BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 962
                                                                  Page  1

          Date of Hearing:   April 21, 2009
          Chief Counsel:      Gregory Pagan


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Jose Solorio, Chair

                 AB 962 (De Leon) - As Introduced:  February 26, 2009


           SUMMARY  :   Requires, commencing July 1, 2010, that any person  
          that sells or transfers more than 50 rounds of handgun  
          ammunition in any month to register as a handgun ammunition  
          vendor.   Specifically,  this bill  :  

          1)Provides that commencing July 1, 2009, no person shall sell or  
            transfer ownership of more than 50 rounds of handgun  
            ammunition in any month unless the person is licensed by the  
            Department of Justice (DOJ) as a licensed handgun ammunition  
            vendor, as specified.

          2)Exempts the sale and transfer of ownership of handgun  
            ammunition by manufacturers or wholesalers to licensed  
            vendors.

          3)Exempts sales or transfers of ownership of handgun ammunition  
            made by an authorized law enforcement representative of a  
            federal, state or local agency to a peace officer authorized  
            to carry a handgun in the course and scope of his or her  
            duties.

          4)Exempts the sale or transfer of ownership of handgun  
            ammunition to representatives of a federal, state, or local  
            agency, if written authorization by the head of the agency  
            authorizing the transaction, is presented to the vendor of  
            handgun ammunition.

          5)Exempts the sale or transfer of ownership of handgun  
            ammunition state and local entities in which the entity is  
            acquiring the ammunition as part of an authorized program in  
            which the entity is buying or receiving ammunition from  
            private individuals.

          6)Exempts the sale or transfer of ownership of handgun  
            ammunition between immediate family members, spouses, or  








                                                                  AB 962
                                                                  Page  2

            registered domestic partners.

          7)Provides that a violation of provisions relating to the sale  
            and transfer of handgun ammunition is a misdemeanor.

          8)Authorizes the DOJ to issue handgun ammunition vendor  
            licenses.

          9)Provides that no ammunition handgun vendor license may be  
            issued to an applicant who fails to provide a copy of any  
            required local business license, a seller's permit, a federal  
            firearms license if the person is federally licensed, and a  
            certificate of eligibility.  The handgun ammunition vendor's  
            license shall be issued for a specific physical location where  
            the sale or transfer of ownership of handgun ammunition is to  
            be conducted.

          10)Requires the DOJ to inform applicants who are denied licenses  
            of the reason for the denial in writing.

          11)Requires the handgun ammunition vendor license to be issued  
            in a form prescribed by the Attorney General (AG) and shall be  
            valid for a period of one year, and authorizes the AG to adopt  
            regulations to administer application procedures and  
            procedures for licensees

          12)Allows the DOJ to charge handgun ammunition vendors license  
            applicants a fee sufficient for the costs or reimbursing the  
            DOJ for the cost of administering the handgun license program,  
            maintaining the registry of handgun ammunition vendors, and  
            necessary regulatory functions, including enforcement,  
            provided that the fee shall not exceed $50.

          13)Requires the DOJ to issue licenses and waive fees for the  
            following applicants:

             a)   State-licensed firearms dealers.

             b)   Federally licensed firearms dealers.

             c)   A target facility which holds a business or regulatory  
               license.

             d)   Gunsmiths.









                                                                  AB 962
                                                                  Page  3

             e)   Wholesalers.

             f)   Manufacturers or importers of firearms, as specified.

          14)Requires the DOJ to keep a centralized registry of all  
            persons, businesses, and corporations who are vendors, and  
            provides that the DOJ may remove any vendor from the registry  
            who violates any provisions relating to the transfer and sale  
            of handgun ammunition.

          15)Provides that the license of any vendor that violates  
            provisions relating to the sale or transfer of ammunition  
            three times shall be permanently revoked, and notice of the  
            revocation shall be provided to local law enforcement and  
            licensing authorities in the jurisdiction where the vendor's  
            business is located.

          16)States that information contained in the centralized registry  
            of handgun ammunition vendors shall be made available for law  
            enforcement purposes, or when the information is requested for  
            the purpose of determining the validity of handgun ammunition  
            deliveries. 

