BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1422 (Anderson) - Handgun safety certificates: fees.
          
          Amended: April 12, 2012         Policy Vote: Public Safety 5-2
          Urgency: No                     Mandate: No
          Hearing Date: May 24, 2012      Consultant: Jolie Onodera
          
          SUSPENSE FILE.


          Bill Summary: SB 1422 would reduce the handgun safety 
          certificate (HSC) fee and the HSC renewal fee for honorably 
          discharged members of the United States Armed Forces, the 
          National Guard, the Air National Guard, or the active reserve 
          components of the United States, as specified. 

          Fiscal Impact: Annual ongoing loss of Department of Justice 
          (DOJ) revenue to the Firearms Safety and Enforcement Special 
          Fund (FSESF) potentially in the range of $150,000 to $750,000, 
          assuming 30,000 to 150,000 (range of 2 to 10 percent) honorably 
          discharged members receive or renew a HSC.

          Background: Current law provides that no person shall purchase 
          or receive any handgun, except an antique firearm, without a 
          valid HSC. Applicants must pass a written test that encompasses 
          the laws and responsibilities applicable to the carrying, 
          handling, sale, transfer, and safe storage of firearms, as well 
          as the risks associated with bringing handguns into the home. 
          The DOJ develops the HSC to be issued by instructors certified 
          by the DOJ, to individuals who have complied with specified 
          requirements. The HSC expires five years after the date of 
          issuance.

          Prior to 2001, all honorably discharged veterans were exempted 
          from obtaining a Basic Firearms Safety Certificate. SB 52 
          (Scott) Chapter 942/2001 repealed the Basic Firearms Safety and 
          Certificate Program and replaced it with the Handgun Safety 
          Licensing Program which narrowed the exemptions for obtaining a 
          HSC to honorably  retired  members of the military.
           
          Proposed Law: This bill would reduce the HSC fee and HSC renewal 
          fee a certified instructor may charge an honorably discharged 
          member, as defined, from $25 to $15, and would reduce the amount 
          of the fee to be paid to the DOJ from $15 to $10.







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          This bill would define "honorably discharged member" as an 
          honorably discharged member of the United States Armed Forces, 
          the National Guard, the Air National Guard, or the active 
          reserve components of the United States, who has received a 
          United States Department of Defense certificate of release or 
          discharge from active duty, DD Form 214, indicating a discharge 
          under honorable conditions. 

          Related Legislation: SB 404 (Anderson) 2011 would have exempted 
          honorably discharged members of the military from HSC 
          requirements. This bill failed passage in the Senate Committee 
          on Public Safety.
          AB 2609 (Anderson) 2010 would have exempted honorably discharged 
          members, instead of honorably retired members from HSC 
          requirements. This bill failed passage in the Assembly Committee 
          on Public Safety. 

          AB 2152 (Neilson) 2010 would have exempted honorably discharged 
          members from HSC requirements. This bill failed passage in the 
          Assembly Committee on Public Safety.

          AB 201 (Samuelian) 2004 would have exempted honorably discharged 
          members from HSC requirements. This bill failed passage in the 
          Assembly Committee on Public Safety.

          AB 2081 (Briggs) 2002 would have exempted honorably discharged 
          members from HSC requirements. This bill failed passage in the 
          Assembly Committee on Public Safety.

          SB 1615 (Johannessen) 2002 would have exempted honorably 
          discharged members from HSC requirements. This bill was 
          introduced but not heard in the Senate Committee on Public 
          Safety.

          SB 52 (Scott) Chapter 942/2001 repealed the Basic Firearms 
          Safety and Certificate Program and replaced it with the more 
          stringent Handgun Safety Licensing Program, which narrowed the 
          exemption for military personnel to include only honorably 
          retired veterans.

          

          Staff Comments: The provisions of this bill will result in a 








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          loss of revenue to the Firearms Safety and Enforcement Special 
          Fund of $5 per honorably discharged member who receives a new or 
          renewed HSC. The Department of Veterans Affairs has indicated 
          there are approximately two million veterans living in 
          California. It is estimated that the number of honorably 
          discharged veterans may be in the range of 1.5 million 
          individuals, and the number of veterans exempted under current 
          law as "honorably retired" is expected to be minimal.


          It is unknown how many honorably discharged members in any one 
          year receive or renew a HSC. The DOJ indicates the number of 
          HSCs issued is not tracked as the issuance is handled by 
          dealers. If two percent (30,000 veterans) of honorably 
          discharged members receive a new or renewed HSC per year, lost 
          revenue to the DOJ would be $150,000 (FSESF). If ten percent or 
          150,000 veterans applied for or renewed their HSCs in any one 
          year, lost revenue would equate to $750,000 (FSESF). There could 
          be a minor offset to potential revenue loss to the extent a 
          number of honorably discharged veterans attain a HSC who 
          otherwise would not have obtained a HSC under existing law. 
          However, given the existing fee amount of $25 and the minimal 
          difference in the proposed fee amount, this impact is estimated 
          to be minor.



          The FSESF had a reserve balance of $5.1 million at the end of 
          Fiscal Year (FY) 2010-11, which would have increased to $6.7 
          million in FY 2011-12 in the absence of a loan to the General 
          Fund of $4.9 million. The FY 2012-13 reserve balance is 
          projected at nearly $4 million.