BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 962
                                                                  Page  1

          Date of Hearing:   May 6, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

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

          Policy Committee:                              Public  
          SafetyVote:  5-2

          Urgency:     No                   State Mandated Local Program:   
          Yes    Reimbursable:              No

           SUMMARY  

          This bill establishes a handgun ammunition licensing requirement  
          and process. Beginning July 1, 2010, any person who sells or  
          transfers more than 50 rounds of handgun ammunition in any month  
          must be licensed as a handgun ammunition vendor by the  
          Department of Justice (DOJ), with specified exemptions for law  
          enforcement, government agencies, and family members.    
          Specifically, this bill:  

          1)Authorizes DOJ to issue handgun ammunition vendor licenses  
            (HAVL), valid for one year, authorizes DOJ to adopt  
            regulations and specified procedures, and requires DOJ to  
            maintain a centralized registry of all vendors.

          2)Authorizes DOJ to charge HAVL applicants a fee sufficient to  
            cover the costs of administering the HAVL program and  
            maintaining a registry of handgun ammunition vendors, though  
            the fee is limited to $50.

          3)Requires the DOJ to issue licenses and waive fees for  
            state-licensed gun dealers, federally licensed gun dealers, a  
            licensed target facility, gunsmiths, wholesalers, gun  
            manufacturers and importers, as specified.
           
          4)Requires information contained in the centralized registry of  
            handgun ammunition vendors to be available for law enforcement  
            purposes.  
           
          5)Requires a HAVL to prohibit an employee prevented by law from  
            possessing a gun from handling ammunition and requires every  
            employee of a vendor to obtain a certificate of eligibility  








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            (COE) from the DOJ.   
           
          6)Requires DOJ to permanently revoke the license of any vendor  
            that violates provisions relating to the sale or transfer of  
            ammunition three times.  

          7)Requires, beginning July 1, 2010, handgun ammunition sales,  
            with specified exemptions, to occur only in a face-to-face  
            transaction, with evidence of identity from the purchaser -  
            effectively prohibiting internet and mail order ammunition  
            sales. A violation is a misdemeanor.

          8)Prohibits, beginning July 1, 2010, an ammunition vendor from  
            selling or transferring handgun ammunition without recording  
            specified information on a form prescribed by the DOJ,  
            including the date; identification; type and amount of  
            ammunition purchased; the purchaser's signature; the name of  
            the salesperson who processed the sale or transaction; the  
            purchaser's thumbprint; the purchaser's residential address  
            and telephone number; and the purchaser's date of birth.

          9)Requires records of the sale or transfer of ammunition to be  
            maintained on the premises of the vendor for at least five  
            years for purposes of law enforcement inspection. A violation  
            is punishable as a misdemeanor.

          10)Makes the sale of ammunition to a person currently prohibited  
            by law from possessing ammunition or a gun a misdemeanor,  
            punishable by up to one year in the county jail and/or by a  
            fine of up to $1,000, and adds to the prohibited class any  
            person subject to an injunction for being a member of a  
            criminal street gang.   

           FISCAL EFFECT  

          In a preliminary estimate, DOJ projects first-year start-up  
          costs of $500,000, increasing to more than $2 million in 2010-11  
          and $1 million in 2011-12. DOJ indicates these costs would  
          eventually be covered by the $50 fee and employer payments to  
          DOJ for the cost of the COEs. 

           COMMENTS  

           1)Rationale  . The author's intent is to safeguard the sale of  
            ammunition to keep it out of the hands of persons who are not  








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            legally allowed to possess a gun.

           2)Support  . 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  
            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."

           3)Opposition  . 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.

          "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  








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            and mail order handgun ammunition sales."

           4)Suggested Amendments  . The author may wish to consider the  
            following amendments:

             a)   The bill requires  all  employees of a vendor to obtain a  
               certificate of eligibility (COE) from DOJ. This requirement  
               should be limited to employees who will deal with  
               ammunition.

             b)   The author may wish to include or cross reference  
               additional predicate offenses - possession of a concealed  
               weapon or an assault weapon - for prohibiting subsequent  
               gun or ammunition possession as proposed in AB 1498 (De  
               Leon), which is also before the committee today.

             c)   A COE deadline of August 15, 2009 should be 2010.

           5)Current law  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).]

           6)Prior Legislation  . AB 2062 (De Leon, 2008), required that any  
            person who sells or transfers more than 50 rounds of handgun  
            ammunition in any month to register as a handgun ammunition  
            vendor, and required purchasers to obtain a handgun ammunition  
            purchase permit. AB 2062 was held in Senate Appropriations.   
            Committee's Suspense File.


           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081