BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 334
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          Date of Hearing:   March 27, 2007
          Counsel:        Kimberly A. Horiuchi


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Jose Solorio, Chair

                 AB 334 (Levine) - As Introduced:  February 13, 2007
           
           
           SUMMARY  :   Creates an infraction for any person who acquires or  
          re-acquires ownership of a handgun or who reports his or her  
          ownership of a handgun to the Department of Justice (DOJ) on or  
          after July 1. 2008 to fail to notify local law enforcement if  
          the handgun is lost or stolen, as specified.  Specifically,  this  
          bill  :   

          1)Provides that any person whose handgun is stolen or  
            irretrievably lost and who, within five working days after his  
            or her discovery or knowledge, fails - or within five days  
            after the date he or she reasonably should have known of the  
            theft or loss of the handgun, fails - to report the theft or  
            loss to the local law enforcement agency where the loss or  
            theft occurred or where the person resides

          2)States any person who does not report a lost or stolen handgun  
            to local law enforcement within five days, as specified, shall  
            be punished as follows:

             a)   For the first violation, by a fine not to exceed $100.

             b)   For a second or subsequent violation, by a fine not to  
               exceed $250.

          3)States any person who reports a lost or stolen handgun to  
            local law enforcement within five days, as specified, shall be  
            immune from any civil liability for the illicit use or  
            possession of the firearm occurring after the theft or loss,  
            except where the person had prior knowledge of the misconduct  
            or was negligent with respect to the loss or theft.

          4)Requires that no charge be imposed for submitting a report of  
            a lost or stolen handgun. 

          5)Requires DOJ, in promulgating forms and reports pursuant to  








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            any provision of law that requires or allows a person to  
            report his or her ownership of a handgun to the DOJ, to  
            include information indicating the reporting requirement for  
            loss or theft, as specified. 

          6)Provides that commencing July 1, 2008, the licensee shall, at  
            the time of delivering a handgun to a person acquiring  
            ownership or to a person complying with statutes relating to  
            firearms dealership, provide the person with written notice of  
            the requirements of reporting loss or theft, as specified in a  
            format prescribed by the DOJ.

          7)Requires the licensee to sign and date an affidavit in  
            duplicate stating that the person receiving the handgun has  
            been given notice.  The licensee shall additionally obtain the  
            signature of the person receiving the handgun on the same  
            affidavit.

          8)States the licensee shall retain the original affidavit and  
            provide the duplicate to the person receiving the handgun. 

          9)States that this bill shall not be construed as preempting an  
            existing ordinance or to prevent a local government from  
            enacting an ordinance that imposes reporting requirements that  
            are stricter than those specified in this bill.

           EXISTING LAW  :

          1)Provides that an infraction is not punishable by imprisonment  
            and specified infractions are punishable by a fine of up to  
            $250.  (Penal Code Sections 19.6 and 19.8.)

          2)Defines a "handgun" as any pistol, revolver, or firearm  
            capable of being concealed on the person.  (Penal Code Section  
            12001.)

          3)Requires the DOJ to provide a report to the Legislature  
            regarding the specific types of firearms used in the  
            commission of crimes.  (Penal Code Section 12039.)

          4)Provides that any person seeking a license to sell firearms in  
            California must obtain the following:

             a)   A valid federal firearms license;









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             b)   Any regulatory or business license, or licenses,  
               required by local government;

             c)   A valid seller's permit issued by the State Board of  
               Equalization; 

             d)   A certificate of eligibility (CEO) issued by the DOJ.  A  
               COE requires a fingerprint-based, background check to  
               ensure the applicant may possess firearms and DOJ then  
               enters the person in DOJ's computer system which alerts the  
               DOJ if the person subsequently comes into a category of  
               persons prohibited from possessing firearms; and,

             e)   A local license to sell firearms issued in the  
               prescribed format, which may be valid for not more than one  
               year.  (Penal Code Section 1207.)

          5)States the general requirement that the sale, loan or transfer  
            of a firearm (handguns, rifles and shotguns) in California be  
            conducted through a state-licensed firearms dealer or through  
            a local sheriff's department in counties of less than 200,000  
            in population.  A 10-day waiting period, background check, and  
            handgun safety certificate for handgun transfers are required  
            prior to delivery of the firearm.  [Penal Code Sections  
            12072(c) and (d) and 12084.]

