BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 362
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          ASSEMBLY THIRD READING
          AB 362 (De Leon)
          As Amended June 1, 2007
          Majority vote 

           PUBLIC SAFETY       5-2         APPROPRIATIONS      12-5        
           
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          |Ayes:|Solorio, De La Torre,     |Ayes:|Leno, Caballero, Davis,   |
          |     |Leno, Ma, Portantino      |     |DeSaulnier, Huffman,      |
          |     |                          |     |Karnette, Krekorian,      |
          |     |                          |     |Lieu, Ma, Nava, Solorio,  |
          |     |                          |     |Feuer                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Aghazarian, Anderson      |Nays:|Walters, Emmerson, La     |
          |     |                          |     |Malfa, Nakanishi, Sharon  |
          |     |                          |     |Runner                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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; and,








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             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  
            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  








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            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.

          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; and,

             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  








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            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  
            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  








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               terms of information and computerized upgrades that the  
               department is currently undertaking; and,

             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.  It is  
            the further intent of the Legislature that the entire program  
            be fee supported.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:

          1)Significant annual costs - in the range of several million  
            dollars - for DOJ to create and maintain a handgun ammunition  
            registry.    

          2)Unknown non-reimbursable 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.

           COMMENTS  :  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  








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          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."

          Please see the policy committee analysis for full discussion of  
          this bill
           

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



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