An Act concerning firearm sales, and supplementing and amending Title 2C of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) This act shall be known and may be cited as the "Responsibility in Firearms Sales Act" or "RIFS Act."

2. (New section) The Legislature finds and declares that:

a. The people of this State have incurred undue public health costs and financial burdens from injuries and deaths as a result of the use of firearms.

b. Ownership of firearms has surged dramatically in this State since 2019.

c. According to the most recent data available from the Center for Disease Control and Prevention (CDC), there were 48,000 firearm-related deaths in the United States in 2022.

d. More people suffer nonfatal firearm-related injuries than die.

e. Firearm injuries affect people in all stages of life.

f. The CDC data indicates that firearm injuries are the leading cause of death among children and teens ages one through 19, and were among the five leading causes of death for people ages one through 44.

g. The economic impact of firearm violence is substantial and includes medical and lost productivity costs.

h. People who survive a firearm-related injury often experience long-term consequences that may include physical disability from the injury and chronic mental health conditions.

i. Therefore, to protect the health, welfare, and safety of the people of this State, the Legislature finds it necessary to require the licensing of firearm manufacturers and to distribute the proceeds from the licensing fees to firearm victims.

3. (New section) As used in this act:

"Consumer price index" means the consumer price index for all urban consumers, as published by the United States Department of Labor.

"Direct costs" means costs incurred for any one or more of the following: medical treatment and care; medical devices and prescriptions drugs; mental health treatment provided by a licensed psychiatrist, psychologist, social worker, or behavioral therapist; licensed physical therapy, occupational therapy, and rehabilitation services; funeral and burial; emergency transportation; lost wages; emergency relocation; property damage; legal services; or emergency child or dependent care.

"Distributor of firearms" means a person who supplies firearms to retailers or other businesses that sell firearms to consumers in this State.

"Firearm" shall have the same meaning as set forth in subsection f. of N.J.S.2C:39-1.

"Firearm injury or death" means an injury to or the death of a person, including any firearm-related suicide or firearm-related homicide, that is caused by a high-velocity projectile fired from a firearm.

"First-degree relative" means an individual's parent, sibling, or child.

"Manufacturer" shall have the same meaning as set forth in subsection j. of N.J.S.2C:39-1.

"Permanent disability" means a permanent physical impairment to a person that is caused by a firearm injury and either prevents the person from working or performing everyday activities or results in paralysis or extended treatment in a long-term acute care facility.

"Retail dealer" shall have the same meaning as set forth in subsection l. of N.J.S.2C:39-1.

"RIFS Fund" means the Responsibility in Firearm Sales Fund established pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Second-degree relative" means an aunt, uncle, grandparent, grandchild, niece, half-sibling, or other blood relative who is one generation removed.

"Superintendent" means the Superintendent of State Police.

"Total annual aggregate fee" means the sum of all license fees imposed on manufacturers over one year pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Victim of firearms" means any person who is killed by a firearm injury or suffers a firearm injury; or the next of kin of that person, legal guardian, dependent, first-degree relative, second-degree relative, or employer.

4. (New section) a. Every manufacturer of firearms shall obtain an annual Responsibility in Firearm Sales license from the superintendent pursuant to the provisions of this section. A manufacturer of firearms shall not engage in the business of, or act as a manufacturer of firearms, or manufacture or sell at wholesale any firearm, unless the manufacturer has a valid license issued by the superintendent. A retail dealer of firearms shall not sell a firearm to a consumer in this State unless the manufacturer of that firearm has a valid license.

b. Applications for the annual license shall be submitted on forms as prescribed by the superintendent, and the applicant shall provide information and other information as mandated by law or by any rules or regulations adopted by the superintendent pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

c. The superintendent shall issue an annual license upon application made pursuant to the provisions of subsection b. of this section and the collection of a license fee.

d. The superintendent shall set the fee for the license in accordance with the following:

(1) The total annual aggregate fee for all manufacturers of firearms in this State shall be set at an amount that the superintendent estimates is equal to the public health costs and financial burdens borne by the State and its residents as a result of firearm injuries occurring in this State, as determined by the superintendent based on the incidence of firearm injuries in this State in the previous year, except that during the first year that the license is established, the total annual aggregate fee shall not exceed $866,000,000.

