BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 362
                                                                  Page  1

          Date of Hearing:   April 17, 2007
          Chief Counsel:      Gregory Pagan


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Jose Solorio, Chair

                    AB 362 (De Leon) - As Amended:  April 12, 2007


           SUMMARY  :   Requires, commencing July 1, 2008, that any person  
          that sells or transfers more than 50 rounds of handgun  
          ammunition in any month to register as a handgun ammunition  
          vendor, and requires that specific information relating to the  
          purchase of handgun ammunition be collected and submitted to the  
          Department of Justice (DOJ).  Specifically,  this bill  :  

          1)Prohibits a registered handgun ammunition vendor from allowing  
            an employee, who the vendor know or reasonably should know is  
            prohibited from possessing a firearm, to handle handgun  
            ammunition in the course and scope of his or her employment.

          2)Defines a "registered handgun ammunition vendor" as a person  
            or business that is engaged in the retail sale of handgun  
            ammunition and 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 Board of  
               Equalization

             c)   Is among those recorded in the centralized ammunition  
               vendor's registry.

             d)   A certificate of eligibility, as specified.

          3)Authorizes a registered handgun ammunition vendor to request a  
            background clearance from DOJ to determine if an employee or  
            potential employee is prohibited from possessing a firearm,  
            and allows DOJ to charge a fee for the clearance.

          4)Requires the DOJ to keep a centralized registry of all  
            persons, businesses and corporations that are registered  
            handgun ammunition vendors, and allows DOJ to remove any  








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            vendor from the registry that violate any of the provisions of  
            this Act. 

          5)Exempts wholesale sellers of ammunition who sell or transfer  
            handgun ammunition to specified persons and entities that are  
            also exempted.

          6)Provides  that any person under the age of 21 who purchases,  
            or attempts to purchase handgun ammunition by using false  
            identification, or by otherwise misrepresenting his or her age  
            is guilty of a misdemeanor.

          7)Prohibits a retail seller of ammunition from selling, or  
            displaying for sale any handgun ammunition in a manner that  
            allows that ammunition to be accessible to a purchaser without  
            the assistance of the retailer or employee thereof.  A  
            violation of this provision is punishable as a misdemeanor or  
            as an infraction with a fine of $500.

          8)Requires the DOJ to keep a record of specified information  
            collected in connection with the purchase or sale of handgun  
            ammunition.

          9)Requires the DOJ to keep a record of handgun ammunition  
            purchase information in the Prohibited Armed Persons File, and  
            makes conforming cross-references.

          10)Provide that handgun ammunition may only be purchased in a  
            face-to-face transaction, provided the seller view bona fide  
            evidence of identity from the retail purchaser.

          11)Defines "handgun ammunition" as ammunition principally for  
            use in pistols, revolvers, and other firearms capable of being  
            concealed upon the person, as defined, notwithstanding that  
            the ammunition may also be used in some rifles. 

          12)Defines "bona fide evidence of majority and identity" as a  
            document issued by a federal, state, county, or municipal  
            government, or agency thereof, including, but not limited to,  
            a motor vehicle operator's license, California state  
            identification card, 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.









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          13)Provides that commencing July 1, 2008, no seller of handgun  
            ammunition shall sell or transfer handgun ammunition without  
            at the time of purchase recording the following information on  
            a form prescribed by the DOJ:

             a)   The date of the transaction.

             b)   The name, address, and date of birth of the transferee.

             c)   The transferee's driver's license or other  
               identification number and the state in which it was issued.

             d)   The brand, type, and amount of ammunition transferred.

             e)   The transferee's signature.

             f)   The name of the salesperson who processed the  
               transaction.

          14)The vendor shall also at the time of purchase or transfer or  
            obtain the right thumbprint of the purchaser or transferee on  
            the form unless the purchaser presents a valid thumbprint.  

          15)Requires that the records of the transaction be maintained on  
            the premises of the vendor for a period of not less than two  
            years from the date of the transfer.

          16)Provides that transaction records shall be subject to  
            inspection, at any time during normal business hours, by a  
            peace officer, as specified; district attorney; or a peace  
            officer or employee of the DOJ conducting an investigation  
            where access to the records may be relevant to that  
            investigation is seeking information regarding persons  
            prohibited from owning or possessing firearms or ammunition or  
            is engaged in ensuring compliance with the Dangerous Weapons  
            Control Law.

          17)Requires that on the date of delivery of the handgun  
            ammunition, the seller of the handgun ammunition submit a  
            report to the DOJ in such a manner as DOJ may prescribe  
            containing the required purchase information.

