BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 1354 (Knight) - Deadly weapons: applications to the  
          Department of Justice.
          
          Amended: May 6, 2014            Policy Vote: Public Safety 7-0
          Urgency: No                     Mandate: No
          Hearing Date: May 19, 2014      Consultant: Jolie Onodera
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: SB 1354 would require the Department of Justice  
          (DOJ) to make a determination on applications related to deadly  
          weapons, and notify the applicant in writing of that  
          determination, within 90 days of receipt, as specified.

          Fiscal Impact: Significant new resource costs potentially in  
          excess of $500,000 (Special Fund*) annually for additional staff  
          to process the applications within the timeframes specified in  
          this measure.

          *Dealers' Record of Sale (DROS)

          Background: Existing federal law prohibits a person from  
          engaging in the business of importing, manufacturing, or dealing  
          in firearms, or importing or manufacturing ammunition, until he  
          or she has filed an application with and received a license to  
          do so from the Attorney General (18 U.S.C. 923). Under existing  
          state law, the DOJ is required to accept and process a variety  
          of deadly weapon-related applications, as follows:
                     Permit for manufacture, sale, or use of a  
                 destructive device (PC § 18900)
                     Permit for possession and transportation of tear gas  
                 (PC § 23000)
                     Certificate of eligibility for firearms (PC § 26710)
                     Centralized list of licensed firearms dealers (PC §§  
                 26700 and 26715)
                     Centralized list of exempted federal firearms  
                 licenses (PC §28450)
                     License to manufacture firearms (PC §§ 29050 and  
                 29060)
                     Entertainment firearms permits (PC § 29500)
                     Permit for assault weapons and .50 BMG rifles (PC §  








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                 31000)
                     Permit for possession, transportation, sale of  
                 large-capacity magazines (PC § 32315)
                     Permit for possession, manufacture, and  
                 transportation of machineguns (PC § 32650) 
                     License to sell machineguns (PC § 32700)
                     Permit for short-barreled rifle or short-barreled  
                 shotgun (PC § 33300)
                     Application for return (PC § 33850)
                     Handgun safety certificate certified instructors (PC  
                 § 31635)

          There are currently no statutory limits on the time period  
          within which the DOJ must process the firearms-related  
          applications noted above. This bill seeks to set parameters  
          within which DOJ must process these applications to mitigate  
          unreasonable delays.

          Proposed Law: This bill would require the DOJ to adhere to the  
          following provisions in reviewing and approving an application,  
          as specified: 
                 Requires DOJ to notify each applicant in writing within  
               30 calendar days from the date the application is received  
               if the application is incomplete.
                 Requires DOJ to make a determination on each  
               application, and provide written notice to the applicant,  
               within 90 calendar days from receipt of application.
                 If DOJ is unable to make a determination within 90 days  
               due to circumstances beyond its control, the 90-day limit  
               may be extended by written notice to the applicant setting  
               forth the reasons for the extension and an expected  
               determination date, not more than 90 days beyond the  
               original due date.
                 Denied applications must set forth the reasons for the  
               denial and provide the applicant with a form for appealing  
               the decision.
                 Provides that the DOJ is not required to approve an  
               application if the DOJ is not able to make a determination  
               within the time limits prescribed.

          Staff Comments: The DOJ has indicated that approximately 325  
          applications are received annually, approximately 10 percent (32  
          applications) of which are initial applications. Processing  
          times for initial applications are generally between three to  








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          nine months, while renewal applications are processed much more  
          quickly, usually within 30 days. The initial applications for  
          deadly weapons are more time intensive due to the inclusion of  
          background investigations and on-site inspections prior to  
          application approval.

          In order to meet the timeframes specified in this measure, the  
          DOJ has indicated significant additional resources in excess of  
          $1 million would be needed on an ongoing basis. Given that about  
          10 percent of total applications consist of the initial  
          applications that require the more intensive workload to  
          investigate, it's unclear at this time if this level of  
          additional staffing is required.

          Recommended Amendments: To clarify that the 90 calendar days  
          within which the DOJ has to make a determination on an  
          application commences upon the receipt of a complete  
          application, staff recommends the following amendment:
          
          Section 16030, as added to the Penal Code:
          (a)(2)(A) The department shall make a determination on each  
          application, and provide written notice of that determination to  
          the applicant, before the expiration of 90 calendar days from  
          the date the department receives the  complete  application.

          In the absence of this clarification, it could be interpreted  
          that the DOJ is required to process subsequently resubmitted and  
          complete applications within 90 days of the initially submitted,  
          incomplete applications.
            
          To further reduce costs, the author may wish to consider an  
          amendment to extend the time period within which the DOJ must  
          make determinations on applications to within 120 days of  
          receipt of a complete application.