BILL NUMBER: SB 1152	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 27, 2004
	PASSED THE ASSEMBLY  AUGUST 26, 2004
	AMENDED IN ASSEMBLY  AUGUST 23, 2004
	AMENDED IN ASSEMBLY  JULY 15, 2004
	AMENDED IN ASSEMBLY  JUNE 16, 2004
	AMENDED IN SENATE  APRIL 28, 2004

INTRODUCED BY   Senator Scott

                        JANUARY 27, 2004

   An act to amend Sections 12071 and 12316 of, and to add Section
12326 to, the Penal Code, relating to ammunition.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1152, Scott.  Ammunition.
   Under existing law, it is a misdemeanor to sell ammunition to a
person knowing that the person is under 18 years of age, but reliance
upon evidence of identity is a defense.
   This bill would instead provide that it is a misdemeanor to sell
ammunition to a person under 18 years of age, but would provide that
reasonable reliance upon evidence of identity would be a defense.
   By expanding the definition of a crime, the bill would impose a
state-mandated local program.
   Existing law generally regulates the sale of ammunition.
   The bill would also require any person engaged in the retail sale
of handgun ammunition, as defined, to record the date, the name,
address, and date of birth of the transferee, a thumbprint, and other
specified information concerning the transaction, and to make the
information available to peace officers, except as specified.  A
violation of these provisions would be a misdemeanor.
   By creating a new crime, the bill would impose a state-mandated
local program.
   This bill would conform existing cross-references to the Code of
Federal Regulations in certain provisions relating to the regulation
of firearms to reflect the recent renumbering of certain sections of
those federal regulations.
   This bill would also incorporate additional changes in Section
12071 of the Penal Code proposed by SB 1140, to become operative only
if SB 1140 and this bill are both enacted and become effective on or
before January 1, 2005, and this bill is enacted last.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12071 of the Penal Code is amended to read:
   12071.  (a) (1) As used in this chapter, the term "licensee,"
"person licensed pursuant to Section 12071," or "dealer" means a
person who has all of the following:
   (A) A valid federal firearms license.
   (B) Any regulatory or business license, or licenses, required by
local government.
   (C) A valid seller's permit issued by the State Board of
Equalization.
   (D) A certificate of eligibility issued by the Department of
Justice pursuant to paragraph (4).
   (E) A license issued in the format prescribed by paragraph (6).
   (F) Is among those recorded in the centralized list specified in
subdivision (e).
   (2) The duly constituted licensing authority of a city, county, or
a city and county shall accept applications for, and may grant
licenses permitting, licensees to sell firearms at retail within the
city, county, or city and county.  The duly constituted licensing
authority shall inform applicants who are denied licenses of the
reasons for the denial in writing.
   (3) No license shall be granted to any applicant who fails to
provide a copy of his or her valid federal firearms license, valid
seller's permit issued by the State Board of Equalization, and the
certificate of eligibility described in paragraph (4).
   (4) A person may request a certificate of eligibility from the
Department of Justice and the Department of Justice shall issue a
certificate to an applicant if the department's records indicate that
the applicant is not a person who is prohibited from possessing
firearms.
   (5) The department shall adopt regulations to administer the
certificate of eligibility program and shall recover the full costs
of administering the program by imposing fees assessed to applicants
who apply for those certificates.
   (6) A license granted by the duly constituted licensing authority
of any city, county, or city and county, shall be valid for not more
than one year from the date of issuance and shall be in one of the
following forms:
   (A) In the form prescribed by the Attorney General.
   (B) A regulatory or business license that states on its face
"Valid for Retail Sales of Firearms" and is endorsed by the signature
of the issuing authority.
   (C) A letter from the duly constituted licensing authority having
primary jurisdiction for the applicant's intended business location
stating that the jurisdiction does not require any form of regulatory
or business license or does not otherwise restrict or regulate the
sale of firearms.
   (7) Local licensing authorities may assess fees to recover their
full costs of processing applications for licenses.
   (b) A license is subject to forfeiture for a breach of any of the
following prohibitions and requirements:
   (1) (A) Except as provided in subparagraphs (B) and (C), the
business shall be conducted only in the buildings designated in the
license.
   (B) A person licensed pursuant to subdivision (a) may take
possession of firearms and commence preparation of registers for the
sale, delivery, or transfer of firearms at gun shows or events, as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, if the gun show or event is not
conducted from any motorized or towed vehicle.  A person conducting
business pursuant to this subparagraph shall be entitled to conduct
business as authorized herein at any gun show or event in the state
without regard to the jurisdiction within this state that issued the
license pursuant to subdivision (a), provided the person complies
with (i) all applicable laws, including, but not limited to, the
waiting period specified in subparagraph (A) of paragraph (3), and
(ii) all applicable local laws, regulations, and fees, if any.
   A person conducting business pursuant to this subparagraph shall
publicly display his or her license issued pursuant to subdivision
(a), or a facsimile thereof, at any gun show or event, as specified
in this subparagraph.
   (C) A person licensed pursuant to subdivision (a) may engage in
the sale and transfer of firearms other than handguns, at events
specified in subdivision (g) of Section 12078, subject to the
prohibitions and restrictions contained in that subdivision.
   A person licensed pursuant to subdivision (a) also may accept
delivery of firearms other than handguns, outside the building
designated in the license, provided the firearm is being donated for
the purpose of sale or transfer at an auction or similar event
specified in subdivision (g) of Section 12078.
   (D) The firearm may be delivered to the purchaser, transferee, or
person being loaned the firearm at one of the following places:
   (i) The building designated in the license.
   (ii) The places specified in subparagraph (B) or (C).
   (iii) The place of residence of, the fixed place of business of,
or on private property owned or lawfully possessed by, the purchaser,
transferee, or person being loaned the firearm.
   (2) The license or a copy thereof, certified by the issuing
authority, shall be displayed on the premises where it can easily be
seen.
   (3) No firearm shall be delivered:
   (A) Within 10 days of the application to purchase, or, after
notice by the department pursuant to subdivision (d) of Section
12076, within 10 days of the submission to the department of any
correction to the application, or within 10 days of the submission to
the department of any fee required pursuant to subdivision (e) of
Section 12076, whichever is later.
   (B) Unless unloaded and securely wrapped or unloaded and in a
locked container.
   (C) Unless the purchaser, transferee, or person being loaned the
firearm presents clear evidence of his or her identity and age to the
dealer.
   (D) Whenever the dealer is notified by the Department of Justice
that the person is in a prohibited class described in Section 12021
or 12021.1 of this code or Section 8100 or 8103 of the Welfare and
Institutions Code.  The dealer shall make available to the person in
the prohibited class a prohibited notice and transfer form, provided
by the department, stating that the person is prohibited from owning
or possessing a firearm, and that the person may obtain from the
department the reason for the prohibition.
   (4) No handgun or imitation handgun, or placard advertising the
sale or other transfer thereof, shall be displayed in any part of the
premises where it can readily be seen from the outside.
   (5) The licensee shall agree to and shall act properly and
promptly in processing firearms transactions pursuant to Section
12082.
   (6) The licensee shall comply with Sections 12073, 12076, and
12077, subdivisions (a) and (b) and paragraph (1) of subdivision (f)
of Section 12072, subdivision (a) of Section 12316, and Section
12326.
   (7) The licensee shall post conspicuously within the licensed
premises the following warnings in block letters not less than one
inch in height:
   (A) "IF YOU KEEP A LOADED FIREARM WITHIN ANY PREMISES UNDER YOUR
CUSTODY OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE OBTAINS IT AND
USES IT, RESULTING IN INJURY OR DEATH, OR CARRIES IT TO A PUBLIC
PLACE, YOU MAY BE GUILTY OF A MISDEMEANOR OR A FELONY UNLESS YOU
STORED THE FIREARM IN A LOCKED CONTAINER OR LOCKED THE FIREARM WITH A
LOCKING DEVICE, TO KEEP IT FROM TEMPORARILY FUNCTIONING."
