BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1235| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 1235 Author: De León (D), et al. Amended: 6/22/16 Vote: 22 SENATE PUBLIC SAFETY COMMITTEE: 5-2, 4/19/16 AYES: Hancock, Glazer, Leno, Liu, Monning NOES: Anderson, Stone SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/16/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen SENATE FLOOR: 24-15, 5/19/16 AYES: Allen, Beall, Block, De León, Glazer, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Wieckowski, Wolk NOES: Anderson, Bates, Berryhill, Cannella, Fuller, Gaines, Galgiani, Huff, Moorlach, Morrell, Nguyen, Nielsen, Roth, Stone, Vidak NO VOTE RECORDED: Runner ASSEMBLY FLOOR: Not available SUBJECT: Ammunition SOURCE: Author DIGEST: This bill creates a new regulatory framework for the purchase and sale of ammunition in California. Assembly Amendments add provisions that would amend and repeal SB 1235 Page 2 the ammunition purchase and sale requirements proposed to be added by the Safety for All Act of 2016 at the November 8, 2016, statewide general election. The amendments, additionally, state that a person who has a certificate of eligibility is not subject to the ammunition purchase requirements, as specified. ANALYSIS: Existing law: 1) Prohibits possession of ammunition by a person under 18 years of age, except as specified. A violation is generally punishable as a misdemeanor, but, if the minor has been found guilty of violating certain enumerated offenses previously, a violation may be punished as either a felony by 16 months, two or three years in county jail, or as a misdemeanor by up to one year in the county jail. (Penal Code §§ 29650 and 29700.) 2) Provides that selling any ammunition to a person under the age of 18, or selling ammunition designed and intended for a handgun to a person under the age of 21 is a misdemeanor. (Penal Code § 30300.) 3) Provides that, except as specified, any person who is prohibited from owning or possessing a firearm is also prohibited from owning, or possessing ammunition. A violation may be punished as either a felony by 16 months, two or three years in state prison or as a misdemeanor by up to one year in the county jail. (Penal Code § 30305(a).) 4) Provides that, except as specified, a person enjoined from engaging in activity pursuant to an injunction against that person as a member of a criminal street gang is prohibited from owning or possessing ammunition. Violation of this section is punishable as a misdemeanor. (Penal Code § SB 1235 Page 3 30305(b).) 5) Provides that supplying, selling, or delivering ammunition to someone that a person knows or reasonably should know is prohibited from owning or possessing ammunition is a misdemeanor punishable by up to one year in the county jail. (Penal Code § 30306.) 6) Provides that possession of ammunition on school grounds without the written permission of the school district superintendent is prohibited except for persons who have been issued a license to carry a concealed weapon or in limited situations involving law enforcement or military personnel. Violation of this section is punishable as a misdemeanor. (Penal Code § 30310.) 7) Prohibits possession of any handgun ammunition designed primarily to penetrate metal or armor. A violation is punishable as either a felony by 16 months, two or three years in county jail or as a misdemeanor by up to one year in the county jail, unless the person found the ammunition and they are not otherwise prohibited from possessing firearms or ammunition, and they are transporting it to a law enforcement agency for disposal. (Penal Code § 30315.) 8) Provides that manufacturing, importing, or selling handgun ammunition designed primarily to penetrate metal or armor is a felony, punishable by 16 months, two or three years in state prison and a fine of up to $5,000, or both. (Penal Code § 30320.) 9) Provides that, with limited exceptions, delivery or transfer of ownership of handgun ammunition may only occur in a face-to-face transaction with bona fide evidence of identity from the purchaser. Violation of this section is punishable as a misdemeanor. (Penal Code § 30312.)* SB 1235 Page 4 10)Provides that vendors of handgun ammunition must comply with certain conditions, requirements and prohibitions, with limited exceptions, including not selling or transferring ownership of any handgun ammunition without, at the time of delivery, legibly recording the following information. (Penal Code § 30352.):* a) The date of the sale or other transaction; b) The purchaser's/transferee's driver's license or ID number and the state of issuance; c) The brand, type, and amount of ammunition sold or otherwise transferred; d) The purchaser's/transferee's signature; e) The name of the salesperson who processed the sale or other transaction; f) The right thumbprint of the purchaser or transferee on the above form; g) The purchaser's /transferee's full residential address and telephone number; and h) The purchaser's/transferee's date of birth. 