BILL ANALYSIS                                                                                                                                                                                                    Ó







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2013-2014 Regular Session               B

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          SB 1354 (Knight)                                           4
          As Introduced February 21, 2014 
          Hearing date:  April 22, 2014
          Penal Code
          JRD:mc

                                    DEADLY WEAPONS:

              PERMITS AND LICENSES ISSUED BY THE DEPARTMENT OF JUSTICE  


                                       HISTORY

          Source:  California Association of Federal Firearms Licensees

          Prior Legislation: None 

          Support: California Rifle and Pistol Association

          Opposition:None known

          (Analysis reflects amendments to be taken in committee.) 

                                         KEY ISSUE
           
          SHOULD THE DEPARTMENT OF JUSTICE BE REQUIRED TO MAKE A DETERMINATION  
          ON CERTAIN FIREARMS-RELATED CERTIFICATES, LICENSES AND PERMIT  
          APPLICATIONS WITHIN 90 DAYS OF RECEIPT, AS SPECIFIED? 


                                       PURPOSE

          The purpose of this bill is to require the Department of Justice  




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          (DOJ) to: (1) make a determination on applications for a number  
          of firearms-related certificates, licenses and permits within 90  
          days of receipt, and allows DOJ to extend the determination by  
          another 90 days, as specified; (2)  provide written notice of  
          the determination, and in cases in which the application is  
          denied, the reasons for the denial; and (3) provide an applicant  
          notice that his or her application is incomplete within 30 days  
          of receipt of that application. 
           
          Current federal law  prohibits a person from engaging in the  
          business of importing, manufacturing, or dealing in firearms, or  
          importing or manufacturing ammunition, until he has filed an  
          application with and received a license to do so from the  
          Attorney General.  The application shall be in such form and  
          contain only that information necessary to determine eligibility  
          for licensing as the Attorney General shall by regulation  
          prescribe and shall include a photograph and fingerprints of the  
          applicant.  (18 U.S.C. 923.) 
           
          Current law  requires DOJ to process a variety of deadly weapon  
          related applications:

                     Permit for Manufacture, Sale or Use of Destructive  
                 Device: Every dealer, manufacturer, importer, and  
                 exporter of any destructive device,<1> or any motion  
                 picture or television studio using destructive devices in  
                 the conduct of its business, shall obtain a permit for  
                 the conduct of that business from DOJ.  (Penal Code 
                 § 18900.)

                     Permit for Possession and Transportation of Tear  
                 Gas: DOJ may issue a permit for the possession and  
               -------------------------
          <1> A "destructive device" is "any projectile containing  
          explosive or incendiary material or any other chemical  
          substance," "any bomb, grenade or explosive missile," "a weapon  
          with a caliber over 0.60,"  "any rocket," "any breakable  
          container containing flammable liquid with a flashpoint of 150  
          degrees Fahrenheit," and "any sealed container containing dry  
          ice or other chemically reactive substances assemble for the  
          purpose of causing an explosion."  (Penal Code § 16460.)



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                 transportation of tear gas or a tear gas weapon that is  
                 not intended or certified for personal self-defense  
                 purposes, upon proof that good cause exists for issuance  
                 of the permit to the application.  The permit may also  
                 allow the applicant to install, maintain, and operate a  
                 protective system involving the use of tear gas or a tear  
                 gas weapon in any place that is accurately and completely  
                 described in the permit application.  (Penal Code §  
                 23000.)

                     Certificate of Eligibility: A person may request a  
                 certificate of eligibility from DOJ.<2>  DOJ is required  
                 to examine its records and records available to the  
                 department in the National Instant Criminal Background  
                 Check System in order to determine if the applicant is  
                 prohibited by state or federal law from possessing,  
                 receiving, owning or purchasing a firearm.  The  
                 department is required to issue a certificate to an  
                 applicant if the department's records indicate that the  
                 applicant is not prohibited by state or federal law from  
                 possessing, receiving, owning or purchasing a firearm.   
                 The department is required to adopt regulations to  
                 administer these provisions.  (Penal Code § 26710.)



                     Centralized List of Licensees:  DOJ is required to  
                 keep a centralized list of all persons with a licensed as  
                 firearms dealers in California.  To be included on the  
                 list, the applicant must satisfy a variety or  
                 requirements, including having a certificate of  
                 eligibility.  (Penal Code §§ 26700 and 26715.)  

                     Centralized List of Exempted Federal Firearms  
                 Licenses: DOJ is required to keep a centralized list of  
                 persons who identify themselves as being licensed  
                 pursuant to Chapter 44 of Title 18 of the United States  
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          <2> A "certificate of eligibility" is one of the many  
          requirements to become a firearms dealer in California.  (Penal  
          Code § 26705.)



