BILL NUMBER: AB 754	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 28, 2005
	AMENDED IN ASSEMBLY  APRIL 11, 2005

INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 18, 2005

   An act to amend Section 21641 of the Business and Professions
Code, to amend Section 12101 of the Health and Safety Code, to amend
Sections 171b, 11106, 12001, 12035, 12036, 12070, 12072, 12076,
12078, 12082, 12084, and 12086 of, to amend, renumber, and add
Sections 12071.1 and 12071.4 of, to add Sections 12071.2, 12071.3,
12071.5, 12071.6, and 12071.7 to, and to repeal and add [replace] Sections
12071 and 12083 of, the Penal Code, relating to firearms.

In this abbreviated version of the bill, voluminous text for which no change is proposed, and material that is simply renumbered or moved (with renumbering) as part of the "reorganization" is deleted herein for simplification. Changes shown in the digest section are with respect to previous versions. Changes in the enactment section of this version are with respect to existing law (not the preceding issue of the bill as in versions available from the legislature). Additions are shown in bold italics so as to stand out. Material in blue italics is comment. Linkages & comments by J. Phillips.
LEGISLATIVE COUNSEL'S DIGEST AB 754, as introduced, Jones. Firearms. Existing law [Sec. 12071] generally regulates the licensing and conduct of firearms dealers. This bill would reorganize those provisions. Existing law establishes a centralized list of firearms dealers who are licensed by local [and state and fedl] governments, as specified. Existing law provides that certain information from that list may be used for specified purposes. [The digest is mistaken in referring to the licensing as only "local govt".] This bill would [in new 12071.7] revise those provisions relating to the purposes for which the information may be made available, and to allow certain information to be accessible via the Internet to the public. Existing law [12072f(1)(B)] requires persons provides [sic] hold a federal firearms license to either obtain a verification number from the Department of Justice when delivering, transferring, or selling a firearm to another federal firearms licensee, or show proof of exemption from local [and state and fedl] licensing requirements. Violation of these provisions is a misdemeanor. This bill would revise those provisions by removing the option of showing proof of exemption from local [and other, per 12071] licensing and require the transferors to obtain a verification number. The department would then determine if an exemption applies, as specified. The bill would expand the use of the verification number by the department for certain purposes. Violation of these provisions would be a misdemeanor. By changing the definition of an existing crime, this bill would impose a state-mandated local program. Existing law requires a person who as a dealer, importer, manufacturer, or collector of firearms holds a federal firearms license, and whose licensed premises are within the state, to provide a copy of the license to the Department of Justice, as specified. A violation of these provisions is an infraction. This bill would repeal those provisions and instead provide, commencing January 1, 2007, for a centralized list of federal firearms licensees who are exempt from obtaining a firearms dealer license pursuant to state law. Among other things required of the licensees to be on the centralized exempted federal firearms licensee list, the licensees would have to provide the basis for their exemption to the department. under penalty of perjury. The bill would provide that supplying a fictitious name, knowingly supplying false information or knowingly omitting information from the declaration would be a misdemeanor. By expanding the scope of an existing crime, perjury, creating a new crime, this bill would impose a state-mandated local program. The bill would authorize, commencing January 1, 2007, the department to assess an annual fee upon those licensees for purposes of maintaining the list and for other enforcement and compliance costs. The bill would provide that those licensees may not import or receive firearms unless they are listed on the centralized list of exempted federal firearms licensees or exempted firearms manufacturers. A violation of that requirement would be a misdemeanor. The bill would require certain records be kept for specified periods of time by the exempted federal licensees. A violation of those provisions would be a misdemeanor. By creating new crimes, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: . . . . SEC. 9. Section 12071 of the Penal Code is repealed. [replaced, actually] [Subdiv. (a), with numbering changes, becomes Subd (a)-(g) of the proposed new 12071.] [The last subd. of the new 12071 is not equivalent to the following subdivision (b) as it should be. It leaves the reader misled into thinking that only breach of the following specified prohibitions and requirements is cause for forfeiture. If one learns otherwise, she is then left with having to search thru all state law to find all such causes for forfeiture. The bill should enumerate the new sections containing such prohibitions and requirements.] (b) A license is subject to forfeiture for a breach of any of the following prohibitions and requirements: . . . . [Subd (c) and Subpar. (G) of Subd (b), Par. (20) are definitions and are replaced by definitions in different proposed new sections to which those definitions are relevant. However, art. i of subpar (G) (definition of "secured" firearm) is mistakenly placed in proposed new 12071.6 rather than 12071.1 as it should be.] [Subd. (d) to be in proposed new 12071.6(f).] [Subd. (e) thru (g) to be replaced (with considerable change) by proposed new 12071.7.] (e)(1) Except as otherwise provided in this paragraph, the Department of