          6)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.  In those cases where dealer or law  
            enforcement processing is not required, a handgun change of  
            title report must still be sent to DOJ.  [Penal Code 12072(c)  
            and (d) and Penal Code Section 12078.]

          7)States that, on request, DOJ will register transactions  
            relating to handguns in the Automated Firearm System Unit for  
            persons who are exempt from dealer processing or are otherwise  
            exempt by statute from reporting processes.  [Penal Code  
            Section 12078(l).]

          8)Requires handguns to be centrally registered at time of  
            transfer or sale due to various transfer forms centrally  
            compiled by the DOJ.  DOJ is required to keep a registry from  
            data sent to DOJ indicating who owns what handgun by make,  
            model, and serial number and the date thereof.  [Penal Code  








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            Section 11106(a) and (c).]

          9)States that law enforcement agencies must promptly report to  
            DOJ all reports it receives of lost, stolen, and found  
            property.  (Penal Code Sections 11107 and 11108.)  

          10)States that the DOJ must keep a centralized and computerized  
            list of all lost, stolen, and found serialized property  
            reported to DOJ.  [Penal Code Section 11106(a).]

          11)Provides that every person is responsible not only for the  
            result of his or her willful acts, but also for an injury  
            occasioned to another by his or her want of ordinary care or  
            skill in the management of his or her property or person  
            except so far as the latter has, willfully or by want of  
            ordinary care, brought the injury upon himself or herself.   
            The design, distribution, or marketing of firearms and  
            ammunition is not exempt from the duty to use ordinary care  
            and skill that is required by this section.  (Civil Code  
            Section 1714.)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    

           1)Author's Statement  :  According to the author, "This bill seeks  
            to limit the ability of straw purchasers to supply guns to  
            criminals who cannot legally own firearms.  Often, criminals  
            who are not eligible to own a gun contact a 'straw purchaser'  
            who can legally purchase a firearm.  This straw purchaser buys  
            a gun, and then sells the gun on the black market to the  
            person who cannot legally own a gun.  When the new owner  
            commits a crime with the black market gun, it is often traced  
            back to the straw purchaser.  The straw purchaser can then  
            claim he lost the gun prior to the crime, and law enforcement  
            is unable to prosecute.  This bill would require a gun owner  
            to report a lost or stolen gun.  If the loss is not reported  
            within five days, the registered owner of the firearm can be  
            fined.  This should significantly curb the ability of  
            criminals to acquire firearms through straw purchasers.  As  
            gang violence has increased across California, particularly in  
            the City of Los Angeles, new measures must be adopted to  
            prevent dangerous criminals from obtaining these deadly  
            weapons.  The current patchwork of lost and stolen regulations  
            adopted in some municipalities has proven ineffective at  








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            curbing the ability of straw purchasers to operate in the  
            black market.  A statewide lost and stolen requirement is a  
            logical policy remedy to curb increasing gang violence in  
            California."

           2)Background  :  According to the report released in December 2002  
            by the Americans for Gun Safety Foundation (AGSF), 1,695,482  
            firearms have been reported stolen to police since 1993 and  
            are frequently used in later crimes.  Of the firearms stolen  
            over the past 10 years, 687,857 have been recovered and  
            1,007,625 remain missing.  These firearms represent only the  
            number of those stolen in which owners are able to supply  
            serial numbers.

          The AGSF report, "Stolen Firearms:  Arming the Enemy", found  
            that six states - Alaska, Alabama, Mississippi, Arkansas, New  
            Mexico, and Georgia - have firearm theft rates of at least  
            twice the national average.  California, Texas, Florida,  
            Georgia, and North Carolina had the most firearm thefts over  
            the past 10 years.  Between January 1993 and August 2002 - a  
            period covering slightly less than 10 years, 16.8 firearms  
            were stolen for every 1,000 households in America.  But some  
            states had firearm theft rates well above the national  
            average.  Alaska had 42.7 firearm thefts per 1,000 households,  
            followed by Alabama and Mississippi, Arkansas, New Mexico and  
            Georgia.  A 1997 DOJ survey of 33,731 state prison inmates  
            found that at least 9.9% used a stolen firearm to commit the  
            offense that they were convicted of.  Both Michigan and New  
            York require gun owners to report lost or stolen firearms.

