BILL NUMBER: AB 187	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 15, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly  Member   Bonta
  Members   Bonta   and Dickinson


                        JANUARY 28, 2013

   An act to amend Section 1656.1 of the Civil Code, to add Title 7
(commencing with Section 14001) to Part 4 of the Penal Code, and to
add  Section 6012.4 to, and to add  Part 14.5 (commencing
with Section 33001) to Division 2  of   of,
 the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 187, as amended, Bonta. Taxation: ammunition:  School-Based
Early Mental Health Intervention and Prevention Services Matching
Grant Program:  Public Safety Emergency Prevention Fund.
   Existing sales and use tax laws impose taxes on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.

   Existing law, the School-Based Early Mental Health Intervention
and Prevention Services Matching Grant Program, authorizes the
Director of Mental Health, in consultation with the Superintendent of
Public Instruction, to award matching grants to local educational
agencies to pay the state share of the costs of providing programs
that provide school-based early mental health intervention and
prevention services to eligible pupils at schoolsites of eligible
pupils, in accordance with specified criteria. 
   This bill would impose a tax upon retailers for the privilege of
selling ammunition at the rate of 10% of the gross receipts of any
retailer from the sale of ammunition sold at retail in this state on
or after  January   July  1, 2014. It would
also impose a comparable excise tax on the storage, use, or other
consumption in this state of ammunition purchased from a retailer for
the storage, use, or other consumption in this state, as provided.
The taxes would be collected pursuant to the Fee Collection
Procedures Law. This bill would require that revenues collected
pursuant to these taxes be deposited in  the Ammunition Tax Fund,
which this bill would create. This bill would require, upon
appropriation by the Legislature, moneys in the Ammunition Tax 
 Fund to be allocated in specified percentages to the
School-Based Early Mental Health Intervention and Prevention Services
Matching Grant Program, and to  the Public Safety Emergency
Prevention Fund, which the bill would create.  The 
 This bill would require the  moneys in the  fund
would be allocated     Public   Safety
Emergency Prevention Fund  , upon appropriation by the
Legislature, to  be expended by  the Office of Emergency
Services to fund public safety programs in high crime municipalities.

   Because this bill would expand the scope of the Fee Collection
Procedures Law, the violation of which is a crime, and would create
crimes for specified retailer misconduct, it would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
   This bill would take effect immediately as a tax levy.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a)  (1)    California recognizes a clearly
defined nexus between the use of guns in violent crime and access to
guns and ammunition. 
   (b) 
    (2)  While many factors can contribute to an increase in
gun crime, one important way to reduce crime is through proper
funding of public safety services. 
   (c) 
    (3)  Communities, such as Oakland and Stockton, have
been suffering from spikes in violent crime with 131 and 71 homicides
reported in 2012, respectively, in conjunction with reductions in
public safety budgets and street-level police forces. There is a
clear and compelling risk to the safety of the public in these
communities. 
   (d) 
    (4)  The Legislature, therefore, finds and declares that
providing a source of stable revenue through a tax on the sale of
ammunition to fund vital public safety programs in high crime
municipalities will serve California's best interest by likely
reducing acts of violence committed with a deadly weapon in the state
and thereby promoting the health and safety of the state's
residents. 
   (b) (1) People with mental illness are no more likely to commit
violent acts than are others. California law, however, does restrict
the ownership of guns by individuals who have been adjudicated as
being a danger to themselves or others because of mental illness.
 