Justice shall keep a centralized list of all persons licensed pursuant to subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision (a), and all persons who have submitted information pursuant to subdivision (a) of Section 12083. The department may remove from this list any person who knowingly or with gross negligence violates this article. Upon removal of a dealer from this list, notification shall be provided to local law enforcement and licensing authorities in the jurisdiction where the dealer's business is located. (2) The department shall remove from the centralized list any person whose federal firearms license has expired or has been revoked. (3) Information compiled from the list shall be made available, upon request, for the following purposes only: [deleted in replacement] (A) For law enforcement purposes. (B) When the information is requested by a person licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code for determining the validity of the license for firearm shipments. (C) When information is requested by a person promoting, sponsoring, operating, or otherwise organizing a show or event as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, who possesses a valid certificate of eligibility issued pursuant to Section 12071.1, if that information is requested by the person to determine the eligibility of a prospective participant in a gun show or event to conduct transactions as a firearms dealer pursuant to subparagraph (B) of paragraph (1) of subdivision (b). (4) Information provided pursuant to paragraph (3) shall be limited to information necessary to corroborate an individual's current license status as being one of the following: (A) A person licensed pursuant to subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision (a). (B) A person licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and who is not subject to the requirement that he or she be licensed pursuant to subparagraphs (A) to (E), inclusive, of paragraph (1) of subdivision (a). (f) The Department of Justice may inspect dealers to ensure compliance with this article. The department may assess an annual fee, not to exceed one hundred fifteen dollars ($115), to cover the reasonable cost of maintaining the list described in subdivision (e), including the cost of inspections. Dealers whose place of business is in a jurisdiction that has adopted an inspection program to ensure compliance with firearms law shall be exempt from that portion of the department's fee that relates to the cost of inspections. The applicant is responsible for providing evidence to the department that the jurisdiction in which the business is located has the inspection program. (g) The Department of Justice shall maintain and make available upon request information concerning the number of inspections conducted and the amount of fees collected pursuant to subdivision (f), a listing of exempted jurisdictions, as defined in subdivision (f), the number of dealers removed from the centralized list defined in subdivision (e), and the number of dealers found to have violated this article with knowledge or gross negligence. [Subd. (h) to be replaced by proposed new 12071.6(d).] [Subd (i) related to replaced text in 12072(f).] (i) (1) For every verification inquiry made pursuant to paragraph (1) of subdivision (f) of Section 12072, the department shall determine whether the intended recipient possesses an appropriate, valid license issued pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and, if applicable, is properly licensed pursuant to this section. (2) If the intended recipient possesses an appropriate, valid license issued pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code, and if applicable, is properly licensed pursuant to this section, the department shall immediately provide a unique verification number to the inquiring party. (3) If the intended recipient does not possess an appropriate, valid license issued pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code, or if applicable, is not properly licensed pursuant to this section, the department shall do all of the following: (A) Immediately notify the inquiring party of that fact. (B) Within 24 hours, notify the chief law enforcement officer of the jurisdiction where the address on the federal firearms license about which the inquiry was made is located, and notify an appropriate employee of the federal Bureau of Alcohol, Tobacco and Firearms of the denied verification. SEC. 18. Section 12071.6 is added to the Penal Code, to read: 12071.6. (a) The licensee shall report the loss or theft of any firearm that is merchandise of the licensee, any firearm that the licensee takes possession of pursuant to Section 12082, or any firearm kept at the licensee's place of business within 48 hours of discovery to the Department of Justice and to the appropriate law enforcement agency in the city, county, or city and county where the licensee's business premises are located. [Except for the addition shown above in subd (a), subd (a)-(c) are matl from existing 12071(b)(13)-(15). Subd (d) is matl from existing 12071(h).] (e) For purposes of this section, the following definitions shall apply: (1) "Licensed premises," "licensed place of business," "licensee's place of business," or "licensee's business premises" means the building designated in the license. [from 12071(c)(3)] [The term "secured" is not used in this section in reference to a firearm. The definition should be in 12071.1 where it relates to subd (n).] (2) "Secured" means a firearm that is made inoperable in one or more of the following ways: (A) The firearm is inoperable because it is secured by a firearms safety device listed on the department's roster of approved firearms safety devices pursuant to subdivision (d) of Section 12088 of this chapter. (B) The firearm is stored in a locked gun safe or long-gun safe which