BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1695

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          (Without Reference to File)


          1695 (Bonta)

          As Amended  June 22, 2016

          Majority vote

          |ASSEMBLY:  |      | (June 1,      |SENATE: |      | (June 30, 2016) |
          |           |51-28 |2016)          |        |23-14 |                 |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |

          Original Committee Reference:  PUB. S.

          SUMMARY:  Expands the existing misdemeanor of making a false  
          report to law enforcement to include that a firearm has been  
          lost or stolen, and institutes a 10-year ban on owning a firearm  
          for those convicted of making a false report.  

          The Senate amendments modify the bill from creating a new  
          misdemeanor for falsely reporting that a firearm that has been  
          lost or stolen, and instead expands an existing misdemeanor for  
          making false reports to law enforcement.   


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          EXISTING LAW:  

          1)Requires that handgun purchasers must take an exam on handgun  
            safety from an instructor and obtain a minimum 75% passing  
            score to receive a certificate. 
          2)Provides that the sale, loan or transfer of firearms in almost  
            all cases must be processed by, or through, a state-licensed  
            dealer or a local law enforcement agency with appropriate  
            transfer forms being used, as specified.  In those cases where  
            dealer or law enforcement processing is not required, as of  
            today a handgun change of title report must still be sent to  
            the Department of Justice (DOJ) and will require that as to  
            all firearms as of January 1, 2014.  

          3)Requires photo identification for the purchase of a firearm.   
            Additionally requires that persons purchasing a handgun be 21  
            years of age and those purchasing a long gun be 18 years of  

          4)Requires the completion of the Alcohol Tobacco and Firearms  
            (ATF) Form 4473 and California Dealer's Record of Sale (DROS)  
            form and pass a background check.  

          5)Provides on or after January 1, 1998, that persons  
            establishing residency within California who bring with them  
            and store firearms within California after that date to report  
            the same to DOJ.  This reporting requirement will apply to all  
            firearms as of January 1, 2014.  

          FISCAL EFFECT:  According to the Senate Appropriations  

          1)New misdemeanor:  Potential non-reimbursable local costs for  
            enforcement and incarceration offset to a degree by fine  
            revenue for convictions for falsely reporting to a local law  
            enforcement agency that a firearm has been lost or stolen.


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          2)Armed Prohibited Persons System (APPS) enforcement  
            administration:  Potential increase in DOJ administration and  
            enforcement costs (Special Fund*) for increases to the APPS  
            list resulting from the expanded application of the 10-year  
            firearms prohibition.  The workload impact would be dependent  
            on the number of persons convicted of the new misdemeanor  
            established by this measure.

          3)Violations of the 10-year firearms ban:  Potential increase in  
            state (General Fund) and local (Local Funds) incarceration  
            costs for violations of the 10-year firearms ban, which is an  
            alternate felony-misdemeanor punishable by imprisonment in  
            state prison for 16 months, two years, or three years, or in  
            county jail for up to one year.  California Department of  
            Corrections and Rehabilitation (CDCR) data indicates only 20  
            commitments per year for violations of the 10-year firearms  
            prohibition.  While the impact of this measure on the state  
            prison population is likely minor, even two commitments to  
            state prison in any one year would cost $58,000 based on the  
            estimated contract bed cost of $29,000 per inmate.

          *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 Fiscal Year (FY)  
          2016-17.  Current revenues to the DROS Account may be  
          insufficient to cover the additional costs resulting from this  
          bill in conjunction with the numerous other legislative measures  
          requiring funding from the DROS Account, should they be enacted.  

          AS PASSED BY THE ASSEMBLY, this bill: 

          1)Created a misdemeanor to make a false report to law  
            enforcement that a firearm has been lost or stolen, knowing  
            that report to be false. 
             a)   Created a 10-year ban on owning a firearm following a  


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               conviction of this provision; and  
             b)   Possession of a firearm in violation of the 10-year ban  
               is punishable as a misdemeanor.

          2)Defined "firearm" for these purposes of a lost or stolen  
            firearm to include the frame or receiver of the weapon, and to  
            include a rocket, rocket propelled projectile launcher, or  
            similar device containing an explosive or incendiary material.
          COMMENTS:  According to the author, "AB 1695, the Stop Illegal  
          Gun Sales Act (the Act), seeks to reduce the flow of firearms  
          onto the black market.  The Act targets straw purchases,  
          instances in which a person who can pass a background check  
          legally buys a gun and then resells it to someone who was  
          prohibited from purchasing a firearm.  Additionally, the Act  
          would make knowingly falsely reporting a gun as lost or stolen a  
          misdemeanor, a tactic of straw purchasers seeking to distance  
          themselves from the gun.

          "In 2007, the Los Angeles City Attorney's office notified  
          firearm purchasers of their rights and responsibilities during  
          California's mandatory waiting period.  This notification was  
          attempted to deter straw purchasers from illegally transferring  
          firearms, either through failing to complete the transaction or  
          declining to resell the firearm.

          "According to a 2010 RAND [Corporation] study, the notification  
          significantly increased the number of firearms reported lost and  
          stolen-more than doubling the reporting.  However, it is not  
          clear whether the increased reporting was from increased  
          compliance with the law or straw purchasers covering their  
          tracks.  This is remedied by the second provision of the Act,  
          making the knowingly false reporting of a firearm as lost or  
          stolen a misdemeanor, to ensure only true reports are made.   
          Additionally, the RAND study found there was an increase in  
          approved firearms transactions not being completed, suggesting a  
          deterrent effect, though those results require further  


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          Analysis Prepared by:                                             
                          Gabriel Caswell / PUB. S. / (916) 319-3744  FN: