BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                           Senator Gloria Romero, Chair              A
                             2007-2008 Regular Session               B

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          AB 362 (De Leon)                                            
          As Amended June 28, 2007 
          Hearing date:  July 10, 2007
          Penal Code
          SM:mc


                            HANDGUN AMMUNITION REGISTRATION
                                           
                                       HISTORY


          Source:  Author

          Prior Legislation: AB 2714 (Torrico) - 2006, vetoed 
                       AB 996 (Ridley-Thomas) - 2005, vetoed
                       SB 48 (Scott) - Chapter 681, Statutes of 2005
                       AB 1152 (Scott) - 2004, vetoed

          Support: Alameda County Board of Supervisors; California  
                   Chapters of the Brady Campaign to Prevent Gun Violence;  
                   City and County of San Francisco; Legal Community  
                   Against Violence; Los Angeles Police Chief; Los Angeles  
                   Sheriff's Department; Orange County Citizens for the  
                   Prevention of Gun Violence; Women Against Gun Violence;  
                   City of Los Angeles

          Opposition:San Bernardino County Sheriff; California Association  
                   of Firearms Retailers; California Outdoor Heritage  
                   Alliance; California Rifle and Pistol Association;  
                   California Sportsman's Lobby, Inc.; Crossroads of the  
                   West Gun Shows; Gun Owners of California, Inc.;  
                   National Rifle Association of America; Outdoor  




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                                                           AB 362 (De Leon)
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                   Sportsman's Coalition of California; Safari Club  
                   International; National Shooting Sports Foundation,  
                   Inc.; one private citizen

          Assembly Floor Vote:  Ayes  44 - Noes  34



                                        KEY ISSUES

           BEGINNING JULY 1, 2011, SHOULD HANDGUN AMMUNITION PURCHASERS BE  
          REQUIRED TO POSSESS A PERMIT FOR THAT PURPOSE, EXCEPT AS SPECIFIED,  
          AND SHOULD DOJ BE REQUIRED TO ESTABLISH A SYSTEM FOR ISSUANCE OF  
          SUCH PERMITS?

          BEGINNING JULY 1, 2008, SHOULD ANY PERSON, EXCEPT AS SPECIFIED, WHO  
          SELLS MORE THAN 50 ROUNDS OF HANDGUN AMMUNITION, AS DEFINED, WITHIN  
          A ONE MONTH PERIOD BE REQUIRED TO POSSESS A HANDGUN AMMUNITION  
          VENDOR'S LICENSE, A VIOLATION OF WHICH WOULD BE PUNISHABLE BY A  
          CIVIL FINE OF UP TO $1,000 FOR THE FIRST OFFENSE AND UP TO $10,000  
          FOR SUBSEQUENT VIOLATIONS, AND SHOULD DOJ BE REQUIRED TO ESTABLISH A  
          PROCESS FOR THE ISSUANCE OF SUCH LICENSES?

          SHOULD HANDGUN AMMUNITION VENDORS BE REQUIRED TO COLLECT SPECIFIED  
          DATA ON SALES OF HANDGUN AMMUNITION?

          SHOULD DOJ BE REQUIRED TO CREATE A STATEWIDE DATABASE TO ALLOW  
          HANDGUN AMMUNITION VENDORS TO INSTANTLY VERIFY THE VALIDITY OF A  
          HANDGUN AMMUNITION PURCHASER'S PERMIT TO BUY AMMUNITION?

          SHOULD A MINOR WHO ATTEMPTS TO OR PURCHASES HANDGUN AMMUNITION USING  
          A FALSE ID BE SUBJECT TO A CIVIL FINE OF UP TO $5,000?

          SHOULD, COMMENCING JULY 1, 2011, HANDGUN AMMUNITION VENDORS BE  
          REQUIRED TO CONDUCT INSTANT BACKGROUND CHECKS THROUGH DOJ ON  
          NON-CALIFORNIA RESIDENTS WHO PURCHASE HANDGUN AMMUNITION IN  
          CALIFORNIA?

          SHOULD HANDGUN AMMUNITION VENDORS, COMMENCING JULY 1, 2008, AND  
          UNTIL JULY 1, 2011, BE REQUIRED TO OBTAIN A THUMBPRINT FROM  




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          PURCHASERS?

          SHOULD DOJ BE REQUIRED TO PAY FOR THE IMPLEMENTATION OF THESE  
          PROVISIONS THROUGH FEES CHARGED TO VENDOR LICENSE APPLICANTS AND  
          PURCHASER PERMIT APPLICANTS? 
          
          SHOULD ALL HANDGUN AMMUNITION TRANSFERS THAT TAKE PLACE ON OR AFTER  
          JULY 1, 2008, BE REQUIRED TO OCCUR IN A FACE-TO-FACE TRANSACTION?



                                       PURPOSE

          The purpose of this bill is to (1) require that, by July 1,  
          2011, handgun ammunition purchasers possess a permit for that  
          purpose, except as specified; (2) establish a system for  
          issuance of such permits by the Department of Justice (DOJ); (3)  
          require that by July 1, 2008, except as specified, any person  
          who sells more than 50 rounds of handgun ammunition, as defined,  
          within a one month period to possess a handgun ammunition  
          vendor's license, a violation of which would be punishable by a  
          civil fine of up to $1,000 for the first offense and up to  
          $10,000 for subsequent violations; (4) establish a process for  
          the issuance of such licenses; (5) require collection of  
          specified data on sales of handgun ammunition; (6) require DOJ  
          to create a statewide database to allow handgun ammunition  
          vendors to instantly verify the validity of a handgun ammunition  
          purchaser's permit to buy ammunition; (7) provide that a minor  
          who attempts to or purchases handgun ammunition using a false ID  
          will be subject to a civil fine of up to $5,000; (8) commencing  
          July 1, 2011, require that vendors conduct instant background  
          checks through DOJ on non-California residents who purchase  
          handgun ammunition in California; (9) commencing July 1, 2008,  
          and until July 1, 2011, require that handgun ammunition vendors  
          obtain a thumbprint from purchasers; (10) provide that DOJ shall  
          pay for the implementation of these provisions through fees  
          charged to vendor license applicants and purchaser permit  
          applicants; and (11) require all handgun ammunition transfers  
          that take place on or after July 1, 2008, to occur in a  
          face-to-face transaction.




