BILL ANALYSIS                                                                                                                                                                                                    
                                                                  SB 585
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          Date of Hearing:   June 30, 2009
          Counsel:               Nicole J. Hanson
                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                Juan Arambula, Chair
                      SB 585 (Leno) - As Amended:  May 28, 2009
           SUMMARY  :   Authorizes up to five events at which firearms or  
          ammunition may be sold at the Cow Palace per year until said  
          events are replaced with non-firearm or non-ammunition events.  
          Specifically,  this bill  :   
          1)Prohibits any officer, employee, operator, or any lessee of  
            District 1-A to contract for, authorize, or allow an event at  
            which any firearm or ammunition is sold on the property or in  
            the buildings that comprise the Cow Palace property in San  
            Mateo County and the City and County of San Francisco or any  
            successor or additional property owned, leased, or otherwise  
            occupied or operated by the District except as specified.
          2)Provides that commencing January 1, 2010, no more than five  
            events at which firearms or ammunition are sold shall be  
            authorized or allowed per year on Cow Palace property.  The  
            District shall phase out those events by replacing them with  
            non-firearm or non-ammunition related events and shall add no  
            event that increases the number of these events at the Cow  
            Palace property from the number in the preceding year.
          3)Defines a "firearm" as the following:
             a)   Any device, designed to be used as a weapon, from which  
               is expelled through a barrel, a projectile by the force of  
               any explosion or other form of combustion.
             b)   The term "firearm" includes the frame or receiver of the  
               weapon.
             c)   A "firearm" also shall include any rocket, rocket  
               propelled projectile launcher, or similar device containing  
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               any explosive or incendiary material whether or not the  
               device is designed for emergency or distress signaling  
               purposes.
          4)Defines "ammunition" to include assembled ammunition for use  
            in a firearm and components of ammunition including smokeless  
            and black powder, and any projectile capable of being fired  
            from a firearm with deadly consequence. 
           EXISTING LAW  :
          1)Defines "State-designated fairs" as specified fairs that may  
            receive financial support or are otherwise governed pursuant  
            to specified sections of law.  The district agricultural  
            associations and their locations are as follows:  ". . . (2)  
            District 1-A, held in the City of San Francisco".  (Food and  
            Agriculture Code Sections 3851 and 3853.)
          2)Provides that an association, with the approval of both the  
            Department of Food and Agriculture and the Department of  
            General Services, may engage in a variety of specified  
            commercial activities, including lease, let, or grant licenses  
            for the use of its real estate or personal property, or any  
            portion of that property, to any person or public body for  
            whatever purpose may be approved by the board.  (Food and  
            Agriculture Code Section 4051.)
          3)Punishes any person who brings or possesses within any state  
            or local public building or at any meeting required to be open  
            to the public, a firearm, is guilty of a public offense  
            punishable by imprisonment in a county jail for not more than  
            one year, or in the state prison. The aforementioned shall not  
            apply to a person who, for the purpose of sale or trade,  
            brings any weapon that may otherwise be lawfully transferred,  
            into a gun show conducted pursuant to existing law.  [Penal  
            Code Section 171b(a) and (b)(7)(A).]
          4)Requires the sale, loan or transfer of a firearm in  
            California, including private party transactions, and  
            including transactions at gun shows, must be conducted through  
            a state-licensed firearms dealer or through a local sheriff's  
            department in counties of less than 200,000 in population.  A  
            10-day waiting period, background check, and Handgun Safety  
            Certificate for handgun transfers are required prior to  
            delivery of the firearm.  Firearms dealers are allowed to  
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            conduct business only in their licensed premises, sell their  
            gun inventory at gun shows or events, or process private sales  
            or transfers of any firearms at gun shows or events.  Handgun  
            purchases are limited to no more than one per 30-day period.   
            Transferees must be California residents, no person under age  
            21 may buy a handgun, and no person under 18 years of age may  
            buy a rifle or shotgun.  (Penal Code Sections 12071, 12072,  
            12082, and 12084.)
          5)Provides for a number of specified requirements on gun show  
            operators, attendees at gun shows, and the Department of  
            Justice (DOJ).  (Penal Code Section 12071.1 and 12071.2.)
           FISCAL EFFECT  :   Unknown
           COMMENTS  :   
           1)Background  : According to information provided by the author,  
            "The Board of Supervisors for the City and County of San  
            Francisco and the County of San Mateo have adopted resolutions  
            on unanimous votes to seek Legislative help to end the gun  
            shows at the Cow Palace.  The state-owned facility straddles  
            both counties, and is located near the Sunnydale public  
            housing project and the communities of Visitacion Valley,  
            Bayview-Hunters Point and the Mission District.  These  
            communities have been plagued by violence for many years.   
