BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 41
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          Date of Hearing:   June 30, 2009
          Counsel:                Kimberly A. Horiuchi


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                Juan Arambula, Chair

                    SB 41 (Lowenthal) - As Amended:  June 23, 2009
           
           
           SUMMARY  :  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 and after the dealer notes the date  
          of delivery and the dealer and purchaser acknowledge the  
          purchaser's receipt of the firearm, as specified.  Specifically,  
           this bill  :   

          1)Requires the Department of Justice (DOJ) to, upon proper  
            application, furnish, in addition to information contained in  
            the firearms registry, as specified, any information related  
            to that person's ownership of the firearm reported to DOJ, as  
            specified and that DOJ update the information it maintains  
            regarding firearm ownership, as specified.  

          2)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. 

          3)Clarifies that law enforcement agencies shall report to DOJ  
            the disposition of any weapon in its possession whether the  
            weapon is retained, transferred, sold, or destroyed and  
            permits firearms dealers to submit firearms purchase  
            information to DOJ in other locations than Sacramento. 

          4)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. 

          5)Creates 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 LAW  :









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          1)Provides that the sale, loan or transfer of firearms in almost  
            all cases must be processed by, or through, a state-licensed  
            dealer or a local law enforcement agency with appropriate  
            transfer forms being used, as specified.  In those cases where  
            dealer or law enforcement processing is not required, a  
            handgun change of title report must still be sent to DOJ.   
            (Penal Code 12078.)

          2)Requires that in connection with any private party sale, loan  
            or transfer of a firearm, a licensed dealer must provide the  
            DOJ with specified personal information about the seller and  
            purchaser as well as the name and address of the dealer.  This  
            personal information of buyer and seller required to be  
            provided includes the name; address; phone number; date of  
            birth; place of birth; occupation; eye color; hair color;  
            height; weight; race; sex; citizenship status; and a driver's  
            license number, California identification card number or  
            military identification number.  A copy of the DROS,  
            containing the buyer and seller's personal information, must  
            be provided to the buyer or seller upon request.  (Penal Code  
            12076.)

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

          4)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 Section 12071.)

          5)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  
            Sections 12071, 12072 and 12082.)

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








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          7)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 Section 12072(d).]

           FISCAL EFFECT  :   Unknown

           COMMENTS  : 

           1)Author's Statement  : According to the author, "Currently,  
            persons who acquire, dispose of, or move into California with  
            a handgun have to go through a handgun registration process.   
            With the surge in sales and increase of DROS forms, it is  
            important to ensure accuracy.  SB 41 provides additional  
            consumer protections by requiring the dealer to obtain a  
            signature when delivering the gun to the consumer; and,  
            improving the manner in which law enforcement reports  
            acquisitions, ownership, and disposition of firearms obtained  
            in the course and scope of their duties."  

           2)Recording the Date and Time of Handgun Delivery  :  Since about  
            1930, any purchase of a handgun from a dealer was reported to  
            DOJ (or its predecessor agency) for purposes of background  
            checks on the purchaser through the DROS form.  This may be  
            commonly described as "registration".  Since 1991,  
            transactions between private parties have been subject to DROS  
            registration through a licensed dealer.  Registration of such  
            a transfer may also be completed at a law enforcement agency  
            through a Law Enforcement Firearms Transfer (LEFT) form.   
            (Penal Code Sections 12071, 12072, 12078 12082, and 12084.)   
            Certain exceptions, such as infrequent loans of firearms  
            between persons known to each other, apply.  [Penal Code  
            Section 12078(d).]  Existing law requires that the DOJ  
            maintain records of handgun sales and transfers.  [Penal Code  
            Section 12076(c)(3).]

          Before a consumer purchasing a handgun in California may take  
            possession of the gun, he or she must wait 10 days from the  
            date of purchase.  During this time, the buyer's personal  
            identifying information is transmitted to DOJ for a background  
            check to determine whether he or she is prohibited from owning  
            a firearm.  After the waiting period has expired and the  
            background check is completed, current law requires the dealer  
            to record on the DROS form the date and time of delivery of  
            the firearm to the purchaser.  The DROS form prepared by the  








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            DOJ and used by licensed dealers in California, as modified  
            October 2003, does contain at the top under "Transaction  
            Information" a line for both "Delivery Date" and "Time" of  
            that delivery, which reflects the changes made to Penal Code  
            Section 12077 by SB 824 (Scott), Chapter 502, Statutes of  
            2003.  Dealers must keep that form and make it available for  
            inspection by law enforcement officials; however, there is  
            some debate about whether that information must be submitted  
            to DOJ as a matter of course.  

          This issue was addressed in SB 357 (Perata) of the 2003-04  
            Legislative Session.  At that time, Legislative Counsel issued  
            an opinion that DOJ could require dealers to write the  
            delivery date on DROS registers.  However, DOJ could not  
            compel dealers to submit the information on delivery to DOJ;  
            DOJ could only enter that information into its Automated  
            Firearms System (AFS) if DOJ obtains the delivery information  
            by physically inspecting the registry kept by dealers.  This  
            bill requires handgun dealers to not only record the date of  
            delivery of the handguns they sell but to transmit that data  
            to DOJ.  

