BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 740
                                                                  Page  1

          Date of Hearing:   April 30, 2013
          Counsel:        Gabriel Caswell


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                     AB 740 (Alejo) - As Amended:  April 8, 2013

           
          SUMMARY  :  Clarifies the definition of infrequent transactions as  
          they apply to all firearms transactions, specify the regulations  
          for direct shipment sales of firearms, and requires electronic  
          notification to the Department of Justice for specified  
          conditions by state courts.  Specifically,  this bill  :  

          1)Defines "infrequent" for purposes of prohibitions on the  
            transfer of firearms as less than 6 firearms transactions per  
            calendar year, rather than merely for handguns.  Further the  
            bill would specify the definition of "transaction" for these  
            purposes to mean a single sale, lease, or transfer of any  
            number of firearms.

          2)Clarifies that state law is in line with federal law by adding  
            sections to the Penal Code which do the following:

             a)   Clarifies that it is a misdemeanor to receive a firearm  
               from a state licensed dealer where the recipient knows that  
               the transaction is illegal and has not followed  
               requirements imposed by the Penal Code for delivery of  
               firearms.

             b)   Clarifies that that transporting guns into California to  
               illegally dispose of them is a trafficking offense  
               punishable under state law as a misdemeanor.

             c)   Clarifies that a firearm purchased out-of-state by a  
               California resident, for transport into California, must go  
               through an in-state dealer, following the same procedures  
               for an in-state transaction.  Failure to do so is a  
               misdemeanor.   

          3)Requires that courts report specified information related to  
            mental status of persons in court proceedings to the  
            Department of Justice (DOJ) by electronic means, in a manner  








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            prescribed by the DOJ.  

           EXISTING LAW  :  

          1)States that under federal law, it shall be unlawful for any  
            person other than a licensed importer, licensed manufacturer,  
            licensed dealer, or licensed collector to transport into or  
            receive in the State where he resides (or if the person is a  
            corporation or other business entity, the State where it  
            maintains a place of business) any firearm purchased or  
            otherwise obtained by such person outside that State, except  
            that this paragraph:  [18 U.S.C. 922(a)(3)]

             a)   Shall not preclude any person who lawfully acquires a  
               firearm by bequest or intestate succession in a State other  
               than his State of residence from transporting the firearm  
               into or receiving it in that State, if it is lawful for  
               such person to purchase or possess such firearm in that  
               State; 

             b)   Shall not apply to the transportation or receipt of a  
               firearm obtained in conformity as specified; and

             c)   Shall not apply to the transportation of any firearm  
               acquired in any State prior to the effective date of this  
               chapter [effective Dec. 16, 1968];

          2)States that under federal law, it shall be unlawful for any  
            person (other than a licensed importer, licensed manufacturer,  
            licensed dealer, or licensed collector) to transfer, sell,  
            trade, give, transport, or deliver any firearm to any person  
            (other than a licensed importer, licensed manufacturer,  
            licensed dealer, or licensed collector) who the transferor  
            knows or has reasonable cause to believe does not reside in  
            (or if the person is a corporation or other business entity,  
            does not maintain a place of business in) the State in which  
            the transferor resides; except that this paragraph shall not  
            apply to:   [18 U.S.C. 922(a)(5)]

             a)   The transfer, transportation, or delivery of a firearm  
               made to carry out a bequest of a firearm to, or an  
               acquisition by intestate succession of a firearm by, a  
               person who is permitted to acquire or possess a firearm  
               under the laws of the State of his residence; and 









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             b)   The loan or rental of a firearm to any person for  
               temporary use for lawful sporting purposes.

          3)States that under federal law it shall be unlawful for any  
            licensed importer, licensed manufacturer, licensed dealer, or  
            licensed collector to sell or deliver any firearm to any  
            person in any State where the purchase or possession by such  
            person of such firearm would be in violation of any State law  
            or any published ordinance applicable at the place of sale,  
            delivery or other disposition, unless the licensee knows or  
            has reasonable cause to believe that the purchase or  
            possession would not be in violation of such State law or such  
            published ordinance. [18 U.S.C. 922(b)(2)]

          4)Defines "infrequent" for purposes of handgun transactions as  
            less than six per calendar year.  Defines "infrequent" for  
            purposes of long gun sales as "occasional and without  
            regularity".  The term "infrequent" shall not be construed to  
            prohibit different local chapters of the same nonprofit  
            corporation from conducting auctions or similar events,  
            provided the individual local chapter conducts the auctions or  
            similar events infrequently. It is the intent of the  
            Legislature that different local chapters, representing  
            different localities, be entitled to invoke the exemption  
            notwithstanding the frequency with which other chapters of the  
            same nonprofit corporation may conduct auctions or similar  
            events.  Specifies that "transaction" means a single sale,  
            lease, or transfer of any number of handguns. (Penal Code  
            Section 16730.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "I have seen too  
            many images of families torn apart by criminal behavior  
            involving firearms, and I'm not going to sit by idly and wait  
            for more. The safety of our children and families has to be  
            top priority and I am willing to fight for their protection.  
            AB 740 will give state law enforcement the tools to enforce  
            federal law and further deter illegal and reckless firearm  
            conduct.  This bill will not affect those who abide by the  
            law, only those who break it." 

