEMENT IN THE EVENT THAT IT IS SUBSEQUENTLY LOST OR STOLEN.
  2. NO RETAIL DEALER  SHALL  SELL,  DELIVER,  LEASE,  OR  TRANSFER  ANY
FIREARM,  RIFLE,  OR  SHOTGUN  TO ANY PERSON UNLESS AT THE TIME OF SALE,
DELIVERY, LEASE, OR TRANSFER SUCH FIREARM, RIFLE, OR SHOTGUN IS ACCOMPA-
NIED BY THE FOLLOWING WARNING, WHICH SHALL  APPEAR  IN  CONSPICUOUS  AND
LEGIBLE  TYPE  IN CAPITAL LETTERS, AND WHICH SHALL BE PRINTED ON A LABEL
AFFIXED TO SUCH FIREARM, RIFLE, OR SHOTGUN AND PLACED IN  THE  CONTAINER
IN  WHICH  SUCH FIREARM, RIFLE, OR SHOTGUN IS SOLD, DELIVERED, LEASED OR
TRANSFERRED: "THE USE OF A LOCKING DEVICE OR SAFETY  LOCK  IS  ONLY  ONE
ASPECT  OF  RESPONSIBLE  FIREARM  STORAGE. FIREARMS SHOULD BE STORED AND
LOCKED IN A LOCATION THAT IS BOTH SEPARATE  FROM  THEIR  AMMUNITION  AND
INACCESSIBLE  TO  CHILDREN  AND  OTHER  UNAUTHORIZED  PERSONS. MORE THAN
200,000 FIREARMS LIKE THIS ONE ARE STOLEN FROM THEIR OWNERS  EVERY  YEAR
IN  THE  UNITED  STATES.  IN  ADDITION,  THERE  ARE MORE THAN A THOUSAND
SUICIDES EACH YEAR BY YOUNGER CHILDREN AND TEENAGERS WHO GET  ACCESS  TO
FIREARMS. HUNDREDS MORE DIE FROM ACCIDENTAL DISCHARGE. IT IS LIKELY THAT
MANY  MORE CHILDREN SUSTAIN SERIOUS WOUNDS, OR INFLICT SUCH WOUNDS ACCI-
DENTALLY ON OTHERS. IN ORDER TO LIMIT THE CHANCE OF SUCH MISUSE,  IT  IS
IMPERATIVE  THAT  YOU KEEP THIS WEAPON LOCKED IN A SECURE PLACE AND TAKE
OTHER STEPS NECESSARY TO LIMIT THE POSSIBILITY  OF  THEFT  OR  ACCIDENT.
FAILURE TO TAKE REASONABLE PREVENTIVE STEPS MAY RESULT IN INNOCENT LIVES
BEING LOST, AND IN SOME CIRCUMSTANCES MAY RESULT IN YOUR LIABILITY."
  S  907. MAINTENANCE OF RECORDS. EVERY DEALER SHALL ESTABLISH AND MAIN-
TAIN SUCH PURCHASE, SALE, INVENTORY, AND OTHER RECORDS AT  THE  DEALER'S
PLACE OF BUSINESS IN SUCH FORM AND FOR SUCH PERIOD AS THE SUPERINTENDENT
SHALL REQUIRE, AND SHALL AT A MINIMUM INCLUDE THE FOLLOWING:
  1.  EVERY  DEALER  SHALL RECORD THE MAKE, MODEL, CALIBER OR GAUGE, AND
SERIAL NUMBER OF ALL FIREARMS, RIFLES, AND SHOTGUNS THAT ARE ACQUIRED OR
DISPOSED OF NOT LATER THAN ONE BUSINESS DAY AFTER THEIR  ACQUISITION  OR
DISPOSITION.  MONTHLY  BACKUPS OF THESE RECORDS SHALL BE MAINTAINED IN A
SECURE CONTAINER DESIGNED TO PREVENT   LOSS BY  FIRE,  THEFT,  OR  OTHER
MISHAP;

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  2. ALL FIREARMS, RIFLES, AND SHOTGUNS ACQUIRED BUT NOT YET DISPOSED OF
MUST  BE  ACCOUNTED  FOR  THROUGH  AN INVENTORY CHECK PREPARED ONCE EACH
MONTH AND MAINTAINED IN A SECURE LOCATION;
  3. FIREARM, RIFLE, AND SHOTGUN SALES INFORMATION, INCLUDING THE SERIAL
NUMBERS OF FIREARMS, RIFLES, AND SHOTGUNS SOLD, DATES OF SALE, AND IDEN-
TITY OF PURCHASERS, SHALL BE MAINTAINED AND MADE AVAILABLE TO GOVERNMENT
LAW  ENFORCEMENT  AGENCIES  AND TO THE MANUFACTURER OF THE WEAPON OR ITS
DESIGNEE; AND
  4. EVERY DEALER SHALL MAINTAIN RECORDS OF CRIMINAL FIREARM, RIFLE, AND
SHOTGUN TRACES INITIATED BY THE  FEDERAL  BUREAU  OF  ALCOHOL,  TOBACCO,
FIREARMS  AND  EXPLOSIVES ("ATF"). ALL ATF FORM 4473 TRANSACTION RECORDS
SHALL BE RETAINED ON THE DEALER'S BUSINESS PREMISES IN A SECURE CONTAIN-
ER DESIGNED TO PREVENT LOSS BY FIRE, THEFT, OR OTHER MISHAP.
