CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1038

Introduced by Senator Blakespear

February 06, 2024

An act to amend Sections 11108.3 and 25250 of, to amend, add, and repeal Section 26905 of, and to add Article 7 (commencing with Section 28495) to Chapter 6 of Division 6 of Title 4 of Part 6 of, the Penal Code, relating to firearms.


LEGISLATIVE COUNSEL'S DIGEST


SB 1038, as introduced, Blakespear. Firearms.
(1) Existing law, as enacted by the Safety for All Act of 2016, an initiative statute approved by voters as Proposition 63 at the November 8, 2016, statewide general election, requires a person to report the loss or theft of a firearm that the person owns or possesses to a local law enforcement agency in the jurisdiction in which the theft or loss occurred within 5 days of the time that the owner or possessor knew or should have known that the firearm had been stolen or lost, as specified.
Proposition 63 allows its provisions to be amended by a vote of 55% of the Legislature so long as the amendments are consistent with, and further the intent of, the act.
This bill would amend Proposition 63 by requiring a person to report the loss or theft within 2 days of the time that the owner or possessor knew or should have known that the firearm had been stolen or lost.
(2) Existing law directs law enforcement agencies to submit the description of a firearm that has been reported stolen, lost, found, recovered, or under observation directly to an automated Department of Justice system. Existing law requires these law enforcement agencies to report to the Department of Justice any information in their possession necessary to identify and trace the history of a recovered firearm that is illegally possessed, has been used in a crime, or is suspected of having been used in a crime. Existing law requires the department to analyze this data and to submit an annual report to the Legislature summarizing this analysis, as specified.
This bill would require the department to inspect the 25 firearm dealer locations in the annual report that are the source or origin of the most firearms that were illegally possessed, used in a crime, or suspected to have been used in a crime, as specified.
(3) Existing law generally regulates the sale and transfer of firearms, including, among other requirements, that every dealer keep a record of electronic or telephonic transfers of firearms.
This bill would require a firearm dealer to annually certify their inventory to a local law enforcement agency in their jurisdiction, as specified. The bill would authorize a city attorney or county counsel to impose a civil penalty on a person who violates this provision in the amount of $3,000 per day for the first violation, $5,000 per day for a 2nd violation, and $10,000 per day for a 3rd and subsequent violation, as specified.
(4) Existing law requires, with certain exceptions, a firearm dealer to report an acquisition of a firearm to the Department of Justice, as specified.
This bill would, commencing January 1, 2027, remove specified exceptions to those provisions.
Vote: 55%   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11108.3 of the Penal Code is amended to read:

11108.3.
 (a) In addition to the requirements of Section 11108.2 that apply to a law enforcement agency’s duty to report to the Department of Justice the recovery of a firearm, a law enforcement agency described in Section 11108.2 shall, and any other law enforcement agency or agent, including but not limited to a federal or tribal law enforcement agency or agent, may, report to the department in a manner determined by the Attorney General in consultation with the Bureau of Alcohol, Tobacco, Firearms and Explosives all available information necessary to identify and trace the history of all recovered firearms that are illegally possessed, have been used in a crime, or are suspected of having been used in a crime, within seven calendar days of obtaining the information.
(b) When the department receives information from a law enforcement agency pursuant to subdivision (a), it shall promptly forward this information to the National Tracing Center of the federal Bureau of Alcohol, Tobacco, Firearms and Explosives to the extent practicable.
(c) In implementing this section, the Attorney General shall ensure to the maximum extent practical that both of the following apply:
(1) The information provided to the federal Bureau of Alcohol, Tobacco, Firearms and Explosives enables that agency to trace the ownership of the firearm described in subdivision (a).
(2) Law enforcement agencies can report all relevant information without being unduly burdened by this reporting function.
(d) Information collected pursuant to this section shall be maintained by the department for a period of not less than 10 years, and shall be available, under guidelines set forth by the Attorney General, for academic and policy research purposes.
(e) The department shall, on an ongoing basis, analyze the information collected pursuant to this section for patterns and trends relating to recovered firearms that have been illegally possessed, used in a crime, or suspected to have been used in a crime, including the leading sources and origins of those firearms.
(f) (1) The department shall, by no later than July 1, 2023, and annually thereafter, prepare and submit a report to the Legislature summarizing the analysis completed pursuant to subdivision (e). This report shall be submitted in compliance with Section 9795 of the Government Code.
(2) The report shall, without limitation and to the extent possible, include all of the following:
(A) The total number of firearms recovered in the state.
(B) The number of firearms recovered, disaggregated by county and by city.
(C) The number of firearms recovered, disaggregated by the firearms dealer where the most recent sale or transfer of the firearm occurred. This shall include the full name and address of the firearms dealer.
(D) The number of firearms recovered, disaggregated by manufacturer.
(E) The total number of unserialized firearms recovered in the state.
(F) The number of unserialized firearms recovered, disaggregated by county and by city.
(3) The department shall make the report described in this subdivision available to the public.
(g) The Attorney General may issue regulations to further the purposes of this section.
(h) (1) The department shall inspect the 25 firearm dealer locations that are the source or origin of the most firearms that were illegally possessed, used in a crime, or suspected to have been used in a crime, as described in the report specified in subdivision (e) and submitted pursuant to subdivision (f) within the previous year.
(2) This subdivision does not require a dealer location to be inspected if an inspection has already been completed by the department within the previous year pursuant to Section 26720.

