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

                                   965

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Codes

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
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,

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

                                                           LBD00321-01-1

S. 965                              2

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
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

S. 965                              3

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
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,

S. 965                              4

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.
  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-

S. 965                              5

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;
  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;

S. 965                              6

  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
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

S. 965                              7

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
business of gunsmith or dealer in firearms unless licensed  pursuant  to
this  section,  AND  NO PERSON SHALL ENGAGE IN THE BUSINESS OF DEALER IN

S. 965                              8

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
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

S. 965                              9

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.