SB25-003: The Constitutional and Fiscal Shell Game

Prepared by The Colorado Federal Firearms Licensee Association
March 10, 2025

As SB25-003 continues its advancement through the Colorado legislature, our detailed analysis has uncovered troubling aspects of both the constitutional framework and financial structure of the bill. The evidence reveals what appears to be a deliberate strategy to circumvent constitutional protections while exploiting budget mechanisms to advance the policy regardless of fiscal constraints.

Constitutional Crisis: Fourth Amendment Bypass

Our legal review has identified a concerning constitutional threat hidden within SB25-003's administrative structure. The bill strategically places regulatory authority for semi-automatic firearms with Colorado Parks and Wildlife (CPW) rather than traditional regulatory agencies like the Department of Revenue or Colorado Bureau of Investigation.

This is not a coincidental administrative decision. CPW officers possess extraordinary search powers under C.R.S. § 33-6-111 that traditional law enforcement does not have, including the ability to:

  • Conduct warrantless searches

  • Inspect firearms and equipment without probable cause

  • Enter private property to investigate potential violations

  • Demand documentation without traditional Fourth Amendment constraints

These powers are justified under the "highly regulated activity" doctrine typically reserved for privileges like hunting and fishing—not constitutional rights. By housing firearms regulation within CPW, the bill effectively creates a framework where constitutional rights could be subject to administrative searches that would be plainly unconstitutional if conducted by police.

When questioned about why CPW was selected rather than agencies that traditionally regulate firearms, bill sponsors have provided no clear justification.

The Financial Shell Game: Exploiting TABOR Exemptions

Beyond the constitutional concerns, our analysis of Colorado statutes and fiscal documentation confirms that SB25-003 deliberately exploits budget mechanisms and enterprise fund structures to bypass fiscal constraints. The evidence supports the following:

1. Statutory Misuse of Wildlife Cash Fund

Colorado law explicitly restricts the use of the Wildlife Cash Fund. According to C.R.S. § 33-1-112(1)(a):

"All moneys received from wildlife license fees, and all moneys from all other wildlife sources... shall be utilized for expenditures authorized or contemplated by and not inconsistent with the provisions of articles 1 to 6 of this title for wildlife activities and functions..."

The same statute explicitly states these funds "shall not be deposited in or transferred to the general fund of the state of Colorado or any other fund."

Yet SB25-003's fiscal note reveals that $1.25 million from the Wildlife Cash Fund would be diverted to cover implementation expenses for firearms licensing. This appears to directly violate statutory limitations on this fund.

2. Exploitation of Enterprise Status

Colorado's TABOR (Taxpayer's Bill of Rights) constitutional provision defines an "enterprise" as "a government-owned business authorized to issue its own revenue bonds and receiving under 10% of annual revenue in grants from all Colorado state and local governments combined."

CPW has enterprise status, making it exempt from TABOR revenue limitations. The bill strategically routes approximately $2.3 million in annual fees through CPW's enterprise structure, deliberately avoiding TABOR's constitutional revenue caps and refund requirements.

This matters because Colorado is currently facing a significant budget shortfall while simultaneously being required to refund excess revenue under TABOR. According to the December 2024 TABOR Outlook, revenue is projected to exceed the TABOR cap by $844.1 million in FY 2025-26—creating a refund obligation to taxpayers.

By routing new revenue through CPW's enterprise status, the bill's architects are attempting to create a new revenue stream that avoids constitutional limitations.

3. Technical Acknowledgment of Funding Issues

The fiscal note explicitly acknowledges this funding problem in its Technical Note section:

"The Firearms Training and Safety Course Cash Fund is intended to cover costs for the CPW to administer the records system. However, it will not have sufficient revenue in FY 2025-26 to cover these costs."

This indicates that even with the revenue exploitation structure, the bill's funding mechanism remains problematic.

Impact on Colorado FFLs

For our membership, these implications are profound:

  1. Inventory Impact: Approximately 85% of current FFL inventory would be affected by the bill's restrictions.

  2. Constitutional Concerns: Customer information would be housed in a database maintained by an agency with warrantless search authority—creating potential Fourth Amendment issues.

  3. Fiscal Manipulation: The bill diverts conservation funding from wildlife management to implement gun control measures—setting a precedent for future regulatory overreach.

  4. Compliance Burden: The bill creates a convoluted regulatory structure with additional verification requirements when selling specified firearms.

Current Status and Next Steps

SB25-003 has passed the Senate and is currently under consideration in the House. CFFLA is actively engaging on multiple fronts:

  1. Constitutional Challenge Preparation: We're developing a comprehensive constitutional framework for potential legal challenges should the bill become law.

  2. Legislative Advocacy: We continue presenting these constitutional and fiscal concerns to legislators, emphasizing both the Fourth Amendment concerns and the statutory problems with the funding structure.

  3. Public Awareness: We're expanding efforts to inform Colorado citizens about these hidden mechanisms within the bill.

  4. Coalition Building: We're developing partnerships with conservation groups concerned about Wildlife Cash Fund diversion away from its statutory purpose.

How You Can Help

  1. Contact Your Representatives: Express specific concerns about both the constitutional implications and fiscal mechanisms of SB25-003.

  2. Share This Information: Help educate your customers and community members about the hidden provisions of this legislation. 

  3. Register to Testify. Visit this guide on how. 

  4. Document Impacts: Complete our Economic Impact Survey to help quantify the business effects of this legislation.

  5. Support CFFLA's Efforts: Your continued engagement enables our professional representation on these critical issues.
    Where Your Support Goes: Transparency in Every Dollar

    Subscribe to CFFLA Professional Membership:

    $40.00 / month
    $450.00 / year

Conclusion

SB25-003 represents a multifaceted threat that extends far beyond firearms policy. By exploiting administrative search powers and manipulating fiscal mechanisms, the bill establishes dangerous precedents that should concern all Coloradans regardless of their position on firearms.

CFFLA remains committed to professional, evidence-based advocacy that highlights these serious constitutional and fiscal concerns. We will continue providing updates as this legislation progresses.

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Comprehensive Analysis of Issues with SB25-003

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LEGAL ANALYSIS THE CONSTITUTIONAL CRISIS CREATED BY SB25-003: