BILL ANALYSIS Ó SB 475 Page 1 Date of Hearing: June 25, 2013 Counsel: Gabriel Caswell ASSEMBLY COMMITTEE ON PUBLIC SAFETY Tom Ammiano, Chair SB 475 (Leno) - As Introduced: February 21, 2013 SUMMARY : Provides that gun shows at the Cow Palace can occur only upon prior approval of both the Board of Supervisors of the County of San Mateo and the City and County of San Francisco, as specified. Specifically, this bill : 1)Provides that an officer, employee, operator, or lessee of Agricultural District 1-A, as defined, may contract for, authorize, or allow an event at which a firearm or ammunition is sold on the property or in the buildings that comprise the Cow Palace property in San Mateo County and the City and County of San Francisco or any successor or additional property owned, leased, or otherwise occupied, or operated by the district, only upon prior approval, by resolution, adopted by both the Board of Supervisors of the County of San Mateo and the Board of Supervisors of the City and County of San Francisco. 2)A violation of these provisions would be a misdemeanor punishable by imprisonment in a county jail not to exceed six months, by a fine not to exceed $1,000, or by both a fine and imprisonment. EXISTING LAW : 1)Provides the following pertaining to the Cow Palace, a state-owned facility managed by Agricultural District 1-A: (California Food and Agricultural Code Sections 3851 and 3853.) a) Defines "state designated fairs" as fairs, as specified, that may receive financial support or are otherwise governed pursuant to specified sections of law. The district agricultural associations and their locations are as follows: ? (2) District 1-A, held in the City of San Francisco. SB 475 Page 2 b) Provides that the state is divided into agricultural districts, including "District 1-A is the County of San Mateo and the City and County of San Francisco." c) Provides that an association, with the approval of both the Department of Food and Agriculture and the Department of General Services, may do any of the following: i) Contract. ii) Purchase, acquire, hold, sell, exchange, or convey any interest in real or personal property and beautify or improve that property, as specified. iii) Lease, let, or grant licenses for the use of its real estate or personal property, or any portion of that property, to any person or public body for whatever purpose may be approved by the board. iv) Use or manage its real estate or personal property, or any portion of that property, for any or all of the purposes of this section jointly with any lessee, sublessee, or licensee, or otherwise use or manage the property in connection with the lease, sublease, or license which is made or granted. v) Lease or let its real property for public park, recreational, or playground purposes. vi) Rent or permit the use of its premises for any purpose which is beneficial to the agricultural industry, including, but not limited to, the holding of sales or auctions of cattle or other livestock. vii) Contract with any county or county fair association for holding a fair jointly with the county or county fair association. The joint fair is a district fair of the association. viii) Make permanent improvements upon publicly owned real property adjacent to real property of the district when the improvements materially benefit the property of the district. SB 475 Page 3 ix) Pledge any and all revenues, moneys, accounts, accounts receivable, contract rights, and other rights to payment of whatever kind, pursuant to such terms and conditions as are approved by the board, as specified. 2)Requires generally that the sale, loan or transfer of a firearm (handguns, rifles and shotguns) in California - including private party transactions and including transactions at gun shows - must be conducted through a state licensed firearms dealer or through a local sheriff's department in counties of less than 200,000 population. A 10-day waiting period, background check, and Handgun Safety Certificate for handgun transfers are required prior to delivery of the firearm. Firearms dealers are allowed to conduct business only in their licensed premises, sell their gun inventory at gun shows or events, or process private sales or transfers of any firearms at gun shows or events. Handgun purchases are limited to no more than one per 30-day period. Transferees must be California residents and no person under age 21 may buy a handgun and no person under 18 years of age may buy a rifle or shotgun. (Penal Code Sections 12071, 12072, 12082, and 12084.) Numerous other requirements in law pertain to the transfer of firearms, including prohibited categories of persons who may not possess firearms. There are a number of criminal penalties applicable to those firearm provisions. (Penal Code Sections 12021 and 12021.1.) 