          17)\Provides that a handgun ammunition vendor shall comply with  
            all of the following conditions, requirements and  
            prohibitions:

             a)   A vendor shall not permit an employee who is prohibited  
               from possessing a firearm, or has been assessed as a danger  
               to his or her self or others, to handle ammunition in the  
               scope of his or her employment.

             b)   Requires an employee of a vendor, who becomes an  
               employee after July 1, 2010, to obtain a certificate of  
               eligibility from the DOJ and the request must be made  
               within 45 days of employing the individual.

             c)   Requires an employee of a vendor who becomes an employee  
               on or before July 1, 2010 to obtain a certificate of  
               eligibility from the DOJ no later than August 15, 2009

          17)Commencing July 1, 2010, a vendor of handgun ammunition shall  
            not sell or transfer ownership of any handgun ammunition in a  
            manner that allows that ammunition to be accessible to a  
            purchaser without the assistance of the vendor or employee  








                                                                  AB 962
                                                                  Page  4

            thereof.  

          18)Provides that commencing July 1, 2010, a vendor of handgun  
            ammunition shall not sell or transfer handgun ammunition  
            without at the time of purchase legibly recording the  
            following information on a form prescribed by the DOJ:

             a)   The date of the transaction.

             b)   The transferee's driver's license or other  
               identification number and the state in which it was issued.

             c)   The brand, type, and amount of ammunition transferred.

             d)   The purchaser or transferee's signature.

             e)   The name of the salesperson who processed the sale or  
               transaction.

             f)   The right thumbprint of the purchaser or transferee on  
               the prescribed form.

             g)   The purchaser's or transferee's full residential address  
               and telephone number.

             h)    The purchaser's or transferee's date of birth.

          19)Commencing July 1, 2010, the records of the sale or transfer  
            of handgun ammunition shall be maintained on the premises of  
            the vendor for at least five years from the date of the  
            recorded transfer.

          20)Commencing July 1, 2010, the handgun ammunition vendor's  
            records of sale shall be subject to inspection by specified  
            peace officers engaged in an investigation where the records  
            may be relevant, is seeking information about prohibited  
            persons, or is engaged in ensuring compliance with laws  
            relating to firearms or ammunition.

          21)Commencing July 1, 2010, a handgun ammunition vendor shall  
            not knowingly make a false entry in, fail to make a required  
            entry in, fail to obtain the required thumbprint, or otherwise  
            fail to maintain the records of handgun ammunition transfers  
            or sales.









                                                                  AB 962
                                                                  Page  5

          22)Commencing July 1, 2010, no vendor shall refuse to permit  
            specified peace officers to examine any record related to the  
            transfer or sale of handgun ammunition, or refuse to permit  
            the use of these record by those persons.

          23)Exempts from providing specified information at the time of  
            purchase or transfer of ownership of handgun ammunition by  
            licensed handgun ammunition vendors  to any of the following  
            who are properly identified in a manner prescribed by the DOJ:  


             a)   A licensed firearms dealers.

             b)   A licensed handgun ammunition vendor.

             c)   A federally licensed firearms dealer.

             d)   A target facility which holds a business or regulatory  
               license.

             e)   Gunsmiths.

             f)   Wholesalers.

             g)   Manufacturers or importers of firearms, as specified.

             h)   Sales or transfers of ownership of handgun ammunition  
               made to authorized law enforcement representatives if  
               written authorization from the employing the agency is  
               presented to the person from whom the purchase is being  
               made.

             i)    Sales or transfers of ownership of handgun ammunition  
               by licensed handgun ammunition vendors to sworn peace  
               officers, as specified.

          24)Provides that specified violations relating to the  
            maintenance of records of handgun ammunition transfers or  
            sales shall be punished as a misdemeanor.

          25)Makes it a misdemeanor for any person who is subject to an  
            injunction for being a member of a criminal street gang to  
            own, possess, or have under his or her custody or control, any  
            ammunition or reloaded ammunition.









                                                                  AB 962
                                                                  Page  6

          26)Provides that a sale of any ammunition by a person,  
            corporation or firm to a person prohibited from owning or  
            possessing ammunition, or to a person he or she reasonably  
            should know is a prohibited person, is punishable by up to one  
            year in the county jail, by a fine not to exceed $1,000, or  
            both.

          27)Provides that commencing July 1, 2010, the sale or transfer  
            of handgun ammunition may only occur in a face-to-face  
            transaction with the seller or transferor being provided with  
            bona fide evidence of identity from the purchaser, and a  
            violation of this provision is a misdemeanor.