   (B) "IF YOU KEEP A HANDGUN WITHIN ANY PREMISES UNDER YOUR CUSTODY
OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE GAINS ACCESS TO THE
FIREARM, AND CARRIES IT OFF-PREMISES, YOU MAY BE GUILTY OF A
MISDEMEANOR, UNLESS YOU STORED THE FIREARM IN A LOCKED CONTAINER, OR
LOCKED THE FIREARM WITH A LOCKING DEVICE, TO KEEP IT FROM TEMPORARILY
FUNCTIONING."
   (C) "IF YOU KEEP ANY FIREARM WITHIN ANY PREMISES UNDER YOUR
CUSTODY OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE GAINS ACCESS
TO THE FIREARM, AND CARRIES IT OFF-PREMISES TO A SCHOOL OR
SCHOOL-SPONSORED EVENT, YOU MAY BE GUILTY OF A MISDEMEANOR, INCLUDING
A FINE OF UP TO FIVE THOUSAND DOLLARS ($5,000), UNLESS YOU STORED
THE FIREARM IN A LOCKED CONTAINER, OR LOCKED THE FIREARM WITH A
LOCKING DEVICE."
   (D) "DISCHARGING FIREARMS IN POORLY VENTILATED AREAS, CLEANING
FIREARMS, OR HANDLING AMMUNITION MAY RESULT IN EXPOSURE TO LEAD, A
SUBSTANCE KNOWN TO CAUSE BIRTH DEFECTS, REPRODUCTIVE HARM, AND OTHER
SERIOUS PHYSICAL INJURY.  HAVE ADEQUATE VENTILATION AT ALL TIMES.
WASH HANDS THOROUGHLY AFTER EXPOSURE."
   (E) "FEDERAL REGULATIONS PROVIDE THAT IF YOU DO NOT TAKE PHYSICAL
POSSESSION OF THE FIREARM THAT YOU ARE ACQUIRING OWNERSHIP OF WITHIN
30 DAYS AFTER YOU COMPLETE THE INITIAL BACKGROUND CHECK PAPERWORK,
THEN YOU HAVE TO GO THROUGH THE BACKGROUND CHECK PROCESS A SECOND
TIME IN ORDER TO TAKE PHYSICAL POSSESSION OF THAT FIREARM."
   (F) "NO PERSON SHALL MAKE AN APPLICATION TO PURCHASE MORE THAN ONE
HANDGUN WITHIN ANY 30-DAY PERIOD AND NO DELIVERY SHALL BE MADE TO
ANY PERSON WHO HAS MADE AN APPLICATION TO PURCHASE MORE THAN ONE
HANDGUN WITHIN ANY 30-DAY PERIOD."
   (8) (A) Commencing April 1, 1994, and until January 1, 2003, no
handgun shall be delivered unless the purchaser, transferee, or
person being loaned the firearm presents to the dealer a basic
firearms safety certificate.
   (B) Commencing January 1, 2003, no dealer may deliver a handgun
unless the person receiving the handgun presents to the dealer a
valid handgun safety certificate.  The firearms dealer shall retain a
photocopy of the handgun safety certificate as proof of compliance
with this requirement.
   (C) Commencing January 1, 2003, no handgun may be delivered unless
the purchaser, transferee, or person being loaned the firearm
presents documentation indicating that he or she is a California
resident.  Satisfactory documentation shall include a utility bill
from within the last three months, a residential lease, a property
deed, or military permanent duty station orders indicating assignment
within this state, or other evidence of residency as permitted by
the Department of Justice.  The firearms dealer shall retain a
photocopy of the documentation as proof of compliance with this
requirement.
   (D) Commencing January 1, 2003, except as authorized by the
department, no firearms dealer may deliver a handgun unless the
recipient performs a safe handling demonstration with that handgun.
The demonstration shall commence with the handgun unloaded and locked
with the firearm safety device with which it is required to be
delivered, if applicable.  While maintaining muzzle awareness, that
is, the firearm is pointed in a safe direction, preferably down at
the ground, and trigger discipline, that is, the trigger finger is
outside of the trigger guard and along side of the handgun frame, at
all times, the handgun recipient shall correctly and safely perform
the following:
   (i) If the handgun is a semiautomatic pistol:
   (I) Remove the magazine.
   (II) Lock the slide back.  If the model of firearm does not allow
the slide to be locked back, pull the slide back, visually and
physically check the chamber to ensure that it is clear.
   (III) Visually and physically inspect the chamber, to ensure that
the handgun is unloaded.
   (IV) Remove the firearm safety device, if applicable.  If the
firearm safety device prevents any of the previous steps, remove the
firearm safety device during the appropriate step.
   (V) Load one bright orange, red, or other readily identifiable
dummy round into the magazine.  If no readily identifiable dummy
round is available, an empty cartridge casing with an empty primer
pocket may be used.
   (VI) Insert the magazine into the magazine well of the firearm.
   (VII) Manipulate the slide release or pull back and release the
slide.
   (VIII) Remove the magazine.
   (IX) Visually inspect the chamber to reveal that a round can be
chambered with the magazine removed.
   (X) Lock the slide back to eject the bright orange, red, or other
readily identifiable dummy round.  If the handgun is of a model that
does not allow the slide to be locked back, pull the slide back and
physically check the chamber to ensure that the chamber is clear.  If
no readily identifiable dummy round is available, an empty cartridge
casing with an empty primer pocket may be used.
   (XI) Apply the safety, if applicable.
   (XII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (ii) If the handgun is a double-action revolver:
   (I) Open the cylinder.
   (II) Visually and physically inspect each chamber, to ensure that
the revolver is unloaded.
   (III) Remove the firearm safety device.  If the firearm safety
device prevents any of the previous steps, remove the firearm safety
device during the appropriate step.
   (IV) While maintaining muzzle awareness and trigger discipline,
load one bright orange, red, or other readily identifiable dummy
round into a chamber of the cylinder and rotate the cylinder so that
the round is in the next-to-fire position.  If no readily
identifiable dummy round is available, an empty cartridge casing with
an empty primer pocket may be used.
   (V) Close the cylinder.
   (VI) Open the cylinder and eject the round.
   (VII) Visually and physically inspect each chamber to ensure that
the revolver is unloaded.
   (VIII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (iii) If the handgun is a single-action revolver:
   (I) Open the loading gate.
   (II) Visually and physically inspect each chamber, to ensure that
the revolver is unloaded.
   (III) Remove the firearm safety device required to be sold with
the handgun.  If the firearm safety device prevents any of the
previous steps, remove the firearm safety device during the
appropriate step.
   (IV) Load one bright orange, red, or other readily identifiable
dummy round into a chamber of the cylinder, close the loading gate
and rotate the cylinder so that the round is in the next-to-fire
position.  If no readily identifiable dummy round is available, an
empty cartridge casing with an empty primer pocket may be used.
   (V) Open the loading gate and unload the revolver.
   (VI) Visually and physically inspect each chamber to ensure that
the revolver is unloaded.
   (VII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (E) The recipient shall receive instruction regarding how to
render that handgun safe in the event of a jam.
   (F) The firearms dealer shall sign and date an affidavit stating
that the requirements of subparagraph (D) have been met.  The
firearms dealer shall additionally obtain the signature of the
handgun purchaser on the same affidavit.  The firearms dealer shall
retain the original affidavit as proof of compliance with this
requirement.
   (G) The recipient shall perform the safe handling demonstration
for a department certified instructor.
   (H) No demonstration shall be required if the dealer is returning
the handgun to the owner of the handgun.
   (I) Department certified instructors who may administer the safe
handling demonstration shall meet the requirements set forth in
subdivision (j) of Section 12804.
   (J) The persons who are exempt from the requirements of
subdivision (b) of Section 12801, pursuant to Section 12807, are also
exempt from performing the safe handling demonstration.
   (9) Commencing July 1, 1992, the licensee shall offer to provide
the purchaser or transferee of a firearm, or person being loaned a
firearm, with a copy of the pamphlet described in Section 12080 and
may add the cost of the pamphlet, if any, to the sales price of the
firearm.
