BILL ANALYSIS                                                                                                                                                                                                    







                      SENATE COMMITTEE ON PUBLIC SAFETY
                             Senator Mark Leno, Chair                S
                             2009-2010 Regular Session               B

                                                                     4
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          SB 41 (Lowenthal)                                           
          As Amended April 13, 2009 
          Hearing date:  April 28, 2009
          Penal Code
          SM:br



                               FIREARMS:  RECORD OF SALE  

                                       HISTORY

          Source:  Author

          Prior Legislation: SB 327 (Migden) - 2008, died in Assembly  
          Appropriations
                       AB 1060 (Liu) - Ch. 715, Stats. 2005
                       AB 2431 (Steinberg) - Ch. 602, Stats. 2004
                       SB 824 (Scott) - Ch. 502, Stats. 2003
                       SB 357 (Perata) - 2004, died in Assembly  
          Appropriations
                       SB 238, (Perata) - Ch. 499, Stats. 2003
                       AB 1139 (Thomson) - 2001, gutted and amended to  
          cover different subject

          Support: Brady Campaign to Prevent Gun Violence

          Opposition:National Shooting Sports Foundation, Inc.; Safari  
                   Club International; California Association of Firearms  
                   Retailers; California Sportsman's Lobby; Crossroads of  
                   the West Gun Shows; Outdoor Sportsman's Coalition of  
                   California; California Rifle and Pistol Association





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                                                          SB 41 (Lowenthal)
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                                      KEY ISSUES

           SHOULD FIREARMS DEALERS BE REQUIRED TO PROVIDE A RECEIPT TO  
          DOCUMENT DELIVERY OF A FIREARM?

                                                                (CONTINUED)



          SHOULD THE DEPARTMENT OF JUSTICE BE REQUIRED TO REVISE THE FIREARMS  
          DEALER'S RECORD OF SALE FORM TO INCLUDE A SIGNATURE LINE  
          ACKNOWLEDGING RECEIPT OF THE FIREARM AND SPECIFIED ADVISORIES  
          REGARDING THE RIGHT TO REQUEST FIREARMS OWNERSHIP INFORMATION FROM  
          THE DEPARTMENT OF JUSTICE?

          SHOULD THE LAW BE CLARIFIED REGARDING THE DUTY OF LAW ENFORCEMENT  
          AGENCIES TO REPORT TO DOJ THE DISPOSITION OF WEAPONS DECLARED TO BE  
          A NUISANCE WHETHER THE WEAPON IS RETAINED, TRANSFERRED, SOLD OR  
          DESTROYED?

          SHOULD LAW ENFORCEMENT OFFICERS WHO ACQUIRE A FIREARM IN THE COURSE  
          OF THEIR DUTIES BE EXEMPT FROM FIREARMS TRANSFER REQUIREMENTS WHEN  
          THEY TURN THOSE FIREARMS IN TO THEIR EMPLOYING AGENCY?

          SHOULD LAW ENFORCEMENT AGENCIES BE EXEMPT FROM NORMAL FIREARMS  
          TRANSFER REQUIREMENTS WHEN TRANSFERRING FIREARMS TO SPECIFIED  
          ENTITIES PROVIDED THEY REPORT THE TRANSFER TO THE DEPARTMENT OF  
          JUSTICE?


                                       PURPOSE

          The purpose of this bill is to (1) require DOJ to furnish a  
          person listed as a firearm owner with any information about that  
          ownership; (2) require DOJ to update information it maintains  
          regarding firearm ownership to maintain the accuracy of that  
          information; (3) update various statutes to reflect the name  
          change of the California National Guard Military Museum and  
          Resource Center to the State Military Museum and Resource  




