BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 819
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          Date of Hearing:   June 21, 2011
          Counsel:        Gabriel Caswell


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                     SB 819 (Leno) - As Amended:  April 14, 2011


           SUMMARY  :   Provides that the Department of Justice (DOJ) may use 
          dealer record of sale (DROS) funds for costs associated with its 
          firearms-related regulatory and enforcement activities regarding 
          the possession, as well as the sale, purchase, loan, or 
          transfer, of firearms, as specified.  Specifically,  this bill  :

          1)Authorizes the using the DOJ purchaser fee to fund the DOJ's 
            firearms-related regulatory and enforcement activities related 
            to the possession of firearms.  

          2)Makes the following findings and declarations:  

             a)   California is the first and only state in the nation to 
               establish an automated system for tracking handgun and 
               assault weapon owners who might fall into a prohibited 
               status.

             b)   DOJ is required to maintain an online database, which is 
               currently known as the "Armed Prohibited Persons System" 
               (APPS), which cross-references all handgun and assault 
               weapon owners across the state against criminal history 
               records to determine persons who have been, or will become, 
               prohibited from possessing a firearm subsequent to the 
               legal acquisition or registration of a firearm or assault 
               weapon.

             c)   The DOJ is further required to provide authorized law 
               enforcement agencies with inquiry capabilities and 
               investigative assistance to determine the prohibition 
               status of a person of interest.

             d)   Each day, the list of armed prohibited persons in 
               California increases by about 15 to 20 people.  There are 
               currently more than 18,000 armed prohibited persons in 
               California. Collectively, these individuals are believed to 








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               be in possession of over 34,000 handguns and 1,590 assault 
               weapons.  The illegal possession of these firearms presents 
               a substantial danger to public safety.

             e)   Neither the DOJ nor local law enforcement has sufficient 
               resources to confiscate the enormous backlog of weapons, 
               nor can they keep up with the daily influx of newly 
               prohibited persons.

             f)   A DROS fee is imposed upon every sale or transfer of a 
               firearm by a dealer in California.  Existing law authorizes 
               the DOJ to utilize these funds for firearms-related 
               regulatory and enforcement activities related to the sale, 
               purchase, loan, or transfer of firearms pursuant to any 
               provision listed in Penal Code Section 16580, but not 
               expressly for the enforcement activities related to 
               possession.

             g)   Rather than placing an additional burden on the 
               taxpayers of California to fund enhanced enforcement of the 
               existing armed prohibited persons program, it is the intent 
               of the Legislature in enacting this bill to allow the DOJ 
               to utilize the DROS Account for the additional, limited 
               purpose of funding enforcement of the APPS.

           EXISTING LAW  :

          1)States that it shall be unlawful for any person to sell or 
            otherwise dispose of any firearm or ammunition to persons if 
            that person is under indictment or has been convicted of 
            specified crimes, is under a restraining order, has been 
            committed to a mental institution, and other specified 
            disqualifying factors.  (18 U.S.C. Section 922.)

          2)Requires that persons who sell, lease, or transfer firearms be 
            licensed by California.  (Penal Code Sections 26500 and 26700, 
            et seq.)

          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 gun dealers and allows 
            access to the centralized list by authorized persons for 
            various reasons.  (Penal Code Section 26700.)

          4)Requires that firearms dealers obtain certain identifying 








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            information from firearms purchasers and forward that 
            information, via electronic transfer to DOJ to perform a 
            background check on the purchaser to determine whether he or 
            she is prohibited from possessing a firearm.  The record of 
            applicant information must be transmitted to the DOJ in 
            Sacramento by electronic transfer on the date of the 
            application to purchase.  The original of each record of 
            electronic transfer shall be retained by the dealer in 
            consecutive order.  Each original shall become the permanent 
            record of the transaction that shall be retained for not less 
            than three years from the date of the last transaction and 
            shall be provided for the inspection of any peace officer, DOJ 
            employee designated by the Attorney General, or agent of the 
            Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives 
            upon the presentation of proper identification, but no 
            information shall be compiled therefrom regarding the 
            purchasers or other transferees of firearms that are not 
            pistols, revolvers, or other firearms capable of being 
            concealed upon the person.  (Penal Code Sections 28160 to 
            28220.)

          5)Requires handguns to be centrally registered at time of 
            transfer or sale by way of 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 Section 
            11106(a) and (c).]