          The lack of a reporting requirement was raised most recently at  
            an interim hearing before the Assembly Select Committee on Gun  
            Violence.  As noted in a February 5, 2003 report by the Johns  
            Hopkins Center for Gun Policy and Research, the role of gun  
            theft in arming criminals and the importance of implementing  
            mandatory theft reporting policies is indicated by the fact  
            that surveys of gun owners suggest that approximately 500,000  
            guns are stolen each year from private citizens.

           3)California Registration Requirements  :  Handgun owners are not  
            required to possess licenses or to register their firearms  
            under current California law.  Penal Code Section 12026(b)  
            provides that "[no] permit or license to purchase, own,  
            possess, keep, or carry either openly or concealed shall be  
            required of any citizen of the United States or legal resident  








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            over the age of 18 years who resides or is temporarily within  
            this state."  However, after April 1, 1994, any person seeking  
            to purchase or receive from some other type of transfer a  
            firearm was required to obtain a basic firearms safety  
            certificate after taking a two- to four-hour course of  
            instruction.  

           4)Reporting Unregistered Guns  :  For many years, California has  
            been a handgun registration state at point of transfer,  
            including loans.  [Penal Code Sections 111106(c) and 12072(c)  
            and (d).]  Since 1998, persons who move to California with  
            handguns are required to register those handguns with DOJ.   
            [Penal Code Section 12072(f) (2).]  Further, any person who  
            wishes to register his or her handgun may do so pursuant to  
            Penal Code Section 12078(l).  However, a person is not  
            required to register a gun in order to maintain legal  
            possession if he or she acquired the firearm before these laws  
            were enacted as those provisions were not retroactive.  As a  
            result, there is a group of persons who legally possess  
            handguns not currently registered.  If that person's handgun  
            is lost or stolen, the person will not be able to provide law  
            enforcement officials with a serial number for the handgun.  A  
            lost or stolen handgun report without the specific serial  
            number is not very useful in tracking a handgun that may later  
            be used in a crime. 

           5)Federal Penalties  :  The Federal Government requires persons  
            who engage in the firearms business to be licensed, including  
            persons who make, import, repair, loan, sell, or take in trade  
            firearms as a business.  This federal category is greater than  
            state licensing requirements, which extend only to persons who  
            loan or transfer title in firearms.  To be state licensed, a  
            federal firearm license is required as a precondition.  Former  
            United States Senator Simon of Illinois was able to  
            incorporate into the 1993 federal Brady Bill and the 1994  
            federal crime bill amendments that:  (a) required reporting of  
            gun thefts, and (b) made theft of firearms from federal  
            firearms licensees a federal crime with a 10-year penalty.   
            [18 U.S.C. 924(l).]  In addition, as a result of the 1990  
            federal crime bill, almost all forms of firearms theft and  
            possessing stolen firearms (including receiving stolen  
            firearms) are  prosecutable in federal court when it can be  
            shown that the firearm (or its frame or receiver) at any prior  
            time crossed a state or federal boundary.  









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          These cases would include where the firearm crossed a state or  
            federal boundary prior to it being stolen.  [18 USC 922(j) and  
            924(k);  United States v.  Honaker (1993) 5 F.3d 160  
            (6th.Cir.).] 

           6)Does this Bill Raise Fifth Amendment Concerns of the Right  
            Against Self-Incrimination  :  In  United States v. Sullivan   
            (1926) 274 U.S. 259, the Supreme Court stated that unless a  
            reporting statute is specifically designed to ferret out a  
            specific category of criminal activities, failure to file a  
            report where the statute applies to conventional activities or  
            items of the public at large is not a defense.  While a person  
            has the privilege not to incriminate oneself, the person may  
            do so only by affirmatively refusing to answer those questions  
            which raise a substantial likelihood that an answer (or what  
            flows from the answer) would tend to incriminate that person.   
            The refusal to answer must be based on the privilege and  
            refusal to answer on privilege grounds must be based on a  
            good-faith assumption that an answer to a particular question  
            leads to an appreciable risk of prosecution.  There is no  
            requirement that before a prosecution takes place for failure  
            to answer a specific question a person has a right to a  
            judicial determination that the privilege is claimed in good  
            faith.  The privilege does not lie (and the testimony is not  
            immunized or inadmissible) when the defendant invokes the  
            privilege, but then makes voluntary statements without a grant  
            of use immunity; a good-faith claim of privilege is a defense  
            to a prosecution for refusing to answer specific questions.