   (10) The licensee shall not commit an act of collusion as defined
in Section 12072.
   (11) The licensee shall post conspicuously within the licensed
premises a detailed list of each of the following:
   (A) All charges required by governmental agencies for processing
firearm transfers required by Sections 12076, 12082, and 12806.
   (B) All fees that the licensee charges pursuant to Sections 12082
and 12806.
   (12) The licensee shall not misstate the amount of fees charged by
a governmental agency pursuant to Sections 12076, 12082, and 12806.

   (13) The licensee shall report the loss or theft of any firearm
that is merchandise of the licensee, any firearm that the licensee
takes possession of pursuant to Section 12082, or any firearm kept at
the licensee's place of business within 48 hours of discovery to the
appropriate law enforcement agency in the city, county, or city and
county where the licensee's business premises are located.
   (14) Any time when the licensee is not open for business, the
licensee shall store all firearms kept in his or her licensed place
of business using one of the following methods as to each particular
firearm:
   (A) Store the firearm in a secure facility that is a part of, or
that constitutes, the licensee's business premises.
   (B) Secure the firearm with a hardened steel rod or cable of at
least one-eighth inch in diameter through the trigger guard of the
firearm.  The steel rod or cable shall be secured with a hardened
steel lock that has a shackle.  The lock and shackle shall be
protected or shielded from the use of a bolt cutter and the rod or
cable shall be anchored in a manner that prevents the removal of the
firearm from the premises.
   (C) Store the firearm in a locked fireproof safe or vault in the
licensee's business premises.
   (15) The licensing authority in an unincorporated area of a county
or within a city may impose security requirements that are more
strict or are at a higher standard than those specified in paragraph
(14).
   (16) Commencing January 1, 1994, the licensee shall, upon the
issuance or renewal of a license, submit a copy of the same to the
Department of Justice.
   (17) The licensee shall maintain and make available for inspection
during business hours to any peace officer, authorized local law
enforcement employee, or Department of Justice employee designated by
the Attorney General, upon the presentation of proper
identification, a firearms transaction record.
   (18) (A) On the date of receipt, the licensee shall report to the
Department of Justice in a format prescribed by the department the
acquisition by the licensee of the ownership of a handgun.
   (B) The provisions of this paragraph shall not apply to any of the
following transactions:
   (i) A transaction subject to the provisions of subdivision (n) of
Section 12078.
   (ii) The dealer acquired the firearm from a wholesaler.
   (iii) The dealer is also licensed as a secondhand dealer pursuant
to Article 4 (commencing with Section 21625) of Chapter 9 of Division
8 of the Business and Professions Code.
   (iv) The dealer acquired the firearm from a person who is licensed
as a manufacturer or importer to engage in those activities pursuant
to Chapter 44 (commencing with Section 921) of Title 18 of the
United States Code and any regulations issued pursuant thereto.
   (v) The dealer acquired the firearm from a person who resides
outside this state who is licensed pursuant to Chapter 44 (commencing
with Section 921) of Title 18 of the United States Code and any
regulations issued pursuant thereto.
   (19) The licensee shall forward in a format prescribed by the
Department of Justice, information as required by the department on
any firearm that is not delivered within the time period set forth in
Section 478.102(c) of Title 27 of the Code of Federal Regulations.
   (20) (A) Firearms dealers may require any agent who handles,
sells, or delivers firearms to obtain and provide to the dealer a
certificate of eligibility from the department pursuant to paragraph
(4) of subdivision (a).  The agent or employee shall provide on the
application, the name and California firearms dealer number of the
firearms dealer with whom he or she is employed.
   (B) The department shall notify the firearms dealer in the event
that the agent or employee who has a certificate of eligibility is or
becomes prohibited from possessing firearms.
   (C) If the local jurisdiction requires a background check of the
agents or employees of the firearms dealer, the agent or employee
shall obtain a certificate of eligibility pursuant to subparagraph
(A).
   (D) Nothing in this paragraph shall be construed to preclude a
local jurisdiction from conducting an additional background check
pursuant to Section 11105 or prohibiting employment based on criminal
history that does not appear as part of obtaining a certificate of
eligibility, provided however, that the local jurisdiction may not
charge a fee for the additional criminal history check.
   (E) The licensee shall prohibit any agent who the licensee knows
or reasonably should know is within a class of persons prohibited
from possessing firearms pursuant to Section 12021 or 12021.1 of this
code, or Section 8100 or 8103 of the Welfare and Institutions Code,
from coming into contact with any firearm that is not secured and
from accessing any key, combination, code, or other means to open any
of the locking devices described in clause (ii) of subparagraph (G)
of this paragraph.
   (F) Nothing in this paragraph shall be construed as preventing a
local government from enacting an ordinance imposing additional
conditions on licensees with regard to agents.
   (G) For purposes of this section, the following definitions shall
apply:
   (i) An "agent" is an employee of the licensee.
   (ii) "Secured" means a firearm that is made inoperable in one or
more of the following ways:
   (I) The firearm is inoperable because it is secured by a firearms
safety device listed on the department's roster of approved firearms
safety devices pursuant to subdivision (d) of Section 12088 of this
chapter.
   (II) The firearm is stored in a locked gun safe or long-gun safe
which meets the standards for department-approved gun safes set forth
in Section 12088.2.
   (III) The firearm is stored in a distinct locked room or area in
the building that is used to store firearms that can only be unlocked
by a key, a combination, or similar means.
   (IV) The firearm is secured with a hardened steel rod or cable
that is at least one-eighth of an inch in diameter through the
trigger guard of the firearm.  The steel rod or cable shall be
secured with a hardened steel lock that has a shackle.  The lock and
shackle shall be protected or shielded from the use of a bolt cutter
and the rod or cable shall be anchored in a manner that prevents the
removal of the firearm from the premises.
   (c) (1) As used in this article, "clear evidence of his or her
identity and age" means either of the following:
   (A) A valid California driver's license.
   (B) A valid California identification card issued by the
Department of Motor Vehicles.
   (2) As used in this section, a "secure facility" means a building
that meets all of the following specifications:
   (A) All perimeter doorways shall meet one of the following:
   (i) A windowless steel security door equipped with both a dead
bolt and a doorknob lock.
   (ii) A windowed metal door that is equipped with both a dead bolt
and a doorknob lock.  If the window has an opening of five inches or
more measured in any direction, the window shall be covered with
steel bars of at least one-half inch diameter or metal grating of at
least nine gauge affixed to the exterior or interior of the door.
   (iii) A metal grate that is padlocked and affixed to the licensee'
s premises independent of the door and doorframe.
   (B) All windows are covered with steel bars.
   (C) Heating, ventilating, air-conditioning, and service openings
are secured with steel bars, metal grating, or an alarm system.
   (D) Any metal grates have spaces no larger than six inches wide
measured in any direction.
   (E) Any metal screens have spaces no larger than three inches wide
measured in any direction.
   (F) All steel bars shall be no further than six inches apart.
   (3) As used in this section, "licensed premises," "licensed place
of business," "licensee's place of business," or "licensee's business
premises" means the building designated in the license.
   (4) For purposes of paragraph (17) of subdivision (b):
   (A) A "firearms transaction record" is a record containing the
same information referred to in subdivision (a) of Section 478.124,
Section 478.124a, and subdivision (e) of Section 478.125 of Title 27
of the Code of Federal Regulations, or their successors.
   (B) A licensee shall be in compliance with the provisions of
paragraph (17) of subdivision (b) if he or she maintains and makes
available for inspection during business hours to any peace officer,
authorized local law enforcement employee, or Department of Justice
employee designated by the Attorney General, upon the presentation of
proper identification, the bound book containing the same
information referred to in Section 478.124a and subdivision (e) of
Section 478.125 of Title 27 of the Code of Federal Regulations, or
their successors, and the records referred to in subdivision (a) of
Section 478.124 of Title 27 of the Code of Federal Regulations, or
its successor.
   (d) Upon written request from a licensee, the licensing authority
may grant an exemption from compliance with the requirements of
paragraph (14) of subdivision (b) if the licensee is unable to comply
with those requirements because of local ordinances, covenants,
lease conditions, or similar circumstances not under the control of
the licensee.
