BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1674 (Santiago) - Firearms: purchases ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 31, 2016 |Policy Vote: PUB. S. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 20, 2016 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- 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 AB 1674 (Santiago) Page 1 of ? 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 AB 1674 (Santiago) Page 2 of ? 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: AB 1674 (Santiago) Page 3 of ? 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 AB 1674 (Santiago) Page 4 of ? decisions of consumers and the potential marketing response by retailers. -- END --