BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1235 (de León) - Ammunition
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|Version: May 4, 2016 |Policy Vote: PUB. S. 5 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: May 16, 2016 |Consultant: Jolie Onodera |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 1235 would create a new regulatory framework for
the sale, purchase, and transfer of ammunition in California, as
specified.
Fiscal
Impact:
Project development: Major one-time costs to the Department
of Justice (DOJ) potentially in excess of $25 million (Special
Fund*/General Fund) to (1) develop the system enabling
real-time review and approval of transactions at the point of
sale/transfer, (2) develop the Ammunition Purchase Records
database enabling electronic submission of purchaser
information and law enforcement access, as specified, and (3)
create a vendor licensing application process and registry.
Staff notes a General Fund appropriation or loan would likely
be necessary to support the start-up costs of these projects,
as sufficient fees would not be collected until after the
necessary infrastructure is in place.
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Ongoing DOJ workload: Ongoing costs potentially in the
millions of dollars (Special Fund*) annually to be offset by
fees collected for vendor licenses and point of sale
transactions, to support staffing for (1) ongoing enforcement
of the ammunition vendor licensing, purchase, and sale
provisions, (2) completion of cross-checks of firearms
databases prior to ammunition purchase and transfer approvals,
(3) the collection, retention of ammunition purchase records,
licenses, maintenance, and storage.
Local law enforcement agencies : Potentially significant
non-reimbursable local costs (Local Funds) for enforcement and
incarceration resulting from the new misdemeanor offenses
created under the provisions of this bill.
State prisons : Potentially significant increase in state
costs (General Fund) to the extent the point of sale
ammunition transactions cross check against APPS prompts
additional DOJ enforcement actions. No new commitments to
state prison are estimated based on the revised definition of
ammunition." Although the bill redefines "ammunition" for the
entirety of Part 6 of the Penal Code, there is an exception to
the revised definition under existing law which provides for a
possible prison term for persons prohibited from owning a
firearm found in possession/ownership of ammunition. The
definition of "ammunition" for purposes of PC § 30305(a) is
unchanged from existing law as specified in PC § 16150(b).
Ammunition sales : Potential ongoing loss of state sales tax
revenue (General Fund) due to the enhanced regulations on
ammunition sales that may deter sales transactions from being
attempted that would be denied at the point of sale. Every
five percent decline would result in $1.8 million (General
Fund) in reduced state sales tax revenues. It is unknown at
this time to what degree the $1 per transaction fee will
impact consumer behavior relative to the $10 vendor fee
assessed to process out of state sales transactions, upon
which no sales tax would be assessed.
*Ammunition Special Account
Background: Assembly Bill 962 (de León), Chapter 628/2009, established
several requirements regarding the sale of handgun ammunition,
defined, as "ammunition principally for use in pistols,
revolvers, and other firearms capable of being concealed upon
the person, notwithstanding that the ammunition may also be used
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in some rifles." (Penal Code (PC) § 16650.)
The requirements included that handgun ammunition sellers obtain
personal identification information from buyers, retain that
information for inspection by law enforcement upon request, and
complete all transactions of handgun ammunition through
face-to-face transactions (prohibiting direct sales over the
internet). On January 31, 2011, a Superior Court in Fresno ruled
that the definition of "handgun ammunition" contained in the
statute was unconstitutionally vague, rendering invalid the
provisions applicable to "handgun ammunition". As a result of
this finding, the Court enjoined the State Attorney General from
enforcing those statutes. (Parker v. State of California, et
al., Fresno County Superior Court, Case No. 10 CECG 02116, Order
Denying Plaintiff's Motion for Summary Judgment and Granting In
Part and Denying In Part Defendant's Motion for Summary
Adjudication, , pages 4, 11-17.)
The Court stated, "Because the language of the definition of
'handgun ammunition' fundamentally requires each law enforcement
officer to make a subjective determination as to whether or not
the ammunition at issue is ammunition 'principally for use' in a
handgun and then subjectively apply their own definition to the
situation before them, the definition of "handgun ammunition"
established in section 12060(b) and 12318(b)(2) gives unlimited
discretion to each individual law enforcement officer to
determine arbitrarily if the ammunition at issue is 'handgun
ammunition' and to apply their particular classification of
'handgun ammunition' or not to the specific issue before them."
(Id at pages 14-15.)
This bill would repeal the references in statute to "handgun
ammunition" and would instead establish and apply a new
regulatory framework upon the purchase, sale, and transfer of
all forms of ammunition, thereby addressing the vagueness issue
cited by the court in Parker.
Proposed Law:
This bill would repeal and reconstruct the provisions of the
Penal Code relating to ammunition and establishes a new
regulatory framework for the sale and purchase of ammunition in
California. In summary, this bill applies its provisions to all
ammunition, and redefines ammunition, "as one or more loaded
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cartridges consisting of a primer case, propellant, and with one
or more projectiles. Ammunition does not include blanks."
Ammunition Vendor Licenses
This bill provides that commencing on January 1, 2018, only a
licensed ammunition vendor, as defined, may sell ammunition, as
specified. This bill:
Authorizes the DOJ to accept applications for ammunition
vendor licenses, commencing on July 1, 2017, and would
create an application process for ammunition vendors, as
specified.
Provides that the license is only valid for one year and
would require the ammunition vendor to conduct business at
a location specified in the license, except in the case of
gun shows or events, as specified.
Exempts numerous entities from the ammunition vendor
license requirement.
Requires licensed ammunition vendors to have ammunition
transactions approved by the DOJ prior to delivering the
ammunition to the purchaser.
Requires the DOJ to perform real-time approval by
utilizing its current databases to determine if: (1) the
purchaser has a firearm; and, (2) if the purchaser has a
firearm in the system, whether the purchaser is a
prohibited person. If the purchaser has a firearm and is
not prohibited, the transaction will be approved.
Authorizes the DOJ to charge ammunition vendor license
applicants a fee sufficient to cover the reasonable costs
of issuing a certificate of eligibility (COE), as
specified. Exempts specified entities from the fee (those
already in possession of a COE) and requires DOJ to, upon
request and in a manner prescribed, issue ammunition vendor
licenses to these entities.
Establishes the Ammunition Special Account, into which
vendor license fees would be deposited and made available,
upon appropriation by the Legislature, to the DOJ for
purposes of implementing and enforcing the bill's
provisions.
Requires the AG to keep and properly file a complete
record of ammunition vendor license information, as
specified.
Ammunition Purchase or Transfer Authorization
This bill requires the DOJ to, commencing, July 1, 2019,
electronically approve the purchase or transfer of ammunition
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through a vendor, as specified. This approval must occur at the
time of purchase or transfer, prior to the purchaser or
transferee taking possession of the ammunition.
Specifies that, to determine if the purchaser or
transferee is eligible to purchase or possess ammunition,
the DOJ is required to cross-reference the ammunition
purchaser's or transferee's personal data against
information maintained in the Automated Firearms System
(AFS). If the purchaser's or transferee's information does
not match an AFS entry, the transaction must be denied. If
the purchaser's or transferee's information matches an AFS
entry, the DOJ is required to determine if the person falls
within a class of persons prohibited from owning or
possessing ammunition by cross-referencing the Prohibited
Armed Persons file, as specified. If the purchaser or
transferee is prohibited from owning or possessing a
firearm, the transaction is denied.
Requires the DOJ to recover the reasonable cost of
regulatory and enforcement activities by charging
purchasers and transferees a per-transaction fee not to
exceed $1, that may be increased at a rate not to exceed
the CPI, and not to exceed the reasonable costs of
regulation and enforcement, to be deposited in the
Ammunition Special Account, to be available upon
appropriation of the Legislature, as specified.
Prohibits a resident of this state from bringing or
transporting into this state any ammunition from outside of
this state, unless he or she first has the ammunition
delivered to an ammunition vendor in this state.
Prohibits a vendor from providing a purchaser or
transferee ammunition without DOJ approval, as specified.
Provides that if a vendor cannot electronically verify a
person's eligibility to purchase or possess ammunition via
an internet connection, the DOJ must provide a phone line
to verify eligibility, as specified.
States that the verification provisions do not apply to
the sale, delivery, or transfer of ammunition to specified
persons, if properly identified prior to the delivery of
the ammunition by the vendor.
Requires the DOJ to develop a procedure in which a
person who is not prohibited from purchasing or possessing
ammunition may be approved for a single ammunition
transaction or purchase, and allows the DOJ to charge a
fee, as specified.
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Provides that a violation of these provisions is a
misdemeanor, as specified.
Ammunition Sales
This bill provides that the sale, delivery or transfer of
ammunition may only occur in a face-to-face transaction with the
seller, deliverer, or transferor being provided bona fide
evidence of identity from the purchaser or transferee, provided,
however, that ammunition may be purchased over the Internet or
through other means of remote ordering if an ammunition vendor
in this state initially receives the ammunition and processes
the transfer, as specified.
Provides for a list of numerous exceptions for which the
face-to-face requirement does not apply to or affect the
sale, delivery or transfer of ammunition.
Provides that, when neither party to a sale of
ammunition is a vendor, specified requirements apply.
Provides that the sale of ammunition between specified
parties (licensed hunters, immediate family members) is
authorized so long as it does not exceed fifty rounds per
month.
Prohibits, as of July 1, 2019, a resident of this state
from bringing or transporting into this state any
ammunition from outside of this state, unless he or she
first has the ammunition delivered to an ammunition vendor
in this state, as specified, with numerous exemptions from
this requirement.
Requires an ammunition vendor to, commencing on July 1,
2019, electronically submit specified purchaser information
to the department, in a manner prescribed by the
department, as specified.
In the case that a vendor cannot submit the information
electronically via an Internet connection, requires DOJ to
provide a telephone line to submit the information if the
vendor can demonstrate legitimate geographic and
telecommunications limitations to submitting the
information electronically, and the DOJ approves the
vendor's use of the telephone line.
Requires the DOJ to retain the purchaser information for
two years in a database to be known as the Ammunition
Purchase Records file and would prescribe the authority if
the DOJ and other entities to use this file, as specified,
and with numerous exemptions from this requirement.
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States that an ammunition vendor shall not knowingly
make a false entry in, or fail to make a required entry of
information, as specified.
Makes a violation of these provisions a misdemeanor, as
specified.
Makes it a misdemeanor for a person, corporation, firm,
or other business enterprise to provide, as specified,
ammunition to an individual that the person, corporation,
firm, or other business entity knows or has cause to
believe is not the actual purchaser or transferee of the
ammunition, or knows of has cause to believe that the
ammunition is to be sold or transferred to a person
prohibited from possessing or owning ammunition.
Related
Legislation: AB 156 (McCarty) is identical to this measure. AB
156 is scheduled to be heard today by this Committee.
Prior Legislation: SB 53 (de León) 2013 would have recast
existing provisions of law regarding the sale of handgun
ammunition, as defined, to apply to all ammunition, and place
additional regulations on the sale, transfer, and purchase of
ammunition, as specified. SB 53 failed passage on the Assembly
Floor.
SB 427 (de León) 2011 would have recast the definition of
"handgun ammunition" and clarified that ammunition records may
not be provided to a non-authorized person or third-party
without written consent from the purchaser. SB 427 would have
provided that ammunition vendors must provide local law
enforcement written notice of intent to conduct business, as
well as required a court issuing an injunction against gang
activity to state whether any or all of the defendants are
enjoined from possession a firearm. SB 427 was vetoed by the
Governor with the following message:
I am returning Senate Bill 427 without my signature. This
measure would amend a recently enacted law concerning the sale
and purchase of handgun ammunition. That law is currently being
litigated. Let's keep our powder dry on amendments until the
court case runs its course.
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AB 2358 (de León) 2010 would have required copies of handgun
ammunition sales records to be transmitted to the county sheriff
or chief of police if required by local law, and prohibited,
except as specified, vendors providing ammunition sales
information to any third party without the written consent of
the purchaser or transferee. AB 2358 would have provided that
handgun ammunition may be purchased over the Internet or through
other means of remote ordering if a handgun ammunition vendor,
as defined, in California initially receives the ammunition and
processes the transfer in compliance with specified
requirements. AB 2358 failed passage on the Senate Floor.
AB 962 (de León) Chapter 628/2009 imposes specified requirements
on handgun ammunition sellers, primarily that sellers collect
buyer's personal data and keep a log of such sales. Enforcement
of several sections of AB 962 are currently stayed per order of
the Fresno County Superior Court in Parker v. State of
California, No. 10 CECG 02116. That order is currently on
appeal.
