BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1559 (Portantino) - Firearms.
          
          Amended: June 15, 2012          Policy Vote: Public Safety 7-0
          Urgency: No                     Mandate: No
          Hearing Date: August 6, 2012                           
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 1559 would do the following:
                 Clarifies that permits issued by the Department of 
               Justice (DOJ) for the manufacture, possession, or use, as 
               specified, of a short-barreled rifle or short-barreled 
               shotgun solely as a prop for a motion picture, television, 
               or video production or entertainment event may allow for 
               the importation of these weapons for these uses.
                 Deletes the existing requirement for the DOJ to charge a 
               reduced fee for the second and subsequent handguns in a 
               single transaction on the same date, and effective January 
               1, 2014, the requirement to charge a reduced fee for any 
               firearm, including long-guns, in a single transaction on 
               the same date.
                 Effective January 1, 2014, provides that only one fee 
               shall be charged for a single transaction on the same date 
               and time for taking title or possession of any number of 
               firearms.

          Fiscal Impact: 
                 No fiscal impact to the DOJ associated with the 
               clarification of existing law with regard to the issuance 
               of permits by the DOJ. 
                 Ongoing reduced revenue potentially in excess of $50,000 
               to the Dealer Record of Sale (DROS) Account (Special Fund) 
               due to the deletion of DOJ authority under existing law to 
               charge a reduced fee for multiple handgun purchases in a 
               single transaction.
                 Ongoing foregone revenue potentially in excess of 
               $600,000 to the DROS Account (Special Fund) after January 
               1, 2014, due to the restriction to only one fee charged per 
               firearms transaction, regardless of the number of firearms 
               involved in the transaction. 








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          Background: Existing law provides that upon a showing that good 
          cause exists for the issuance of a permit to an applicant, and 
          if the DOJ finds that issuance of the permit does not endanger 
          the public safety, the DOJ may issue a permit for the 
          manufacture, possession, transportation, or sale of 
          short-barreled rifles or short-barreled shotguns. Existing law 
          specifies good cause to include if the permit is sought for the 
          manufacture, possession, or use with blank cartridges of a 
          short-barreled rifle or short-barreled shotgun, solely as a prop 
          for a motion picture, television, or video production or 
          entertainment event.

          Under existing law, the DOJ charges a $19 DROS fee for a single 
          transaction involving handguns. For a single transaction on the 
          same date involving multiple handguns, the DOJ charges a reduced 
          fee of $15 for the second and subsequent firearms that are part 
          of that transaction. 

          Until January 1, 2014, existing law requires the DOJ charge only 
          one fee for a single transaction on the same date for the sale 
          of any number of firearms that are not handguns (long-guns), or 
          for the taking of possession of those firearms. Under existing 
          law, commencing January 1, 2014, the DOJ shall charge a reduced 
          fee for the second and subsequent firearms that are part of the 
          same transaction.

          Proposed Law: This bill would clarify that permits issued by the 
          DOJ for the manufacture, possession, or use, as specified, of a 
          short-barreled rifle or short-barreled shotgun solely as a prop 
          for a motion picture, television, or video production or 
          entertainment event may allow for the importation of these 
          weapons for these uses. This bill states that these amendments 
          do not constitute a change in, but are declaratory of, existing 
          law.

          This bill would delete the existing requirement for the DOJ to 
          charge a reduced fee for the second and subsequent handguns in a 
          single transaction on the same date, and commencing January 1, 
          2014, the requirement to charge a reduced fee for any firearm, 
          including long-guns, in a single transaction on the same date.

          This bill would provide that effective January 1, 2014, only one 
          fee shall be charged for a single transaction on the same date 








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          and time for taking title or possession of any number of 
          firearms.

          Staff Comments: It is estimated the DOJ would incur ongoing 
          reduced and foregone revenue to the DROS Account of 
          approximately $650,000 (Special Fund) due to the restriction of 
          charging only one fee for a single transaction on the same date 
          for any number of firearms. The magnitude of reduced and 
          foregone revenue would be dependent on the number of single 
          transactions involving more than one firearm that would have 
          resulted in multiple fee collection under existing law. Data 
          from the DOJ for Fiscal Year 2011-12 indicates nearly 677,000 
          DROS transactions, consisting of approximately 329,000 handgun 
          transactions and 348,000 long-gun transactions. 

          Because the option to purchase multiple handguns is statutorily 
          limited in general to peace officers and armed security guards, 
          it is projected that up to one percent (3,290 transactions) of 
          handgun transactions involve multiple handgun purchases. Based 
          on data from 2011, approximately 11.5 percent (40,020 
          transactions) of long-gun transactions were part of multiple 
          long-gun purchases. By deleting the authority for the DOJ to 
          charge a reduced fee of $15 for multiple handgun purchases 
          within a single transaction, ongoing reduced revenue to the DROS 
          Account is estimated of $50,000 (3,290 transactions x $15) which 
          would have otherwise been collected under existing law. 

          By deleting the ability for the DOJ to charge a reduced fee for 
          multiple purchases within a single long-gun transaction that 
          would have been effective January 1, 2014, ongoing foregone 
          revenue to the DROS Account of approximately $600,000 (40,020 
          transactions x $15) in 2014 and years thereafter could result.
           
          These estimates assume each transaction involving multiple 
          purchases consists of only two firearms resulting in foregone 
          revenue of $15 per transaction. To the extent a portion of 
          transactions involved more than two firearms, the level of 
          foregone revenue would be greater. Additionally, data is not 
          collected on the number of transactions that involve both a 
          handgun and a long-gun purchase within the same transaction in 
          which the DOJ would currently collect two $19 fees, which would 
          result in additional foregone revenue to the DROS Account.










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