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          Center; (4) clarify that law enforcement agencies shall report  
          to DOJ the disposition of any weapon in their possession whether  
          the weapon is retained, transferred, sold, or destroyed; (5)  
          eliminate duplicative reporting requirements regarding firearms  
          acquired by secondhand dealers; (6) make technical,  
          non-substantive changes to the language of various firearms  
          statutes; (7) permit firearms dealers to submit firearms  
          purchase information to DOJ in other locations than Sacramento;  
          (8) require firearms dealers to provide a firearms buyer with a  
          copy of the dealer record of sale (DROS) form at the time of  
          delivery of the firearm and after the dealer notes the date of  
          delivery and the dealer and purchaser acknowledge the  
          purchaser's receipt of the firearm, as specified; (9) require  
          that, in the case of a private party transaction, a copy of the  
          DROS form will be provided to the buyer by the dealer at the  
          time the form is signed by the seller; (10) require DOJ to add  
          to the DROS form a statement advising purchasers of their rights  
          to request firearms ownership information from DOJ, their right  
          to file reports with DOJ regarding such ownership, and  
          information regarding how to access DOJ's Web site; (11) create  
          exemptions from normal firearms transfer requirements for law  
          enforcement officers who acquire firearms in the course of their  
          duties and deliver them to their employing agency, as specified;  
          (12) create an exemption to normal firearms transfer  
          requirements for peace officers employed by the Department of  
          Fish and Game who take possession of a firearm in the course of  
          their duties and transfer it to their employing agency or to a  
          local law enforcement agency, as specified; and (13) create  
          exemptions from normal firearms transfer requirements for  
          firearms transferred by a law enforcement agency to licensed  
          firearms dealers, wholesalers or manufacturers, so long as the  
          transaction is reported to DOJ, as specified.
          
           Existing Federal Law  :

          1)Requires that persons in the firearms industry and licensed  
            collectors possess a Federal Firearms License (FFL) issued by  
            the Secretary of the Treasury.  (18 U.S.C.  44.)

          2)Generally requires that before an FFL holder can ship or  




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            deliver a firearm to an out-of-state or in-state source the  
            recipient be an FFL holder as well.  (18 U.S.C.  922.)

          3)Requires that firearms dealers and purchasers fill out a form  
            (ATF Form 4473) containing personal identifying information  
            about the purchaser and attesting to the fact that the  
            purchaser is not prohibited from owning a firearm.  The dealer  
            must record, among other things, the date of transfer of any  
            firearm on ATF Form 4473 and this form must be retained by the  
            dealer for at least 20 years.  (18 U.S.C.  922.)

           Existing California Law :

           1)  Requires that persons who sell, lease, or transfer  
              firearms be licensed by California.  (Penal Code   
              12070 and 12071.)

           2)  Sets forth a series of requirements to be state  
              licensed by DOJ, which provides that to be recognized  
              as state licensed a person must be on a centralized  
              list of gun dealers and allows access to the  
              centralized list by authorized persons for various  
              reasons.  (Penal Code  12071.)

           3)  Authorizes DOJ to charge a fee up to $115 to be on the  
              centralized list and allows these funds to be used to  
              finance DOJ compliance efforts.  (Penal Code  12071  
              (f).)

           4)  Requires handguns to be centrally registered at time  
              of transfer or sale by way of transfer forms  
              centrally compiled by the DOJ.  DOJ is required to  
              keep a registry from data sent to DOJ indicating who  
              owns what handgun by make, model, and serial number  
              and the date thereof.  (Penal Code  11106 (a) and  
              (c).)

           5)  Provides that the firearms dealer shall record on  
              the register the date the firearm is delivered.   
              (Penal Code  12077 (b)(3) and (c)(3).)




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           6)  Requires that the dealer shall retain the original  
              copy of the register for at least 3 years.  (Penal  
              Code  12076 (b)(2), 12076 (c)(3).)

           7)  Requires that, if a firearm is purchased and not  
              delivered within 30 days, that fact must be reported  
              to DOJ.  (Penal Code  12071 (b)(19); 27 Code of Fed.  
              Regs. 478.102 (c).)

           8)  Provides that revocation of a license will result  
              where a person fails to comply with numerous  
              requirements, including conducting background checks  
              prior to delivery of firearms, assisting in the  
              registration of handguns, processing private-party  
              firearms transactions, keeping extensive records and  
              submitting the same to DOJ, and making those records  
              available for law enforcement inspection.  (Penal  
              Code  12071, 12072 and 12082.)

