AB 28: Firearms and ammunition: excise tax.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-09-26
Current Status:
Passed
(2023-09-26: Chaptered by Secretary of State - Chapter 231, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill imposes an 11% excise tax (a tax on sales) on retail sales in California of firearms, firearm precursor parts, and ammunition, paid by licensed dealers, manufacturers, and ammunition vendors, who must register with the state tax agency. Revenue would go into a new Gun Violence Prevention and School Safety Fund to pay for community violence intervention grants, school safety and mental‑health programs, court‑ordered firearm removal, victim services, law‑enforcement investigation support, and gun‑safety education and research.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention and School Safety Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention and School Safety Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified. The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a certificate, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention and School Safety Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention and School Safety Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified. The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a certificate, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified. The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a permit, certificate, as specified, and would, commencing on July 1, 2024, prohibit a licensed firearms dealer, firearms manufacturer, or ammunition vendor to operate without a valid permit, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified. The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a permit, as specified. specified, and would, commencing on July 1, 2024, prohibit a licensed firearms dealer, firearms manufacturer, or ammunition vendor to operate without a valid permit, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to, upon appropriation, to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified. The bill would require each licensed firearms dealer, firearms manufacturer, and ammunition vendor to register with the department for a permit, as specified. The bill would also provide procedures for the issuance, revocation, and reinstatement of a permit.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to, upon appropriation, be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law establishes the California Violence Intervention and Prevention (CalVIP) Grant Program, administered by the Board of State and Community Corrections, to award competitive grants for the purpose of violence intervention and prevention.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill, the Gun Violence Prevention, Healing, and Recovery Act, would, commencing July 1, 2024, impose an excise tax in the amount of 11% of the gross receipts from the retail sale in this state of a firearm, firearm precursor part, and ammunition, as specified. The tax would be collected by the state pursuant to the Fee Collection Procedures Law. The bill would require that the revenues collected be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, which the bill would establish in the State Treasury. The bill would require the moneys received in the fund to, upon appropriation, be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified. The bill would require the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the California Department of Tax and Fee Administration to implement these provisions, as specified.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
Because this bill would expand the scope of the Fee Collection Procedures Law, the violation of which is a crime, 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.
Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.This bill would state the intent of the Legislature to enact legislation that would enact a tax to fund measures to protect against gun violence on firearms and ammunition.Existing law imposes various taxes, including taxes on the privilege of engaging in certain activities. The Fee Collection Procedures Law, the violation of which is a crime, provides procedures for the collection of certain fees and surcharges.
This bill would state the intent of the Legislature to enact legislation that would enact a tax to fund measures to protect against gun violence on firearms and ammunition.
This act shall be known, and may be cited, as the Gun Violence Prevention and School Safety Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)The firearm industry has also enjoyed record growth and profits for years. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone.
(h)There has also been an unprecedented spike in shootings and gun homicides across the United States and California. According to CDC data from 2011 to 2021, the nationwide firearm homicide rate increased 85 percent.
(i)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(j)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(k)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(l)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(m)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(n)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(o)In the historical record, other states, including Mississippi (1844), North Carolina (1857), Georgia (1866), Alabama (1867), Hawaii (1870), Nebraska (1895), Florida (1898), Wyoming (1899), and Virginia (1926), have similarly enacted longstanding commercial, occupational, or other taxes on those selling, purchasing, or possessing firearms and other dangerous weapons.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
(r)In a report published in August 2023 by the American Academy of Pediatrics, researchers found that the increase in firearm purchasing during the pandemic increased the risk for pediatric firearm injury, resulting in a 41.6-percent increase in the firearm death rate for American children between 2018 and 2021. During this period, racial disparities in gun deaths also significantly worsened. According to the report, communities of color bore the brunt of this burden, with Black children comprising nearly 50 percent of children killed by firearms. Unlike other age demographics in the United States, nearly two-thirds of youth gun deaths were attributable to homicide, while less than one-third are attributed to death by firearm suicide. State variability in access to preventative strategies like violence intervention, suicide prevention, and firearm safety programs all contribute to disparities in pediatric firearm death rates. With this legislation, California affirms its commitment to increasing access to these vital preventative strategies, particularly in our states most vulnerable communities.
(s)The Legislature hereby adopts this act for the purpose of reducing and preventing gun violence, including by addressing risk factors for gun violence, and promoting healing and recovery for victims of gun violence, particularly in communities that are disproportionately impacted by shootings and gun homicides.
SEC. 3.Section 26700 of the Penal Code is amended to read:26700.As used in this division, and in any other provision listed in Section 16580, dealer, licensee, or person licensed pursuant to Sections 26700 to 26915, inclusive means a person who satisfies all of the following requirements:
(a)Has a valid federal firearms license.
(b)Has any regulatory or business license, or licenses, required by local government.
(c)Has a valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, has a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(d)Has a certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(e)Has a license issued in the format prescribed by subdivision (c) of Section 26705.
(f)Is among those recorded in the centralized list specified in Section 26715.
SEC. 4.Section 26705 of the Penal Code is amended to read:26705.(a)The duly constituted licensing authority of a city, county, or a city and county shall accept applications for, and may grant licenses permitting, licensees to sell firearms at retail within the city, county, or city and county. The duly constituted licensing authority shall inform applicants who are denied licenses of the reasons for the denial in writing.
(b)No license shall be granted to any applicant who fails to provide a copy of each of the following documents:
(1)A valid federal firearms license.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(c)A license granted by the duly constituted licensing authority of any city, county, or city and county, shall be valid for not more than one year from the date of issuance and shall be in one of the following forms:
(1)In the form prescribed by the Attorney General.
(2)A regulatory or business license that states on its face Valid for Retail Sales of Firearms and is endorsed by the signature of the issuing authority.
(3)A letter from the duly constituted licensing authority having primary jurisdiction for the applicants intended business location stating that the jurisdiction does not require any form of regulatory or business license or does not otherwise restrict or regulate the sale of firearms.
(d)Local licensing authorities may assess fees to recover their full costs of processing applications for licenses.
SEC. 5.Section 30395 of the Penal Code is amended to read:30395.(a)The Department of Justice is authorized to issue ammunition vendor licenses to applicants who the department has determined, either as an individual or a responsible person, are not prohibited from possessing, receiving, owning, or purchasing ammunition under subdivision (a) of Section 30305 or federal law, and who provide a copy of each of the following documents, as applicable:
(1)Any regulatory or business license required by local government.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A valid federal firearms license, if the person is so licensed.
(4)A certificate of eligibility issued by the Department of Justice.
(b)The department shall keep a registry of all licensed ammunition vendors. Law enforcement agencies shall be provided access to the registry for law enforcement purposes.
(c)An ammunition vendor license is subject to forfeiture for a breach of any of the prohibitions and requirements of Article 2 (commencing with Section 30300) or Article 3 (commencing with Section 30342).
SEC. 6.Chapter 3 (commencing with Section 34400) is added to Division 12 of Title 4 of Part 6 of the Penal Code, to read:3.Firearm and Ammunition Excise Tax Certificates of Registration34400.(a)The department may revoke any ammunition vendor license or remove any firearms dealer or firearms manufacturer from any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, upon notification from the California Department of Tax and Fee Administration that either of the following events has occurred:
(1)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked the licensees certificate of registration, pursuant to Section 36037 of the Revenue and Taxation Code, for violating any of the provisions of Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(2)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked or suspended the licensees sellers permit, pursuant to Section 6070 of the Revenue and Taxation Code, for violating any of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b)The Department of Justice may reinstate an ammunition vendor license that has been revoked pursuant to subdivision (a), or reinstate on any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, a firearms dealer or manufacturer that was removed from the centralized list pursuant to subdivision (a) if the California Department of Tax and Fee Administration has reinstated the licensees certificate of registration or the sellers permit, as applicable.
(c)The Department of Justices authority under this section to revoke or reinstate an ammunition vendor license, or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list shall be in addition to the Department of Justices authority to revoke or reinstate an ammunition vendor license or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list under any other statute or authority.
(d)The Department of Justice may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this section.
SEC. 7.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, and firearm precursor part.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearm shall have the same meaning as that term is defined in subdivisions (a) and (b) of Section 16520 of the Penal Code.
(d)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(e)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(f)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(g)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(h)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(i)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention and School Safety Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention and School Safety Fund, including interest or dividends earned by the fund, shall be distributed annually in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention and School Safety Fund shall be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be continuously appropriated annually to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next fifty million dollars ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the State Department of Education to enhance school safety by addressing risk factors for gun violence affecting pupils in kindergarten through grade 12, through the funding of related measures, including, without limitation, the measures described in subparagraphs (A) to (D), inclusive. The department may utilize these funds to support both activities conducted directly by the department and those conducted through contracts with, or grants to, other entities.
(A)Physical security improvements.
(B)Physical safety assessments.
(C)School-based or school-linked mental health and behavioral services, including training for teachers and employees.
(D)Before school and after school programs for at-risk pupils, including programs offered by entities eligible to receive funding under the Bipartisan Safer Communities Act Stronger Connections Grant Program.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to be administered in coordination with the Department of Justice to ensure the prompt, consistent, and safe removal of firearms by the Department of Justice and local law enforcement agencies from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to a criminal conviction or other criminal or civil court order, including, but not limited to, criminal protective orders, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders. The grant program shall be designed to reduce the number of people who are entered into or remain in the Armed Prohibited Persons System, including by supporting partnerships with courts and local law enforcement agencies.
(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to fund a victims of gun violence grant program. The purpose of this program is to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults, and thereby help reduce gun violence in communities across California. Grants from this program shall be made on a competitive basis to state, local, or tribal law enforcement agencies and prosecuting offices for activities that have the specific objective of increasing clearance rates for firearm homicides and nonfatal shootings, which may include, without limitation, hiring and training detectives dedicated to investigating these offenses, hiring and training personnel or other partners to coordinate with victims and witnesses or to collect, process, and test relevant evidence, improving data analysis, forensics, and technological capacities, and promoting recurring and trauma-informed engagement with victims, witnesses, and other impacted community members in a manner that builds trust, safety, and collaboration.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders. The department may utilize these funds to support activities conducted directly by the department or conducted through contracts with, or grants to, other entities.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence. The office may utilize these funds to support activities directly conducted by the office, or conducted through contracts with, or grants to, other entities, and to help reduce gun violence in communities across California.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall, upon appropriation by the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
(e)Except as otherwise provided herein or in any other provision of law, a department or agency may reserve up to 5 percent of the funds appropriated to that department or agency under subdivision (c) for the costs of administering and promoting the effectiveness of programs supported by this act, including, without limitation, costs to employ personnel, develop and review grant solicitations, publicize grant opportunities, engage with and provide technical assistance to prospective grant applicants and grantees, and conduct or support data collection or research evaluations.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36034.(a)By no later than March 31, 2024, and thereafter, by no later than the last day of each calendar quarter, the Department of Justice (DOJ) shall provide a list, including the names and business locations of all firearm dealers, firearm manufacturers, and ammunition vendors that are licensed by the DOJ or that are included on any of the centralized lists maintained by the DOJ pursuant to Sections 26715, 28450, and 29060 of the Penal Code, to the California Department of Tax and Fee Administration (CDTFA) for the purposes of administering the excise tax imposed pursuant to this part. The DOJ shall also be authorized to provide this information to the CDTFA, upon its request, for the purposes of administering the excise tax imposed pursuant to this part.
(b)The authority of the DOJ to share the information described in subdivision (a) with the CDTFA shall be in addition to, and notwithstanding any other limitations on, the authority of the DOJ to share that information under any other statute.
36035.Each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the excise tax imposed pursuant to this part shall register for a certificate of registration with the department using electronic media in a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require. An application for a certificate of registration shall be authenticated in a form or pursuant to methods as may be prescribed by the department. No fee shall be charged for the application for, or issuance of, the certificate of registration.
36036.The department shall issue a certificate of registration to each eligible applicant that has properly registered pursuant to Section 36035. A certificate of registration issued pursuant to this section shall be valid until canceled or revoked.
36037.If the holder of a certificate of registration fails to comply with any provision of this part or any rule or regulation of the department prescribed and adopted under this part, the department shall provide notice in writing to the holder of the certificate of registration specifying the time and place of hearing and requiring the certificate holder to show cause why their certificate should not be revoked. The notice shall be provided no less than 10 days before the hearing and may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The department may, after notice and hearing, revoke a certificate of registration for any such violation or omission, and notify the Department of Justice of the revocation.
36038.The department shall notify the Department of Justice in the case of any of the following occurrences:
(a)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 36037, revoked the certificate of registration of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of this part.
(b)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 6070, revoked or suspended the sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of Part 1 (commencing with Section 6001).
(c)If the department has reinstated a certificate of registration or a sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer.
36039.(a)The holder of a certificate of registration that has had their certificate revoked pursuant to Section 36037 may petition the department for reinstatement of the certificate by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this part, and paying a fee of fifty dollars ($50) to the department for reinstatement.
(b)The department shall reinstate the certificate of registration of any revoked certificate holder that has satisfactorily complied with subdivision (a).
(c)The fee described in subdivision (a) shall not be subject to refund except as provided in Section 55221.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention and School Safety Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention and School Safety Fund.
SEC. 8.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 10.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention and School Safety Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)The firearm industry has also enjoyed record growth and profits for years. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone.
(h)There has also been an unprecedented spike in shootings and gun homicides across the United States and California. According to CDC data from 2011 to 2021, the nationwide firearm homicide rate increased 85 percent.
(i)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(j)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(k)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(l)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(m)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(n)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(o)In the historical record, other states, including Mississippi (1844), North Carolina (1857), Georgia (1866), Alabama (1867), Hawaii (1870), Nebraska (1895), Florida (1898), Wyoming (1899), and Virginia (1926), have similarly enacted longstanding commercial, occupational, or other taxes on those selling, purchasing, or possessing firearms and other dangerous weapons.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
(r)In a report published in August 2023 by the American Academy of Pediatrics, researchers found that the increase in firearm purchasing during the pandemic increased the risk for pediatric firearm injury, resulting in a 41.6-percent increase in the firearm death rate for American children between 2018 and 2021. During this period, racial disparities in gun deaths also significantly worsened. According to the report, communities of color bore the brunt of this burden, with Black children comprising nearly 50 percent of children killed by firearms. Unlike other age demographics in the United States, nearly two-thirds of youth gun deaths were attributable to homicide, while less than one-third are attributed to death by firearm suicide. State variability in access to preventative strategies like violence intervention, suicide prevention, and firearm safety programs all contribute to disparities in pediatric firearm death rates. With this legislation, California affirms its commitment to increasing access to these vital preventative strategies, particularly in our states most vulnerable communities.
(s)The Legislature hereby adopts this act for the purpose of reducing and preventing gun violence, including by addressing risk factors for gun violence, and promoting healing and recovery for victims of gun violence, particularly in communities that are disproportionately impacted by shootings and gun homicides.
SEC. 3.Section 26700 of the Penal Code is amended to read:26700.As used in this division, and in any other provision listed in Section 16580, dealer, licensee, or person licensed pursuant to Sections 26700 to 26915, inclusive means a person who satisfies all of the following requirements:
(a)Has a valid federal firearms license.
(b)Has any regulatory or business license, or licenses, required by local government.
(c)Has a valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, has a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(d)Has a certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(e)Has a license issued in the format prescribed by subdivision (c) of Section 26705.
(f)Is among those recorded in the centralized list specified in Section 26715.
SEC. 4.Section 26705 of the Penal Code is amended to read:26705.(a)The duly constituted licensing authority of a city, county, or a city and county shall accept applications for, and may grant licenses permitting, licensees to sell firearms at retail within the city, county, or city and county. The duly constituted licensing authority shall inform applicants who are denied licenses of the reasons for the denial in writing.
(b)No license shall be granted to any applicant who fails to provide a copy of each of the following documents:
(1)A valid federal firearms license.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(c)A license granted by the duly constituted licensing authority of any city, county, or city and county, shall be valid for not more than one year from the date of issuance and shall be in one of the following forms:
(1)In the form prescribed by the Attorney General.
(2)A regulatory or business license that states on its face Valid for Retail Sales of Firearms and is endorsed by the signature of the issuing authority.
(3)A letter from the duly constituted licensing authority having primary jurisdiction for the applicants intended business location stating that the jurisdiction does not require any form of regulatory or business license or does not otherwise restrict or regulate the sale of firearms.
(d)Local licensing authorities may assess fees to recover their full costs of processing applications for licenses.
SEC. 5.Section 30395 of the Penal Code is amended to read:30395.(a)The Department of Justice is authorized to issue ammunition vendor licenses to applicants who the department has determined, either as an individual or a responsible person, are not prohibited from possessing, receiving, owning, or purchasing ammunition under subdivision (a) of Section 30305 or federal law, and who provide a copy of each of the following documents, as applicable:
(1)Any regulatory or business license required by local government.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A valid federal firearms license, if the person is so licensed.
(4)A certificate of eligibility issued by the Department of Justice.
(b)The department shall keep a registry of all licensed ammunition vendors. Law enforcement agencies shall be provided access to the registry for law enforcement purposes.
(c)An ammunition vendor license is subject to forfeiture for a breach of any of the prohibitions and requirements of Article 2 (commencing with Section 30300) or Article 3 (commencing with Section 30342).
SEC. 6.Chapter 3 (commencing with Section 34400) is added to Division 12 of Title 4 of Part 6 of the Penal Code, to read:3.Firearm and Ammunition Excise Tax Certificates of Registration34400.(a)The department may revoke any ammunition vendor license or remove any firearms dealer or firearms manufacturer from any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, upon notification from the California Department of Tax and Fee Administration that either of the following events has occurred:
(1)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked the licensees certificate of registration, pursuant to Section 36037 of the Revenue and Taxation Code, for violating any of the provisions of Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(2)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked or suspended the licensees sellers permit, pursuant to Section 6070 of the Revenue and Taxation Code, for violating any of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b)The Department of Justice may reinstate an ammunition vendor license that has been revoked pursuant to subdivision (a), or reinstate on any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, a firearms dealer or manufacturer that was removed from the centralized list pursuant to subdivision (a) if the California Department of Tax and Fee Administration has reinstated the licensees certificate of registration or the sellers permit, as applicable.
(c)The Department of Justices authority under this section to revoke or reinstate an ammunition vendor license, or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list shall be in addition to the Department of Justices authority to revoke or reinstate an ammunition vendor license or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list under any other statute or authority.
(d)The Department of Justice may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this section.
SEC. 7.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, and firearm precursor part.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearm shall have the same meaning as that term is defined in subdivisions (a) and (b) of Section 16520 of the Penal Code.
(d)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(e)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(f)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(g)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(h)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(i)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention and School Safety Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention and School Safety Fund, including interest or dividends earned by the fund, shall be distributed annually in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention and School Safety Fund shall be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be continuously appropriated annually to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next fifty million dollars ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the State Department of Education to enhance school safety by addressing risk factors for gun violence affecting pupils in kindergarten through grade 12, through the funding of related measures, including, without limitation, the measures described in subparagraphs (A) to (D), inclusive. The department may utilize these funds to support both activities conducted directly by the department and those conducted through contracts with, or grants to, other entities.
(A)Physical security improvements.
(B)Physical safety assessments.
(C)School-based or school-linked mental health and behavioral services, including training for teachers and employees.
(D)Before school and after school programs for at-risk pupils, including programs offered by entities eligible to receive funding under the Bipartisan Safer Communities Act Stronger Connections Grant Program.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to be administered in coordination with the Department of Justice to ensure the prompt, consistent, and safe removal of firearms by the Department of Justice and local law enforcement agencies from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to a criminal conviction or other criminal or civil court order, including, but not limited to, criminal protective orders, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders. The grant program shall be designed to reduce the number of people who are entered into or remain in the Armed Prohibited Persons System, including by supporting partnerships with courts and local law enforcement agencies.
(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to fund a victims of gun violence grant program. The purpose of this program is to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults, and thereby help reduce gun violence in communities across California. Grants from this program shall be made on a competitive basis to state, local, or tribal law enforcement agencies and prosecuting offices for activities that have the specific objective of increasing clearance rates for firearm homicides and nonfatal shootings, which may include, without limitation, hiring and training detectives dedicated to investigating these offenses, hiring and training personnel or other partners to coordinate with victims and witnesses or to collect, process, and test relevant evidence, improving data analysis, forensics, and technological capacities, and promoting recurring and trauma-informed engagement with victims, witnesses, and other impacted community members in a manner that builds trust, safety, and collaboration.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders. The department may utilize these funds to support activities conducted directly by the department or conducted through contracts with, or grants to, other entities.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence. The office may utilize these funds to support activities directly conducted by the office, or conducted through contracts with, or grants to, other entities, and to help reduce gun violence in communities across California.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall, upon appropriation by the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
(e)Except as otherwise provided herein or in any other provision of law, a department or agency may reserve up to 5 percent of the funds appropriated to that department or agency under subdivision (c) for the costs of administering and promoting the effectiveness of programs supported by this act, including, without limitation, costs to employ personnel, develop and review grant solicitations, publicize grant opportunities, engage with and provide technical assistance to prospective grant applicants and grantees, and conduct or support data collection or research evaluations.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36034.(a)By no later than March 31, 2024, and thereafter, by no later than the last day of each calendar quarter, the Department of Justice (DOJ) shall provide a list, including the names and business locations of all firearm dealers, firearm manufacturers, and ammunition vendors that are licensed by the DOJ or that are included on any of the centralized lists maintained by the DOJ pursuant to Sections 26715, 28450, and 29060 of the Penal Code, to the California Department of Tax and Fee Administration (CDTFA) for the purposes of administering the excise tax imposed pursuant to this part. The DOJ shall also be authorized to provide this information to the CDTFA, upon its request, for the purposes of administering the excise tax imposed pursuant to this part.
(b)The authority of the DOJ to share the information described in subdivision (a) with the CDTFA shall be in addition to, and notwithstanding any other limitations on, the authority of the DOJ to share that information under any other statute.
36035.Each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the excise tax imposed pursuant to this part shall register for a certificate of registration with the department using electronic media in a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require. An application for a certificate of registration shall be authenticated in a form or pursuant to methods as may be prescribed by the department. No fee shall be charged for the application for, or issuance of, the certificate of registration.
36036.The department shall issue a certificate of registration to each eligible applicant that has properly registered pursuant to Section 36035. A certificate of registration issued pursuant to this section shall be valid until canceled or revoked.
36037.If the holder of a certificate of registration fails to comply with any provision of this part or any rule or regulation of the department prescribed and adopted under this part, the department shall provide notice in writing to the holder of the certificate of registration specifying the time and place of hearing and requiring the certificate holder to show cause why their certificate should not be revoked. The notice shall be provided no less than 10 days before the hearing and may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The department may, after notice and hearing, revoke a certificate of registration for any such violation or omission, and notify the Department of Justice of the revocation.
36038.The department shall notify the Department of Justice in the case of any of the following occurrences:
(a)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 36037, revoked the certificate of registration of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of this part.
(b)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 6070, revoked or suspended the sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of Part 1 (commencing with Section 6001).
(c)If the department has reinstated a certificate of registration or a sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer.
36039.(a)The holder of a certificate of registration that has had their certificate revoked pursuant to Section 36037 may petition the department for reinstatement of the certificate by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this part, and paying a fee of fifty dollars ($50) to the department for reinstatement.
(b)The department shall reinstate the certificate of registration of any revoked certificate holder that has satisfactorily complied with subdivision (a).
(c)The fee described in subdivision (a) shall not be subject to refund except as provided in Section 55221.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention and School Safety Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention and School Safety Fund.