11)Requires that handgun ammunition vendors must keep these records for a period of not less than five years and must make these records available to inspection by specified law enforcement during normal business hours. (Penal Code §§ 30355, 30357.)* 12)Requires that handgun ammunition vendors shall not knowingly make a false entry or fail to make an entry or obtain the required thumbprint. (Penal Code § 30360.)* 13)Provides that violations of the above laws regarding handgun ammunition vendors are punishable as a misdemeanor. (Penal Code § 30365.)* 14)Defines "handgun ammunition" as "ammunition principally for SB 1235 Page 5 use in pistols, revolvers, and other firearms capable of being concealed upon the person, notwithstanding that the ammunition may also be used in some rifles" and exempting, as specified: a) Ammunition designed and intended to be used in an antique firearm; and b) Blanks. (Penal Code § 16650.)* (* Enforcement of these sections is 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.) This bill: 1) Requires the Department of Justice (DOJ) to maintain ammunition vendor license information, ammunition transaction information, and authorizes specified agencies, officials, and officers to disseminate the name of a person and specified ammunition purchase information by that person if the subject of the record has been arraigned, is being prosecuted, or is serving a sentence for conviction of domestic violence or is the subject of a protective order, as specified. 2) Defines "ammunition" to mean one or more loaded cartridges consisting of primer case, propellant, and with one or more projectiles. Ammunition does not include blanks. 3) States that effective January 1, 2018, "ammunition vendor" means any person, firm, corporation, dealer, or any other business that has a current ammunition vendor license, as specified. 4) Requires commencing January 1, 2019, that information contained in the Armed Prohibited Persons File (APPS) be used to cross-reference persons who attempt to acquire ammunition SB 1235 Page 6 to determine if those persons fall within a class of persons who are prohibited from owning or possessing ammunition. 5) Provides that any person, corporation, firm, or other business enterprise who supplies, delivers, sells, or gives possession or control of, any ammunition to any person who the person, corporation, firm, or other business enterprise knows or has cause to believe is not the actual purchaser or transferee or has cause to believe is not the actual purchaser or transferee of the ammunition, with knowledge or cause to believe that the ammunition is to be subsequently sold or transferred to a person who is prohibited from owning, possessing, or having under custody or control any ammunition or reloaded ammunition is guilty of a misdemeanor, punishable by imprisonment in a county jail not exceeding one year, or a fine not exceeding $1,000, or by both that fine and imprisonment. 6) States that commencing January 1, 2018, only an ammunition vendor that is licensed by the DOJ shall be authorized to sell ammunition in this state, except for the following entities: a) A commercial hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity; b) A domesticated game bird hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity; c) A domesticated migratory game bird shooting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity; d) A nonprofit mutual or public benefit corporation organized, as specified, that engages in recreational shooting and lawful hunting activity provided that the ammunition is used and consumed during the shooting or hunting event conducted by that nonprofit or public SB 1235 Page 7 benefit corporation; e) A target facility that holds a business or regulatory license provided that the ammunition is at all times kept within the facility's premises and used on the premises; and, f) A person who sells no more than 50 rounds of ammunition to one vendor in one month or cumulatively sells no more than 250 rounds per year to vendors in this state. 7) Authorizes the DOJ to issue ammunition vendor licenses pursuant to this article. The DOJ shall, commencing July 1, 2017, accept applications for ammunition vendor licenses. The DOJ shall issue a license or deny the application for a license within 60 days of receipt of the application in the first two years of implementation, and within 30 days thereafter. If the application is denied, the DOJ shall inform the applicant of the reason for denial in writing. The ammunition vendor license shall be issued in a form prescribed by the Attorney General and shall be valid for a period of one year. The license shall allow the licensee to sell ammunition from a fixed location, except as specified. 8) Requires the DOJ to issue ammunition vendor licenses to ammunition vendors who are not prohibited by law from possessing, receiving, owning, or purchasing a firearm and possess a certificate of eligibility (COE), and requires any agent or employee of a vendor who handles, sells, or delivers ammunition to possess a COE. 9) Requires the DOJ, upon request, to issue ammunition vendor licenses to the following: a) Firearms dealers; b) Federal firearms licensees; c) A gunsmith; d) A wholesaler, and, e) A licensed manufacturer or importer of firearms or SB 1235 Page 8 ammunition. 10)States that commencing July 1, 2019, the DOJ shall electronically approve the purchase or transfer of ammunition through a vendor, except as otherwise specified. This approval shall occur at the time of purchase or transfer, prior to the purchaser or transferee taking possession of the ammunition. 11)Provides that to determine if the purchaser or transferee is eligible to purchase or possess ammunition, the DOJ shall cross-reference the ammunition purchaser's or transferee's name, date of birth, current address, and driver's license or other government identification number with the information maintained in the Automated Firearms System (AFS). If the purchaser's or transferee's information does not match an AFS entry, the transaction shall be denied. If the purchaser's or transferee's information matches an AFS entry, the DOJ shall determine if the purchaser or transferee falls within a class of persons who are prohibited from owning or possessing ammunition by cross-referencing the APP File. If the purchaser or transferee is prohibited from owning or possessing a firearm, the transaction shall be denied. 12)Prohibits a vendor from providing a purchaser or transferee ammunition without DOJ approval. If a vendor cannot electronically verify a person's eligibility to purchase or possess ammunition via an Internet connection, the DOJ shall provide a phone line to verify eligibility. This option is available to ammunition vendors who can demonstrate legitimate geographical and telecommunications limitations in submitting the information electronically, and who are approved by the DOJ to use the phone line verification. 13)Allows the DOJ shall recover the reasonable cost of regulatory and enforcement activities related to this article by charging ammunition purchasers and transferees a per-transaction fee not to exceed $1, provided, however, that SB 1235 Page 9 the fees may be increased at a rate not to exceed any increases in the California Consumer Price Index as compiled and reported by the Department of Industrial Relations, not to exceed the reasonable regulatory and enforcement costs. The fees shall be deposited in the Ammunition Special Account, to be available upon appropriation by the Legislature, for use by the DOJ for the purpose of implementing and enforcing this bill. 14)Provides that the following are not subject to the ammunition purchase requirements: a) Firearms dealers; b) A person on the centralized list of federal firearms licensees; c) A gunsmith; d) A wholesaler; e) A licensed manufacturer or importer of firearms or ammunition; f) A person whose licensed premises are outside the state, and the person is federally licensed as a dealer or collector of firearms; g) A person who is a federally licensed as a collector of firearms whose licensed premises are within the state and who has a current COE issued by DOJ; h) An authorized law enforcement representative of a city, county, city and county, or state or federal government, if the sale or other transfer is for exclusive use by that government agency, and, prior to the sale, delivery, or transfer of the ammunition, written authorization from the head of the agency authorizing the transaction is presented to the person from whom the purchase, delivery, or transfer is being made. Proper written authorization is defined as verifiable written certification from the head of the agency, or designee, by which the purchaser, transferee, or person otherwise acquiring ownership is employed, identifying the employee as an individual authorized to conduct the transaction, and authorizing the transaction for the exclusive use of the agency by which that individual is employed; SB 1235 Page 10 i) A properly identified sworn federal, state, or local peace officer; j) A target facility that holds a business or regulatory license; aa) A person who purchases or receives ammunition at a target facility holding a business license or other regulatory license, provided that the ammunition is at all times kept within the facility's premises and used on the premises. bb) A commercial hunting club, as defined; cc) A domesticated game bird hunting club, as defined; dd) A domesticated migratory game bird hunting club, as defined; ee) A domesticated migratory game bird shooting club, as defined; ff) A participant at a shooting or hunting event conducted by any of the following: i) A commercial hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity. ii) A domesticated game bird hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity. iii) A domesticated migratory game bird shooting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity. gg) A