           9)  Exempts certain persons including, but not limited  
              to, law enforcement, beneficiaries of an inheritance,  
              and those who are loaned a firearm, as specified,  
              from the state dealer licensing requirements.  (Penal  
              Code  12070 (b).)

           10) Requires all sales, loans, and transfers of firearms  
              to be processed through or by a state-licensed  
              firearms dealer or a local law enforcement agency.   
              (Penal Code  12072 (d).)

           11) Provides that there is a 10-day waiting period when  
              purchasing a handgun through a firearms dealer.   
              During which time, a background check is conducted  
              and a handgun safety certificate is required prior to  
              delivery of the firearm.  (Penal Code  12071 and  
              12072.)

           12) Provides exemptions from the rules on the sales of  
              firearms and the waiting period for  




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              commercial-wholesale transactions.  Other  
              transactions are exempt; but in order to claim the  
              exemption, handgun registration is required, together  
              with proof of safety training.

           13) Requires a person moving to California with a  
              handgun acquired outside California and who did not  
              receive the gun from a California-licensed gun dealer  
              to register the gun with DOJ.  (Penal Code  12072  
              (f)(2).)

           14) Requires that any law enforcement agency that  
              retains custody of any firearm, as specified, or  
              that destroys a firearm found to be a nuisance  
              shall notify the Department of Justice of the  
              retention or destruction.  This notification shall  
              consist of a complete description of each firearm,  
              including the name of the manufacturer or brand  
              name, model, caliber, and serial number.  (Penal  
              Code  12030 (e).)

           This bill  requires DOJ to, upon proper application, furnish, in  
          addition to information contained in the firearms registry  
          maintained by DOJ, any information related to that person's  
          ownership of that firearm reported to the department as it  
          relates to him or her.

           This bill  requires DOJ to update information it maintains  
          regarding firearm ownership to maintain the accuracy of that  
          information.

           This bill  updates various statutes to reflect the name change of  
          the California National Guard Military Museum and Resource  
          Center to the State Military Museum and Resource Center.

           This bill  clarifies that law enforcement agencies shall report  
          to DOJ the disposition of any weapon in their possession whether  
          the weapon is retained, transferred, sold, or destroyed.

           This bill  provides that secondhand dealers who have reported the  




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          acquisition of a handgun under the applicable requirements of the  
          Business and Professions Code need not also report the same  
          transaction under Penal Code provisions pertaining to acquisition  
          of handguns by firearms dealers.

           This bill  makes technical, non-substantive changes to the  
          language of various firearms statutes.

           This bill  authorizes firearms dealers to submit firearms  
          purchase information to DOJ in other locations than Sacramento.

           This bill  requires firearms dealers to provide a firearms buyer  
          with a copy of the dealer record of sale (DROS) form at the time  
          of delivery of the firearm after the dealer notes the date of  
          delivery and the dealer and purchaser acknowledge the  
          purchaser's receipt of the firearm, as specified.

           This bill  requires that, in the case of a private party  
          transaction, a copy of the DROS form will be provided to the  
          buyer by the dealer at the time the form is signed by the  
          seller.

           This bill  requires DOJ to add to the DROS form a statement  
          advising purchasers of their rights to request firearms  
          ownership information from DOJ, their right to file reports with  
          DOJ regarding such ownership, and information regarding how to  
          access DOJ's Web site.

           This bill  creates exemptions from normal firearms transfer  
          requirements for law enforcement officers who acquire firearms  
          in the course of their duties and deliver them to their  
          employing agency within 24 hours.

           This bill  creates an exemption to normal firearms transfer  
          requirements for peace officers employed by the Department of  
          Fish and Game who take possession of a firearm in the course of  
          their duties and transfer it to their employing agency or to a  
          local law enforcement agency within 24 hours.