   (2) The ability of mental health professionals to predict any
particular mental disorder or disordered individual as being likely
responsible for or likely to commit an act of violence with a deadly
weapon is weak. Nonetheless, recent tragic events involving mass
shootings in Connecticut, Colorado, Arizona, and elsewhere are
revealing a pattern of young individuals who are suffering from some
form of mental illness that progressed from mild or moderate to more
serious conditions, when those individuals' mental illness was not
identified and treated at an early age.  
   (3) Research has found that there is a clear relationship between
early adjustment problems and later adolescent problems, and that
many of these adjustment problems are due to mild to moderate mental
disorders among schoolage children. In many cases, signs of these
problems can be detected in early school grades.  
   (4) Treating mental illness in a timely manner before conditions
become more severe, in conjunction with restricting gun ownership by
individuals adjudicated as being a danger to themselves or others,
may be a productive approach for reducing the extent to which some
people suffering from mental illness commit a violent act with the
use of a deadly weapon.  
   (5) In 1991 California enacted the School-Based Early Mental
Health Intervention and Prevention Services Matching Grant Program
(EMHI). This program is intended to ensure that pupils will receive
the benefits of school-based early mental health intervention and
prevention services that will enhance the mental health and social
development of children.  
   (6) Scientific evaluation of EMHI has shown dramatic improvements
in adjustment behavior among children in grades 1 to 3, inclusive,
and success in reducing the incidence of early mild to moderate
mental illness. Further, the improvement in children's behavior has
been shown to continue through their later school years.  
   (7) Due to state budget constraints EMHI was defunded in the
2012-13 Budget Act. The Legislature, therefore, finds and declares
that providing a source of stable revenue to continue the EMHI
matching grants is in California's best interest, both in economic
and human terms, to identify and treat the minor and moderate mental
difficulties that children experience before they become serious
mental disorders. The Legislature further finds and declares that a
reduction in the incidence of mental illness is likely to reduce acts
of violence committed with a deadly weapon in our state, and
therefore a tax on the sale of ammunition is a means of refunding the
EMHI program. 
  SEC. 2.  Section 1656.1 of the Civil Code is amended to read:
   1656.1.  (a) Whether a retailer may add sales tax reimbursement to
the sales price of the tangible personal property sold at retail to
a purchaser depends solely upon the terms of the agreement of sale.
It shall be presumed that the parties agreed to the addition of sales
tax reimbursement to the sales price of tangible personal property
sold at retail to a purchaser if:
   (1) The agreement of sale expressly provides for  such
  that  addition of sales tax reimbursement;
   (2) Sales tax reimbursement is shown on the sales check or other
proof of sale; or
   (3) The retailer posts in his or her premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that reimbursement for sales tax will be added
to the sales price of all items or certain items, whichever is
applicable.
   (b) It shall be presumed that the property, the gross receipts
from the sale of which is subject to the sales tax, is sold at a
price which includes tax reimbursement if the retailer posts in his
or her premises, or includes on a price tag or in an advertisement,
whichever is applicable, one of the following notices:
   (1) "All prices of taxable items include sales tax reimbursement
computed to the nearest mill."
   (2) "The price of this item includes sales tax reimbursement
computed to the nearest mill."
   (c) (1) The State Board of Equalization shall prepare and make
available for inspection and duplication or reproduction a sales tax
reimbursement schedule which shall set forth the various rates of tax
then in effect as applied to price ranges from one cent ($0.01) to
at least one dollar ($1).
   (2) Reimbursement on sales prices in excess of those shown in the
schedules prepared pursuant to paragraph (1) may be computed by
applying the applicable tax rate to the sales price, rounded off to
the nearest cent by eliminating any fraction less than one-half cent
and increasing any fraction of one-half cent or over to the next
higher cent.
   (3) If sales tax reimbursement is added to the sales price of
tangible personal property sold at retail, the retailer shall use a
schedule provided by the board, or a schedule approved by the board.
   (d) The presumptions created by this section are rebuttable
presumptions.
   (e) For purposes of this section, as applied to Part 14.5
(commencing with Section 33001) of Division 2 of the Revenue and
Taxation Code, sales tax reimbursement shall refer to reimbursement
for the tax imposed by that part, and tangible personal property
shall include ammunition as defined under that part.
  SEC. 3.  Title 7 (commencing with Section 14001) is added to Part 4
of the Penal Code, to read:

      TITLE 7.  Public Safety Emergency Prevention Fund


   14001.  The Public Safety Emergency Prevention Fund is hereby
created in the State Treasury.  All moneys raised pursuant to
the taxes imposed by Sections 33021 and 33022 of the Revenue and
Taxation Code shall be deposited in the Public Safety Emergency
Prevention Fund. 
   14002.  All moneys in the fund shall, upon appropriation by the
Legislature, be expended by the Office of Emergency Services to
support public safety programs in high crime municipalities.
   SEC. 4.    Section 6012.4 is added to the  
Revenue and Taxation Code   , to read:  
   6012.4.  For purposes of this part, "gross receipts" shall not
include the amount of any tax imposed upon ammunition pursuant to
Part 14.5 (commencing with Section 33001). 
   SEC. 4.   SEC. 5.   Part 14.5
(commencing with Section 33001) is added to Division 2 of the Revenue
and Taxation Code, to read:

      PART 14.5.  Ammunition Tax Law


      CHAPTER 1.  GENERAL PROVISIONS AND DEFINITIONS


   33001.  This part shall be known and may be cited as the
Ammunition Tax Law.
   33002.  For purposes of this part:
   (a) "Ammunition" includes, but is not limited to, any bullet,
cartridge, or projectile capable of being fired from a firearm with a
deadly consequence. "Ammunition" does not include blanks.
   (b) "Firearm" means a device, designed to be used as a weapon,
from which is expelled through a barrel, a projectile by the force of
an explosion or other form of combustion.
   (c) "Retailer engaged in business in this state" has the same
meaning as defined in Section 6203.
   33012.  Unless the context otherwise requires, the definitions
provided in Chapter 1 (commencing with Section 6001) of Part 1 govern
the construction of this part.
      CHAPTER 2.  IMPOSITION OF TAX


