BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                         Senator Elaine K. Alquist, Chair            S
                             2005-2006 Regular Session               B

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          SB 357 (Dunn)                                               
          As Amended April 18, 2005 
          Hearing date:  April 26, 2005
          Penal Code
          SH:br



                       HANDGUN AMMUNITION SERIALIZATION PROGRAM  



                                       HISTORY



          Source:  Attorney General

          Prior Legislation: SB 1152 (Scott) - Vetoed 2004
                       AB 1717 - Chapter 271, Statutes of 2000
                       SB 683 (Watson) - 1997; held on Senate  
          Appropriations Suspense File

          Support: California Million Mom March; Brady Campaign to Prevent  
                   Gun Violence; Coalition to Stop Gun Violence; Legal  
                   Community Against Violence; Million Mom March of Sonoma  
                   County; Fresno Police Department; California Reserve  
                   Peace Officers Association; 1 individual letter

          Opposition:Sporting Arms and Ammunition Manufacturers' Institute  
                   ("SAAMI"); Gun Owners of California; The Range (Grass  
                   Valley, California); Outdoor Sportsmen's Coalition of  
                   California; The California Sportsman's Lobby, Inc.;  




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                   California Association of Firearm Retailers; Crossroads  
                   of the West Gun Shows; Safari Club International;  
                   California Rifle and Pistol Association; NRA




                                        KEY ISSUES
           
          SHOULD ALL HANDGUN AMMUNITION SOLD, TRANSFERRED, MANUFACTURED, AND  
          POSSESSED IN PUBLIC IN CALIFORNIA AFTER JULY 1, 2007, BE  
          "SERIALIZED" AS SPECIFIED BY THE DEPARTMENT OF JUSTICE?

          SHOULD THE DEPARTMENT OF JUSTICE BE REQUIRED TO CREATE "REGISTERED  
          AMMUNITION VENDOR" AND "REGISTERED AMMUNITION MANUFACTURER" PROGRAMS  
          AND REQUIREMENTS IN CALIFORNIA?

          SHOULD VIOLATIONS OF THIS BILL AND ITS NEW REQUIREMENTS BE  
          CRIMINALIZED, AS SPECIFIED?

          SHOULD A NUMBER OF RELATED ADDITIONS BE ENACTED IN LAW?


                                       PURPOSE
          
          The purpose of this bill is to (1) require that all handgun  
          ammunition sold, transferred, manufactured, and possessed in  
          public in California after July 1, 2007, be "serialized" as  
          specified by the Department of Justice; (2) create "registered  
          ammunition vendor" and "registered ammunition manufacturer"  
          programs and requirements in California; (3) criminalize  
          violations of this bill and its new requirements; and (4) make a  
          number of related additions to the law.
          
           Existing law  contains the following definitions regarding  
          "ammunition":

           "Handgun ammunition" means ammunition principally for  
            use in pistols, revolvers, and other firearms capable of  




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            being concealed upon the person, as defined,  
            notwithstanding that the ammunition may also be used in  
            some rifles.  (Penal Code  12323(a).)

           For purposes of specified prohibitions on selling and  
            possessing ammunition, "ammunition" includes, but is 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.  (Penal  
            Code  12316(b)(2).)

           Existing law  makes it a crime for persons who are prohibited  
          from possessing firearms to possess ammunition, punished as an  
          alternate misdemeanor/felony.  (Penal Code  12316(b)(1).)

           Existing law  makes it a misdemeanor for any person, corporation,  
          or licensed firearms dealer to (1) sell ammunition to a person  
          "knowing" that the person is under 18 years of age and (2) sell  
          handgun ammunition to a person "knowing" that the person is  
          under 21 years of age; 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 law; "bona fide evidence of majority and  
          identity" is defined.  (Penal Code  12316(a).)

           Existing law  requires the Department of Justice to obtain,  
          maintain, and make available to specified law enforcement and  
          others a variety of information.  (Penal Code  11106.)

           Existing law  provides that "willfully," when applied to the  
          intent with which an act is done or omitted, implies simply a  
          purpose or willingness to commit the act, or make the omission  
          referred to.  It does not require any intent to violate law, or  
          to injure another, or to acquire any advantage.  (Penal Code   
          7.)

           This bill  does the following:





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          Creates a handgun ammunition serialization program effective  
          July 1, 2007, administered by the Department of Justice (DOJ)
          
           Requires that, commencing July 1, 2007, except as provided in  
            this bill, all handgun ammunition, as defined, that is  
            manufactured, imported into the state for sale or personal  
            use, kept for sale, offered or exposed for sale, sold, given,  
            lent, or possessed shall be serialized, as specified.

           Provides that the DOJ shall enforce the requirements of the  
            handgun serialization program and shall have authority to  
            prescribe the manner in which handgun ammunition is serialized  
            in order to comply with the requirements of this bill,  
            including, but not limited to, determining how ammunition that  
            is loose, packaged, in lots, series, or otherwise aggregated  
            for purposes of manufacture or sale shall be serialized with a  
            unique identifier, as specified.