           3)Documenting Delivery in Firearms Purchases  :  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 Section 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 such as  
            a convicted felon.  (Penal Code Sections 12071(b)(3)(A),  
            12072(c)(1) and 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 for at least three years.  [Penal Code  
            Sections 12076(b)(2), 12076(c)(3), 12077(b)(3), and  
            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 Section 12071 (b)(19);  
            27 Code of Fed. Regs. 478.102 (c).]

          Existing law requires the dealer to report to DOJ if the buyer  
            does not take possession of the gun within 30 days.  Failure  








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            to do so is punishable as a misdemeanor, the forfeiture of the  
            dealer's license, or both.  [Penal Code Sections 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 Section 11106 (c)(3).]

           4)ACR 73  :  In 2006, the Governor signed ACR 73 (McCarthy),  
            Chapter 128, Statutes of 2007, asking the California Law  
            Revision Commission (CLRC) to revise various provisions of the  
            Penal Code related to firearms.  The CLRC is required to  
            prepare and submit recommended legislation by July 1, 2009.   
            ACR 73 focused the CLRC in revisions that accomplished the  
            following objectives: 

          "Reduce the length and complexity of current sections; avoid  
            unnecessary use of cross-references; neither expand nor  
            contract the scope of criminal liability under current  
            provisions; in the event that the commission's draft changes  
            the scope of criminal liability under the current provisions,  
            this shall be made explicit in the commission's draft or any  
            commentary related to the draft; to the extent compatible with  
            these objectives, use common definitions of terms, and;  
            organize existing provisions in such a way that similar  
            provisions are located in close proximity to each other."

          In vetoing SB 1140 (Scott), of the 2003-04 Legislative Session,  
            related to the criminal storage of firearms around children,  
            the Governor stated, "Before a government exercises its power  
            to take away ones liberty, it should be clear to every person  
            what actions will cause them to forfeit their freedom.   
            Instead of adding to the lengthy and complex area of firearm  
            laws, a reorganization of the current laws should be  
            undertaken to ensure that statutes that impose criminal  
            penalties are easily understandable."

          The author of ACR 73 stated, "In particular, the laws relating  
            to the transfers of firearms are lengthy, with numerous  
            cross-references, highly fact-specific exemptions, and complex  
            provisions.  For example, Penal Code section 12078 is 5,880  
            words long and occupies 11 pages if printed in a 12 point font  
            with conventional margins.  The section has cross-references  
            to many scattered sections of other firearms provisions, some  








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            of them hundreds of sections away.  The firearms laws occupy  
            over 100 pages of an un-annotated version of the Penal Code  
            when printed in dual column in tiny print.  These areas of the  
            law are not for legal experts only.  Firearms owners, licensed  
            dealers, and law enforcement need to be able to interpret  
            these provisions in order to comply with the law and avoid  
            criminal liability.  Ambiguity and confusion do not promote  
            the public policy goals that those laws were designed to  
            accomplish.  ACR 73 is designed to task the CLRC, a neutral  
            body of legal experts, with the task of seeing if they can  
            simplify and reorganize these laws.  It also includes a  
            statement of legislative intent that when the Commission's  
            work is complete that it will be tasked with addressing other  
            portions of the firearms laws."  Does it make more sense to  
            delay non-urgent changes to the firearm codes until the CLRC  
            returns with its recommendations?

           5)Argument in Support  :  According to the  Brady Campaign to  
            Prevent Gun Violence  , "SB 41 would require, in part, that the  
            DROS forms for a firearms transactions have signature lines to  
            be completed by both the dealer and the purchaser of a firearm  
            when the firearm is actually picked up from the dealer.  In  
            addition, this bill would require the DOJ to maintain accurate  
            records, including the duty to purge records when it can be  
            shown that a person never took possession of a firearm.  This  
            bill includes other provisions on which the Brady Campaign  
            Chapters take no position at this time.  The need for accurate  
            information on firearm possession is becoming increasingly as  
            DOJ embarks on the implementation of the Armed and Prohibited  
            Persons System.  DOJ estimates that up to 60,000 Californians  
            whoa re currently prohibited from purchasing or possessing  
            firearms, have firearms still registered in their names from  
            before the prohibition occurred.  A record of receipt is  
            highly valuable information in following up with armed and  
            prohibited persons."

