BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 175|
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                              UNFINISHED BUSINESS


          Bill No:  SB 175
          Author:   Aanestad (R)
          Amended:  8/24/09
          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

           SENATE FLOOR  :  39-0, 5/26/09 (Consent)
          AYES:  Aanestad, Alquist, Ashburn, Benoit, Calderon,  
            Cedillo, Cogdill, Corbett, Correa, Cox, Denham,  
            DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman,  
            Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal,  
            Maldonado, Negrete McLeod, Oropeza, Padilla, Pavley,  
            Romero, Runner, Simitian, Steinberg, Strickland, Walters,  
            Wiggins, Wolk, Wright, Wyland, Yee

           ASSEMBLY FLOOR  : 74-0, 08/27/09 (Consent) - See last page  
            for vote


           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)  
                                                           CONTINUED





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          licensing verification requirements, as specified; (2)  
          clarifies that delivery of a firearm by a gunsmith to  
          another federal firearms licensee for service or repair and  
          the return (warranty work) is exempted from the CFFL  
          licensing verification requirements, as specified;(3)  
          clarifies the interaction between various Department of  
          Justice licensing programs; (4) 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; (5) exempts from the CFFL licensing verification  
          requirements transfers of firearms where the transferor and  
          the transferee are the same person or corporation; and (6)  
          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 productions.
           
           Assembly Amendments  :  (1)  delete references in Penal Code  
          Section 12083 to a federal licensing category that does not  
          exist, (2) clarifies the interaction of licensing  
          requirements for various categories of firearms licensees  
          licensed by the Department of Justice to avoid duplicative  
          licensing requirements, (3) clarifies that specialized  
          Department of Justice (DOJ) licenses can be on the  
          centralized list to assure that shipments of restricted  
          weapons to them are subject to verification, (4) clarifies  
          that persons possessing specified DOJ firearms permits who  
          are on the centralized list are not subject to dual fee  
          assessments, (5) adds to the list of exempted entities from  
          the purchase of one handgun with any 30 day period,  
          community colleges that are certified by the Commission of  
          Peace Officer Standards and Training to present the law  
          enforcement academy basic course or other  
          commission-certified law enforcement training, (6)  
          incorporates into the bill the amendments made to Penal  
          Code  12072 made by AB 1286 (Huber), Chapter 144, Statutes  
          of 2009, and (7) inserts chaptering amendments to Penal  
          Code Section 12078 to avoid chaptering out SB 41  
          (Lowenthal).

           ANALYSIS  :    Existing federal law:








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          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 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 of firearms, assisting in the  
               registration of handguns, processing private-party  
               firearms transactions, keeping extensive records and  







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               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 CLFD (Penal Code  12071);  

                  B.        The CLEFFL (Penal Code  12083(a)); or 

                  C.        The centralized list of firearms  
                    manufacturers (CLFM), (Penal Code  12086(f).).   
                    (Penal Code  12072(f)(1)(B).)

           16.  If the department finds that the intended recipient  







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               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.)

          This bill clarifies that delivery of a firearm to a  







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          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.

          Existing law provides that no person shall make an  
          application to purchase more than one handgun within any  
          30-day period.  Existing law also exempts various entities  
          from this restriction. 

          This bill adds to the list of exempted entities community  
          colleges that are certified by the Commission on Peace  
          Officer Standards and Training to present the law  
          enforcement academy basic course or other  
          commission-certified law enforcement training.

           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  8/27/09)








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          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:

               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  







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               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.


           ASSEMBLY FLOOR  :  
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,  
            Hagman, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Ruskin, Salas, Silva, Skinner, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada
          NO VOTE RECORDED:  Evans, Fuentes, Hall, Saldana, Bass


          RJG:nl  8/28/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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