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           Existing law  states that it is a misdemeanor for any person,  
          corporation, or licensed firearms dealer to sell ammunition to a  
          person under 18 years of age or to sell any ammunition to be  
          used in a handgun to a person under 21 years of age.  (Penal  
          Code  12316(a)(1).)

           Existing law  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   
          12316(a)(2).)

           Existing law  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  12316(a)(2).)

           Existing law  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  12316(b)(2).)

           Existing law  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.  (Penal Code  12323(a).)

           Existing law  makes it an alternate felony/misdemeanor for a  
          person prohibited from possessing a firearm to possess or have  
          under his or her control any ammunition.  (Penal Code   
          12316(b)(1).)

           Existing law  defines relevant federal law as:  "It shall be  




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          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).)

          Vendors
          
           This bill  requires, commencing July 1, 2008, that any person,  
          except as specified, 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:  

                 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:

                  o         Any regulatory or business license, or  
                    licenses required by local government.
                  o         A valid seller's permit issued by the Board of  
                    Equalization.
                  o         Is among those recorded in the centralized  
                    ammunition vendor's registry.
                  o         A certificate of eligibility, as specified.

                 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.

                 Prohibits a registered handgun ammunition vendor from  
               allowing an employee, who the vendor knows or reasonably  




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               should know is prohibited from possessing a firearm, to  
               handle handgun ammunition in the course and scope of his or  
               her employment.

                 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. 

                 Exempts for these requirements:  

                  o         Sales or transfers of handgun ammunition to  
                    licensed handgun ammunition vendors who are licensed  
                    pursuant to Section 12062.
                  o         Sales or transfers of handgun ammunition by a  
                    nonprofit public benefit or mutual benefit  
                    corporation, as specified, if the corporation is  
                    selling ammunition to assist the corporation or local  
                    chapters of the corporation in conducting auctions or  
                    similar events at which firearms are auctioned off and  
                    to fund the activities of the corporation or the local  
                    chapters of the corporation.
                  o         Sales or transfers of handgun ammunition to  
                    authorized law enforcement representatives, as  
                    specified, for exclusive use by those government  
                    agencies if, prior to the delivery, transfer, or sale  
                    of handgun ammunition, written authorization from the  
                    head of the agency authorizing the transaction is  
                    presented to the person from whom the purchase,  
                    delivery, or transfer is being made.  Proper written  
                    authorization is defined as verifiable written  
                    certification from the head of the agency by which the  
                    purchaser or transferee is employed, identifying the  
                    employee as an individual authorized to conduct the  
                    transaction, and authorizing the transaction for the  
                    exclusive use of the agency by which he or she is  
                    employed.
                  o         Sales or transfers of handgun ammunition to  
                    authorized representatives of cities, counties, cities  




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                    and counties, or state or federal governments for  
                    those government agencies in which the entity is  
                    acquiring the ammunition as part of an authorized,  
                    voluntary program in which the entity is buying or  
                    receiving ammunition from private individuals.
                  o         Sales or transfers of handgun ammunition  
                    between immediate family members, spouses, or  
                    registered domestic partners.
                  o         Sales or transfers of handgun ammunition at a  
                    target facility that holds a business or regulatory  
                    license between persons who are on the premises of the  
                    target facility or between persons who are on the  
                    premises of any club or organization organized for the  
                    purposes of practicing shooting at targets upon  
                    established ranges, whether public or private, if the  
                    sale or transfer of the ammunition occurs on the  
                    premises of the target range or on the premises of the  
                    club or organization and is sold to a person who is  
                    using ammunition primarily at the facility and the  
                    entity conducting the sale or transfer is not the  
                    target range or club.

           This bill  provides that a violation of the provisions stated  
          above would be punishable by a civil fine of up to $1,000 for a  
          first violation and up to $10,000 for every subsequent  
          violation.  In addition, this bill provides that, after three  
          violations, a vendor will have their license to sell handgun  
          ammunition permanently revoked and that no person or entity  
          shall sell or otherwise transfer ownership of handgun ammunition  
          after it is permanently removed from the registry.


           This bill  provides that DOJ is authorized to issue handgun  
          ammunition vendor licenses upon an applicant providing a copy of  
          any regulatory or business license, or licenses, required by  
          local government, a valid seller's permit issued by the State  
          Board of Equalization, a federal firearms license if the person  
          is federally licensed, and a certificate of eligibility, as  
          specified, and the department shall inform applicants who are  
          denied licenses of the reasons for the denial in writing.




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           This bill  provides that the handgun ammunition vendor license  
          shall be issued in a form prescribed by DOJ and shall be valid  
          for a period of one year.  DOJ may adopt regulations to  
          administer application procedures and enforcement procedures for  
          the licensee.  DOJ may adopt regulations that establish grounds  
          for suspension or revocation of the license.


           This bill  provides that DOJ may charge handgun ammunition vendor  
          license applicants a fee sufficient to reimburse the department  
          for the costs of administering the license program, maintaining  
          the registry of handgun ammunition vendors, and necessary  
          regulatory functions, including enforcement, provided, however,  
          that the fee shall not exceed fifty dollars ($50).