3)Specifies a number of specified requirements on gun show operators, attendees at gun shows, and the Department of Justice. (Penal Code Sections 12071.1 and 12071.4.) FISCAL EFFECT : Unknown COMMENTS : 1)Author's Statement : "SB 475 will help bring local input into the decision to host one of the largest gun shows in one of the communities hardest hit by violent crime in the Bay Area. "Every year at least five gun shows are held at the Cow Palace, which straddles the counties of San Francisco and San Mateo. The facility is located directly across from the Sunnydale public housing project and near the communities of Visitacion Valley, Bayview-Hunters Point and the Mission District. These communities have been plagued by gun violence SB 475 Page 4 for years. Between 2005 and 2009, these communities have accounted for 44% of the homicides and more than 30% of the guns seized in the City and County of San Francisco. "In the last 6 months alone there have been 75 homicides and gun-related crimes in a two-mile radius of the Cow Palace, in the City and County of San Francisco. "These statistics speak to the difficultly that these communities have faced in controlling the impact of guns and related violence in the areas near the Cow Palace. The efforts by schools, law enforcement, and residents are made more difficult when gun show comes to town every other month. The images and messages associated with these shows often undermine the hard work of these communities to reduce gun-related crimes and to create a safer environment for children and their families. "Because the Cow Palace is a state facility, which is owned and managed by the California Department of Agriculture's Division of Fairs and Expositions, state legislation is necessary to allow the counties of San Mateo and San Francisco to have a voice in the decision to host these shows at the facility." 2)Current Cow Palace Usage : According to a San Francisco Chronicle article, "The Cow Palace was opened in 1941 and is an agency of the California Food and Agricultural Department's Division of Fairs and Expositions. Originally built to serve as a livestock pavilion, it now holds 100 events annually, including four to six gun shows as well as more innocuous activities including rodeos, dog shows, circuses and Disney on Ice. "San Francisco . . . adopted legislation banning gun shows on city and county property. Other counties, including Alameda, Marin and Los Angeles, have passed similar bans. But because the Cow Palace sits on state-owned land between San Francisco and San Mateo County, local governing bodies don't have authority over its gun shows." [Knight, SF Mayor, Police Chief Call for Gun-Show Ban at Cow Palace, San Francisco Chronicle (Aug. 10, 2007) p. B-1.] 3)Existing Regulations of Gun Shows : Existing law requires that firearms transactions must take place through a licensed SB 475 Page 5 firearms dealer and involves a background check, a 10-day waiting period before delivery of the firearm to the transferee, and a Handgun Safety Certificate possessed by the transferee if the firearm is a handgun. In addition, AB 295 (Corbett) Chapter 247, Statutes of 1999, amended the law pertaining to gun shows and added the Gun Show Enforcement and Security Act of 2000 which includes a number of requirements for producers that promote gun shows. To obtain a certificate of eligibility from the DOJ, a promoter must certify that he or she is familiar with existing law regarding gun shows; obtain at least $1 million of liability insurance; provide an annual list of gun shows the applicant plans to promote; pay an annual fee of $85; make available to local law enforcement a complete list of all entities that have rented any space at the show; submit not later than 15 days before the start of the show an event and security plan; submit a list to DOJ of prospective vendors and designated firearms transfer agents who are licensed dealers; provide photo identification of each vendor and vendor's employee; prepare an annual event and security plan; and require all firearms carried onto the premises of a show to be checked, cleared of ammunition, secured in a way that they cannot be operated, and have an identification tag or sticker attached. AB 295 also provided for a number of penalties for a gun show producer's willful failure to comply with the specified requirements. 