SEC. 8.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 10.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)Even the most responsible members of the firearm and ammunition industry profit from commerce in uniquely lethal products that are commonly used to cause death and injury in this state, while enjoying unique exemptions and immunities under federal law from many forms of civil liability, accountability, and product safety regulation that might otherwise incentivize safer business conduct and mitigation efforts.(h)(g)The firearm industry has also enjoyed windfall profits on top of sustained long-term growth at a time of record nationwide spikes in shootings and gun homicides. record growth and profits for years. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone. Federal Bureau of Investigation National Instant Criminal Background Check System (FBI NICS) background check data indicates that as of January 31, 2023, 7 out of the top 10 days with the highest volume of firearm background checks on record occurred in 2021 or 2022. In California, gun sales increased 56 percent from 2019 to 2020. The number of people with at least one firearm acquisition recorded in California Department of Justice records increased by over 20 percent between January 1, 2020, and January 1, 2022.
(i)This surge in firearm and ammunition sales and profits has occurred alongside(h)There has also been an unprecedented spike in shootings and gun homicides across the United States and California. As the firearm industry has gained record profits, California and local taxpayers have faced increased costs and economic harms as a consequence, while more families and communities have suffered the brutal loss or victimization of a loved one. According to CDC data from 2011 to 2021, the nationwide firearm homicide rate increased 85 percent.
(j)(i)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(k)(j)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(l)(k)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(m)(l)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(n)(m)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(o)(n)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(o)In the historical record, other states, including Mississippi (1844), North Carolina (1857), Georgia (1866), Alabama (1867), Hawaii (1870), Nebraska (1895), Florida (1898), Wyoming (1899), and Virginia (1926), have similarly enacted longstanding commercial, occupational, or other taxes on those selling, purchasing, or possessing firearms and other dangerous weapons.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
(r)In a report published in August 2023 by the American Academy of Pediatrics, researchers found that the increase in firearm purchasing during the pandemic increased the risk for pediatric firearm injury, resulting in a 41.6-percent increase in the firearm death rate for American children between 2018 and 2021. During this period, racial disparities in gun deaths also significantly worsened. According to the report, communities of color bore the brunt of this burden, with Black children comprising nearly 50 percent of children killed by firearms. Unlike other age demographics in the United States, nearly two-thirds of youth gun deaths were attributable to homicide, while less than one-third are attributed to death by firearm suicide. State variability in access to preventative strategies like violence intervention, suicide prevention, and firearm safety programs all contribute to disparities in pediatric firearm death rates. With this legislation, California affirms its commitment to increasing access to these vital preventative strategies, particularly in our states most vulnerable communities.
(s)The Legislature hereby adopts this act for the purpose of reducing and preventing gun violence, including by addressing risk factors for gun violence, and promoting healing and recovery for victims of gun violence, particularly in communities that are disproportionately impacted by shootings and gun homicides.
SEC. 3.Section 26700 of the Penal Code is amended to read:26700.As used in this division, and in any other provision listed in Section 16580, dealer, licensee, or person licensed pursuant to Sections 26700 to 26915, inclusive means a person who satisfies all of the following requirements:
(a)Has a valid federal firearms license.
(b)Has any regulatory or business license, or licenses, required by local government.
(c)Has a valid sellers permit issued by the State Board of Equalization. California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, has a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(d)Has a certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(e)Has a license issued in the format prescribed by subdivision (c) of Section 26705.
(f)Is among those recorded in the centralized list specified in Section 26715.
SEC. 4.Section 26705 of the Penal Code is amended to read:26705.(a)The duly constituted licensing authority of a city, county, or a city and county shall accept applications for, and may grant licenses permitting, licensees to sell firearms at retail within the city, county, or city and county. The duly constituted licensing authority shall inform applicants who are denied licenses of the reasons for the denial in writing.
(b)No license shall be granted to any applicant who fails to provide a copy of the applicants valid federal firearms license, valid sellers permit issued by the State Board of Equalization, and the certificate of eligibility described in Section 26710. each of the following documents:
(1)A valid federal firearms license.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(c)A license granted by the duly constituted licensing authority of any city, county, or city and county, shall be valid for not more than one year from the date of issuance and shall be in one of the following forms:
(1)In the form prescribed by the Attorney General.
(2)A regulatory or business license that states on its face Valid for Retail Sales of Firearms and is endorsed by the signature of the issuing authority.
(3)A letter from the duly constituted licensing authority having primary jurisdiction for the applicants intended business location stating that the jurisdiction does not require any form of regulatory or business license or does not otherwise restrict or regulate the sale of firearms.
(d)Local licensing authorities may assess fees to recover their full costs of processing applications for licenses.
SEC. 5.Section 30395 of the Penal Code is amended to read:30395.(a)The Department of Justice is authorized to issue ammunition vendor licenses to applicants who the department has determined, either as an individual or a responsible person, are not prohibited from possessing, receiving, owning, or purchasing ammunition under subdivision (a) of Section 30305 or federal law, and who provide a copy of any regulatory or business license required by local government, a valid sellers permit issued by the State Board of Equalization, a federal firearms license if the person is federally licensed, and a certificate of eligibility issued by the department. each of the following documents, as applicable:
(1)Any regulatory or business license required by local government.
(2)A valid sellers permit issued by the California Department of Tax and Fee Administration pursuant to Section 6067 of the Revenue and Taxation Code and, commencing July 1, 2024, a valid certificate of registration issued pursuant to Section 36036 of the Revenue and Taxation Code.
(3)A valid federal firearms license, if the person is so licensed.
(4)A certificate of eligibility issued by the Department of Justice.
(b)The department shall keep a registry of all licensed ammunition vendors. Law enforcement agencies shall be provided access to the registry for law enforcement purposes.
(c)An ammunition vendor license is subject to forfeiture for a breach of any of the prohibitions and requirements of Article 2 (commencing with Section 30300) or Article 3 (commencing with Section 30342).
SEC. 6.Chapter 3 (commencing with Section 34400) is added to Division 12 of Title 4 of Part 6 of the Penal Code, to read:3.Firearm and Ammunition Excise Tax Certificates of Registration34400.(a)The department may revoke any ammunition vendor license or remove any firearms dealer or firearms manufacturer from any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, upon notification from the California Department of Tax and Fee Administration that either of the following events has occurred:
(1)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked the licensees certificate of registration, pursuant to Section 36037 of the Revenue and Taxation Code, for violating any of the provisions of Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(2)After providing notice and the opportunity for a hearing, the California Department of Tax and Fee Administration has revoked or suspended the licensees sellers permit, pursuant to Section 6070 of the Revenue and Taxation Code, for violating any of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b)The Department of Justice may reinstate an ammunition vendor license that has been revoked pursuant to subdivision (a), or reinstate on any centralized list maintained by the department pursuant to Sections 26715, 28450, and 29060, a firearms dealer or manufacturer that was removed from the centralized list pursuant to subdivision (a) if the California Department of Tax and Fee Administration has reinstated the licensees certificate of registration or the sellers permit, as applicable.
(c)The Department of Justices authority under this section to revoke or reinstate an ammunition vendor license, or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list shall be in addition to the Department of Justices authority to revoke or reinstate an ammunition vendor license or to remove or reinstate a firearms dealer or firearms manufacturer from a centralized list under any other statute or authority.
(d)The Department of Justice may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this section.
SEC. 3.SEC. 7.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, firearm, and firearm precursor part, handgun, long gun, and rifle. part.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearm shall have the same meaning as that term is defined in subdivisions (a) and (b) of Section 16520 of the Penal Code.
(c)(d)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(d)(e)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(e)(f)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(f)(g)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(g)(h)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(h)(i)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund, including interest or dividends earned by the fund, shall be distributed annually in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund shall be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be continuously appropriated annually to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next fifty million dollars ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments. enhance school safety by addressing risk factors for gun violence affecting pupils in kindergarten through grade 12, through the funding of related measures, including, without limitation, the measures described in subparagraphs (A) to (D), inclusive. The department may utilize these funds to support both activities conducted directly by the department and those conducted through contracts with, or grants to, other entities.
(A)Physical security improvements.
(B)Physical safety assessments.
(C)School-based or school-linked mental health and behavioral services, including training for teachers and employees.
(D)Before school and after school programs for at-risk pupils, including programs offered by entities eligible to receive funding under the Bipartisan Safer Communities Act Stronger Connections Grant Program.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to be administered in coordination with the Department of Justice to ensure the consistent prompt, consistent, and safe removal of firearms by the Department of Justice and local law enforcement agencies from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to a criminal conviction or other criminal or civil court order, including, but not limited to, criminal protective orders, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders. The grant program shall be designed to reduce the number of people who are entered into or remain in the Armed Prohibited Persons System, including by supporting partnerships with courts and local law enforcement agencies.
(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice for a justice for victims of gun violence program to fund a victims of gun violence grant program. The purpose of this program is to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults. assaults, and thereby help reduce gun violence in communities across California. Grants from this program shall be made on a competitive basis to state, local, or tribal law enforcement agencies and prosecuting offices for activities that have the specific objective of increasing clearance rates for firearm homicides and nonfatal shootings, which may include, without limitation, hiring and training detectives dedicated to investigating these offenses, hiring and training personnel or other partners to coordinate with victims and witnesses or to collect, process, and test relevant evidence, improving data analysis, forensics, and technological capacities, and promoting recurring and trauma-informed engagement with victims, witnesses, and other impacted community members in a manner that builds trust, safety, and collaboration.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders. The department may utilize these funds to support activities conducted directly by the department or conducted through contracts with, or grants to, other entities.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence. The office may utilize these funds to support activities directly conducted by the office, or conducted through contracts with, or grants to, other entities, and to help reduce gun violence in communities across California.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall, upon appropriation by the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
(e)Except as otherwise provided herein or in any other provision of law, a department or agency may reserve up to 5 percent of the funds appropriated to that department or agency under subdivision (c) for the costs of administering and promoting the effectiveness of programs supported by this act, including, without limitation, costs to employ personnel, develop and review grant solicitations, publicize grant opportunities, engage with and provide technical assistance to prospective grant applicants and grantees, and conduct or support data collection or research evaluations.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36034.(a)By no later than March 31, 2024, and thereafter, by no later than the last day of each calendar quarter, the Department of Justice (DOJ) shall provide a list, including the names and business locations of all firearm dealers, firearm manufacturers, and ammunition vendors that are licensed by the DOJ or that are included on any of the centralized lists maintained by the DOJ pursuant to Sections 26715, 28450, and 29060 of the Penal Code, to the California Department of Tax and Fee Administration (CDTFA) for the purposes of administering the excise tax imposed pursuant to this part. The DOJ shall also be authorized to provide this information to the CDTFA, upon its request, for the purposes of administering the excise tax imposed pursuant to this part.
(b)The authority of the DOJ to share the information described in subdivision (a) with the CDTFA shall be in addition to, and notwithstanding any other limitations on, the authority of the DOJ to share that information under any other statute.
36035.Each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the provisions of this excise tax imposed pursuant to this part shall register for a permit certificate of registration with the department using electronic media in a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require. An application for a permit certificate of registration shall be authenticated in a form or pursuant to methods as may be prescribed by the department. No fee shall be charged for the application for, or issuance of, the certificate of registration.
36036.The department shall issue a permit certificate of registration to each eligible applicant that has properly registered pursuant to Section 36035. A permit certificate of registration issued pursuant to this section shall be valid until canceled or revoked.
36037.If a permitholder the holder of a certificate of registration fails to comply with any provision of this part or any rule or regulation of the department prescribed and adopted under this part, the department shall provide notice in writing to the permitholder of no less than 10 days holder of the certificate of registration specifying the time and place of hearing and requiring the permitholder certificate holder to show cause why their permit certificate should not be revoked. The notice shall be provided no less than 10 days before the hearing and may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The department may, after notice and hearing, revoke a permit certificate of registration for any such violation or omission. omission, and notify the Department of Justice of the revocation.
36038.Commencing on July 1, 2024, it is unlawful for any person who has not registered for a permit or whose permit has been canceled or revoked to operate as a firearm dealer, firearm manufacturer, or ammunition vendor in this state until they have fully complied with the provisions of this part and have been issued a new permit or their permit has been reinstated.36038.The department shall notify the Department of Justice in the case of any of the following occurrences:
(a)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 36037, revoked the certificate of registration of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of this part.
(b)If, after providing notice and the opportunity for a hearing, the department has, pursuant to Section 6070, revoked or suspended the sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer for violating any provision of Part 1 (commencing with Section 6001).
(c)If the department has reinstated a certificate of registration or a sellers permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer.
36039.(a)A permitholder The holder of a certificate of registration that has had their permit certificate revoked pursuant to Section 36037 may petition the department for reinstatement of the permit certificate by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this part, and paying a fee of fifty dollars ($50) to the department for reinstatement.
(b)The department shall reinstate the permit certificate of registration of any revoked permitholder certificate holder that has satisfactorily complied with subdivision (a).
(c)The fee described in subdivision (a) shall not be subject to refund except as provided in Section 55221.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention, Healing, and Recovery Prevention and School Safety Fund.
SEC. 4.SEC. 8.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 5.SEC. 9.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.SEC. 10.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention, Healing, and Recovery Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)Even the most responsible members of the firearm and ammunition industry profit from commerce in uniquely lethal products that are commonly used to cause death and injury in this state, while enjoying unique exemptions and immunities under federal law from many forms of civil liability, accountability, and product safety regulation that might otherwise incentivize safer business conduct and mitigation efforts.
(h)The firearm industry has also enjoyed windfall profits on top of sustained long-term growth at a time of record nationwide spikes in shootings and gun homicides. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone. Federal Bureau of Investigation National Instant Criminal Background Check System (FBI NICS) background check data indicates that as of January 31, 2023, 7 out of the top 10 days with the highest volume of firearm background checks on record occurred in 2021 or 2022. In California, gun sales increased 56 percent from 2019 to 2020. The number of people with at least one firearm acquisition recorded in California Department of Justice records increased by over 20 percent between January 1, 2020, and January 1, 2022.
(i)This surge in firearm and ammunition sales and profits has occurred alongside an unprecedented spike in shootings and gun homicides across the United States and California. As the firearm industry has gained record profits, California and local taxpayers have faced increased costs and economic harms as a consequence, while more families and communities have suffered the brutal loss or victimization of a loved one.
(j)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(k)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(l)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(m)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(n)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(o)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
SEC. 3.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, firearm, firearm precursor part, handgun, long gun, and rifle.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(d)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(e)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(f)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(g)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(h)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention, Healing, and Recovery Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention, Healing, and Recovery Fund, including interest or dividends earned by the fund, shall be distributed in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention, Healing, and Recovery Fund shall be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be continuously appropriated annually to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next fifty million dollars ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall, upon appropriation by the Legislature, be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall, upon appropriation by the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36035.Each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the provisions of this part shall register for a permit with the department using electronic media in a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require. An application for a permit shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36036.The department shall issue a permit to each eligible applicant that has properly registered pursuant to Section 36035. A permit issued pursuant to this section shall be valid until canceled or revoked.
36037.If a permitholder fails to comply with any provision of this part or any rule or regulation of the department prescribed and adopted under this part, the department shall provide notice in writing to the permitholder of no less than 10 days specifying the time and place of hearing and requiring the permitholder to show cause why their permit should not be revoked. The notice may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The department may, after notice and hearing, revoke a permit for any such violation or omission.
36038.Commencing on July 1, 2024, it is unlawful for any person who has not registered for a permit or whose permit has been canceled or revoked to operate as a firearm dealer, firearm manufacturer, or ammunition vendor in this state until they have fully complied with the provisions of this part and have been issued a new permit or their permit has been reinstated.
36039.(a)A permitholder that has had their permit revoked pursuant to Section 36037 may petition the department for reinstatement of the permit by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this part, and paying a fee of fifty dollars ($50) to the department for reinstatement.
(b)The department shall reinstate the permit of any revoked permitholder that has satisfactorily complied with subdivision (a).
(c)The fee described in subdivision (a) shall not be subject to refund except as provided in Section 55221.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention, Healing, and Recovery Fund.
SEC. 4.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention, Healing, and Recovery Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)Even the most responsible members of the firearm and ammunition industry profit from commerce in uniquely lethal products that are commonly used to cause death and injury in this state, while enjoying unique exemptions and immunities under federal law from many forms of civil liability, accountability, and product safety regulation that might otherwise incentivize safer business conduct and mitigation efforts.
(h)The firearm industry has also enjoyed windfall profits on top of sustained long-term growth at a time of record nationwide spikes in shootings and gun homicides. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone. Federal Bureau of Investigation National Instant Criminal Background Check System (FBI NICS) background check data indicates that as of January 31, 2023, 7 out of the top 10 days with the highest volume of firearm background checks on record occurred in 2021 or 2022. In California, gun sales increased 56 percent from 2019 to 2020. The number of people with at least one firearm acquisition recorded in California Department of Justice records increased by over 20 percent between January 1, 2020, and January 1, 2022.
(i)This surge in firearm and ammunition sales and profits has occurred alongside an unprecedented spike in shootings and gun homicides across the United States and California. As the firearm industry has gained record profits, California and local taxpayers have faced increased costs and economic harms as a consequence, while more families and communities have suffered the brutal loss or victimization of a loved one.
(j)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(k)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(l)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(m)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(n)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(o)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
SEC. 3.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, firearm, firearm precursor part, handgun, long gun, and rifle.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(d)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(e)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(f)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(g)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(h)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention, Healing, and Recovery Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention, Healing, and Recovery Fund, including interest or dividends earned by the fund, shall, upon appropriation by the Legislature, shall be distributed in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention, Healing, and Recovery Fund shall, upon appropriation by the Legislature, shall be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be annually allocated continuously appropriated annually to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next fifty million dollars ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall shall, upon appropriation by the Legislature, be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall shall, upon appropriation by the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36035.Each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the provisions of this part shall register for a permit with the department using electronic media in a form prescribed by the department and shall set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require. An application for a permit shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
36036.The department shall issue a permit to each eligible applicant that has properly registered pursuant to Section 36035. A permit issued pursuant to this section shall be valid until canceled or revoked.
36037.If a permitholder fails to comply with any provision of this part or any rule or regulation of the department prescribed and adopted under this part, the department shall provide notice in writing to the permitholder of no less than 10 days specifying the time and place of hearing and requiring the permitholder to show cause why their permit should not be revoked. The notice may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. The department may, after notice and hearing, revoke a permit for any such violation or omission.
36039.(a)A permitholder that has had their permit revoked pursuant to Section 36037 may petition the department for reinstatement of the permit by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance with the provisions of this part, and paying a fee of fifty dollars ($50) to the department for reinstatement.
(b)The department shall reinstate the permit of any revoked permitholder that has satisfactorily complied with subdivision (a).
(c)The fee described in subdivision (a) shall not be subject to refund except as provided in Section 55221.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention, Healing, and Recovery Fund.
SEC. 4.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention, Healing, and Recovery Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)Even the most responsible members of the firearm and ammunition industry profit from commerce in uniquely lethal products that are commonly used to cause death and injury in this state, while enjoying unique exemptions and immunities under federal law from many forms of civil liability, accountability, and product safety regulation that might otherwise incentivize safer business conduct and mitigation efforts.
(h)The firearm industry has also enjoyed windfall profits on top of sustained long-term growth at a time of record nationwide spikes in shootings and gun homicides. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone. Federal Bureau of Investigation National Instant Criminal Background Check System (FBI NICS) background check data indicates that as of January 31, 2023, 7 out of the top 10 days with the highest volume of firearm background checks on record occurred in 2021 or 2022. In California, gun sales increased 56 percent from 2019 to 2020. The number of people with at least one firearm acquisition recorded in California Department of Justice records increased by over 20 percent between January 1, 2020, and January 1, 2022.
(i)This surge in firearm and ammunition sales and profits has occurred alongside an unprecedented spike in shootings and gun homicides across the United States and California. As the firearm industry has gained record profits, California and local taxpayers have faced increased costs and economic harms as a consequence, while more families and communities have suffered the brutal loss or victimization of a loved one.
(j)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(k)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(l)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(m)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(n)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(o)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
SEC. 3.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, firearm, firearm precursor part, handgun, long gun, and rifle.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(d)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(e)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(f)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(g)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(h)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention, Healing, and Recovery Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention, Healing, and Recovery Fund, including interest or dividends earned by the fund, shall, upon appropriation by the Legislature, be distributed in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention, Healing, and Recovery Fund shall, upon appropriation by the Legislature, be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next three million dollars ($3,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury.(3)(2)The next fifteen fifty million dollars ($15,000,000) ($50,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures. measures, and for physical security safety assessments.
(4)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.(5)(3)The next twelve million five hundred thousand fifteen million dollars ($12,500,000) ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
(6)The next seven million dollars ($7,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.(7)(4)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
(5)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.
(6)The next two million five hundred thousand dollars ($2,500,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
(7)The next one million dollars ($1,000,000) available in the fund, or as much of that amount as is available, if any, shall be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated pursuant to this paragraph across all years shall not exceed one million dollars ($1,000,000).
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to a any active or retired peace officer or any law enforcement agency employing that peace officer, for use in the normal course of employment. officer.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention, Healing, and Recovery Fund.
SEC. 4.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
This act shall be known, and may be cited, as the Gun Violence Prevention, Healing, and Recovery Act.
SEC. 2.The Legislature hereby finds and declares all of the following:
(a)Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. Californias gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state.
(b)Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined.
(c)A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves.
(d)Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDCs Division of Violence Prevention presented research to Congress demonstrating that youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers in the nations wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings.
(e)The CDC notes that Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress.
(f)In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.
(g)Even the most responsible members of the firearm and ammunition industry profit from commerce in uniquely lethal products that are commonly used to cause death and injury in this state, while enjoying unique exemptions and immunities under federal law from many forms of civil liability, accountability, and product safety regulation that might otherwise incentivize safer business conduct and mitigation efforts.
(h)The firearm industry has also enjoyed windfall profits on top of sustained long-term growth at a time of record nationwide spikes in shootings and gun homicides. A 2020 Economic Impact Report by the firearm industry trade association, the National Shooting Sports Foundation (NSSF), noted that the economic growth that Americas firearm and ammunition industry has experienced in recent years has been nothing short of remarkable. A 2022 NSSF Economic Impact Report said the same thing, and documented a 269-percent increase in the firearm and ammunition industrys estimated economic impact from 2008 to 2021 and an 11-percent increase from 2020 to 2021 alone. Federal Bureau of Investigation National Instant Criminal Background Check System (FBI NICS) background check data indicates that as of January 31, 2023, 7 out of the top 10 days with the highest volume of firearm background checks on record occurred in 2021 or 2022. In California, gun sales increased 56 percent from 2019 to 2020. The number of people with at least one firearm acquisition recorded in California Department of Justice records increased by over 20 percent between January 1, 2020, and January 1, 2022.
(i)This surge in firearm and ammunition sales and profits has occurred alongside an unprecedented spike in shootings and gun homicides across the United States and California. As the firearm industry has gained record profits, California and local taxpayers have faced increased costs and economic harms as a consequence, while more families and communities have suffered the brutal loss or victimization of a loved one.
(j)Firearms and ammunition sold by licensed manufacturers, dealers, and vendors of these products contribute to gun violence and broader harms. Gun dealers, for example, are the leading source of firearms trafficked to illegal markets, often through straw purchases, as well as negligent losses.
(k)The excise tax on firearm and ammunition retailers proposed in this act is analogous to longstanding federal law, which has, since 1919, placed a 10-percent to 11-percent excise tax on the sale of firearms and ammunition by manufacturers, producers, and importers. Revenues from this excise tax have been used, since passage of the Pittman-Robertson Federal Aid in Wildlife Restoration Act in 1937, to fund wildlife conservation efforts that remediate the effects that firearms and ammunition have on wildlife populations through game hunting, particularly through grants to state wildlife agencies, and for conservation-related research, technical assistance, hunter safety, and hunter development.
(l)This act will similarly place a reasonable surtax on firearm and ammunition industry members profiting from the sale of firearms and ammunition in order to generate sustained revenue for programs that are designed to remediate the devastating effects these products cause families and communities across this state.
(m)The National Rifle Association has referred to the Pittman-Robertson federal Firearms and Ammunition Excise tax as a legislative model and friend of the hunter, and NSSF has repeatedly emphasized the importance of this federal firearm industry excise tax as well. A 2019 statement by an NSSF director published on NSSFs internet website emphasized that an often overlooked, and certainly under-communicated benefit, is the impact that excise taxes on firearms and ammunition have on conservation and wildlife populations, and a similar 2018 statement from NSSF praised Key Pittman and Willis Robertson, the legislators who sponsored the Pittman-Robertson excise tax, as heroes of the most successful conservation model in the world.
(n)This act would similarly provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.
(o)This act is consistent with our nations longstanding historical tradition of regulating commercial firearm and ammunition manufacturers and sellers, including through federal, state, and local taxes on this commercial activity. An 1883 California statute, for instance, directed local governments to provide for payment of all revenue assessed as a tax, or received for licenses, on the storage, manufacture, and sale of gunpowder and related products in order to fund a Firemans Charitable Fund to support professionals tasked with remediating the collateral impacts of firearm-related commercial activity on public safety through fire risk.
(p)The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on Californias families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition. A gun policy research review by the Rand Corporation noted that the available research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.
(q)The revenue from this act would provide sustained, dedicated investments in programs that are effective at addressing and remediating harms caused by firearm and ammunition industry products, including investments in: (1) community gun violence intervention and prevention initiatives that help address risk factors for violent behavior, protect and heal victims, interrupt cycles of shootings, trauma, and retaliation among those at highest risk, and address racial inequality in access to safety for communities of color; (2) gun violence research that helps stakeholders identify leading causes and evidence-based responses to gun violence; (3) initiatives that train health care providers about effective clinical tools for preventing firearm suicide and injury; (4) crime victim services, including mental health services, for victims of mass shootings and other gun homicides, and individuals chronically exposed to gun violence in their community, including students in school districts disproportionately impacted by gun violence in the school or broader community; (5) coordinated efforts to ensure firearm and ammunition purchasers are adequately informed about how to comply with Californias gun safety laws and responsibilities associated with safe use and possession of firearms, including child access prevention, and to promote effective and equitable implementation of Californias gun safety laws and programs; (6) programs that promote victims and public safety by ensuring the prompt, safe, and consistent removal of firearms and ammunition from people who become prohibited from possessing them, such as after a gun violence or domestic violence restraining order; and (7) evidence-based activities to effectively and equitably support gun homicide and shooting investigations in order to deliver justice for victims of gun violence in communities bearing the brunt of these tragedies.
SEC. 3.Part 16 (commencing with Section 36001) is added to Division 2 of the Revenue and Taxation Code, to read:16.FIREARM, AMMUNITION, AND FIREARM PRECURSOR PART EXCISE TAX 1.General Provisions and Definitions36001.For purposes of this part:
(a)The following terms shall have the same meaning as those terms are defined in Division 2 (commencing with Section 16100) of Title 1 of Part 6 of the Penal Code: ammunition, ammunition vendor, firearm, firearm precursor part, handgun, long gun, and rifle.
(b)Department means the California Department of Tax and Fee Administration.
(c)Firearms manufacturer means any entity licensed to manufacture firearms pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
(d)Gross receipts shall have the same meaning as that term is defined in Section 6012.
(e)Law enforcement agency means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
(f)Licensed firearms dealer shall have the same meaning provided in Section 26700 of the Penal Code.
(g)Peace officer means any person described in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
(h)Retail sale shall have the same meaning as that term is defined in Section 6007.
36005.(a)There is hereby established in the State Treasury the Gun Violence Prevention, Healing, and Recovery Fund to receive moneys pursuant to Section 36041.
(b)All moneys in the Gun Violence Prevention, Healing, and Recovery Fund, including interest or dividends earned by the fund, shall, upon appropriation by the Legislature, be distributed in accordance with the allocation formula provided in subdivision (c), provided that the dollar amounts specified in that subdivision shall be annually adjusted to account for changes in the California Consumer Price Index.
(c)Moneys in the Gun Violence Prevention, Healing, and Recovery Fund shall, upon appropriation by the Legislature, be annually allocated in the following order:
(1)The first seventy-five million dollars ($75,000,000) available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Title 10.2 (commencing with Section 14130) of Part 4 of the Penal Code.
(2)The next three million dollars ($3,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury.
(3)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures.
(4)The next two million five hundred thousand dollars ($2,500,000) available in the fund per year, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.
(5)The next twelve million five hundred thousand dollars ($12,500,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
(6)The next seven million dollars ($7,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
(7)The next fifteen million dollars ($15,000,000) available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
(d)Any remaining moneys available in the fund each year after the allocations described in subdivision (c) shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
2.Imposition and Rate of Tax36011.Commencing July 1, 2024, an excise tax is hereby imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
3.Exemptions36021.(a)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to a peace officer or any law enforcement agency employing that peace officer, for use in the normal course of employment.
(b)There are exempted from the tax imposed by this part, the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition by any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than five thousand dollars ($5,000).
4.Collection and Administration36031.(a)The department shall administer and collect the taxes imposed by this part pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)). For purposes of this part, the references in the Fee Collection Procedures Law to fee shall include the taxes imposed by this part, and references to feepayer shall mean any person liable for the payment of the taxes imposed under this part and collected pursuant to that law.
(b)The department may prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
36032.The taxes imposed by this part are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months.
36033.On or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the department.
5.Disposition of Proceeds36041.All amounts required to be paid pursuant to Section 36011 shall be paid to the department in the form of remittances payable to the department, and those revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, established pursuant to Section 36005.
6.Nonpreemption36042.This part shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this part shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
7.Authority to Enact Emergency Regulations36043.If any provision of this act or its application is held invalid, the department shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this act. Such guidance or regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Gun Violence Prevention, Healing, and Recovery Fund.
SEC. 4.If any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof. The Legislature hereby declares that it would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.(a)The Director of Finance shall transfer, as a loan, two million four hundred thousand dollars ($2,400,000) from the General Fund to the California Department of Tax and Fee Administration to implement Part 16 (commencing with Section 36001) of Division 2 of the Revenue and Taxation Code.
(b)Any loan made pursuant to this section shall be repaid with taxes collected pursuant to Section 36011 of the Revenue and Taxation Code and prior to making any expenditures or appropriations pursuant to Section 36005 of the Revenue and Taxation Code.
SECTION 1.It is the intent of the Legislature to enact legislation that would enact a tax to fund measures to protect against gun violence on firearms and ammunition purchased. REVISIONS: HeadingLines 3 and 4.It is the intent of the Legislature to enact legislation that would enact a tax to fund measures to protect against gun violence on firearms and ammunition purchased.
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Date
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Status
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|---|---|
| Sep 26, 2023 | Chaptered by Secretary of State - Chapter 231, Statutes of 2023. |
| Sep 26, 2023 | Approved by the Governor. |
| Sep 13, 2023 | Enrolled and presented to the Governor at 3 p.m. |
| Sep 7, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 57. Noes 17. Page 3055.). |
| Sep 7, 2023 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 9 pursuant to Assembly Rule 77. |
| Sep 7, 2023 | Assembly Rule 77 suspended. (Ayes 62. Noes 17. Page 3054.) |
| Sep 7, 2023 | Assembly Rule 63 suspended. (Ayes 62. Noes 17. Page 3054.) |
| Sep 7, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 27. Noes 9. Page 2455.). |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | Read second time and amended. Ordered returned to second reading. |
| Sep 1, 2023 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (September 1). |
| Aug 14, 2023 | In committee: Referred to APPR suspense file. |
| Jul 13, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 12, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (July 11). |
| Jun 26, 2023 | Read second time and amended. Re-referred to Com. on PUB S. |
| Jun 22, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on PUB S. (Ayes 6. Noes 2.) (June 21). |
| Jun 7, 2023 | Referred to Coms. on GOV. & F. and PUB S. |
| May 26, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 25, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 17. Page 1758.) |
| May 22, 2023 | Read second time. Ordered to third reading. |
| May 18, 2023 | Read second time and amended. Ordered returned to second reading. |
| May 18, 2023 | From committee: Amend, and do pass as amended. (Ayes 11. Noes 4.) (May 18). |
| May 10, 2023 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 25, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 24). Re-referred to Com. on APPR. |
| Apr 24, 2023 | In committee: Set, first hearing. Referred to REV. & TAX. suspense file. |
| Apr 12, 2023 | From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 6. Noes 2.) (April 11). Re-referred to Com. on REV. & TAX. |
| Apr 12, 2023 | Coauthors revised. |
| Mar 27, 2023 | Re-referred to Com. on PUB. S. |
| Mar 23, 2023 | Referred to Coms. on PUB. S. and REV. & TAX. |
| Mar 23, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on PUB. S. Read second time and amended. |
| Dec 6, 2022 | From printer. May be heard in committee January 5. |
| Dec 5, 2022 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 7, 2023 | AB 28 GABRIEL Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 7, 2023 | Assembly 3rd Reading AB28 Gabriel et al. By Portantino | Senate Floor |
Passed |
|
| Sep 1, 2023 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 14, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 11, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Public Safety |
Passed |
|
| Jun 21, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Public Safety] | Senate Standing Committee on Governance and Finance |
Passed |
|
| May 25, 2023 | AB 28 Gabriel Assembly Third Reading | Assembly Floor |
Passed |
|
| May 18, 2023 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 24, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Revenue and Taxation |
Passed |
|
| Apr 11, 2023 | Do pass and be re-referred to the Committee on [Revenue and Taxation] | Assembly Standing Committee on Public Safety |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Aaron Reed and Associates | * Against | Apr 24, 2023 |
| AJC San Francisco | ** Support | |
| Alameda Health System | ** Support | |
| America'S Physician Groups | ** Support | |
| American Academy Of Pediatrics, California | ** Support | |
| American Association Of University Women - California | ** Support | |
| American College of Surgeons Joint Advocacy Committee | ** Support | |
| American Jewish Committee – Los Angeles | ** Support | |
| American Jewish Committee – San Diego | ** Support | |
| Antioch Police Department | ** Support | |
| Arcadia Police Officers' Association | ** Against | |
| Berkeley YMCA Youth and Government Delegation | * Support | Jun 21, 2023 |
| Black Brant Group | ** Against | |
| Brady California | ** Support | |
| Brady Campaign | ** Support | |
| Brady United Against Gun Violence, Ventura County Chapter | ** Support | |
| Broken by Violence | * Support | Jul 11, 2023 |
| Burbank Police Officers' Association | ** Against | |
| Cal-Ore Wetlands and Waterfowl Council | ** Against | |
| California Bowmen Hunters/State Archery Association | ** Against | |
| California Chapter of the American College of Emergency Physicians | ** Support | |
| California Chapter of Wild Sheep Foundation | ** Against | |
| California Chapter Wild Sheep Foundation | ** Against | |
| California Chapters of Safari Club International | * Against | Apr 11, 2023 |
| California Coalition of School Safety Professionals | ** Against | |
| California Deer Association | ** Against | |
| California Hawking Club | ** Against | |
| California Houndsmen For Conservation | ** Against | |
| California Medical Association | ** Support | |
| California Nurses for Environmental Health and Justice | * Support | Aug 14, 2023 |
| California Partnership for Safe Communities | ** Support | |
| California Partnership To End Domestic Violence | ** Support | |
| California Rifle And Pistol Association, Inc. | ** Against | |
| California State Chapter - National Wild Turkey Federation | ** Against | |
| California Waterfowl Association | ** Against | |
| California Women's Law Center | ** Support | |
| Californians for Safety and Justice | ** Support | |
| Charity Apostolic Church – Shaphat Outreach | ** Support | |
| City and County of San Francisco | * Support | Jun 21, 2023 |
| City and County of San Francisco Mayor London Breed | ** Support | |
| City of Alameda Mayor Marilyn Ezzy Aschcraft | ** Support | |
| City of Alhambra | ** Support | |
| City of Berkeley Mayor Jesse Arreguin | ** Support | |
| City of Calabasas Mayor David Shapiro | ** Support | |
| City of Calistoga Mayor Donald Williams | ** Support | |
| City of Diamond Bay Mayor Andrew Chou | ** Support | |
| City of Elk Grove Mayor Bobbie Singh-Allen | ** Support | |
| City Of Emeryville, Mayor John J. Bauters | ** Support | |
| City of Encinitas Mayor Tony Kranz | ** Support | |
| City of Fresno Councilmember Miguel Arias | ** Support | |
| City of Goleta Mayor Paula Perotte | ** Support | |
| City of Half Moon Bay Mayor Deborah Penrose | ** Support | |
| City of Healdsburg Mayor Ariel Kelly | ** Support | |
| City of Hermosa Beach Mayor Raymond Jackson | ** Support | |
| City of Hillsborough Mayor Christine Krolik | ** Support | |
| City of Imperial Beach Mayor Paloma Aguirre | ** Support | |
| City of Long Beach Mayor Rex Richardson | ** Support | |
| City Of Los Angeles | ** Support | |
| City of Los Angeles Mayor Karen Bass | ** Support | |
| City of Martinez Mayor Brianne Zorn | ** Support | |
| City of Menlo Park Mayor Jen Wolosin | ** Support | |
| City of Monterey Mayor Tyller Williamson | ** Support | |
| City of Monterey Park | ** Support | |
| City of Oakland - Department of Violence Prevention | ** Support | |
| City of Perris Mayor Michael Vargas | ** Support | |
| City of Pomona Mayor Tim Sandoval | ** Support | |
| City of Richmond Mayor Eduardo Martinez | ** Support | |
| City Of Sacramento | ** Support | |
| City Of Sacramento Mayor Darrell Steinberg | ** Support | |
| City of San Clemente Mayor Chris Duncan | ** Support | |
| City Of San Diego | ** Support | |
| City of San Diego Mayor Todd Gloria | ** Support | |
| City of San Jose | ** Support | |
| City of San Rafael Mayor Kate Colin | ** Support | |
| City of Santa Ana | ** Support | |
| City of Santa Ana Mayor Pro Tem Jessie Lopez | ** Support | |
| City of Solana Beach Mayor Lesa Heebner | ** Support | |
| City of Wes Sacramento Mayor Martha Guerro | ** Support | |
| CLAREMONT POLICE OFFICERS ASSOCIATION | ** Against | |
| cleanearth4kids.org | ** Support | |
| Community Regional Medical Center | ** Support | |
| congressional sportsmen's foundation | ** Against | |
| Corona Police Officers Association | ** Against | |
| County of Santa Clara | ** Support | |
| Culver City Police Officers' Association | ** Against | |
| DefendingConstitutionalRights | ** Against | |
| Democratic Central Committee Siskiyou County | ** Support | |
| democratic party of contra costa county | ** Support | |
| Democrats of Rossmoor | ** Support | |
| Deputy Sheriffs Association of Monterey County | ** Against | |
| Developing Organizing Visions for Everyone | * Support | Jun 21, 2023 |
| Ducks Unlimited | ** Against | |
| EMS Medical Directors Association of California | ** Support | |
| Equal Justice USA | ** Support | |
| ETTA | ** Support | |
| Everytown for Gun Safety | * Support | Jun 21, 2023 |
| Everytown for Gun Safety Action Fund | ** Support | |
| Family Violence Appellate Project | ** Support | |
| Family Violence Law Center | ** Support | |
| Freedom Looks Good on Us | * Support | Jul 11, 2023 |
| Fresh Lifelines for Youth | ** Support | |
| Fresno Brady | ** Support | |
| Fresno County Democratic Central Committee | ** Support | |
| Fresno Economic Opportunities Commission | ** Support | |
| Fullerton Police Officers' Association | ** Against | |
| Giffords | ** Support | |
| Giffords Law Center To Prevent Gun Violence | ** Support | |
| Glifford Center for Violence Intervention | ** Support | |
| Glifford Center for Violence Intervention | * Support | Jul 11, 2023 |
| Golden Gate Chapter - Safari Club International | ** Against | |
| Greater Sacramento Urban League | ** Support | |
| Gun Owners Of California Inc | ** Against | |
| Hadassah | ** Support | |
| Health Alliance for Violence Intervention | ** Support | |
| Howard Jarvis Taxpayers Association | ** Against | |
| ikar | ** Support | |
| Initiate Justice | ** Support | |
| JCRC Bay Area | ** Support | |
| Jewish Center for Justice | ** Support | |
| Jewish Community Federation and Endowment Fund | ** Support | |
| jewish community relations council of sacramento | ** Support | |
| Jewish Community Relations Council of Silicon Valley | ** Support | |
| Jewish Democratic Club of Silicon Valley | ** Support | |
| Jewish Democratic Club of Solano County | ** Support | |
| Jewish Family & Children's Service of Long Beach and Orange County | ** Support | |
| Jewish Family & Community Services East Bay | ** Support | |
| Jewish Family Service of Los Angeles | ** Support | |
| Jewish Family Services of Silicon Valley | ** Support | |
| Jewish Family Services San Diego | ** Support | |
| Jewish Federation Of Greater Los Angeles The | ** Support | |
| Jewish Federation of Greater Santa Barbara | ** Support | |
| Jewish Federation of The Greater San Gabriel and Pomona Valleys | ** Support | |
| Jewish Federation Of The Sacramento Region | ** Support | |
| Jewish Long Beach | ** Support | |
| Jewish Public Affairs Committee | ** Support | |
| Jewish Public Affairs Committee Of California | ** Support | |
| Jewish Silicon Valley | ** Support | |
| Johns Hopkins Center for Gun Violence Solutions | ** Support | |
| Jonas Philantropies | * Support | Jul 11, 2023 |
| Juma Ventures | ** Support | |
| JVS SoCal | ** Support | |
| Kern County Democratic Party | ** Support | |
| Lakeshore Avenue Baptist Church | ** Support | |
| Lola Fitzgerald | ** Against | |
| Loma Linda University Adventist Health Sciences Center And Its Affiliated Entities | ** Support | |
| Los Angeles County Board of Supervisors | ** Support | |
| Los Angeles County Democratic Party | ** Support | |
| Los Angeles County Hospital-based Violence Intervention Consortium | ** Support | |
| Los Angeles Police Department | ** Support | |
| los angeles school police officers association | ** Against | |
| Los Angeles Violence Intervention Coalition | ** Support | |
| March for Our Lives | * Support | Jul 11, 2023 |
| March For Our Lives Action Fund | ** Support | |
| March for Our Lives California | ** Support | |
| Moms Demand Action - CA | ** Support | |
| Moms Demand Action for Gun Sense in America | ** Support | |
| Mono County Democratic Central Committee | ** Support | |
| Movement 4 Life | ** Support | |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jul 11, 2023 |
| Movement for Life | * Support | Jun 21, 2023 |
| Movement for Life | * Support | Jun 21, 2023 |
| Murrieta Police Officers' Association | ** Against | |
| Napa County Democratic Central Committee | ** Support | |
| National Association of Pediatric Nurse Practitioners | ** Support | |
| National Association of Pediatric Nurse Practitioners, California Chapters | ** Support | |
| National Association Of Social Workers, California Chapter | ** Support | |
| National Institute for Criminal Justice Reform | ** Support | |
| National Rifle Association | ** Against | |
| National Rifle Association - Institute For Legislative Action | ** Against | |
| National Shooting Sports Foundation, Inc. | * Against | Jul 11, 2023 |
| Newport Beach Police Association | ** Against | |
| NorCal Guides And SportsmenS Association | ** Against | |
| Oakland Unified School District | * Support | Jun 21, 2023 |
| Orange County Supervisor Doug Chaffee | ** Support | |
| Orange County Supervisor Vicente Sarmiento | ** Support | |
| palm springs police department | ** Support | |
| Palos Verdes Police Officers Association | ** Against | |
| Peace and Justice Law Center | ** Support | |
| Peace Officers Research Association Of California | ** Against | |
| PLACER COUNTY DEPUTY SHERIFFS ASSOCIATION | ** Against | |
| Pomona Police Officers' Association | ** Against | |
| Progressive Zionists of California | ** Support | |
| Prosecutors Alliance California | ** Support | |
| Public Health Advocates | ** Support | |
| Reach Out | ** Support | |
| RIVERSIDE POLICE OFFICERS ASSOCIATION | ** Against | |
| Riverside Sheriffs' Association | ** Against | |
| Rocky Mountain Elk Foundation | ** Against | |
| Sacramento Chapter - Safari Club International | ** Against | |
| Sacramento County Young Democrats | ** Support | |
| Safari Club International - California Chapters | ** Against | |
| San Diegans For Gun Violence Prevention | ** Support | |
| San Diego City Attorney, Mara Elliott | ** Support | |
| San Diego City Council | * Support | Jun 21, 2023 |
| San Diego County Wildlife Federation | ** Against | |
| San Francisco Bay Area Chapter - Safari Club International | ** Against | |
| San Francisco Board of Supervisors | ** Support | |
| San Francisco Democratic Party | ** Support | |
| San Francisco Police Department | ** Support | |
| San Mateo County Democracy for America | ** Support | |
| San Mateo County Democratic Party | ** Support | |
| Santa Ana Police Officers Association | ** Against | |
| Santa Clara County Board of Supervisors | * Support | Jun 21, 2023 |
| Santa Clara County Democratic Party | ** Support | |
| Santa Clara County District Attorney, Jeffrey Rosen | ** Support | |
| Sassoon Resource Conservation District | * Against | Jun 21, 2023 |
| SCI California Coalition | * Against | Jul 11, 2023 |
| SEIU California | ** Support | |
| Shaphat Outreach | ** Support | |
| Silicon Valley Alliance for Gun Safety | ** Support | |
| Smart Justice California | ** Support | |
| Solano County Democratic Central Committee | ** Support | |
| Soledad Enrichment Action, INC. | ** Support | |
| Sonoma County Board of Supervisors | ** Support | |
| Sonoma County Democratic Party | ** Support | |
| Southern California Crossroads | ** Support | |
| Students Demand Action | ** Support | |
| Students Demand Action for Gun Sense in America | ** Support | |
| Suisun Resource Conservation District | ** Against | |
| Survivor Services | * Support | Jul 11, 2023 |
| Tehama County Gun Owners | * Against | Jun 21, 2023 |
| The Health Alliance for Violence Intervention | ** Support | |
| Toberman Neighborhood Center | ** Support | |
| Town of Fairfax Mayor Chance Cutrano | ** Support | |
| Tulare Basin Wetlands Association | ** Against | |
| UC San Diego | * Support | Jul 11, 2023 |
| UCSF School of Medicine | * Support | Jul 11, 2023 |
| United Nurses Associations Of California/Union Of Health Care Professionals | ** Support | |
| United Players | * Support | Jul 11, 2023 |
| Upland Police Officers Association | ** Against | |
| Urban Peace Institute | ** Support | |
| Valorcalifornia / Valorus | ** Support | |
| Ventura County Democratic Party | ** Support | |
| Ventura county Gun Owners | * Against | Jun 21, 2023 |
| We Are One United | ** Support | |
| WEAVE | ** Support | |
| Westchester-Playa Democratic Club | ** Support | |
| Women Against Gun Violence | ** Support | |
| Women Democrats of Sacramento County | ** Support | |
| Women for American Values and Ethics | * Support | Aug 14, 2023 |
| Woodland Police Department | ** Support | |
| Youth ALIVE! | ** Support |
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 28
Author:(Gabriel and McCarty)
As Amended Ver:September 1, 2023
2/3 vote
SUMMARY
Establishes an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors to fund programs that address the causes and harms of gun violence.