           Specifically authorizes the DOJ - effective January 1, 2006 -  
            to:

            (1)  Adopt regulations to collect end-user fees in an amount  
            not to exceed one-half of one cent per round of ammunition or  
            per bullet, where the accumulated fee amount will not exceed  
            the cost to pay for the infrastructure, implementation,  
            operational, enforcement, and future development costs of the  
            program; and,
            (2)  Adopt regulations relating to the implementation and  
            furtherance of a retail ammunition vendor's registry and the  
            assessment and collection of fees associated with the  
            registration program in an amount not to exceed fifty dollars  
            ($50) per year per retail location, adjusted annually for  
            inflation based upon the California Consumer Price Index, as  
            specified, and where the accumulated fee amount will not  
            exceed the cost to pay for the infrastructure, implementation,  
            operation, enforcement, and future development costs of this  
            bill.

           Authorizes the DOJ to adopt or amend regulations relating to  




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            this bill in an effort to incorporate new technologies as they  
            become available.

          Handgun ammunition included and definition of serialization
          
           Handgun ammunition is defined in this bill to mean:

            (A)  Ammunition principally for use in pistols,  
            revolvers, and other firearms capable of being  
            concealed upon the person, as specified,  
            notwithstanding that the ammunition may also be used in  
            some rifles - included in this bill.
            (B)  22 caliber rimfire ammunition.
            (C)  Assembled handgun ammunition packaged for retail  
            sale.
            (D)  Bullets used for reloading or handloading handgun  
            ammunition that are packaged for retail sale.
            (2)  Serialized handgun ammunition does not include  
            blank cartridges, shot-shells, or projectiles used in  
            black powder handguns.

        "Serialized" means that all of the following have been met:

            (1)   The ammunition has been identified in a manner  
            prescribed by the DOJ so that all assembled ammunition  
            contained within a package provided for retail sale, or  
            as otherwise specified by the department, is uniquely  
            identified.
            (2)   Bullets used for reloading or handloading contained  
            within a package provided for retail sale, or as  
            otherwise specified by the department, are uniquely  
            identified.
            (3)   Identification of the manufacturer of the  
            ammunition.
            (4)   Identification on the exterior of the ammunition in  
            a manner that permits visual inspection for the purpose  
            of determining if the assembled ammunition or bullet  
            complies with the serialization requirement.
            (5)   Identification on the exterior of the ammunition in  




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            a manner that is maintained subsequent to the discharge  
            of the ammunition and subsequent to the impact of the  
            bullet, based on standards prescribed by the department.
            (6)   Identification on the exterior of every package or  
            container of serialized ammunition, as prescribed by the  
            department, with the same unique identifiers used on the  
            assembled ammunition or bullets contained within the  
            packaging or container.  No package or container shall be  
            labeled with the same unique identifiers as any other  
            package or container by the same manufacturer.

          Effective July 1, 2007, criminalizes manufacture, importation,  
          sale, transferring, or possession "in any public place" of  
          handgun ammunition not serialized
          
           Commencing July 1, 2007, makes it a crime punishable and an  
            alternate misdemeanor/felony for any person to manufacture,  
            cause to be manufactured, import into the state for sale or  
            personal use, keep for sale, offer or expose for sale, or to  
            give or lend any handgun ammunition that is not serialized  
            pursuant to this bill.

           Commencing July 1, 2007, makes any person who possesses  
            in any public place any handgun ammunition that is not  
            serialized guilty of an infraction punishable by a fine  
            not exceeding $500, or a misdemeanor (punishable by  
            imprisonment up to six months in jail, a fine of up to  
            $1,000, or both).

           Defines "public place" to mean an area open to the public  
            and includes streets, sidewalks, bridges, alleys, plazas,  
            parks, driveways, front yards, parking lots, automobiles,  
            whether moving or not, and buildings open to the general  
            public, including those that serve food or drink, or  
            provide entertainment, and the doorways and entrances to  
            buildings or dwellings.

           Provides exceptions to the "public place" and other  
            possession restrictions on handgun ammunition without  




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            "serialization," including for (1) forensic laboratories  
            and agencies such as law enforcement and employees within  
            the course and scope of their official duties; (2) law  
            enforcement and other agencies charged with the  
            administration of justice for purpose of investigation,  
            evidence, or disposition; (3) possession for purposes of  
            disposition by an executor or administrator of an estate,  
            as specified; (4) possession for purposes of transporting  
            it to a law enforcement agency for disposition, as  
            specified; possession by peace officers from other states  
            in California on official duties; and members of the  
            California National Guard during their official duties.

          Registered Ammunition Vendors - requirements and new crimes (no  
          specific effective date in the bill for this provision)

           No person engaged in the retail sale of handgun ammunition  
            shall sell, lease, or transfer serialized ammunition unless  
            he or she is a registered ammunition vendor as described in  
            this bill.

           Any person that is not a registered ammunition vendor and  
            engages in the retail sale of ammunition shall be guilty of  
            an infraction or a misdemeanor.
          
           Defines "vendor," "ammunition vendor," or "registered  
            ammunition vendor" to mean any person, business, or  
            corporation that is engaged in the retail sale of handgun  
            ammunition as defined in this bill and who has all of the  
            following:

            (A)  Any regulatory or business license, or licenses,  
            required by local government.
            (B)  A valid seller's permit issued by the State Board of  
            Equalization.
            (C)  Is among those recorded in the centralized ammunition  
            vendor's registry created by this bill.