4)The Sale of Guns is Commercial Speech : The Supreme Court has defined commercial speech as speech that "does no more than propose a commercial transaction." [Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council (1976) 425 U.S. 748, 762; Board of Trustees of the State Univ. of N.Y. v. Fox (1989) 492 U.S. 469, 482.] An offer to sell firearms or ammunition is speech that "does no more than propose a commercial transaction. Such an offer is, therefore, commercial speech within the meaning of the First Amendment." [Nordic v. Santa Clara County (9th Cir. Cal. 1997) 110 F.3d 707, 710.] To survive First Amendment scrutiny, a restriction on commercial speech must: (a) concern lawful activity; (b) be truthful; (c) directly advance a substantial governmental interest; and (d) be no more extensive than necessary to serve that SB 475 Page 6 interest. [See Central Hudson Gas & Elec. Corp. v. Public Serv. Comm'n of New York (1980) 447 U.S. 557; see also Greater New Orleans Broadcasting Ass'n. Inc. v. United States (1999) 527 U.S. 173 (applying the Central Hudson test to a commercial speech case); Pearson v. Edgar (7th Cir. 1998) 153 F.3d 397 (same).] a) Firearm Ban on County Property Through Contract : The Ninth Circuit of the United States Court of Appeals, Nordyke v. Santa Clara County (9th Cir. Cal. 1997) 110 F.3d 707, held that Santa Clara County violated the First Amendment to the United States Constitution by preventing the operation of gun shows in Santa Clara County. The County, which owned the Santa Clara Fairgrounds, had inserted a clause in a lease contract to attempt to prevent the lessee from subleasing the fairgrounds to gun shows. Thus, gun shows were not illegal. The County had attempted to prevent them by a contract clause. The Court explained that since guns were legal to sell, an offer to sell a gun at a gun show is a constitutionally protected exercise of free expression under the First Amendment. However, the Court explained, if the County had made the sale of guns illegal (and assuming the County had the authority to do so), it would not violate the First Amendment to prohibit gun shows. A total ban on gun shows on county property is within the scope of a county's authority. "Under California Government Code section 23004(d), a county is given substantial authority to manage its property, including the most fundamental decision as to how the property will be used and that nothing in the gun show statutes evince intent to override that authority. The gun show statutes do not mandate that counties use their property for such shows. If the county does allow such shows, it may impose more stringent restrictions on the sale of firearms than state law prescribes." (Id. at 766.) At the time of the Ninth Circuit decision, there was no local ordinance prohibiting gun shows. b) County Ordinances May Ban the Sale of Firearms on County Property : In a companion case, Great W. Shows, Inc. v. County of L.A. (2002) 27 Cal.4th 853, an operator of gun shows brought an action in federal district court against Los Angeles County seeking an injunction against enforcement of a county ordinance prohibiting the sale of SB 475 Page 7 firearms and ammunition on county property. The California Supreme Court held that state law neither preempted the county ordinance, nor did it compel counties to allow their property to be used for gun shows where guns and ammunition were sold. (Id. at 861.) The Legislature has preempted discrete areas of gun regulation rather than the entire field of gun control. (Id. at 861.) " . . . [S]tate law tends to concentrate on specific areas, leaving unregulated other substantial areas relating to the control of firearms, indicates an intent to permit local governments to tailor firearms legislation to the particular needs of their communities." (Suter v. City of Lafayette (1997) 57 Cal.App.4th 1109, 1119.) Government Code Section 23004(d) authorizes counties to manage their own property, and that includes deciding how the property may be used, whether that decision is embodied in a contract with a private party, in an ordinance, or in some combination of the two. (Great W. Shows, Inc., supra, 27 Cal.4th at 871.) c) Cow Palace is Situated on State-Owned Land : Both Great Western and Nordyke stand for a narrow proposition that state gun show regulations - which expressly contemplate additional local regulation - do not preclude local governments from banning the sale or possession of firearms and ammunition at gun shows on county-owned public property. The Cow Palace is not county-owned public property, thus the Legislature must enact a law to specifically ban gun shows. County and or city bans of gun shows on the aforementioned property are unenforceable. 