          28)Defines "bona fide evidence of identity" as a document issued  
            by a federal, state, county, or municipal government, or  
            agency thereof, including, but not limited to, a motor vehicle  
            operator's license, California state identification card,  
            identification card issued to a member of the armed forces, or  
            other form of identification that bears the name, date of  
            birth, description, and picture of the person.

          29)Defines "handgun ammunition" as ammunition principally for  
            use in pistols, revolvers, and other firearms capable of being  
            concealed upon the person, as defined, notwithstanding that  
            the ammunition may also be used in some rifles, but excluding  
            ammunition intended to be used in antique firearms.  Handgun  
            ammunition does not include blanks used in prop weapons. 

          30)Provides that the face-to-face requirement shall not apply to  
            the delivery of ammunition to law enforcement agencies, sworn  
            peace officers, importers and manufacturers of firearms,  
            licensed ammunition vendors, licensed firearms dealers or  
            collectors, and consultant evaluators as specified.

           EXISTING LAW  :

          1)Provides that no person prohibited from owning or possessing a  
            firearm under specified provisions of law shall have under his  
            or her custody or control any ammunition or reloaded  
            ammunition and violation of this provision is an alternate  
            felony/misdemeanor.  [Penal Code Section 12316(b)(1).]

          2)Defines "ammunition" to include, but not be limited to, any  
            bullet, cartridge, magazine, clip, speed loader, autoloader,  
            or projectile capable of being fired from a firearm with a  








                                                                  AB 962
                                                                  Page  7

            deadly consequence.  [Penal Code Section 12316(b).]

          3)Provides that for the purposes of provisions relating to the  
            sale or possession of ammunition, "ammunition" includes, but  
            is not limited to, any bullet, cartridge, magazine, clip,  
            speed loader, autoloader, or projectile capable of being fired  
            from a firearm with a deadly consequence.  [Penal Code Section  
            12316(b)(2).]

          4)Provides that proof that a person, corporation, or dealer, or  
            his or her agent or employee, demanded, was shown, and acted  
            in reasonable reliance upon, bona fide evidence of majority  
            and identity shall be a defense to any criminal prosecution  
            under this law.  [Penal Code Section 12316(a)(2).]

          5)Defines "bona fide evidence of majority and identity" as a  
            document issued by a federal, state, county, or municipal  
            government, or agency thereof, including, but not limited to,  
            a motor vehicle operator's license, California state  
            identification card, identification card issued to a member of  
            the armed forces, or other form of identification that bears  
            the name, date of birth, description, and picture of the  
            person.  [Penal Code Section 12316(a)(2).]

          6)Defines relevant federal law as:  "It shall be unlawful for  
            any licensed importer, licensed manufacturer, licensed dealer,  
            or licensed collector to sell or deliver - any firearm or  
            ammunition to any individual who the licensee knows or has  
            reasonable cause to believe is less than 18 years of age and,  
            if the firearm or ammunition is other than a shotgun or rifle,  
            or ammunition for a shotgun or rifle, to any individual who  
            the licensee knows or has reasonable cause to believe is less  
            than 21 years of age . . . . "  [18 United States Code Service  
            922(b)(1).]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Author's Statement  :  According to the author, "AB 962 the  
            Protection Act of 2009 seeks to safeguard California's  
            communities by combating the easy accessibility to handgun  
            ammunition that fuels gun violence and criminal activity."

           2)Sacramento Ammunition Sales Log Ordinance  :  In August 2007,  








                                                                  AB 962
                                                                  Page  8

            the City of Sacramento passed an ordinance similar to the  
            ammunition tracking provisions contained in this bill.  The  
            ordinance requires that at the time of the purchase of  
            ammunition, the seller obtain the name, address, and date of  
            birth of the purchaser, the brand, type and amount of  
            ammunition purchased, the purchaser's signature, the name of  
            the salesperson, the right thumbprint of the purchaser, and  
            the transfer date and time of the purchase.

          According to the Sacramento Police Department, from January 16,  
            2008 to December 31, 2008, 156 prohibited persons purchased  
            ammunition.  One hundred and twenty four of these individuals  
            had prior felony convictions, thirty-one had prior misdemeanor  
            convictions, and six were subject to a domestic violence  
            restraining order.  One hundred and nine persons were charged  
            with felonies, three were charged with misdemeanors, and ten  
            were federally indicted.  Only seven cases were rejected, and  
            37 more are still being actively investigated.