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                 Codes as a dealer, importer, or manufacturer of firearms  
                 whose licenses premises are within California and who  
                 declare to the department an exemption from the firearms  
                 dealer licensing requirements of 26500.  (Penal Code §  
                 28450.)

                     License to Manufacture Firearms: DOJ is required to  
                 accept applications for the manufacture of firearms in  
                 California.  DOJ is further required to grant a license  
                 if all requirements described in the code are met.  DOJ  
                 is required to maintain a centralized list of licensees.   
                 (Penal Code §§ 29050 and 29060.)

                     Entertainment Firearms Permits: Any person who is at  
                 least 21 years of age may apply for an entertainment  
                 firearms permit from DOJ.  An entertainment firearms  
                 permit authorizes the permitholder to possess firearms  
                 loaned to the permitholder for use solely as a prop in a  
                 motion picture, television, video, theatrical, or other  
                 entertainment production or event.  (Penal Code § 29500.)  


                     Permit for Assault Weapons and .50 BMG Rifles: Any  
                 person who wishes to acquire an assault weapon after  
                 January 1, 1900, or a .50 BMG rifle after January 1,  
                 2005, shall first obtain a permit from DOJ.  (Penal Code  
                 § 31000.)  

                      Permit for Possession, Transportation and Sale of  
                 Large-Capacity Magazines: DOJ may issue permits for the  
                 possession, transportation, or sale of large-capacity  
                 magazines.  (Penal Code § 32315.)  

                      Permit for Possession, Manufacture, and  
                 Transportation of Machine Guns: DOJ may issue permits for  
                 the possession, manufacture, and transportation or  
                 possession, manufacture or transportation of machineguns,  
                 upon a satisfactory showing that good cause exists for  
                 the issuance of the permit to the applicant.  No permit  
                 shall be issued to a person who is under 18 years of age.  




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                  (Penal Code § 32650.)  

                      License to Sell Machineguns: DOJ may grant a license  
                 to permit the sale of machineguns, if certain  
                 requirements are satisfied.  (Penal Code § 32700.)  

                      Permit for Short-Barreled Rifle or Short-Barreled  
                 Shotgun: DOJ may issue a permit for the manufacture,  
                 possession, importation, transportation, or sale of  
                 short-barreled rifles of short-barreled shotguns.  (Penal  
                 Code § 33300.)   

                      Application for Return: Any person who claims title  
                 to any firearm that is in the custody or control of a  
                 court or law enforcement agency and who wishes to have  
                 the firearm returned shall make application for a  
                 determination by DOJ as to whether the applicant is  
                 eligible to possess a firearm.  (Penal Code § 33850.)  

                      Handgun Safety Certificate Certified Instructors:  
                 DOJ sets the minimum level of skill, knowledge, and  
                 competency to be required of all handgun safety  
                 certificate instructors and certifies that instructors  
                 meet the minimum requirements.  (Penal Code § 31635.)  
           
           This bill  would require DOJ to provide an applicant notice if  
          the departments considers his or her application to be  
          incomplete, within 30 calendar days of receipt of that  
          application. 
           
          This bill  would require DOJ to make a determination on all  
          applications received by DOJ, under to Part 6 of the Penal Code,  
          within 90 calendar days of receipt of the application.  If DOJ  
          is not able to make a determination within 90 calendar days, due  
          to circumstances beyond DOJ's control, DOJ would be able to  
          extend the timeframe by an additional 90 calendar days, as  
          specified. 

           This bill  would require DOJ to provide a written determination  
          to the applicant within the aforementioned timeframes and, in  




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          cases in which DOJ denies the application, the reasons for the  
          denial.  


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION

          For the last several years, severe overcrowding in California's  
          prisons has been the focus of evolving and expensive litigation  
          relating to conditions of confinement.  On May 23, 2011, the  
          United States Supreme Court ordered California to reduce its  
          prison population to 137.5 percent of design capacity within two  
          years from the date of its ruling, subject to the right of the  
          state to seek modifications in appropriate circumstances.   

          Beginning in early 2007, Senate leadership initiated a policy to  
          hold legislative proposals which could further aggravate the  
          prison overcrowding crisis through new or expanded felony  
          prosecutions.  Under the resulting policy, known as "ROCA"  
          (which stands for "Receivership/ Overcrowding Crisis  
          Aggravation"), the Committee held measures that created a new  
          felony, expanded the scope or penalty of an existing felony, or  
          otherwise increased the application of a felony in a manner  
          which could exacerbate the prison overcrowding crisis.  Under  
          these principles, ROCA was applied as a content-neutral,  
          provisional measure necessary to ensure that the Legislature did  
          not erode progress towards reducing prison overcrowding by  
          passing legislation, which would increase the prison population.  
            

