CFFLA LEGISLATIVE UPDATE- 2/10/2025
CFFLA LEGISLATIVE UPDATE - FEBRUARY 10, 2025 Information Cut-off: 2200 Mountain Time
BOTTOM LINE UP FRONT: Colorado SB25-003 set for senate floor vote on February 13, 2025. Bill effectively bans 85% of modern firearms. Economic impact estimated at $278 million in annual revenue losses, affecting over 4000 jobs.
SITUATION UPDATE: In Colorado, new state regulations threaten to devastate the firearms industry. According to the Colorado Bureau of Investigation, 319,699 firearm transfers were approved in 2024 through 2,112 licensed dealers. Proposed legislation threatens to eliminate approximately 4000 jobs and cost the state approximately $9.5 million in annual tax revenue, with potential unemployment benefit costs reaching ~$50 million.
LEGISLATIVE STATUS: On January 28, 2025, the Colorado State Senate State, Veterans, and Military Affairs Committee advanced SB25-003 on a party-line vote. The bill, introduced by Senator Tom Sullivan (D-27), will ban any semiautomatic firearm that accepts a detachable magazine. Per Everytown and Giffords research, this would affect approximately 85% of firearms currently sold in Colorado.
MARKET IMPACT: Direct Impact:
Firearm Sales Loss: ~$170 million
Associated Sales Loss: ~$108 million
Total Revenue Impact: ~$278 million annually
Employment Impact:
Affected Businesses: 2,112 FFLs
Total Jobs at Risk: ~4000
Annual Payroll Loss: ~$61 million
State Fiscal Impact:
Annual Tax Revenue Loss: ~$9.5 million
Projected Unemployment Costs: ~$50 million
INDUSTRY RESPONSE: Colorado FFLs have organized the Colorado Federal Firearms Licensee Association, a 501(c)(6) trade association, with over 110 FFLs currently participating. Individual citizens are working with advocacy groups including We the Second and Rocky Mountain Gun Owners.
ANALYST COMMENTARY: Observed patterns suggest a coordinated, multi-phase approach to restrict firearms commerce in Colorado:
Phase 1 (Completed):
Proposition KK: 6.5% excise tax on firearms and ammunition
HB 24-1353: Creation of state-level dealer licensing system
Phase 2 (In Progress):
SB25-003: Ban on most modern firearms
HB25-1133: Restrictions on ammunition sales
Pattern Analysis: The legislation appears designed to create overlapping regulatory and financial burdens that make continued operation of firearms businesses increasingly difficult. The timing and structure of these bills suggest a deliberate strategy:
Create expensive administrative requirements (HB 24-1353)
Increase operating costs through taxation (Prop KK)
Eliminate majority of sellable inventory (SB25-003)
Restrict remaining business activities (HB25-1133)
The cumulative effect appears designed to force business closures through regulatory and financial pressure rather than direct prohibition, potentially to avoid certain constitutional challenges.
This approach mirrors strategies seen in other states where direct bans have faced legal challenges under Bruen. The economic impact appears to be an intentional tool rather than an unintended consequence.
HISTORICAL ANALOGUES: Several historical examples mirror the current legislative approach in Colorado:
Alcohol Industry (1919-1933)
Incremental regulatory burdens before Prohibition
Licensing requirements increased operational costs
Tax policy used to burden businesses
Ultimate ban achieved through multiple legislative steps
Similar economic disruption to established businesses
California Automotive Regulations (1990-Present)
Gradual increase in regulatory requirements
Layered compliance costs
Use of state-level regulation to affect broader market
Creation of parallel state regulatory framework
Economic pressure on dealerships and manufacturers
Tobacco Industry (1960s-Present)
Incremental restrictions on sales
Layered taxation approach
Location and sales restrictions
Marketing limitations
Business model disruption through regulation
Current Pattern Analysis: The Colorado approach appears to combine elements of these historical examples:
Create parallel state regulatory framework
Layer compliance costs
Restrict product availability
Increase operational costs through taxation
Add administrative burdens
Target business model viability
Like these historical examples, the current strategy appears designed to achieve through economic pressure what might be more difficult to achieve through direct prohibition.
CLOSING STATEMENT
The evidence before us paints a stark picture. The Colorado legislature's coordinated assault on the firearms industry threatens to eliminate nearly four thousand jobs, devastate local economies, and erase hundreds of millions in economic activity from our state. This isn't just about guns - it's about American small businesses, working families, and the fundamental right to engage in lawful commerce. The numbers tell a story of deliberate economic destruction that will ripple through communities across Colorado. Behind every statistic is a family business, a skilled worker, a community member. These are your neighbors who have invested their lives in building legitimate businesses, only to face destruction through legislative decree.
Through the Colorado Federal Firearms Licensee Association, we're building a professional, coordinated response to protect these lawful businesses. But we need every FFL, every business owner, and every concerned citizen to join this effort. In 1754, Benjamin Franklin published a political cartoon of a snake cut into pieces, representing the divided colonies, with the caption 'Join, or Die.' That message of unity in the face of existential threat rings as true today as it did then. Join, or Die.
