BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1674| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1674 Author: Santiago (D), et al. Amended: 6/22/16 in Senate Vote: 21 SENATE PUBLIC SAFETY COMMITTEE: 5-2, 6/14/16 AYES: Hancock, Glazer, Leno, Liu, Monning NOES: Anderson, Stone SENATE APPROPRIATIONS COMMITTEE: 5-2, 6/20/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 44-33, 6/1/16 - See last page for vote SUBJECT: Firearms: transfers SOURCE: Author DIGEST: This bill prohibits any person from making an application to purchase more than one firearm within any 30-day period, as specified; and deletes from the existing prohibition related to the purchase of more than one handgun in any 30-day period an exemption for a private party transfer through a licensed firearms dealer, as specified. Senate Floor Amendments of 6/22/16 exempt additional parties from the prohibition on making an application to purchase more than one firearm within any 30-day period, as specified; and also include chaptering amendments. AB 1674 Page 2 ANALYSIS: Existing law: 1)Prohibits any person from making an application to purchase more than one handgun within any 30-day period. (Penal Code § 27535(a).) 2)Exempts, in Penal Code Section 27535(b), from the above 30-day prohibition any of the following: a) Any law enforcement agency; b) Any agency duly authorized to perform law enforcement duties; c) Any state or local correctional facility; d) Any private security company licensed to do business in California; e) Any person who is a peace officer, as specified, and is authorized to carry a firearm in the course and scope of employment; f) Any motion picture, television, video production company or entertainment or theatrical company whose production by its nature involves a firearm; AB 1674 Page 3 g) Any authorized representative of a law enforcement agency, or a federally licensed firearms importer or manufacturer; h) Any private party transaction conducted through a licensed firearms dealer; i) Any person who is a licensed collector and has a current certificate of eligibility issued by the Department of Justice (DOJ); j) The exchange, replacement, or return of a handgun to a licensed dealer within the 30-day period; and, aa) A community college that is certified by the Commission on Peace Officer Standards and Training to present law enforcement academy basic course or other commission-certified training. 3)Prohibits a handgun from being delivered when a licensed firearms dealer is notified by the DOJ that within the preceding 30-day period the purchaser has made another application to purchase a handgun and the purchase was not exempted, as specified. (Penal Code § 27540(f).) 4)Provides, in Penal Code Sections 27590(e)(1)-(3), that the penalties for making more than one application to purchase a handgun within any 30-day period is as follows: a) A first violation is an infraction punishable by a fine of $50; b) A second violation is an infraction punishable by a fine AB 1674 Page 4 of $100; and, c) A third violation is a misdemeanor. This bill: 1)Prohibits any person from making an application to purchase more than one firearm within any 30-day period. 2)Deletes from the existing prohibition related to the purchase of more than one handgun in any 30-day period an exemption for a private party transfer through a licensed firearms dealer, as specified. 3)Adds the following exemptions to the one firearm a month prohibition: a) A transaction completed through a licensed firearms dealer pursuant to Chapter 5 (commencing with Section 28050) if both of the following conditions apply: i) The transferor is an executor or administrator of an estate. ii) The transferee is a person acquiring ownership of the firearm by bequest or intestate succession from the estate. b) The purchase of a firearm that is not a handgun or a finished frame or receiver by a person who has been issued a valid hunting license by the state. AB 1674 Page 5 c) The purchase of a firearm that is not a handgun acquired at an auction or similar event conducted by a nonprofit public benefit or mutual benefit corporation to fund the activities of that corporation or local chapters of that corporation. Background According to the Senate Public Safety Committee analysis of AB 202 (Knox, Chapter 128, Statutes of 1999), which created the one-handgun-a-month law in California: The State of Virginia enacted a "one-handgun-a-month" law in 1993 (before the Federal Brady Bill, which required at least a five day waiting period plus a background check for states without such requirements). That state had weak restrictions on handgun sales and it has been stated that gun traffickers from New York City routinely traveled to Virginia to purchase quantities of weapons to take back for illegal sale in other states. Purchases of more than one handgun per 30-day period in Virginia is allowed upon completion of an "enhanced" background check when the purchase is for lawful business or personal use, for purposes of collectors, bulk sales and purchases from estates, to replace a lost or stolen weapon, and similar situations. Virginia repealed this law in 2012. But, according to the Law Center to Prevent Gun Violence: Virginia's one-gun-a-month law - which was in effect from 1993 to 2012 and prohibited the purchase of more than one handgun per person in any 30-day period - significantly reduced the number of crime guns traced to Virginia dealers. Virginia initially adopted its law after the state became recognized as a primary source of crime guns recovered in states in the northeastern U.S. After the law's adoption, the odds of AB 1674 Page 6 tracing a gun originally acquired in the Southeast to a Virginia gun dealer (as opposed to a dealer in a different southeastern state) dropped by: 71% for guns recovered in New York; 72% for guns recovered in Massachusetts; and 66% for guns recovered in New Jersey, New York, Connecticut, Rhode Island and Massachusetts combined. (http://smartgunlaws.org/multiple-purchases-sales-of-firearms-p olicy-summary/ [footnotes omitted].) NOTE: See Senate Public Safety Committee analysis for additional background. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee: DOJ: One-time costs of about $350,000 (Special Fund*) to modify the various firearm databases impacted by this bill. 