nonprofit mutual or public benefit corporation organized, as specified, that engages in recreational shooting and lawful hunting activity; hh) A nonprofit mutual or public benefit corporation organized, as specified, that engages in recreational shooting and lawful hunting activity provided that the ammunition is used and consumed during the shooting or hunting event conducted by that nonprofit or public benefit corporation; ii) A peace officer, retired peace officer, or holder of a concealed weapons permit who is authorized to carry a loaded weapon; SB 1235 Page 11 jj) A holder of a special weapons permit issued by the DOJ; aaa) A holder of a valid entertainment firearms permit issued by the DOJ; bbb) A person who is not prohibited from purchasing or possessing a firearm who has been approved for a single ammunition transaction or purchase; and ccc) A person who has a current certificate of eligibility issued by the DOJ pursuant to Penal Code Section 26710. 15)States that a vendor shall not permit an employee who the vendors knows or reasonably should know is a person that is prohibited from purchasing or owning a firearm to handle, sell or deliver ammunition in the course and scope of employment. 16)Provides that a vendor shall not sell or otherwise transfer ownership of, offer for sale, or otherwise offer to transfer ownership of, display for sale, or display for transfer any ammunition in a manner that allows that ammunition to be accessible to a purchaser or transferee without the assistance of the vendor or an employee of the vendor. 17)Requires the sale, delivery, or transfer of ammunition to occur only in a face-to-face transaction with the seller, deliverer, or transferor being provided bona fide evidence of identity from the purchaser or other 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 required by law. An ammunition vendor is required to promptly and properly process those transactions. An ammunition vendor may charge a fee to process the transfer not to exceed $10 per transaction. An ammunition vendor is not required to house ammunition orders longer than 30 days. 18)Provides that the following persons are not subject to the SB 1235 Page 12 ammunition sales requirements: a) Firearms dealers; b) A person on the centralized list of federal firearms licensees; c) A gunsmith; d) A wholesaler; e) A licensed manufacturer or importer of firearms or ammunition; f) A person whose licensed premises are outside the state, and the person is federally licensed as a dealer or collector of firearms; g) A person who is a federally licensed as a collector of firearms whose licensed premises are within the state and who has a current COE issued by DOJ; h) An authorized law enforcement representative of a city, county, city and county, or state or federal government, if the sale or other transfer is for exclusive use by that government agency, and, prior to the sale, delivery, or transfer of the ammunition, written authorization from the head of the agency authorizing the transaction is presented to the person from whom the purchase, delivery, or transfer is being made. Proper written authorization is defined as verifiable written certification from the head of the agency, or designee, by which the purchaser, transferee, or person otherwise acquiring ownership is employed, identifying the employee as an individual authorized to conduct the transaction, and authorizing the transaction for the exclusive use of the agency by which that individual is employed; i) A properly identified sworn federal, state, or local peace officer; j) A target facility that holds a business or regulatory license; aa) A commercial hunting club, as defined; bb) A domesticated game bird hunting club, as defined; cc) A domesticated migratory game bird hunting club, as defined; dd) A domesticated migratory game bird shooting club, as defined; ee) A nonprofit mutual or public benefit corporation SB 1235 Page 13 organized, as specified, that engages in recreational shooting and lawful hunting activity; ff) A consultant-evaluator; and, gg) A contract or common carrier or an authorized agent or employee thereof. 19)Requires that ammunition sales be conducted at the location specified in the license, but a vendor may sell ammunition at a gun show or event, as specified. 20)Provides that when neither party to an ammunition sales is a licensed vendor, the following shall apply: a) The seller shall deliver the ammunition to a vendor to process the transaction. b) The vendor shall then promptly and properly deliver the ammunition to the purchaser, if the sale is not prohibited, as if the ammunition were the vendor's own merchandise. c) If the vendor cannot legally deliver the ammunition to the purchaser, the vendor shall forthwith return the ammunition to the seller. This return is not subject to Penal Code Section 30356. d) The vendor may charge the purchaser an administrative fee to process the transaction, not to exceed $10 per transaction processed. e) A person selling ammunition pursuant to this section is exempt from the requirement to be licensed as an ammunition vendor. 