           Requires the DOJ to keep a centralized registry of all  




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            persons engaged in the retail sale of serialized ammunition  
            and authorizes the department to remove from this registry  
            any person who violates the provisions of this bill.

           Requires that upon removal of a vendor from the registry,  
            notification shall be provided to local law enforcement  
            and licensing authorities in the jurisdiction where the  
            vendor's business is located.

           Authorizes the DOJ to inspect ammunition vendors to ensure  
            compliance with this chapter.

           Provides that nothing in this bill shall prohibit any  
            local jurisdiction from adopting one or more ordinances  
            relating to the inspection of ammunition vendors.

          Information a registered ammunition vendor shall obtain, forward  
          to DOJ, and maintain

           Any vendor, agent or employee of the vendor that sells or  
            otherwise transfers ownership of any serialized handgun  
            ammunition shall record the following information in a format  
            prescribed by the DOJ:

            (1)  The date of the transaction.
            (2)  The name of the transferee.
            (3)  The transferee's driver license number or other  
            government issued identification card number and the  
            governmental agency that issued the identification.
            (4)  In order to validate a transferee's age and ensure  
            compliance with Section 12316 [prohibition on the sale of  
            handgun ammunition to a person under the age of 21], the  
            date of birth of the transferee.
            (5)  The unique identifier of all handgun ammunition or  
            bullets transferred.
            (6)  All other information prescribed by the DOJ.
          
           On the date the vendor delivers the handgun ammunition to  
            the transferee, he or she shall report the required  




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            information to the DOJ in a manner prescribed by the  
            department.
          
           A copy of the required information records shall be  
            maintained on the premises of the vendor for a period of  
            not less than three years from the date of the recorded  
            transfer and shall be subject to inspection at any time  
            during normal business hours by any peace officer, or by  
            any authorized employee of the DOJ, if the inspection  
            relates to 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 or any other laws  
            pertaining to firearms.
          
           Any vendor or employee or agent of a vendor that willfully  
            fails to comply with, or falsifies the records required to  
            be kept by this bill is guilty of a public offense  
            punishable by imprisonment in a county jail not exceeding  
            one year or in the state prison.
          
           Proof that a vendor or his or her agent or employee  
            demanded, was shown, and acted in reliance upon, bona fide  
            evidence of identity shall be a defense to any criminal  
            prosecution under this subdivision so long as reliance  
            upon the proof of identity was reasonable.

           Any person that presents false identification to a vendor  
            with the intent to avoid the recording requirements of  
            this section shall be guilty of a misdemeanor.

           Any vendor that refuses to permit an authorized person to  
            examine any record prepared in accordance with this  
            section during any inspection conducted pursuant to this  
            section shall be guilty of a misdemeanor.
          
          Commercial Manufacture of Serialized Handgun Ammunition -  
          requirements and new crimes (no specific effective date in the  




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          bill for this provision)
          
           No person engaged in the commercial manufacture of  
            serialized handgun ammunition shall sell, loan, or  
            transfer serialized ammunition, unless that person is a  
            registered ammunition manufacturer as defined in this  
            bill; a violation is punishable as a misdemeanor.

           "Manufacturer," "ammunition manufacturer," or "registered  
            ammunition manufacturer" mean any person, business, or  
            corporation that manufactures handgun ammunition within  
            California or manufacturers handgun ammunition with the  
            intent to distribute that ammunition for purposes, within  
            California, of sale, loan, or transfer.

           Manufacturers shall do all of the following:

            (1)  Register with the DOJ in a manner prescribed by the  
            department.
            (2)  Maintain records on the business premises for a  
            period of seven years concerning all sales, loans, and  
            transfers of ammunition, to, from, or within California.
            (3)  Comply with all other regulations concerning  
            ammunition manufacture and sale adopted by the  
            department.

           Any manufacturer that fails to comply with the provisions  
            of this section shall be liable for a civil fine of not  
            more than one $1,000 for a first violation, not more than  
            five $5,000 for a second violation, and not more $10,000  
            for a third and subsequent violation.  A civil action to  
            enforce this section may be brought by a city attorney or  
            district attorney, or the Attorney General.  These  
            provisions shall not preclude any other remedy available  
            under California law.

           The DOJ may inspect ammunition manufacturers to ensure  
            compliance with this bill.





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          Related additions to law in this bill include
          
           For purposes of this chapter, every 50 pieces or fewer of  
            assembled ammunition or bullets used for reloading or  
            handloading shall constitute a separate and distinct  
            offense.

           Any person who willfully destroys, obliterates, or  
            otherwise renders unreadable, the serialization required  
            pursuant to this bill, on any bullet or assembled  
            ammunition is punishable by imprisonment in a county jail,  
            not to exceed one year, or in the state prison.

           Commencing July 1, 2007, the Department of Justice shall  
            maintain a centralized registry of all reports of handgun  
            ammunition transactions reported to the department  
            pertaining to "serialized handgun ammunition" and shall  
            make that information available to specified law  
            enforcement and to the persons listed in the registry.

           Provides that nothing in the new Penal Code Section 12315  
            added by this bill pertaining to registered ammunition  
            vendors shall prohibit any local jurisdiction from  
            adopting one or more ordinances relating to the inspection  
            of ammunition vendors.