  S 908. COOPERATION WITH LAW ENFORCEMENT. EVERY DEALER SHALL:
  1. PROVIDE GOVERNMENT LAW ENFORCEMENT AGENCIES WITH FULL ACCESS TO ANY
DOCUMENTS RELATED TO THE ACQUISITION  AND  DISPOSITION  OF  FIREARMS  OR
EMPLOYEE TRAINING DEEMED NECESSARY BY SUCH AGENCY;
  2.  PARTICIPATE  IN  AND COMPLY WITH ALL MONITORING OF FIREARM, RIFLE,
AND SHOTGUN DISTRIBUTION BY MANUFACTURERS OR GOVERNMENT LAW  ENFORCEMENT
AGENCIES;
  3.  REPORT ALL ATF TRACE REQUESTS BY MAKE, MODEL, AND SERIAL NUMBER OF
FIREARM, DATE OF TRACE, AND DATE OF SALE  TO  THE  MANUFACTURER  OF  THE
FIREARM,  RIFLE,  OR  SHOTGUN ON A MONTHLY BASIS, UNLESS ATF DIRECTS THE
LICENSEE NOT TO REPORT CERTAIN TRACES, AND ALSO REPORT  SUCH  TRACES  TO
THE  SUPERINTENDENT  FOR USE IN CONJUNCTION WITH THE CRIMINAL GUN CLEAR-
INGHOUSE ESTABLISHED PURSUANT TO SECTION TWO HUNDRED THIRTY OF THE EXEC-
UTIVE LAW;
  4. ANALYZE ALL ATF TRACE REQUESTS TO  DETERMINE  WHETHER  THERE  IS  A
PATTERN  OF  FIREARMS, RIFLES, OR SHOTGUNS SOLD BY THE DEALER BEING USED
FOR CRIMINAL PURPOSES, AND, IF  SUCH  PATTERN  EXISTS,  TAKE  CORRECTIVE
ACTION AND REPORT SUCH FINDINGS AND SUCH CORRECTIVE ACTION TO THE SUPER-
INTENDENT; AND
  5. REPORT ANY FIREARM, RIFLE, OR SHOTGUN SALES THAT APPEAR TO BE STRAW
PURCHASES  OR  OTHERWISE CREATE A REASONABLE SUSPICION THAT THE FIREARM,
RIFLE, OR SHOTGUN MAY BE DIVERTED FROM THE LEGAL STREAM OF COMMERCE.
  S 909. INTERNAL COMPLIANCE AND CERTIFICATION. 1. EVERY DEALER SHALL:
  (A) IMPLEMENT AND MAINTAIN SUFFICIENT INTERNAL  COMPLIANCE  PROCEDURES
TO  ENSURE  COMPLIANCE  WITH  THE  REQUIREMENTS  OF THIS ARTICLE AND ALL
APPLICABLE FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS GOVERNING  THE
SALE, TRANSFER, AND DISPOSAL OF FIREARMS, RIFLES, AND SHOTGUNS; AND
  (B)  ANNUALLY  CERTIFY  TO  THE  SUPERINTENDENT  THAT  SUCH DEALER HAS
COMPLIED WITH ALL OF THE REQUIREMENTS OF THIS ARTICLE.  THE  SUPERINTEN-
DENT  SHALL  BY REGULATION DETERMINE THE FORM AND CONTENT OF SUCH ANNUAL
CERTIFICATION.
  2. THE SUPERINTENDENT OF STATE  POLICE  SHALL  PROMULGATE  REGULATIONS
ESTABLISHING  PERIODIC  INSPECTIONS,  DURING  REGULAR AND USUAL BUSINESS
HOURS, BY THE DIVISION OF STATE POLICE OF THE PREMISES OF  EVERY  DEALER
TO  DETERMINE  COMPLIANCE  BY  SUCH DEALER WITH THE REQUIREMENTS OF THIS
ARTICLE. EVERY DEALER SHALL PROVIDE THE DIVISION OF  STATE  POLICE  WITH
FULL ACCESS TO SUCH DEALER'S PREMISES FOR SUCH INSPECTIONS.