Senate Amendments
- Change the name of the fund within the State Treasury from the Gun Violence Prevention, Healing, and Recovery Fund to the Gun Violence Prevention and School Safety Fund.
- Clarify that in the Gun Violence Prevention and School Safety Fund shall be allocated annually as provided.
- Authorize Department of Tax and Fee Administration (DTFA) to revoke any ammunition vendor license or remove any firearms dealer or firearms manufacturer from any centralized list maintained by the department, as specified, upon notification from the DTFA that either of the following events has occurred:
- After providing notice and the opportunity for a hearing, DTFA has revoked the licensee's certificate of registration, as specified; or,
- After providing notice and the opportunity for a hearing, DTFA has revoked or suspended the licensee's seller's permit, as specified.
- Authorize the Department of Justice (DOJ) to reinstate an ammunition vendor license that has been revoked or reinstate on any centralized list maintained by DOJ, as specified, a firearms dealer or manufacturer that was removed from the centralized list, as specified, if DTFA has reinstated the licensee's certificate of registration or the seller's permit, as applicable.
- Clarify that disbursements to the State Department of Education (DOE) are to enhance school safety by addressing risk factors for gun violence affecting pupils in kindergarten through grade 12.
- Authorize DOE to utilize these funds to support both activities conducted directly by the department and those conducted through contracts with, or grants to, other entities.
- Clarify that disbursements to the Judicial Council to support a court-based firearm relinquishment grant program to be administered in coordination with DOJ is, among other things, designed to reduce the number of people who are entered into or remain in the Armed Prohibited Persons System, including by supporting partnerships with courts and local law enforcement agencies.
- Provide the disbursements to DOJ to fund a victims gun violence program shall be allocated on a competitive basis to state, local, or tribal law enforcement agencies and prosecuting offices for activities that have the specific objective of increasing clearance rates for firearm homicides and nonfatal shootings.
- Provide that a department or agency may reserve up to 5% of the funds appropriated to that department or agency for the costs of administering and promoting the effectiveness of programs, as specified.
- Require, by no later than March 31, 2024, and thereafter, by no later than the last day of each calendar quarter, DOJ to provide a list, including the names and business locations of all firearm dealers, firearm manufacturers, and ammunition vendors that are licensed by the DOJ or that are included on any of the centralized lists maintained by the DOJ, as specified, to DTFA for the purposes of administering the excise tax.
- Requires DTFA to notify DOJ in the case of any of the following occurrences:
- If, after providing notice and the opportunity for a hearing, DTFA has, revoked the certificate of registration of a licensed firearms dealer, ammunition vendor, or firearms manufacturer, as specified;
- If, after providing notice and the opportunity for a hearing, DTFA has revoked or suspended the seller's permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer, as specified; or,
- If CDTFA reinstated a certificate of registration or a seller's permit of a licensed firearms dealer, ammunition vendor, or firearms manufacturer.
- Require each licensed firearms dealer, firearms manufacturer, or ammunition vendor subject to the excise tax to register for a certificate of registration with DTFA using electronic media in a form prescribed by the DTFA and to set forth the name under which the applicant transacts or intends to transact business, the location of their place or places of business, and any other information as the department may require.
- Require an application for a certificate of registration to be authenticated in a form or pursuant to methods as may be prescribed by the DTFA.
- Require DTFA to issue a certificate of registration to each eligible applicant that has properly registered, as specified.
- Provide that a certificate of registration issued as specified shall be valid until canceled or revoked.
- Require DTFA, if a holder of a certificate of registration fails to comply with the law or any rule or regulation of DTFA, to provide notice in writing to the holder of the certificate of no less than 10 days specifying the time and place of hearing and requiring the holder of the certificate to show cause why their certificate of registration should not be revoked.
- Provide that the notice may be served personally or by mail in the manner prescribed for service of notice of a deficiency determination.
- Authorize DTFA, after notice and hearing, to revoke a certificate of registration for a violation or omission.
- Authorize a holder of a certificate that has had their certificate of registration revoked, as specified, to petition the department for reinstatement of the certificate by paying the amount of unpaid excise tax determined, together with any interest and penalties, demonstrating full compliance, and paying a fee of $50 to the DTFA for reinstatement.
- Require DTFA to reinstate the certificate of registration of any revoked holder of a certificate that has satisfactorily complied, as specified.
- Provide that the $50 fee described above shall not be subject to refund except as specified.
- Make technical, non-substantive changes.
COMMENTS
As Passed by the Assembly: This bill established an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors to fund programs that address the causes and harms of gun violence.
Major Provisions
- Established the Gun Violence Prevention, Healing, and Recovery Fund within the State Treasury, which will be funded by an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors, as specified.
- Required all moneys in the fund, including interest or dividends earned by the fund to be distributed according to the specified allocation formula.
- Required the dollar amounts specified in the allocation formula to be annually adjusted to account for changes in the California Consumer Price Index.
- Required moneys in the fund, upon appropriation by the legislature, to be annually allocated in the following order:
- The first $75 million available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (BSCC), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs.
- The next $50 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
- The next $15 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
- The next $15 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to DOJ for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
- The next $2.5 million available in the fund per year, or as much of that amount as is available, if any, shall be annually allocated to the DOJ to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts, as specified.
- The next $2.5 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $1 million available in the fund, or as much of that amount as is available, if any, shall be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated across all years shall not exceed one million dollars.
- Any remaining moneys available in the fund each year after the allocations shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- Imposed, commencing on July 1, 2024, an excise tax on licensed firearm dealers, firarms manufacturers, and ammunition venders at the rate of 11% of the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition.
- Exempted from the excise tax the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
- Exempted from the excise tax the gross receipts of any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than $5,000.
- Required the California Department of Tax and Fee Administration (CDTFA) to administer and collect the excise tax.
- Authorized CDTFA to prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
- Provided that the excise taxes are due and payable to the CDTFA quarterly on or before the last day of the month next succeeding each quarterly period of three months.
- Required, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period to be filed with the CDTFA using electronic media.
- Required returns to be authenticated in a form or pursuant to methods as may be prescribed by the CDTFA.
- Required all amounts required to be paid, as prescribed, to be paid to CDTFA in the form of remittances.
- Required revenues, net of refunds, and costs of administration, to be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, as prescribed.
- Provided that the excise tax does not preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts.
- Provided that the excise tax is in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
- Authorized CDTA, if any provision of this act or its application is held invalid, to issue guidance or adopt regulations necessary to address the invalidity and to promote the purposes of this act, as specified.
- Required CDTA, if any provision of this act or its application is held invalid, to seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the fund.
- Provided that, if any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof, and declares that the Legislature would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
- Required the Director of Finance to transfer, as a loan, $2.4 million from the General Fund to the CDTA to implement the excise tax.
- Required any loan made to the fund to be repaid with moneys collected by the excise tax and prior to making any expenditures or appropriations to specified entities and programs.
According to the Author
"Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state."
Arguments in Support
According to the Family Violence Law Center, "As part of our mission to support survivors of domestic violence it is imperative to acknowledge the intersection of gun violence and domestic violence and the impacts it has on survivors. When guns are present in a home where domestic violence has occurred a survivor is five times more likely to be killed. In over half of the domestic violence homicides nationwide a firearm was used to harm the victim. At Family Violence Law Center we believe it is imperative for our team to advance for survivor safety by supporting policy initiatives that educate survivors and youth on the harms of gun violence and how to seek safety. It is for this reason that the Family Violence Law Center seeks to educate survivors on various pathways to seeking safety including the use of legal avenues such as gun violence restraining orders and domestic violence restraining orders. AB 28 would allow the state of California to continue investing in this very urgent and important matter.
"As you know, gun violence is a public health, safety, and equity crisis. Since the start of the pandemic, our nation has seen record-setting gun and ammunition sales, alongside record nationwide increases in shootings, homicides, and related traumas. This has been a time of record profits for some and brutal pain and loss for too many others. This national gun violence crisis has also imposed an enormously unequal toll on communities of color in our state, where over 84% of youth homicide victims are Black or Latino, and where gun violence was already, prior to recent spikes in violence, by far the leading cause of death for young Black men and boys. This violence also imposes enormous burdens on those who are not direct victims too: experts at the National Institute of Justice have noted that "youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers" in our wartime military.
"In addition to its brutal human toll, gun violence also causes enormous economic harm and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2.5 million in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to directly cost taxpayers nearly $1 million on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid directly by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California, was 'significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.'
"To promote community safety and mitigate the enormous collateral harms that flow from firearm industry commerce, California has in recent years acted to invest in violence intervention initiatives that work to interrupt entrenched cycles of shootings, trauma, and retaliation. These programs support and heal victims of firearm violence, and provide targeted intervention services to other individuals identified as at highest risk of being shot or involved in cycles of violence in the near future. The state's investment in these programs, primarily through the California Violence Intervention and Prevention (CalVIP) grant program, has provided a critical lifeline to temporarily sustain and expand programs employing frontline violence intervention workers and saving lives today.
"However, these investments have thus far relied on short-term General Fund commitments. Sustained reductions in gun violence will require sustained investments in prevention and intervention efforts and longer-term planning to entrench virtuous cycles of trauma recovery, retaliation prevention, peace-building, and safety. That is why it has been a top priority for our organizations to establish a dedicated revenue stream to sustain this lifesaving work through the California Violence Intervention and Prevention program and related efforts.
"This bill is analogous to other firearm and ammunition industry tax measures that have been repeatedly upheld by the courts. Similar firearm, ammunition, and related industry excise taxes have also been in place at the federal level for over a century, and the gun industry has supported them. Since 1919, federal law has placed a 10 to 11% excise tax on the sale of guns, ammunition, and related products by licensed manufacturers, producers, and importers. Revenues from this excise tax have been used to fund wildlife conservation efforts that remediate the effects that guns and ammunition have on wildlife populations through hunting, particularly through grants to state wildlife agencies and for conservation-related research. The NRA has referred to this federal Firearms and Ammunition Excise tax as a 'legislative model' and 'friend of the hunter.'
"Just as the federal tax on firearm industry manufacturers reasonably generates revenue to remediate the harmful effects that firearm industry commerce can have on wildlife, AB 28 would place an identical tax on retail sellers profiting from the sale of the same products in order to fund programs that effectively remediate the devastating human toll these products take on families and communities across the state. This tax is a modest and reasonable excise tax on sellers whose lawful and legitimate commercial activity still imposes enormous harmful externalities on California's families, communities, and taxpayers.
"This bill is not intended to penalize firearm sellers or otherwise discourage lawful firearm sales and commerce whatsoever, but would reasonably generate revenue to sustain programs that are targeted and effective at mitigating the harms that firearms and related products too often cause. It would stop shootings, save lives, and make California a better, safer place."
Arguments in Opposition
According to the California Rifle & Pistol Association, "All of California's law-abiding citizens benefit from efforts to implement programs which remediate the impacts of illegal gun violence upon our public, and all should equally help to fund their implementation. Yet, AB 28 would unjustifiably place the entire burden of funding efforts to address illegal gun violence on the backs of law-abiding citizens who legally purchase and lawfully use firearms and ammunition.
"Additionally, by substantially raising the cost of purchasing a firearm and ammunition in California, AB 28 would disproportionately impact the ability of economically disadvantaged communities and individuals to legally purchase a firearm and ammunition to protect themselves and their loved ones. Further, AB 28 would impede their equitable access to hunting and shooting sports – at a time when the Administration and the Legislature are seeking to increase participation in outdoor recreation and access for all Californians.
"Firearms and ammunition are already taxed at the federal level pursuant to the federal Pittman-Robertson Act (PR). But those dollars are allocated back to states to fund beneficial programs – including wildlife habitat projects that benefit game and non-game species. This year alone, the California Department of Fish and Wildlife will be allocated well over $30 million in federal PR dollars – monies which will fund a substantial portion of our state's wildlife management, conservation, and research efforts. By doubling the excise tax law-abiding hunters and shooters already pay on all firearms and ammunition, AB 28 would effectively raise the total tax rate on these items to nearly 30% – notably reducing their sales and, in turn, the associated federal PR funding allocated back to California for critical wildlife conservation and management efforts.
"All of California's citizens support and benefit from efforts intended to address the negative impact the criminal use of firearms has upon our law-abiding public. Yet, AB 28 would wrongly place the entire burden of funding initiatives intended to mitigate the harms caused by illegal gun violence on a small segment of our law-abiding public. AB 28 would do nothing to reduce criminal use of firearms but would inequitably impact the ability of the disadvantaged communities and economically challenged individuals to protect themselves and their families, and unjustly affect California's lawful hunters, shooters, and our wildlife and their habitats."
FISCAL COMMENTS
According to Senate Appropriations Committee:
- The California Department of Tax and Fee Administration (CDTFA) estimates that this bill would result in additional excise tax revenues of $159 million in 2024-25 (Gun Violence Prevention, Healing, and Recovery Fund). If firearms dealers and ammunition vendors choose to pass the excise tax to on to their customers, the bill would additionally result in a state and local sales and use tax revenue gain of up to $14 million, $6.3 million of which would flow to the General Fund. Revenue would depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA notes that its revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any behavioral changes in sales that may result from the enactment of this bill.
- CDTFA indicates that it would incur administrative costs of $1.4 million in 2023-24, $952,000 in 2024-25, $759,000 in 2025-26, and $1.2 million annually thereafter, to implement the provisions of the bill. Specifically, the department would incur new costs to a) identify and notify taxpayers, b) create a new tax return, c) program computer systems, d) revise publications and audit/compliance manuals, e) develop special notices and tax guides, f) create regulations, and g) respond to inquiries from the public.
- The Department of Justice (DOJ) would incur General Fund administrative costs to facilitate a grant program as outlined in the bill. The magnitude of these costs would depend upon the size of the grant program. As an order of magnitude, if the grant program were $15 million per year, DOJ's ongoing administrative costs would be about $1 million annually.
VOTES:
ASM PUBLIC SAFETY: 6-2-0
YES: Jones-Sawyer, Bonta, Jackson, Ortega, Santiago, Zbur
NO: Alanis, Lackey
ASM REVENUE AND TAXATION: 7-3-1
YES: Irwin, Grayson, Pacheco, Petrie-Norris, Luz Rivas, Valencia, Zbur
NO: Wallis, Jim Patterson, Ta
ABS, ABST OR NV: Bains
ASM APPROPRIATIONS: 11-4-1
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega
NO: Megan Dahle, Dixon, Mathis, Sanchez
ABS, ABST OR NV: Robert Rivas
ASSEMBLY FLOOR: 56-17-7
YES: Addis, Alvarez, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Santiago, Schiavo, Ting, Valencia, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO: Alanis, Chen, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron, Wallis
ABS, ABST OR NV: Aguiar-Curry, Arambula, Bains, Mathis, Ramos, Rodriguez, Soria
UPDATED
VERSION: September 1, 2023
CONSULTANT: Andrew Ironside / PUB. S. / (916) 319-3744 FN: 0001815
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 28 |
THIRD READING
Bill No: AB 28
Author: Gabriel (D) and McCarty (D), et al.
Amended: 9/1/23 in Senate
Vote: 27
SENATE GOVERNANCE & FIN. COMMITTEE: 6-2, 6/21/23
AYES: Caballero, Blakespear, Durazo, Glazer, Skinner, Wiener
NOES: Seyarto, Dahle
SENATE PUBLIC SAFETY COMMITTEE: 3-1, 7/11/23
AYES: Bradford, Skinner, Wiener
NOES: Ochoa Bogh
NO VOTE RECORDED: Wahab
SENATE APPROPRIATIONS COMMITTEE: 5-2, 9/1/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
NOES: Jones, Seyarto
ASSEMBLY FLOOR: 56-17, 5/25/23 - See last page for vote
SUBJECT: Firearms and ammunition: excise tax
SOURCE: Author
DIGEST:
This bill enacts the Gun Violence Prevention and School Safety Act, which imposes an excise tax on firearms and ammunition sold in the state on firearms dealers and ammunition vendors, and allocates proceeds for specified purposes.
ANALYSIS:
Existing law:
- Imposes several excise taxes, including on cigarettes and tobacco products, alcoholic beverages, motor vehicle and diesel fuel, and cannabis, among others.
- Enacts the Fee Collections Procedures Law, the state’s general purpose statute that guides California Department of Tax and Fee Administration (CDTFA) administration of special taxes and fees.
- Defines several relevant terms, including “ammunition” (Pen. Code, §16150), “ammunition vendor (Pen. Code, § 16151), “firearm” (Pen. Code, § 16520), “firearm precursor part (Pen. Code, § 16531), “handgun (Pen. Code, § 16640), “long gun,” and “rifle” (Pen. Code, § 17090).
- Contains specific definitions for dealers, licensees, and other persons, who may be granted licenses to sell firearms at retailers, which requires the dealer, licensee, or person to:
- Have a valid federal firearms license.
- Have any regulatory or business license, or licenses, required by local government.
- Have a valid seller’s permit issued by the State Board of Equalization under the Sales and Use Tax Law.
- Have a certificate of eligibility issued by the Department of Justice (DOJ).
- Are among those recorded in the centralized list kept by DOJ
- Precludes the licensing authority of a city, county, or city and county from issuing a license to any applicant who fails to provide a copy of its federal firearms license, seller’s permit, and certificate of eligibility.
- Authorizes DOJ to issue ammunition vendor licenses to applicants who the department has determined are not prohibited from possessing, receiving, owning, or purchasing ammunition, and provide a copy of its locally-issued regulatory or business license, valid seller’s permit, federal firearms license if the applicant is federally licensed, and certificate of eligibility.
- Imposes several fees upon the purchase of a new firearm in the state, which is currently $37.19 per firearm: the Dealer Record of Sale fee (DROS) is $31.19, and covers the costs of the required background check prior to purchase and the transfer registry.
- Requires firearms dealers to charge each firearm purchaser a fee not to exceed $1, except that the fee may be increased at a rate not to exceed any increase in the California Consumer Price Index, but no more than is necessary to fund specified governmental notification and reporting functions.
- Authorizes the California Department of Justice (DOJ) to require each dealer to charge each firearm purchaser or transferee a transfer fee not to exceed $1 for each firearm transaction, and allows that fee to be adjusted upward at a rate not to exceed the increase in the California Consumer Price Index.
- Requires firearms dealers to charge each person who obtains a firearm a fee not to exceed $5 for each transaction, and allows that fee to be adjusted upward at a rate not to exceed the increase in the California Consumer Price Index.
- Establishes the California Violence Intervention and Prevention (CalVIP), administered by the Board of State and Community Corrections, and states that its purpose is to improve public health and safety by supporting effective violence reduction initiatives in communities that are disproportionately impacted by violence, particularly group-member involved homicides, shootings, and aggravated assaults.
This bill:
- Enacts the Gun Violence Prevention, and School Safety Act, which imposes an excise tax upon licensed firearms dealers, firearm manufacturers, and ammunition vendors at the rate of 11 percent of the sales price of a firearm, firearm precursor part, and ammunition sold in this state, using the Penal Code definitions for those terms.
- Exempts from the tax the gross receipts from the retail sale of:
- Any sale by a licensed firearms dealer, firearms manufacturer, or ammunition vendor of a firearm, ammunition, or firearm precursor part to any active or retired peace officer or any law enforcement agency.
- Where the licensed firearms dealer, firearms manufacturer, or ammunition vendor has gross receipts from the sale of firearms, firearm precursor parts, and ammunition of less than five thousand dollars ($5,000) in the quarterly period in which the sale is made.
- Provides that the tax is due and payable quarterly on or before the last day of the month next succeeding each quarterly period of three months, and requires taxpayers to file returns electronically quarterly with CDTFA.
- Requires CDTFA to administer and collect the tax according to the Fee Collections Procedures Law, and further authorizes CDTFA to adopt and enforce rules and regulations relating to its provisions.
- Adds to requirements on firearm dealers, licensees, and other persons applying for local licenses the possession of a valid CDTFA-issued certificate of registration.
- Adds to conditions precluding the licensing authority of a city, county, or city and county from issuing a local license to a firearm dealers, licensees, and other persons failure to provide a valid CDTFA-issued certificate of registration.
- Adds to requirements for DOJ to license an ammunition vendor the possession of a valid CDTFA-issued certificate of registration.
- Directs DOJ to provide a list to CDTFA of all firearm dealers, firearm manufacturers, and ammunition vendors it licenses or that are included in its centralized lists, for purposes of administering the tax.
- Requires all firearm dealers, firearm manufacturers, and ammunition vendor subject to the tax to register with CDTFA using electronic media, and requires CDTFA to issue a certificate of registration to each eligible applicant, which is valid until cancelled or revoked.
- Directs CDTFA to notify the holder of a certificate of registration of the notice of time and place of any hearing to revoke its certificate if they fail to comply with the requirements of the excise tax.
- Directs CDTFA to notify DOJ if it revokes a license of a certificate of registration holder, which it can do when the holder fails to comply with the requirements of the excise tax set by this bill, or revokes or suspends the licensee’s seller’s permit for violating any provision of the Sales and Use Tax Law; CDTFA must also notify DOJ whenever it reinstates a certificate of registration.
- Allows DOJ to revoke any ammunition vendor’s license, or remove any firearm dealer or firearms manufacturer from its centralized list, upon notification by CDTFA that it revoked the licensee’s certificate of registration or revoked or suspended its seller’s permit; DOJ may also reinstate any firearm dealer or firearms manufacturer from its centralized list when notified by CDTFA that its certificate of registration or seller’s permit has been reinstated.
- Authorizes DOJ to adopt regulations, including emergency regulations, as necessary to administer and enforce revocation and reinstatement of firearm dealers, firearms manufacturer, and ammunition vendors under this bill.
- Establishes the State Treasury the Gun Violence Prevention and School Safety Fund, and directs proceeds of the tax to the Fund, net of refunds, and less CDTFA’s costs of administration.
- Distributes, annually, moneys in the Fund in a waterfall structure as follows, with amounts annually adjusted for inflation according to change in the California Consumer Price Index:
- Continuously appropriates the first $75 million, or as much as available, to the Board of State and Community Corrections to fund CalVIP grants and administration and evaluation of CalVIP programs.
- Upon appropriation by the Legislature, the next $50 million to the Department of Education to enhance school safety by addressing risk factors for gun violence affecting pupils from kindergarten through 12th grade, as specified.
- Upon appropriation by the Legislature, the next $15 million to the Judicial Council to support a court-based firearm relinquishment program in coordination with DOJ, as specified.
- Upon appropriation by the Legislature, the next $15 million to DOJ to fund a victims of gun violence grant program, as specified.
- Upon appropriation by the Legislature, the next $2.5 million to DOJ to support activities to inform firearm and ammunition purchasers, and firearm owners, about gun safety laws and responsibilities, as specified.
- Upon appropriation by the Legislature, the next $2.5 million to the Office of Emergency Services to provide counselling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides, as specified.
- Upon appropriation by the Legislature, the next one million to the University of California Davis’s California Firearm Violence Research Center for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury, as specified.
- Upon appropriation of the Legislature, any remaining moneys available in the fund each year after the allocations must be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- Allows any of the above agencies to reserve up to 5% of funds for administrative and promotional costs, as specified.
- Commences the tax on July 1, 2024, and requires the Director of the Department of Finance to loan $2.4 million to CDTFA to implement the tax; the loan must be repaid before tax proceeds are appropriated to the Fund.
