BILL ANALYSIS Ó SB 53 Page 1 SENATE THIRD READING SB 53 (De León) As Amended August 22, 2014 Majority vote SENATE VOTE :23-15 PUBLIC SAFETY 5-2 ----------------------------------------------------------------- |Ayes:|Ammiano, Jones-Sawyer, | | | | |Quirk, Skinner, Stone | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Melendez, Waldron | | | | | | | | ----------------------------------------------------------------- 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, 2016, 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 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 SB 53 Page 2 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)Includes "ammunition" in 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. 10)Requires 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. 11)Provides that legislative intent to ensure that prohibited persons do not have access to ammunition by requiring that any individual who wants to purchase ammunition in California have a background check, and to streamline the ammunition application process. The Legislature also finds and declares that due to technological restrictions and cost concerns, a felony-only background check is the only background check that can be performed for ammunition purchases. Furthermore, the Legislature finds and declares that given that the existing firearms eligibility background check is more extensive than the ammunition authorization felony screening, rather than requiring firearms owners to go through a new background check, DOJ may use automated firearms records of sales to reference the Prohibited Armed Persons File to verify that a firearms owner has not become prohibited from purchasing ammunition. SB 53 Page 3 12)Exempts contract or common carriers or their authorized agents, when acting in conformance with applicable federal law, from the requirement that delivery or transfer of handgun ammunition must be made face to face with bona fide evidence of identity. 13)Requires vendor licenses with a requirement that vendors submit ammunition sales records to DOJ to run daily against the Armed Prohibited Persons Database. 14)Exempts validly licensed hunters from the ammunition face-to-face purchase requirements which permits online sales. 15)Authorizes funding from the Firearms Safety and Enforcement Special Fund upon appropriation from the DOJ for the purposes of implementing the provisions of this bill. 16)Add double joining language to prevent chaptering out issues with SB 808 (De León) of the current legislative session, should both bills become operative. 17)Incorporate the changes made by the recently chaptered AB 1798 (Public Safety Committee), Chapter 103, Statutes of 2014 to prevent chaptering issues. 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 SB 53 Page 4 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 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 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 SB 53 Page 5 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 [University of Southern California] 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." Please see the policy committee analysis for a full discussion of this bill. Analysis Prepared by : Gabriel Caswell / PUB. S. / (916) 319-3744 FN: 0005324