BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1674 (Santiago) - Firearms:  purchases 
          
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          |Version: May 31, 2016           |Policy Vote:  PUB. S. 5 - 2     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date:  June 20, 2016    |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 1674 would extend the existing prohibition on the  
          application to purchase more than one handgun within any 30-day  
          period to the purchase of any firearm (handgun or long gun).  
          This bill would delete the existing exemption for private party  
          transactions through a licensed firearms dealer and instead  
          exempt from that prohibition the transfer of a firearm conducted  
          through a licensed firearms dealer if the firearm is being  
          transferred by bequest or intestate succession.


          Fiscal  
          Impact:  
            Department of Justice (DOJ)  : One-time costs of about $350,000  
            (Special Fund*) to modify the various firearm databases  
            impacted by this measure. Ongoing costs are estimated to be  
            less than $10,000 (Special Fund*) annually.
            Firearm purchase violations  :  Potential non-reimbursable local  
            costs (Local Funds) for enforcement and incarceration offset  
            to a degree by fine revenue for infraction and misdemeanor  







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            violations of the prohibition on purchasing more than one  
            firearm within any 30-day period.
            Sales tax revenue  :  Unknown, potentially significant loss of  
            sales tax revenue (General Fund) due to the expansion of the  
            30-day single purchase restriction to include all firearms,  
            including long guns. 

          *Dealers' Record of Sale (DROS) Account - Staff notes the DROS  
          Account is structurally imbalanced, with an estimated reserve  
          balance of less than $1 million by year-end FY 2016-17. Current  
          revenues to the DROS Account are potentially insufficient to  
          cover the costs of this bill in conjunction with the numerous  
          other legislative measures requiring funding from the DROS  
          Account, should they be enacted. As a result, an appropriation  
          from an alternate fund source, potentially the General Fund, may  
          be required to support the costs of this measure.

          Background:  Existing law prohibits any person from making an application  
          to purchase more than one handgun within any 30-day period.  
          (Penal Code (PC) § 27535 (a).) However, existing law provides  
          for numerous exemptions from the 30-day purchase prohibition, as  
          follows:
                 Any law enforcement agency.
                 Any agency duly authorized to perform law enforcement  
               duties.
                 Any state or local correctional facility.
                 Any private security company licensed to do business in  
               California.
                 Any person who is properly identified as a full-time  
               paid peace officer, as defined, and who is authorized to,  
               and does, carry a firearm during the course and scope of  
               employment as a peace officer.
                 Any motion picture, television, or video production  
               company or entertainment or theatrical company whose  
               production by its nature involves the use of a firearm.
                 Any person who may claim an exemption from the waiting  
               period set forth in PC § 27540.
                 Any transaction conducted through a licensed firearms  
               dealer.
                 Any person who is licensed as a collector and the  
               regulations issued pursuant thereto, and has a current  
               certificate of eligibility issued by the DOJ.
                 The exchange of a handgun where the dealer purchased  
               that firearm from the person seeking the exchange within  








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               the 30-day period immediately preceding the date of  
               exchange or replacement.
                 The replacement of a handgun when the person's handgun  
               was lost or stolen, and the person reported that firearm  
               lost or stolen prior to the completion of the application  
               to purchase to any local law enforcement agency of the  
               city, county, or city and county in which the person  
               resides.
                 The return of any handgun to its owner.
                 A community college that is certified by the Commission  
               on Peace Officer Standards and Training to present the law  
               enforcement academy basic course or other  
               commission-certified law enforcement training. (PC § 27535  
               (b).)

          Existing law provides for the following penalties for making  
          more than one application to purchase a handgun within any  
          30-day period:
                 A first violation is an infraction punishable by a fine  
               of $50.
                 A second violation is an infraction punishable by a fine  
               of $100.
                 A third or subsequent violation is a misdemeanor. 

          Under existing law, each application to purchase a handgun in  
          violation of the 30-day purchase prohibition is deemed a  
          separate offense. (PC § 27590(e)(1)-(4).)


          Proposed Law:  
           This bill would extend the existing prohibition on the  
          application to purchase more than one handgun within any 30-day  
          period to the purchase of any firearm (handgun or long gun)  
          within any 30-day period. Additionally, this bill:
                 Deletes the existing exemption from the 30-day purchase  
               prohibition for any transaction conducted through a  
               licensed firearms dealer.


                 Adds an exemption from the 30-day purchase prohibition  
               for the transfer of a firearm conducted through a licensed  
               firearms dealer if both of the following conditions apply:










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                  o         The transferor is an executor or administrator  
                    of an estate.
                  o         The transferee is a person acquiring ownership  
                    of the firearm by bequest or intestate succession from  
                    the estate.

                 Makes additional conforming changes and technical,  
               non-substantive changes. 


          Prior Legislation:  AB 202 (Knox), Chapter 128/1999 prohibited  
          any person from applying for more than one concealable firearm  
          within a 30-day period, and prohibited the delivery to any  
          person who has made an application to purchase more than one  
          concealable firearm within 30 days.

          AB 532 (Knox) 1997 would have made it a misdemeanor to take  
          title to more than one concealable firearm in a 30-day period.  
          AB 532 would have made it an alternate felony/misdemeanor for a  
          dealer to deliver a handgun after being notified that a person  
          was attempting to take title to more than one handgun in a  
          30-day period. AB 532 failed passage on the Assembly Floor.

          Staff Comments:  The DOJ has indicated one-time costs of about  
          $350,000 to modify the various firearm databases impacted by  
          this measure. Ongoing costs are estimated to be less than  
          $10,000 annually. All costs would be funded through the DROS  
          Account, however, staff notes the DROS Account is structurally  
          imbalanced with an estimated reserve balance of less than $1  
          million by year-end FY 2016-17. Current revenues to the DROS  
          Account are potentially insufficient to cover the costs of this  
          bill in conjunction with the numerous other legislative measures  
          requiring funding from the DROS Account, should they be enacted.  
          As a result, an appropriation from an alternate fund source,  
          potentially the General Fund, may be required to support the  
          costs of this measure.

          To the extent the provisions of this bill have the effect of  
          reducing the number of firearms sold due to the purchase  
          restriction of no more than one firearm (handgun or long gun)  
          within any 30-day period, there would be an impact to both local  
          and state sales tax revenues. The impact to sales tax revenue  
          cannot be estimated with certainty and would be dependent on  
          numerous factors including but not limited to the purchasing  








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          decisions of consumers and the potential marketing response by  
          retailers. 


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