- States that its provisions shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts, and that its tax is imposed in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
- Allows CDTFA to issue guidance or regulations as necessary if a court hold any provision of the bill invalid, which are exempt from the Administrative Procedures Act.
- Contains a severability clause.
- Defines several terms.
- Replaces references to the Board of Equalization to CDTFA.
- Includes legislative findings and declarations supporting its purposes.
Background
Federal firearm excise taxes. Congress enacted the Revenue Act of 1918 during World War I to help fund wartime spending, which included the first excise tax on firearms, shells, and cartridges. Congress then enacted the Federal Aid in Wildlife Restoration Act in 1937, which reallocated previously enacted taxes on firearms and ammunition, and extended them to archery equipment. Commonly known as Pittman-Robertson, the U.S. Fish and Wildlife Service (FWS), within the Department of the Interior, distributes tax proceeds from these taxes to fund efforts in states and territories for wildlife restoration, conservation, and hunter education and safety programs. The Act imposes taxes on the manufacturer, distributor, or importer of the good subject to the tax at the following rates:
- 10 percent for pistols and revolvers;
- 11 percent for other firearms and ammunition; and
- 11 percent for bows and archery equipment.
Gun violence in California. Although the scourge of gun violence appears omnipresent, California has one of the lowest gun death rates in the country at 8.5 deaths per 100,000 people – about 39% lower than the national average. Gun homicides in California occur at a rate of 4.1 per 100,000 people, which puts California at the 31st highest rate of gun homicides in the U.S. For reference, Texas has 5.5 gun homicides per 100,000 (24th highest), Florida has 5.8 (21st highest), and Washington D.C. has 18.8, the highest in the country. When accounting for both shooting deaths and non-fatal shootings, California has the 37th-highest rate of gun violence in the county.
Nevertheless, despite the encouraging picture these numbers may paint in absolute terms, gun violence in California is trending upward, with communities across the state seeing gun deaths reach levels not seen in more than a decade. Oakland, for example, saw more gun violence in 2021 than in any year since 2006, and Los Angeles saw more gun violence in 2021 than in any year since 2007. Moreover, a spate of recent mass shootings across California – namely, in Monterey Park, Half Moon Bay and Beverly Crest – has drawn greater attention to the utter devastation that gun violence inflicts on families and communities.
Moreover, in addition to its human cost, gun violence has a considerable financial cost. Everytown estimates that gun violence in the United States costs $557 billion annually, comparable to 2.6% of the nation’s GDP, and roughly $12.62 billion in taxpayer money. According to a recent Everytown report:
Instead of funding education, social services, economic redevelopment grants, and so many other vital public goods from which we all benefit, we are spending precious funds on an epidemic that brings nothing of benefit and plenty of heartbreak and shattered lives. While costs of course vary depending on the circumstances of the incident, each gun death costs US taxpayers an average of $273,904 for the initial and long-term repercussions of that incident, and each nonfatal gun injury costs $25,150.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- CDTFA estimates that this bill would result in additional excise tax revenues of $159 million in 2024-25 (Gun Violence Prevention, Healing, and Recovery Fund). If firearms dealers and ammunition vendors choose to pass the excise tax to on to their customers, this bill would additionally result in a state and local sales and use tax revenue gain of up to $14 million, $6.3 million of which would flow to the General Fund. Revenue would depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA notes that its revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any behavioral changes in sales that may result from the enactment of this bill.
- CDTFA indicates that it would incur administrative costs of $1.4 million in 2023-24, $952,000 in 2024-25, $759,000 in 2025-26, and $1.2 million annually thereafter, to implement the provisions of the bill. Specifically, the department would incur new costs to (1) identify and notify taxpayers, (2) create a new tax return, (3) program computer systems, (4) revise publications and audit/compliance manuals, (5) develop special notices and tax guides, (6) create regulations, and (7) respond to inquiries from the public.
- DOJ would incur General Fund administrative costs to facilitate a grant program as outlined in the bill. The magnitude of these costs would depend upon the size of the grant program. As an order of magnitude, if the grant program were $15 million per year, DOJ’s ongoing administrative costs would be about $1 million annually.
SUPPORT: (Verified 9/2/23)
AJC San Francisco
Alameda Health System
American Academy of Pediatrics, California
American Association of University Women - California
American College of Surgeons Joint Advocacy Committee
American Jewish Committee - Los Angeles
American Jewish Committee - San Diego
America's Physician Groups
Antioch Police Department
Brady California
Brady Campaign
Brady United Against Gun Violence, Ventura County Chapter
California Chapter of the American College of Emergency Physicians
California Medical Association
California Partnership for Safe Communities
California Partnership to End Domestic Violence
California Women's Law Center
Californians for Safety and Justice
City and County of San Francisco Mayor London Breed
City of Alameda Mayor Marilyn Ezzy Aschcraft
City of Alhambra
City of Berkeley Mayor Jesse Arreguin
City of Calabasas Mayor David Shapiro
City of Calistoga Mayor Donald Williams
City of Diamond Bay Mayor Andrew Chou
City of Elk Grove Mayor Bobbie Singh-Allen
City of Emeryville Mayor John J. Bauters
City of Encinitas Mayor Tony Kranz
City of Fresno Councilmember Miguel Arias
City of Goleta Mayor Paula Perotte
City of Half Moon Bay Mayor Deborah Penrose
City of Healdsburg Mayor Ariel Kelly
City of Hermosa Beach Mayor Raymond Jackson
City of Hillsborough Mayor Christine Krolik
City of Imperial Beach Mayor Paloma Aguirre
City of Long Beach Mayor Rex Richardson
City of Los Angeles
City of Los Angeles Mayor Karen Bass
City of Martinez Mayor Brianne Zorn
City of Menlo Park Mayor Jen Wolosin
City of Monterey Mayor Tyller Williamson
City of Monterey Park
City of Oakland Department of Violence Prevention
City of Perris Mayor Michael Vargas
City of Pomona Mayor Tim Sandoval
City of Richmond Mayor Eduardo Martinez
City of Sacramento
City of Sacramento Mayor Darrell Steinberg
City of San Clemente Mayor Chris Duncan
City of San Diego
City of San Diego Mayor Todd Gloria
City of San Jose
City of San Rafael Mayor Kate Colin
City of Santa Ana
City of Santa Ana Mayor Pro Tem Jessie Lopez
City of Solana Beach Mayor Lesa Heebner
City of Wes Sacramento Mayor Martha Guerro
Cleanearth4kids.org
Community Regional Medical Center
County of Santa Clara
Democratic Central Committee Siskiyou County
Democratic Party of Contra Costa County
Democrats of Rossmoor
EMS Medical Directors Association of California
Equal Justice USA
ETTA
Everytown for Gun Safety Action Fund
Family Violence Appellate Project
Family Violence Law Center
Fresh Lifelines for Youth
Fresno Brady
Fresno County Democratic Central Committee
Fresno Economic Opportunities Commission
Giffords
Giffords Law Center to Prevent Gun Violence
Greater Sacramento Urban League
Hadassah
IKAR
Initiate Justice
JCRC Bay Area
Jewish Center for Justice
Jewish Community Federation and Endowment Fund
Jewish Community Relations Council of Sacramento
Jewish Community Relations Council of Silicon Valley
Jewish Democratic Club of Silicon Valley
Jewish Democratic Club of Solano County
Jewish Family & Children's Service of Long Beach and Orange County
Jewish Family & Community Services East Bay
Jewish Family Service of Los Angeles
Jewish Family Service San Diego
Jewish Family Services of Silicon Valley
Jewish Federation of Greater Los Angeles, the
Jewish Federation of Greater Santa Barbara
Jewish Federation of the Greater San Gabriel and Pomona Valleys
Jewish Federation of the Sacramento Region
Jewish Long Beach
Jewish Public Affairs Committee
Jewish Public Affairs Committee of California
Jewish Silicon Valley
Johns Hopkins Center for Gun Violence Solutions
Juma Ventures
JVS Socal
Kern County Democratic Party
Lakeshore Avenue Baptist Church
Loma Linda University Adventist Health Sciences Center and Its Affiliated Entities
Los Angeles County Board of Supervisors
Los Angeles County Democratic Party
Los Angeles County Hospital-based Violence Intervention Consortium
Los Angeles Police Department
Los Angeles Violence Intervention Coalition
March for Our Lives Action Fund
March for Our Lives California
Moms Demand Action - CA
Moms Demand Action for Gun Sense in America
Mono County Democratic Central Committee
Movement 4 Life
Napa County Democratic Central Committee
National Association of Pediatric Nurse Practitioners
National Association of Pediatric Nurse Practitioners - California Chapters
National Association of Social Workers, California Chapter
National Institute for Criminal Justice Reform
Orange County Supervisor Doug Chaffee
Orange County Supervisor Vicente Sarmiento
Palm Springs Police Department
Peace and Justice Law Center
Progressive Zionists of California
Prosecutors Alliance California
Public Health Advocates
Reach Out
Sacramento County Young Democrats
San Diegans for Gun Violence Prevention
San Diego City Attorney Mara Elliot
San Francisco Board of Supervisors
San Francisco Democratic Party
San Francisco Police Department
San Mateo County Democracy for America
San Mateo County Democratic Party
Santa Clara County Democratic Party
Santa Clara County District Attorney Jeffrey Rosen
SEIU California
Shaphat Outreach
Silicon Valley Alliance for Gun Safety
Smart Justice California
Solano County Democratic Central Committee
Soledad Enrichment Action, INC
Sonoma County Board of Supervisors.
Sonoma County Democratic Party
Southern California Crossroads
Students Demand Action
Students Demand Action for Gun Sense in America
The Health Alliance for Violence Intervention
Toberman Neighborhood Center
Town of Fairfax Mayor Chance Cutrano
United Nurses Associations of California/Union of Health Care Professionals
Urban Peace Institute
Valorcalifornia / Valorus
Ventura County Democratic Party
We Are One United
WEAVE
Westchester-Playa Democratic Club
Women Against Gun Violence
Women Democrats of Sacramento County
Woodland Police Department
Youth Alive!
OPPOSITION: (Verified 9/2/23)
Black Brant Group
California Bowmen Hunters/State Archery Association
California Chapter Wild Sheep Foundation
California Coalition of School Safety Professionals
California Deer Association
California Hawking Club
California Houndsmen for Conservation
California Rifle and Pistol Association, Inc.
California State Chapter - National Wild Turkey Federation
California Waterfowl Association
Cal-Ore Wetlands and Waterfowl Council
Claremont Police Officers Association
Congressional Sportsmen's Foundation
DefendingConstitutionalRights
Ducks Unlimited
Golden Gate Chapter - Safari Club International
Gun Owners of California, INC.
Howard Jarvis Taxpayers Association
Lola Fitzgerald
National Rifle Association
Nor-Cal Guides and Sportsmen's Association
Rocky Mountain Elk Foundation
Sacramento Chapter - Safari Club International
Safari Club International - California Chapters
San Diego County Wildlife Federation
San Francisco Bay Area Chapter - Safari Club International
Suisun Resource Conservation District
Tulare Basin Wetlands Association
412 Individuals
ARGUMENTS IN SUPPORT: According to the author, “Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax on manufacturers will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.”
ARGUMENTS IN OPPOSITION: According to a coalition of 21 firearms advocacy, sporting and wildlife conservation groups, “All of California’s citizens support and benefit from efforts intended to address the negative impact the criminal use of firearms has upon our law-abiding public. Because those who perform these illegal acts do not buy their firearms or munitions from licensed dealers, they would not pay a single cent towards the programs this bill would fund. Rather, AB 28 would wrongly place the entire burden of funding these initiatives on a small, innocent segment of California’s law-abiding public. Additionally, by substantially raising the cost of purchasing a firearm and ammunition in California, AB 28 would disproportionately impact the ability of economically disadvantaged communities and individuals to legally purchase a firearm and ammunition to protect themselves and their loved ones. Further, AB 28 would impede their equitable access to hunting and shooting sports – at a time when the Administration and the Legislature are seeking to increase participation in outdoor recreation and access for all Californians. AB 28 would do nothing to reduce criminal use of firearms. What AB 28 would do is inequitably impact the ability of disadvantaged communities and economically challenged individuals to protect themselves and their families, unjustly place the entire burden of funding these initiatives on California’s innocent and law-abiding hunters and shooters, and negatively impact our wildlife and their habitats.”
ASSEMBLY FLOOR: 56-17, 5/25/23
AYES: Addis, Alvarez, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Reyes, Luz Rivas, Robert Rivas, Blanca Rubio, Santiago, Schiavo, Ting, Valencia, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NOES: Alanis, Chen, Megan Dahle, Davies, Dixon, Essayli, Flora, Vince Fong, Gallagher, Hoover, Lackey, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron, Wallis
NO VOTE RECORDED: Aguiar-Curry, Arambula, Bains, Mathis, Ramos, Rodriguez, Soria
Prepared by: Colin Grinnell / GOV. & F. / (916) 651-4119
9/4/23 9:26:41
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 28 (Gabriel) - Firearms and ammunition: excise tax
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 28 would impose an excise tax of 11 percent upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, as specified.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on September 1, 2023
Fiscal Impact:
- The California Department of Tax and Fee Administration (CDTFA) estimates that this bill would result in additional excise tax revenues of $159 million in 2024-25 (Gun Violence Prevention, Healing, and Recovery Fund). If firearms dealers and ammunition vendors choose to pass the excise tax to on to their customers, the bill would additionally result in a state and local sales and use tax revenue gain of up to $14 million, $6.3 million of which would flow to the General Fund. Revenue would depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA notes that its revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any behavioral changes in sales that may result from the enactment of the bill.
- CDTFA indicates that it would incur administrative costs of $1.4 million in 2023-24, $952,000 in 2024-25, $759,000 in 2025-26, and $1.2 million annually thereafter, to implement the provisions of the bill. Specifically, the department would incur new costs to (1) identify and notify taxpayers, (2) create a new tax return, (3) program computer systems, (4) revise publications and audit/compliance manuals, (5) develop special notices and tax guides, (6) create regulations, and (7) respond to inquiries from the public.
- The Department of Justice (DOJ) would incur General Fund administrative costs to facilitate a grant program as outlined in the bill. The magnitude of these costs would depend upon the size of the grant program. As an order of magnitude, if the grant program were $15 million per year, DOJ’s ongoing administrative costs would be about $1 million annually.
Author Amendments:
- Change the name of the act to the Gun Violence Prevention and School Safety Act.
- Make technical changes regarding the administration of the tax and various other provisions of the bill.
- Clarify that 5 percent of the various funding allocations can be utilized for administrative costs and make other clarifying changes.
Committee Amendments:
Add a coauthor.
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SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 28 (Gabriel) - Firearms and ammunition: excise tax
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
AB 28 would impose an excise tax of 11 percent upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, as specified.
Fiscal Impact:
- The California Department of Tax and Fee Administration (CDTFA) estimates that this bill would result in additional excise tax revenues of $159 million in 2024-25 (Gun Violence Prevention, Healing, and Recovery Fund). If firearms dealers and ammunition vendors choose to pass the excise tax to on to their customers, the bill would additionally result in a state and local sales and use tax revenue gain of up to $14 million, $6.3 million of which would flow to the General Fund. Revenue would depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA notes that its revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any behavioral changes in sales that may result from the enactment of the bill.
- CDTFA indicates that it would incur administrative costs of $1.4 million in 2023-24, $952,000 in 2024-25, $759,000 in 2025-26, and $1.2 million annually thereafter, to implement the provisions of the bill. Specifically, the department would incur new costs to (1) identify and notify taxpayers, (2) create a new tax return, (3) program computer systems, (4) revise publications and audit/compliance manuals, (5) develop special notices and tax guides, (6) create regulations, and (7) respond to inquiries from the public.
- The Department of Justice (DOJ) would incur General Fund administrative costs to facilitate a grant program as outlined in the bill. The magnitude of these costs would depend upon the size of the grant program. As an order of magnitude, if the grant program were $15 million per year, DOJ’s ongoing administrative costs would be about $1 million annually.
Background:
Congress enacted the Revenue Act of 1918 to help finance increased defense spending during the First World War. The Act included the first excise tax on firearms, shells, and cartridges. Congress subsequently enacted the Federal Aid in Wildlife Restoration Act in 1937 (commonly known as Pittman-Robertson), which (1) reallocated previously enacted taxes on firearms and ammunition, and (2) extended them to archery equipment. The U.S. Fish and Wildlife Service (FWS) distributes the proceeds from these taxes to fund efforts in states and territories for wildlife restoration, conservation, and hunter education and safety programs. The Act imposes taxes on the manufacturer, distributor, or importer of the good subject to the tax at the following rates: (1) 10 percent for pistols and revolvers, (2) 11 percent for other firearms and ammunition, and (3) 11 percent for bows and archery equipment. Between 1939 and 2019, FWS disbursed nearly $19 billion for wildlife restoration, hunter education, safety activities.
While California does not currently impose an excise tax on firearms and ammunition, it imposes a $37.19 fee on each firearm purchase. This fee includes (1) a $31.19 Dealer Record of Sale (DROS) fee, which covers the costs of background checks and a transfer registry, (2) a $1.00 Firearms Safety Act Fee, and (3) a $5.00 Safety and Enforcement Fee. In a private party transfer, the firearms dealer may charge an additional fee of up to $10 per firearm.
Proposed Law:
This bill would, among other things, do the following:
- Effective July 1, 2024, impose upon licensed firearms dealers, firearms manufacturers, and ammunition vendors an 11 percent excise tax on the sales price of handgun, firearm precursor part, and ammunition, as defined by the Penal Code, sold in the State. Additionally, the bill would, effective July 1, 2024, provide that it is unlawful for any person who has not registered for a permit or whose permit has been canceled or revoked to operate as a firearm dealer, firearm manufacturer, or ammunition vendor until they have fully complied with the provisions of the bill and have been issued a new permit or their permit has been reinstated.
- Exempt from the tax (1) the sale of any firearm, ammunition, or firearm precursor part to any active or retired peace officer or any law enforcement agency employing that peace officer, and (2) sales made by firearms dealers, firearms manufacturer, or ammunition vendors with gross receipts of less than $5,000 in any quarterly period.
- Direct CDTFA to administer and collect the tax as specified.
- Create the Gun Violence Prevention, Healing, and Recovery Fund (Fund) in the state treasury, and deposit all proceeds from the tax into the Fund, less CDTFA’s administrative costs.
- Require the moneys received in the Fund to be used to fund various gun violence prevention, education, research, response, and investigation programs, as specified.
- Allow CDTFA to issue regulations, including emergency regulations, pursuant to the Administrative Procedures Act (APA). If any provision of the bill or its application is held invalid, the bill would allow CDTFA to issue guidance or adopt regulations necessary to address any such invalidity and to promote its purposes, including to provide additional exemptions, which are exempt from the APA. Any regulations must seek to ensure minimal disruption to funding and operations of programs and initiatives funded by the bill.
- Direct the Department of Finance to make a loan of $2.4 million to CDTFA to fund initial implementation costs, which must be repaid from tax revenues.
Related Legislation:
This bill is substantially similar to three previous bills attempting to impose an excise tax on firearms and ammunition. AB 1227 (Levine, 2022), as amended on May 5, 2022, included provisions related to an excise tax on firearms. The author introduced substantially similar measures in 2021 (AB 1223) and in 2019 (AB 18). AB 18 was held on suspense in the Assembly Appropriations Committee. AB 1223 made it to the Assembly floor and AB 1227 made it to the Senate floor. However, both contained urgency clauses, and failed to reach the necessary two-thirds vote to pass.
Staff Comments:
CDTFA specifically estimates that in 2024-25, $61 million would be generated from the excise tax on handgun sales, $41 million would result from the tax on long guns, and another $57 million would be generated by the tax on ammunition sales. The department notes that handgun sales have fluctuated widely in the past; given the variance, the revenues that this measure would raise could be vastly different (higher or lower) than the estimate generated by CDTFA.
Any local government costs resulting from the mandate in this measure are not state-reimbursable because the mandate only involves the definition of a crime or the penalty for conviction of a crime.
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SENATE COMMITTEE ON PUBLIC SAFETY
Senator Aisha Wahab, Chair
2023 - 2024 Regular
Bill No: AB 28 Hearing Date: July 11, 2023
Author: | Gabriel | ||
Version: | June 26, 2023 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | AB | ||
Subject: Firearms and ammunition: excise tax
HISTORY
Source: Author
Prior Legislation: AB 1227 (Levine, 2022), failed on Senate Floor
AB 1223 (Levine, 2021), failed on Assembly Floor
AB 18 (Levine, 2019), held in Assembly Appropriations
AB 1603 (Wicks), Ch. 735, Stats. of 2019
AB 1669 (Bonta), Ch. 736, Stats. of 2019
Support: American Association of University Women – California; Antioch Police Department; Board of Supervisors for The City and County of San Francisco; Brady United Against Gun Violence, Ventura County Chapter; California Partnership to End Domestic Violence; California Women’s Law Center; City of Alhambra; City of Sacramento; City of San Diego; City of San Jose; County of Santa Clara; Darrell Steinberg, Mayor of Sacramento; Democratic Central Committee Siskiyou County; Democratic Party of Contra Costa County; EMS Medical Directors Association of California (EMDAC); Family Violence Law Center; Greater Sacramento Urban League; Initiate Justice; Kern County Democratic Party; Office of Los Angeles Mayor Karen Bass; Prosecutors Alliance California; Reach Out; Sacramento County Young Democrats; San Diego City Attorney's Office; San Mateo County Democracy for America; San Mateo County Democratic Party; Smart Justice California; Solano County Democratic Central Committee; United Nurses Associations of California/union of Health Care Professionals; Valorcalifornia / Valorus; Weave; Westchester/playa Democratic Club; Women Against Gun Violence; Women Democrats of Sacramento County; Woodland Police Department
Opposition: Black Brant Group; Cal-ore Wetlands and Waterfowl Council; California Bowmen Hunters/State Archery Association; California Chapter Wild Sheep Foundation; California Deer Association; California Hawking Club; California Houndsmen for Conservation; California Rifle and Pistol Association, INC.; California State Chapter - National Wild Turkey Federation; California Waterfowl Association; Congressional Sportsmen's Foundation; Ducks Unlimited; Golden Gate Chapter - Safari Club International; Gun Owners of California, INC.; National Rifle Association - Institute for Legislative Action; Nor-cal Guides and Sportsmen's Association; Rocky Mountain Elk Foundation; Sacramento Chapter - Safari Club International; Safari Club International - California Chapters; San Diego County Wildlife Federation; San Francisco Bay Area Chapter - Safari Club International; Suisun Resource Conservation District; Tulare Basin Wetlands Association; 1 individual.
Assembly Floor Vote: 56 - 17
PURPOSE
The purpose of this bill is to impose upon state-licensed firearm dealers, firearm manufacturers and ammunition vendors an excise tax in the amount of 11% of the gross receipts from the retail sale of a firearm, firearm precursor part, and ammunition. The bill also requires that moneys collected via the tax be used to fund various gun violence prevention, education and research programs, as specified.
Existing federal law imposes a 10% tax on the manufacturer, producer, or importer of a pistol or revolver. (26 U.S.C. § 4181).
Existing federal law imposes a 11% tax on the manufacturer, producer, or importer of a firearm other than a pistol or revolver and on shells and cartridges. (Ibid.)
Existing state law, the California Constitution, states that the Legislature may provide for property taxation of all forms of tangible personal property, and by two-thirds of the membership of each house concurring, may classify such personal property for differential taxation or for exemption. (Cal. Const., Art. XIII, § 2.)