            But, unlike similar facilities owned by the county in which  
            they are located, the Cow Palace is owned and operated by the  
            California Department of Agriculture's Division of Fairs and  
            Expositions.  For this reason, local residents have no local  
            control over the types of events that take place at the  
            facility.  
          "Because the Cow Palace is a state-owned facility, legislation  
            is needed to provide the neighboring residents and communities  
            with local control equivalent to communities with county-run  
            facilities.  SB 585 would provide the communities of San  
            Francisco and San Mateo with an outcome that the counties of  
            Alameda, Marin and Los Angeles have been able to implement at  
            similar locally-operated facilities."
           2)Current Cow Palace Usage  :  According to a San Francisco  
            Chronicle article, "The Cow Palace was opened in 1941 and is  
            an agency of the California Food and Agricultural Department's  
            Division of Fairs and Expositions.  Originally built to serve  
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            as a livestock pavilion, it now holds 100 events annually,  
            including four to six gun shows as well as more innocuous  
            activities including rodeos, dog shows, circuses and Disney on  
            Ice.
          "San Francisco . . . adopted legislation banning gun shows on  
            city and county property.  Other counties, including Alameda,  
            Marin and Los Angeles, have passed similar bans.  But because  
            the Cow Palace sits on state-owned land between San Francisco  
            and San Mateo County, local governing bodies don't have  
            authority over its gun shows."  [Knight, SF Mayor, Police  
            Chief Call for Gun-Show Ban at Cow Palace, San Francisco  
            Chronicle (Aug. 10, 2007) p. B-1.]
           3)Existing Regulations of Gun Shows  :  Existing law requires that  
            firearms transactions must take place through a licensed  
            firearms dealer and involves a background check, a 10-day  
            waiting period before delivery of the firearm to the  
            transferee, and a Handgun Safety Certificate possessed by the  
            transferee if the firearm is a handgun.  
          In addition, AB 295 (Corbett) Chapter 247, Statutes of 1999,  
            amended the law pertaining to gun shows and added the Gun Show  
            Enforcement and Security Act of 2000 which includes a number  
            of requirements for producers that promote gun shows.  To  
            obtain a certificate of eligibility from the DOJ, a promoter  
            must certify that he or she is familiar with existing law  
            regarding gun shows; obtain at least $1 million of liability  
            insurance; provide an annual list of gun shows the applicant  
            plans to promote; pay an annual fee of $85; make available to  
            local law enforcement a complete list of all entities that  
            have rented any space at the show; submit not later than 15  
            days before the start of the show an event and security plan;  
            submit a list to DOJ of prospective vendors and designated  
            firearms transfer agents who are licensed dealers; provide  
            photo identification of each vendor and vendor's employee;  
            prepare an annual event and security plan; and require all  
            firearms carried onto the premises of a show to be checked,  
            cleared of ammunition, secured in a way that they cannot be  
            operated, and have an identification tag or sticker attached. 
          AB 295 also provided for a number of penalties for a gun show  
            producer's willful failure to comply with the specified  
            requirements.
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           4)The Sale of Guns is Commercial Speech  :  The Supreme Court has  
            defined commercial speech as speech that "does no more than  
            propose a commercial transaction."  [Virginia State Bd. of  
            Pharmacy v. Virginia Citizens Consumer Council (1976) 425 U.S.  
            748, 762; Board of Trustees of the State Univ. of N.Y. v. Fox  
            (1989) 492 U.S. 469, 482.]  An offer to sell firearms or  
            ammunition is speech that "does no more than propose a  
            commercial transaction.  Such an offer is, therefore,  
            commercial speech within the meaning of the First Amendment."   
            [Nordic v. Santa Clara County (9th Cir. Cal. 1997) 110 F.3d  
            707, 710.]
          To survive First Amendment scrutiny, a restriction on commercial  
            speech must:  (a) concern lawful activity; (b) be truthful;  
            (c) directly advance a substantial governmental interest; and  
            (d) be no more extensive than necessary to serve that  
            interest.  [See Central Hudson Gas & Elec. Corp. v. Public  
            Serv. Comm'n of New York (1980) 447 U.S. 557; see also Greater  
            New Orleans Broadcasting Ass'n. Inc. v. United States (1999)  
            527 U.S. 173 (applying the Central Hudson test to a commercial  
            speech case); Pearson v. Edgar (7th Cir. 1998) 153 F.3d 397  
            (same).]
              a)   Firearm Ban on County Property Through Contract  :  The  
               Ninth Circuit of the United States Court of Appeals,  
               Nordyke v. Santa Clara County (9th Cir. Cal. 1997) 110 F.3d  
               707, held that Santa Clara County violated the First  
               Amendment to the United States Constitution by preventing  
               the operation of gun shows in Santa Clara County.  The  
               County, which owned the Santa Clara Fairgrounds, had  
               inserted a clause in a lease contract to attempt to prevent  
               the lessee from subleasing the fairgrounds to gun shows.   
