BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 53
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          SENATE THIRD READING
          SB 53 (De León)
          As Amended  September 6, 2013
          Majority vote

           SENATE VOTE  :23-15  
           
           PUBLIC SAFETY       5-2         APPROPRIATIONS      11-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Ammiano, Jones-Sawyer,    |Ayes:|Gatto, Bocanegra,         |
          |     |Mitchell, Quirk, Skinner  |     |Bradford,                 |
          |     |                          |     |Ian Calderon, Campos,     |
          |     |                          |     |Gomez, Hall, Holden, Pan, |
          |     |                          |     |Quirk, Weber              |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Melendez, Waldron         |Nays:|Harkey, Bigelow,          |
          |     |                          |     |Donnelly, Eggman, Linder, |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Amends existing law regarding sales of handgun  
          ammunition, as defined, to apply to all ammunition, and places  
          additional regulations on the sale, and purchase of ammunition,  
          as specified.  Specifically,  this bill  :  

          1)Amends existing law regarding sales of handgun ammunition, to  
            apply to all ammunition. 

          2)Defines "ammunition vendor" as "any person, firm, corporation,  
            dealer, or any other business enterprise that is engaged in  
            the retail sale of any ammunition, or that holds itself out as  
            engaged in the business of selling any ammunition."  

          3)Requires, beginning July 1, 2015, all ammunition vendors to be  
            licensed by the Department of Justice (DOJ) in order to sell  
            ammunition.

          4)Requires DOJ to maintain records of all ammunition vendor  
            licenses issued, all ammunition purchase permits issued and  
            all ammunition sales, once those requirements become  
            effective.

          5)Establishes the Ammunition Vendors Special Account, into which  








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            vendor license fees would be deposited and made available,  
            upon appropriation by the Legislature, to DOJ for purposes of  
            enforcing the ammunition vendor licensing provisions.

          6)Requires that the sale of ammunition shall be conducted at the  
            location specified in the ammunition vendor license, with the  
            exception of a "gun show or event," as defined.  Ammunition  
            vendors at gun shows are required to comply with ammunition  
            vendor requirements, as specified.

          7)Provides that a violation of ammunition vendor requirements,  
            as specified, is a misdemeanor but these provisions are  
            cumulative and shall not be construed as restricting the  
            application of any other law.

          8)Provides an exemption to a participant at an event organized  
            by a nonprofit mutual or public benefit corporation, where the  
            sale, or delivery is by a nonprofit mutual or public benefit  
            corporation organized, where the ammunition is to be used and  
            consumed on the premises of an event conducted by that  
            nonprofit or public benefit corporation, and the event is at a  
            target range which holds a regulatory or business license.

          9)Requires, commencing July 1, 2016, and subject to exceptions,  
            the purchaser of ammunition to be authorized to purchase  
            ammunition by the DOJ, as specified.  This bill, commencing  
            January 1, 2016, authorizes issuance of ammunition purchase  
            authorizations by the DOJ to applicants, at least 18 years of  
            age, not prohibited from acquiring or possessing ammunition,  
            and who pay the required fees, as specified.  

          10)Specifies that applicants for ammunition purchase  
            authorizations shall submit fingerprints and related  
            information required by DOJ to DOJ for the purpose of  
            obtaining information as to the existence of state and/or  
            federal criminal history reports.  

          11)Establishes a centralized list of persons authorized to  
            purchase ammunition.

          12)Commencing July 1, 2016, the vendor shall electronically  
            verify that the person is authorized to purchase ammunition by  
            referencing the centralized list of authorized ammunition  
            purchasers.  If the person is not listed as an authorized  
            ammunition purchaser, the vendor shall deny the sale.








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          13)Provides that the following are exempt from the ammunition  
            purchase requirements:

             a)   Licensed firearms dealers, as specified;

             b)   An ammunition vendor;

             c)   A person who is on the centralized list maintained by  
               DOJ of federally licensed firearms dealers, as specified; 

             d)   A target facility that holds a business or regulatory  
               license;

             e)   A gunsmith;

             f)   A wholesaler;

             g)   A licensed manufacturer or importer of firearms or  
               ammunition, as specified; and an authorized law enforcement  
               representative of a city, county, city and county, or state  
               or federal government, if the sale for exclusive use by  
               that government agency, as specified.

             h)   Specified law enforcement agencies and officers  
               authorized to carry firearms.  

          14)Establishes requirements with respect to ammunition purchase  
            permits, as specified.

          15)Includes "ammunition" in the Armed Prohibited Persons System  
            (APPS) provisions to integrate ammunition purchaser database  
            with the APPS list.  Requires ammunition vendors to submit  
            records of sales to DOJ.