          In January of 2013, just over a year after the enactment of the  
          historic Public Safety Realignment Act of 2011, the State of  
          California filed court documents seeking to vacate or modify the  
          federal court order requiring the state to reduce its prison  
          population to 137.5 percent of design capacity.  The State  
          submitted that the, ". . .  population in the State's 33 prisons  
          has been reduced by over 24,000 inmates since October 2011 when  
          public safety realignment went into effect, by more than 36,000  
          inmates compared to the 2008 population . . . , and by nearly  
          42,000 inmates since 2006 . . . ."  Plaintiffs opposed the  
          state's motion, arguing that, "California prisons, which  




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          currently average 150% of capacity, and reach as high as 185% of  
          capacity at one prison, continue to deliver health care that is  
          constitutionally deficient."  In an order dated January 29,  
          2013, the federal court granted the state a six-month extension  
          to achieve the 137.5 % inmate population cap by December 31,  
          2013.  

          The Three-Judge Court then ordered, on April 11, 2013, the state  
          of California to "immediately take all steps necessary to comply  
          with this Court's . . . Order . . . requiring defendants to  
          reduce overall prison population to 137.5% design capacity by  
          December 31, 2013."  On September 16, 2013, the State asked the  
          Court to extend that deadline to December 31, 2016.  In  
          response, the Court extended the deadline first to January 27,  
          2014 and then February 24, 2014, and ordered the parties to  
          enter into a meet-and-confer process to "explore how defendants  
          can comply with this Court's June 20, 2013 Order, including  
          means and dates by which such compliance can be expedited or  
          accomplished and how this Court can ensure a durable solution to  
          the prison crowding problem."

          The parties were not able to reach an agreement during the  
          meet-and-confer process.  As a result, the Court ordered  
          briefing on the State's requested extension and, on February 10,  
          2014, issued an order extending the deadline to reduce the  
          in-state adult institution population to 137.5% design capacity  
          to February 28, 2016.  The order requires the state to meet the  
          following interim and final population reduction benchmarks:

                 143% of design bed capacity by June 30, 2014;
                 141.5% of design bed capacity by February 28, 2015; and
                 137.5% of design bed capacity by February 28, 2016. 

          If a benchmark is missed the Compliance Officer (a position  
          created by the February 10, 2016 order) can order the release of  
          inmates to bring the State into compliance with that benchmark.   


          In a status report to the Court dated February 18, 2014, the  
          state reported that as of February 12, 2014, California's 33  




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          prisons were at 144.3 percent capacity, with 117,686 inmates.   
          8,768 inmates were housed in out-of-state facilities.

          The ongoing prison overcrowding litigation indicates that prison  
          capacity and related issues concerning conditions of confinement  
          remain unresolved.  While real gains in reducing the prison  
          population have been made, even greater reductions may be  
          required to meet the orders of the federal court.  Therefore,  
          the Committee's consideration of ROCA bills -bills that may  
          impact the prison population - will be informed by the following  
          questions:

                 Whether a measure erodes realignment and impacts the  
               prison population;
                 Whether a measure addresses a crime which is directly  
               dangerous to the physical safety of others for which there  
               is no other reasonably appropriate sanction; 
                 Whether a bill corrects a constitutional infirmity or  
               legislative drafting error; 
                 Whether a measure proposes penalties which are  
               proportionate, and cannot be achieved through any other  
               reasonably appropriate remedy; and,
                 Whether a bill addresses a major area of public safety  
               or criminal activity for which there is no other  
               reasonable, appropriate remedy.


                                      COMMENTS

          1.  Need for This Bill  

          The author states: 

               This bill addresses the long Department of Justice  
               processing times and delays, which sometimes exceed a  
               year, related to specific business permits and  
               licenses regarding firearms.







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               In order for a California resident to open a business  
               with the intent to sell firearms, they must first  
               receive a Federal Firearms License from the Bureau of  
               Alcohol, Tobacco, Firearms and Explosives (ATF).  The  
               ATF typically denies or approves a Federal Firearms  
               License (FFL) within 90-days of a completed  
               application.  The latest time it takes for the ATF, a  
               national agency, to process a federal firearms license  
               is 60 days.