          6)Requires that, upon receipt of the purchaser's information, 
            DOJ shall examine its records, as well as those records that 
            it is authorized to request from the California Department of 
            Mental Health (DMH) pursuant to Welfare and Institutions Code 
            (WIC) Section 8104, in order to determine if the purchaser is 
            prohibited from purchasing a firearm because of a prior felony 
            conviction or because they had previously purchased a handgun 
            within the last 30 days, or because they had received 
            inpatient treatment for a mental health disorder, as 
            specified.  (Penal Code Section 28220.) 

          7)States that, to the extent funding is available, DOJ may 
            participate in the National Instant Criminal Background Check 
            System (NICS), as specified, and, if that participation is 
            implemented, shall notify the dealer and the chief of the 
            police department of the city or city and county in which the 
            sale was made, or if the sale was made in a district in which 








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            there is no municipal police department, the sheriff of the 
            county in which the sale was made, that the purchaser is a 
            person prohibited from acquiring a firearm under federal law.  
            (Penal Code Section 28220.)

          8)States that if DOJ determines that the purchaser is prohibited 
            from possessing a firearm, as specified, it shall immediately 
            notify the dealer and the chief of the police department of 
            the city or city and county in which the sale was made, or if 
            the sale was made in a district in which there is no municipal 
            police department, the sheriff of the county in which the sale 
            was made, of that fact.  (Penal Code Section 28220.)

          9)States that no person who has been taken into custody, found 
            to be a danger to himself, herself, or others, and, as a 
            result, admitted to a specified mental health facility, shall 
            own, possess, control, receive, or purchase, or attempt to 
            own, possess, control, receive, or purchase any firearm for a 
            period of five years after the person is released from the 
            facility, except as specified.  �WIC Section 8103(f)(1).]  For 
            each such person, the facility shall immediately, on the date 
            of admission, submit a report to DOJ, on a form prescribed by 
            DOJ, containing information that includes, but is not limited 
            to, the identity of the person and the legal grounds upon 
            which the person was admitted to the facility.  �WIC Section 
            8103(f)(2)(A).]

          10)No person who has been certified for intensive treatment for 
            a mental disorder, as specified, shall own, possess, control, 
            receive, or purchase, or attempt to own, possess, control, 
            receive, or purchase any firearm for a period of five years 
            and relevant treatment facilities shall report the identities 
            of such persons to DOJ, as specified.  �WIC Section 8103(g).]

          11)DOJ may require the dealer to charge each firearm purchaser a 
            fee not to exceed $14, except that the fee may be increased at 
            a rate not to exceed any increase in the California Consumer 
            Price Index as compiled and reported by the Department of 
            Industrial Relations.  This fee, known as the Dealer Record of 
            Sale or DROS fee, shall be no more than is necessary to fund 
            the following:

             a)   DOJ for the cost of furnishing this information.

             b)   DOJ for the cost of meeting its obligations to notify 








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               specified persons that they are prohibited from owning 
               firearms due to their receiving inpatient treatment for a 
               mental disorder.

             c)   Local mental health facilities for state-mandated local 
               costs resulting from the specified reporting requirements.

             d)   The DMH for the costs resulting from the specified 
               requirements imposed.

             e)   Local mental hospitals, sanitariums, and institutions 
               for state-mandated local costs resulting from the specified 
               reporting requirements.

             f)   Local law enforcement agencies for state-mandated local 
               costs resulting from the notification requirements 
               regarding service of restraining orders, as specified.

             g)   Local law enforcement agencies for state-mandated local 
               costs resulting from the notification requirements 
               regarding specified persons prohibited from owning firearms 
               due to their receiving inpatient treatment for a mental 
               disorder.

             h)   For the actual costs associated with the electronic or 
               telephonic transfer of information, as specified.

             i)   The Department of Food and Agriculture for the costs 
               resulting from the notification provisions regarding 
               importing firearms into the state, as specified.

             j)   DOJ for the costs associated with public education 
               requirements regarding importation of firearms into 
               California, as specified.

             aa)  DOJ for the costs associated with funding DOJ 
               firearms-related regulatory and enforcement activities 
               related to the sale, purchase, loan, or transfer of 
               firearms pursuant to any provision listed in Section 16580. 
                �Penal Code Section 28225(a) and (b).]