           This bill  creates exemptions from normal firearms transfer  




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          requirements for firearms transferred by a law enforcement  
          agency to firearms dealers, wholesalers or manufacturers, so  
          long as the transaction is reported to DOJ, as specified.

                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          California continues to face a severe prison overcrowding  
          crisis.  The Department of Corrections and Rehabilitation (CDCR)  
          currently has about 170,000 inmates under its jurisdiction.  Due  
          to a lack of traditional housing space available, the department  
          houses roughly 15,000 inmates in gyms and dayrooms.   
          California's prison population has increased by 125% (an average  
          of 4% annually) over the past 20 years, growing from 76,000  
          inmates to 171,000 inmates, far outpacing the state's population  
          growth rate for the age cohort with the highest risk of  
          incarceration.<1>

          In December of 2006 plaintiffs in two federal lawsuits against  
          CDCR sought a court-ordered limit on the prison population  
          pursuant to the federal Prison Litigation Reform Act.  On  
          February 9, 2009, the three-judge federal court panel issued a  
          tentative ruling that included the following conclusions with  
          respect to overcrowding:

               No party contests that California's prisons are  
               overcrowded, however measured, and whether considered  
               in comparison to prisons in other states or jails  
               within this state.  There are simply too many  
               prisoners for the existing capacity.  The Governor,  
               the principal defendant, declared a state of emergency  
               in 2006 because of the "severe overcrowding" in  
               California's prisons, which has caused "substantial  
               risk to the health and safety of the men and women who  
               ----------------------
          <1>  "Between 1987 and 2007, California's population of ages 15  
          through 44 - the age cohort with the highest risk for  
          incarceration - grew by an average of less than 1% annually,  
          which is a pace much slower than the growth in prison  
          admissions."  (2009-2010 Budget Analysis Series, Judicial and  
          Criminal Justice, Legislative Analyst's Office (January 30,  
          2009).)



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               work inside these prisons and the inmates housed in  
               them."  . . .  A state appellate court upheld the  
               Governor's proclamation, holding that the evidence  
               supported the existence of conditions of "extreme  
               peril to the safety of persons and property."  
               (citation omitted)  The Governor's declaration of the  
               state of emergency remains in effect to this day.

               . . .  the evidence is compelling that there is no  
               relief other than a prisoner release order that will  
               remedy the unconstitutional prison conditions.

               . . .

               Although the evidence may be less than perfectly  
               clear, it appears to the Court that in order to  
               alleviate the constitutional violations California's  
               inmate population must be reduced to at most 120% to  
               145% of design capacity, with some institutions or  
               clinical programs at or below 100%.  We caution the  
               parties, however, that these are not firm figures and  
               that the Court reserves the right - until its final  
               ruling - to determine that a higher or lower figure is  
               appropriate in general or in particular types of  
               facilities.

               . . .

               Under the PLRA, any prisoner release order that we  
               issue will be narrowly drawn, extend no further than  
               necessary to correct the violation of constitutional  
               rights, and be the least intrusive means necessary to  
               correct the violation of those rights.  For this  
               reason, it is our present intention to adopt an order  
               requiring the State to develop a plan to reduce the  
               prison population to 120% or 145% of the prison's  
               design capacity (or somewhere in between) within a  







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               period of two or three years.<2>

          The final outcome of the panel's tentative decision, as well as  
          any appeal that may be in response to the panel's final  
          decision, is unknown at the time of this writing.

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

                                      COMMENTS

          1.  Need for This Bill 

          According to the author:

              The purpose of SB 41 is to make a series of  
              changes to clarify firearms registration  
              procedures while providing additional protections  
              to consumers.  Specifically, SB 41 will notify  
              consumers on the DROS as to what forms they may  
              file with DOJ requesting a list of what guns they  
              own.  It is important for:  (i) persons who did  
              not take possession of guns listed in their name  
              and (ii) or persons who thought that they took  
              possession of gun A and got gun B to have an  
              accurate list.

              By creating a purge mandate, this creates a much  
              more accurate data base. There are concerns about  
              dual registrations, purges, and assurances that  
              guns are otherwise properly registered.