(2) The total annual aggregate fee for all manufacturers of firearms in this State shall annually thereafter be increased by the annual unadjusted percentage increase in the consumer price index for the 12 months ending with the September preceding each November 1, including all previous adjustments.

(3) The fee paid by a manufacturer shall be the portion of the total annual aggregate fee equal to the market share of the manufacturer, as determined by the superintendent.

(4) The superintendent may adjust the fee paid by a manufacturer based on the number of firearms recovered in a given year in connection with incidents involving firearm injuries that are linked to a specific manufacturer in the State, regardless of modifications or accessories added to the firearm after manufacturing, divided by the total number of firearms recovered in connection with those incidents in that same year.

e. The superintendent shall provide notice of the fee amount to a manufacturer at least 90 days prior to the annual renewal date.

f. The superintendent shall establish procedures by which a manufacturer may dispute a license fee set by the superintendent.

g. The superintendent shall deposit all fees collected pursuant to the provisions of this section into the RIFS Fund established pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

h. The superintendent shall maintain on an Internet website a list of all manufacturers that possess a valid license, which shall serve as notice to a retail dealer regarding whether the sale of a manufacturer's firearm is authorized pursuant to the provisions of this section. It shall not be a defense to a violation of this section that a retail dealer did not know whether a manufacturer possessed a valid license, provided the manufacturer of the firearm was listed on the Internet website at the time of sale.

5. (New section) a. The Attorney General shall have the authority to investigate any suspected violation of P.L. , c. (C. ) (pending before the Legislature as this bill) and may institute a civil action in a court of competent jurisdiction for equitable or other relief to enforce its provisions.

b. A manufacturer who violates the provisions of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to a civil penalty of an amount not to exceed $1 million for each month that a violation continues.

c. A retailer who violates the provisions of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to a civil penalty of an amount not to exceed $10,000 per violation.

d. Penalties shall be collected by the Attorney General in a civil action by a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

e. Any civil penalty or damages collected pursuant to the provisions of this section shall be deposited in the RIFS Fund established pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. There is established in the Department of the Treasury a special, non-lapsing fund to be known as the "RIFS Fund." The fund shall be administered by the Victims of Crime Compensation Office, in consultation with the superintendent, and money deposited into the RIFS fund shall be used in accordance with the provisions of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) to provide compensation to firearms victims.

7. The Victims of Crime Compensation Office, in consultation with the superintendent, shall administer the RIFS Fund established pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) and provide an award of compensation to firearms victims to reimburse direct costs associated with a firearm injury or death. The award shall be made in accordance with the provisions of P.L.1971, c.317 (C.52:4B-1et seq.), except that:

a. a victim shall be eligible for compensation for three years following the date of injury, unless the injury resulted in permanent disability; and

b. there shall be no monetary limitations on compensation awarded pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). However, if the total amount of approved claims exceeds the funds available from the RIFS Fund in any given year, the Victims of Crime Compensation Office shall reduce, to the extent practicable, the award approved for each claimant on a pro rata basis and shall provide claimants with an equal percentage of the total amount of each respective claimant's approved award. When additional funds become available from the RIFS fund, the Victims of Crime Compensation Office may make supplemental payments to claimants whose approved awards had previously been reduced.

8. N.J.S.2C:58-2 is amended to read as follows:

2C:58-2. a. Licensing of retail dealers and their employees. No retail dealer of firearms nor any employee of a retail dealer shall sell or expose for sale, or possess with the intent of selling, any firearm unless licensed to do so as hereinafter provided. The superintendent shall prescribe standards and qualifications for retail dealers of firearms and their employees for the protection of the public safety, health and welfare.

Applications shall be made in the form prescribed by the superintendent, accompanied by a fee of $50 payable to the superintendent, and shall be made to a judge of the Superior Court in the county where the applicant maintains his place of business. The judge shall grant a license to an applicant if he finds that the applicant meets the standards and qualifications established by the superintendent and that the applicant can be permitted to engage in business as a retail dealer of firearms or employee thereof without any danger to the public safety, health and welfare. Each license shall be valid for a period of three years from the date of issuance, and shall authorize the holder to sell firearms at retail in a specified municipality.