  S  910.  RULES AND REGULATIONS. THE SUPERINTENDENT MAY PROMULGATE SUCH
ADDITIONAL RULES AND REGULATIONS AS THE SUPERINTENDENT SHALL DEEM NECES-
SARY TO PREVENT FIREARMS, RIFLES, AND SHOTGUNS FROM BEING DIVERTED  FROM
THE LEGAL STREAM OF COMMERCE.
  S  911.  VIOLATIONS.  ANY  PERSON,  FIRM, OR CORPORATION WHO KNOWINGLY
VIOLATES ANY PROVISION OF THIS ARTICLE SHALL BE  GUILTY  OF  A  CLASS  A

A. 361                              7

MISDEMEANOR  PUNISHABLE  AS  PROVIDED FOR IN THE PENAL LAW, AND SHALL BE
GUILTY OF A CLASS E FELONY FOR A SECOND VIOLATION OCCURRING WITHIN  FIVE
YEARS  OF  A  PRIOR  CONVICTION FOR A VIOLATION OF ANY PROVISION OF THIS
ARTICLE.
  S  3.  Subdivision 1 of section 396-ee of the general business law, as
added by chapter 189 of the laws of 2000, is amended to read as follows:
  (1) No person, firm or corporation engaged in the retail  business  of
selling  rifles,  shotguns  or  firearms,  as  such terms are defined in
section 265.00 of the penal law, shall sell,  deliver  or  transfer  any
such  rifle,  shotgun or firearm to another person unless the transferee
is provided at the time of sale, delivery or transfer with a gun locking
device and a label containing the quoted language specified in  subdivi-
sion two of [this] section [is either] NINE HUNDRED SIX OF THIS CHAPTER,
WHICH  SHALL  APPEAR IN CONSPICUOUS AND LEGIBLE TYPE IN CAPITAL LETTERS,
AND SHALL BE affixed to such rifle, shotgun or firearm [or]  AND  placed
in the container in which such rifle, shotgun or firearm is sold, deliv-
ered  or  transferred.  For  the purposes of this section, the term "gun
locking device" shall mean an integrated design feature or an attachable
accessory that is resistant to tampering and is effective in  preventing
the discharge of such rifle, shotgun or firearm by a person who does not
have access to the key, combination or other mechanism used to disengage
the  device.  The  division of state police shall develop and promulgate
rules and regulations setting forth the specific devices or the  minimum
standards  and criteria therefor which constitute an effective gun lock-
ing device.
  S 4. Subdivision 1 of section 400.00 of the penal law, as  amended  by
chapter 189 of the laws of 2000, is amended to read as follows:
  1. Eligibility. No license shall be issued or renewed pursuant to this
section  except  by  the licensing officer, and then only after investi-
gation and finding that all statements in a  proper  application  for  a
license  are  true.  No license shall be issued or renewed except for an
applicant (a) twenty-one years of age or older, provided, however,  that
where  such  applicant  has  been  honorably  discharged from the United
States army, navy, marine corps,  air  force  or  coast  guard,  or  the
national  guard  of the state of New York, no such age restriction shall
apply; (b) of good moral character;  (c)  who  has  not  been  convicted
anywhere of a felony or a serious offense; (d) who has stated whether he
or  she  has  ever  suffered  any mental illness or been confined to any
hospital or institution, public or private, for mental illness; (e)  who
has  not had a license revoked or who is not under a suspension or inel-
igibility order issued pursuant to the provisions of section  530.14  of
the  criminal  procedure law or section eight hundred forty-two-a of the
family court act; (f) in the county of Westchester, who has successfully
completed a firearms safety course and test as evidenced  by  a  certif-
icate  of completion issued in his or her name and endorsed and affirmed
under the penalties of perjury by a duly authorized  instructor,  except
that:  (i)  persons  who are honorably discharged from the United States
army, navy, marine corps or coast guard, or of the national guard of the
state of New York, and produce evidence  of  official  qualification  in
firearms  during  the term of service are not required to have completed
those hours of a firearms safety course  pertaining  to  the  safe  use,
carrying,  possession,  maintenance  and  storage of a firearm; and (ii)
persons who were licensed to possess a pistol or revolver prior  to  the
effective  date  of  this paragraph are not required to have completed a
firearms safety course and test; and (g) concerning whom no  good  cause
exists  for  the  denial  of  the license. No person shall engage in the

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business of gunsmith or dealer in firearms unless licensed  pursuant  to
this  section,  AND  NO PERSON SHALL ENGAGE IN THE BUSINESS OF DEALER IN
FIREARMS UNLESS SUCH PERSON COMPLIES WITH  THE  PROVISIONS  OF  ARTICLES
THIRTY-NINE-DD  AND  FORTY  OF THE GENERAL BUSINESS LAW. An applicant to
engage in such business shall also be a citizen of  the  United  States,
more  than  twenty-one  years of age and maintain a place of business in
the city or county where the license is issued. For  such  business,  if
the applicant is a firm or partnership, each member thereof shall comply
with  all  of  the requirements set forth in this subdivision and if the
applicant is a corporation, each officer thereof shall so comply.