21)States that notwithstanding the purchase and sale requirements of this bill, the sale of ammunition between the following is authorized so long as it does not exceed 50 rounds per month: a) The sale of ammunition between licensed hunters while engaged in lawful hunting activity. SB 1235 Page 14 b) The sale of ammunition between immediate family members, spouses, or registered domestic partners. 22)Provides that commencing July 1, 2019, a resident of this state shall not bring into this state any ammunition that he or she purchased from outside this state unless he or she first has that ammunition delivered to an ammunition vendor in this state for delivery to the resident, as specified. 23)Provides that the following persons are not subject to the requirements related to bringing into this state any ammunition: a) Firearms dealers. b) A person on the centralized list of federal firearms licensees. c) A gunsmith. d) A wholesaler. e) A licensed manufacturer or importer of firearms or ammunition. f) An ammunition vendor. g) A person who is a federally licensed as a collector of firearms whose licensed premises are within the state and who has a current COE issued by DOJ. h) An authorized law enforcement representative of a city, county, city and county, or state or federal government, if the sale or other transfer is for exclusive use by that government agency, and, prior to the sale, delivery, or transfer of the ammunition, written authorization from the head of the agency authorizing the transaction is presented to the person from whom the purchase, delivery, or transfer is being made. Proper written authorization is defined as verifiable written certification from the head of the agency, or designee, by which the purchaser, transferee, or person otherwise acquiring ownership is employed, identifying the employee as an individual authorized to conduct the transaction, and authorizing the transaction for the exclusive use of the agency by which that individual is employed. SB 1235 Page 15 i) A properly identified sworn federal, state, or local peace officer. j) A contract or common carrier or an authorized agent or employee thereof, when acting in conformance of federal law. aa) A person who purchases the ammunition from an immediate family member, spouse, or registered domestic partner if the person brings or transports into this state no more than 50 rounds. bb) The executor or administrator of an estate that includes ammunition. cc) A person that at the time he or she acquired the ammunition was not a resident of this state. dd) Ammunition that is imported into this country, as specified. ee) A licensed hunter who purchased the ammunition outside of this state for use in a lawful hunting activity that occurred outside of this state if the person brings or imports no more than 50 rounds into this state and the ammunition is designed and intended for use in the firearm the hunter used in that hunting activity. ff) A person who attended and participated in an organized competitive match or league competition that involves the use of firearms in a match or competition; sponsored by, conducted under the auspices of, or approved by, a law enforcement agency or a nationally or state recognized entity that fosters proficiency in, or promotes education about, firearms, and the person brings or imports into this state no more than 50 rounds of ammunition designed and intended to be used in the firearm the person used in the match or competition. 24)Provides that commencing January 1, 2019, a vendor shall not sell or otherwise transfer ownership of any ammunition without, at the time of delivery, legibly recording the following information: a) The purchaser's full name; b) The purchaser's or transferee's driver's license or other identification number and the state in which it was SB 1235 Page 16 issued; c) The date of the sale or other transaction; d) The brand, type, and amount of ammunition sold or otherwise transferred; e) The name of the salesperson who processed the sale or other transaction; f) The purchaser's or transferee's full residential address and telephone number; and, g) The purchaser's or transferee's date of birth. 25)States that commencing July 1, 2019, the vendor shall electronically submit to the DOJ ammunition purchase information in a format and a manner prescribed by the DOJ for all sales or other transfers of ammunition. The DOJ shall retain this information for two years in a database to be known as the Ammunition Purchase Records File for the sole purpose of aiding and assisting local and state law enforcement agencies in an active investigation. The vendor shall not share any of the ammunition purchase information for any reason other than for authorized law enforcement purposes. The information in the Ammunition Purchase Records File may be accessed by a state or local law enforcement agency only if the DOJ is provided a case number or other sufficient information as determined by the DOJ that indicates an active investigation, and the information sought is for the investigation or prosecution of that case. 26)Provides that in the case a vendor cannot electronically transmit the required ammunition purchase information via an Internet connection, the DOJ shall provide a telephone line to submit the information 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. 