Existing law declares the Legislature’s intent:
- To develop community violence prevention and conflict resolution programs, in the state, based upon the recommendations of the California Commission on Crime Control and Violence Prevention, that would present a balanced, comprehensive educational, intellectual, and experiential approach toward eradicating violence in our society; and,
- That these programs shall be regulated, and funded pursuant to contracts with the OES. (Pen. Code, § 14112.)
- To develop community violence prevention and conflict resolution programs, in the state, based upon the recommendations of the California Commission on Crime Control and Violence Prevention, that would present a balanced, comprehensive educational, intellectual, and experiential approach toward eradicating violence in our society; and,
Existing law states that first priority shall be given to programs that provide community education, outreach, and coordination, and include creative and effective ways to translate the recommendations of the California Commission on Crime Control and Violence Prevention into practical use in one or more of the following subject areas:
- Parenting, birthing, early childhood development, self-esteem, and family violence, to include child, spousal, and elderly abuse;
- Economic factors and institutional racism;
- Schools and educational factors;
- Alcohol, diet, drugs, and other biochemical and biological factors;
- Conflict resolution; and,
- The media. (Pen. Code, § 14114, subd. (a).)
- Parenting, birthing, early childhood development, self-esteem, and family violence, to include child, spousal, and elderly abuse;
Existing law provides that first priority programs may additionally provide specific direct services or contract for those services in one or more of the program areas as necessary to carry out the recommendations of the commission when those services are not otherwise available in the community and existing agencies do not furnish them. (Pen. Code, § 14115.)
Existing law provides that second priority shall be given to programs that conform to the same requirements as first priority programs, except that the educational component shall not be mandatory in each subject area, but shall be provided in at least three of those areas, and the programs shall provide specific direct services or contract for services in one or more program areas. (Pen. Code, § 14116.)
Existing law provides that each program shall have a governing board or an interagency coordinating team, or both, of at least nine members representing a cross section of existing and recipient, community-based, public and private persons, programs, agencies, organizations, and institutions. Specifies the duties of the governing board or coordinating team. (Pen. Code, § 14117.)
Existing law requires the OES to prepare and issue written program, fiscal, and administrative guidelines for the contracted programs that are consistent with this title, including guidelines for identifying recipient programs, agencies, organizations, and institutions, and organizing the coordinating teams. (Pen. Code, § 14118, subd. (a).)
Existing law requires OES to promote, organize, and conduct a series of one-day crime and violence prevention training workshops around the state, as specified. (Pen. Code, § 14119.)
Existing law establishes CalVIP, to be administered by the Board of State and Community Corrections. (Pen. Code, § 14131, subd. (a).)
Existing law states that the purpose of CalVIP is to improve public health and safety by supporting effective violence reduction initiatives in communities that are disproportionately impacted by violence, particularly group-member involved homicides, shootings, and aggravated assaults. (Pen. Code, § 14131, subd. (b).)
Existing law defines several relevant terms, including “ammunition” (Pen. Code, §16150), “ammunition vendor (Pen. Code, § 16151), “firearm” (Pen. Code, § 16520), “firearm precursor part (Pen. Code, § 16531), “handgun (Pen. Code, § 16640), “long gun,” and “rifle” (Pen. Code, § 17090).
Existing law authorizes the Department of Justice (DOJ) to require firearms dealers to charge each firearm purchaser a fee not to exceed $1, except that the fee may be increased at a rate not to exceed any increase in the California Consumer Price Index. (Pen. Code, § 28225(a).)
Existing law provides that the fee in Penal Code §28225(a) shall be no more than is necessary to fund specified governmental notification and reporting functions. (Pen. Code, § 28225(b).)
Existing law authorizes DOJ to require each dealer to charge each firearm purchaser or transferee a transfer fee not to exceed one dollar ($1) for each firearm transaction, and allows that fee to be adjusted upward at a rate not to exceed the increase in the California Consumer Price Index. (Pen. Code, § 23690.)
Existing law authorizes DOJ to require firearms dealers to charge each person who obtains a firearm a fee not to exceed five dollars ($5) for each transaction, and allows that fee to be adjusted upward at a rate not to exceed the increase in the California Consumer Price Index. (Pen. Code, § 28300.)
Existing law requires the DOJ to recover its costs under specified provisions related to the sale of ammunition by charging the ammunition transaction or purchase applicant a fee not to exceed the fee charged for its DROS process, as described in Penal Code Section 28225, and not to exceed the DOJ’s reasonable costs. (Pen. Code, § 30370(c).)
Existing law authorizes a certified instructor of the firearm safety test to charge a fee of twenty-five dollars ($25), fifteen dollars ($15) of which is to be paid to DOJ to cover its costs in carrying out and enforcing firearms laws. (Pen. Code, § 31650.)
Existing law requires other various fees to be paid to the Department of Justice at the time of a firearm or ammunition purchase. (Pen. Code, § 28200, et. seq.)
Existing law imposes an eighteen cent ($0.18) tax on each gallon of fuel sold in the state. ((Rev. and Tax. Code, § 7360.)
Existing law imposes taxes on cigarettes. (Rev. and Tax Code §§ 30101, et. seq.)
Existing law imposes taxes on cannabis. (Rev. and Tax. Code §§ 34010, et. seq.)
Existing law defines “gross receipts” as the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of several specified costs or taxes. (Rev. and Tax Code § 6012.)
This bill contains several findings and declarations regarding gun violence, existing firearm regulations and the firearm industry in the United States.
This bill contains several definitions for terms used therein, including:
- “Ammunition,” “ammunition vendor,” “firearm,” “firearm precursor part,” “handgun,” “long gun,” and “rifle” all have the same meaning as those terms are defined in the relevant Penal Code sections.
- “Department” means the California Department of Tax and Fee Administration
- “Firearms Manufacturer” means any entity licensed to manufacture firearms pursuant to existing federal law that engages in any retail sale of a firearm or firearm precursor part to a consumer in California.
- “Gross receipts” has the same meaning as that term is defined in the Revenue and Taxation Code.
- “Law Enforcement Agency” means any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
- “Licensed firearms dealer” has the same meaning as the relevant section of the Penal Code.
- “Peace officer” means any person described in specified sections of the Penal Code who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
- “Retail sale” has the same meaning as that term is defined in the Revenue and Taxation Code.
This bill establishes the Gun Violence Prevention, Healing and Recovery Fund in the State Treasury to receive money collected via the tax imposed by the bill, and requires the funds to be annually allocated in the following order:
- The first $75 million to be continuously appropriated to the Board of State and Community Corrections (BSCC) for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants, administration and evaluations of CalVIP-supported programs.
- The next $50 million, or as much as is available and only by appropriation by Legislature, to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
- The next $15 million, or as much as is available and only by appropriation by Legislature, to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who are prohibited from owning or possessing firearms and ammunition pursuant to court order.
- The next $15 million, or as much as is available and only by appropriation by Legislature, to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
- The next $2.5 million, or as much as is available and only by appropriation by Legislature, to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities.
- The next $2.5 million, or as much as is available and only by appropriation by Legislature, to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $1 million, or as much as is available and only by appropriation by Legislature, to the University of California, Davis, California Firearm Violence Research Center, if accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. The bill provides this allocation may be made over the course of more than one budget year, but cannot exceed $1 million.
This bill provides that any remaining moneys available in the fund each year after the allocations above shall, by appropriation of the Legislature, be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
This bill provides, commencing July 1, 2024, that an excise tax shall be imposed upon licensed firearms dealers, firearms manufacturers, and ammunition vendors, at the rate of 11 percent of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
This bill exempts from this tax the sale of any firearm, ammunition, or firearm precursor part to any active or retired peace officer or any law enforcement agency employing that peace officer, as well as sales made by firearms dealers, firearms manufacturer, or ammunition vendors with gross receipts of less than $5,000 in any quarterly period.
This bill directs the CDTFA to administer and collect the taxes pursuant to the Fee Collections Procedures Law, and authorizes the department to adopt regulations, including emergency regulations to implement the bill.
This bill provides that the taxes imposed by its provisions are due and payable to the department quarterly on or before the last day of the month next succeeding each quarterly period of three months, and that, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the department using electronic media.
This bill provides that each licensed firearms dealer, firearms manufacturer or ammunition vendor subject to the tax shall register with the department using electronic media and provide specified information, and that the department shall issue a permit to each eligible applicant that has registered, which is valid until revoked.
This bill provides that if a permitholder fails to comply with any provision or the bill or related regulation, the department shall provide notice in writing of no less than 10 days specifying the time and place of hearing and requiring the permitholder to show cause why their permit should not be revoked, and prescribes the manner of service.
This bill provides that the department may, after notice and hearing, revoke a permit due to a violation or omission.
This bill includes a process by which a permitholder who has had their permit revoked may have their permit reinstated.
This bill provides that it shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts, and its tax is imposed in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
This bill authorizes CDTFA to issue regulations, including emergency regulations pursuant to the Administrative Procedures Act. Specifically, if any provision of the bill or its application is held invalid, the bill allows CDTFA to issue guidance or adopt regulations necessary to address any such invalidity and to promote its purposes, including to provide additional exemptions, which are exempt from the APA. Any regulations must seek to ensure minimal disruption to funding and operations of programs and initiatives funded by the bill.
This bill directs the Director of Finance to make a loan of $2.4 million to CDTFA to fund initial implementation costs, which must be repaid from tax revenues.
This bill includes a severability clause.
COMMENTS
- Need for This Bill
According to the Author:
Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.
- Gun Violence in California
Although the scourge of gun violence appears omnipresent, California has one of the lowest gun death rates in the country at 8.5 deaths per 100,000 people – about 39% lower than the national average. Gun homicides in California occur at a rate of 4.1 per 100,000 people, which puts California at the 31st highest rate of gun homicides in the U.S. For reference, Texas has 5.5 gun homicides per 100,000 (24th highest), Florida has 5.8 (21st highest), and Washington D.C. has 18.8, the highest in the country.[1] When accounting for both shooting deaths and non-fatal shootings, California has the 37th-highest rate of gun violence in the county.[2]
Nevertheless, despite the encouraging picture these numbers may paint in absolute terms, gun violence in California is trending upward, with communities across the state seeing gun deaths reach levels not seen in more than a decade. Oakland, for example, saw more gun violence in 2021 than in any year since 2006, and Los Angeles saw more gun violence in 2021 than in any year since 2007.[3] Moreover, a spate of recent mass shootings across California – namely, in Monterey Park, Half Moon Bay and Beverly Crest – has drawn greater attention to the utter devastation that gun violence inflicts on families and communities.[4]
Moreover, in addition to its human cost, gun violence has a considerable financial cost. Everytown estimates that gun violence in the United States costs $557 billion annually, comparable to 2.6% of the nation’s GDP, and roughly $12.62 billion in taxpayer money. According to a recent Everytown report:
Instead of funding education, social services, economic redevelopment grants, and so many other vital public goods from which we all benefit, we are spending precious funds on an epidemic that brings nothing of benefit and plenty of heartbreak and shattered lives. While costs of course vary depending on the circumstances of the incident, each gun death costs US taxpayers an average of $273,904 for the initial and long-term repercussions of that incident, and each nonfatal gun injury costs $25,150.[5]
As explained in greater detail below, this bill, titled the Gun Violence Prevention, Healing, and Recovery Act, imposes an excise tax on the gross receipts of gun dealers and manufacturers, which, according to the bill’s findings and declarations, is intended “generate sustained revenue for programs that are designed to remediate the devastating effects these products [firearms, firearm precursor parts, and ammunition] cause families and communities across this state.” Additionally, the findings state that the measure would “provide dedicated revenue to sustain and expand effective gun violence prevention, healing, and recovery programs for families and communities across California, particularly in communities most disproportionately impacted by gun violence.”
- Existing Firearm-Related Fees in California
California currently imposes several fees related to the purchase of a new firearm in the state. The total state fee for a firearm purchase is $37.19, the bulk of which consists of the Dealer Record of Sale (DROS) fee, which covers the costs of the required background check prior to purchase. The DROS fee also funds several firearm-related responsibilities of the Department of Justice, including enforcement efforts and management of the Armed Prohibited Persons System. The balance of the state fee consists of a $1.00 Firearms Safety Act Fee and a $5.00 Safety and Enforcement Fee. These fees are imposed on the vendors but are generally paid by the purchasers. Additionally, in the event of a private party transfer, a firearms dealer may charge an additional fee of up to $10.00 per firearm.[6]
This bill imposes an 11% tax on the gross receipts of the sale of firearms, firearm precursor parts and ammunition in the state of California., Gross receipts taxes differ from sales taxes in that they are technically levied on the seller of a good rather than at the point of sale. In practice, however, gross receipts taxes often get passed to the consumer via a higher retail price for the good in question. This measure specifies that the tax is imposed upon licensed firearms dealers, firearms manufacturers and ammunition vendors, but nothing in the bill precludes dealers and manufacturers from raising their prices to offset the tax and functionally passing the tax on to the consumers.
- California Violence Intervention and Prevention Grant Program (CalVIP)
The CalVIP grant program was established in 2017 and replaced the California Gang Reduction Intervention and Prevention grant program. According to the BSCC website:
In October 2019 Governor Newsom signed the Break the Cycle of Violence Act (AB 1603). AB 1603 codified the establishment of CalVIP and defined its purpose: to improve public health and safety by supporting effective violence reduction initiatives in communities that are disproportionately impacted by violence, particularly group-member involved homicides, shootings, and aggravated assaults. The Break the Cycle of Violence act specifies that CalVIP grants shall be used to support, expand and replicate evidence-based violence reduction initiatives, including but not limited to (1) hospital-based violence intervention programs, (2) evidence-based street outreach programs, and (3), focused deterrence strategies.
These initiatives should seek to interrupt cycles of violence and retaliation in order to reduce the incidence of homicides, shootings, and aggravated assaults and shall be primarily focused on providing violence intervention services to the small segment of the population that is identified as having the highest risk of perpetrating or being victimized by violence in the near future.
AB 28 allocates funds received via the gross receipts tax to several gun violence programs in a specific waterfall structure, where the Legislature appropriates funds to each priority until it reaches the specified level, with any excess flowing to the next level until the Legislature appropriates the total annual revenue amount. The first and largest allocation under the bill, which is also the only allocation that is continuously appropriated, is an annual appropriation of $75 million to Cal VIP. The other allocations (listed on p.5 of this analysis) are only actually appropriated upon action by the Legislature.
- Excise Taxes and Effect of This Bill
An excise tax is a tax imposed on a specific good or activity, and generally related to the manufacture, sale or consumption of specific commodities, or licenses to pursue certain occupations. A subset of excise taxes are known as “sin” or “vice” taxes, and are levied on specific goods believed to be harmful to society and individuals, such as alcohol, tobacco and gambling, among other things. Sin taxes are generally intended to lower demand for the targeted good by increasing its price. California imposes excise taxes – many of which may be considered “sin” taxes – on several types of goods including gasoline, cigarettes, cellphones and cannabis. As alluded to in Comment 3 above with regard to gross receipts taxes, even though excise taxes are collected from businesses, virtually all California merchants pass on the excise tax to the customer through higher prices for the taxed goods.
This bill imposes an 11% gross receipts tax upon state-licensed firearms dealers, firearms manufacturers and ammunition vendors. Based on the findings and declarations included in the bill, it is evident that this tax is not intended to operate as a sin tax to discourage the sale and purchase of firearms, ammunition and precursor parts:
The tax specified in this act is a modest and reasonable tax on a profitable industry whose lawful and legitimate business activity imposes substantial harmful externalities on California’s families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition.
The provision establishing this finding also cites research suggesting that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.[7]
Rather, this tax more closely resembles what is known as a Pigovian tax, or one intended to correct for the negative externalities caused by a specific market activity – in this case, societal costs related to the sale of firearms, ammunition and precursor parts. Generally, Pigovian taxes are calculated by assessing the marginal costs of these negative externalities, which, in the case of firearms, would be equal to losses – like injury, death, and lost wages – resulting from crimes, accidents and suicides. This bill, however, takes a different approach and sets the rate of the tax imposed on firearm sales to resemble an existing federal tax on firearm and ammunition. That tax, established by the Federal Aid in Wildlife Restoration Act of 1937[8] (also known as the Pittman-Robertson Act), imposes an 11% levy on firearms, ammunition and archery equipment and distributes the proceeds to state governments for wildlife-related projects. Proceeds from that tax generate tens of millions of dollars annually for conservation efforts across California. Unlike the Pittman-Robertson Act, however, this bill seeks to establish a tighter nexus between the tax it imposes and the target of the proceeds it generates. Specifically, the proceeds of the tax imposed under this bill would be directed exclusively toward specified gun violence prevention, education and research programs in the waterfall structure discussed above.
- Second Amendment Considerations
The Second Amendment to the U.S. Constitution provides, “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.” Recently, the United States Supreme Court issued an opinion striking down New York’s proper cause requirements for applicants wishing to obtain a CCW license, and establishing a new test for determining whether a law comports with the Second Amendment’s right to bear arms.[9] Under that test, when the Second Amendment’s plain text covers an individual’s conduct, the Constitution presumptively protects that conduct. The government must then justify its regulation by demonstrating that it is consistent with the Nation’s historical tradition of firearm regulation, not just that the regulation promotes an important governmental interest, as was the case previously. Under the Bruen decision, “how and why the regulations burden a law-abiding citizen’s right to armed self-defense” matters. The Court said, “whether modern and historical regulations impose a comparable burden on the right of armed self-defense and whether that burden is comparably justified are ‘central’ considerations when engaging in an analogical inquiry.”[10]
Regarding taxes, generally, while the Supreme Court usually “declines to closely examine the regulatory motive or effect of revenue-raising measures,” they have noted a point at which a tax becomes “a mere penalty with the characteristics of regulation and punishment.”[11] In the context of firearms, the Pittman-Robertson Act has evaded or withstood legal challenge for over 100 years, which, prior to the Bruen decision, would have strongly suggested that firearm taxes generally do not run afoul the Second Amendment, provided they do not make firearm ownership so infeasible as to burden the rights that the amendment protects. However, whether excise taxes on firearms will survive in a post-Bruen legal landscape is an open question.
- Multiple Attempts
This bill is substantially similar to three previous bills attempting to impose an excise tax on firearms and ammunition. AB 1227 (Levine), of the 2021-2022 Legislative Session, as amended on May 5, 2022, included provisions related to an excise tax on firearms. The author introduced substantially similar measures in 2021 (AB 1223) and in 2019 (AB 18). AB 18 was held on suspense in the Assembly Appropriations Committee. AB 1223 made it to the Assembly floor and AB 1227 made it to the Senate floor. However, both contained urgency clauses, requiring a two-thirds vote to pass. Despite receiving majority support, the bills failed to receive the required two-thirds vote.
This bill is distinguishable from AB 1227 in several notable ways:
- Whereas AB 28 allocates funds to several specific gun violence prevention programs in a specific waterfall structure, AB 1227 directed the Legislature to appropriate one half of the tax revenue for gun violence prevention programs, education, and research, and allocated the other half to the Board of State and Community Corrections for the California Violence Intervention and Prevention (CalVIP) Grant Program, for the sole purpose of funding CalVIP grants.
- AB 28 is an 11% gross receipts tax imposed on dealers and manufacturers, whereas AB 1227 imposed a per gun excise tax of 10% for handguns and 11% for long guns, rifles, firearm precursor parts and ammunition, and imposed the tax only on dealers.
- AB 28 does not contain an exemption that AB 1227 included for long guns with a barrel length longer than 16 inches, as well as any ammo used in those kinds of long guns, upon presentation of a valid hunting license.
- AB 28 does contain exemptions that were not included in AB 1227. Specifically AB 28 exempts any sales to either an active or retired peace officer, whereas AB 1227 only exempted sales to a peace officer for use in the regular course of employment. Additionally, AB 28 exempts sales made by firearms dealers or manufacturers with gross receipts of less than $5,000 in any quarterly period, whereas AB 1227 did not.
- AB 28 does not include an urgency clause, though still requires a 2/3 vote in each house as a measure that would result in any taxpayer paying a higher tax.[12]
- Amendments
The Author is taking amendments in committee to address an issue raised by the California Department of Tax and Fee Administration. Specifically, the amendment provides that a dealer who has their permit revoked may not operate as a firearm dealer until the permit has been reinstated or a new permit has been issued.
- Argument in Support
According to Smart Justice California:
[AB 28] would secure dedicated and sustained funding for lifesaving violence intervention initiatives and related gun violence prevention, education, and research purposes through a modest surtax on firearm industry profits. […]
Since 1919, federal law has placed a 10 to 11% excise tax on the sale of guns, ammunition, and related products by licensed manufacturers, producers, and importers. Revenues from this excise tax have been used to fund wildlife conservation efforts that remediate the effects that guns and ammunition have on wildlife populations through hunting, particularly through grants to state wildlife agencies and for conservation-related research. The NRA has referred to this federal Firearms and Ammunition Excise tax as a “legislative model” and “friend of the hunter.”
Just as the federal tax on firearm industry manufacturers reasonably generates revenue to remediate the harmful effects that firearm industry commerce can have on wildlife, AB 28 would place an identical tax on retail sellers profiting from the sale of the same products in order to fund programs that effectively remediate the devastating human toll these products take on families and communities across the state. This tax is a modest and reasonable excise tax on sellers whose lawful and legitimate commercial activity still imposes enormous harmful impacts on California.
This bill is not intended to penalize firearm sellers or otherwise discourage lawful firearm sales but would reasonably generate revenue to sustain programs that are targeted and effective at mitigating the harms that firearms and related products too often cause.
- Argument in Opposition
According to a coalition of 21 firearms advocacy, sporting and wildlife conservation groups:
All of California’s citizens support and benefit from efforts intended to address the negative impact the criminal use of firearms has upon our law-abiding public. Because those who perform these illegal acts do not buy their firearms or munitions from licensed dealers, they would not pay a single cent towards the programs this bill would fund. Rather, AB 28 would wrongly place the entire burden of funding these initiatives on a small, innocent segment of California’s law-abiding public.
Additionally, by substantially raising the cost of purchasing a firearm and ammunition in California, AB 28 would disproportionately impact the ability of economically disadvantaged communities and individuals to legally purchase a firearm and ammunition to protect themselves and their loved ones. Further, AB 28 would impede their equitable access to hunting and shooting sports – at a time when the Administration and the Legislature are seeking to increase participation in outdoor recreation and access for all Californians.
Firearms and ammunition are already taxed at the federal level pursuant to the federal Pittman-Robertson Act (PR). But those dollars are allocated back to states to fund beneficial programs – including wildlife habitat projects that benefit game and non-game species. This year alone, the California Department of Fish and Wildlife will be allocated well over $30 million in federal PR dollars – monies which will fund a substantial portion of our state’s wildlife management, conservation, and research efforts. By doubling the excise tax law-abiding hunters and shooters already pay on all firearms and ammunition, AB 28 would effectively raise the total tax rate on these items to nearly 30% – markedly reducing their sales and, in turn, the associated federal PR funding allocated back to California for critical wildlife conservation and management efforts.
AB 28 would do nothing to reduce criminal use of firearms. What AB 28 would do is inequitably impact the ability of disadvantaged communities and economically challenged individuals to protect themselves and their families, unjustly place the entire burden of funding these initiatives on California’s innocent and law-abiding hunters and shooters, and negatively impact our wildlife and their habitats.