           2)Background  :  According to the background submitted by the  








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            author, "A number of concerns have been raised as to the  
            State's ability under current state code to regulate the  
            activities of California residents going outside of  
            California, acquiring ownership of normal rifles, shotguns,  
            and handguns, and then physically bringing them back into the  
            state. 

            "It is agreed that this importation conduct violates current  
            federal law, but there are ambiguities as to the state's  
            jurisdictional authority.  Federal law in essence mandates  
            "direct ship," which means that guns can be acquired outside  
            of the state, but, to be possessed and received in-state, the  
            transaction has to be brokered through a federal firearms  
            licensee [who in California also has to be state licensed] for  
            pickup in accordance with California law. That includes  
            background checks, the waiting period, registration, etc.   
            This mandate, stemming from 18 U.S.C. 922(a)(3), (a)(5), and  
            (b)(2), creates certain procedures for bringing firearms  
            across state lines and makes certain firearm transactions  
            illegal.

            "Moreover, under current law, it is unclear if importation  
            into the state, or transportation of guns into the state, to  
            illegally dispose of the same are covered by current Penal  
            Code § 27515 or Penal Code § 27520.  Finally, it is unclear  
            whether it is a state crime for a person to receive a gun from  
            a state licensed gun dealer when that person knows or has  
            reason to know that the transaction is not legitimate. 

            "In addition to these concerns, under current code, the  
            definition of 'infrequent,' as it relates to firearms  
            transactions, is ambiguous and inconsistent; and, the  
            reporting by the courts to the Department of Justice of  
            persons adjudicated as mentally unfit to own, possess, or  
            control a firearm needs to be expedited.

            "AB 740 conforms the definition of 'infrequent' on handguns  
            and long guns to be consistent; it requires the courts to  
            electronically report information to the Department of Justice  
            to expedite the seizure of firearms from individuals  
            adjudicated as mentally unfit to own, possess, or control a  
            firearm; it mandates as a matter of state law the federal  
            'direct ship' mandate that flows form 18 USC 922(a)(3),  
            (a)(5), and (b)(2), so that it is clear that persons who go  
            out of California and bring guns back in are treated the same  








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            as an instate transfer with all the protections that flow  
            therefrom; it makes clear that transporting guns into  
            California to illegally dispose of the same is a trafficking  
            offense; and it make it clear that it is a specific crime to  
            receive a gun from a state licensed dealer where the recipient  
            knows that the transaction is illegal."    
             
           3)Argument in Support  :  According to the  Law Center to Prevent  
            Gun Violence  , "One of the critical ways that guns enter the  
            illegal market is through trafficking.  Trafficking schemes  
            employ 'straw purchasers' - individuals who are able to pass  
            background checks - to buy weapons and then illegally deliver  
            them to individuals who are prohibited from possessing  
            firearms.  Because California has the nation's strongest gun  
            laws, guns are frequently trafficked into the state by straw  
            purchasers from states with far weaker laws.  A significant  
            number of crime guns recovered in our state every year were  
            purchased in other states, including Arizona, Nevada, Texas  
            and other states with extremely weak laws.  
             
             "AB 740 would provide law enforcement with a set of new tools  
            to aggressively fight gun trafficking, especially from sources  
            outside of the state.  Among other provisions, the bill would  
            prohibit any person from bringing a firearm into the state  
            with the intent to illegally sell the weapon.  

            "This bill would also clarify the state's laws relating to the  
            licensing of firearms dealers.  Current law exempts  
            individuals who engage in 'infrequent' firearm sales from the  
            requirement to acquire a state dealer's license.  While  
            'infrequent' is defined for handgun sales as fewer than six  
            transactions within one year, the term is defined for rifles  
            and shotguns as sales that are 'occasional and without  
            regularity.'  AB 740 would clarify that 'infrequent' means  
            fewer than six transactions per year, regardless of the types  
            of firearms being sold.  

            "Finally, the bill would require that any court obligated to  
            transmit mental health information to the Department of  
            Justice must do so electronically.  This will help ensure that  
            critical mental health records are available to the Department  
            of Justice as soon as possible."

           4)Related Legislation:   AB 48 (Skinner), imposes specified  
            reporting requirements to the DOJ.  AB 48 is awaiting a  








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            hearing in the Assembly Appropriations Committee.   
           
           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Chapters of the Brady Campaign  
          Coalition Against Gun Violence 
          Law Center to Prevent Gun Violence 

           Opposition 
           
          California Right to Carry 
          One private individual/  
           
          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916)  
          319-3744