BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 819 (Leno)
Hearing Date: 05/09/2011 Amended: 04/14/2011
Consultant: Jolie Onodera Policy Vote: Public Safety 5-2
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BILL SUMMARY: SB 819 would authorize the Department of Justice
(DOJ) to use dealer record of sale (DROS) funds for costs
associated with its firearms-related regulatory and enforcement
activities related to the possession of firearms, as specified.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
APPS enforcement $0 $1,445 $945 Special*
*Dealer Record of Sale (DROS) Account
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Current law provides that the DOJ may require licensed firearms
dealers to charge each firearm purchaser a fee, known as the
DROS fee, to fund various costs incurred associated with the
processing costs of the department, including the reasonable
costs of firearms-related regulatory and enforcement activities
associated with the sale, purchase, loan, or transfer of
firearms. This bill would additionally authorize the use of DROS
funds for regulatory and enforcement activities related to the
possession of firearms.
Under existing law, the DOJ may require the dealer to charge
each firearm purchaser a fee not to exceed $14, and provides
that the fee may be increased at a rate not to exceed any
increase in the Consumer Price Index. The fee is currently $19
and has not been increased for seven years. The DROS fee may
only be increased through the normal regulation process which
includes both a public comment period and sign off by the
Attorney General. The DROS fees are deposited in the DROS
special account of the General Fund and are available, upon
appropriation of the Legislature (Penal Code section 12076), for
expenditure by the DOJ to offset specified costs. The DROS
Account currently has a fund balance of approximately $17
million. The Governor has proposed transferring $11.5 million
from the DROS Account to the General Fund in Fiscal Year (FY)
2011-12 to partially backfill for lost revenue resulting from
SB 819 (Leno)
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the rescission of the plan for sale/leaseback of several state
buildings. As a result, the remaining balance in the DROS
Account will be approximately $5.5 million in FY 2011-12 not
accounting for additional net revenues/expenditures for the year
which could increase the fund balance to more than $7 million.
The DOJ indicates the authorized use of DROS funds as specified
under the provisions of this bill will provide for enhanced
enforcement of the Armed Prohibited Persons System (APPS) which
has identified over 36,000 handguns and assault weapons in the
hands of over 18,000 prohibited persons such as convicted felons
and the mentally ill. The APPS is an online database maintained
by the DOJ to cross-reference persons who have ownership or
possession of a firearm against criminal history records to
determine who might fall into prohibited status. The APPS is
currently funded through the General Fund, however, local and
State law enforcement have not had adequate funding and/or
resources to keep pace with the need to investigate and
confiscate the increasing number of unlawfully possessed
firearms. The DOJ indicates that while they provide local law
enforcement with access to the APPS and have trained more than
1,300 officers in its use, DOJ's own 20 agents specifically
tasked with investigating and confiscating the weapons have
proven to be the most effective.
If SB 819 is enacted, the DOJ anticipates submitting a Budget
Change Proposal for budgetary authority to fund APPS enforcement
out of the DROS Account to include the following: 1) $945,000
for five ongoing additional Special Agent positions to assist
other DOJ Special Agents in investigating APPS offenders, and to
assist local law enforcement agencies in training, setting up,
and investigating local APPS offender sweeps throughout the
State; and 2) a one-time request of $500,000 to fund DOJ
taskforces.
To the extent the increased confiscation of unlawfully possessed
firearms could result in the prevention of future crimes,
potentially major future cost savings associated with avoided
prosecution and incarceration could result.