meets the standards for department-approved gun safes set forth in Section 12088.2. (C) The firearm is stored in a distinct locked room or area in the building that is used to store firearms that can only be unlocked by a key, a combination, or similar means. (D) The firearm is secured with a hardened steel rod or cable that is at least one-eighth of an inch in diameter through the trigger guard of the firearm. The steel rod or cable shall be secured with a hardened steel lock that has a shackle. The lock and shackle shall be protected or shielded from the use of a bolt cutter and the rod or cable shall be anchored in a manner that prevents the removal of the firearm from the premises. (3) ["Secure facility" defn from 12071(c)(2)] [Subd (f) is matl from existing 12071(d).] (g) A license granted pursuant to Section 12071 is subject to forfeiture for a breach of any of the prohibitions and requirements of this section. [Matl in 12071.7 replaces with (considerable) change matl from existing 12071(e) thru (g)] SEC. 19. Section 12071.7 is added to the Penal Code, to read: 12071.7. (a) Except as otherwise provided in this section, the Department of Justice shall keep a centralized list of all persons licensed pursuant to Section 12071. The department may remove from this list any person who knowingly or with gross negligence violates this article. Upon removal of a dealer from this list, notification shall be provided to local law enforcement and licensing authorities in the jurisdiction where the dealer's business is located. (b) The department shall make information from the centralized list available upon request to local, state, and federal law enforcement agencies and the duly constituted licensing authorities of any city, county, or city and county. (c) The department may make the following information from the centralized list available to the general public via the Internet: (1) The federal firearms license number (FFL number). (2) The licensee's name. (3) The licensee's business name. (4) The licensee's business address. (d) The department may inspect dealers to ensure compliance with this article. The department may assess an annual fee, not to exceed one hundred fifteen dollars ($115), to cover the reasonable cost of maintaining the list described in subdivision (a), including the cost of inspections. Dealers whose place of business is in a jurisdiction that has adopted an inspection program to ensure compliance with firearms law shall be exempt from that portion of the department's fee that relates to the cost of inspections. The applicant is responsible for providing evidence to the department that the jurisdiction in which the business is located has the inspection program. (e) The department shall maintain and make available upon request information concerning the number of inspections conducted and the amount of fees collected pursuant to subdivision (e), a listing of exempted jurisdictions, as defined in subdivision (e), the number of dealers removed from the centralized list defined in subdivision (a), and the number of dealers found to have violated this article with knowledge or gross negligence. SEC. 20. Section 12072 of the Penal Code is amended to read: 12072. [Subd (a)-(e) have only changes in references to accomodate reorganization in the rest of code proposed to be changed.] (f) (1) No person who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code shall deliver, sell, or transfer a firearm to a person who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and whose licensed premises are located in this state unless: (A) Prior to January 1, 2005, the intended recipient does one of the following: (i) Presents proof of licensure pursuant to Section 12071 to that person. (ii) Presents proof that he or she is exempt from licensure under Section 12071 to that person, in which case the person also shall present proof that the transaction is also exempt from the provisions of subdivision (d). (B) Commencing January 1, 2005, one of the following is satisfied: (i) The person intending to deliver, sell, or transfer the firearms obtains from the department, prior to delivery, a unique verification number pursuant to subdivision (i) of Section 12071. The person intending to deliver, sell, or transfer firearms shall provide the unique verification number to the recipient along with the firearms upon delivery, in a manner to be determined by the department. (ii) The intended recipient presents proof that he or she is exempt from licensure under Section 12071 to that person, in which case the person also shall present proof that the transaction is also exempt from the provisions of subdivision (d). (2) [Following is replacement par (1) of subd (f).] Commencing January 1, 2005, 2007, a person who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code may not deliver, sell, or transfer a firearm to a person licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code 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 subdivision 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. (2) For every verification number request received pursuant to this section, the department shall determine whether the intended recipient is on the centralized list of firearms dealers pursuant to Section 12071.7, or the centralized list of exempted federal firearms licensees pursuant to subdivision (a) of Section 12083, or the centralized list of firearms manufacturers pursuant to subdivision (f) of Section 12086. (3) If the department finds that the intended recipient is on one of these lists, the department shall issue to the inquiring party, a unique verification 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. (4) 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. (5) The department shall prescribe the manner in which the verification numbers may be requested via the Internet, including all required enrollment information and procedures. (g) (1) [Remainder of changes in the section are only reference changes.] SEC. 24. Section 12083 of the Penal Code is repealed. [replaced] 12083. (a) A person who is licensed as a dealer, importer, manufacturer, or collector of firearms, pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and the regulations issued pursuant thereto, and whose licensed premises are within this state, shall, within 30 days of the date of issuance of the license, provide a copy of the license with an original signature of the licensee to the Department of Justice in a manner to be determined by the department. If the date of issuance of the license is prior to January 1, 2004, the person shall provide a copy of the license with the original signature to the department no later than February 1, 2004.