           This bill  provides that the department shall issue licenses  
          pursuant to this section to the following applicants:


                 Persons licensed pursuant to Section 12071.


                 A person who is on the centralized list maintained by  
               DOJ of persons holding a federal firearms dealer license.


                 A target facility which holds a business or regulatory  
               license.


                 Commercial hunting clubs, game bird clubs, or pheasant  
               clubs licensed by the Department of Fish and Game.


                 Gunsmiths.






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                 Wholesalers.


           Federally licensed manufacturers or importers of firearms.


           This bill  provides that the department shall waive all  
          application fees for all licensed firearms dealers, as  
          specified.


           This bill  provides that the department shall keep a centralized  
          registry of all persons, businesses, and corporations who are  
          vendors.


                 The department may remove from this registry any vendor  
               who violates the provisions of this section.


                 The license of any vendor who violates this section  
               three times shall be revoked, and that person, firm, or  
               corporation shall become permanently ineligible to obtain a  
               license pursuant to this section.


                 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.


           This bill  provides that information compiled from the ammunition  
          vendor's registry shall be made available, upon request, for the  
          following purposes only:


                 For law enforcement purposes.






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                 When the information is requested for the purposes of  
               determining the validity of handgun ammunition deliveries.


           This bill  requires that a vendor shall comply with all of the  
          following:


                 A vendor shall not permit any employee who the vendor  
               knows or reasonably should know is prohibited from  
               possessing a firearm, as specified, from handling handgun  
               ammunition in the course and scope of his or her  
               employment.


                 For an employee of a vendor who is hired after July 1,  
               2008, the vendor shall request a background clearance from  
               DOJ, as specified, to determine if an employee is  
               prohibited from possessing a firearm.  The request shall be  
               made within 45 days of employing the individual.


                 In the case of a person who is employed by a vendor on  
               or before July 1, 2008, the vendor shall request a  
               background clearance from DOJ, as specified, to determine  
               if an employee is prohibited from possessing a firearm, no  
               later August 15, 2008.


                 The department may require the vendor to charge a fee  
               sufficient to reimburse it for the background clearance, a  
               specified.


                 A vendor shall not sell or otherwise transfer ownership  
               of, offer for sale or otherwise offer to transfer ownership  
               of, or display for sale or display for transfer of  
               ownership of any handgun ammunition in a manner that allows  
               that ammunition to be accessible to a purchaser or  
               transferee without the assistance of the vendor or employee  




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               thereof.


                 Commencing July 1, 2008, a vendor shall not sell or  
               otherwise transfer ownership of any handgun ammunition  
               without at the time of delivery recording the following  
               information in a format to be prescribed by the department:


                  o         The date of the transaction.


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


                  o         The brand, type, and amount of ammunition  
                    transferred.


                  o         The transferee's signature.


                  o         The name of the salesperson who processed the  
                    transaction.


                  o         The right thumbprint of the purchaser or  
                    transferee on the above form, unless the purchaser or  
                    transferee presents a valid hunting or sportsman's  
                    license, as specified, or a handgun ammunition  
                    purchase permit in which case the vendor shall record  
                    the number of the license or permit.


                  o         Commencing July 1, 2011, information that the  
                    department may require to ensure the purchaser is  
                    eligible to purchase ammunition, as specified.





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           This bill requires that, commencing July 1, 2008, on the date of  
          delivery of the handgun ammunition, the vendor shall submit a  
          report to the department in a manner prescribed by the  
          department containing specified information.  The required  
          records, as specified, shall be maintained on the premises of  
          the vendor for a period of not less than two years from the date  
          of the recorded transfer and shall be subject to inspection at  
          any time during normal business hours by any peace officer, as  
          specified, or by any other employee of DOJ, provided the officer  
          is conducting an investigation where access to those records is  
          or may be relevant to that investigation, is seeking information  
          about persons prohibited from owning a firearm or ammunition, or  
          is engaged in ensuring compliance with the Dangerous Weapons  
          Control Law (Chapter 1 (commencing with Section 12000) of Title  
          2 of Part 4), or any other laws pertaining to firearms or  
          ammunition.  


           This bill  provides that, if the purchaser is a resident of  
          California, commencing July 1, 2011, prior to the delivery of  
          the handgun ammunition, the vendor of handgun ammunition shall  
          verify that the person who is being delivered the handgun  
          ammunition is the holder of a valid handgun ammunition purchase  
          permit, as specified, by contacting DOJ, in a manner prescribed  
          by DOJ, that the handgun ammunition purchase permit is valid at  
          the time of the delivery and receiving a verification number  
          from the department authorizing the delivery.


           This bill  provides that, commencing July 1, 2011, if a person is  
          not the holder of a handgun ammunition purchase permit because  
          he or she is not a resident of this state, then pursuant to  
          procedures prescribed by DOJ, the vendor shall contact the  
                  department to conduct an instantaneous background check that  
          reasonably verifies that the person is not prohibited from  
          acquiring or possessing handgun ammunition, as specified, and  
          that the person is 21 years of age or older.






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           This bill  provides that, commencing July 1, 2008, the vendor  
          shall not knowingly make a false entry in, fail to make a  
          required entry in, fail to obtain the required thumbprint, or  
          otherwise fail to maintain in the required manner records  
          prepared as specified.  If the right thumbprint is not  
          available, then the vendor shall have the purchaser or  
          transferee use his or her left thumb, or any available finger,  
          and shall so indicate on the form.  If the purchaser or  
          transferee is physically unable to provide a thumbprint or  
          fingerprint, the vendor shall so indicate on the form.


