BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 362
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          Date of Hearing:   May 2, 2007

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

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

          Policy Committee:                              Public  
          SafetyVote:  5-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  
            
           This bill requires, beginning July 1, 2008, that any person who  
          sells or transfers more than 50 rounds of handgun ammunition in  
          any month, 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).  

           FISCAL EFFECT
            
           1)Significant annual costs - in the range of several million  
            dollars - for DOJ to create and maintain a handgun ammunition  
            registry. Presumably these costs would be covered by fees DOJ  
            would be authorized to charge to cover their costs. (DOJ is  
            working with the author's office on fee language and fiscal  
            concerns.)

          2)Unknown nonreimbursable costs, offset to a limited degree by  
            increased fine revenue, for increased local incarceration as a  
            result of the misdemeanor penalties proposed by this bill.
           
           SUMMARY CONTINUED

          Specifically, this bill:

          1)Prohibits a registered handgun ammunition vendor, as defined,  
            from allowing an employee, who the vendor should know is  
            prohibited from possessing a gun, to handle handgun ammunition  
            in the course of employment. 

          2)Authorizes a registered handgun ammunition vendor to request a  








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            background clearance from DOJ to determine if an employee is  
            prohibited from possessing a gun, and allows DOJ to charge a  
            fee for the clearance. 

          3)Requires DOJ to keep a centralized registry of all persons,  
            businesses and corporations that are registered handgun  
            ammunition vendors, and allows DOJ to remove any vendor from  
            the registry that violates provisions of this Act. 

          4)Makes it a misdemeanor for any person under 21 to purchase or  
            attempt to purchase handgun ammunition by misrepresenting his  
            or her age or identity.

          5)Makes it an infraction or a misdemeanor for a retail  
            ammunition vendor to sell or display handgun ammunition in a  
            manner that allows ammunition to be accessible without the  
            assistance of the retailer.  

          6)Requires that handgun ammunition may only be purchased in a  
            face-to-face transaction.

          7)Requires, beginning July 1, 2008, that no handgun ammunition  
            seller may sell handgun ammunition without recording the  
            following information on a form prescribed by DOJ: 

             a)   Date of the transaction.
             b)   Name, address, and date of birth of the buyer. 
             c)   Buyer's driver's license or other identification number,  
               and the right thumbprint.
             d)   Brand, type, and amount of ammunition purchased.
             e)   Buyer's signature.
             f)   Salesperson's name.

          8)Requires transaction records be maintained on premises for not  
            less than two years, and makes records subject to inspection,  
            at any time during normal business hours, by law enforcement  
            conducting a relevant investigation.

          9)Requires that on the date of delivery, the ammunition seller  
            submit a report to the DOJ, as prescribed by DOJ, containing  
            the required purchase information. 

          10)Exempts sale or transfer of handgun ammunition between gun  
            dealers, registered handgun ammunition vendors, federal  
            firearms license holders, target facilities, licensed  








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            commercial hunting clubs, gunsmiths, wholesalers, and gun  
            manufacturers and importers. 

          11)Exempts sales and transfers made to authorized law  
            enforcement representatives, as specified.  

          12)Makes a violation of any of the above provisions a  
            misdemeanor, punishable by up to six months in county jail  
            and/or a fine of up to $1,000; or by both. 

          13)Requires DOJ to prepare and submit to the Legislature, by  
            January 1, 2009, a report:

             a)   Recommending a procedure for instantaneous ammunition  
               background checks.
             b)   Integration of that system into the current handgun  
               registration process.
             c)   Feasibility and cost of creating an integrated  
               background check system.
             d)   The effect on DOJ's efforts to update its computerized  
               information systems.
             e)   Statutory changes necessary to implement the system. 

          14)States legislative intent that by July 1, 2011, California  
            have in place a system to instantaneously determine whether a  
            purchaser of handgun ammunition is in a prohibited class. 

           COMMENT

          1)Rationale.  The author notes that although current law  
            prohibits the sale of ammunition to persons in a prohibited  
            class, there is virtually no way to enforce the law. According  
            to the author, "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  








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            to end up in the wrong hands. 

            "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)Current law  makes it an alternate felony/misdemeanor for a  
            person prohibited from owning or possessing a gun under  
            specified provisions of law to possess ammunition.   

           3)Opponents  , representing gun owners, contend there is no  
            evidence that ammunition sales, storage or display is a  
            problem, and suggest that registering ammunition dealers and  
            preparing for instantaneous background checks amounts to  
            harassment of legal businesses and customers. According to the  
            National Shooting Sports Foundation, for example, "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. Criminals have many other ways of obtaining  
            ammunition. This bill would not serve as any kind of crime  
            deterrent." 

           4)Recent legislation.

              a)   AB 2714 (Torrico), 2006, required face-to-face handgun  
               ammunition sales and prohibited handgun ammunition from  
               being sold via contract or common carrier. AB 2714 was  
               vetoed. 

             b)   SB 1152 (Scott), 2004, required ammunition vendors to  
               maintain specified information pertaining to purchasers on  
               a form prescribed by the DOJ. SB 1152 was vetoed. 
           
           


            

           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081 








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