          12)The fee established pursuant to this section shall not exceed 
            the sum of the actual processing costs of the DOJ, the 
            estimated reasonable costs of the local mental health 
            facilities for complying with the reporting requirements 








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            imposed as specified, the costs of DMH for complying with the 
            requirements imposed as specified, the estimated reasonable 
            costs of local mental hospitals, sanitariums, and institutions 
            for complying with the reporting requirements imposed as 
            specified, the estimated reasonable costs of local law 
            enforcement agencies for complying with the notification 
            requirements, as specified, the estimated reasonable costs of 
            local law enforcement agencies for complying with the 
            notification requirements imposed as specified, the estimated 
            reasonable costs of the Department of Food and Agriculture for 
            the costs resulting from the specified notification 
            provisions, the estimated reasonable costs of the DOJ for the 
            costs associated with public education requirements regarding 
            importation of firearms into California, and the estimated 
            reasonable costs of DOJ firearms-related regulatory and 
            enforcement activities related to the sale, purchase, loan, or 
            transfer of firearms pursuant to specified provisions of law 
            pertaining to firearms.  �Penal Code Section 28225(c).]

          13)DOJ may charge a fee sufficient to reimburse it for each of 
            the following but not to exceed $14, except that the fee may 
            be increased at a rate not to exceed any increase in the 
            California Consumer Price Index as compiled and reported by 
            the Department of Industrial Relations:

             a)   For the actual costs associated with the preparation, 
               sale, processing, and filing of forms or reports required 
               or utilized pursuant to any provision listed in Penal Code 
               Section 16585(a).

             b)   For the actual processing costs associated with the 
               submission of a DROS to the DOJ.

             c)   For the actual costs associated with the preparation, 
               sale, processing, and filing of reports utilized pursuant 
               to Penal Code Section 26905, 27565, or 28000, or 
               27560(1)(a).

             d)   For the actual costs associated with the electronic or 
               telephonic transfer of information pursuant to Penal Code 
               Section 28215.

             e)   Any costs incurred by the DOJ to implement this section 
               shall be reimbursed from fees collected and charged 
               pursuant to this section.  No fees shall be charged to the 








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               dealer pursuant to Penal Code Section 28225 for 
               implementing this section.  (Penal Code Section 28230.)

          14)All money received by the DOJ pursuant to this article shall 
            be deposited in the DROS Special Account of the General Fund, 
            which is hereby created, to be available, upon appropriation 
            by the Legislature, for expenditure by the DOJ to offset the 
            costs incurred pursuant to any of the following:

             a)   This article.

             b)   Annual inspections of permitted destructive devices.  
               (Penal Code Section 18910.)

             c)   Regulating firearms transaction between licensed 
               dealers.  (Penal Code Section 27555.)

             d)   Conduct public education and notification programs 
               regarding importation of firearms into California.  �Penal 
               Section 27560(d) and (e).]

             e)   Maintain a list of federally licensed firearms dealers 
               in California exempt from the state dealer licensing 
               requirements, as specified.  �Penal Code Section 28450 et 
               seq.]

             f)   Inspection of inventory of licensed firearms dealers.  
               (Penal Code Section 31110.)

             g)   Public education and notification programs regarding 
               registration of assault weapons.  (Penal Code Section 
               31115.)

             h)   Retesting of handguns on the not unsafe handgun list, as 
               specified.  �Penal Code Section 32020(a).]

             i)   Inspection of inventories of machine guns held under 
               permit.  (Penal Code Section 32670.)

             j)   Inspection of inventories of short-barreled shotguns and 
               rifles held under permit.  (Penal Code Sections 33320 and 
               28235.)

          15)States the Attorney General shall establish and maintain an 
            online database to be known as the Prohibited Armed Persons 








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            File.  The purpose of the file is to cross-reference persons 
            who have ownership or possession of a firearm on or after 
            January 1, 1991, as indicated by a record in the Consolidated 
            Firearms Information System, and who, subsequent to the date 
            of that ownership or possession of a firearm, fall within a 
            class of persons who are prohibited from owning or possessing 
            a firearm.  The information contained in the Prohibited Armed 
            Persons File shall only be available to specified entities 
            through the California Law Enforcement Telecommunications 
            System, for the purpose of determining if persons are armed 
            and prohibited from possessing firearms.  (Penal Code Section 
            30000.)

           FISCAL EFFECT :  Unknown

           COMMENTS  :   

           1)Author's Statement  :  "SB 819 will amend the Penal Code to 
            allow the DOJ to use existing Department resources to provide 
            enhanced enforcement of the APPS which has identified over 
            36,000 handguns and assault weapons in the hands of more than 
            18,000 prohibited persons such as convicted felons and the 
            mentally ill.

          "Recently, the New York Times reported on California's Armed 
            Prohibited Persons File and the problems it seeks to address:

          "By law, Roy Perez should not have had a gun three years ago 
            when he shot his mother 16 times in their home in Baldwin 
            Park, Calif., killing her, and then went next door and killed 
            a woman and her 4-year-old daughter. 