          Thirty-six cases have resulted in felony convictions, and 17  
            have resulted in misdemeanor convictions.  There have been two  
            cases resolved in federal court, with an average sentence of  
            37 months.

          As a result of the investigations generated by the ammunition  
            sale records, 48 search warrants were issued and 26 probation  
            and parole searches were conducted.  In 70% of the searches  
            either firearms or ammunition were located.  There were  
            illegal 84 firearms seized and a substantial amount of illegal  
            drugs, stolen property and cash.

           3)Arguments in Support  :

             a)   According to the  California Chapters of the Brady  
               Campaign  , "Assembly Bill 962 seeks to reduce gun violence  
               by ensuring that sellers of handgun ammunition are  
               legitimate, regulated businesses required to follow  
               procedures to deter illegal acquisition of handgun  
               ammunition.  The bill would specifically prohibit known  
               gang members from possessing ammunition and make it  
               unlawful to sell or furnish ammunition to any person known  
               to be prohibited from possessing ammunition

             "Assembly Bill 962 would require those engaged in the sale of  
               more than 50 rounds of handgun ammunition to acquire a  








                                                                  AB 962
                                                                  Page  9

               vendor's license by July, 2010.  In addition to the vendor,  
               all employees who handle ammunition would be required to  
               pass a criminal background check.  To discourage  
               shoplifting, handgun ammunition would have to be stored  
               behind sales counters, a practice already common among  
               reputable retail outlets.  Finally, ammunition sales would  
               have to take place in face to face transactions, thereby  
               eliminating direct internet or mail order sales."

             b)   According to  Sacramento City Council Member Kevin  
               McCarty  , "In August of 2007, in partnership with the  
               Sacramento Police Department, the City of Sacramento passed  
               an ordinance tracking ammunition sales to detect purchases  
               by persons legally prohibited from buying ammunition.  This  
               ordinance tracks ammunition sales, ensures that only legal  
               age persons may purchase ammunition, and detects purchases  
               by persons legally prohibited from buying ammunition.  A  
               year and a half later, the adoption of this ordinance has  
               been hailed by our Chief of Police as a successful crime  
               fighting tool.  As a direct result of this ordinance, 28  
               search warrants were executed yielding 56 gun seizures and  
               in excess of 800 rounds of illegal ammunition.  Of the  
               people that were prohibited from purchasing ammunition, 80%  
               (93) had felony convictions, 16% (12) had misdemeanor  
               convictions, and 34% (21) prohibited because of violent  
               felonies.  These statistics are tangible evidence of the  
               effectiveness of this measure."

           4)Arguments in Opposition  :

             a)   According to the  National Rifle Association  , "The  
               proponents of AB 962 claim that new legislation is needed  
               to stop the transfer of handgun ammunition to criminals.   
               In California, the transfer of ammunition to a prohibited  
               person is a crime and the possession of ammunition by a  
               prohibited person is a crime.

             "A provision of AB 962 would resurrect a Federal Government  
               program of ammunition sales registration at the point of  
               purchase that was repealed due to the lack of  
               effectiveness.  The purchaser registration requirement  
               would expose consumers to possible identity theft problems  
               with sensitive personal information being required to be  
               given to retail businesses.









                                                                  AB 962
                                                                  Page  10

             "A provision of AB 962 would ban the sale/transfer of more  
               than 50 handgun cartridges between persons could expose  
               citizens into committing crimes for simply sharing  
               ammunition with their friends at competitions and students  
               in training classes.

             "A provision of AB 962 that a handgun ammunition vendor  
               permit does not allow the licensed vendor to transfer  
               handgun ammunition at any location except the address  
               listed on the permit, would ban the sale of ammunition at  
               gun shows and expositions.

             "A provision of AB 962 to only allow the face-to-face  
               transfer/sales of handgun ammunition would ban all Internet  
               and mail order handgun ammunition sales."

             b)   According to the  California Rifle and Pistol Association   
               (CRPA), "AB 962 would require the registration of handgun  
               ammunition sales, including a thumbprint of the buyer and  
               other personal information, plus the type and amount of  
               ammunition purchased.  The register would be completed and  
               kept by the ammunition retailer on the premises for a  
               period of five years.

             "According to the bills proponents, this would somehow help  
               solve crimes.  However, it would not do so because  
               criminals have other sources of ammunition and would not  
               need to purchase it from California retailers who are  
               required to register their sales.