           This bill  provides that, commencing July 1, 2008, no vendor  
          shall refuse to permit a person authorized, as specified, to  
          examine any record prepared in accordance with this section  
          during any inspection conducted pursuant to this section, or  
          refuse to permit the use of any record or information by those  
          persons.


           This bill  provides that to implement the purchaser eligibility  
          verification requirements, commencing July 1, 2008, DOJ may  
          require the vendor to charge each person who is subject to those  
          requirements a fee for the actual processing costs of that  
          transaction, which in any event shall not exceed three dollars  
          ($3) for each transaction and vendors shall transmit, in the  
          manner prescribed by DOJ, the fees collected to DOJ.


           This bill  provides that the requirements that an ammunition  
          purchaser possess an ammunition purchase permit and that  
          specified records be kept of the sale shall not apply to or  
          affect sales or transfer of handgun ammunition by licensed  
          handgun ammunition vendors to any of the following:


                 Licensed firearms dealers, as specified.


                 A licensed handgun ammunition vendor properly identified  




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               as such.


                 A person who is on the centralized list maintained by  
               DOJ, as specified, of licensed federal firearms dealer's.


                 A target facility which holds a business or regulatory  
               license properly identified as such.


                 Commercial hunting clubs, game bird clubs, or pheasant  
               clubs licensed by the Department of Fish and Game, properly  
               identified as such.


                 Gunsmiths, properly identified as such.


                 Wholesalers properly identified as such.


                 Federally licensed manufacturers or importers of  
               firearms, as specified, properly identified as such.


                 A nonprofit public benefit or mutual benefit  
               corporation, as specified, properly identified as such, if  
               the nonprofit public benefit or mutual benefit corporation  
               is selling ammunition to assist the corporation or local  
               chapters of the corporation in conducting auctions or  
               similar events at which firearms are auctioned off and to  
               fund the activities of the corporation or the local  
               chapters of the corporation, and the firearms being  
               auctioned off at the corporation's auctions or events are  
               not primarily handguns.


                 Sales or transfers made to authorized law enforcement  
               representatives, as specified, for exclusive use by those  




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               government agencies if, prior to the delivery, transfer, or  
               sale of handgun ammunition, written authorization from the  
               head of the agency authorizing the transaction is presented  
               to the person from whom the purchase, delivery, or transfer  
               is being made.  Proper written authorization is defined as  
               verifiable written certification from the head of the  
               agency by which the purchaser or transferee is employed,  
               identifying the employee as an individual authorized to  
               conduct the transaction, and authorizing the transaction  
               for the exclusive use of the agency by which he or she is  
               employed.


           This bill  provides that the requirement that the ammunition  
          purchaser possess an ammunition purchase permit shall not apply  
          to or affect sales or transfer of handgun ammunition by licensed  
          handgun ammunition vendors to sworn peace officers, as defined,  
          who are authorized to carry a firearm in the course and scope of  
          their duties.


           This bill  provides that fees received by the department pursuant  
          to this section shall be deposited in the Dealers' Record of  
          Sale Special Account of the General Fund.




          Purchasers


           This bill  provides that commencing March 1, 2011, any person who  
          is 21 years of age or older may apply to DOJ for a handgun  
          ammunition purchase permit, in a format to be prescribed by DOJ.  
           The handgun ammunition purchase permit shall entitle the  
          permittee to purchase handgun ammunition from a licensed handgun  
          ammunition vendor.


           This bill  provides that DOJ shall issue a handgun ammunition  




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          purchase permit to the applicant if all the following conditions  
          are met:


                 The applicant is 21 years of age or older.


                 The applicant is not prohibited from acquiring or  
               possessing a firearm, as specified.


                 The applicant pays the specified fees.


           This bill  provides that, with respect to handgun ammunition  
          purchase permits:


                 Upon receipt of an initial or renewal application, DOJ  
               shall examine its records and is authorized to request  
               records from the State Department of Mental Health, as  
               specified, and the National Instant Criminal Background  
               Check System, as specified, in order to determine if the  
               applicant is prohibited from possessing or acquiring  
               handgun ammunition.  The application shall be approved or  
               denied within 30 days of the date of the application.  If  
               the application is denied, DOJ shall state the reasons for  
               doing so and provide the applicant an appeal process to  
               challenge that denial.


                 The handgun ammunition purchase permit shall be valid  
               for five years from the date of issuance.  DOJ shall send a  
               notice of the expiration of a handgun ammunition purchase  
               permit, by first-class mail or other means that are  
               equivalent such as electronic mail, to the address of the  
               person as shown by the records of the department, not less  
               than 90 days before the expiration date, and shall enclose  
               or contain a form for the renewal of the permit.





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                 The handgun ammunition purchase permit shall be revoked  
               by DOJ upon the occurrence of any event which would have  
               disqualified the holder from being issued the handgun  
               ammunition purchase permit pursuant to this section.


                 The handgun ammunition purchase permit shall be in a  
               tamper-proof form prescribed by DOJ and shall include the  
               name, address, photograph, date of birth, a unique  
               identifying number, expiration date from the date of  
               issuance, physical characteristics, including the height,  
               weight, eye color, and hair color of the permitholder, and  
               other information as may be prescribed by DOJ.  DOJ may  
               integrate the identification into the permitholder's  
               California driver's license or identification number, or  
               the Certificate of Eligibility program, as specified, or  
               other similar means.


                 The department shall recover the full cost of  
               administering this section by assessing the following  
               application fees:


                  o         For the initial application: thirty-five  
                    dollars ($35).


                  o         For each renewal application: fifteen dollars  
                    ($15).


                 All fees received pursuant to this section shall be  
               deposited into the Dealer Record of Sale Account.


                 The implementation of this section by the department is  
               exempt from the Administrative Procedure Act, as specified.





