BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                   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.








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          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;









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             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  








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               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.










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             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  








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            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  








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            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








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          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  








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            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  








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            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  








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            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


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