BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 819|
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                                 THIRD READING


          Bill No:  SB 819
          Author:   Leno (D)
          Amended:  4/14/11
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  5-2, 4/26/11
          AYES:  Hancock, Calderon, Liu, Price, Steinberg
          NOES:  Anderson, Harman

           SENATE APPROPRIATIONS COMMITTEE  :  6-2, 5/26/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Runner
          NO VOTE RECORDED:  Emmerson


           SUBJECT  :    Uses of Dealer Record of Sale Funds

           SOURCE  :     Attorney General Kamala D. Harris


           DIGEST  :    This bill provides that the Department of 
          Justice may use dealer record of sale funds for costs 
          associated with its firearms-related regulatory and 
          enforcement activities regarding the possession as well as 
          the sale, purchase, loan, or transfer of firearms, as 
          specified.

           ANALYSIS  :    Existing law authorizes the Department of 
          Justice (DOJ) to require a firearms dealer to charge each 
          firearm purchaser a fee, as specified, to fund various 
          specified costs in connection with, among other things, a 
          background check of the purchaser, and to fund the costs 
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          associated with the DOJ's firearms-related regulatory and 
          enforcement activities related to the sale, purchase, loan, 
          or transfer of firearms.

          This bill makes the following legislative findings and 
          declarations:

             A.    California is the first and only state in the 
                nation to establish an automated system for 
                tracking handgun and assault weapon owners who 
                might fall into a prohibited status.

             B.    The California Department of Justice (DOJ) is 
                required to maintain an online database, which is 
                currently known as the Armed Prohibited Persons 
                System (APPS), cross-references all handgun and 
                assault weapon owners across the state against 
                criminal history records to determine persons who 
                have been, or will become, prohibited from 
                possessing a firearm subsequent to the legal 
                acquisition or registration of a firearm or assault 
                weapon.

             C.    The DOJ is further required to provide 
                authorized law enforcement agencies with inquiry 
                capabilities and investigative assistance to 
                determine the prohibition status of a person of 
                interest.

             D.    Each day, the list of armed prohibited persons 
                in California grows by about 15 to 20 people.  
                There are currently more than 18,000 armed 
                prohibited persons in California.  Collectively, 
                these individuals are believed to be in possession 
                of over 34,000 handguns and 1,590 assault weapons.  
                The illegal possession of these firearms presents a 
                substantial danger to public safety.

             E.    Neither the DOJ nor local law enforcement has 
                sufficient resources to confiscate the enormous 
                backlog of weapons, nor can they keep up with the 
                daily influx of newly prohibited persons.

             F.    A Dealer Record of Sale fee is imposed upon 

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                every sale or transfer of a firearm by a dealer in 
                California.  Existing law authorizes the DOJ to 
                utilize these funds for firearms-related regulatory 
                and enforcement activities related to the sale, 
                purchase, loan, or transfer of firearms pursuant to 
                any provision listed in Section 16580 of the Penal 
                Code, but not expressly for the enforcement 
                activities related to possession.

             G.    Rather than placing an additional burden on the 
                taxpayers of California to fund enhanced 
                enforcement of the existing armed prohibited 
                persons program, it is the intent of the 
                Legislature in enacting this bill allows the DOJ to 
                utilize the Dealer Record of Sale Account for the 
                additional, limited purpose of funding enforcement 
                of the APPS.

          This bill also authorizes using those charges to fund the 
          DOJ's firearms-related regulatory and enforcement 
          activities related to the possession of firearms, as 
          specified.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee analysis:

                          Fiscal Impact (in thousands)

           Major Provisions                2011-12     2012-13    
           2013-14   Fund  

          APPS enforcement         $0        $1,445    $945Special*

          *Dealer Record of Sale Account

           SUPPORT  :   (Verified  5/26/11)

          Attorney General Kamala D. Harris (source)
          Association for Los Angeles Deputy Sheriffs
          California Chapters of the Brady Campaign to Prevent Gun 
          Violence
          California State Sheriffs' Association

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          Legal Community Against Violence
          Los Angeles County Sheriff's Department
          Riverside Sheriffs' Association
          Statewide Law Enforcement Association

           OPPOSITION  :    (Verified  5/26/11)

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

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          the DOJ maintains APPS, an online database, to 
          cross-reference persons who have ownership or possession of 
          a firearm, and who, subsequent to the date of that 
          ownership or possession of a firearm, fall within a class 
          of persons who are prohibited from having a firearm. 

          Authorized law enforcement agencies have access to APPS.  
          DOJ populates APPS with all handgun and assault weapon 
          owners across the state and matches them against criminal 
          history records to determine who might fall into a 
          prohibited status.  When a match is found, the system 
          automatically raises a flag.  APPS, further, interfaces 
          with the Automated Firearms System and identifies the 
          handguns and assault weapons in that prohibited 
          individual's possession.  In theory, local agencies and DOJ 
          would then confiscate the weapons.  When local agencies 
          confiscate weapons, notice is sent to DOJ so that the 
          individual can be removed from the list.  
          APPS is currently funded through the general fund.  There 
          is, however, an account that holds the fees charged by 
          dealers for each firearm purchase.  This is called the 
          Dealer Record of Sale account.  Penal Code section 12076 
          allows the DOJ to use this account to fund firearms-related 
          regulatory and enforcement activities related to the sale, 
          purchase, loan, or transfer of firearms pursuant to this 
          chapter.  Penal Code section 12076, however, does not fund 
          DOJ or local agencies to confiscate unlawfully possessed 

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          firearms.

          Local law enforcement agencies are provided monthly 
          information regarding the armed and prohibited persons in 
          the agency's jurisdiction.  However at the present time, 
          many agencies do not have the resources or personnel to 
          work the APPS cases, and rely on assistance form DOJ's 
          criminal intelligence specialists and special agents. In 
          today's environment of shrinking budgets, it is important 
          to find alternative ways to fund the state's important 
          public safety programs.

           ARGUMENTS IN OPPOSITION  :    The National Shooting Sports 
          Foundation, Inc. writes, "While NSSF supports keeping 
          firearms out of the hands of persons who are prohibited 
          from possessing firearms, it opposes taking the money to 
          fund this activity from the Dealers Record of Sale (DROS) 
          Special Account of the General Fund.

          "The money paid into the DROS fund by a prospective 
          purchaser or other transferee of a firearm, is a fee to pay 
          for the costs of a criminal and mental history background 
          check to determine the person's eligibility to lawfully 
          possess a firearm.  

          "The DROS fee is not a regulatory fee, tax license or other 
          form of non-user charge.  NSSF believes that the DROS fund 
          has often been improperly used to fund non-background check 
          activities of the Department of Justice (DOJ).
          Since the use of DROS fees for the purposes of SB 819 would 
          be to use them in the same manner as a tax, the bill should 
          require a 2/3's vote of each house of the Legislature for 
          passage.

          "If the bill were to be amended to designate a different 
          source of funding, NSSF would remove its opposition and 
          likely support the bill.  NSSF does not support unfunded 
          legislation."  
           

          RJG:do  5/27/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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