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 violations of the prohibition on purchasing more than one AB 1674 Page 7 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 bill. SUPPORT: (Verified6/23/16) California Academy of Family Physicians California Chapters of the Brady Campaign to Prevent Gun Violence City of Long Beach Coalition Against Gun Violence, A Santa Barbara County Coalition Courage Campaign Friends Committee on Legislation of California Law Center to Prevent Gun Violence Rabbis Against Gun Violence San Francisco Bay Area Physicians for Social Responsibility Violence Prevention Coalition of Greater Los Angeles Women Against Gun Violence One individual OPPOSITION: (Verified6/23/16) California Rifle and Pistol Association AB 1674 Page 8 California Waterfowl Association Deputies of the Mono County Deputy Sheriff's Association Firearms Policy Coalition Glenn County Rangeland Association Gun Owners of California National Rifle Association of America National Shooting Sports Foundation Peace Officers Research Association of California Several individuals ARGUMENTS IN SUPPORT: The California Chapters of the Brady Campaign to Prevent Gun Violence state: In 1999, legislation (AB 202) was enacted that limits purchases of handguns from licensed firearms dealers in California to no more than one per person per month. AB 202 provided a number of exemptions, including private party transactions. The purpose of the bill was to curb the illegal flow of handguns by taking the profit out of selling guns from bulk purchases on the black market. AB 1674 applies existing law under AB 202 to all firearms, including long guns (rifles, shotguns, and lower receivers), and removes the exemption for private party transfers. Under AB 1674, firearms will not be delivered whenever the dealer is notified by the Department of Justice that within the preceding 30-day period the purchaser had made another application to purchase a firearm. It stands to reason that a person buying large quantities of guns at one time may be acting as a straw purchaser or gun trafficker. Moreover, firearms acquired this way are frequently used in crime. In fact, an ATF study of tracing data demonstrated that 22% of all handguns recovered in crime in 1999 were originally purchased as part of a multiple sale. A similar study found that 20% of all handguns recovered in crime in 2000 were originally purchased as part of a multiple sale. Additionally, a University of Pennsylvania report found that a quarter of all guns used in crime were purchased as part of a multiple-gun sale and that guns purchased in bulk were up to 64% more likely to be used for illegal AB 1674 Page 9 purposes than guns purchased individually. The California Brady Campaign believes that handguns and long guns should be subject to the same laws. Sixteen years ago, it was thought that handguns made up an overwhelming share of crime guns, but the data shows that is no longer the case. Of the 26,682 crime guns entered into the Department of Justice's Automated Firearms Systems database in 2009, 11,500 were long guns. Additionally, DOJ has found that over the last three fiscal years, nearly half the illegal firearms recovered from prohibited persons through the Armed Prohibited Persons System are long guns. Over the past ten years, Californians have annually purchased more long guns than handguns, including 534,469 long guns in 2013. These long guns include legal weapons that have military-style features and a mechanism, such as a bullet button, to allow for the rapid exchange of magazines and lower receivers, which can be assembled into military-style weapons. Limiting multiple-gun sales within a short period of time for such weapons, which are more lethal than handguns, is clearly in the interest of public safety. The Department of Justice began to retain records of long gun purchases on January 1, 2014. An analysis of the transaction data from the period January 2014 through June 2015 shows that 81.9% of long guns were sold as a single long gun purchase within a 30-day period. Clearly, the vast majority of long gun purchasers will not be impacted by AB 1674. However at the opposite end of the spectrum, an individual purchased 177 long guns in two transactions within a one month period (April 2014). Furthermore, sales to single individuals ranging from 5 to 54 long guns per month occurred on 1,787 occasions, totaling 12,090 guns. Department data also shows that when multiple long guns are transferred in a sale, it is more than twice as likely that lower receivers are included. The largest bulk sale of long guns in one month to an individual (177 long guns) was composed entirely of lower receivers, which can be built into AB 1674 Page 10 illegal assault weapons and sold on the black market. Preventing the flow of illegal guns is important to public safety regardless of whether the firearm is a handgun or long gun, or purchased new from a dealer or through a private party transaction. Limiting firearms sales to one gun per month is a recognized strategy to reduce gun trafficking and keep firearms out of dangerous hands. ARGUMENTS IN OPPOSITION: According to the Firearms Policy Coalition: AB 1674 would additionally ban the timely, lawful transfer of private property between individuals (through licensed firearm dealers, no less) by eliminating the ability for a law-abiding California gun owner to sell, trade, or loan their firearms if the intended buyer or transferee has already initiated any kind of acquisition within the past 30 days. Despite recent amendments of June 22, AB 1674 makes it virtually impossible for a widow(er) to dispose of a collection at fair-market value as it could take years to line up the hundreds of individual buyers-each one requiring a face-to-face interaction. Bizarrely, the recent amendments also exempt those with a hunting license, however if one were to exercise the exemption it would limit the purchaser to only buying non-handguns and those firearms that aren't "finished frames or receivers"-or said another way the only legal definition of firearm is the only thing you can't buy. This type of legislation will only fuel the underground economy as people seek to dispose of a collection-or build one, no longer feeling bound by illegible, frenetic and overreaching laws. The Second Amendment is not a second-class right and California's law-abiding residents are not second-class people. AB 1674 must be rejected for its moral and policy AB 1674 Page 11 flaws if not for its blatant constitutional infirmities. ASSEMBLY FLOOR: 44-33, 6/1/16 AYES: Alejo, Atkins, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooper, Dababneh, Daly, Eggman, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Roger Hernández, Holden, Jones-Sawyer, Levine, Lopez, Low, McCarty, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon NOES: Achadjian, Travis Allen, Arambula, Bigelow, Brough, Chang, Chávez, Cooley, Dahle, Frazier, Beth Gaines, Gallagher, Gray, Grove, Harper, Irwin, Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes, Medina, Melendez, Obernolte, Olsen, Patterson, Salas, Steinorth, Wagner, Waldron, Wilk NO VOTE RECORDED: Dodd, Hadley, Rodriguez Prepared by:Jessica Devencenzi / PUB. S. / 6/24/16 14:33:51 **** END ****