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                 DOJ shall annually review and shall adjust the specified  
               fees, if necessary, to fully fund, but not to exceed the  
               actual costs of, the permit program provided for by this  
               section, including enforcement of the program.


                 DOJ authorized to adopt regulations to implement the  
               provisions of this section.


          The Database


           This bill  requires that, in order to implement the handgun  
          ammunition purchase permit provisions of this bill, DOJ shall do  
          all of the following on or before January 1, 2011:


                 Establish a state database that licensed handgun  
               ammunition vendors may instantaneously access by telephone  
               or other electronic means, as specified by DOJ, with  
               information to be supplied immediately on whether the  
               presented handgun ammunition purchase permit is valid.  The  
               database shall record when a vendor contacts DOJ to verify  
               that a handgun ammunition purchase permit is valid, and  
               shall provide an authorization number for the delivery of  
               the ammunition to that permitholder.


                 Upon establishment of the database, notify each vendor  
               on the licensed handgun ammunition vendor registry of the  
               existence and purpose of the system and the means to be  
               used to access the database.


                 Establish days and hours during which the telephone  
               number or other electronic means shall be operational for  
               purposes of responding to inquiries, taking into  
               consideration the normal business hours of retailers.




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                 Prescribe procedures whereby the vendor shall contact  
               DOJ, if a person is not the holder of a handgun ammunition  
               purchase permit because he or she is not a resident of this  
               state, to conduct an instantaneous background check that  
               reasonably verifies that the person is not prohibited from  
               acquiring or possessing handgun ammunition, because they  
               are prohibited from possessing a firearm.


           This bill  provides that DOJ is authorized to adopt regulations  
          to implement the provisions of this section.


           This bill  provides that any person under 21 years of age who  
          purchases, or who attempts to purchase, handgun ammunition, as  
          defined, by using a false identification document, or by  
          otherwise misrepresenting the person's age, and any minor who  
          purchases, or attempts to purchase, any ammunition by using a  
          false identification document, or otherwise misrepresenting the  
          person's age, shall be subject to a civil fine of up to $5,000.


           This bill  defines "handgun ammunition" to exclude ammunition  
          designed and intended to be used in an "antique firearm" as  
          defined.

           
           Face to Face Transaction Requirement
           
          This bill  provides that, commencing July 1, 2008, the sale or  
          other transfer of ownership of handgun ammunition may only occur  
          in a face-to-face transaction with the seller or transferor  
          being provided bona fide evidence of identity from the purchaser  
          or other transferee.  Bona fide evidence of identity means a  
          document issued by a federal, state, county, or municipal  
          government, or subdivision or agency thereof, including, but not  
          limited to, a motor vehicle operator's license, state  
          identification card, identification card issued to a member of  




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                                                           AB 362 (De Leon)
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          the armed forces, or other form of identification that bears the  
          name, date of birth, description, and picture of the person.


           This bill  provides that the face-to-face transaction requirement  
          shall not apply to or affect the deliveries, transfers, or sales  
          of, handgun ammunition to any of the following:


                 Authorized law enforcement representatives, as  
               specified, for exclusive use by those government agencies  
               if, prior to the delivery, transfer, or sale of the handgun  
               ammunition, written authorization from the head of the  
               agency employing the purchaser or transferee, is obtained  
               identifying the employee as an individual authorized to  
               conduct the transaction, and authorizing the transaction  
               for the exclusive use of the agency employing the  
               individual.


                 Sworn peace officers, as defined, who are authorized to  
               carry a firearm in the course and scope of their duties.


                 Licensed importers and manufacturers of handgun  
               ammunition or firearms, as specified, and licensed handgun  
               ammunition vendors.


                 Persons who are on the centralized list maintained by  
               the DOJ of licensed federal firearms dealers.


                 Persons whose licensed premises are outside this state  
               who are federally licensed firearms dealers.


                 Persons licensed as collectors of firearms, as  
               specified, whose licensed premises are within this state  
               who have a current certificate of eligibility issued to him  




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                                                           AB 362 (De Leon)
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               or her by DOJ, as specified. 


              RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION IMPLICATIONS
          
          California currently faces an extraordinary and severe prison  
          and jail overcrowding crisis.  California's prison capacity is  
          nearly exhausted as prisons today are being operated with a  
          significant level of overcrowding.<1>  In addition, California's  
          jails likewise are significantly overcrowded.  Twenty California  
          counties are operating under jail population caps.  According to  
          the State Sheriffs' Association, "counties are currently  
          releasing 18,000 pre and post-sentenced inmates every month and  
          many counties are so overcrowded they do not accept misdemeanor  
          bookings in any form, . . . ."<2>  In January of this year the  
          Legislative Analyst's office summarized the trajectory of  
          California's inmate population over the last two decades:

              During the past 20 years, jail and prison  
              populations have increased significantly.  County  
              jail populations have increased by about 66  
              percent over that period, an amount that has been  
              limited by court-ordered population caps.  The  
              prison population has grown even more dramatically  
              during that period, tripling since the  
              mid-1980s.<3>

          The level of overcrowding, and the impact of the population  
          crisis on the day-to-day prison operations, is staggering:

              As of December 31, 2006, the California Department  
              of Corrections and Rehabilitation (CDCR) was  
              estimated to have 173,100 inmates in the state  
              prison system, based on CDCR's fall 2006  
              --------------------
          <1>  Analysis of the 2007-08 Budget Bill:  Judicial and Criminal  
          Justice, Legislative Analyst's Office (February 21, 2007).
          <2>  Memorandum from CSSA President Gary Penrod to Governor,  
          February 14, 2007.
          <3>  California's Criminal Justice System:  A Primer.   
          Legislative Analyst's Office (January 2007).



