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.  








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          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  








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              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  








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          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.