   33021.  In addition to the tax imposed under Chapter 2 (commencing
with Section 6051) of Part 1, for the privilege of selling
ammunition at retail there is hereby imposed a tax upon all retailers
at the rate of 10 percent of the gross receipts of any retailer from
the sale of all ammunition sold at retail in this state on or after
 January   July  1, 2014.
   33022.  (a) In addition to the tax imposed under Chapter 3
(commencing with Section 6201) of Part 1, an excise tax is hereby
imposed on the storage, use, or other consumption in this state of
ammunition purchased from any retailer on or after  January
 July  1, 2014, for storage, use, or other
consumption in this state at the rate of 10 percent of the sales
price of the ammunition.
   (b) Every person storing, using, or otherwise consuming in this
state ammunition purchased from a retailer is liable for the tax. His
or her liability is not extinguished until the tax has been paid to
this state except that a receipt from a retailer engaged in business
in this state or from a retailer who is authorized by the board,
under the rules and regulations as it may prescribe, to collect the
tax and who is, for the purposes of this part relating to the use
tax, regarded as a retailer engaged in business in this state, given
to the purchaser pursuant to subdivision (c) is sufficient to relieve
the purchaser from further liability for the tax to which the
receipt refers.
   (c) Every retailer engaged in business in this state and making
sales for storage, use, or other consumption in this state, not
exempted under Chapter 3 (commencing with Section 33031), shall, at
the time of making the sales or, if the storage, use, or other
consumption of ammunition is not then taxable hereunder, at the time
the storage, use, or other consumption becomes taxable, collect the
tax from the purchaser and give to the purchaser a receipt therefor
in the manner and form prescribed by the board.
   (d) The tax required to be collected by the retailer and any
amount unreturned to the customer which is not tax but was collected
from the customer under the representation by the retailer that it
was tax constitutes debts owed by the retailer to this state.
   (e) It is unlawful for any retailer to advertise or hold out or
state to the public or to any customer, directly or indirectly, that
the tax or any part thereof will be assumed or absorbed by the
retailer or that it will not be added to the selling price of the
 property   ammunition  sold or that if
added it or any part thereof will be refunded.
   (f) The tax required to be collected by the retailer from the
purchaser shall be displayed separately from the list price, the
price advertised in the premises, the marked price, or other price on
the sales check or other proof of sales.
   (g) Any person violating subdivision (c), (e), or (f) is guilty of
a misdemeanor.
      CHAPTER 3.  EXEMPTION


   33031.  There are exempted from the taxes imposed by this part,
the sale of, or the storage, use, or other consumption of, ammunition
purchased  by any peace officer required to carry or use a
firearm that uses ammunition while on duty, or  by any
governmental law enforcement agency employing  that 
 a  peace  officer,   officer 
for use  by that peace officer  in the normal course of
employment.
      CHAPTER 4.  COLLECTION AND ADMINISTRATION


   33041.  The board shall administer and collect the  tax
  taxes  imposed by this part pursuant to the Fee
Collection Procedures Law (Part 30 (commencing with Section 55001)).
For purposes of this part, the references in the Fee Collection
Procedures Law to "fee" shall include the  tax  
taxes  imposed by this part and references to "feepayer" shall
mean any person liable for the payment of the taxes imposed under
this part and collected pursuant to that law.
   33042.  The taxes imposed by this part are due and payable to the
board quarterly on or before the last day of the month next
succeeding each quarterly period of three months.
   33043.  On or before the last day of the month following each
quarterly period a return for the preceding quarterly period shall be
filed with the board.
      CHAPTER 5.  DISPOSITION OF PROCEEDS


   33051.  All amounts required to be paid under this part shall be
made in remittances to the board, and those revenues, net of refunds
and costs of administration, and shall be deposited in the 
Public Safety Emergency Prevention Fund, established pursuant to
Section 14001 of the Penal Code.   Ammunition Tax Fund,
which is hereby created in the State Treasury. Upon appropriation by
the Legislature, the moneys in the fund shall be allocated as
follows:  
   (a) Thirty-three and one-third percent to the School-Based Early
Mental Health Intervention and Prevention Services Matching Grant
Program (Chapter 2 (commencing with Section 4380) of Part 4 of
Division 4 of the Welfare and Institutions Code).  
   (b) Sixty-six and two-thirds percent to the Public Safety
Emergency Prevention Fund, established pursuant to Section 14001 of
the Penal Code for the purposes described in Section 14002 of the
Penal Code. 
   SEC. 5.   SEC. 6.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
   SEC. 6.   SEC. 7.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.