27)Provides that the following persons are not subject to the electronic submission of ammunition purchase information: SB 1235 Page 17 a) Firearms dealers. b) A person on the centralized list of federal firearms licensees. c) A gunsmith. d) A wholesaler. e) A licensed manufacturer or importer of firearms or ammunition. f) An ammunition vendor. g) An authorized law enforcement representative of a city, county, city and county, or state or federal government, if the sale or other transfer is for exclusive use by that government agency, and, prior to the sale, delivery, or transfer of the ammunition, written authorization from the head of the agency authorizing the transaction is presented to the person from whom the purchase, delivery, or transfer is being made. Proper written authorization is defined as verifiable written certification from the head of the agency, or designee, by which the purchaser, transferee, or person otherwise acquiring ownership is employed, identifying the employee as an individual authorized to conduct the transaction, and authorizing the transaction for the exclusive use of the agency by which that individual is employed. h) A properly identified sworn federal, state, or local peace officer. i) A target facility that holds a business or regulatory license. j) A commercial hunting club, as defined. aa) A domesticated game bird hunting club, as defined. bb) A domesticated migratory game bird hunting club, as defined. cc) A domesticated migratory game bird shooting club, as defined. dd) A participant at a shooting or hunting event conducted by any of the following: i) A commercial hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity. ii) A domesticated game bird hunting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting SB 1235 Page 18 activity. iii) A domesticated migratory game bird shooting club, as defined, provided the ammunition is used and consumed on the licensed premises while engaged in lawful hunting activity. ee) A nonprofit mutual or public benefit corporation organized, as specified, that engages in recreational shooting and lawful hunting activity. ff) A participant at a shooting or hunting event conducted by a nonprofit mutual or public benefit corporation organized, as specified, that engages in recreational shooting and lawful hunting activity provided that the ammunition is used and consumed during the event. 28)Prohibits a vendor from knowingly making a false entry, or failing to make a required entry of ammunition purchase information. 29)Provides that any person that violates any requirement related to the sale or purchase of ammunition is guilty of a misdemeanor punishable by imprisonment in a county jail not exceeding one year, or by a fine not exceeding $1,000, or by both imprisonment and a fine. 30)Amends and repeals the ammunition purchase and sale requirements proposed to be added by the Safety for All Act of 2016 at the November 8, 2016, statewide general election. Comments This bill repeals and reconstructs the provisions of the Penal Code relating to ammunition vendors. In doing so, this bill sets up a new regulatory framework for the sale and purchase of ammunition in California. First, this bill applies its provisions to all ammunition, thereby avoiding the vagueness concerns raised in the Parker case. As discussed in detail SB 1235 Page 19 above, this bill: Requires anyone wishing to sell ammunition in California to obtain an Ammunition Vendor's License. Requires licensed ammunition vendors to have ammunition transactions approved by the DOJ prior to delivering the ammunition to the purchaser. The DOJ would then perform a 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. Requires ammunition vendors to collect certain purchaser information. Requires that ammunition be sold and purchased in a face-to-face transaction. (This bill states 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.) 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. Contains a number of categories of individuals that are not subject to its provisions. Thus, in order to purchase ammunition in California, an individual would have to pay a transaction fee, which is set at a maximum of $1, and have at least one firearm in the DOJ's AFS. SB 1235 Page 20 Since the DOJ did not begin collecting long gun records until 2014, there are likely a number of firearms owners in California that do not have firearms in the AFS. For those individuals, and others, the DOJ has an existing procedure that would allow firearms owners to report firearms ownership. (https://oag.ca.gov/sites/all/files/agweb/pdfs/ firearms /forms/volreg.pdf?.) FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee: Project development: Major one-time costs to the 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. Appropriations 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. 