BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 538 (Pan) - Firearms: transfers. Amended: June 4, 2013 Policy Vote: Public Safety 5-2 Urgency: No Mandate: Yes Hearing Date: June 24, 2013 Consultant: Jolie Onodera This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 538 would make a series of changes to firearm purchase and transfer processes, as specified. Fiscal Impact: One-time administrative costs to the Department of Justice (DOJ) of $143,000 (Special Fund*) in Fiscal Year (FY) 2013-14 and $27,000 (Special Fund*) in FY 2014-15 to develop and modify the Automated Firearm System (AFS) to accommodate the new record information requirements. Minor ongoing non-reimbursable local law enforcement costs. *Dealer Record of Sale (DROS) Special Account Background: Under existing law, firearms dealers are required to obtain identification and other information from prospective firearm purchasers and transmit that information to the DOJ via the DROS form. The prospective buyer must wait 10 days before taking possession of the firearm during which time the DOJ conducts a background check to determine whether the buyer is prohibited from owning a firearm. If the DOJ does not notify the dealer that the purchaser is prohibited from firearm ownership, the purchaser may take possession after the 10-day waiting period. The dealer is required to record the date and time the firearm was delivered to the buyer and is required to maintain the record for at least three years. In the event the buyer does not take possession of the firearm within 30 days, it must be reported to the DOJ. Failure to report to the DOJ is punishable as a misdemeanor, forfeiture of the dealer's license, or both. Under current law, dealers are required to provide a copy of the DROS form when the AB 538 (Pan) Page 1 buyer takes possession of the firearm upon the request of the buyer. Existing law also allows buyers to check with the DOJ to determine whether the DOJ lists them as the owner of any firearm. This bill seeks to address the potential situation in which a person purchases a firearm but fails to take possession of that firearm, and subsequently, the dealer does not report that fact to the DOJ. In this case, the person would still appear in DOJ records as the owner of the firearm despite not taking possession of the firearm. This bill would also make a series of changes to existing firearm purchase and transfer provisions. Proposed Law: This bill would make the following changes to firearm purchase and transfer processes: (1) Creates an exemption from normal firearms transfer requirements for firearms transferred by a law enforcement agency to licensed firearms dealers, wholesalers, or manufacturers, so long as the transaction is reported to the DOJ. If the agency sells, delivers, or transfers a firearm to a licensed firearms dealer, the agency must enter a record of the delivery into the AFS via the California Law Enforcement Telecommunications System (CLETS) within 10 days. (2) Clarifies that law enforcement agencies are required to report to the DOJ, as specified, the disposition of any weapon in their possession whether the weapon is retained, transferred, sold, or destroyed. (3) Requires firearms dealers to provide a firearms buyer with a copy of the DROS form at the time of delivery of the firearm and after the dealer notes the date of delivery and the dealer provides a signature verifying the delivery and the purchaser acknowledges receipt of the firearm. (4) Requires the record or register of electronic transfer for all firearms to include the following additional information: Any applicable waiting period exemption information. A statement on the DROS form advising purchasers of their right to request firearms ownership information from DOJ, their right to file reports with DOJ regarding such ownership, and information regarding how to access DOJ's website. The dealer's signature indicating delivery of the AB 538 (Pan) Page 2 firearm. The purchaser's signature indicating that the firearm has been delivered. (1) Makes other technical, non-substantive changes to the language of various firearms statutes. Staff Comments: The DOJ has indicated the provisions of this bill will result in one-time staffing costs of $143,000 in FY 2013-14 and $27,000 in FY 2014-15 to make the necessary changes to the AFS to accommodate the new requirements for the record. The record that is entered into the AFS via the CLETS would be required to include any applicable waiting period exemption information. Estimated costs include overtime hours for existing staff as well as an external consultant to assist with the one-time development activities to modify the AFS. All other provisions are estimated to result in minor, absorbable ongoing costs to the DOJ, as well as minor non-reimbursable local law enforcement costs.