BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 175|
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                                 THIRD READING


          Bill No:  SB 175
          Author:   Aanestad (R)
          Amended:  5/13/09
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 4/28/09
          AYES:  Leno, Benoit, Cedillo, Hancock, Huff, Steinberg,  
            Wright

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Firearms

           SOURCE  :     Pete Mazur Restoration


           DIGEST  :    This bill:  (1) clarifies that delivery of a  
          firearm to a gunsmith for service or repair is exempted  
          from the California Federal Firearms License (CFFL)  
          licensing verification requirements, as specified; (2)  
          eliminates the existing exemption from the FFL licensing  
          verification requirements transfers of short-barreled  
          rifles, short-barreled shotguns, shotguns, machineguns and  
          assault weapons, as defined; (3) exempts from the CFFL  
          licensing verification requirements transfers of firearms  
          where the transferor and the transferee are the same person  
          or corporation; and (4) exempts from the CFFL licensing  
          verification requirements transfers of firearms to or from  
          a person who has a valid entertainment firearms permit, and  
          the transfer involves the loan or return of firearms used  
          solely as props in television, film, or theatrical  
                                                           CONTINUED





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          productions.

           ANALYSIS  :    Existing federal law:

          1.Requires that firearms manufacturers, wholesalers and  
            dealers possess a Federal Firearms License (FFL) issued  
            by the Secretary of the Treasury.  (Title 18 U.S.C.   
            923.)

          2.Generally requires that before an FFL holder can ship or  
            deliver a firearm to an out-of-state or in-state source,  
            the recipient be an FFL holder as well.  (18 U.S.C.   
            922.)

          Existing California law:

          1. Defines a "gunsmith" as any person who is licensed as a  
             dealer pursuant to Chapter 44 (commencing with Section  
             921) of Title 18 of the United States Code and the  
             regulations issued pursuant thereto, who is engaged  
             primarily in the business of repairing firearms, or  
             making or fitting special barrels, stocks, or trigger  
             mechanisms to firearms, or the agent or employee of that  
             person.  (Penal Code  12001(r).)

          2. Requires that persons who sell, lease, or transfer  
             firearms be licensed by California.  (Penal Code   
             12070 and 12071.)

          3. Sets forth a series of requirements to be state licensed  
             by Department of Justice (DOJ), which provides that to  
             be recognized as state licensed, a person must be on a  
             centralized list of firearms dealers (CLFD) and allows  
             access to the centralized list by authorized persons for  
             various reasons.  (Penal Code  12071.)

          4. Authorizes DOJ to charge a fee up to $115 to be on the  
             centralized list and allows these funds to be used to  
             finance DOJ compliance efforts.  (Penal Code   
             12071(f).)

          5. Provides that revocation of a license will result where  
             a person fails to comply with numerous requirements,  
             including conducting background checks prior to delivery  







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             of firearms, assisting in the registration of handguns,  
             processing private-party firearms transactions, keeping  
             extensive records and submitting the same to DOJ, and  
             making those records available for law enforcement  
             inspection.  (Penal Code  12071, 12072 and 12082.)

          6. Exempts certain persons including, but not limited to,  
             law enforcement, beneficiaries of an inheritance, and  
             those who are loaned a firearm, as specified, from the  
             state dealer licensing requirements.  (Penal Code   
             12070(b).)

          7. Requires all sales, loans, and transfers of firearms to  
             be processed through or by a state-licensed firearms  
             dealer or a local law enforcement agency.  (Penal Code   
             12072(d).)

          8. Provides that there is a 10-day waiting period when  
             purchasing a handgun through a firearms dealer.  During  
             which time, a background check is conducted and a  
             handgun safety certificate is required prior to delivery  
             of the firearm.  (Penal Code  12071 and 12072.)

          9. Provides exemptions for commercial-wholesale  
             transactions from the rules on the sales of firearms and  
             the waiting period.  

          10.Requires a person moving to California with a handgun  
             acquired outside California and who did not receive the  
             gun from a California-licensed gun dealer to register  
             the gun with DOJ.  (Penal Code  12072(f)(2).)

          11.Authorizes the DOJ, commencing January 1, 2008, to keep  
             a centralized list of persons who identify themselves as  
             being an FFL holder with a DOJ exemption from the  
             firearms dealer licensing requirements, as specified.   
             This list is known as the centralized list of exempt  
             FFLs (CLEFFLs).  (Penal Code  12083(a).)

          12.States in order to qualify for placement on the CLEFFL,  
             an applicant must do all of the following:

                  A.        Possess a valid FFL as a dealer, importer  
                    or manufacturer;







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                  B.        Possess a current, valid certificate of  
                    eligibility, as specified; and,
                  C.        Maintain with the DOJ a signed  
                    declaration enumerating the applicant's statutory  
                    exemption from the licensing requirements.  Any  
                    person who furnishes false information is guilty  
                    of a misdemeanor.  (Penal Code  12083(a).)

          13.Provides the DOJ, commencing January 1, 2008, shall  
             assess an annual fee of $115 from FFL holders who wish  
             to be on the CLEFFL to cover the costs of maintaining  
             the CLEFFL and the cost of maintaining the firearm  
             shipment verification number, as specified.  The DOJ may  
             increase the fee at a rate not to exceed the increase in  
             the California Consumer Price Index.