5)Argument in Support : According to the California Chapters of the Brady Campaign to Prevent Gun Violence , "The Cow Palace is a State owned property located in both San Francisco and San Mateo counties. State owned fairgrounds are generally operated by the State Department of Food and Agriculture and are exempt from local ordinances. Senate Bill 475 requires that before events in which firearms or ammunition are sold at the Cow Palace, prior approval must be obtained from the San Mateo and San Francisco county boards of supervisors. "Local jurisdictions have the primary responsibility for providing for the public safety of their communities. Local entities are often able to adopt ordinances more stringent than those that apply to the State as a whole in order to protect their citizens. Despite advances in gun show SB 475 Page 8 regulation, local communities plagued by gun violence may find that gun shows still pose an unacceptable risk to public safety. "We understand that both San Mateo County and San Francisco County adopted resolutions in 2003 asking the California Legislature to terminate gun shows at the Cow Palace. Ten years later, the Legislature has failed to act and the resolutions are not binding on State property. "The Brady Campaign to Prevent Gun Violence, as a matter of general principle, neither supports nor does it oppose firearm bans. The Brady Campaign, however, does strongly support the right of local communities to adopt measures to enhance local public safety. Accordingly, the California Brady Campaign Chapters support SB 475." 6)Argument in Opposition: According to Crossroads of the West : "We have been the operator of the gun shows at the Cow Palace for 25 years. During that time, no gun sold at the show has ever been reported by law enforcement as a crime gun. All laws pertaining to gun shows have always been strictly followed. "We have also actively participated in the development of state laws governing gun shows, including the enactment of AB 295 (Corbett, Chapter 247, Statutes of 1999). As a result of the passage of these laws, California gun shows are very thoroughly regulated and enforced. The same laws that apply to sales at a firearms dealers store also apply to sales at gun shows, including sales between private parties. "A study of gun shows conducted at the University of California, Davis found that California's gun shows are well run and lawfully conducted. The study further indicated that California's gun shows, and the state's laws governing them, are the model for other states to emulate. "SB 475 would abandon to local governments the Legislature's and the State of California's power and responsibility relative to gun shows held at the Cow Palace, Agricultural District 1-A. It would do so by allowing the County of San Mateo and the County and City of San Francisco to effectively prohibit the state from contracting for gun shows or other events at which firearms or ammunition are sold by simply not SB 475 Page 9 passing resolutions to approve it." 7)Prior Legislation : a) AB 2948 (Leno), of the 2007-08 Legislative Session, would have prohibited the sale of firearms or ammunition on state property known as the "Cow Palace." AB 2948 failed passage on the Senate Floor. b) SB 1527 (Yee), of the 2007-08 Legislative Session, would have sold the Cow Palace for fair market value to the Daly City Redevelopment Agency or to the City of Daly City. SB 1527 failed passage on the Assembly Floor. c) SB 1733 (Speier), of the 2003-04 Legislative Session, is duplicative of this bill. SB 1733 failed passage on the floor of the State Assembly d) HR 26 (Machado), of the 1999-00 Legislative Session, requested that the Governor place a moratorium on all gun shows that would take place on state-owned property until the Attorney General and local law enforcement officials are satisfied that existing federal and state laws relating to gun shows are sufficiently enforced. HR 26 was never heard by this Committee. e) AB 1107 (Ortiz), of the 1997-98 Legislative Session, would have authorized any city, county or agricultural association to prohibit gun sales at gun shows or events. AB 1107 failed in the Assembly Committee on Appropriations. REGISTERED SUPPORT / OPPOSITION : Support Bayshore Friendship Senior Citizens Club Brothers Against Guns California Chapters of the Brady Campaign to Prevent Gun Violence City and County of San Francisco City of Daly City Coalition Against Gun Violence County of San Mateo Law Center to Prevent Gun Violence SB 475 Page 10 San Francisco District Attorney's Office San Francisco Supervisor Jon Avalos San Francisco Supervisor Malia Cohen South County Citizens Against Gun Violence Visitacion Valley Asian Alliance Visitacion Valley Middle School 1 private individual Opposition 1-A District Association, Department of the Division of Food and Agriculture California Association of Federal Firearms Licensees California Police Chiefs Association California Rifle and Pistol Association California Sportsman's Lobby Crossroads of the West Gun Owners of California National Rifle Association National Shooting Sports Foundation Outdoor Sportsmen's Coalition of California Safari Club International Analysis Prepared by : Gabriel Caswell / PUB. S. / (916) 319-3744