In addition, every retail dealer shall pay a fee of $5 for each employee actively engaged in the sale or purchase of firearms. The superintendent shall issue a license for each employee for whom said fee has been paid, which license shall be valid for so long as the employee remains in the employ of said retail dealer.

No license shall be granted to any retail dealer under the age of 21 years or to any employee of a retail dealer under the age of 18 or to any person who could not qualify to obtain a permit to purchase a handgun or a firearms purchaser identification card, or to any corporation, partnership or other business organization in which the actual or equitable controlling interest is held or possessed by such an ineligible person.

All licenses shall be granted subject to the following conditions, for breach of any of which the license shall be subject to revocation on the application of any law enforcement officer and after notice and hearing by the issuing court:

(1) The business shall be carried on only in the building or buildings designated in the license, provided that repairs may be made by the dealer or his employees outside of such premises.

(2) The license or a copy certified by the issuing authority shall be displayed at all times in a conspicuous place on the business premises where it can be easily read.

(3) No firearm or imitation thereof shall be placed in any window or in any other part of the premises where it can be readily seen from the outside.

(4) No rifle or shotgun, except antique rifles or shotguns, shall be delivered to any person unless such person possesses and exhibits a valid firearms purchaser identification card and furnishes the seller, on the form prescribed by the superintendent, a certification signed by him setting forth his name, permanent address, firearms purchaser identification card number and such other information as the superintendent may by rule or regulation require. The certification shall be retained by the dealer and shall be made available for inspection by any law enforcement officer at any reasonable time.

(5) No handgun shall be delivered to any person unless:

(a) Such person possesses and exhibits a valid permit to purchase a firearm and at least seven days have elapsed since the date of application for the permit;

(b) The person is personally known to the seller or presents evidence of his identity;

(d) The handgun is accompanied by a trigger lock or a locked case, gun box, container or other secure facility; provided, however, this provision shall not apply to antique handguns or personalized handguns included in the roster pursuant to section 2 of P.L.2019, c.164 (C.2C:58-2.8). The exemptions afforded under this subparagraph for antique handguns and personalized handguns shall be narrowly construed, limited solely to the requirements set forth herein and shall not be deemed to afford or authorize any other exemption from the regulatory provisions governing firearms set forth in chapter 39 and chapter 58 of Title 2C of the New Jersey Statutes; and

(e) (Deleted by amendment, P.L.2019, c.164)

(6) The dealer shall keep a true record of every handgun sold, given or otherwise delivered or disposed of, in accordance with the provisions of subsections b. through e. of this section and the record shall note whether a trigger lock, locked case, gun box, container or other secure facility was delivered along with the handgun.

(7) A dealer shall not knowingly deliver more than one handgun to any person within any 30-day period. This limitation shall not apply to:

(a) a federal, State, or local law enforcement officer or agency purchasing handguns for use by officers in the actual performance of their law enforcement duties;

(b) a collector of handguns as curios or relics as defined in Title 18, United States Code, section 921 (a) (13) who has in his possession a valid Collector of Curios and Relics License issued by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives;

(d) any transaction where the person has purchased a handgun from a licensed retail dealer and has returned that handgun to the dealer in exchange for another handgun within 30 days of the original transaction, provided the retail dealer reports the exchange transaction to the superintendent; or

(e) any transaction where the superintendent issues an exemption from the prohibition in this subsection pursuant to the provisions of section 4 of P.L.2009, c.186 (C.2C:58-3.4).

