BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 819 (Leno) Hearing Date: 05/26/2011 Amended: 04/14/2011 Consultant: Jolie Onodera Policy Vote: Public Safety 5-2 _________________________________________________________________ ____ 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. _________________________________________________________________ ____ 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 _________________________________________________________________ ____ STAFF COMMENTS: 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 the rescission of the plan for sale/leaseback of several state SB 819 (Leno) Page 3 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.