          18)Exempts the sale or transfer of handgun ammunition between  
            firearms dealers, a registered handgun ammunition vendor,  
            federal firearms license holders, a target facility, licensed  








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            commercial hunting clubs, gunsmiths, wholesalers, and  
            manufacturers and importers of firearms.

          19)Exempts sales and transfers made to authorized law  
            enforcement representatives if written authorization from the  
            employing the agency to the person from whom the purchase is  
            being made.

          20)Makes a violation of any of the above provisions a  
            misdemeanor punishable imprisonment in the county jail for a  
            period not to exceed six months; by a fine not to exceed  
            $1,000; or by both. 

          21)Requires the Attorney General to prepare and submit to the  
            Legislature, on or before January 1, 2009, a report concerning  
            all of the following:

             a)   Commending a clear and succinct general procedure  
               whereby instantaneous background checks can be conducted on  
               persons wishing to acquire handgun ammunition.

             b)   Integration of that system into the current handgun  
               registration process.

             c)   The feasibility and cost of creating the type of  
               background check system referred to in this section.

             d)   The costs overall and to individual users of creating  
               that system.

             e)   The effect of the system on overall efforts by DOJ in  
               terms of information and computerized upgrades that the  
               department is currently undertaking.

             f)   Specific statutory changes to implement the system.

          22)States legislative intent that commencing July 1, 2011, prior  
            to the delivery of handgun ammunition a registered vendor of  
            handgun ammunition will have the ability to instantaneously  
            determine that the purchaser of handgun ammunition is not  
            person prohibited from possessing handgun ammunition.  

           EXISTING LAW  :

          1)Provides that no person prohibited from owning or possessing a  








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            firearm under specified provisions of law shall have under his  
            or her custody or control any ammunition or reloaded  
            ammunition and violation of this provision is an alternate  
            felony/misdemeanor.  [Penal Code Section 12316(b)(1).]

          2)Defines "ammunition" to 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.  [Penal Code Section 12316(b).]

          3)Provides that for the purposes of provisions relating to the  
            sale or possession of ammunition, "ammunition" includes, but  
            is not 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 Section  
            12316(b)(2).]

          4)Provides that 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.  [Penal Code Section 12316(a)(2).]

          5)Defines "bona fide evidence of majority and identity" as a  
            document issued by a federal, state, county, or municipal  
            government, or agency thereof, including, but not limited to,  
            a motor vehicle operator's license, California state  
            identification card, 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.  [Penal Code Section 12316(a)(2).]

          6)Defines relevant federal law as:  "It shall be unlawful for  
            any licensed importer, licensed manufacturer, licensed dealer,  
            or licensed collector to sell or deliver - any firearm or  
            ammunition to any individual who the licensee knows or has  
            reasonable cause to believe is less than 18 years of age and,  
            if the firearm or ammunition is other than a shotgun or rifle,  
            or ammunition for a shotgun or rifle, to any individual who  
            the licensee knows or has reasonable cause to believe is less  
            than 21 years of age . . . . "  [18 United States Code Service  
            922(b)(1).]

           FISCAL EFFECT  :   Unknown









                                                                  AB 362
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           COMMENTS  :   

           1)Author's Statement  :  According to the author, "After some  
            years of declining violent crime, according to DOJ, gun  
            violence is once again on the rise, plaguing California with  
            an increase of over 34% in six years from 1999 to 2005.  In  
            Los Angeles alone, between 2005 and 2006, the Los Angeles  
            Sheriff's Office handled 668 murders involving firearms - over  
            80% of their total homicides.

          "In a state where firearms outnumber people, there must be  
            regulation of the sale and distribution of handgun ammunition  
            to prevent criminals from simply purchasing ammunition over  
            and over again in sporting goods stores.  There is currently  
            no regulatory control over the deadly ammunition that fuels  
            gun violence.

          "Not only are handgun ammunition vendors unregulated, but so too  
            are handgun ammunition sales despite federal and state  
            prohibitions on certain groups of people from purchasing  
            ammunition, e.g., convicted felons.  Currently, it is easier  
            to purchase handgun ammunition than it is a package of  
            cigarettes or spray paint, thus making it easier for handgun  
            ammunition to end up in the wrong hands. 

          "A 2006 RAND Corporation study found substantial amounts of  
            ammunition purchased by felons and others prohibited from  
            possessing firearms in sporting goods stores and gun shops;  
            this included 10,050 rounds of ammunition purchased in just  
            two months in the City of Los Angeles.  RAND reported that  
            'guns and ammunition possessed by felons and others prohibited  
            from owning weapons are more likely to be used in violent  
            crimes than weapons bought by people with no criminal  
            histories.'

