BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 169 (Dickinson) - Unsafe handguns.
          
          Amended: August 12, 2013        Policy Vote: Public Safety 5-2
          Urgency: No                     Mandate: Yes
          Hearing Date: August 30, 2013                           
          Consultant: Jolie Onodera       
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.


          Bill Summary: AB 169 would make the following revisions to the  
          exemptions from the not "unsafe handgun" requirements: 
           Limits the exemption from the not unsafe handgun requirements  
            for the sale, loan, or transfer of handguns through a licensed  
            dealer in a private party transaction to a maximum of two  
            firearms per person per calendar year.
           Limits the exemption from the not unsafe handgun requirements  
            for the delivery of a handgun through a licensed dealer for  
            the purpose of a consignment sale or as collateral for a  
            pawnbroker loan to a maximum of two firearms per person per  
            calendar year.
           Prohibits a person who acquires a handgun that is not on the  
            not unsafe handgun roster under the exemption for law  
            enforcement officers from selling or transferring ownership of  
            the handgun to a person who does not qualify for the same  
            exemption.
           Amends the exemption for single shot handguns to exempt from  
            those requirements a single-shot pistol with a break top or  
            bolt action and a barrel length of not less than six inches  
            and that has an overall length of at least 10 inches, as  
            specified.
           Provides that the "not unsafe" handgun requirements do apply  
            to a semiautomatic pistol that has been temporarily or  
            permanently altered so that it will not fire in a  
            semiautomatic mode.

          Fiscal Impact (as proposed to be amended): 
              Unknown; annual loss of revenue potentially in excess of  
              $150,000 (Special Fund*) due to the restriction on private  
              party transactions and consignment sales.
              Minor one-time costs to the Department of Justice (DOJ) of  
              $29,000 (Special Fund*) to modify the DROS Entry System.








          AB 169 (Dickinson)
          Page 1


              Non-reimbursable local costs for enforcement to the extent  
              there are a greater number of violations of the not "unsafe  
              handgun" requirements. 
              *Dealers Record of Sale (DROS) Special Account

          Background: Existing law provides that the sale, loan, or  
          transfer of firearms in almost all cases must be processed by or  
          through a state licensed dealer or local law enforcement agency.  
          Existing law also provides that no "unsafe handgun" may be  
          manufactured or sold in this state by a licensed dealer, except  
          as specified, and requires that the DOJ prepare and maintain a  
          roster of handguns which are determined not to be unsafe. 
          
          Under existing law, any person in California who manufactures or  
          causes to be manufactured, imports into the state for sale,  
          keeps for sale, offers or exposes for sale, gives, or lends an  
          unsafe handgun is guilty of a misdemeanor, punishable by  
          imprisonment in a county jail for up to one year.

          Numerous exemptions to the restriction are authorized under  
          current law, including but not limited to, for law enforcement  
          officers, for firearms listed as curios or relics, for private  
          parties where the firearm was previously owned, and for  
          specified transfers not required to be made through a licensed  
          dealer. In addition, under current law, an individual owning an  
          unsafe handgun may sell the handgun to any other individual  
          through a licensed dealer or on consignment sale.

          Proposed Law: See Bill Summary.

          Prior Legislation: AB 2460 (Dickinson) 2012 would have removed  
          the exemption on the sale or transfer of firearms not on the  
          "unsafe handgun" list for exempted law enforcement officers to  
          persons who do not qualify for the same exemption. This bill was  
          vetoed by the Governor with the following message:

          This bill would restrict law enforcement and military personnel  
          - and only those individuals - from selling lawfully purchased  
          handguns that have not been certified by the Attorney General's  
          Office. This bill takes from law enforcement officers the right  
          to an activity that remains legally available to every private  
          citizen. I don't believe this is justified.

          Staff Comments: The DOJ has indicated the provisions of this  








          AB 169 (Dickinson)
          Page 2


          bill would result in one-time costs of $29,000 (DROS Fund) to  
          modify the DROS Entry System (DES). Currently, the DES allows  
          private parties to sell or transfer ownership of any handgun.  
          The restrictions on private party transactions will necessitate  
          modifications to display the DOJ roster of handguns for  
          non-exempted transactions.

          By restricting the number of private party transactions and  
          consignment sales of "unsafe handguns" (non-rostered handguns)  
          to two firearms per person per year, the provisions of this bill  
          could result in an annual loss of DROS fee revenue. Based on  
          data from the DOJ, there were nearly 93,300 private party  
          transactions in 2012, which would equate to DROS fee revenue of  
          $2.3 million. While data on the number of private party  
          transactions specific to the same individual attributable to  
          multiple transactions is not available, to the extent a small  
          percentage of less than ten percent of those transactions could  
          potentially be impacted due to the restrictions in this bill,  
          could result in a loss of DROS fee revenue in excess of  
          $150,000.

          Proposed author amendments address chaptering out issues with SB  
          363 (Wright) 2013.