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                                                           AB 362 (De Leon)
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              population projections.  However, . . . the  
              department only operates or contracts for a total  
              of 156,500 permanent bed capacity (not including  
              out-of-state beds, . . . ), resulting in a  
              shortfall of about 16,600 prison beds relative to  
              the inmate population.  The most significant bed  
              shortfalls are for Level I, II, and IV inmates, as  
              well as at reception centers.  As a result of the  
              bed deficits, CDCR houses about 10 percent of the  
              inmate population in temporary beds, such as in  
              dayrooms and gyms.  In addition, many inmates are  
              housed in facilities designed for different  
              security levels.  For example, there are currently  
              about 6,000 high security (Level IV) inmates  
              housed in beds designed for Level III inmates.

              . . .  (S)ignificant overcrowding has both  
              operational and fiscal consequences.  Overcrowding  
              and the use of temporary beds create security  
              concerns, particularly for medium- and  
              high-security inmates.  Gyms and dayrooms are not  
              designed to provide security coverage as well as  
              in permanent housing units, and overcrowding can  
              contribute to inmate unrest, disturbances, and  
              assaults.  This can result in additional state  
              costs for medical treatment, workers'  
              compensation, and staff overtime.  In addition,  
              overcrowding can limit the ability of prisons to  
              provide rehabilitative, health care, and other  
              types of programs because prisons were not  
              designed with sufficient space to provide these  
              services to the increased population.  The  
              difficulty in providing inmate programs and  
              services is exacerbated by the use of program  
              space to house inmates.  Also, to the extent that  
              inmate unrest is caused by overcrowding,  
              rehabilitation programs and other services can be  
              disrupted by the resulting lockdowns.<4>



          ----------------------
          <4>  Analysis 2007-08 Budget Bill, supra, fn. 1.



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                                                           AB 362 (De Leon)
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          As a result of numerous lawsuits, the state has entered into  
          several consent decrees agreeing to improve conditions in the  
          state's prisons.  As these cases have continued over the past  
          several years, prison conditions nonetheless have failed to  
          improve and, over the last year, the scrutiny of the federal  
          courts over California's prisons has intensified.

          In February of 2006, the federal court appointed a receiver to  
          take over the direct management and operation of the prison  
          medical health care delivery system from the state.   Motions  
          filed in December of 2006 are now pending before three federal  
          court judges in which plaintiffs are seeking a court-ordered  
          limit on the prison population pursuant to the federal Prison  
          Litigation Reform Act.  Medical, mental health and dental care  
          programs at CDCR each are "currently under varying levels of  
          federal court supervision based on court rulings that the state  
          has failed to provide inmates with adequate care as required  
          under the Eighth Amendment to the U.S. Constitution.  The courts  
          found key deficiencies in the state's correctional programs,  
          including:  (1) an inadequate number of staff to deliver health  
          care services, (2) an inadequate amount of clinical space within  
          prisons, (3) failures to follow nationally recognized health  
          care guidelines for treating inmate-patients, and (4) poor  
          coordination between health care staff and custody staff."<5>

           This bill  does not appear to aggravate the prison and jail  
          overcrowding crisis outlined above.

                                      COMMENTS

          1.  Need for This Bill  

          According to the author:

               After some years of declining violent crime, according  
               to the Department of Justice, 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 LA  


               ----------------------
          <5>  Primer, supra, fn. 4.



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               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.<6> 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 hasn't  
                                                                                      enacted any legislation to prevent criminals and gang  
               members who already have guns from accessing the  
               ammunition that drives this tragic violence.  

               ----------------------
          <6> RAND Corporation. "RAND study finds substantial amounts of  
          ammunition bought by felons, others prohibited from buying  
          bullets." http://www.rand.org/news/press.06/10.05.html. 5  
          October 2006.



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                                                           AB 362 (De Leon)
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               Bullets are ending up in guns and in the wrong hands  
               across California and we have no idea who is selling  
               this dangerous product. AB 362 would cut off the easy  
               access to handgun ammunition and this measure would  
               enact a regulatory structure necessary to prevent  
               gangs and felons from easily acquiring ammunition.

          2.  Interstate Commerce Clause and Federal Preemption Issues  

          This bill contains requirement that, after July 1, 2008, all  
          handgun ammunition transfers take place in a face-to-face  
          transaction.  One effect of this would be to ban all Internet  
          sales of handgun ammunition.  Last year, AB 2714 (Torrico)  
          proposed to place restrictions on Internet sales of ammunition.   
          This Committee's analysis of that bill contained the following  
          information on the issues of potential Commerce Clause  
          implications and Federal Preemption.  This information would  
          appear to be applicable to the proposed face-to-face transaction  
          requirement of this bill.

               Because the bill would regulate sales of specified  
               types of ammunition from out-of-state sellers to  
               consumers in California, it would have an effect on  
               interstate commerce.  However, the author's office has  
               received an opinion from Legislative Counsel stating  
               that the bill would not violate the commerce clause of  
               the U.S. Constitution because its requirements apply  
               equally to in-state and out-of-state transactions and  
               therefore the bill does not discriminate against  
               interstate commerce either on its face or as applied.   
               (Legislative Counsel Opinion #0606880.)

               Another potential constitutional issue is whether this  
               area is so pervasively regulated by federal law that  
               all regulation of sales of handgun ammunition is  
               preempted by federal law.  However, legal counsel for  
               the Bureau of Alcohol, Tobacco, Firearms and  
               Explosives confirms that legislative changes to the  
               federal firearms laws in 1986 largely deregulated  
               interstate controls over the shipment of ammunition.   




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                                                           AB 362 (De Leon)
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               That being the case, this bill is unlikely to raise an  
               issue of federal preemption.

