Sec. 29.03.01.11. Secondary Sales

A. A secondary sale is a transaction in which neither party is a dealer or involved in the dealing or repairing of firearms as a regular course of trade or business.

B. A person may not sell, rent, or transfer a regulated firearm to:

(1) An applicant whose firearm application is disapproved or is placed on hold because of an open disposition of criminal proceedings against the firearm applicant, unless the disapproval or hold is subsequently withdrawn by the Secretary or overruled by a court;

(2) A purchaser, lessee, or transferee who the person knows or has reasonable cause to believe is prohibited from possessing a regulated firearm under Regulation .03 of this chapter; or

(3) A purchaser, lessee, or transferee who is visibly under the influence of alcohol or drugs.

C. A person may not sell, rent, transfer, or purchase a regulated firearm until after 7 days following the time the firearm application is completed by the applicant and submitted to the Secretary by a dealer or a designated law enforcement agency.

D. The following procedure shall be used for all secondary sales of regulated firearms.

(1) The applicant shall complete a firearm application as prescribed in Regulation .16 of this chapter, except for the signature, which shall be completed in the presence of a dealer or a designated law enforcement agency.

(2) The regulated firearm to be purchased shall be transported by the seller to a dealer or a designated law enforcement agency.

(3) The firearm shall be transported unloaded, with no ammunition being readily available, and in a locked box, enclosed case, or enclosed holster.

(4) The seller shall contact the dealer or the designated law enforcement agency before removing the firearm from the vehicle and advise the dealer or the designated law enforcement agency that the applicant is applying for a secondary sale.

(5) The firearm may not be worn or carried into a dealer’s place of business or a designated law enforcement installation without prior notification to the dealer or the designated law enforcement agency.

(6) The applicant shall sign the firearm application in the presence of the seller and dealer or the seller and designated law enforcement agent.

(7) The dealer or the designated law enforcement agency shall:

(a) Review and verify the applicant information on the application;

(b) Review and verify the seller information on the application;

(c) Review and verify the regulated firearm information on the application to ensure that a sale of a handgun manufactured after January 1, 1985, is permitted only if the handgun is on the handgun roster;

(d) Ensure that the applicant understands the declarations on the application;

(e) Review and verify the signatures and the date on the application;

(f) Sign and date the application as a reviewer; and

(g) Submit the application and the application fee to the Secretary.

(8) The seller shall complete the sale, rental, or transfer of the firearm within 90 days after the firearm application is marked by the Secretary as not disapproved.

(9) After completing the sale, rental, or transfer, the seller shall submit a copy of the completed application with a signature verifying the sale, rental, or transfer to the Secretary within 7 days after delivery of the regulated firearm in accordance with Regulation .12 of this chapter.

(10) If the sale, rental, or transfer of the firearm is not completed within 90 days, the seller shall return the firearm application to the Secretary within 7 days.

E. An applicant for a secondary sale of a regulated firearm through a dealer shall pay the dealer a processing fee not exceeding $20.