          In this case, there is no indication that this bill is designed  
            solely to find people who own guns illegally.  Rather, the  
            intent seems to be to track the number of stolen guns in  
            California and be aware of a gun's lost or stolen status when  
            a gun shows up in the commission of a crime.  It also seems  
            likely that a person who is using a gun illegally would be  
            less inclined to report it lost or stolen.

           7)Governor's Veto Message of SB 59  :  SB 59 (Lowenthal), of the  
            2005-06 Legislative Session, was a similar bill and vetoed.   
            The Governor stated, "While I share the Legislature's concern  
            about the criminal use of lost or stolen weapons, the  
            ambiguous manner in which this bill was written would make  
            compliance with the law confusing for legitimate gun-owners  
            and could result in cases where law-abiding citizens face  
            criminal penalties simply because they were the victim of a  








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            crime, which is particularly troubling given the unproven  
            results of other jurisdictions in California that have passed  
            similar measures.  In addition, this bill may have undesirable  
            legal consequences as it allows local governments to pass  
            ordinances that differ from State law, thereby leaving  
            law-abiding citizens with the task of navigating through a  
            maze of different or conflicting local laws depending upon the  
            jurisdiction they are in.  A patchwork of inconsistent local  
            ordinances creates compliance and enforcement problems that  
            erode the State's ability to effectively regulate handguns  
            statewide."  The language of this bill is the same as SB 59. 

           8)Arguments in Opposition  :  

             a)   The  California Rifle and Pistol Association  states,  
               "This bill would impose upon the victim of a theft or a  
               loss of a handgun substantial fines for not reporting the  
               theft or loss within five working days of its occurrence or  
               within five working days of when the person 'should  
               reasonably have known' of it.  This bill would punish the  
               innocent victim and mandate a 'should reasonably have  
               known' standard without providing any indication of what  
               the term means relative to the requirements of this bill.   
               Firearms are not normally used every day like many other  
               consumer items and they are stored in out of sight  
               locations where their disappearance might not become known  
               for a long time.  This bill is deficient by not providing  
               some sort of guidelines relative to what 'should reasonably  
               have known' means the purpose of determining when a  
               violation of this standard has taken place.  It is  
               imperative that firearms laws be uniform statewide.  This  
               bill would make California's already confusing and  
               difficult to understand firearms laws even more difficult  
               for lawful individuals and law enforcement to comprehend."

             b)   The  Gun Owners of California, Inc.  , states, "This bill  
               makes failure to report a stolen or irretrievably lost  
               firearm a crime.  This bill also applies the same standards  
               to parts of a firearm, frames and receivers specifically.   
               Who can determine what is 'irretrievably lost'?  This bill  
               requires reporting within five days of the time one should  
               have reasonably known of the firearm theft or loss.   
               'Reasonably known' cannot be defined, is ambiguous and  
               unclear.  Theft itself speaks to secretive, clandestine,  
               unknown, silent and unseen.  Additionally, this bill  








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               carries the language that allows local governments to pass  
               ordinances that differ from state law.  You will recall the  
               Governor's veto message of last year's SB 59 (Lowenthal),  
               where he termed the bill a 'maze' and a 'patchwork' of  
               differing and conflicting law dependent on the  
               jurisdiction, which would 'create compliance and  
               enforcement problems'.  'Problems,' the Governor went on to  
               say, 'that would erode the state's ability to be  
               effective'.  This bill makes the victim the criminal.  This  
               bill increases the already cumbersome and burdensome Penal  
               Code with questionable language.  This bill encourages  
               conflict of laws between cities and the State."

           9)Prior Legislation  :  SB 59 (Lowenthal), of the 2005-06  
            Legislative Session, would have created an infraction for any  
            person whose handgun is stolen or irretrievably lost who,  
            within five working days after his or her discovery or  
            knowledge, fails - or within five days after the date he or  
            she reasonably should have known of the theft or loss of the  
            handgun, fails - to report the theft or loss to local law  
            enforcement.  SB 59 was vetoed. 


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Two private citizens

           Opposition 

           California Association of Firearms Retailers
          California Rifle and Pistol Association
          California Sportsman's Lobby, Inc. 
          Crossroads of the West Gun Shows
          Gun Owners of California, Inc. 
          National Shooting Sports Foundation, Inc. 
          Outdoor Sportsmen's Coalition of California
          Safari Club International 
          Safari Club International Foundation
           
          Analysis Prepared by  :    Kimberly Horiuchi / PUB. S. / (916)  
          319-3744