                                      COMMENTS

          1.  Need for This Bill  

          Background provided by the author includes the following:

              Senate Bill 357 requires all ammunition manufactured  
              or sold in California to be marked with a unique  
              identifier - essentially bringing ammunition controls  
              and law enforcement investigative tools into the  
              modern age.





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              Quite simply, SB 357 is to ballistic imaging what DNA  
              is to fingerprints.  Current technology for matching a  
              bullet used in a crime to the gun that fired it has  
              worked moderately well for years, but bullet  
              serialization is a new, fast and effective way for law  
              enforcement and forensics to find and convict  
              murderers.  Essentially, this means that every bullet  
              will have a number or other identifier stamped,  
              engraved, affixed or in some way attached to it.

              SB 357 has been drafted to allow the adaptation of  
              future technologies.  This identifier would be  
              associated with the purchaser of the bullet at the  
              point of sale.  Law enforcement then would be able to  
              read the serial number of a discharged bullet -  
              without the aid of expensive specialized tools - and  
              immediately be able to determine the name and address  
              of the individual who purchased the bullet by  
              accessing a database maintained by the Department of  
              Justice.

              In addition, manufacturers, vendors and purchasers of  
              handgun ammunition will be required to submit  
              information to the Department of Justice; fees will be  
              assessed for the registration of vendors and the  
              purchase of handgun ammunition; and penalties will be  
              set for individuals and corporations who circumvent  
              the requirements of SB 357.

              According to Crime in California: 2003, by the  
              Criminal Justice Statistics Center of the California  
              Department of Justice, there were 2,402 homicides  
                     reported in California during 2003.  Of these crimes,  
              72.8 percent (1,733) were committed with a firearm.   
              Only 55.1 percent of these homicides were solved in  
              2003, which was a 3.2 percent decrease from 2002.  The  
              victims of homicide in California during 2003, were  
              predominately Hispanic (44 percent), 18-24 years old  
              (31.2 percent) and male (82.1 percent).  Gang related  




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              activities made up over one-third (33.6 percent) of  
              all contributing factors in these homicides.   
              Additionally, 63,597 robberies were reported in 2003,  
              with armed robbery accounting for 53.9 percent  
              (34,252) of these crimes.  A firearm was used in 64.7  
              percent (22,161) of all armed robberies.  Only 27.1  
              percent of robberies were solved in 2003.

              Bullet serialization gives us the opportunity to take  
              advantage of new and emerging technologies that  
              enhance the ability of law enforcement to reduce the  
              time it takes to arrest and convict murderers.

          2.  Is the Technology Available
           
          The DOJ provided Committee staff with a 3-page list of patents  
          related to bullet identification, not all of which pertain to  
          "ammunition serialization" but some of the patents do.  In  
          addition, one system is described on the web at:

          http://www.ammocoding.com/index.php

          That is a website for Ammunition Coding System (ACS) with a  
          Seattle address and includes the following:

               Bullet Identification Technology:  A modern crime  
              fighting tool
               
              In an effort to provide law enforcement with modern  
              crime fighting tools, a new patentpending bullet  
              identification technology known as the Ammunition  
              Coding System (ACS) has been developed.  ACS assigns a  
              unique code to every round of ammunition manufactured,  
              and by recording sales records, law enforcement  
              personnel will be able to easily trace the ammunition  
              involved in a crime and have an avenue to pursue and  
              solve even the most difficult cases.  The key to ACS is  
              the unique code that is micro-laser engraved on  
              factory-produced ammunition.  This laser engraving is  




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              etched on both the projectile and the inside of the  
              cartridge casing.  Each code will be common to a single  
              box of cartridges and unique from all other ammunition  
              sold.  The unique ACS codes will be tracked and records  
              maintained to identify individual ammunition purchases.  
               The ACS technology will provide a method for law  
              enforcement personnel to trace ammunition purchases and  
              link bullets and cartridge cases found at crime scenes  
              to the initial retail ammunition purchaser.  This  
              system will not necessarily prove who pulled the  
              trigger, but it will provide law enforcement with a  
              valuable lead and a starting point to quickly begin  
              their investigations.  The design of the ACS laser  
              engraving system will allow law enforcement personnel  
              to identify the bullet code in cases where as little as  
              20% of the bullet base remains intact after recovery.   
              Since bullets are designed to keep the base solid and  
              in its original configuration, the likelihood of ACS  
              codes remaining legible after recovery is very high.   
              Law enforcement testing has already shown a 99% success  
              rate in identifying the ACS code after bullet recovery.

               What are the costs to manufacturers

               There are several well known manufacturers currently  
              producing a significant portion of the current  
              commercially available ammunition in the United States.  
               Each ammunition producer would be required to purchase  
              at least one, if not more, laser engraving machines and  
              ammunition material handlers to produce ACS coded  
              ammunition.  There are several manufacturers who can  
              design and build this equipment.  Reliable estimates  
              for a complete set of engraving/material handling  
              equipment range from $300,000 to $500,000 each.  A  
              licensing fee for each bullet sold would also be  
              required.  However, since approximately 10 billion  
              bullets are sold in the United States alone each year,  
              equipment costs, once amortized over the number of  
              bullets produced and sold are not significant.