   (e) (1) Except as otherwise provided in this paragraph, the
Department of Justice shall keep a centralized list of all persons
licensed pursuant to subparagraphs (A) to (E), inclusive, of
paragraph (1) of subdivision (a), and all persons
                        who have submitted information pursuant to
subdivision (a) of Section 12083.  The department may remove from
this list any person who knowingly or with gross negligence violates
this article.  Upon removal of a dealer from this list, notification
shall be provided to local law enforcement and licensing authorities
in the jurisdiction where the dealer's business is located.
   (2) The department shall remove from the centralized list any
person whose federal firearms license has expired or has been
revoked.
   (3) Information compiled from the list shall be made available,
upon request, for the following purposes only:
   (A) For law enforcement purposes.
   (B) When the information is requested by a person licensed
pursuant to Chapter 44 (commencing with Section 921) of Title 18 of
the United States Code for determining the validity of the license
for firearm shipments.
   (C) When information is requested by a person promoting,
sponsoring, operating, or otherwise organizing a show or event as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, who possesses a valid certificate of
eligibility issued pursuant to Section 12071.1, if that information
is requested by the person to determine the eligibility of a
prospective participant in a gun show or event to conduct
transactions as a firearms dealer pursuant to subparagraph (B) of
paragraph (1) of subdivision (b).
   (4) Information provided pursuant to paragraph (3) shall be
limited to information necessary to corroborate an individual's
current license status as being one of the following:
   (A) A person licensed pursuant to subparagraphs (A) to (E),
inclusive, of paragraph (1) of subdivision (a).
   (B) A person licensed pursuant to Chapter 44 (commencing with
Section 921) of Title 18 of the United States Code and who is not
subject to the requirement that he or she be licensed pursuant to
subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision
(a).
   (f) The Department of Justice may inspect dealers to ensure
compliance with this article.  The department may assess an annual
fee, not to exceed one hundred fifteen dollars ($115), to cover the
reasonable cost of maintaining the list described in subdivision (e),
including the cost of inspections.  Dealers whose place of business
is in a jurisdiction that has adopted an inspection program to ensure
compliance with firearms law shall be exempt from that portion of
the department's fee that relates to the cost of inspections.  The
applicant is responsible for providing evidence to the department
that the jurisdiction in which the business is located has the
inspection program.
   (g) The Department of Justice shall maintain and make available
upon request information concerning the number of inspections
conducted and the amount of fees collected pursuant to subdivision
(f), a listing of exempted jurisdictions, as defined in subdivision
(f), the number of dealers removed from the centralized list defined
in subdivision (e), and the number of dealers found to have violated
this article with knowledge or gross negligence.
   (h) Paragraph (14) or (15) of subdivision (b) shall not apply to a
licensee organized as a nonprofit public benefit or mutual benefit
corporation organized pursuant to Part 2 (commencing with Section
5110) or Part 3 (commencing with Section 7110) of Division 2 of the
Corporations Code, if both of the following conditions are satisfied:

   (1) The nonprofit public benefit or mutual benefit corporation
obtained the dealer's license solely and exclusively to assist that
corporation or local chapters of that corporation in conducting
auctions or similar events at which firearms are auctioned off to
fund the activities of that corporation or the local chapters of the
corporation.
   (2) The firearms are not handguns.
   (i) (1) For every verification inquiry made pursuant to paragraph
(1) of subdivision (f) of Section 12072, the department shall
determine whether the intended recipient possesses an appropriate,
valid license issued pursuant to Chapter 44 (commencing with Section
921) of Title 18 of the United States Code and, if applicable, is
properly licensed pursuant to this section.
   (2) If the intended recipient possesses an appropriate, valid
license issued pursuant to Chapter 44 (commencing with Section 921)
of Title 18 of the United States Code, and if applicable, is properly
licensed pursuant to this section, the department shall immediately
provide a unique verification number to the inquiring party.
   (3) If the intended recipient does not possess an appropriate,
valid license issued pursuant to Chapter 44 (commencing with Section
921) of Title 18 of the United States Code, or if applicable, is not
properly licensed pursuant to this section, the department shall do
all of the following:
   (A) Immediately notify the inquiring party of that fact.
   (B) Within 24 hours, notify the chief law enforcement officer of
the jurisdiction where the address on the federal firearms license
about which the inquiry was made is located, and notify an
appropriate employee of the federal Bureau of Alcohol, Tobacco and
Firearms of the denied verification.
  SEC. 1.5.  Section 12071 of the Penal Code is amended to read:
   12071.  (a) (1) As used in this chapter, the term "licensee,"
"person licensed pursuant to Section 12071," or "dealer" means a
person who has all of the following:
   (A) A valid federal firearms license.
   (B) Any regulatory or business license, or licenses, required by
local government.
   (C) A valid seller's permit issued by the State Board of
Equalization.
   (D) A certificate of eligibility issued by the Department of
Justice pursuant to paragraph (4).
   (E) A license issued in the format prescribed by paragraph (6).
   (F) Is among those recorded in the centralized list specified in
subdivision (e).
   (2) The duly constituted licensing authority of a city, county, or
a city and county shall accept applications for, and may grant
licenses permitting, licensees to sell firearms at retail within the
city, county, or city and county.  The duly constituted licensing
authority shall inform applicants who are denied licenses of the
reasons for the denial in writing.
   (3) No license shall be granted to any applicant who fails to
provide a copy of his or her valid federal firearms license, valid
seller's permit issued by the State Board of Equalization, and the
certificate of eligibility described in paragraph (4).
   (4) A person may request a certificate of eligibility from the
Department of Justice and the Department of Justice shall issue a
certificate to an applicant if the department's records indicate that
the applicant is not a person who is prohibited from possessing
firearms.
   (5) The department shall adopt regulations to administer the
certificate of eligibility program and shall recover the full costs
of administering the program by imposing fees assessed to applicants
who apply for those certificates.
   (6) A license granted by the duly constituted licensing authority
of any city, county, or city and county, shall be valid for not more
than one year from the date of issuance and shall be in one of the
following forms:
   (A) In the form prescribed by the Attorney General.
   (B) A regulatory or business license that states on its face
"Valid for Retail Sales of Firearms" and is endorsed by the signature
of the issuing authority.
   (C) A letter from the duly constituted licensing authority having
primary jurisdiction for the applicant's intended business location
stating that the jurisdiction does not require any form of regulatory
or business license or does not otherwise restrict or regulate the
sale of firearms.
   (7) Local licensing authorities may assess fees to recover their
full costs of processing applications for licenses.
   (b) A license is subject to forfeiture for a breach of any of the
following prohibitions and requirements:
   (1) (A) Except as provided in subparagraphs (B) and (C), the
business shall be conducted only in the buildings designated in the
license.
   (B) A person licensed pursuant to subdivision (a) may take
possession of firearms and commence preparation of registers for the
sale, delivery, or transfer of firearms at gun shows or events, as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, if the gun show or event is not
conducted from any motorized or towed vehicle.  A person conducting
business pursuant to this subparagraph shall be entitled to conduct
business as authorized herein at any gun show or event in the state
without regard to the jurisdiction within this state that issued the
license pursuant to subdivision (a), provided the person complies
with (i) all applicable laws, including, but not limited to, the
waiting period specified in subparagraph (A) of paragraph (3), and
(ii) all applicable local laws, regulations, and fees, if any.
   A person conducting business pursuant to this subparagraph shall
publicly display his or her license issued pursuant to subdivision
(a), or a facsimile thereof, at any gun show or event, as specified
in this subparagraph.
   (C) A person licensed pursuant to subdivision (a) may engage in
the sale and transfer of firearms other than handguns, at events
specified in subdivision (g) of Section 12078, subject to the
prohibitions and restrictions contained in that subdivision.
   A person licensed pursuant to subdivision (a) also may accept
delivery of firearms other than handguns, outside the building
designated in the license, provided the firearm is being donated for
the purpose of sale or transfer at an auction or similar event
specified in subdivision (g) of Section 12078.