-- END –
“Experts explain why California is still rife with gun violence despite some of the most stringent gun laws in the country.” ABC News. 26 January 2023. Experts explain why California is still rife with gun violence despite some of the most stringent gun laws in the country - ABC News (go.com) ; EveryStat - EveryStat.org ↑
“Gun Violence in California” Everytown. Jan. 2021. https://maps.everytownresearch.org/wp-content/uploads/2021/02/Gun-Violence-in-California-2.9.2021.pdf ↑
“Gun Deaths Drive California’s Largest-Ever Rise in Homicides.” PPIC. July 12, 2021 https://www.ppic.org/blog/gun-deaths-drive-californias-largest-ever-rise-in-homicides/ ; “2021 is Oakland’s deadliest year since 2006”, The Oaklandside. Dec. 23, 2021. https://oaklandside.org/2021/12/23/2021-oakland-deadliest-year-since-2006-homicides-shootings-gun-violence/; “Gun Violence hits 15-year high in L.A., taking lives and erasing hard-fought gains.” L.A. Times. Dec. 31, 2021. https://www.latimes.com/california/story/2021-12-31/gun-violence-los-angles-15-year-high ↑
The Economic Cost of Gun Violence | Everytown Research & Policy ↑
https://www.rand.org/research/gun-policy/analysis/essays/firearm-and-ammunition-taxes.html ↑
26 U.S.C. 4181 ↑
New York State Rifle and Pistol Association v. Bruen (2022), 142 S.Ct. 2111 - this decision also implicates California’s CCW law, which, as the Court noted, is substantially similar to New York’s, at least with regard to the “good cause” requirement. For more information, see this committee’s analysis of Senate Bill 2 (Portantino). ↑
Id. at p. 2132-2133. ↑
Nat’l Fed’n of Indep. Bus. v. Sebelius (2012)567 U.S. 519, 573; Bailey v. Drexel Furniture Co. (1922) 259 U.S. 20, 38.) ↑
Cal. Const, Section 3, Article XIIIA ↑
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Anna M. Caballero, Chair
2023 - 2024 Regular
Bill No: | AB 28 | Hearing Date: | 6/21/23 |
Author: | Gabriel | Tax Levy: | No |
Version: | 5/18/23 | Fiscal: | Yes |
Consultant: | Grinnell | ||
Firearms and ammunition: excise tax
Imposes upon licensed firearms dealers, firearms manufacturers, and ammunition vendors an excise tax at the rate of 11 percent of the sales price of handgun, firearm precursor part, and ammunition sold in this state.
Background
United States Constitution. The Second Amendment to the United States Constitution reads: "A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed." In Heller v. District of Columbia, 554 U.S. 570, 599 (2008), the United States Supreme Court held the Second Amendment grants citizens the right to own guns in the home for self-defense. In McDonald v. Chicago, 561 U.S. 742, 880 (2010), the Court held that the Second Amendment right is fully applicable to the States.
Recently, the United States Supreme Court issued an opinion striking down New York’s proper cause requirements for applicants wishing to obtain a concealed carry weapon (CCW) license in N.Y. State Rifle & Pistol Assn., Inc. v. Bruen, (2022) 597 U.S. ___.) In this case, the Supreme Court reiterated “the standard for applying the Second Amendment is as follows: When the Second Amendment’s plain text covers an individual’s conduct, the Constitution presumptively protects that conduct. The government must then justify its regulation by demonstrating that it is consistent with the Nation’s historical tradition of firearm regulation … including how and why the regulations burden a law-abiding citizen’s right to armed self-defense.”
Federal taxation on firearms and ammunition. Congress enacted the Revenue Act of 1918 during World War I to help fund wartime spending, which included the first excise tax on firearms, shells, and cartridges. Congress then enacted the Federal Aid in Wildlife Restoration Act in 1937, which reallocated previously enacted taxes on firearms and ammunition, and extended them to archery equipment. Commonly known as Pittman-Robertson, the U.S. Fish and Wildlife Service (FWS), within the Department of the Interior, distributes tax proceeds from these taxes to fund efforts in states and territories for wildlife restoration, conservation, and hunter education and safety programs. The Act imposes taxes on the manufacturer, distributor, or importer of the good subject to the tax at the following rates:
- 10 percent for pistols and revolvers;
- 11 percent for other firearms and ammunition; and
- 11 percent for bows and archery equipment.
Between 1939 and 2019, FWS disbursed $18.8 billion for wildlife restoration and hunter education and safety activities for Pittman-Robertson programs.
State excise taxes. State law imposes several excise taxes, including on cigarettes and tobacco products, alcoholic beverages, motor vehicle and diesel fuel, and cannabis, among others. In 2021, the Legislature enacted SB 395 (Caballero), which among other provisions imposed a tax on consumers of electronic cigarettes collected by retailers, and continuously appropriated its proceeds to various heath care purposes. Excise taxes generally have a dual benefit when applied to vices or other social harms: first, they deter behavior with negative or damaging health or societal effects, such as consuming tobacco or cannabis, by increasing its cost, and second, they generate revenue to help pay for public services.
Most of the state’s excise taxes contain their own provisions guiding administration, such as requirements for the affected entities to register with the California Department of Tax and Fee Administration (CDTFA), enforcement, collections, and appeals, among others. Others enact more basic provisions and instead link to the Fee Collections Procedures Law, the state’s general statute CDTFA uses to administer its special taxes and fees.
While California does not impose an excise tax on firearms and ammunition, California imposes several fees upon the purchase of a new firearm in the state, which currently total $37.19 per firearm: the Dealer Record of Sale fee (DROS) is $31.19, and covers the costs of the required background check prior to purchase and the cost of recording the sale with the Department of Justice. There is also a $1.00 Firearms Safety Act Fee, and a $5.00 Safety and Enforcement Fee. In the event of a private party transfer, a firearms dealer may charge an additional fee of up to $10.00 per firearm.
Firearm violence. According to the Gun Violence Archive, there were 20,200 firearms related deaths in the United States in 2022, down from 21,009 in 2021. The Federal Bureau of Investigation (FBI) identified 50 “active shooter” attacks in 2022 that killed 100 people and injured 213 others, down from 61 incidents that killed 103 and wounded 140 in 2021. In 2022, Texas had the most incidents (six) followed by Arizona, Florida, Michigan, and New York, each with the second highest number of incidents (three). From 1966 to 2019, 77% of mass shooters obtained the weapons they used in their crimes through legal purchases, according to the National Institute of Justice, the research wing of the United States Department of Justice.
Amid incidents of firearm violence, firearm sales increased significantly in California during the COVID-19 pandemic. According to the California Department of Justice, handgun sales in California increased 65.5%, from 2019 to 2020, while the sale of long guns increased 45.9%. The increase is on track with a national rise in gun sales in 2020. However, researchers found that while firearm purchasing and firearm violence nationwide increased substantially during the first months of the coronavirus pandemic, the magnitude of the increase in purchasing was not associated with the magnitude of the increase in firearm violence[1].
Seeking to raise revenue for violence prevention, gun violence prevention education, and gun violence prevention research programs, the author wants to impose an excise tax on firearms and ammunition dealers and vendors
Proposed Law
Effective July 1, 2024, Assembly Bill 28 imposes upon licensed firearms dealers, firearms manufacturers, and ammunition vendors an excise tax at the rate of 11% of the sales price of handgun, firearm precursor part, and ammunition, as defined by the Penal Code, sold in this state.
The measure exempts from the tax the sale of any firearm, ammunition, or firearm precursor part to any active or retired peace officer or any law enforcement agency employing that peace officer. The bill exempts sales made by firearms dealers, firearms manufacturer, or ammunition vendors with gross receipts of less than $5,000 in any quarterly period.
The bill sets return and tax payment due dates as the last day of the month following the close of the calendar quarter, but otherwise directs CDTFA to administer and collect the tax pursuant to the Fee Collections Procedures Law.
The bill creates the Gun Violence Prevention, Healing, and Recovery Fund (Fund) in the state treasury, and deposits all proceeds from the tax into the Fund, less CDTFA’s administrative costs.
The bill then directs the Legislature to annually allocate funds in the following order:
- The first $75 million to the Board of State and Community Corrections for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants, administration and evaluations of CalVIP-supported programs.
- The next $50 million to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
- The next $15 million to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who are prohibited from owning or possessing firearms and ammunition pursuant to court order.
- The next $15 million to the Department of Justice for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
- The next $2.5 million to the Department of Justice to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities.
- The next $2.5 million to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $1 million to the University of California, Davis, California Firearm Violence Research Center, if accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. The bill provides this allocation may be made over the course of more than one budget year, but cannot exceed $1 million.
The Legislature may allocate any remaining moneys to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
The measure states it shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts, and its tax is imposed in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
AB 28 allows CDTFA to issue regulations, including emergency regulations, pursuant to the Administrative Procedures Act. If any provision of the bill or its application is held invalid, the bill allows CDTFA to issue guidance or adopt regulations necessary to address any such invalidity and to promote its purposes, including to provide additional exemptions, which are exempt from the APA. Any regulations must seek to ensure minimal disruption to funding and operations of programs and initiatives funded by the bill.
The bill directs the Director of Finance to make a loan of $2.4 million to CDTFA to fund initial implementation costs, which must be repaid from tax revenues. The measure defines several terms, includes a severability clause, and contains several legislative findings and declarations supporting its purposes
State Revenue Impact
CDTFA estimates that bill would generate $159.3 million in excise tax revenue in fiscal year 2024-25. CDTFA further estimates up to $13.6 million in additional sales and use tax revenues to the extent dealers pass through the tax to purchasers as an itemized charge.
Comments
1. Purpose of the bill. According to the author, “Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax on manufacturers will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.”
2. Best way? Gun violence kills and injures thousands of Americans per year. Policymakers at all levels of government are considering several different measures in the hopes of reducing firearm violence and the collective societal terror it imposes. Unlike a classic excise tax, which seeks to add costs to the use of a product to deter its consumption, AB 28 imposes a firearms excise tax in California for the purposes of raising funds for programs intended to reduce gun violence. In that respect, it functions more like a mitigation fee, where the law assigns the external societal cost of doing something upon those who engage in it. AB 28’s findings and declarations state:
“The tax specified in this act is a modest and reasonable excise tax on sellers whose lawful and legitimate commercial activity still imposes enormous harmful externalities on California’s families, communities, and taxpayers. The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on other firearm and ammunition industry participants and similarly unlikely to discourage lawful sales and commerce in firearms, ammunition, or firearm precursor parts. A gun policy research review by the Rand Corporation in 2018 noted that the available “research suggests that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use.”
3. Slippage? AB 28 imposes its tax on firearm manufacturers and sellers of firearms and ammunition, similar to federal law, and not on purchasers, like other excise taxes such as cannabis and vaping products. As a result, those seeking to purchase firearms and ammunition could travel to other states to purchase from sellers who are not subject to the tax.
4. Constitutionality. Opponents of AB 28 question whether by taxing a right protection by the United States Constitution, courts may find the bill unconstitutional. According to the Assembly Public Safety Committee, while the Supreme Court usually “declines to closely examine the regulatory motive or effect of revenue-raising measures,” it has noted a point at which a tax becomes “a mere penalty with the characteristics of regulation and punishment.” (Nat’l Fed’n of Indep. Bus. v. Sebelius (2012)567 U.S. 519, 573; Bailey v. Drexel Furniture Co. (1922) 259 U.S. 20, 38.) The Committee adds that courts have not invalidated the Pittman-Robertson Act, which has been 100 years, which would seem to draw support from Bruen unless a tax makes firearm ownership so infeasible as to burden the rights that the amendment protects.
5. Related legislation. AB 28 is very similar to last year’s AB 1227 (Levine), which was approved by the Committee, but died on the Senate Floor. The measures differ in the following ways, among others:
- AB 28 allocates funds to several gun violence programs in a specific waterfall structure, where the Legislature appropriates funds to each priority until it reaches the specified level, with any excess flowing to the next level until the Legislature appropriates the total annual revenue amount. However, AB 1227 directed the Legislature to appropriate one half of the tax revenue for gun violence prevention programs, education, and research, and allocated the other half to the Board of State and Community Corrections for the California Violence Intervention and Prevention (CalVIP) Grant Program, for the sole purpose of funding CalVIP grants.
- AB 28 imposes its tax on firearm manufacturers, not just dealers like AB 1227.
- AB 1227 applied a 10% rate to the sale of a handgun, but 11% to the sale of a long gun, ammunition, or firearm precursor part. AB 1227 also exempted long guns with a barrel length longer than 16 inches, as well as any ammunition used in those kinds of long guns, upon presentation of a valid hunting license. AB 28’s rate is 11% of the sales price regardless of the kind of firearm, and does not provide an exemption similar to the one found in AB 1227.
- AB 1227 did not contain an exemption for sales made by firearms dealers or manufacturers with gross receipts of less than $5,000 in any quarterly period as AB 28 does.
- AB 28 exempts any sales to either an active or retired peace officer; AB 1227 only exempted sales to a peace office for use in the regular course of employment
6. 2/3. AB 28 constitutes a change in state statute that would result in any taxpayer paying a higher tax, which requires a 2/3 vote by each house of the Legislature to be enacted under Section 3 of Article XIIIA of the California Constitution.
7. Coming and going. The Senate Rules Committee ordered a double referral for AB 28: first, to the Committee on Governance and Finance to consider its tax implications, then to the Committee on Public Safety.
8. Amendments. The Committee may wish to consider amending AB 28 in the following ways:
- Last year, the Committee amended AB 1227 to require half of its funds be continuously appropriated to the CalVIP grant program, while the other half was subject to future legislative appropriation. While AB 28’s structure differs, the Committee may wish to consider similarly amending AB 28 to continuous appropriate this bill’s CalVIP allocation, leaving remaining funds for the Legislature to appropriate to the bill’s other purposes.
- Similar to recently enacted excise tax law, the Committee may wish to consider amending AB 28 to require taxpayers subject to AB 28’s tax to file returns electronically.
Assembly Actions
Assembly Public Safety Committee: 6-2
Assembly Revenue and Taxation Committee: 7-3
Assembly Appropriations Committee: 11-4
Assembly Floor: 56-17
Support and Opposition
(6/16/23)
Support: Mara W. Elliott - San Diego City Attorney's Office
Todd Gloria - Mayor of San Diego
Alameda Health System
American Association of University Women - California
Antioch Police Department
Board of Supervisors for The City and County of San Francisco
Brady California
Brady Campaign
California Medical Association
California Partnership for Safe Communities
City of Alhambra
City of Oakland - Department of Violence Prevention
City of San Diego
County of Santa Clara
Equal Justice USA
Everytown for Gun Safety Action Fund
Family Violence Law Center
Fresh Lifelines for Youth
Greater Sacramento Urban League
Jewish Community Relations Council of Silicon Valley
Jewish Public Affairs Committee
Johns Hopkins Center for Gun Violence Solutions
Juma Ventures
Lakeshore Avenue Baptist Church
Los Angeles County Hospital-based Violence Intervention Consortium
Los Angeles Police Department
March for Our Lives California
Moms Demand Action for Gun Sense in America
Movement 4 Life
National Institute for Criminal Justice Reform
Public Health Advocates
Reach Out
Sacramento County Young Democrats
San Diegans for Gun Violence Prevention
Shaphat Outreach
Silicon Valley Alliance for Gun Safety
Soledad Enrichment Action, INC.
Southern California Crossroads
Students Demand Action
The Health Alliance for Violence Intervention
Toberman Neighborhood Center
United Nurses Associations of California/union of Health Care Professionals
Urban Peace Institute
Valorcalifornia / Valorus
Westchester/playa Democratic Club
Women Against Gun Violence
Women Democrats of Sacramento County
Woodland Police Department
Youth Alive!
Opposition: Black Brant Group, the
Cal-ore Wetlands and Waterfowl Council
California Bowmen Hunters/state Archery Association
California Chapter Wild Sheep Foundation
California Deer Association
California Hawking Club
California Houndsmen for Conservation
California Rifle and Pistol Association, INC.
California Waterfowl Association
Congressional Sportsmen's Foundation
Ducks Unlimited
Golden Gate Chapter - Safari Club International
Gun Owners of California, INC.
National Rifle Association - Institute for Legislative Action
Nor-cal Guides and Sportsmen's Association
Rocky Mountain Elk Foundation
Sacramento Chapter - Safari Club International
Safari Club International - California Chapters
San Diego County Wildlife Federation
San Francisco Bay Area Chapter - Safari Club International
Suisun Resource Conservation District
Tulare Basin Wetlands Association
412 Individuals
-- END --
Schleimer, Julia et al. (2021) Firearm purchasing and firearm violence during the coronavirus pandemic in the United States: a cross-sectional study, Injury Epidemiology. Article number: 43 (2021). https://injepijournal.biomedcentral.com/articles/10.1186/s40621-021-00339-5 ↑
ASSEMBLY THIRD READING
ATR Bill Id:AB 28
Author:(Gabriel)
As Amended Ver:May 18, 2023
2/3 vote
SUMMARY
Establishes an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors to fund programs that address the causes and harms of gun violence.
Major Provisions
- Establishes the Gun Violence Prevention, Healing, and Recovery Fund within the State Treasury, which will be funded by an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors, as specified.
- Requires all moneys in the fund, including interest or dividends earned by the fund to be distributed according to the specified allocation formula.
- Requires the dollar amounts specified in the allocation formula to be annually adjusted to account for changes in the California Consumer Price Index.
- Requires moneys in the fund, upon appropriation by the legislature, to be annually allocated in the following order:
- The first $75 million available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (BSCC), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs.
- The next $50 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures, and for physical security safety assessments.
- The next $15 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
- The next $15 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to DOJ for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
- The next $2.5 million available in the fund per year, or as much of that amount as is available, if any, shall be annually allocated to the DOJ to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts, as specified.
- The next $2.5 million available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $1 million available in the fund, or as much of that amount as is available, if any, shall be allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for a one-time grant for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury. This allocation may, if sufficient funds are not available, be made over the course of more than one budget year; however, the total amount allocated across all years shall not exceed one million dollars
- Any remaining moneys available in the fund each year after the allocations shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- Imposes, commencing on July 1, 2024, an excise tax on licensed firearm dealers, firarms manufacturers, and ammunition venders at the rate of 11% of the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition.
- Exempts from the excise tax the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to any active or retired peace officer or any law enforcement agency employing that peace officer.
- Exempts from the excise tax the gross receipts of any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than $5,000.
- Requires the California Department of Tax and Fee Administration (CDTFA) to administer and collect the excise tax.
- Authorizes CDTFA to prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
- Provides that the excise taxes are due and payable to the CDTFA quarterly on or before the last day of the month next succeeding each quarterly period of three months.
- Requires, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period to be filed with the CDTFA using electronic media.
- Requires returns to be authenticated in a form or pursuant to methods as may be prescribed by the CDTFA.
- Requires all amounts required to be paid, as prescribed, to be paid to CDTFA in the form of remittances.
- Requires revenues, net of refunds, and costs of administration, to be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, as prescribed.
- Provides that the excise tax does not preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts.
- Provides that the excise tax is in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
- Authorizes CDTA, if any provision of this act or its application is held invalid, to issue guidance or adopt regulations necessary to address the invalidity and to promote the purposes of this act, as specified.
- Requires CDTA, if any provision of this act or its application is held invalid, to seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the fund.
- Provides that, if any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof, and declares that the Legislature would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
- Requires the Director of Finance to transfer, as a loan, $2.4 million from the General Fund to the CDTA to implement the excise tax.
- Requires any loan made to the fund to be repaid with moneys collected by the excise tax and prior to making any expenditures or appropriations to specified entities and programs.
COMMENTS
According to the Author
"Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state."
Arguments in Support
According to the Family Violence Law Center, "As part of our mission to support survivors of domestic violence it is imperative to acknowledge the intersection of gun violence and domestic violence and the impacts it has on survivors. When guns are present in a home where domestic violence has occurred a survivor is five times more likely to be killed. In over half of the domestic violence homicides nationwide a firearm was used to harm the victim. At Family Violence Law Center we believe it is imperative for our team to advance for survivor safety by supporting policy initiatives that educate survivors and youth on the harms of gun violence and how to seek safety. It is for this reason that the Family Violence Law Center seeks to educate survivors on various pathways to seeking safety including the use of legal avenues such as gun violence restraining orders and domestic violence restraining orders. AB 28 would allow the state of California to continue investing in this very urgent and important matter.
"As you know, gun violence is a public health, safety, and equity crisis. Since the start of the pandemic, our nation has seen record-setting gun and ammunition sales, alongside record nationwide increases in shootings, homicides, and related traumas. This has been a time of record profits for some and brutal pain and loss for too many others. This national gun violence crisis has also imposed an enormously unequal toll on communities of color in our state, where over 84% of youth homicide victims are Black or Latino, and where gun violence was already, prior to recent spikes in violence, by far the leading cause of death for young Black men and boys. This violence also imposes enormous burdens on those who are not direct victims too: experts at the National Institute of Justice have noted that "youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers" in our wartime military.
"In addition to its brutal human toll, gun violence also causes enormous economic harm and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2.5 million in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to directly cost taxpayers nearly $1 million on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid directly by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California, was 'significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.'
"To promote community safety and mitigate the enormous collateral harms that flow from firearm industry commerce, California has in recent years acted to invest in violence intervention initiatives that work to interrupt entrenched cycles of shootings, trauma, and retaliation. These programs support and heal victims of firearm violence, and provide targeted intervention services to other individuals identified as at highest risk of being shot or involved in cycles of violence in the near future. The state's investment in these programs, primarily through the California Violence Intervention and Prevention (CalVIP) grant program, has provided a critical lifeline to temporarily sustain and expand programs employing frontline violence intervention workers and saving lives today.
"However, these investments have thus far relied on short-term General Fund commitments. Sustained reductions in gun violence will require sustained investments in prevention and intervention efforts and longer-term planning to entrench virtuous cycles of trauma recovery, retaliation prevention, peace-building, and safety. That is why it has been a top priority for our organizations to establish a dedicated revenue stream to sustain this lifesaving work through the California Violence Intervention and Prevention program and related efforts.
"This bill is analogous to other firearm and ammunition industry tax measures that have been repeatedly upheld by the courts. Similar firearm, ammunition, and related industry excise taxes have also been in place at the federal level for over a century, and the gun industry has supported them. Since 1919, federal law has placed a 10 to 11% excise tax on the sale of guns, ammunition, and related products by licensed manufacturers, producers, and importers. Revenues from this excise tax have been used to fund wildlife conservation efforts that remediate the effects that guns and ammunition have on wildlife populations through hunting, particularly through grants to state wildlife agencies and for conservation-related research. The NRA has referred to this federal Firearms and Ammunition Excise tax as a 'legislative model' and 'friend of the hunter.'
"Just as the federal tax on firearm industry manufacturers reasonably generates revenue to remediate the harmful effects that firearm industry commerce can have on wildlife, AB 28 would place an identical tax on retail sellers profiting from the sale of the same products in order to fund programs that effectively remediate the devastating human toll these products take on families and communities across the state. This tax is a modest and reasonable excise tax on sellers whose lawful and legitimate commercial activity still imposes enormous harmful externalities on California's families, communities, and taxpayers.
"This bill is not intended to penalize firearm sellers or otherwise discourage lawful firearm sales and commerce whatsoever, but would reasonably generate revenue to sustain programs that are targeted and effective at mitigating the harms that firearms and related products too often cause. It would stop shootings, save lives, and make California a better, safer place."
Arguments in Opposition
According to the California Rifle & Pistol Association, "All of California's law-abiding citizens benefit from efforts to implement programs which remediate the impacts of illegal gun violence upon our public, and all should equally help to fund their implementation. Yet, AB 28 would unjustifiably place the entire burden of funding efforts to address illegal gun violence on the backs of law-abiding citizens who legally purchase and lawfully use firearms and ammunition.