(8) A firearm shall not be sold to a consumer in this State unless the manufacturer of that firearm is in possession of a valid Responsibility in Firearms Sales license pursuant to the provisions of subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Records. (1) Every person engaged in the retail business of selling, leasing or otherwise transferring a handgun, as a retail dealer or otherwise, shall keep a register in which shall be entered the time of the sale, lease or other transfer, the date thereof, the name, age, date of birth, occupation, residence and a physical description including distinguishing physical characteristics, if any, of the purchaser, lessee or transferee, the name and permanent home address of the person making the sale, lease or transfer, the place of the transaction, and the make, model, manufacturer's number, caliber and other marks of identification on such handgun and such other information as the superintendent shall deem necessary for the proper enforcement of this chapter. The register shall be retained by the dealer and shall be made available at all reasonable hours for inspection by any law enforcement officer.

(2) Every person engaged in the retail business of selling, leasing, or otherwise transferring handgun ammunition, as a retail dealer or otherwise, shall keep an electronic record in which shall be entered the name of the manufacturer; the date of the transaction; the type; caliber or gauge of the ammunition; the quantity of the ammunition sold; the name, address, and date of birth of the purchaser; the identification used to establish the identity of the purchaser; and any other information the superintendent shall deem necessary for the proper enforcement of this chapter.

The electronic records shall be retained by the dealer and shall be made available at all reasonable hours for inspection by any law enforcement officer, and additionally shall be electronically reported to the superintendent in accordance with section 5 of P.L.2022, c.55 (C.2C:58-3.3a).

(3) Every retail dealer in the business of selling or otherwise transferring handgun ammunition shall immediately electronically report to the State Police any transaction involving the sale, transfer, assignment, or disposition of 2,000 or more rounds of handgun ammunition and information relating to each transaction in accordance with this subsection.

Until the implementation of the electronic record system described in paragraph (2) of subsection b. of this section or section 5 of P.L.2022, c.55 (C.2C:58-3.3a), the retail dealer shall immediately contact the State Police regarding the sale, transfer, assignment, or disposition of 2,000 or more rounds of handgun ammunition in accordance with guidelines established by the superintendent.

c. Forms of register.

(1) Until the implementation of the electronic record system described in paragraph (2) of subsection b. of this section or section 5 of P.L.2022, c.55 (C.2C:58-3.3a), the superintendent shall prepare the form of the register as described in paragraph (1) of subsection b. of this section and furnish the same in triplicate to each person licensed to be engaged in the business of selling, leasing or otherwise transferring firearms.

(2) All retail dealers of handgun ammunition shall establish a system for maintaining electronic records of the sale or transfer of handgun ammunition within 12 months after the effective date of P.L.2022, c.55 (C.2C:58-3.3a et al.).

d. Signatures in register. Until the dealer implements an electronic record system as described in paragraph (2) of subsection b. of this section or section 5 of P.L.2022, c.55 (C.2C:58-3.3a), the purchaser, lessee or transferee of any handgun shall sign, and the dealer shall require him to sign his name to the register, in triplicate, and the person making the sale, lease or transfer shall affix his name, in triplicate, as a witness to the signature. The signatures, or the entry of an electronic signature in the electronic record system pursuant to paragraph (2) of subsection b. of this section or section 5 of P.L.2022, c.55 (C.2C:58-3.3a), shall constitute a representation of the accuracy of the information contained in the register.

e. Copies of register entries; delivery to chief of police or county clerk.

(1) Except as otherwise provided in paragraph (2) of this subsection, within five days of the date of the sale, assignment or transfer, the dealer shall deliver or mail by certified mail, return receipt requested, legible copies of the register forms to the office of the chief of police of the municipality in which the purchaser resides, or to the office of the captain of the precinct of the municipality in which the purchaser resides, and to the superintendent. If hand delivered a receipt shall be given to the dealer therefor.

Where a sale, assignment or transfer is made to a purchaser who resides in a municipality having no chief of police, the dealer shall, within five days of the transaction, mail a duplicate copy of the register sheet to the clerk of the county within which the purchaser resides.

(2) A dealer shall not be required to use the triplicate form after the dealer establishes an electronic reporting system pursuant to paragraph (2) of subsection b. of this section or section 5 of P.L.2022, c.55 (C.2C:58-3.3a).

(cf: P.L.2022, c.55, s.2)

9. This act shall take effect on the first day of the third year next following enactment, except that the superintendent may take any anticipatory administrative action required for the implementation of this act.

STATEMENT

This bill establishes the "Responsibility in Firearms Sales Act."

Under the bill, a manufacturer of firearms is prohibited from manufacturing or selling any firearm at wholesale unless the manufacturer holds a valid "Responsibility in Firearms Sales" license issued by the Superintendent of State Police.

The bill requires a manufacturer to complete an application and pay an annual fee to obtain a license. Under the bill, the fee for the license is to be set by the superintendent, as follows:

(1) The total annual aggregate fee for all manufacturers of firearms in this State is to be set at an amount that the superintendent estimates is equal to the public health costs and financial burdens borne by the State and its residents as a result of firearm injuries occurring in this State, as determined by the superintendent based on the incidence of firearm injuries in this State in the previous year, except that during the first year the license is established, the total annual aggregate fee shall not exceed $866,000,000.

(2) The total annual aggregate fee for all manufacturers of firearms in this State is to annually thereafter be increased by the annual unadjusted percentage increase in the consumer price index for the 12 months ending with the September preceding each November 1, including all previous adjustments.

(3) The fee paid by a manufacturer is to be the portion of the total annual aggregate fee equal to the market share of the manufacturer, as determined by the superintendent.

Under the bill, the superintendent is required to provide notice of the fee amount to a manufacturer at least 90 days prior to the annual renewal date. The bill requires the superintendent to establish procedures for a manufacturer to dispute the fee amount.

The bill prohibits a retail dealer of firearms from selling a firearm to a consumer in this State unless the manufacturer of that firearm has a valid license.

Under the bill, the superintendent is required to maintain on an Internet website a list of all manufacturers that possess a valid license, which is to serve as notice to a retail dealer of whether the sale of a manufacturer's firearm is authorized under the bill The bill provides that it is not a defense to a violation of provisions of the bill that a retailer dealer did not know whether a manufacturer possessed a valid license, provided the manufacturer of the firearm was listed on the Internet website at the time of sale.

The bill authorizes the Attorney General to investigate any suspected violation of the bill's provisions and to institute a civil action in a court of competent jurisdiction for equitable or other relief.

Under the bill, a manufacturer that violates the bill's provisions is subject to a civil penalty of up to $1 million for each month the violation continues. A retail dealer who violates the bill's provisions is subject to a civil penalty of up to $10,000 per violation and may have their retail dealer license revoked.

The bill provides that all fees and penalties collected under its provisions are to be deposited in a special, non-lapsing fund established in the Department of Treasury, to be known as the "RIFS Fund."

Under the bill, the fund is to be administered by the Victims of Crime Compensation Office (VCCO), in consultation with the superintendent, and moneys deposited into the RIFS fund are to be used to provide an award of compensation to firearms victims to reimburse direct costs associated with a firearm injury or death.

The bill provides that a victim is eligible for compensation for three years following the date of injury, unless the injury results in permanent disability. Under the bill, there is no monetary limitation on an award of compensation. However, if the total amount of approved claims exceeds the funds available from the RIFS Fund in any given year, the VCCO is to reduce, to the extent practicable, the award approved for each claimant on a pro rata basis and is to provide claimants with an equal percentage of the total amount of each respective claimant's approved award. When additional funds become available from the RIFS fund, the VCCO may make supplemental payments to claimants whose approved awards had previously been reduced.

The bill defines "victim of firearms" to mean any person who is killed by a firearm injury or suffers a firearm injury; or the next of kin of that person, legal guardian, dependent, first-degree relative, second-degree relative, or employer. The bill defines "firearm injury or death" to mean an injury to or the death of a person, including firearm-related suicides and firearm-related homicides, that is caused by a high-velocity projectile fired from a firearm.

The Legislature finds that the economic impact of firearm violence is substantial and includes medical and lost productivity costs, and that people who survive a firearm-related injury often experience long-term consequences that may include physical disability from the injury and chronic mental health conditions. The Legislature further finds that in order to protect the health, welfare, and safety of the people of this State, it is necessary to require the licensing of manufacturers of firearms and to distribute the proceeds to firearm victims.