           6)Arguments in Opposition  : 

             a)   According to the  National Shooting Sports Foundation   
               (NSSF), "This bill would mandate that a licensed firearms  
               dealer record on the DROS form the date on which a firearm  
               is delivered to its purchaser or other transferee (buyer).   
               It sets up a new dual system of documentation when a  
               firearm is delivered, depending upon whether it is a long  
               gun or a handgun.  If a long gun, the dealer must note the  








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               date of delivery on the DROS form at the time of transfer  
               to the buyer.  However, if it is a handgun, both the dealer  
               and the buyer must sign and date the DROS form when the  
               handgun is transferred.  The bill also would require (in  
               addition to the current state law mandating that a dealer  
               give a pre-delivery copy of the DROS form information to  
               the buyer upon the buyer's request), that the dealer  
               'shall' additionally give the buyer a copy at the actual  
               time of delivery.  Thus, a dealer could be required to give  
               the buyer two copies of the DROS form, one before and one  
               at time of the delivery of the firearm.

             "In the case of a private party sale, SB 41 further mandates  
               that the dealer give the seller a copy of the DROS form,  
               even if it is not requested, at the time the seller signs  
               it.  NSSF opposes SB 41, as amended, because it needlessly  
               adds to the dealers' administrative workload and operating  
               costs.  This additional burden in turn, would result in  
               retail prices increases for firearms, possibly resulting in  
               a decrease in sales.  SB 41 would also expand licensed  
               firearms dealers to criminal prosecution for a paperwork  
               error (and expose them to license revocation by the Federal  
               Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE)  
               for failing to comply with state law).  It would, in  
               addition, increase the burden on the DROS account which  
               will ultimately result in increased DROS fees paid by the  
               public.  In most cases, SB 41 would provide little or no  
               useful information for law enforcement agencies.  But, it  
               would impose on firearms dealer's new duties and costs that  
               cannot be justified in terms of any significant benefit  
               relative to the time and expense required for compliance. 

             "Furthermore, under current law, if a handgun used in a crime  
               is recovered by law enforcement they can trace it through  
               the Federal BATFE and the California DOJ to identify the  
               firearms dealers that sold the handgun and the firearm's  
               first retail purchaser.  SB 41 only adds a needless burden  
               to the duties of a firearm dealer, and it gives law  
               enforcement nothing that they do not already have available  
               to identify the owner of a handgun and the date upon which  
               such owner took possession of it from the dealer."

             b)   According to the  California Association of Firearms  
               Retailers  , "Current law requires distribution of copies of  
               the DROS form to buyers and private party sales sellers  








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               upon their request.  SB 41 would make such distribution  
               mandatory, even if the recipients do not want them.   
               Firearms dealers oppose these proposed new signature, date  
               and copy provisions because they needlessly add to their  
               administrative workload and operating costs.  They can also  
               be confusing to employees.  If an employee neglects to  
               obtain a handgun buyer's signature on the DROS form, fails  
               to note the date of delivery of any firearm, or does not  
               give the buyer of seller a copy of the DROS form as  
               required, it would be a violation of law that could result  
               in placing the dealer's license, and thus livelihood in  
               jeopardy.  In most cases of firearms transfer by a licensed  
               dealer, SB 41 would provide little or no useful information  
               for law enforcement entities, and it would impose on  
               firearms dealer's new duties and costs that cannot be  
               justified in terms of any significant benefit.  SB 41 would  
               also needlessly increase the cost to the Dealer Record of  
               Sale Account of the State General Fund."

           7)Related Legislation  :  SB 175 (Aanestad) clarifies that  
            delivery of a firearm, as specified, to a gunsmith for service  
            or repair is exempt from the FFL licensing verification  
            requirements, as specified.  SB 175 is pending hearing by the  
            Assembly Appropriations Committee. 

           8)Prior Legislation  :

             a)   SB 327 (Migden), of the 2007-08 Legislative Session,  
               would have required that by 
             July 1, 2012 a firearms dealer record of electronic transfer  
               contain the date a transferred firearm is delivered, a  
               place to indicate if the handgun is released to the  
               purchaser, and whether the purchaser is concurrently  
               requesting a handgun registration notification be issued to  
               him or her, as specified.  SB 327 was held on the Assembly  
               Committee on Appropriations' Suspense File. 

             b)   SB 357 (Perata), of the 2003-04 Legislative Session,  
               would have allowed DOJ to require a firearms dealer to  
               report the delivery date of both handguns and long guns in  
               a manner and format prescribed by the DOJ.  SB 357 was  
               never heard by the Senate Committee on Appropriations and  
               was returned to the Secretary of the Senate. 

             c)   SB 950 (Brulte), Chapter 944, Statutes of 2001,  








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               established the Prohibited Armed Persons File, an online  
               database that cross-references information for persons  
               relative to the purchase and possession of firearms on or  
               after January 1, 1991 and information indicating those  
               persons who have subsequently been prohibited from owning  
               or possessing firearms, as specified.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
          
          Brady Campaign to Prevent Gun Violence-California Chapter

           Opposition 
           
          California Association of Firearms Retailers 
          California Sportsman's Lobby
          Crossroads of the West Gun shows
          Gun Owners of California
          National Shooting Sports Foundation
          Outdoor Sportsmen's Coalition of California 
          Safari Club International
           
          Analysis Prepared by  :    Kimberly Horiuchi / PUB. S. / (916)  
          319-3744