   (D) The firearm may be delivered to the purchaser, transferee, or
person being loaned the firearm at one of the following places:
   (i) The building designated in the license.
   (ii) The places specified in subparagraph (B) or (C).
   (iii) The place of residence of, the fixed place of business of,
or on private property owned or lawfully possessed by, the purchaser,
transferee, or person being loaned the firearm.
   (2) The license or a copy thereof, certified by the issuing
authority, shall be displayed on the premises where it can easily be
seen.
   (3) No firearm shall be delivered:
   (A) Within 10 days of the application to purchase, or, after
notice by the department pursuant to subdivision (d) of Section
12076, within 10 days of the submission to the department of any
correction to the application, or within 10 days of the submission to
the department of any fee required pursuant to subdivision (e) of
Section 12076, whichever is later.
   (B) Unless unloaded and securely wrapped or unloaded and in a
locked container.
   (C) Unless the purchaser, transferee, or person being loaned the
firearm presents clear evidence of his or her identity and age to the
dealer.
   (D) Whenever the dealer is notified by the Department of Justice
that the person is in a prohibited class described in Section 12021
or 12021.1 of this code or Section 8100 or 8103 of the Welfare and
Institutions Code.  The dealer shall make available to the person in
the prohibited class a prohibited notice and transfer form, provided
by the department, stating that the person is prohibited from owning
or possessing a firearm, and that the person may obtain from the
department the reason for the prohibition.
   (4) No handgun or imitation handgun, or placard advertising the
sale or other transfer thereof, shall be displayed in any part of the
premises where it can readily be seen from the outside.
   (5) The licensee shall agree to and shall act properly and
promptly in processing firearms transactions pursuant to Section
12082.
   (6) The licensee shall comply with Sections 12073, 12076, and
12077, subdivisions (a) and (b) and paragraph (1) of subdivision (f)
of Section 12072, subdivision (a) of Section 12316 and Section 12326.

   (7) The licensee shall post conspicuously within the licensed
premises the following warnings in block letters not less than one
inch in height:
   (A) "IF YOU KEEP A LOADED FIREARM WITHIN ANY PREMISES UNDER YOUR
CUSTODY OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE OBTAINS IT OR
USES IT, RESULTING IN INJURY OR DEATH, OR CARRIES IT TO A PUBLIC
PLACE, YOU MAY BE GUILTY OF A MISDEMEANOR OR A FELONY UNLESS YOU
STORED THE FIREARM IN A LOCKED CONTAINER, STORED THE FIREARM UNLOADED
AND NOT IN PROXIMITY TO AMMUNITION FOR THAT FIREARM IN A LOCATION
THAT A REASONABLE PERSON WOULD BELIEVE TO BE SECURE, OR LOCKED THE
FIREARM WITH A LOCKING DEVICE, TO KEEP IT FROM TEMPORARILY
FUNCTIONING."
   (B) "IF YOU KEEP A HANDGUN, WITHIN ANY PREMISES UNDER YOUR CUSTODY
OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE GAINS ACCESS TO THE
FIREARM, OR A PERSON UNDER THE AGE OF 18 YEARS OF AGE GAINS ACCESS TO
THE FIREARM AND CARRIES IT OFF-PREMISES, YOU MAY BE GUILTY OF A
MISDEMEANOR, UNLESS YOU STORED THE FIREARM IN A LOCKED CONTAINER, OR
LOCKED THE FIREARM WITH A LOCKING DEVICE, TO KEEP IT FROM TEMPORARILY
FUNCTIONING."
   (C) "IF YOU KEEP ANY FIREARM WITHIN ANY PREMISES UNDER YOUR
CUSTODY OR CONTROL, AND A PERSON UNDER 18 YEARS OF AGE GAINS ACCESS
TO THE FIREARM, AND CARRIES IT OFF-PREMISES TO A SCHOOL OR
SCHOOL-SPONSORED EVENT, YOU MAY BE GUILTY OF A MISDEMEANOR, INCLUDING
A FINE OF UP TO FIVE THOUSAND DOLLARS ($5,000), UNLESS YOU STORED
THE FIREARM IN A LOCKED CONTAINER, OR LOCKED THE FIREARM WITH A
LOCKING DEVICE."
   (D) "DISCHARGING FIREARMS IN POORLY VENTILATED AREAS, CLEANING
FIREARMS, OR HANDLING AMMUNITION MAY RESULT IN EXPOSURE TO LEAD, A
SUBSTANCE KNOWN TO CAUSE BIRTH DEFECTS, REPRODUCTIVE HARM, AND OTHER
SERIOUS PHYSICAL INJURY.  HAVE ADEQUATE VENTILATION AT ALL TIMES.
WASH HANDS THOROUGHLY AFTER EXPOSURE."
   (E) "FEDERAL REGULATIONS PROVIDE THAT IF YOU DO NOT TAKE PHYSICAL
POSSESSION OF THE FIREARM THAT YOU ARE ACQUIRING OWNERSHIP OF WITHIN
30 DAYS AFTER YOU COMPLETE THE INITIAL BACKGROUND CHECK PAPERWORK,
THEN YOU HAVE TO GO THROUGH THE BACKGROUND CHECK PROCESS A SECOND
TIME IN ORDER TO TAKE PHYSICAL POSSESSION OF THAT FIREARM."
   (F) "NO PERSON SHALL MAKE AN APPLICATION TO PURCHASE MORE THAN ONE
HANDGUN WITHIN ANY 30-DAY PERIOD AND NO DELIVERY SHALL BE MADE TO
ANY PERSON WHO HAS MADE AN APPLICATION TO PURCHASE MORE THAN ONE
HANDGUN WITHIN ANY 30-DAY PERIOD."
   (8) (A) Commencing April 1, 1994, and until January 1, 2003, no
handgun shall be delivered unless the purchaser, transferee, or
person being loaned the firearm presents to the dealer a basic
firearms safety certificate.
   (B) Commencing January 1, 2003, no dealer may deliver a handgun
unless the person receiving the handgun presents to the dealer a
valid handgun safety certificate.  The firearms dealer shall retain a
photocopy of the handgun safety certificate as proof of compliance
with this requirement.
   (C) Commencing January 1, 2003, no handgun may be delivered unless
the purchaser, transferee, or person being loaned the firearm
presents documentation indicating that he or she is a California
resident.  Satisfactory documentation shall include a utility bill
from within the last three months, a residential lease, a property
deed, or military permanent duty station orders indicating assignment
within this state, or other evidence of residency as permitted by
the Department of Justice.  The firearms dealer shall retain a
photocopy of the documentation as proof of compliance with this
requirement.
   (D) Commencing January 1, 2003, except as authorized by the
department, no firearms dealer may deliver a handgun unless the
recipient performs a safe handling demonstration with that handgun.
The demonstration shall commence with the handgun unloaded and locked
with the firearm safety device with which it is required to be
delivered, if applicable.  While maintaining muzzle awareness, that
is, the firearm is pointed in a safe direction, preferably down at
the ground, and trigger discipline, that is, the trigger finger is
outside of the trigger guard and along side of the handgun frame, at
all times, the handgun recipient shall correctly and safely perform
the following:
   (i) If the handgun is a semiautomatic pistol:
   (I) Remove the magazine.
   (II) Lock the slide back.  If the model of firearm does not allow
the slide to be locked back, pull the slide back, visually and
physically check the chamber to ensure that it is clear.
   (III) Visually and physically inspect the chamber, to ensure that
the handgun is unloaded.
   (IV) Remove the firearm safety device, if applicable.  If the
firearm safety device prevents any of the previous steps, remove the
firearm safety device during the appropriate step.
   (V) Load one bright orange, red, or other readily identifiable
dummy round into the magazine.  If no readily identifiable dummy
round is available, an empty cartridge casing with an empty primer
pocket may be used.
   (VI) Insert the magazine into the magazine well of the firearm.
   (VII) Manipulate the slide release or pull back and release the
slide.