          14.Provides that, with respect to transfers from any FFL  
             holder to a California FFL holder: commencing July 1,  
             2008, a person who is an FFL holder may not deliver,  
             sell, or transfer a firearm to another FFL holder in  
             California unless, prior to delivery, the person  
             intending to deliver, sell, or transfer the firearm  
             obtains a verification number via the Internet for the  
             intended delivery, sale, or transfer, from the  
             department.  This shall not apply to the delivery, sale,  
             or transfer of a short-barreled rifle, or short-barreled  
             shotgun, as defined in Section 12020, or to a machinegun  
             as defined in Section 12200, or to an assault weapon as  
             defined in Sections 12276, 12276.1, and 12276.5.  (Penal  
             Code  12072(f)(1)(A).)

          15.For every identification number request received  
             pursuant to this section, the department shall determine  
             whether the intended recipient is on either:

                  A.        The centralized list of firearms dealers  
                    (CLFD) (Penal Code  12071);  

                  B.        The centralized list of exempted federal  
                    firearms licensees (CLEFFL) (Penal Code   
                    12083(a)); or 

                  C.        The centralized list of firearms  
                    manufacturers (CLFM), (Penal Code  12086(f).).   







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                    (Penal Code  12072(f)(1)(B).)

          16.If the department finds that the intended recipient is  
             on one of these lists, the department shall issue to the  
             inquiring party, a unique identification number for the  
             intended delivery, sale, or transfer.  In addition to  
             the unique verification number, the department may  
             provide to the inquiring party information necessary for  
             determining the eligibility of the intended recipient to  
             receive the firearm.  The person intending to deliver,  
             sell, or transfer the firearm shall provide the unique  
             verification number to the recipient along with the  
             firearm upon delivery, in a manner to be determined by  
             the department.  (Penal Code  12072(f)(1)(C).)

          17.If the department finds that the intended recipient is  
             not on one of these lists, the department shall notify  
             the inquiring party that the intended recipient is  
             ineligible to receive the firearm.  (Penal Code   
             12072(f)(1)(D).)

          18.The department shall prescribe the manner in which the  
             verification numbers may be requested via the Internet,  
             or by alternate means of communication, such as by  
             facsimile or telephone, including all required  
             enrollment information and procedures.  (Penal Code   
             12072(f)(1)(E).)

          19.Prohibits federal firearms dealers from importing or  
             receiving firearms from any source unless listed on the  
             CLEFFL, the CLFD or the CLFM.  Doing so constitutes a  
             misdemeanor. 

          20.Defines "wholesaler" and allows a wholesaler to engage  
             in various commercial activities without having his or  
             her activities subject to state dealer licensing and  
             dealer requirements.  (Penal Code  12001, 12070,  
             12073, and 12078.)

          21.Allows a gunsmith to engage in various commercial  
             activities relating to servicing and repairing firearms  
             without having his or her activities subject to state  
             dealer licensing or "through dealer" processing.  (Penal  
             Code  12073 and 12078.)







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          This bill clarifies that delivery of a firearm to a  
          gunsmith for service or repair is exempted from the FFL  
          licensing verification requirements described above.

          This bill eliminates the exemption for transfers of  
          short-barreled rifles, short-barreled shotguns, shotguns,  
          machineguns and assault weapons, as defined from the FFL  
          licensing verification requirements described above.  As  
          such, these transactions will now be verified for their  
          legality under current California law.

          This bill exempts transfers of firearms where the  
          transferor and the transferee are the same person or  
          corporation from the FFL licensing verification  
          requirements described above.

          This bill exempts transfers of firearms to or from a person  
          who has a valid entertainment firearms permit and the  
          transfer involves the loan or return of firearms used  
          solely as props in television, film, or theatrical  
          productions from the FFL licensing verification  
          requirements described above.

           Prior Legislation  

          AB 482 (Peace), Chapter 23, Statutes of 1994
          AB 2080 (Steinberg), Chapter 909, Statutes of 2002
          AB 2521 (Jones), Chapter 784, Statutes of 2006

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/20/09)

          Pete Mazur Restoration (Source)
          California Association of Firearms Retailers
          California Rifle and Pistol Association
          Department of Justice
          National Shooting Sports Foundation


           ARGUMENTS IN SUPPORT  :    According to the author's office:








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               SB 175 is one of three bills making several technical  
               changes to improve and make more efficient the firearm  
               verification-transaction systems in California,  
               created by AB 2521 in 2006.

               This bill addresses a number of problems associated  
               with the program's implementation.

               SB 175 first and foremost addresses a 'gunsmith' issue  
               by assuring that gunsmiths can go on the state's  
               centralized verification list so that they can  
               continue to conduct business in California.  The bill  
               creates a fast track means of verification while  
               ensuring their records remain subject to DOJ  
               inspection.

               In addition, the legislation contains other provisions  
               that improve the program - all of which were  
               recommended by the Attorney General's office. One of  
               the major provisions is that the legislation will  
               assure that shipments of restricted weapons such as  
               machineguns, assault weapons, .50 BMG rifles, short  
               barreled rifles and shotguns, and firearms that are  
               destructive devices will be verified. At the time  
               California enacted this Federal Firearms Licensee  
               verification program, it inadvertently exempted from  
               the verification requirements the delivery, sale, or  
               transfer of short-barreled rifles, or short-barreled  
               shotguns, machineguns, and assault weapons.

               In the Appropriations Committee, the bill was amended  
               to remove, at the Department of Justice's request,  
               language on how restricted weapons shipments would be  
               specifically verified, leaving the mechanics of that  
               process to the Department.  Current law's exemption  
               from verification of these weapons is still being  
               repealed in SB 175 so verification will occur - but it  
               will be up to DOJ to develop an internal procedure to  
               do this.


          RJG:nl  5/20/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE







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