          "Mr. Perez, who pleaded guilty to three counts of murder and was 
            sentenced last year to life in prison, had a history of mental 
            health issues.  As a result, even though in 2004 he legally 
            bought the 9-millimeter Glock 26 handgun he used, at the time 
            of the shootings his name was in a statewide law enforcement 
            database as someone whose gun should be taken away, according 
            to the authorities. 

          "The case highlights a serious vulnerability when it comes to 
            keeping guns out of the hands of the mentally unstable and 
            others, not just in California but across the country. 

          "In the wake of the Tucson shootings, much attention has been 








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            paid to various categories of people who are legally barred 
            from buying handguns - those who have been 'adjudicated as a 
            mental defective,' have felony convictions, have committed 
            domestic violence misdemeanors and so on.  The focus has 
            almost entirely been on gaps in the federal background check 
            system that is supposed to deny guns to these prohibited 
            buyers. 

          "There is, however, another major blind spot in the system. 

          "Tens of thousands of gun owners, like Mr. Perez, bought their 
            weapons legally but under the law should no longer have them 
            because of subsequent mental health or criminal issues.  In 
            Mr. Perez's case, he had been held involuntarily by the 
            authorities several times for psychiatric evaluation, which in 
            California bars a person from possessing a gun for five years. 


          "Policing these prohibitions is difficult, however, in most 
            states.  The authorities usually have to stumble upon the 
            weapon in, say, a traffic stop or some other encounter, and 
            run the person's name through various record checks. 

          "California is unique in the country, gun control advocates say, 
            because of its computerized database, the APPS.  It was 
            created, in part, to enable law enforcement officials to 
            handle the issue pre-emptively, actively identifying people 
            who legally bought handguns, or registered assault weapons, 
            but are now prohibited from having them. 

          "The list had 18,374 names on it as of the beginning of this 
            month - 15 to 20 are added a day - swamping law enforcement's 
            ability to keep up.  Some police departments admitted that 
            they had not even tried. 

          "SB 819 addresses the critical need to enforce existing firearm 
            prohibition laws.  Increased confiscation of unlawfully 
            possessed firearms could result in the prevention of future 
            crimes and potentially major future cost savings associated 
            with avoided prosecution and incarceration.  This bill is 
            strongly supported local law as well organizations working to 
            reduce firearms violence in our communities."

           2)Background  :  According to the background provided by the 
            author, SB 819 will amend the Penal Code to allow DOJ to use 








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            existing DOJ resources to provide enhanced enforcement of the 
            APPS which has identified over 36,000 handguns and assault 
            weapons in the hands of more than 18,000 prohibited persons 
            such as convicted felons and the mentally ill.  SB 819 
            addresses the critical need to enforce existing firearm 
            prohibition laws.  
             
             Enforcement of existing firearms laws are a critical component 
            of the state's responsibility to ensure public safety.  
            However, there is a huge blind spot in the system.  Tens of 
            thousands of gun owners bought their weapons legally, but 
            under law should no longer have them due to subsequent mental 
            health or criminal issues.  In fact, every day, the list of 
            armed prohibited persons in California grows by about 15 to 20 
            people.  As of Mach 22, 2011, the Bureau of Firearms 
            identified 18,377 individuals with a prior felony conviction 
            or mental health disorder that disqualified them from 
            possessing more than 36,000 firearms.

            "Although DOJ and local law enforcement have the authority to 
            confiscate these weapons in the interest of public safety, the 
            truth is, the situation continues to get worse.  Law 
            enforcement is struggling to disarm people who've lost the 
            right to own a gun.  Neither DOJ nor the locals have the 
            resources to confiscate the enormous backlog of weapons, nor 
            can they keep up with the daily influx of the newly 
            prohibited."

           3)Armed Prohibited Persons System  :  California is the first and 
            only state in the nation to establish an automated system for 
            tracking handgun and assault weapon owners who pose a threat 
            to public safety.  The APPS maintains information about 
            persons who have been, or will become, prohibited from 
            possessing a firearm subsequent to the legal acquisition or 
            registration of a firearm or an assault weapon.  The APPS also 
            provides authorized law enforcement agencies with inquiry 
            capabilities to determine the prohibition status of a person 
            of interest.  DOJ populates APPS with all handgun and assault 
            weapon owners across the state and matches them against 
            criminal history records to determine who might fall into a 
            prohibited status.  Automatic notifications from state and 
                                                             federal criminal history systems will be received daily to 
            determine if there is a match for a current California gun 
            owner.  When a match is found, the system automatically raises 
            a flag to Firearms Division staff, which triggers an 








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            investigation into the person's status.