   (VIII) Remove the magazine.
   (IX) Visually inspect the chamber to reveal that a round can be
chambered with the magazine removed.
   (X) Lock the slide back to eject the bright orange, red, or other
readily identifiable dummy round.  If the handgun is of a model that
does not allow the slide to be locked back, pull the slide back and
physically check the chamber to ensure that the chamber is clear.  If
no readily identifiable dummy round is available, an empty cartridge
casing with an empty primer pocket may be used.
   (XI) Apply the safety, if applicable.
   (XII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (ii) If the handgun is a double-action revolver:
   (I) Open the cylinder.
   (II) Visually and physically inspect each chamber, to ensure that
the revolver is unloaded.
   (III) Remove the firearm safety device.  If the firearm safety
device prevents any of the previous steps, remove the firearm safety
device during the appropriate step.
   (IV) While maintaining muzzle awareness and trigger discipline,
load one bright orange, red, or other readily identifiable dummy
round into a chamber of the cylinder and rotate the cylinder so that
the round is in the next-to-fire position.  If no readily
identifiable dummy round is available, an empty cartridge casing with
an empty primer pocket may be used.
   (V) Close the cylinder.
   (VI) Open the cylinder and eject the round.
   (VII) Visually and physically inspect each chamber to ensure that
the revolver is unloaded.
   (VIII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (iii) If the handgun is a single-action revolver:
   (I) Open the loading gate.
   (II) Visually and physically inspect each chamber, to ensure that
the revolver is unloaded.
   (III) Remove the firearm safety device required to be sold with
the handgun.  If the firearm safety device prevents any of the
previous steps, remove the firearm safety device during the
appropriate step.
   (IV) Load one bright orange, red, or other readily identifiable
dummy round into a chamber of the cylinder, close the loading gate
and rotate the cylinder so that the round is in the next-to-fire
position.  If no readily identifiable dummy round is available, an
empty cartridge casing with an empty primer pocket may be used.
   (V) Open the loading gate and unload the revolver.
   (VI) Visually and physically inspect each chamber to ensure that
the revolver is unloaded.
   (VII) Apply the firearm safety device, if applicable.  This
requirement shall not apply to an Olympic competition pistol if no
firearms safety device, other than a cable lock that the department
has determined would damage the barrel of the pistol, has been
approved for the pistol, and the pistol is either listed in paragraph
(2) of subdivision (h) of Section 12132 or is subject to paragraph
(3) of subdivision (h) of Section 12132.
   (E) The recipient shall receive instruction regarding how to
render that handgun safe in the event of a jam.
   (F) The firearms dealer shall sign and date an affidavit stating
that the requirements of subparagraph (D) have been met.  The
firearms dealer shall additionally obtain the signature of the
handgun purchaser on the same affidavit.  The firearms dealer shall
retain the original affidavit as proof of compliance with this
requirement.
   (G) The recipient shall perform the safe handling demonstration
for a department certified instructor.
   (H) No demonstration shall be required if the dealer is returning
the handgun to the owner of the handgun.
   (I) Department certified instructors who may administer the safe
handling demonstration shall meet the requirements set forth in
subdivision (j) of Section 12804.
   (J) The persons who are exempt from the requirements of
subdivision (b) of Section 12801, pursuant to Section 12807, are also
exempt from performing the safe handling demonstration.
   (9) Commencing July 1, 1992, the licensee shall offer to provide
the purchaser or transferee of a firearm, or person being loaned a
firearm, with a copy of the pamphlet described in Section 12080 and
may add the cost of the pamphlet, if any, to the sales price of the
firearm.
   (10) The licensee shall not commit an act of collusion as defined
in Section 12072.
   (11) The licensee shall post conspicuously within the licensed
premises a detailed list of each of the following:
   (A) All charges required by governmental agencies for processing
firearm transfers required by Sections 12076, 12082, and 12806.
   (B) All fees that the licensee charges pursuant to Sections 12082
and 12806.
   (12) The licensee shall not misstate the amount of fees charged by
a governmental agency pursuant to Sections 12076, 12082, and 12806.

   (13) The licensee shall report the loss or theft of any firearm
that is merchandise of the licensee, any firearm that the licensee
takes possession of pursuant to Section 12082, or any firearm kept at
the licensee's place of business within 48 hours of discovery to the
appropriate law enforcement agency in the city, county, or city and
county where the licensee's business premises are located.
   (14) Any time when the licensee is not open for business, the
licensee shall store all firearms kept in his or her licensed place
of business using one of the following methods as to each particular
firearm:
   (A) Store the firearm in a secure facility that is a part of, or
that constitutes, the licensee's business premises.
   (B) Secure the firearm with a hardened steel rod or cable of at
least one-eighth inch in diameter through the trigger guard of the
firearm.  The steel rod or cable shall be secured with a hardened
steel lock that has a shackle.  The lock and shackle shall be
protected or shielded from the use of a bolt cutter and the rod or
cable shall be anchored in a manner that prevents the removal of the
firearm from the premises.
   (C) Store the firearm in a locked fireproof safe or vault in the
licensee's business premises.
   (15) The licensing authority in an unincorporated area of a county
or within a city may impose security requirements that are more
strict or are at a higher standard than those specified in paragraph
(14).
   (16) Commencing January 1, 1994, the licensee shall, upon the
issuance or renewal of a license, submit a copy of the same to the
Department of Justice.
   (17) The licensee shall maintain and make available for inspection
during business hours to any peace officer, authorized local law
enforcement employee, or Department of Justice employee designated by
the Attorney General, upon the presentation of proper
identification, a firearms transaction record.
   (18) (A) On the date of receipt, the licensee shall report to the
Department of Justice in a format prescribed by the department the
acquisition by the licensee of the ownership of a handgun.
   (B) The provisions of this paragraph shall not apply to any of the
following transactions:
   (i) A transaction subject to the provisions of subdivision (n) of
Section 12078.
   (ii) The dealer acquired the firearm from a wholesaler.
   (iii) The dealer is also licensed as a secondhand dealer pursuant
to Article 4 (commencing with Section 21625) of Chapter 9 of Division
8 of the Business and Professions Code.
   (iv) The dealer acquired the firearm from a person who is licensed
as a manufacturer or importer to engage in those activities pursuant
to Chapter 44 (commencing with Section 921) of Title 18 of the
United States Code and any regulations issued pursuant thereto.
   (v) The dealer acquired the firearm from a person who resides
outside this state who is licensed pursuant to Chapter 44 (commencing
with Section 921) of Title 18 of the United States Code and any
regulations issued pursuant thereto.
   (19) The licensee shall forward in a format prescribed by the
Department of Justice, information as required by the department on
any firearm that is not delivered within the time period set forth in
Section 478.102(c) of Title 27 of the Code of Federal Regulations.
   (20) (A) Firearms dealers may require any agent who handles,
sells, or delivers firearms to obtain and provide to the dealer a
certificate of eligibility from the department pursuant to paragraph
(4) of subdivision (a).  The agent or employee shall provide on the
application, the name and California firearms dealer number of the
firearms dealer with whom he or she is employed.
   (B) The department shall notify the firearms dealer in the event
that the agent or employee who has a certificate of eligibility is or
becomes prohibited from possessing firearms.
   (C) If the local jurisdiction requires a background check of the
agents or employees of the firearms dealer, the agent or employee
shall obtain a certificate of eligibility pursuant to subparagraph
(A).
                                (D) Nothing in this paragraph shall
be construed to preclude a local jurisdiction from conducting an
additional background check pursuant to Section 11105 or prohibiting
employment based on criminal history that does not appear as part of
obtaining a certificate of eligibility, provided however, that the
local jurisdiction may not charge a fee for the additional criminal
history check.
   (E) The licensee shall prohibit any agent who the licensee knows
or reasonably should know is within a class of persons prohibited
from possessing firearms pursuant to Section 12021 or 12021.1 of this
code, or Section 8100 or 8103 of the Welfare and Institutions Code,
from coming into contact with any firearm that is not secured and
from accessing any key, combination, code, or other means to open any
of the locking devices described in clause (ii) of subparagraph (G)
of this paragraph.