          "While the State has recently enacted legislation to keep guns  
            out of the wrong hands, it to date has not enacted any  
            legislation to prevent criminals and gang members who already  
            have guns from accessing the ammunition that drives this  
            tragic violence.  This bill would enact a regulatory structure  
            necessary to prevent gangs and felons from easily acquiring  
            ammunition."

           2)Arguments in Support  :









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             a)   According to the  California Chapters of the Brady  
               Campaign to Prevent Gun Violence  , "Numerous laws relate to  
               firearms.  Ammunition, the actual agent of harm caused by  
               firearms, remains virtually unregulated.  Current law  
               provides that people who are prohibited from purchasing and  
               possessing firearms are also prohibited from purchasing  
               ammunition.  At the present time, there is no way to  
               enforce this law.  The individuals engaged in the sale of  
               ammunition are unknown.  Similarly, how much ammunition is  
               sold and of what type, and even whether those engaged in  
               the business are criminals is unknown.  This far-reaching  
               bill would take a major step in addressing all of these  
               issues.

             b)   According to the  Legal Community Against Violence  , "This  
               bill has many important provisions.  This bill would, among  
               other things:  (a) require that handgun ammunition vendors  
               be liscensed; (b) authorize those vendors to request  
               background checks on their employees; (c) require the  
               vendors to store handgun ammunition so that it is  
               inaccessible to purchasers without the assistance of the  
               retailer; (d) mandate that handgun ammunition purchases be  
               completed in face-to-face transactions so that the vendor  
               may confirm that the purchaser is over the age of 21; and,  
               (e) require vendors to maintain records containing certain  
               identifying information about the purchaser and the  
               ammunition being sold.  Finally, this bill would declare  
               the Legislature's intent to have instant handgun ammunition  
               purchaser background checks by January 1, 2001 and require  
               the Attorney General to submit a report to the Legislature  
               by January 1, 2009 recommending a procedure to complete  
               such background checks.

           3)Arguments in Opposition  :

             a)   According to the California Rifle and Pistol  
               Association, Inc.  , "Registration of handgun ammunition  
               retailers who sell more than one 50-round box of ammunition  
               in a month would not serve any real crime-fighting purpose,  
               certainly not one that would justify the new fees, added  
               business costs, new DOJ program, interference with business  
               and the disruption of shopping for consumers.  What is the  
               point of this provision?  It appears to be more a matter of  
               harassment of lawful businesses and their customers than  
               anything else.








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             "There is no evidence that the ammunition storage and display  
               requirements of this bill address an actual problem.   
               Ammunition retailers have not reported any problem with  
               ammunition theft or inventory control under current law  
               using present procedures.  This bill clearly is not needed,  
               and it supporters have not presented any evidence that it  
               is."

             b)   According to the  National Shooting Sports Foundation,  
               Inc.  , "Placing what amounts to a 50 one-round per month  
               threshold as a registration requirement for handgun  
               ammunition retailers is no different than requiring that  
               all register regardless of the amount of ammunition sold.   
               This is because handgun ammunition is normally sold in  
               50-round boxes.  A retailer who sells as little as two  
               boxes in a month would be affected.  All retailers sell at  
               least that much in a month's time.

             "Allowing the DOJ to create another large and bureaucratic  
               registration program would be very costly.  This bill would  
               not be cost effective in terms of crime control but would  
               create a hardship for retailers, especially smaller ones  
               and their customers.  Criminal have many other ways of  
               obtaining ammunition.  This bill would not serve as any  
               kind of crime deterrent."

           4)Prior Legislation  :

             a)   AB 2714 (Torrico), of the 2005-06 Legislative Session,  
               would have provided that handgun ammunition may not be  
               delivered by a seller to a purchaser via a common carrier  
               or contract carrier pursuant to a retail transaction.  AB  
               2714 was vetoed.

             b)   SB 1152 (Scott), of the 2003-04 Legislative Session,  
               required that all vendors of firearm ammunition maintain  
               specified information pertaining to purchasers on a form  
               prescribed by the DOJ.  SB 1152 was vetoed.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Brady Campaign to Prevent Gun Violence








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          Legal Community Against Violence
          Orange County Citizens for the Prevention of Gun Violence
          Women Against Gun Violence

           Opposition 
           
          California Association of Firearms Retailers
          California Rifle and Pistol Association
          California Sportsman's Lobby
          Crossroads of the West Gun Show
          Gun Owners of California Incorporated
          National Rifle Association
          National Shooting Sports Foundation, Inc.
          Outdoor Sportsmen's Coalition of California 
          Safari Club International
          Two private citizens
           

          Analysis Prepared by  :    Gregory Pagan / PUB. S. / (916)  
          319-3744