               Thus, gun shows were not illegal.  The County had attempted  
               to prevent them by a contract clause.  The Court explained  
               that since guns were legal to sell, an offer to sell a gun  
               at a gun show is a constitutionally protected exercise of  
               free expression under the First Amendment.  
             However, the Court explained, if the County had made the sale  
               of guns illegal (and assuming the County had the authority  
               to do so), it would not violate the First Amendment to  
               prohibit gun shows.  A total ban on gun shows on county  
               property is within the scope of a county's authority.   
               "Under California Government Code section 23004(d), a  
               county is given substantial authority to manage its  
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               property, including the most fundamental decision as to how  
               the property will be used and that nothing in the gun show  
               statutes evince intent to override that authority.  The gun  
               show statutes do not mandate that counties use their  
               property for such shows.  If the county does allow such  
               shows, it may impose more stringent restrictions on the  
               sale of firearms than state law prescribes."  (Id. at 766.)  
                At the time of the Ninth Circuit decision, there was no  
               local ordinance prohibiting gun shows.
              b)   County Ordinances May Ban the Sale of Firearms on County  
               Property  :  In a companion case, Great W.  Shows, Inc. v.  
               County of L.A. (2002) 27 Cal.4th 853, an operator of gun  
               shows brought an action in federal district court against  
               Los Angeles County seeking an injunction against  
               enforcement of a county ordinance prohibiting the sale of  
               firearms and ammunition on county property.  The California  
               Supreme Court held that state law neither preempted the  
               county ordinance, nor did it compel counties to allow their  
               property to be used for gun shows where guns and ammunition  
               were sold.  (Id. at 861.)  The Legislature has preempted  
               discrete areas of gun regulation rather than the entire  
               field of gun control.  (Id. at 861.)  " . . . [S]tate law  
               tends to concentrate on specific areas, leaving unregulated  
               other substantial areas relating to the control of  
               firearms, indicates an intent to permit local governments  
               to tailor firearms legislation to the particular needs of  
               their communities."  (Suter v. City of Lafayette (1997) 57  
               Cal.App.4th 1109, 1119.)  Government Code Section 23004(d)  
               authorizes counties to manage their own property, and that  
               includes deciding how the property may be used, whether  
               that decision is embodied in a contract with a private  
               party, in an ordinance, or in some combination of the two.   
               (Great W.  Shows, Inc., supra, 27 Cal.4th at 871.) 
              c)   Cow Palace is Situated on State-Owned Land  : Both Great  
               Western and Nordyke stand for a narrow proposition that  
               state gun show regulations - which expressly contemplate  
               additional local regulation - do not preclude local  
               governments from banning the sale or possession of firearms  
               and ammunition at gun shows on county-owned public  
               property. The Cow Palace is not county-owned public  
               property, thus the Legislature must enact a law to  
               specifically ban gun shows.  County and or city bans of gun  
               shows on the aforementioned property are unenforceable.  
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          5)Impairment of Contracts  :  Notwithstanding the ability of  
            counties and the state to regulate firearms and ammunition,  
            this bill prohibits the fair district which oversees the Cow  
            Palace property from allowing more than five events per year  
            involving the sale of firearms or ammunition at the Cow  
            Palace.  To the extent that the Cow Palace property is used as  
            a site for gun shows by the fair district and to the extent  
            that the fair management has more than five ongoing contracts  
            that extend beyond January 1, 2010 when this bill would take  
            effect, it might be asserted that existing contracts cannot be  
            voided by this bill because of the impairment of contracts  
            clause of the state and federal constitutions.  (U.S. Const.,  
            art I,  10; Cal. Const., art. I, 9.)
           6)Argument in Support  :  According to the  City and County of San  
            Francisco  , "San Francisco has invested heavily both in public  
            safety and front-end prevention efforts to keep its streets  
            safe.  It continues to bring the best law enforcement  
            practices and technology to the City.  One aspect of this  
            effort is a local ordinance banning gun shows on City and  
            County property.  Unfortunately, this ordinance does not apply  
            to one venue for large public gatherings that still hosts gun  
            shows.  This is the Cow Palace, which is owned by the State.   