   (F) Nothing in this paragraph shall be construed as preventing a
local government from enacting an ordinance imposing additional
conditions on licensees with regard to agents.
   (G) For purposes of this section, the following definitions shall
apply:
   (i) An "agent" is an employee of the licensee.
   (ii) "Secured" means a firearm that is made inoperable in one or
more of the following ways:
   (I) The firearm is inoperable because it is secured by a firearms
safety device listed on the department's roster of approved firearms
safety devices pursuant to subdivision (d) of Section 12088 of this
chapter.
   (II) The firearm is stored in a locked gun safe or long-gun safe
which meets the standards for department-approved gun safes set forth
in Section 12088.2.
   (III) The firearm is stored in a distinct locked room or area in
the building that is used to store firearms that can only be unlocked
by a key, a combination, or similar means.
   (IV) The firearm is secured with a hardened steel rod or cable
that is at least one-eighth of an inch in diameter through the
trigger guard of the firearm.  The steel rod or cable shall be
secured with a hardened steel lock that has a shackle.  The lock and
shackle shall be protected or shielded from the use of a bolt cutter
and the rod or cable shall be anchored in a manner that prevents the
removal of the firearm from the premises.
   (c) (1) As used in this article, "clear evidence of his or her
identity and age" means either of the following:
   (A) A valid California driver's license.
   (B) A valid California identification card issued by the
Department of Motor Vehicles.
   (2) As used in this section, a "secure facility" means a building
that meets all of the following specifications:
   (A) All perimeter doorways shall meet one of the following:
   (i) A windowless steel security door equipped with both a dead
bolt and a doorknob lock.
   (ii) A windowed metal door that is equipped with both a dead bolt
and a doorknob lock.  If the window has an opening of five inches or
more measured in any direction, the window shall be covered with
steel bars of at least one-half inch diameter or metal grating of at
least nine gauge affixed to the exterior or interior of the door.
   (iii) A metal grate that is padlocked and affixed to the licensee'
s premises independent of the door and doorframe.
   (B) All windows are covered with steel bars.
   (C) Heating, ventilating, air-conditioning, and service openings
are secured with steel bars, metal grating, or an alarm system.
   (D) Any metal grates have spaces no larger than six inches wide
measured in any direction.
   (E) Any metal screens have spaces no larger than three inches wide
measured in any direction.
   (F) All steel bars shall be no further than six inches apart.
   (3) As used in this section, "licensed premises," "licensed place
of business," "licensee's place of business," or "licensee's business
premises" means the building designated in the license.
   (4) For purposes of paragraph (17) of subdivision (b):
   (A) A "firearms transaction record" is a record containing the
same information referred to in subdivision (a) of Section 478.124,
Section 478.124a, and subdivision (e) of Section 478.125 of Title 27
of the Code of Federal Regulations, or their successors.
   (B) A licensee shall be in compliance with the provisions of
paragraph (17) of subdivision (b) if he or she maintains and makes
available for inspection during business hours to any peace officer,
authorized local law enforcement employee, or Department of Justice
employee designated by the Attorney General, upon the presentation of
proper identification, the bound book containing the same
information referred to in Section 478.124a and subdivision (e) of
Section 478.125 of Title 27 of the Code of Federal Regulations, or
their successors, and the records referred to in subdivision (a) of
Section 478.124 of Title 27 of the Code of Federal Regulations, or
its successor.
   (d) Upon written request from a licensee, the licensing authority
may grant an exemption from compliance with the requirements of
paragraph (14) of subdivision (b) if the licensee is unable to comply
with those requirements because of local ordinances, covenants,
lease conditions, or similar circumstances not under the control of
the licensee.
   (e) (1) Except as otherwise provided in this paragraph, the
Department of Justice shall keep a centralized list of all persons
licensed pursuant to subparagraphs (A) to (E), inclusive, of
paragraph (1) of subdivision (a), and all persons who have submitted
information pursuant to subdivision (a) of Section 12083.  The
department may remove from this list any person who knowingly or with
gross negligence violates this article.  Upon removal of a dealer
from this list, notification shall be provided to local law
enforcement and licensing authorities in the jurisdiction where the
dealer's business is located.
   (2) The department shall remove from the centralized list any
person whose federal firearms license has expired or has been
revoked.
   (3) Information compiled from the list shall be made available,
upon request, for the following purposes only:
   (A) For law enforcement purposes.
   (B) When the information is requested by a person licensed
pursuant to Chapter 44 (commencing with Section 921) of Title 18 of
the United States Code for determining the validity of the license
for firearm shipments.
   (C) When information is requested by a person promoting,
sponsoring, operating, or otherwise organizing a show or event as
defined in Section 478.100 of Title 27 of the Code of Federal
Regulations, or its successor, who possesses a valid certificate of
eligibility issued pursuant to Section 12071.1, if that information
is requested by the person to determine the eligibility of a
prospective participant in a gun show or event to conduct
transactions as a firearms dealer pursuant to subparagraph (B) of
paragraph (1) of subdivision (b).
   (4) Information provided pursuant to paragraph (3) shall be
limited to information necessary to corroborate an individual's
current license status as being one of the following:
   (A) A person licensed pursuant to subparagraphs (A) to (E),
inclusive, of paragraph (1) of subdivision (a).
   (B) A person licensed pursuant to Chapter 44 (commencing with
Section 921) of Title 18 of the United States Code and who is not
subject to the requirement that he or she be licensed pursuant to
subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision
(a).
   (f) The Department of Justice may inspect dealers to ensure
compliance with this article.  The department may assess an annual
fee, not to exceed one hundred fifteen dollars ($115), to cover the
reasonable cost of maintaining the list described in subdivision (e),
including the cost of inspections.  Dealers whose place of business
is in a jurisdiction that has adopted an inspection program to ensure
compliance with firearms law shall be exempt from that portion of
the department's fee that relates to the cost of inspections.  The
applicant is responsible for providing evidence to the department
that the jurisdiction in which the business is located has the
inspection program.
   (g) The Department of Justice shall maintain and make available
upon request information concerning the number of inspections
conducted and the amount of fees collected pursuant to subdivision
(f), a listing of exempted jurisdictions, as defined in subdivision
(f), the number of dealers removed from the centralized list defined
in subdivision (e), and the number of dealers found to have violated
this article with knowledge or gross negligence.
   (h) Paragraph (14) or (15) of subdivision (b) shall not apply to a
licensee organized as a nonprofit public benefit or mutual benefit
corporation organized pursuant to Part 2 (commencing with Section
5110) or Part 3 (commencing with Section 7110) of Division 2 of the
Corporations Code, if both of the following conditions are satisfied:

   (1) The nonprofit public benefit or mutual benefit corporation
obtained the dealer's license solely and exclusively to assist that
corporation or local chapters of that corporation in conducting
auctions or similar events at which firearms are auctioned off to
fund the activities of that corporation or the local chapters of the
corporation.
   (2) The firearms are not handguns.
   (i) (1) For every verification inquiry made pursuant to paragraph
(1) of subdivision (f) of Section 12072, the department shall
determine whether the intended recipient possesses an appropriate,
valid license issued pursuant to Chapter 44 (commencing with Section
921) of Title 18 of the United States Code and, if applicable, is
properly licensed pursuant to this section.
   (2) If the intended recipient possesses an appropriate, valid
license issued pursuant to Chapter 44 (commencing with Section 921)
of Title 18 of the United States Code, and if applicable, is properly
licensed pursuant to this section, the department shall immediately
provide a unique verification number to the inquiring party.
   (3) If the intended recipient does not possess an appropriate,
valid license issued pursuant to Chapter 44 (commencing with Section
921) of Title 18 of the United States Code, or if applicable, is not
properly licensed pursuant to this section, the department shall do
all of the following:
   (A) Immediately notify the inquiring party of that fact.
   (B) Within 24 hours, notify the chief law enforcement officer of
the jurisdiction where the address on the federal firearms license
about which the inquiry was made is located, and notify an
appropriate employee of the federal Bureau of Alcohol, Tobacco and
Firearms of the denied verification.