          16)Requires the DOJ to submit a report to the Legislature  
            concerning recommended improvements to background checks,  
            examination of costs for maintaining an enhanced system of  
            background checks, the feasibility of integrating systems, and  
            other specified related topics.  

          17)Specifies that ammunition may be transferred if purchased  
            over the Internet or other means of remote ordering if an  
            ammunition vendor in California initially receives the  
            ammunition and processes the transfer in compliance with  








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            specified provisions.  An ammunition vendor is not required to  
            house ammunition orders longer than 30 days.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, significant one-time and ongoing special fund  
          fee-based costs - in the low tens of millions - over several  
          years for ammunition purchase authorization and vendor  
          licensing.  This assumes six million ammunition purchasers,  
          based on 20% to 30% of the population owning guns.  Though costs  
          would be covered by fees, the issue of funding for start-up  
          costs is a concern, as it is not clear that projected Dealer  
          Record of Sale (DROS) reserves would be sufficient to serve as a  
          bridge to the new fee revenues. According to a detailed analysis  
          from DOJ:

           1)Vendor licensing  . These costs would be covered by applicant  
            fees, which would be deposited into the Ammunition Vendor  
            Special Account, created by this bill. 

             a)    One-time costs in the $1.5 million range for software  
               development and staffing. 

             b)   Ongoing costs in the $400,000 range for background  
               checks and oversight.

           2)Ammunition purchase background checks  :

             a)   One-time special fund costs of about $600,000 and  
               ongoing special fund costs of about $3.4 million for  
               staffing to process vendor and ammunition purchaser  
               background checks.

             b)   One-time special fund costs of about $900,000 and  
               ongoing special fund costs of about $1.8 million for  
               database design, support, enhancement, and maintenance.

             These costs would be covered by applicant fees, which would  
               be deposited into the Dealer Record of Sale (DROS) Account  
               and the Ammunition Vendor's Special Account.

           COMMENTS :  According to the author, "California has enacted  
          legislation designed to keep guns out of the hands of criminals,  
          but it has done little to prevent dangerous criminals, gang  
          members, and the criminally insane from procuring the ammunition  
          that fuels gun violence. Several cities require ammunition  








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          vendors to check purchasers' identification and keep records of  
          sales. Those record keeping systems have been a valuable  
          investigative tool leading law enforcement agents to criminals  
          that have illegally purchased ammunition. Nevertheless, the  
          scope of such ordinances is limited because criminals can  
          circumvent them by going to neighboring cities without similar  
          requirements and load up on ammunition. In 2008, the Sacramento  
          Police Department's ammunition sales records helped lead to the  
          arrest of over 150 felons, rapists, murderers, and other  
          dangerous criminals who not only illegally possessed ammunition,  
          but numerous firearms as well. A 2006 RAND Corporation study  
          concluded that, in just a two-month period in Los Angeles,  
          felons and others prohibited by law from possessing firearms  
          purchased over 10,000 rounds of ammunition at gun shops and  
          sporting goods stores across the city.  By extrapolating those  
          numbers statewide, it becomes clear that millions of rounds of  
          ammunition are being sold to dangerous criminals every year. 

          "Senate Bill 53 addresses these deficiencies in the law by  
          creating comprehensive ammunition regulations that ensure that  
          criminals and other dangerous individuals cannot purchase  
          ammunition. Under this proposal, a statewide standard on  
          ammunition sales would be created, providing law enforcement  
          with clear information on who is selling and buying ammunition.

          "Senate Bill 53 requires ammunition vendors to be licensed in  
          order to know who is actually selling ammunition in California.  
          Additionally, SB 53 requires purchasers to pass a background  
          check in order to buy ammunition.  The Department of Justice  
          will keep a list of all authorized ammunition purchasers, which  
          vendors will use to verify that individuals are not prohibited  
          from purchasing ammunition. By doing so, this measure will make  
          ammunition accessible only to lawful gun owners, and not  
          dangerous criminals.

          "According to the recent USC Dornsife/Los Angeles Times Poll,  
          79% of Californians support requiring ammunition buyers to  
          undergo a background check, and a clear majority of gun owners  
          (2 out of every 3) want the same.  The poll makes clear that  
          Californians want to prevent criminals, domestic batterers, and  
          the criminally insane from freely being able to acquire  
          ammunition. Senate Bill 53 works toward that end by ensuring  
          that only law-abiding citizens can purchase ammunition in  
          California."









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          Please see the policy committee analysis for a full discussion  
          of this bill.
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916)  
          319-3744 


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