          3.  Ammunition Sales and the Prohibited Armed Persons Database  

          Current law establishes a Prohibited Armed Persons Database  
          which allows DOJ to run a background check on new gun purchasers  
          to determine if they are prohibited from possessing a firearm.   
          This also allows DOJ to enter information regarding new events,  
          like a felony conviction, that may prohibit a person from  
          possessing a gun, and to check the database of gun owners to see  
          if the felon is a registered gun owner.  This bill would require  
          DOJ to check the Prohibited Armed Persons Database whenever a  
          person attempts to purchase handgun ammunition.  However, under  
          federal law, DOJ's authority to request a federal background  
          check (a "NICS" check) is triggered, so to speak, by the  
          attempted purchase of a firearm.  To initiate such a background  
          check due to an attempted purchase of ammunition is not  
          permitted under federal law.  (28 Code of Federal Regulations,  
          section 25.6.)

          4.  Restrictions on Handgun Ammunition Sales of 50 Rounds or More  
            and Exceptions to the Rule  

          This bill requires that, as of July 1, 2008, no person shall  
          transfer more than 50 rounds of handgun ammunition in any month  
          unless that person is a licensed dealer of such ammunition.   
          However, the bill also contains numerous exceptions to the  
          licensing requirement.  At least one exemption appears to create  
          issues of both due process as well as the overall enforceability  
          of this prohibition.  The following ammunition sales are  
          exempted from the licensing requirement:

               Sales or transfers of handgun ammunition at a target  
               facility that holds a business or regulatory license  
               between persons who are on the premises of the target  
               facility or between persons who are on the premises of  
               any club or organization organized for the purposes of  
               practicing shooting at targets upon established  
               ranges, whether public or private, if the sale or  




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                                                           AB 362 (De Leon)
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               transfer of the ammunition occurs on the premises of  
               the target range or on the premises of the club or  
               organization and is sold to a person who is using  
               ammunition primarily at the facility and the entity  
               conducting the sale or transfer is not the target  
               range or club.

          (Pg. 12, lines 27-36.)

          The first issue this raises is what does it mean to say "using  
          ammunition primarily at the facility?"  Does it mean that an  
          unlicensed vendor could sell 100 cases of handgun ammunition to  
          a person who holds no handgun ammunition purchaser's permit so  
          long as the buyer used 51 of the cases of ammunition at the  
          firing range over the course of the next ten years?  

          The scope of this exception is vague.  A statute may be  
          unconstitutionally vague if it fails to give adequate notice of  
          what behavior is prohibited.  The California Supreme Court in  
           People v. McCoy  (2002) 27 Cal.4th 601, 634, has reiterated the  
          rule: A statute that either forbids or requires the doing of an  
          act in "terms so vague that men of common intelligence must  
          necessarily guess at its meaning and differ as to its  
          application violates the first essential of due process of law."  
           (  Connally v. General Const. Co  . (1926) 269 U.S. 385, 391.)  

          Aside from the vagueness issue, the scope of the exemption seems  
          to, if not swallow the rule, make it extremely easy to  
          circumvent.  Under this exemption, it would appear that any  
          number of ammunition sales of any quantity of ammunition would  
          be exempt from the licensing requirement, so long as they took  
          place at a firing range and the buyer uses an undefined amount  
          of the ammunition at the range over an undefined amount of time.

          DO THE EXCEPTIONS TO THE LICENSING REQUIREMENT LEAVE MUCH OF THE  
          RULE? 

          5.  Penalties  

          The proposed new Penal Code section 12062 would create numerous  




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                                                           AB 362 (De Leon)
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          requirements for ammunition sellers including collecting  
          personal identifying information from buyers, fingerprinting  
          buyers, running background checks on employees and prospective  
          new employees, not allowing ammunition to be displayed in a  
          manner that allows it to be accessible to the buyer without the  
          assistance of the vendor, etc.  Upon violation of these  
          provisions DOJ may "remove [the vendor] from the registry,"  
          i.e., revoke the vendor's handgun ammunition vendor's license.   
          (Pg. 14, lines 3-4.)  Confusingly, the bill also provides that  
          DOJ "shall issue" a license to several classes of people  
          including, for example, licensed gun dealers, gunsmiths,  
          wholesalers, etc.  Therefore, after DOJ has revoked a vendor's  
          license, the vendor could simply reapply for another license and  
          DOJ would be required to issue it.  Upon three violations, the  
          vendor would lose their license permanently.  (Pg. 14, lines  
          5-8.)  

          SHOULD DOJ BE REQUIRED TO REISSUE A LICENSE TO A VENDOR AFTER  
          THE FIRST AND SECOND VIOLATIONS?

          The bill further provides that any vendor who has been  
          permanently removed from the handgun ammunition vendors  
          "registry" (DOJ's list of handgun ammunition vendor licensee's)  
          is  permanently barred from selling or otherwise transferring  
          handgun ammunition  .  (Page 11, lines 28-31.)  This prohibition  
          would apply to situations where licensing is not even required.   
          For example, transfers between family members.  Therefore, the  
          bill would appear to prohibit a dealer who permanently lost  
          their ammunition vendor's license from ever transferring any  
          handgun ammunition to their spouse.  

          The loss of a vendor's license after either the first or the  
          second violation would not affect the vendor's ability to sell  
          ammunition under one of the broad exceptions to the licensing  
          requirement (see Comment 4 above.)  Therefore, the effect of  
          this potential lifetime restriction could be to discourage these  
          vendors from operating under a license and to simply rely on  
          unregulated sales of ammunition under one of the exceptions to  
          the licensing requirement.