  SEC. 2.  Section 12316 of the Penal Code is amended to read:
   12316.  (a) (1) Any person, corporation, or dealer who does either
of the following shall be punished by imprisonment in a county jail
for a term not to exceed six months, or by a fine not to exceed one
thousand dollars ($1,000), or by both that imprisonment and fine:
   (A) Sells any ammunition or reloaded ammunition to a person under
18 years of age.
   (B) Sells any ammunition or reloaded ammunition designed and
intended for use in a handgun to a person under 21 years of age.  As
used in this subparagraph, "ammunition" means handgun ammunition as
defined in subdivision (a) of Section 12323.  Where ammunition or
reloaded ammunition may be used in both a rifle and a handgun,
federal law shall be considered for purposes of enforcing this
subparagraph.
   (2) Proof that a person, corporation, or dealer, or his or her
agent or employee, demanded, was shown, and acted in reasonable
reliance upon, bona fide evidence of majority and identity shall be a
defense to any criminal prosecution under this subdivision.  As used
in this subdivision, "bona fide evidence of majority and identity"
means a document issued by a federal, state, county, or municipal
government, or subdivision or agency thereof, including, but not
limited to, a motor vehicle operator's license, California state
identification card, a registration certificate issued under the
federal Selective Service Act, or an identification card issued to a
member of the Armed Forces, or other form of identification that
bears the name, date of birth, description, and picture of the
person.
   (b) (1) No person prohibited from owning or possessing a firearm
under Section 12021 or 12021.1 of this code or Section 8100 or 8103
of the Welfare and Institutions Code shall own, possess, or have
under his or her custody or control, any ammunition or reloaded
ammunition.
   (2) For purposes of this subdivision, "ammunition" shall include,
but not be limited to, any bullet, cartridge, magazine, clip, speed
loader, autoloader, or projectile capable of being fired from a
firearm with a deadly consequence.
   (3) A violation of this subdivision is punishable by imprisonment
in a county jail not to exceed one year or in the state prison, by a
fine not to exceed one thousand dollars ($1,000), or by both that
fine and imprisonment.
   (c) Unless it is with the written permission of the school
district superintendent, his or her designee, or equivalent school
authority, no person shall carry ammunition or reloaded ammunition
onto school grounds, except sworn law enforcement officers acting
within the scope of their duties or persons exempted under
subparagraph (A) of paragraph (1) of subdivision (a) of Section
12027.  This subdivision shall not apply to a duly appointed peace
officer as defined in Chapter 4.5 (commencing with Section 830) of
Title 3 of Part 2, a full-time paid peace officer of another state or
the federal government who is carrying out official duties while in
California, any person summoned by any of these officers to assist in
making an arrest or preserving the peace while he or she is actually
engaged in assisting the officer, a member of the military forces of
this state or of the United States who is engaged in the performance
of his or her duties, a person holding a valid license to carry the
firearm pursuant to Article 3 (commencing with Section 12050) of
Chapter 1 of Title 2 of Part 4, or an armored vehicle guard, who is
engaged in the performance of his or her duties, as defined in
subdivision (e) of Section 7521 of the Business and Professions Code.
  A violation of this subdivision is punishable by imprisonment in a
county jail for a term not to exceed six months, a fine not to exceed
one thousand dollars ($1,000), or both that imprisonment and fine.
   (d) (1) A violation of paragraph (1) of subdivision (b) is
justifiable where all of the following conditions are met:
   (A) The person found the ammunition or reloaded ammunition or took
the ammunition or reloaded ammunition from a person who was
committing a crime against him or her.
   (B) The person possessed the ammunition or reloaded ammunition no
longer than was necessary to deliver or transport the ammunition or
reloaded ammunition to a law enforcement agency for that agency's
disposition according to law.
   (C) The person is prohibited from possessing any ammunition or
reloaded ammunition solely because that person is prohibited from
owning or possessing a firearm only by virtue of Section 12021.
   (2) Upon the trial for violating paragraph (1) of subdivision (b),
the trier of fact shall determine whether the defendant is subject
to the exemption created by this subdivision.
   (3) The defendant has the burden of proving by a preponderance of
the evidence that he or she is subject to the exemption provided by
this subdivision.
  SEC. 3.  Section 12326 is added to the Penal Code, to read:
   12326.  (a) The term "vendor," as used in this section, means any
person who is engaged, in compliance with local, state, and federal
law, in the retail sale of handgun ammunition, including any dealer.

   (b) The term "handgun ammunition" as used in this section, means
assembled live ammunition, other than .22 caliber, primarily for use
in a handgun, as "handgun" is defined in subdivision (a) of Section
12001.
   (c) No vendor shall sell or otherwise transfer ownership of any
handgun ammunition without at the time of purchase recording the
following information on a form to be prescribed by the Department of
Justice:
   (1) The date of the transaction.
   (2) The name, address, and date of birth of the transferee.
   (3) The transferee's driver's license or other identification
number and the state in which it was issued.
   (4) The brand, type, and amount of ammunition transferred.
   (5) The transferee's signature.
   (6) The name of the salesperson who processed the transaction.
   (d) The vendor shall also at the time of purchase or transfer
obtain the right thumbprint of the purchaser or transferee on the
above form, unless the purchaser or transferee presents a valid
hunting or sportsman's license issued pursuant to Section 714,
paragraphs (1) to (3), inclusive, of subdivision (a) of Section 3031,
or Section 3031.2 of the Fish and Game Code, in which case the
vendor shall record the number of the license.
   (e) (1) The records required by this section shall be maintained
on the premises of the vendor for a period of not less than two years
from the date of the recorded transfer.
   (2) The records shall be subject to inspection at any time during
normal business hours by any peace officer employed by a sheriff,
city police department, or district attorney as provided in
subdivision (a) of Section 830.1, or employed by the Department of
Justice, as provided in subdivision (b) of Section 830.1, provided
the officer is conducting an investigation where access to those
records is or may be relevant to that investigation, is seeking
information about persons prohibited from owning a firearm or
ammunition, or is engaged in ensuring compliance with the Dangerous
Weapons Control Law, Chapter 1 (commencing with Section 12000) of
Title 2 of Part 4, or any other laws pertaining to firearms.  The
records shall also be subject to inspection at any time during normal
business hours by any other employee of the Department of Justice,
provided that employee is conducting an investigation where access to
those records is or may be relevant to that investigation, is
seeking information about persons prohibited from owning a firearm or
ammunition, or is engaged in ensuring compliance with the Dangerous
Weapons Control Law, Chapter 1 (commencing with Section 12000) of
Title 2 of Part 4, or any other laws pertaining to firearms.
   (f) (1) No person shall knowingly make a false entry in, fail to
make a required entry in, or fail to obtain the required thumbprint,
or fail to maintain in the required manner records prepared in
accordance herewith.  If the right thumbprint is not available, then
the vendor shall have the purchaser or transferee use his or her left
thumb, or any available finger, and shall so indicate on the form.
If the purchaser or transferee is physically unable to provide a
thumbprint or fingerprint, the vendor shall so indicate on the form.

   (2) No person shall refuse to permit a person authorized under
paragraph (2) of subdivision (e) to examine any record prepared in
accordance with this section during any inspection conducted pursuant
to this section, or refuse to permit the use of any record or
information therefrom by those persons.
   (g) A violation of this section shall constitute a misdemeanor.
   (h) This section shall not apply to vendor wholesale sales or
wholesale transfers.  This section shall not apply to sales or
transfers to a peace officer as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2. This section shall not apply
to sales or transfers to persons licensed to carry a concealed
handgun pursuant to Section 12050.
  SEC. 4.  Section 1.5 of this bill incorporates amendments to
Section 12071 of the Penal Code proposed by both this bill and SB
1140.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2005, (2) each bill
amends Section 12071 of the Penal Code, and (3) this bill is enacted
after SB 1140, in which case Section 1 of this bill shall not become
operative.
  SEC. 5.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.