               Once the dealership and its owners have been vetted by  
               the ATF and obtained the requisite Federal Firearms  
               License, they must then be processed through a similar  
               state approval process to be placed on centralized  
               lists (dealers and manufacturers) from the California  
               Department of Justice.  A prerequisite to being placed  
               on the one of the centralized lists is the acquisition  
               of a Certificate of Eligibility.  Previously, there  
               were regulations mandating that the processing time  
               shall not exceed 120 days, but those regulations were  
               repealed by the DOJ in 2006.  There are currently no  
               processing time restrictions for the Certificates of  
               Eligibility.




               Only after obtaining a Certificate of Eligibility,  
               among other things, may the dealership apply to be on  
               the centralized list and wait once more for California  
               Department of Justice approval.  The California  
               Department of Justice often takes longer than the ATF  
               to compete the processing of its initial firearm  
               licensee requirements.






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               Once deemed a California licensed dealer, some of  
               these dealerships require additional licensing and  
               permits to sell certain types of firearms in common  
               use to law enforcement agencies and personnel.  These  
               cannot be obtained until after the dealership is  
               established, meaning that the dealerships have already  
               been vetted once by the Federal Government and the DOJ  
               to establish that the individuals in charge of the  
               dealerships are not prohibited from possessing or  
               selling firearms. Though there were previous  
               regulations limiting the time it takes to process such  
               licenses and permits to 120 days, these were repealed  
               by the Department of Justice in 2005. 

               Since then, the processing period for these permits  
               and licenses has increased, sometimes taking over a  
               year to complete - leaving law enforcement agencies  
               and legitimate licensed dealerships to wait in limbo  
               while licenses and permits are pending, despite the  
               fact that these initial applications are often  
               accompanied by letters from law enforcement agencies  
               stating a necessity for the permits and/or licenses.


               Other California firearms-related laws have express  
               processing periods.  In Penal Code section 28220, the  
               DOJ has been given a maximum of 30 days to make a  
               determination as to whether a person is prohibited  
               from possessing firearms, but only when decision  
               cannot be made within the standard 10 day waiting  
               period. The Department of Justice has recently  
               testified that a person purchasing a firearm can be  
               determined to be eligible to lawfully possess firearms  
               automatically within minutes in 20 percent of the  
               cases.








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               Penal Code Section 26205 currently mandates that  
               licenses to carry firearms concealed in public areas  
               shall be given written notice of approval or denial  
               within 90 days of application.  This bill sets the  
               same, higher 90-day standard, applied to licenses to  
               carry firearms in public, upon all firearm-related  
               applications except where otherwise stated.




               This bill reflects the same intent to address delayed  
               processing of licenses and permits of the Permit  
               Streamlining Act of 1977 and requires that the  
               Department of Justice, upon receiving a completed  
               application, must deny or approve said application  
               within 90 days of the application being deemed  
               complete.

          2. Effect of This Legislation 

           There are currently no statutory limits on how long DOJ can take  
          to process a variety of firearms related applications, including  
          those described above.  This legislation would require DOJ to  
          complete all applications received pursuant to part six of the  
          Penal Code, except those applications that have existing  
          deadlines,<3> within 90 calendar days of receipt.  If DOJ is not  
          able to complete an application within 90 calendar days, due to  
          circumstances beyond DOJ's control, that application deadline  
          could be extended another 90 calendar days.  The legislation  
          also requires DOJ to inform an applicant that his or her  
          application is incomplete, within 30 calendar days of receipt of  
          ---------------------------
          <3> Under existing law, DOJ is required to complete a firearms  
          background check within 10 days, unless final disposition  
          information is not ascertainable, in which case DOJ has up to 30  
          days to complete the background.  (Penal Code § 28220.)  Also  
          under existing law, local law enforcement has 90 days, or 30  
          days after receipt of the applicant's criminal background check  
          from DOJ, whichever is later, to approve or deny an application  
          for a concealed carry permit.  (Penal Code § 26205.)
                                                 










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          that application.  

          3.    Proposed Amendments 
           
          The bill will be amended by the author to:  (1) require DOJ to  
          notify an applicant within 30 calendar days of receipt of the  
          application, if it deems that application to be incomplete; (2)  
          allow DOJ to extend the 90 day deadline, by an additional 90  
          calendar days, if DOJ is not able to make a determination within  
          the initial 90 days because of circumstances beyond the  
          department's control; (3) require DOJ to provide written notice  
          of the reasons it is extending the initial 90 day period and a  
          date upon which a determination will likely be made; (4) require  
          that each applicant be provided written notice of the  
          determination, within the 90 to 180 day time frame; (5) redefine  
          "application" to mean all applications received by the  
          Department under Part 6 of the Penal Code; and (6) clearly state  
          that nothing in the section shall be construed to require DOJ to  
          grant an application if it is not able to make a determination  
          within the prescribed timeframes.  


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