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          This bill provides that the DOJ "shall have authority to  
          prescribe the manner in which handgun ammunition is serialized  
          in order to comply with the requirements of Section 12314 [the  
          new misdemearnor/felony crime of manufacturing, selling,  
          importing, or giving handgun ammunition that is not serialized],  
          including, but not limited to, determining how ammunition that  
          is loose, packaged, in lots, series, or otherwise aggregated for  
          purposes of manufacture or sale shall be serialized with a  
          unique identifier, pursuant to Section 12314."

          This bill also further authorizes the DOJ to "adopt or amend"  
          regulations to implement this bill and mentions amending  
          regulations to "incorporate new technologies as they become  
          available" without any limits to future changes which could  
          affect both manufacturers and vendors.  For example, a required  
          technology could be replaced in the future with another  
          technology at the discretion of the DOJ.

          NOTWITHSTANDING THE ACS WEBSITE MATERIALS, ARE THE TECHNOLOGIES  
          AVAILABLE AT THE PRESENT TIME FOR THE IMPLEMENTATION OF THIS  
          BILL BY JULY 1, 2007?

          IS THERE STILL A POSSIBLE "BETA VS. VHS" ISSUE TO BE RESOLVED  
          BEFORE SUCH TECHNOLOGY MIGHT BE APPROPRIATELY IMPLEMENTED IN  
          CALIFORNIA?

          IF SO, SHOULD THAT DECISION OR CHOICE BE MADE ADMINISTRATIVELY?

          3.  Possible Issues (Drafting and Substantive) Presented by This  
          Bill
           
           No requirement that DOJ complete regulations needed to  
            implement this bill prior to the effective date for the  
            prohibition on "non-serialized handgun ammunition" effective  
            July 1, 2007.

          This bill grants broad authority to the DOJ to implement a  
          program which requires all handgun ammunition vendors and  




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          manufacturers to comply with new requirements by July 1, 2007,  
          in order to stay in the business of selling and manufacturing  
          handgun ammunition after that date.  However, no where in this  
          bill is there any requirement that the DOJ adopt regulations to  
          allow such compliance - or specify the technology - prior to the  
          July 1, 2007, effective date.

          IF THIS BILL IS ENACTED, WOULD IT BE APPROPRIATE TO SPECIFY A  
          DATE BY WHICH THE DOJ SHALL ADOPT THE NECESSARY REGULATIONS TO  
          ALLOW COMPLIANCE WITH THIS BILL?

           No delayed effective date of the provisions related to  
            "registered ammunition vendors" and "registered ammunition  
            manufacturers"

          The provisions of this bill pertaining to ammunition vendors and  
          ammunition manufactures do not contain a delayed effective date  
          of July 1, 2007.  For example, on page 8, lines 16-18, the bill  
          states:

              Any person that is not a registered ammunition  
              vendor and engages in the retail sale of  
              ammunition shall be guilty of an infraction or a  
              misdemeanor.

          That requirement would take effect on January 1, 2006, if this  
          bill is enacted in its current form.  In addition, while the  
          preceding sentence does mention that "no person engaged in the  
          retail sale of handgun ammunition" shall deal in serialized  
          ammunition - not limited to handgun ammunition - unless he or  
          she is a registered vendor, the penalty sentence, above, is not  
          limited to handgun ammunition, serialized or not.

          SHOULD SECTION 4 - NEW PENAL CODE SECTION 12315(a) - BE  
          APPROPRIATELY AMENDED TO REFER TO "HANDGUN" AMMUNITION ONLY AND  
          SHOULD THAT ENTIRE NEW SECTION BE PREFACED BY "COMMENCING JULY  
          1, 2007"?






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          On page 10, lines 15-18, the bill states that:

              No person engaged in the commercial manufacture of  
              serialized handgun ammunition shall sell, loan, or  
              transfer serialized ammunition, unless that person  
              is a registered ammunition manufacturer as defined  
              in paragraph (2) [of the bill].  Violation of this  
              subdivision is punishable as a misdemeanor.

          That section would also take effect on January 1, 2006, and  
          would appear to prevent any manufacturer from transferring  
          serialized ammunition - which one could presumably decide to  
          make prior to July 1, 2007, if one decided to do so - unless  
          registered with the DOJ.

          WOULD IT BE APPROPRIATE TO AMEND THAT SECTION AS WELL TO REFER  
          TO BOTH HANDGUN AMMUNTION - PAGE 10, LINE 17 - AND TO ADD  
          "COMMENCING JULY 1, 2007"?

           Exception for law enforcement from other states on "official  
            business"

          This bill does exempt peace officers from other states from its  
          provisions while they are discharging their official duties.   
          There is no exemption in this bill for California law  
          enforcement officers from it's provisions regarding the use of  
          "serialized handgun ammunition" commencing July 1, 2007, in  
          their service or private handguns, whether on duty or off.  That  
          may be entirely appropriate since any such exemption would not  
          only result in more "non-serialized" handgun ammunition in use  
          in the state but the use of such ammunition might be useful in  
          circumstances where a law enforcement officer does use a  
          firearm.  Nor is there any exception for federal law enforcement  
          officers nor other military in this state.