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                                                           AB 362 (De Leon)
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          WOULD THE POTENTIAL LIFETIME BAN ON ANY HANDGUN AMMUNITION  
          TRANSFERS ENCOURAGE VENDORS TO FOREGO LICENSES AND RELY ON  
          UNREGULATED SALES UNDER ONE OF THE EXCEPTIONS TO THE LICENSING  
          REQUIREMENT?

          Additionally, the proposed penalties appear to be inconsistent  
          with existing penalties for selling ammunition to persons under  
          the age of 21.  Under this bill the only penalty applicable to a  
          handgun ammunition vendor who sells handgun ammunition to a  
          buyer who has no handgun ammunition purchaser's permit (because,  
          let's say, the person is under 21) is the potential loss of  
          their vendor's license.  Under existing law, sales of handgun  
          ammunition to a person under 21 is a misdemeanor, punishable by  
          up to 6 months in jail, a fine of $1,000, or both.  (Penal Code  
          section 12316(a)(1)(B).)  Because the vendor has violated both  
          statutes by selling to the underage buyer, does this create  
          confusion as to which penalty should apply?

          ARE THE PROPOSED PENALTIES INCONSISTENT WITH EXISTING PENALTIES  
          FOR SALES OF HANDGUN AMMUNITION TO A PERSON UNDER 21?

          The proposed new Penal Code section 12318 would provide:

               Commencing July 1, 2008, the sale or other transfer of  
               ownership of handgun ammunition may only occur in a  
               face-to-face transaction with the seller or transferor  
               being provided bona fide evidence of identity from the  
               purchaser or other transferee.

          One significant effect of this requirement would be to ban  
          Internet sales of handgun ammunition.  However, this section  
          contains no sanction at all for its violation.  Is it sound  
          public policy to create such significant prohibitions that carry  
          no sanction if they are violated?  Here again this statute could  
          create confusion as to the penalty, if any, if a person is  
          prosecuted for selling handgun ammunition to a person under 21  
          via a non-face-to-face-transaction.

          DOES THE BILL CREATE CONFUSION AS TO APPLICABLE PENALTIES FOR  
          EXISTING CRIMES?




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                                                           AB 362 (De Leon)
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          IS IT GOOD POLICY TO CREATE SWEEPING PROHIBITIONS THAT CARRY NO  
          SANCTION IF THEY ARE VIOLATED?

          6.  AB 996 (Ridley-Thomas) (2005) Veto Message  

          AB 996 (Ridley-Thomas) (2005) would have required, similarly to  
          this bill, specified types of handgun ammunition to be sold in a  
          manner such that it would not be accessible to the purchaser  
          without the assistance of a salesperson.  Governor  
          Schwarzenegger vetoed AB 996, issuing the following veto  
          message:

               This bill is unnecessary because there has been no  
               documentation of a
               problem with the theft of ammunition from retail  
               establishments.  In
               addition, I have just signed SB 48 by Senator Scott  
               into law which
               will ensure those underage will no longer be  
               purchasing ammunition.

               Requiring retail ammunition sellers to store any  
               handgun ammunition
               offered for sale in a manner inaccessible to the  
               purchaser would
               impose more regulation in California without a  
               corresponding benefit
               to public safety.  It is not clear how requiring store  
               employees to
               obtain and hand customers ammunition instead of  
               letting customers
               choose their own ammunition will curb crimes committed  
               with firearms.

          7.  Arguments in Support  

          The Brady Campaign to Prevent Gun Violence states:

               Numerous laws relate to firearms.  Ammunition, the  




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                                                           AB 362 (De Leon)
                                                                      PageE

               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 also unknown.  This far-reaching bill would take a  
               major step in addressing all of these issues.

          The Alameda County Board of Supervisors states:































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               After some years of declining violent crime, according  
               to the Department of Justice, gun violence is once  
               again on the rise plaguing California with an increase  
               of over 34% in six years - from 1999 to 2005.  In 2002  
               - 2004 Oakland recorded 315 homicides.  247 or 78% of  
               these victims were killed with firearms.  200 of these  
               firearm deaths were attributable to handguns.  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.   
               While the State has recently enacted legislation to  
               keep guns out of the wrong hands, to date it has not  
               enacted legislation to prevent criminals and gang  
               members who already have guns from accessing the  
               ammunition that drives this upswing in tragic  
               violence.

          8.  Arguments in Opposition  

          The California Association of Firearms Retailers states:

               Proposed Penal Code section 12317 would make  
               comparison shopping of the many different ammunition  
               brands and loading combinations virtually impossible.   
               No store clerk would have the time to personally bring  
               boxes of ammunition for each customer's inspection,  
               and reading of the label and price on the box.  There  
               are just too many different products, and retailers  
               simply do not have the extra personnel and resources  
               that AB 362 would require.

               Only the largest stores would have enough storage  




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                                                           AB 362 (De Leon)
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               space away from customer access to comply with AB 362.  
                Smaller stores absolutely have to have ammunition  
               shelf space available to their customers as most do  
               not have enough non-accessible storage area.  Some who  
               rely heavily on ammunition sales for revenue may  
               actually be forced out of business if AB 362 becomes  
               law.

          The Gun Owners of California, Inc., states:

               GOC cannot connect the subjects of this bill with the  
               author's desire to curb crime.  Requiring ammunition  
               sellers to register and keep more records harasses the  
               vendors but will in no way impact or improve crime  
               stats.  The same for the DOJ keeping a registry of the  
               registered sellers.  Registration does not prevent the  
               committing of crime.

               The author cites Los Angeles as an area where crime  
               statistics are escalating.  How could it not when the  
               citizens in that area are constricted more and more  
               every year by laws that do not curb crime but curb  
               only the freedom of the gun owner to defend self and  
               family?



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