              Finally, the bill clarifies law enforcement  
              disposition and reporting procedures so that the  
              --------------------
          <2>  Three Judge Court Tentative Ruling, Coleman v.  
          Schwarzenegger, Plata v. Schwarzenegger, in the United States  
          District Courts for the Eastern District of California and the  
          Northern District of California United States District Court  
          composed of three judges pursuant to Section 2284, Title 28  
          United States Code (Feb. 9, 2009).



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              flow of weapons is accurately tracked.




          2.  Existing Law - Handgun Registration  

          Since about 1930, any purchase of a handgun from a dealer has  
          been reported to the Department of Justice (or its predecessor  
          agency) for purposes of background checks on the purchaser  
          through the Dealer Report of Sale (DROS) form.  This may be  
          commonly described as registration.  Since 1991, but not before  
          that time, transactions between private parties have been  
          subject to DROS registration through a licensed dealer.   
          Registration of such a transfer may also be done at a law  
          enforcement agency through a Law Enforcement Firearms Transfer  
          (LEFT) form.  (LEFT is seldom used in practice.)  (Penal Code   
          12071, 12072, 12078 12082, 12084.)  Certain exceptions, such as  
          infrequent loans of firearms between persons known to each  
          other, apply.  (Penal Code  12078 (d).)

          Existing law requires that the Department of Justice maintain  
          records of handgun sales and transfers.  (Penal Code  12076  
          (c)(3).)

          3.  Firearms Purchases:  Documenting Delivery  

          Under current law, firearms dealers are required to obtain  
          identification and other information from any prospective  
          firearms purchaser and transmit that information to DOJ by way  
          of the DROS form.  (Penal Code  12076.)  The buyer must wait 10  
          days before taking possession of the firearm, during which time  
          DOJ conducts a background search on the buyer to determine  
          whether the buyer is a person prohibited from owning a firearm  
          (e.g. a convicted felon).  (Penal Code  12071 (b)(3)(A); 12072  
          (c)(1); 12076.)  If DOJ does not notify the dealer that the  
          purchaser is prohibited from owning a firearm, the purchaser may  
          take possession after the 10-day waiting period.  The dealer is  
          then required to record the date and time that the firearm was  
          delivered to the buyer and is required to maintain that record  




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          for at least three years.  (Penal Code  12076 (b)(2); 12076  
          (c)(3); 12077 (b)(3); 12077 (c)(3).)  In the event the buyer,  
          for any reason, does not take possession of the firearm within  
          30 days, that fact must be reported to DOJ.  (Penal Code  12071  
          (b)(19); 27 Code of Fed. Regs. 478.102 (c).)

          This bill addresses the potential for a purchaser to buy a  
          firearm, whereupon the dealer would submit the DROS form to DOJ,  
          but the purchaser then does not take possession of that firearm  
          and, in violation of the law, the dealer fails to report that  
          fact to DOJ.  In such a situation, the would-be purchaser would  
          then still appear on DOJ records as the owner of the firearm of  
          which he or she never, in fact, took possession.  To address  
          this hypothetical possibility, the bill would (1) require a  
                                      signature line to be added to the DROS form to be signed by the  
          purchaser and the dealer to acknowledge delivery; (2) require  
          the dealer to provide a copy of the DROS form to the buyer upon  
          delivery of the firearm; and (3) require DOJ to amend the DROS  
          form to add several advisories regarding the right to request  
          gun ownership records from DOJ and information about how to  
          access DOJ's Web site.



          As noted above, existing law requires the dealer to report to  
          DOJ if the buyer does not take possession of the gun within 30  
          days.  Failure to do so is punishable as a misdemeanor, the  
          forfeiture of the dealer's license, or both.  (Penal Code   
          12071 (b)(19) and 12072 (a)(7) and (g).)  Dealers are also  
          currently required to provide a copy of the DROS form when the  
          buyer takes possession of the firearm if the buyer asks for it.   
          Lastly, existing law allows buyers to check with DOJ to  
          determine whether DOJ lists them as the owner of any firearm.   
          (Penal Code  11106 (c)(3).)  Members may wish to consider  
          whether the protections under current law are sufficient to  
          address the potential for a person being falsely listed with DOJ  
          as the owner of a firearm of which they never actually took  
          possession.