           No authorization to charge fees for the manufacturers





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          This bill does contain explicit authority for the DOJ to charge  
          a fee to both "end users" to pay for the overall program and to  
          vendors for the registry program (page 5, lines 20-35).   
          However, there is no authorization to collect a fee from  
          manufacturers to set up a registry program.  The sponsors may  
          wish to consider adding such an authorization.

           New crime to "destroy" serialization effective January 1, 2006

          This bill makes it an alternate misdemeanor/felony to destroy  
          serialization information with that provision taking effect on  
          January 1, 2006, if the bill is enacted this year.  While it may  
          be that no such ammunition will be available prior to July 1,  
          2007, it is arguably not clear why that provision should take  
          effect ahead of the primary provisions of this bill.

          4.  Is there a "Taking" Issue Raised by This Bill  

          This bill makes it a crime to possess handgun ammunition which  
          is not serialized - effective July 1, 2007 - in a public place.   
          At the present time such handgun ammunition is not generally  
          illegal to possess or transfer or use.  This bill does not make  
          such handgun ammunition absolutely illegal to possess after July  
          1, 2007.  However, it makes transporting it in a public place -  
          including in "automobiles, whether moving or not" - generally a  
          crime with an exception for transporting it to a law enforcement  
          agency for disposition (without any compensation mentioned).

          It would not be legal to transport that ammunition in public to  
          a shooting range and use it after July 1, 2007.  Nor would  
          business owners - and "buildings open to the general public" are  
          included as public places in this bill - be immune from criminal  
          penalties if they had a handgun legally at their place of  
          business but with handgun ammunition which is otherwise required  
          to be serialized but is pre-July 1, 2007, handgun ammunition.

          Another example might be that this bill would make it a crime  
          if a person moved from one house or apartment to another and  
          transported handgun ammunition which was not serialized after  




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          July 1, 2007.  Or some persons might collect ammunition,  
          including handgun ammunition, and those collections could  
          subject a collector to criminal penalties under the provisions  
          of this bill after July 1, 2007.

          While handgun ammunition may not be especially "expensive" in  
          smaller quantities, it does have value and it is property.  It  
          is not clear to Committee staff whether or not there would be a  
          valid "governmental taking without compensation" argument to be  
          made pertaining to this bill, it is at least conceivable that  
          such a claim could be made.

           NOTE  :  The Fifth Amendment to the United States Constitution  
          provides that "no person shall be . . . deprived of . . .  
          property, without due process of law, nor shall private property  
          be taken for public use, without just compensation.  Also,  
          Article I, Section 19, of the California Constitution, provides  
          that "private property may be taken or claimed for public use  
          only when just compensation ascertained by a jury, unless  
          waived, has been paid to, or into the court for, the owner."

          WOULD IT BE APPROPRIATE TO CRIMINALIZE THE POSSESSION OF HANDGUN  
          AMMUNITION WHICH IS NOT SERIALIZED AS PROPOSED BY THIS BILL?

          5.  It is Not Now Illegal to bring Ammunition across a State Line  

          This bill would criminalize the importation of handgun  
          ammunition into this state from other states, whether by a  
          citizen of this State or not.  It is assumed that any person in  
          California is familiar with the laws of this State and court  
          interpretations of those laws.  However, it may be presumed that  
          not everyone traveling into this State will be familiar with the  
          provisions of this bill if it is enacted and in effect on July  
          1, 2007.




          6.    All Ammunition Sales and All Vendors in This State Included  




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          Both licensed firearms dealers and any other entity which sells  
          ammunition would be subject to the "registered ammunition  
          vendor" requirements of this bill.  Licensed firearms dealers in  
          California are already required to submit background check  
          information to the DOJ as well as to maintain information  
          pertaining to firearm sales and transfers, as well as to obtain  
          a thumbprint.

          This bill would also apply to entities which sell ammunition but  
          are not otherwise licensed firearms dealers.

          This Committee's analysis of SB 1152 last year stated that the  
          DOJ indicated at that time that there were then 1,683 licensed  
          firearms dealerships in California and that there were 1,733  
          licensed firearms dealers in California.  The DOJ had no record  
          or estimate of how many businesses sell ammunition in this  
          state.  That information would be generally correct today, as  
          well.

          7.  Support for This Bill  

          The letter in support from the Legal Community Against Violence  
          includes:

              SB 357 will provide an outstanding crime-fighting  
              tool because it will allow law enforcement to  
              quickly determine the identity of the purchaser of  
              ammunition found at a crime scene.  Thus, it will  
              help law enforcement solve gun crimes even when the  
              guns themselves have not been recovered.  It will  
              also provide much-needed oversight over ammunition  
              sales and ammunition sellers and manufacturers -  
              areas which are, under current law, almost  
              completely unregulated.

          The Attorney General's sponsor's letter includes:

              Senate Bill 357 will require all handgun ammunition  




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              manufactured and sold in California to be marked with  
              a unique identifier.  This identifier will then be  
              associated with the purchaser of the ammunition at  
              the point of sale.  When a fired round of ammunition  
              is recovered at a crime scene, the identifier will be  
              readable without the need for expensive, specialized  
              equipment, and the name and address of the purchaser  
              of the bullet will be accessible by law enforcement  
              from a database maintained by the Department of  
              Justice.  In short, by linking a round of ammunition  
              to a specific purchaser, SB 357 will allow law  
              enforcement to solve firearms crimes without having  
              to rely on complicated ballistics testing.