  S 5. Subdivisions 11 and 12 of section 400.00 of the penal law, subdi-
vision 11 as amended by chapter 210 of the laws of 1999 and  subdivision
12 as amended by chapter 449 of the laws of 1993, are amended to read as
follows:
  11.  License:  revocation and suspension. The conviction of a licensee
anywhere of a felony or serious offense shall operate as a revocation of
the license. A license may be revoked or suspended as  provided  for  in
section  530.14  of  the criminal procedure law or section eight hundred
forty-two-a of the family court act. Except for a license issued  pursu-
ant  to  section  400.01  of  this article, a license may be revoked and
cancelled at any time in the city of New York, and in  the  counties  of
Nassau  and Suffolk, by the licensing officer, and elsewhere than in the
city of New York by any judge or justice of a court of record; a license
issued pursuant to section 400.01 of this article  may  be  revoked  and
cancelled  at  any time by the licensing officer or any judge or justice
of a court of record.  A LICENSE TO ENGAGE IN THE BUSINESS OF DEALER MAY
BE REVOKED OR SUSPENDED FOR ANY VIOLATION OF THE PROVISIONS  OF  ARTICLE
THIRTY-NINE-DD OR FORTY OF THE GENERAL BUSINESS LAW. The official revok-
ing  a  license  shall  give  written notice thereof without unnecessary
delay to the executive department, division of state police, Albany, and
shall also notify immediately the duly constituted police authorities of
the locality.
  12. Records required of gunsmiths and dealers in  firearms.  [Any]  IN
ADDITION  TO  THE  REQUIREMENTS SET FORTH IN ARTICLES THIRTY-NINE-DD AND
FORTY OF THE GENERAL BUSINESS LAW, ANY person licensed  as  gunsmith  or
dealer  in firearms shall keep a record book approved as to form, except
in the city of New York, by the superintendent of state police.  In  the
record  book shall be entered at the time of every transaction involving
a firearm the date, name, age, occupation and residence  of  any  person
from  whom  a firearm is received or to whom a firearm is delivered, and
the calibre, make, model, manufacturer's name and serial number,  or  if
none,  any  other  distinguishing  number or identification mark on such
firearm. Before delivering a firearm to any person, the  licensee  shall
require  him  to  produce  either  a license valid under this section to
carry or possess the same, or proof of lawful  authority  as  an  exempt
person  pursuant  to section 265.20 OF THIS CHAPTER. In addition, before
delivering a firearm to a peace officer, the licensee shall verify  that
person's  status  as  a peace officer with the division of state police.
After completing the foregoing, the licensee shall remove and retain the
attached coupon and enter in the record book the date of  such  license,
number,  if  any,  and name of the licensing officer, in the case of the
holder of a license to carry or possess, or the shield or other  number,
if  any,  assignment  and  department, unit or agency, in the case of an
exempt person. The original transaction report shall be forwarded to the
division of state police within ten days of delivering a firearm to  any
person,  and  a duplicate copy shall be kept by the licensee. The record

A. 361                              9

book shall be maintained on the premises mentioned and described in  the
license  and shall be open at all reasonable hours for inspection by any
peace officer, acting pursuant to his special duties, or police officer.
In  the  event of cancellation or revocation of the license for gunsmith
or dealer in firearms, or discontinuance of business by a licensee, such
record book shall be immediately surrendered to the licensing officer in
the city of New York, and in the counties of  Nassau  and  Suffolk,  and
elsewhere  in  the  state to the executive department, division of state
police.
  S 6. Severability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction  to
be  invalid,  such  judgment  shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or part thereof directly  involved  in  the
controversy in which such judgment shall have been rendered.
  S  7.  This  act shall take 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 regulations as may be necessary and desirable
to effectuate the purposes of section two of this act.