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          IS THERE ANY EVIDENCE THAT FIREARMS DEALERS ARE NOT FOLLOWING  
          THE LAW AND ARE FAILING TO REPORT TO DOJ WHEN A BUYER DOES NOT  
          TAKE DELIVERY OF A FIREARM?

          DOES EXISTING LAW PROVIDE SUFFICIENT PROTECTION AGAINST THIS  
          PERCEIVED PROBLEM?

          4.  Informing DOJ of the Disposition of Nuisance Guns  

          With respect to firearms that are subject to destruction as a  
          nuisance, Penal Code Section 12030 allows law enforcement  
          agencies to (1) use such firearms to carry out its official  
          duties; (2) transfer them to the National Guard or other  
          specified entities; or (3) transfer them to other law  
          enforcement agencies for their use.  This section also requires  
          that any such weapons must be either destroyed or returned to  
          the agency from whence it came, as specified, when it is no  
          longer needed by the receiving agency to carry out its official  
          duties.

          This bill amends Section 12030 to clarify that law enforcement  
          agencies shall report the disposition of such weapons to DOJ  
          whether the weapon is retained, transferred, sold or destroyed.

          SHOULD THIS CLARIFICATION BE MADE?

          5.  Sale, Transfer and Destruction of Other Firearms in the  
          Possession of Law Enforcement  

          This bill amends Penal Code Section 12078 to provide that  
          transfers of firearms by law enforcement agencies to licensed  
          firearms manufacturers, wholesalers, or dealers are exempted  
          from normal firearms transfer requirements so long as these  
          transactions are duly reported to DOJ, as specified.  This bill  
          also provides that normal firearms transfer requirements do not  
          apply to firearms acquired by a peace officer or his or her  
          agent acting in the course and scope of their duties so long as  
          such firearms are turned in to the officers' employing agency  
          within 24 hours of receipt.  Additionally, this bill requires  




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          that any agency that is the registered owner of a firearm and  
          subsequently destroys that firearm shall enter that data into  
          the AFS, as specified.

          SHOULD THERE BE AN EXEMPTION TO NORMAL FIREARMS TRANSFER  
          REQUIREMENTS IN THE CASE OF A LAW ENFORCEMENT OFFICER WHO  
          OBTAINS A FIREARM IN THE COURSE OF HIS OR HER DUTIES AND TURNS  
          IT IN TO HIS OR HER EMPLOYING AGENCY WITHIN 24 HOURS?

          SHOULD TRANSFERS OF FIREARMS BY LAW ENFORCEMENT AGENCIES TO  
          LICENSED MANUFACTURERS, WHOLESALERS OR DEALERS BE EXEMPTED FROM  
          NORMAL FIREARMS TRANSFER REQUIREMENTS SO LONG AS THESE TRANSFERS  
          ARE REPORTED TO DOJ, AS SPECIFIED?

          6.  Different Standard for Fish and Game Officers  

          This bill allows the exemption from normal firearms transfer  
          requirements to apply to peace officers employed by the  
          Department of Fish and Game who acquire a firearm in the course  
          and scope of their duties and who deliver that firearm to either  
          their employing agency or the sheriff or police department in  
          the county where the officer took possession of the firearm, as  
          specified.  This is in contrast to the requirement that other  
          peace officers turn in such weapons to their employing agency  
          within 24 hours.

          SHOULD PEACE OFFICERS EMPLOYED BY THE DEPARTMENT OF FISH AND  
          GAME BE REQUIRED TO TURN IN FIREARMS ACQUIRED IN THE COURSE OF  
          THEIR DUTIES TO THEIR EMPLOYING AGENCY OR LOCAL LAW ENFORCEMENT  
          AGENCY, AS SPECIFIED?



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