              Currently, in order for law enforcement to link a  
              bullet found at a crime scene to the person who fired  
              the bullet, the firearm that was used in the crime  
              must be recovered.  A test bullet fired from the  
              recovered firearm is then compared at a microscopic  
              level to the bullet recovered.  Unfortunately, since  
              the barrel of a firearm and other firearms parts can  
              change over time, two bullets fired from the same  
              firearm may not have the same characteristics.   
              Moreover, since firearms used in crimes are often  
              never recovered, such ballistics comparisons often  
              cannot be done.  The use of ballistics databases have  
              improved traditional forensics investigations, but,  
              as explained below, have not solved the problem of  
              linking a recovered bullet to the person who fired  
              it.

              . . . Unlike traditional ballistics, SB 357 will  
              allow law enforcement officers to quickly match  
              ammunition recovered from a crime scene to the  
              purchaser of that ammunition without the need to  
              recover the firearm, and without the need for a  
              forensics specialist.  When a serialized bullet is  
              recovered from a crime scene, the serial number will  
              be readable using an ordinary magnifying glass, and  




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              the information regarding the purchaser will be  
              accessible from law enforcement computer terminals.   
              The Attorney General's Office believes that such  
              information will be invaluable in investigating and  
              solving firearms crimes.  Thank you again for  
              carrying this measure.  We look forward to working  
              with you on this important piece of legislation.

          8.  Opposition to This Bill  

          The letter in opposition from the Sporting Arms and Ammunition  
          Manufacturers' Institute ("SAAMI") includes:

              At the present time, and based on information  
              currently available to us, SAAMI is strongly opposed  
              to SB 357 for a number of reasons.  SAAMI is proud of  
              its support of law enforcement in its efforts to  
              reduce the criminal misuse of firearms.  Like the  
              proposal for "ballistic imaging" recently considered  
              in California, SAAMI believes there are important  
              cost/benefit and public policy questions that must be  
              fully examined and answered before "bullet  
              serialization" of ammunition is imposed upon our  
              industry by the Legislature.

              Our paramount problem with this bullet serialization  
              proposal is that, as a practical matter, ammunition  
              manufacturers simply could not comply with the  
              requirements of such a legislative mandate.  Modern  
              ammunition production processes and distribution  
              practices are utilized by the ammunition industry to  
              manufacture and distribute approximately 8 billion  
              rounds of ammunition each year.  Some factories are  
              capable of, and do, manufacture as many as 1 million  
              rounds of ammunition in a single day.  To implement  
              the bullet serialization system contemplated by this  
              proposal would require nothing less than  
              manufacturers having to build new factories at the  
              cost of hundreds of millions of dollars.  It is far  




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              more likely that ammunition manufactures would  
              abandon the California marketplace rather than incur  
              such costs which they cannot afford to bear.

              Any attempt to comply with the proposed requirements  
              would result in a massive slow down in production.  A  
              massive reduction in production translates into a  
              massive reduction in sales and profitability.  It is  
              not an overstatement to say that complying with the  
              mandate would result in bankruptcy for any ammunition  
              manufacturer that tried.  While the proposal may have  
              some initial appeal and sound reasonable, when  
              subjected to closer scrutiny it is completely  
              unrealistic to believe that serialization can be  
              accomplished on the various types of equipment being  
              used by the manufacturers for less than a cost that  
              far outweighs any possible benefit.

              It is also absolutely clear that ammunition  
              manufacturers will be unable to guarantee that,  
              within a carton of ammunition, all cartridges will  
              have the identical serial numbers.  They will also be  
              unable to guarantee that the bullet or cartridge case  
              serial numbers will be identical, or even present.   
              Once this inevitable consequence of manufacturing  
              reality is admitted as fact in the courts, the whole  
              serialization mandate becomes suspect.

              Maintaining integrity in packaging is even more  
              dubious.  Despite the best efforts of humans and  
              machines, loaded rounds will be mixed between boxes.   
              Even at the retail/consumer level the loaded rounds  
                         can be moved between boxes, deliberately or  
              inadvertently.  This reality, when admitted as fact  
              in court, will make the matching of serial numbers on  
              ammunition components to their original box equally  
              suspect.

              . . . In addition, there are other more generalized  




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              public policy considerations.  We are unaware of a  
              single study by a criminologist that has examined the  
              question of whether bullet serialization would be an  
              effective means of reducing the criminal misuse of  
              firearms.  Similarly, we are unaware of any study  
              that attempts to compare the costs to taxpayers,  
              consumers and industry, of such a system relative to  
              other proven and effective crime reduction  
              strategies.  Assuming arguendo a manufacturer could  
              somehow comply with the requirements of the proposal,  
              the potential impact on municipal budgets that would  
              result from the necessarily dramatic increase in the  
              cost of ammunition for law enforcement agencies is an  
              appropriate subject for the Legislature.  There is no  
              bona fide reason to exempt law enforcement ammunition  
              from the requirements, as the theory behind this  
              proposal would be equally of assistance in law  
              enforcement involved shootings.