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 SB 1235 Page 21 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 this 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 Penal Code Section 30305(a) is unchanged from existing law as specified in Penal Code Section 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 5% 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 SUPPORT: (Verified6/29/16) California Chapters of the Brady Campaign to Prevent Gun Violence California Police Chiefs Association Law Center to Prevent Gun Violence OPPOSITION: (Verified6/29/16) SB 1235 Page 22 California Sportsman's Lobby Crossroads of the West Firearms Policy Coalition Gun Owners of California National Shooting Sports Foundation, Inc. Outdoor Sportsmen's Coalition of California The Safari Club International ARGUMENTS IN SUPPORT: According to the California Chapters of the Brady Campaign to Prevent Gun Violence: Ammunition sales are virtually unregulated in California. The buyers and sellers of ammunition are unknown. There is currently no ability to prevent individuals who, under existing law, are prohibited from purchasing firearms and ammunition from buying ammunition. Dangerous individuals armed with illegal guns can easily purchase ammunition in California. SB 1235 authorizes the Department of Justice (DOJ) to issue ammunition vendor licenses to legitimate businesses as specified in the bill. Beginning on January 1, 2018, an ammunitino0 vendor must be licensed in order to sell ammunition. A license would be valid for one year and DOJ would be authorized to charge a fee to cover the cost of issuance. DOJ will maintain a registry of all licensed ammunition vendors. An ammunition vendor registry is important because the State cannot even begin to regulate the sale of ammunition until it is known who is selling ammunition. Commencing July 1, 2019, SB 1235 requires ammunition vendors to electronically submit information about a purchaser of ammunition to DOJ, which would cross-reference the Automated Firearms System (AFS) and the Prohibited Armed Persons File (APPS). If the ammunition purchaser has a firearm listed in AFS and has not fallen into APPS because he or she subsequently became prohibited, then the sale would immediately proceed. If an ammunition purchaser does not have a firearm listed in AFS, the person may obtain an ammunition SB 1235 Page 23 transaction license from DOJ, which would include a background check, and be approved for a single ammunition transaction. ARGUMENTS IN OPPOSITION: The Firearms Policy Coalition states: On behalf of the members and supporters of Firearms Policy Coalition, I respectfully submit our opposition to Senate Bill 1235 (de Leon), a measure, like its identical twin AB 156 (McCarty), which seeks to restrict the sale of ammunition via a "may-issue" ammunition vendors licensing scheme, prohibitions on common everyday behavior and transactions-turning everyday residents and visitors into criminals, building a database of consumables and setting up a giant new bureaucracy within one of the least capable state agencies to do so -- the California Department of Justice (CADOJ) . Over the years, the many iterations of this concept, such as Senator de Leon's SB 53 of the 2013-2014 session and Lt. Governor Gavin Newsom's pending ballot initiative, have all been ranked to cost into the low to mid tens of millions of dollars on the front-end. The implementation costs to establish these new programs, databases, user interfaces, regulations, policies and procedures to accommodate the demand, assuming at least partial compliance, would not only cost tens of millions of dollars as cited in in prior analyses of similar measures, but the ongoing expense has often been estimated to be in the low millions to maintain, enforce, investigate, prosecute and incarcerate otherwise law abiding residents. The real-life implementation and social costs are so great that a simple position letter is not suitable to address them. Many of these issues have been addressed already in a recent joint public safety committee informational hearing regarding Lt. Gov. Gavin Newsom's ballot initiative on the same subject. Given that this issue is likely to be on the November general election ballot, this measure, and those like it, are premature and should be withdrawn. We have reached the point in history where the level of SB 1235 Page 24 compliance with gun laws in California will be directly inverse to the volume of legislation that gun-owners are expected to jump through to exercise a fundamental right. Prepared by: Jessica Devencenzi / PUB. S. / 6/30/16 11:37:03 **** END ****