            Since the State Department of Agriculture's Division of Fairs  
            and Expositions owns and manages the Cow Palace the only way  
            to close this 'loophole' in the local policy is through state  
            legislation.
          "The neighborhoods adjacent to the Cow Palace have had more than  
            their share of gun violence over the years and the residents  
            believe that the gun shows contribute to the proliferation of  
            available weapons through the illegal sale of firearms.  They  
            have continually pleaded with local leaders to remedy the  
            situation.
          "SB 585 would address this concern by phasing out the sale of  
            firearms and ammunition at the Cow Palace.  It would provide  
            the same protections to residents living near the Cow Palace  
            as are currently afforded to those residing elsewhere in the  
            City."
           7)Argument in Opposition  :  According to the  National Shooting  
            Sports Foundation, Inc.  , "When a person buys a firearm at a  
            California gun show, the transaction is the same as if it was  
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            purchased at a licensed firearms dealer's regular place of  
            business.  All gun show firearms sales, by existing law, must  
            be conducted at the show through a fully licensed firearms  
            dealer who is present at the show and provides such service.   
            The dealer takes the firearm being transferred into his or her  
            possession and will store the firearm at the dealer's regular  
            place of business during the mandatory 10-day waiting period.   
            During this time, DOJ will conduct the required criminal and  
            mental history background check to determine if the transferee  
            is lawfully prohibited from possessing a firearm.
          "If the transferee is prohibited, the DOJ will conduct a  
            background check on the transferor, if the transaction is a  
            private-party sale, to determine if the dealer can return the  
            firearm to him or her.  If not, the dealer will then turn the  
            firearm over to local law enforcement for disposition.
          "In addition to the above, state law mandates numerous security  
            and accountability standards for both the gun show operator  
            and the facility where the show is held.  Close cooperation  
            with local law enforcement is required in order to assure a  
            safe, secure and lawful event.  Both local law enforcement and  
            the DOJ often have personnel in plain clothes in attendance to  
            monitor for compliance with the law.  Additionally, uniformed  
            officers are often on hand to provide a visual presence.  Gun  
            show operators reimburse local law enforcement for costs  
            associated with the event.  The gun show laws can be found in  
            Penal Code Section 12071, 12071.1 and 12071.4.  They are very  
            thorough and effective.
          "Gun shows at the Cow Palace are conducted lawfully in  
            compliance with state statutes, and in cooperation with local  
            law enforcement.  No valid purpose would be served by  
            prohibiting gun shows at the Cow Palace.  In fact, the shows  
            serve a useful purpose for law enforcement as they assure that  
            the private-party sales conducted there are in full compliance  
            with the law, thus reducing the potential for illegal sales on  
            the street or elsewhere."
           8)Prior Legislation :
             a)    AB 2948 (Leno), of the 2007-08 Legislative Session,  
               would have prohibited the sale of firearms or ammunition on  
               state property known as the "Cow Palace." AB 2948 failed  
               passage on the Senate Floor. 
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             b)   SB 1527 (Yee), of the 2007-08 Legislative Session, would  
               have sold the Cow Palace for fair market value to the Daly  
               City Redevelopment Agency or to the City of Daly City.  SB  
               1527 failed passage on the Assembly Floor. 
             c)   SB 1733 (Speier), of the 2003-04 Legislative Session, is  
               duplicative of this bill.  SB 1733 failed passage on the  
               floor of the State Assembly
             d)   HR 26 (Machado), of the 1999-00 Legislative Session,  
               requested that the Governor place a moratorium on all gun  
               shows that would take place on state-owned property until  
               the Attorney General and local law enforcement officials  
               are  satisfied that existing federal and state laws  
               relating to gun  shows are sufficiently enforced.  HR 26  
               was never heard by this Committee.
             e)   AB 1107 (Ortiz), of the 1997-98 Legislative Session,  
               would have authorized any city, county or agricultural  
               association to prohibit gun sales at gun shows or events.   
               AB 1107 failed in the Assembly Committee on Appropriations.
           REGISTERED SUPPORT / OPPOSITION  :
           Support 
           
            City and County of San Francisco
           Opposition 
           
          California Association of Firearm Retailers
          California Sportsman's Lobby
          Crossroads of the West Gun Shows President, Bob Templeton
          El Cajon Gun Exchange, Vice President, Ronald Godwin
          Gun Owners of California
          National Rifle Association 
          National Shooting Sports Foundation, Inc.
          Outdoor Sportsman Coalition of California
          Safari Club International
          1,286 private individuals
           Analysis Prepared by  :    Nicole J. Hanson / PUB. S. / (916)  
          319-3744 
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