             "The bill would also require that any seller who sells more  
               than 50 rounds of handgun ammunition per month be licensed  
               by the DOJ as a handgun ammunition vendor.  This would be  
               costly for the retailer and could cause some vendors who do  
               not sell large volume of handgun ammunition to simply stop  
               selling it.  For most handgun ammunition, fifty rounds  
               constitute just a single box.  CRPA opposes the unnecessary  
               burdens on retailers that AB 962 would impose and the  
               subsequent loss of places where its members could purchase  
               ammunition.

             "The Federal Gun Control Act of 1968 was revised in the  
               mid-1980's to remove the Acts requirement that Federal  
               Firearms License holders keep a similar record of all  
               ammunition sales.  The Federal Bureau of Alcohol, Tobacco  








                                                                  AB 962
                                                                  Page  11

               and Firearms (ATF) reported that keeping records of  
               ammunition sales proved not to be an effective law  
               enforcement tool.

             "There is no valid reason to believe that mandating the  
               keeping of records of ammunition sales at the state level,  
               as proposed in AB 962, would be an effective crime fighting  
               tool, either.  It has already been tried nationally and has  
               been proven not to be effective.

             "The bill would further mandate that retailers display  
               handgun ammunition in a manner that prevents customers from  
               having access to it without the assistance of the retailer  
               or a retailer's employee.  This would make comparison  
               shopping by customers extremely difficult, if not  
               impossible.

             "Most retailers report that they are not equipped to comply  
               with this provision of AB 962.  Retailers state that they  
               do not have a problem of ammunition theft from displays  
               where customers can have access to it without the  
               assistance of a sales person.  The bill would only create  
                                                an unnecessary burden for them.  Most are small businesses.

             "AB 962 would also do away with all internet and mail order  
               handgun ammunition sales by requiring that all sales  
               transactions be made in person "face to face".  This would  
               create an impossible situation for many who participate in  
               the shooting sports because they need specialty ammunition  
               for reloading components that are not stocked by local  
               stores that sell ammunition.  From a retailer's point of  
               view, the market for specialty ammunition components is so  
               small that they cannot afford to keep it in stock."

           5)Prior Legislation  :    AB 2062 (De Leon), of the 2007-08  
            Legislative Session, would have required that any person that  
            sells or transfers more than 50 rounds of handgun ammunition  
            in any month to register as a handgun ammunition vendor, and  
            required any person 21 years of age or older to obtain a  
            handgun ammunition purchase permit.  AB 2062 was held on the  
            Senate Appropriations Committee's Suspense File.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








                                                                 AB 962
                                                                  Page  12

           
          Brady Campaign to Prevent Gun Violence,
            Alameda County/Oakland Chapter
          Brady Campaign to Prevent Gun Violence,
            Contra Costa County Chapter
          Brady Campaign to Prevent Gun Violence,
            Long Beach Chapter
          Brady Campaign to Prevent Gun Violence,
            Los Angeles Chapter
          Brady Campaign to Prevent Gun Violence,
            Nevada County Chapter
          Brady Campaign to Prevent Gun Violence,
            Orange County Chapter
          Brady Campaign to Prevent Gun Violence,
            Sacramento Valley Chapter
          Brady Campaign to Prevent Gun Violence, 
            Sonoma County Chapter
          Brady Campaign to Prevent Gun Violence,
            Ventura County Chapter
          Brady Campaign to Prevent Gun Violence,
            West Contra Costa County Chapter
          California Chapters of the Brady Campaign
          City of Sacramento 
          City of Healdsburg
          City of Los Angeles 
          City of Oakland
          City of Sacramento
          Coalition Against Gun Violence
          Friends Committee on Legislation 
          Kevin McCarty, Sacramento City Councilmember
          Legal Community on Against Violence
          Los Angeles County Sheriff's Department
          Violence Prevention Coalition of Orange County
          Youth Alive
          Women Against Gun Violence

           Opposition 
           
          California Association of Firearms Retailers
          California Outdoor Heritage Alliance
          California Public Defenders Association
          California Rifle and Pistol Association
          California Sportsman's Lobby
          Crossroads of the West Gunshows
          Gun Owners of California








                                                                  AB 962
                                                                  Page  13

          National Rife Association
          National Shooting Sports Foundation, Inc.
          Outdoor Sportsmen's Coalition of California
          Safari Club International
          636 private individuals
           
          Analysis Prepared by  :    Gregory Pagan / PUB. S. / (916)  
          319-3744