BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 385 (Block) - Firearms: Private Patrol Operators: registration and assignment. Amended: April 2, 2013 Policy Vote: Public Safety 7-0 Urgency: No Mandate: No Hearing Date: May 23, 2013 Consultant: Jolie Onodera SUSPENSE FILE. AS PROPOSED TO BE AMENDED. Bill Summary: SB 385 would authorize a licensed Private Patrol Operator (PPO), as defined, to be the legal owner of a firearm, and establish procedures for PPOs to assign its firearms to its employees who are licensed to carry firearms. This bill: Requires the Department of Justice (DOJ) to modify the Dealers' Record of Sale (DROS) form to record the PPO as the owner of the firearm and to record the PPO employee to whom the firearm is transferred as the registered owner pursuant to a Certificate of Assignment (COA), as specified. Authorizes the DOJ to charge reasonable fees for the implementation of this program and deposit those fees in the DROS account. Amends existing provisions relating to the permissible uses of the DROS Special Account to permit the use of DROS funds to implement the provisions of this security guard transfer program. Fiscal Impact: One-time DOJ costs of about $1 million (Special Fund*) to enhance the registration database and update forms to accommodate the new fields for PPO designation, offset by an undetermined level of fee revenue. Ongoing workload to the Bureau of Firearms of about $500,000 (Special Fund)* for investigations and inspections. Ongoing DOJ costs of $200,000 (Special Fund*) to process background checks for PPO employees submitting COAs. *DROS Special Account Background: Private patrol operators (private security companies) are licensed and regulated by the Department of Consumer Affairs, Bureau of Security and Investigative Services. SB 385 (Block) Page 1 Possession and use of firearms by PPO employees (security guards) is specifically regulated. Under current law, companies are not authorized to be the legal owner of a firearm (with the exception of assault weapons), and it has been indicated that PPOs are utilizing the existing provisions of law that allow for firearms to be infrequently loaned to a person known to the owner, as a means of providing firearms to employees. Pursuant to PC § 27880, firearms may be loaned between persons who are personally known to each other subject to specified requirements including that the loan must be for a lawful purpose, the loan must not exceed 30 days, the individual being loaned the firearm must have a valid handgun safety certificate (if the firearm is a handgun), and the loan is infrequent, meaning less than six transactions per calendar year for handguns. To the extent PPOs are switching firearms every 30 days between firearm certified employees is not only administratively burdensome but also potentially not in the best interests of public safety. The provisions of this bill seek to alleviate the burdensome administrative process utilized by PPOs and make an exception to the normal firearms ownership laws by authorizing PPOs to be the legal owner of a firearm and assign that firearm to an employee, who would be the registered owner. Proposed Law: This bill would authorize a licensed PPO to be the legal owner of a firearm, and establish procedures for PPOs to assign its firearms to its employees who are licensed to carry firearms. This bill: Defines PPO as a private patrol operator licensed pursuant to Chapter 11.5 of the Business and Professions Code. Requires the DOJ to modify the DROS form to record the PPO as the purchaser and owner of the firearm and to record the security guard employee of the PPO to whom the firearm is transferred as the registered owner, as specified. Requires the DOJ to modify the DROS form to require the PPO to designate a "firearms custodian" for the PPO. The firearms custodian shall possess a valid firearm qualification card issued by the Department of Consumer Affairs. Requires the DOJ to prescribe a Certificate of Assignment (COA). The COA is to contain the same fields as the DROS form and will be used to identify the PPO employee assigned SB 385 (Block) Page 2 to a firearm. Requires security guards who receive a firearm pursuant to a COA to be subject to a background check, as specified. Authorizes the DOJ to charge reasonable fees for the implementation of this program to the PPO's and deposit those fees in the DROS account. Requires that if the PPO loses its license or goes out of business, the PPO must, within 30 days and unless otherwise prohibited by law, complete new DROS forms for all PPO-owned firearms and transfer those firearms to a new owner. Requires that a security guard shall, immediately upon the PPO's request, for any reason, or immediately upon separation of employment or revocation of the firearm qualification card, return the firearm to the PPO. Includes codified legislative findings and declarations. Related Legislation: AB 811 (Hall) 2011 was similar to this measure and provided for a registration and assignment process for firearms for PPOs. This bill was referred to but not provided a hearing in the Assembly Committee on Public Safety. Staff Comments: According to the Department of Consumer Affairs, there are approximately 2,700 licensed PPOs in the state. It is estimated that firearm permits have been issued to approximately 38,700 security guards. The DOJ will incur significant one-time and ongoing costs to carry out the provisions of this bill. It is estimated that DOJ would incur one-time costs of $1 million (Special Fund) to enhance the firearm registration database to accommodate the new fields prescribed by this measure, as well as to revise the DROS form as required to accommodate the new PPO designation. Ongoing workload to the Bureau of Firearms is projected of about $500,000 (Special Fund) for investigations and inspections. In addition, ongoing DOJ costs of about $200,000 (Special Fund) are estimated to process background checks for PPO employees submitting COAs. This bill provides that the DOJ shall charge a fee not to exceed the reasonable costs to the department for filing and processing a form identifying the firearms custodian of the PPO, for filing and processing a COA, and for costs incurred in enforcing the provisions of this article, including, but not limited to, processing forms required by this article, and entering information obtained pursuant to this article into the DOJ's SB 385 (Block) Page 3 Automated Firearms System and other databases as deemed necessary by the department. The ability for the DOJ to recover its implementation and operational costs associated with this measure would be dependent on the fee level established and charged, which at the time of this analysis, has not been determined by the DOJ. Author amendments would make the bill's provisions contingent upon the availability of sufficient funding to DOJ.