(b) A violation of this section is punishable as an infraction. (c) Any costs incurred by the department to implement this section and to implement the amendments made to Section 12071 by the act which enacted this section shall be funded from the Dealers' Record of Sale Special Account, as set forth in subdivision (g) of Section 12076, upon appropriation by the Legislature. SEC. 25. Section 12083 is added to the Penal Code, [replacing the existing] to read: 12083. (a) Commencing January 1, 2007, the The Department of Justice shall keep a centralized list of persons who identify themselves as being licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code as a dealer, pawnbroker, importer or manufacturer of firearms whose licensed premises are within this state and who declare to the department an exemption from the firearms dealer licensing requirements of Section 12070. The list shall be known as the centralized list of exempted federal firearms licensees. To qualify for placement on the centralized list, an applicant shall do all of the following: (1) Possess a valid federal firearms license pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code as a dealer, pawnbroker, importer, or manufacturer of firearms. (2) Possess a current, valid certificate of eligibility pursuant to Section 12071. (3) Maintain with the department a signed declaration under penalty [of] perjury enumerating the applicant's statutory exemptions from licensing requirements of Section 12070. Any person furnishing a fictitious name, knowingly furnishing any incorrect information, or knowingly omitting any information for the declaration shall be guilty of a misdemeanor. (b) Commencing January 1, 2007, the The department shall assess an annual fee, equal to the maximum annual fee prescribed by subdivision (e) of Section 12071.7, for the purposes of one hundred fifteen dollars ($115) to cover its costs of maintaining the centralized list of exempted federal firearms licensees prescribed in by subdivision (a), including the costs of inspection pursuant to subdivision (f), and for the cost of maintaining the firearm shipment verification number system described in subdivision (f) of Section 12072. The department may increase the fee at a rate not to exceed the increase in the California Consumer Price Index as compiled and reported by the Department of Industrial Relations. The fees collected shall be deposited in the Dealers' Record of Sale Special Account. (c) (1 )Any person listed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code as a dealer, pawnbroker, importer, or manufacturer of firearms whose licensed premises are within this state shall not import or receive firearms from any source unless listed on the centralized list of firearms dealers pursuant to Section 12071.7, or the centralized list of exempted federal firearms licensees pursuant to subdivision (a), or the centralized list of firearms manufacturers pursuant to subdivision (f) of Section 12086. (2) A violation of this subdivision is a misdemeanor. (d) (1) All persons on the centralized list of exempted federal firearms licensees prescribed by subdivision (a) shall record and keep on file for three years, the verification number that shall accompany firearms received from other federal firearms licensees pursuant to subdivision (f) of Section 12072. (2) A violation of this subdivision is cause for immediate removal from the centralized list. (e) (1) The department may make the following information from the centralized list described in subdivision (a) available to the public via the Internet: (A) The federal firearms license number. (B) The licensee's name. (C) The licensee's business name. (D) The business address. (2) The department may provide information from the centralized list described in subdivision (a) to local, state, and federal law enforcement agencies and the duly constituted city, county, and city and county licensing authorities. (f) The department may conduct onsite inspections at the business premises of person on the centralized list described in subdivision (a) to determine compliance with firearms laws pursuant to Article 4 (commencing with Section 12070) of Chapter 1 of Title 2 of Part 4 of the Penal Code. During the inspection the following firearm records shall be made available for review: (1) Federal records referred to in subdivision (a) of Section 478.125 of Title 27 of the Code of Federal Regulations and the bound book containing the same information referred to in Section 478.124a and subdivision (e) of Section 478.125 of Title 27 of the Code of Federal Regulations. (2) Verification numbers issued pursuant to subdivision (f) of Section 12072. (3) Any other records requested by the department to determine compliance with this article. (g) The department may remove from the centralized list described in subdivision (a), any person who violates this article. (h) The department may adopt regulations as necessary to carry out the provisions of this section, subdivision (f) of Section 12072, and Section 12071.7.