            For example, the daily APPS report for March 22, 2011 provided 
            a breakdown of prohibited persons by county.  A few examples 
            include:  Orange County - 1, 163 prohibited persons with 2,488 
            illegal handguns; Sacramento County - 516 prohibited persons 
            with 1,037 illegal handguns; and San Diego County - 841 
            prohibited persons with 1,841 illegal handguns  
             
           4)DOJ's Role in APPS Enforcement  :  Although the burden for 
            confiscating weapons falls largely on local jurisdictions, in 
            practice, most local jurisdictions are too short on resources 
            to do much or only vaguely aware of how the APPS database 
            works.  In fact, 98% of the individuals removed from the list 
            are a result of DOJ efforts, not local law enforcement. While 
            DOJ provides locals with access to the list of prohibited 
            persons and has trained more than 1,300 officers in its use, 
            DOJ's own team of 20 agents specifically tasked with 
            investigating and confiscating the weapons of unlawful gun 
            owners has proven to be the most effective. 

            For example, in Los Angeles County, a jurisdiction with 5,871 
            prohibited persons, local law enforcement was only able to 
            confiscate weapons in six cases.  DOJ was able to confiscate 
            weapons in 76 cases.

           5)Argument in Support  :  According to the  Legal Community Against 
            Violence  , "�u]nder current law, DOJ is authorized to require 
            firearms dealers to impose a fee attached to the purchase of a 
            firearm; under state law, the fees, collected in the Dealers' 
            Record of Sale Special Account of the General Fund ('DROS 
            Fund'), may be used to fund a specific set of purposes, 
            including DOJ 'regulatory and enforcement activities related 
            to the sale, purchase, loan, or transfer of firearms.'  SB 819 
            (Leno) would authorize the use of the DROS Fund for 
            enforcement activities related to the possession of firearms.  

             
             "DOJ maintains an APPS, which identifies individuals who 
            legally purchased handguns or assault weapons but subsequently 
            because prohibited from possessing firearms.  APPS presently 
            contains the names of over 18,000 Californians in possession 
            of over 36,000 handguns and assault weapons, even though these 
            individuals are prohibited from having guns under state law.  
            The 18,000 prohibited persons include convicted felons, 








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            domestic abusers and mentally ill individuals, among others 
            who have been convicted of serious crimes that rightfully 
            disqualify them from firearm ownership.  State efforts to 
            disarm prohibited individuals are currently funded through the 
            General Fund.  SB 819 would enable the use of DROS Fund money 
            for this important purpose."  

           6)Argument in Opposition  :  According to the  California 
            Association of Firearms Retailers  (CAFR), "�t]he money paid to 
            the DROS fund by a prospective purchaser or other transferee 
            of a firearm is a fee to pay for the costs of a criminal and 
            mental history background check to determine that person's 
            eligibility to lawfully possess a firearm.  
             
             "The DROS fee is not a regulatory fee, tax, license or other 
            form of non-user charge.  CAFR believes that the DROS fund has 
            often been improperly used to fund non-background check 
            activities of DOJ.  

            "The use of DROS fees as proposed in SB 819 is considered to 
            constitute a tax on perspective firearm purchasers since it 
            would be used, in part, to pay for the general public services 
            proposed in the bill, rather than for its original intended 
            purpose as a user fee to pay for services rendered only to the 
            fee payer."

           7)Prior Legislation  :  AB 302 (Beall), Statutes of 2010, Chapter 
            344, required the electronic submission of specified 
            information to DOJ with respect to persons admitted to a 
            mental health facility on the basis of being a threat to 
            themselves or others, or as a result of being certified for 
            intensive treatment.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association for Los Angeles Deputy Sheriffs 
          California Chapters of the Brady Campaign 
          California Department of Justice 
          California State Sheriffs' Association
          California Statewide Law Enforcement Association 
          Legal Community Against Violence 
          Los Angeles County Sheriff's Department 
          Riverside Sheriffs' Association 








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           Opposition 
           
          California Association of Firearms Retailers 
          California Rifle and Pistol Association
          California Sportsman's Lobby
          Crossroads of the West
          Gun Owners of California
          National Rifle Association of America 
          National Shooting Sports Foundation 
          Outdoor Sportsmen's Coalition of California 
          Safari Club International
          One private individual 
           

          Analysis Prepared by  :    Gabriel Caswell / PUB. S. / (916) 
          319-3744