              We also believe there needs to be further  
              independent, objective study of the technology and  
              its feasibility.  As you may know, the National  
              Academy of Sciences is currently conducting a  
              feasibility study of "ballistics imaging."  SAAMI  
              supported federal legislation introduced in the 107th  
              Congress calling for such a study, and we support  
              NAS's study.  To our knowledge, the very limited  
              testing of this technology has been done primarily by  
              the company, Ravensforge (  www.ravensforge.com  ), which  
              has a vested financial interest in the outcome of any  
              testing.  In conducting what limited testing it did,  
              Ravensforge did not consult with any ammunition  
              manufacturer as to the feasibility, or lack thereof,  
              of incorporating its technology into the production  
              process and the impact it would have on the  
              manufacturer.  The issue of whether the Legislature  
              would be creating a monopoly for Ravensforge must  
              also be considered.  This appears to be a "sole  
              source" technology.




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          9.  Other Efforts to Trace Firearms and Ammunition 

          This bill is one of several bills in the past years and current  
          Session which attempt to facilitate law enforcement efforts to  
          "trace" firearms, not only ammunition.

          For example:

                 AB 352 (Koretz) would, commencing January 1, 2007,  
               expand the definition of unsafe handgun to include  
               semiautomatic pistols that are not designed and  
               equipped with a microscopic array of characters, that  
               identify the make, model, and serial number of the  
               pistol, etched into the interior surface or internal  
               working parts of the pistol, and which are transferred  
               by imprinting on each cartridge case when the firearm  
               is fired.  AB 352 is currently on the Assembly Floor  
               awaiting a vote.

                 SB 1152 (Scott) would have required that 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.  SB 1152 was vetoed by  
               the Governor on September 20, 2004.

                 AB 1717 (Chapter 271, Statutes of 2000) required the  
               Department of Justice to require the Attorney General  
               to conduct a study to evaluate ballistics  
               identification systems, as defined, to determine the  
               feasibility and potential benefits to law enforcement  
               of utilizing a statewide ballistics identification  
               system capable of maintaining a data base of ballistic  
               images and information from test fired and sold  
               firearms, as specified.  Prior to the May 6, 2000,  
               amendments to the bill, the measure required the DOJ to  
               determine the date after which no handgun could be  




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               transferred in California without ballistic information  
               being made available to the DOJ.

                 SB 683 (Watson) was introduced in 1997 - and held on  
               the Senate Appropriations Suspense File - and would  
               have required the Attorney General to conduct research  
               concerning the latest technological developments  
               related to bullet or handgun ammunition identification  
               numbers and other taggants.

          10.  Comment in This Committee's Analysis of SB 683 in 1997
           
          This Committee's analysis of SB 683 from 1997 included (Comment  
          #3) the following which is of possible general interest today:

              At the present time, there are few restrictions placed on  
              the sale of ammunition at either the federal or the state  
              level.  The federal laws were changed in 1986 to allow  
              almost anyone to sell most ammunition in the United States.  
               Ammunition may be sold in California by almost anyone  
              subject to normal local business licensing requirements.   
              Federal laws do place some restriction on federal firearms  
              dealers regarding the sale of ammunition to minors.   
              Federal law does also prohibit the sale of armor piercing  
              ammunition and ammunition which contains an explosive  
              projectile.  Federal law does prohibit dealer sales to  
              known persons in certain prohibited classes and the knowing  
              sale of stolen ammunition is prohibited by anyone.   
              However, there are few other limitations on the sale of  
              ammunition.

              Components of ammunition for a rifle or handgun generally  
              include a "bullet" or projectile which is the portion which  
              is discharged out of the barrel of the weapon; a cartridge  
              or shell "casing" which holds the explosive powder inside  
              and which has the "bullet" connected at one end; the  
              explosive powder (smokeless powder in modern weapons) which  
              is essentially granular; and a "primer" inserted in the  
              center/bottom of the shell casing which contains a small  











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              portion of solid explosive material which explodes and  
              ignites the powder when struck by the firing pin of the  
              weapon.  Small caliber ammunition such as .22 caliber is  
              slightly different since the primer is molded into the solid  
              bottom of a shell casing and is ignited by the firing pin  
              striking the rim of the shell bottom; such small caliber  
              ammunition is not commonly reloaded or made by firearms  
              owners themselves.

              A number of firearm owners do "load" or make completed  
              ammunition at home, often from purchased components,  
              although some do melt lead to make their own "bullets."   
              Shotgun ammunition contains essentially the same components  
              but "shot" - similar to BB's of varying sizes - is the  
              projectile (although solid "slugs" may be used as well).

              Older antique weapons which use ammunition components  
              loaded separately are owned by a number of persons.  It may  
              also be anticipated that there are those who are trying to  
              develop alternative approaches to ammunition construction,  
              such as a solid molded design without a shell casing which  
              could be used in firearms also developed for such a use.

              It may be anticipated that if technology is available to  
              trace any or all components of ammunition, then proposals  
              would be made that the manufacture and sale of those  
              components should be controlled in a manner similar to  
              firearms sales and that it seems likely that proposals  
              would be made to make owning or possessing ammunition or  
              its components without complying with such regulations a  
              crime.

                                   ***************