SEC. 2.

 Section 25250 of the Penal Code is amended to read:

25250.
 (a) Commencing July 1, 2017, every Every person shall report the loss or theft of a firearm he or she owns or possesses they own or possess to a local law enforcement agency in the jurisdiction in which the theft or loss occurred within five days of the time he or she two days of the time they knew or reasonably should have known that the firearm had been stolen or lost.
(b) Every person who has reported a firearm lost or stolen under subdivision (a) shall notify the local law enforcement agency in the jurisdiction in which the theft or loss occurred within five days if the firearm is subsequently recovered by the person.
(c) Notwithstanding subdivision (a), a person shall not be required to report the loss or theft of a firearm that is an antique firearm within the meaning of subdivision (c) of Section 16170.

SEC. 3.

 Section 26905 of the Penal Code is amended to read:

26905.
 (a) On the date of receipt, a licensee shall report to the Department of Justice, in a format prescribed by the department, the acquisition by the licensee of the ownership of a handgun, and commencing January 1, 2014, of any a firearm.
(b) The provisions of this section shall not apply to any of the following transactions:
(1) A transaction subject to the provisions of Sections 26960 and 27660.
(2) The dealer acquired the firearm from a wholesaler.
(3) The dealer acquired the firearm from a person who is licensed as a manufacturer or importer to engage in those activities pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and any regulations issued pursuant thereto. to those provisions.
(4) The dealer acquired the firearm from a person who resides outside this state who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and any regulations issued pursuant thereto. to those provisions.

(5)The dealer is also licensed as a secondhand dealer pursuant to Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code, acquires a handgun, and, commencing January 1, 2014, any firearm, and reports its acquisition pursuant to Section 21628.2 of the Business and Professions Code.

(5) When a dealer who is also licensed as a secondhand dealer, pursuant to Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code, acquires a firearm and reports its acquisition pursuant to Section 21628.2 of the Business and Professions Code.
(c) This section shall become inoperative on January 1, 2027, and as of that date is repealed.

SEC. 4.

 Section 26905 is added to the Penal Code, to read:

26905.
 (a) On the date of receipt, a licensee shall report to the Department of Justice, in a format prescribed by the department, the acquisition by the licensee of the ownership of a firearm.
(b) The provisions of this section shall not apply to any of the following transactions:
(1) A transaction subject to the provisions of Sections 26960 and 27660.
(2) When a dealer who is also licensed as a secondhand dealer, pursuant to Article 4 (commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code, acquires a firearm and reports its acquisition pursuant to Section 21628.2 of the Business and Professions Code.
(c) This section shall become operative on January 1, 2027.

SEC. 5.

 Article 7 (commencing with Section 28495) is added to Chapter 6 of Division 6 of Title 4 of Part 6 of the Penal Code, to read:
Article  7. Annual Reporting of Inventory by Dealers

28495.
 (a) (1) A firearm dealer shall annually certify their inventory to a local law enforcement agency in their jurisdiction.
(2) A firearm dealer shall include the make, model, and serial number of their entire inventory in the annual certification.
(b) A city attorney or county counsel may impose a civil penalty on a person who violates this section in the amount of three thousand dollars ($3,000) per day for the first violation, five thousand dollars ($5,000) per day for a second violation, and ten thousand dollars ($10,000) per day for a third and subsequent violation. Any civil penalties collected pursuant to this section shall be paid to the office of the city attorney or county counsel, whichever office brought the action.