Staff
Comments: The DOJ will incur major one-time and ongoing costs
to develop and implement the new regulatory framework for the
purchase and sale of ammunition as specified under the
provisions of this bill. While the total start-up costs for
development are unknown at this time, it is estimated that costs
could exceed $25 million given the complexity of the projects,
the software development, automation enhancements, and
consultant costs that may be required. Staff notes a General
Fund appropriation or loan would likely be necessary to support
the start-up costs of these projects, as sufficient fees would
not be collected until after the necessary infrastructure is in
place.
The initial costs to create the vendor licensing application
process should be incurred over six months to ensure vendor
license applications can be accepted by July 1, 2017, as
required by the bill. The initial costs to (1) develop the
system enabling real-time review and approval of transactions at
the point of sale/transfer, and (2) develop the Ammunition
Purchase Records database enabling electronic submission of
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purchaser information and law enforcement access, as specified,
are projected to be incurred through July 1, 2019.
The DOJ will also incur major ongoing operational and
administrative costs to (1) provide real-time processing of
ammunition purchase and transfer approvals through cross-checks
of the APPS and AFS systems, (2) enforcement of the ammunition
vendor licensing, purchase, and sale provisions, and (3) the
collection and retention of ammunition purchase records, vendor
licenses, maintenance, and storage. The total costs are unknown
at this time but are estimated to be in the millions of dollars
annually, to be offset in whole or in part by the fee authority
provided in this bill for vendor licenses and purchase/transfer
transactions. The extent to which fee revenues will offset
ongoing costs cannot be estimated with certainty and would be
dependent on the number of vendor licenses issued and the number
of consumer transactions, which is unknown.
Although the bill redefines "ammunition" for the entirety of
Part 6 of the Penal Code, no new commitments to state prison are
anticipated based on the revised definition alone. Existing law
provides for an exception to the revised definition for purposes
of PC § 30305(a) which provides for a possible prison term for
persons prohibited from owning a firearm found in
possession/ownership of ammunition. The definition of
"ammunition" for purposes of PC § 30305(a) is unchanged from
existing law as specified in PC § 16150(b). However, to the
extent the point of sale transactions that require a cross check
against APPS prompts additional DOJ enforcement actions,
additional state costs for violations of unlawful possession of
firearms/ammunition could result.
This bill may also result in a reduction in state sales tax
revenue from ammunition sales as a result of the additional
procedures required for consumers to purchase ammunition which
may reduce the number of attempted sales transactions due to the
new point-of-sale cross check with the armed prohibited persons
database. According to the National Shooting Sports Foundation,
1.2 billion rounds of ammunition are sold in California
annually. This includes pistol, long gun, and shot gun
ammunition. At an average price of $0.84 per round, the sales
would amount to just over $1 billion annually. Adjusting for
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sales to law enforcement, the statewide civilian ammunition
sales are estimated at approximately $924 million annually. It
is unknown at this time the degree to which ammunition sales may
decline due to out-of-state purchases and the enhanced
ammunition purchase regulations proposed in this measure, but
for every 5 percent reduction in annual ammunition sales, annual
sales tax revenue could decline by approximately $1.8 million
General Fund (based on a General Fund rate of 3.9375 percent).
To the extent the provisions of this bill serve to reduce the
incidence of firearms-related injuries and death, potential
future cost savings could be substantial. A study by the
non-profit Pacific Institute for Research and Evaluation (PIRE)
reported over 105,000 incidences of firearm injury and death in
2010 nationally, with an estimated societal cost of over $174
billion in work lost, medical care, insurance, criminal-justice
expenses and pain and suffering. At a unit level, the study
reported a governmental cost of $187,000 to $582,000 per firearm
fatality in medical and mental health care, emergency services,
and administrative and criminal justice costs. The estimated
societal cost per firearm injury or fatality, including lost
work productivity and quality of life was reported as nearly
$430,000 to $5 million, respectively.
Amendments to be taken in Committee: In addition to several
technical and non-substantive changes, the following amendments
will be taken in committee:
1. To avoid chaptering out issues, the proposed changes to
PC § 11106 in Section 1 of this bill will instead be an add
section.
2. On page 12, in line 16, subdivision (b) of PC § 30345
will be amended as follows:
(6) A person who sells no more than 50 100 rounds of ammunition
to one vendor in one month or cumulatively sells no more than
250 rounds per year to vendors in this state.
3. On page 21, between lines 6 and 7, PC § 30366 will be
amended as follows:
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(d) This section shall not apply to a person whose premises are
outside of this state when directly delivering ammunition to a
law enforcement agency within this state.
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