"Additionally, by substantially raising the cost of purchasing a firearm and ammunition in California, AB 28 would disproportionately impact the ability of economically disadvantaged communities and individuals to legally purchase a firearm and ammunition to protect themselves and their loved ones. Further, AB 28 would impede their equitable access to hunting and shooting sports – at a time when the Administration and the Legislature are seeking to increase participation in outdoor recreation and access for all Californians.
"Firearms and ammunition are already taxed at the federal level pursuant to the federal Pittman-Robertson Act (PR). But those dollars are allocated back to states to fund beneficial programs – including wildlife habitat projects that benefit game and non-game species. This year alone, the California Department of Fish and Wildlife will be allocated well over $30 million in federal PR dollars – monies which will fund a substantial portion of our state's wildlife management, conservation, and research efforts. By doubling the excise tax law-abiding hunters and shooters already pay on all firearms and ammunition, AB 28 would effectively raise the total tax rate on these items to nearly 30% – notably reducing their sales and, in turn, the associated federal PR funding allocated back to California for critical wildlife conservation and management efforts.
"All of California's citizens support and benefit from efforts intended to address the negative impact the criminal use of firearms has upon our law-abiding public. Yet, AB 28 would wrongly place the entire burden of funding initiatives intended to mitigate the harms caused by illegal gun violence on a small segment of our law-abiding public. AB 28 would do nothing to reduce criminal use of firearms but would inequitably impact the ability of the disadvantaged communities and economically challenged individuals to protect themselves and their families, and unjustly affect California's lawful hunters, shooters, and our wildlife and their habitats."
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Administrative costs to CDTFA (General Fund) in the hundreds of thousands to low millions of dollars. CDTFA would incur costs to identify and notify taxpayers, create a new tax return, program computer systems, revise publications and audit and compliance manuals, develop special notices and tax guides, create regulations, prepare guidelines for staff, and answer questions from retailers and the public. CDTFA's initial estimate of its administrative costs resulting from this bill is over $1 million.
- Revenue possibly in the low hundreds of millions of dollars (Gun Violence Fund). CDTFA's expected excise tax revenue is $159.3 million in fiscal year (FY) 2024-25. If dealers and vendors elect to pass the proposed excise tax on to their customers, the expected sales tax revenue could be as high as $13.6 million in FY 2024-25. Revenue will depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA's revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any changes in sales that may result from the enactment of this law.
VOTES
ASM PUBLIC SAFETY: 6-2-0
YES: Jones-Sawyer, Bonta, Jackson, Ortega, Santiago, Zbur
NO: Alanis, Lackey
ASM REVENUE AND TAXATION: 7-3-1
YES: Irwin, Grayson, Pacheco, Petrie-Norris, Luz Rivas, Valencia, Zbur
NO: Wallis, Jim Patterson, Ta
ABS, ABST OR NV: Bains
ASM APPROPRIATIONS: 11-4-1
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega
NO: Megan Dahle, Dixon, Mathis, Sanchez
ABS, ABST OR NV: Robert Rivas
UPDATED
VERSION: May 18, 2023
CONSULTANT: Andrew Ironside / PUB. S. / (916) 319-3744 FN: 0000830
Date of Hearing: May 10, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 28
Author:(Gabriel) – As Amended Ver:March 23, 2023
Policy Committee: | Public Safety | Vote: | 6 - 2 |
Revenue and Taxation | 7 - 3 | ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill establishes an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors and directs the resulting funds to programs that address the causes and harms of gun violence.
Specifically, this bill:
- Imposes, beginning July 1, 2024, an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors at the rate of 11% of the gross receipts from the retail sale in this state of any firearm, firearm precursor part, or ammunition.
- Exempts from the tax retail sales to peace officers and law enforcement agencies, and exempts retail sales by a licensed firearms dealer, firearms manufacturer, or ammunition vendor if their quarterly total gross receipts are below a specified threshold.
- Requires the California Department of Tax and Fee Administration (CDTFA) to administer and collect the taxes, and authorizes CDTFA to adopt and enforce related rules and regulations.
- Provides that all revenues, net of refunds, and costs of administration shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund (Gun Violence Fund), which this bill establishes in the State Treasury. The moneys in the Fund shall, upon appropriation by the Legislature, be allocated annually in the following order as specified:
- The first $75 million, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections, or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program.
- The next $3 million, or as much of that amount as is available, if any, shall be annually allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California.
- The next $15 million, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures.
- The next $2.5 million, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice (DOJ) to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities.
- The next $12.5 million, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program.
- The next $7 million, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $15 million, or as much of that amount as is available, if any, shall be annually allocated to the DOJ for a justice for victims of gun violence program.
- Any remaining moneys shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- Requires the Director of Finance to transfer, as a loan, $2.4 million from the General Fund to the CDTFA to implement the requirements of this bill. The loan must be repaid with moneys collected by the excise tax before making any expenditures or appropriations described above.
FISCAL EFFECT:
- Administrative costs to CDTFA (General Fund) in the hundreds of thousands to low millions of dollars. CDTFA would incur costs to identify and notify taxpayers, create a new tax return, program computer systems, revise publications and audit and compliance manuals, develop special notices and tax guides, create regulations, prepare guidelines for staff, and answer questions from retailers and the public. CDTFA’s initial estimate of its administrative costs resulting from this bill is over $1 million.
- Revenue possibly in the low hundreds of millions of dollars (Gun Violence Fund). CDTFA’s expected excise tax revenue is $159.3 million in fiscal year (FY) 2024-25. If dealers and vendors elect to pass the proposed excise tax on to their customers, the expected sales tax revenue could be as high as $13.6 million in FY 2024-25. Revenue will depend on the number of qualifying sales of firearms, precursor parts, and ammunition. CDTFA’s revenue estimate does not account for precursor part sales, sales exempted from the excise tax, or any changes in sales that may result from the enactment of this law.
COMMENTS:
- Author’s Statement. According to the author:
Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.
- Background. Existing federal law imposes a 10% or 11% tax on the sale of most firearms by the manufacturer, producer, or importer, depending on the type of firearm. California also imposes a $37.19 fee on the sale of each firearms purchase, which helps fund some of DOJ’s firearms-related responsibilities, including implementing and enforcing the Armed and Prohibited Persons System. This bill would add an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors of 11% of their gross receipts from California sales of new firearms, precursor parts, and ammunition. Revenue generated by this new tax would support the Gun Violence Fund established by this bill. The Gun Violence Fund would disburse moneys to programs that address gun violence and its effect on the state, as listed above.
- Related Legislation. AB 762 (Wicks), expands the existing CalVIP grant program administered by the Board of State and Community Corrections and repeal the sunset date on the CalVIP program. AB 762 is pending hearing in this committee.
AB 1252 (Wicks), establishes the Office of Gun Violence Prevention within DOJ that, contingent upon sufficient state or private funding, must convene a Commission to End Gun Violence. AB 1252 is pending hearing in this committee.
- Prior Legislation. AB 1227 (Levine), of the 2021-2022 Legislative Session, would have imposed an excise tax on firearms, precursor parts, and ammunition sales. AB 1227 contained an urgency clause and died on the Senate floor.
AB 1223 (Levine), of the 2021-2022 Legislative Session, would have imposed an excise tax on firearms, precursor parts, and ammunition sales. AB 1223 contained an urgency clause and died on the Assembly floor.
AB 18 (Levine), of the 2019-20 Legislative Session, would have imposed an excise tax on firearms, precursor parts, and ammunition sales. AB 18 was held on this committee’s suspense file.
Analysis Prepared by: Annika Carlson / APPR. / (916) 319-2081
Date of Hearing: April 24, 2023
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Jacqui Irwin, Chair
ABPCA Bill Id:AB 28 (
Author:Gabriel) – As Amended Ver:March 23, 2023
2/3rds vote. Fiscal committee.
SUBJECT: Firearms and ammunition: excise tax
SUMMARY: Enacts the Gun Violence Prevention, Healing, and Recovery Act (Act). Specifically, this bill:
- Contains detailed findings and declarations, including the following:
- Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. California's gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state;
- Gun violence also contributes to significant racial and socioeconomic inequality in safety. The most recent available data from the federal Centers for Disease Control and Prevention (CDC) indicates that in 2021, nationwide, the parents of a Black son 13 to 19 years of age were more likely to lose their child to gun homicide than every other cause of death combined;
- A majority of gun assault victims survive the shooting but are often left to grapple with severe physical and mental injuries and long-term expenses, impairments, and pain. People who have been direct victims of violence are at substantially higher risk of being violently reattacked or killed, in part because a large majority of nonfatal shootings do not lead to arrest. Strained by the overwhelming number of shootings and related challenges, law enforcement agencies across the United States cleared less than one-third of aggravated assaults with firearms in 2019. Victims who have been shot, shot at, or chronically exposed to threats of gun violence and associated traumas may seek safety by affiliating with armed groups or engaging in retaliatory violence themselves;
- Gun violence imposes enormous harms on those who are not direct victims as well. The Director of the CDC's Division of Violence Prevention presented research to Congress demonstrating that "youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers" in the nation's wartime military. Many studies have documented how witnessing a shooting or being chronically exposed to gun violence is correlated with increased risk of negative health outcomes, criminal system involvement, reduced educational engagement and achievement, and longer term negative impacts on workforce potential and earnings;
- The CDC notes that "Community violence can cause significant physical injuries and mental health conditions such as depression, anxiety, and post-traumatic stress disorder (PTSD). Living in a community experiencing violence is also associated with increased risk of developing chronic diseases. Concerns about violence may prevent some people from engaging in healthy behaviors, such as walking, bicycling, using parks and recreational spaces, and accessing healthy food outlets. Violence scares people out of participating in neighborhood activities, limits business growth and prosperity, strains education, justice, and medical systems, and slows community progress."; and,
- In addition to its enormous human toll, gun violence also causes economic harm in impacted communities and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2,500,000 in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to cost taxpayers nearly $1,000,000 on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California was "significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year."
- Gun violence is a public health and safety crisis nationwide. Firearms are now the leading cause of death for American children. California's gun death rates are substantially lower than the national average, yet firearms remain a leading cause of death, injury, and trauma for young people and especially young people of color in this state;
- Imposes, beginning July 1, 2024, an excise tax upon "licensed firearms dealers", "firearms manufacturers", and "ammunition vendors", at the rate of 11% of the gross receipts from the retail sale in this state of any "firearm", "firearm precursor part", or "ammunition".
- Defines a "licensed firearms dealer" by reference to Penal Code Section 26700.
- Defines a "firearms manufacturer" as any entity licensed to manufacture "firearms" pursuant to specified federal law that engages in any retail sale of a "firearm" or "firearm precursor part" to a consumer in California.
- Defines the following terms by reference to Penal Code Section 16100 et seq.: "ammunition vendor," "firearm," "firearm precursor part," "ammunition," "handgun," "long gun," and "rifle."
- Exempts from the tax the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition:
- To a "peace officer" or any "law enforcement agency" employing that "peace officer", for use in the normal course of employment; and,
- By any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than $5,000.
- To a "peace officer" or any "law enforcement agency" employing that "peace officer", for use in the normal course of employment; and,
- Defines a "peace officer" as any person described in Penal Code Section 830 et seq. who is authorized to carry a firearm on duty, or any police officer or criminal investigator employed by the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California, who is authorized to carry a firearm while on duty.
- Defines a "law enforcement agency" as any department or agency of the state or of any county, city, or other political subdivision thereof that employs any peace officer who is authorized to carry a firearm while on duty, or any department or agency of the federal government or a federally recognized Indian tribe with jurisdiction that has tribal land in California that employs any police officer or criminal investigator authorized to carry a firearm while on duty.
- Requires the California Department of Tax and Fee Administration (CDTFA) to administer and collect the taxes pursuant to the Fee Collection Procedures Law.
- Authorizes the CDTFA to prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this Act, including, but not limited to, collections, reporting, refunds, and appeals.
- Provides that the taxes imposed by this Act shall be due and payable to the CDTFA quarterly on or before the last day of the month next succeeding each quarterly period of three months.
- Provides that, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period shall be filed with the CDTFA using electronic media. Returns shall be authenticated in a form or pursuant to methods as may be prescribed by the CDTFA.
- Provides that all revenues, net of refunds, and costs of administration, shall be deposited in the Gun Violence Prevention, Healing, and Recovery Fund (Fund), which this bill establishes in the State Treasury.
- Provides that moneys in the Fund, including interest or dividends earned by the Fund, shall, upon appropriation by the Legislature, be distributed in accordance with the allocation formula specified below, provided that the dollar amounts specified shall be annually adjusted for inflation. Specifically, moneys in the Fund shall, upon appropriation by the Legislature, be annually allocated in the following order:
- The first $75 million, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (Board), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Penal Code Section 14130 et seq.;
- The next $3 million, or as much of that amount as is available, if any, shall be annually allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury;
- The next $15 million, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures;
- The next $2.5 million, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice (DOJ) to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders;
- The next $12.5 million, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders;
- The next $7 million, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence;
- The next $15 million, or as much of that amount as is available, if any, shall be annually allocated to the DOJ for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults; and,
- Any remaining moneys shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- The first $75 million, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (Board), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs, in accordance with Penal Code Section 14130 et seq.;
- Provides that this Act shall not be construed to preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts. The tax imposed by this bill shall be in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
- Provides that, if any provision of this Act or its application is held invalid, the CDTFA shall be authorized to issue guidance or adopt regulations necessary to address any such invalidity and to promote the purposes of this Act, including, but not limited to, guidance or regulations to modify or provide additional exemptions from the tax imposed by this bill. Such guidance or regulations shall be exempt from the Administrative Procedure Act and shall seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the Fund.
- Provides that if any section, subsection, sentence, or clause of this Act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this Act or any part thereof.
- Provides that no reimbursement is required by this Act pursuant to Section 6 of Article XIII B of the California Constitution for specified reasons.
- Requires the Director of Finance to transfer, as a loan, $2.4 million from the General Fund to the CDTFA to implement this Act.
EXISTING FEDERAL LAW imposes:
- A 10% tax upon the sale of pistols and revolvers by the manufacturer, producer, or importer; and,
- An 11% tax upon the sale of firearms (other than pistols and revolvers), shells, and cartridges by the manufacturer, producer, or importer. (Internal Revenue Code Section 4181.)
EXISTING STATE LAW:
- Imposes various taxes, including taxes on the privilege of engaging in certain activities.
- Imposes a sales tax on retailers for the privilege of selling tangible personal property (TPP), absent a specific exemption. The tax is based upon the retailer's gross receipts from TPP sales in this state. (Revenue and Taxation Code (R&TC) Section 6051 et seq.)
- Imposes a complimentary use tax on the storage, use, or other consumption of TPP purchased out-of-state and brought into California. (R&TC Section 6201 et seq.)
- Provides, under the Fee Collection Procedures Law, procedures for the collection of certain fees and surcharges. (R&TC Section 55001 et seq.)
- Establishes the CalVIP Grant Program, administered by the Board, to award competitive grants for the purpose of violence intervention and prevention. (Penal Code Section 14130 et seq.)
- Requires the state to reimburse local agencies and school districts for certain costs mandated by the state. (California Constitution Article XIII B, Section 6.)
FISCAL EFFECT: CDTFA estimates that this bill would generate $159.3 million in excise tax revenue in fiscal year 2024-25. CDTFA further estimates up to $13.6 million in additional sales and use tax revenues.
COMMENTS:
- The author has provided the following statement in support of this bill:
Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.
- This bill is supported by the Giffords Center for Violence Intervention, which notes:
This legislation would help California comprehensively respond to the public health, safety, and equity crisis of gun violence, the leading cause of death for American children today. This Act would establish the Gun Violence Prevention, Healing, and Recovery Fund, supported by a modest surtax on firearm industry profits, to make long-term investments in a variety of vital initiatives designed to prevent gun violence, protect and heal survivors, improve implementation and coordination of gun violence prevention activities, solve more murders and shootings, and promote justice and equal access to safety for all Californians.
- This bill is opposed by numerous police officer associations, which note:
AB 28 is another unnecessary tax and increased cost to be borne by the men and women of California's law enforcement community and their families who have dedicated their careers and sometimes their lives to maintaining the safety of the public.
Like many well-intentioned "gun control" bills, AB 28 targets the safe, trained and law-abiding gun owners to address the crimes and social problems caused by criminals who possess and use firearms in illicit and dangerous ways.
Criminals don't buy firearms from registered, tax-collecting and licensed firearms dealers because they are prohibited by law from doing so and authorized dealers would lose their license and risk [being] prosecuted for conducting such illegal firearm or ammo sales. As a result, it is unlikely that the people committing violent firearms-related crimes will actually pay the additional tax that seeks to reduce gun violence they are committing.
- Committee Staff Comments:
- What would this bill do? This bill, beginning July 1, 2024, would impose an excise tax upon licensed firearms dealers, firearms manufacturers, and ammunition vendors. Specifically, the tax would equal 11% of their gross receipts from the sale in this state of any firearm, firearm precursor part, or ammunition. Tax revenues would be deposited in a newly established Fund and allocated according to a specified formula, with the first $75 million being annually disbursed to the Board to fund CalVIP grants.
- The general policy debate: As with any tax imposed on a narrow set of goods or activities, this bill raises the question of whether public safety initiatives should be funded via a new tax on firearms and ammunition instead of through a General Fund appropriation. Proponents of this bill's funding mechanism might argue that it makes sense to make firearm purchasers bear some of the negative externalities of gun use in society, which are readily apparent to any person with a passing familiarity with evening news broadcasts. Critics, however, might argue that the vast majority of firearm purchasers are law-abiding citizens and that the connection between public safety and their hunting, sporting, and self-defense activities is tenuous at best.
- Federal tax on firearms and ammunition: This bill would require retailers to track firearm and ammunition sales separately from other sales, which could result in compliance costs for smaller retailers and attendant reporting errors. As noted above, federal law imposes a Firearms and Ammunition Excise Tax (FAET) on the sale of firearms and ammunition by manufacturers, producers, and importers. Because the federal tax is imposed higher up the distribution chain, it does not fall prey to some of these potential administrative complications.
- A tax upon a tax? California's sales tax is based upon a retailer's gross receipts from TPP sales, including sales of firearms and ammunition. Because this bill does not specifically exclude the excise tax from the definition of "gross receipts", the new tax would likely be included in the final sales price of firearms and ammunition subject to sales tax. The author may wish to clarify this issue by either specifically including or excluding the new tax from the definition of "gross receipts" subject to sales tax.
REGISTERED SUPPORT / OPPOSITION:
Support
Alameda Health System
Board of Supervisors of the City and County of San Francisco
Brady Campaign
California Partnership for Safe Communities
Charity Apostolic Church – Shaphat Outreach
City of Oakland Department of Violence Prevention
Equal Justice USA
ETTA
Everytown for Gun Safety
Family Violence Law Center
Giffords Center for Violence Intervention
Hadassah
Health Alliance for Violence Intervention
Jewish Center for Justice
Jewish Community Relations Council of Sacramento
Jewish Community Relations Council of Silicon Valley
Jewish Democratic Club of Silicon Valley
Jewish Family & Children's Service of Long Beach and Orange County
Jewish Family Service San Diego
Jewish Family Services of Silicon Valley
Jewish Federation of the Greater San Gabriel and Pomona Valleys
Jewish Federation of the Sacramento Region
Jewish Long Beach
Jewish Public Affairs Committee of California
Jewish Silicon Valley
Johns Hopkins Center for Gun Violence Solutions
Juma Ventures
JVS SoCal
Lakeshore Avenue Baptist Church
Los Angeles County Hospital-Based Violence Intervention Consortium
March for Our Lives
Moms Demand Action for Gun Sense in America
Movement 4 Life
National Institute for Criminal Justice Reform
Progressive Zionists of California
San Diegans for Gun Violence Prevention
Soledad Enrichment Action, Inc.
Southern California Crossroads
Students Demand Action
Toberman Neighborhood Center
Urban Peace Institute
Ventura County Chapter of Brady United
Youth ALIVE!
Opposition
Arcadia Police Officers' Association
Black Brant Group
Burbank Police Officers' Association
Cal-Ore Wetlands and Waterfowl Council
California Bowmen Hunters / State Archery Association
California Chapter of Wild Sheep Foundation
California Coalition of School Safety Professionals
California Deer Association
California Hawking Club
California Houndsmen for Conservation
California Rifle and Pistol Association, Inc.
California Waterfowl Association
Claremont Police Officers Association
Congressional Sportsmen's Foundation
Corona Police Officers Association
Culver City Police Officers' Association
Deputy Sheriffs' Association of Monterey County
Ducks Unlimited
Fullerton Police Officers' Association
Golden Gate Chapter of Safari Club International
Gun Owners of California
Los Angeles School Police Officers Association
Murrieta Police Officers' Association
National Rifle Association – Institute for Legislative Action
Newport Beach Police Association
Nor-Cal Guides and Sportsmen's Association
Peace Officers' Research Association of California
Placer County Deputy Sheriffs' Association
Palos Verdes Police Officers Association
Pomona Police Officers' Association
Riverside Police Officers Association
Riverside Sheriffs' Association
Rocky Mountain Elk Foundation
Sacramento Chapter of Safari Club International
Safari Club International – California Chapters
San Diego County Wildlife Federation
San Francisco Bay Area Chapter of Safari Club International
Santa Ana Police Officers Association
Suisun Resource Conservation District
Tulare Basin Wetlands Association
Upland Police Officers Association
Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098
Date of Hearing:
Counsel: Andrew Ironside
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Reginald Byron Jones-Sawyer, Sr., Chair
ABPCA Bill Id:AB 28
Author:(Gabriel) – As Amended Ver:March 23, 2023
SUMMARY:
Establishes an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors to fund programs that address the causes and harms of gun violence. Specifically, this bill:
- Establishes the Gun Violence Prevention, Healing, and Recovery Fund within the State Treasury, which will be funded by an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors, as specified.
- Requires all moneys in the fund, including interest or dividends earned by the fund to be distributed according to the specified allocation formula.
- Requires the dollar amounts specified in the allocation formula to be annually adjusted to account for changes in the California Consumer Price Index.
- Requires moneys in the fund, upon appropriation by the legislature, to be annually allocated in the following order:
- The first $75,000,000 available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (BSCC), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs.
- The next $3,000,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the University of California, Davis, California Firearm Violence Research Center, if those funds are accepted by the Regents of the University of California, for gun violence research and initiatives to educate health care providers and other stakeholders about clinical tools and other interventions for preventing firearm suicide and injury.
- The next $15,000,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the State Department of Education to fund school mental health and behavioral services and school safety measures.
- The next $2,500,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Department of Justice (DOJ) to support activities to inform firearm and ammunition purchasers and firearm owners about gun safety laws and responsibilities, such as safe firearm storage, and to promote implementation and coordination of gun violence prevention efforts through activities such as technical assistance, training, capacity building, and local gun violence data and problem analysis support for local governments, law enforcement agencies, community-based service providers, and other stakeholders.
- The next $12,500,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Judicial Council to support a court-based firearm relinquishment grant program to ensure the consistent and safe removal of firearms from individuals who become prohibited from owning or possessing firearms and ammunition pursuant to court order, including, but not limited to, domestic violence restraining orders, gun violence restraining orders, civil harassment restraining orders, and workplace violence restraining orders.
- The next $7,000,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to the Office of Emergency Services (OES) to provide counseling and trauma-informed support services to direct and secondary victims of mass shootings and other gun homicides and to individuals who have experienced chronic exposure to community gun violence.
- The next $15,000,000 available in the fund, or as much of that amount as is available, if any, shall be annually allocated to DOJ for a justice for victims of gun violence program to support evidence-based activities to equitably improve investigations and clearance rates in firearm homicide and firearm assault investigations in communities disproportionately impacted by firearm homicides and firearm assaults.
- Any remaining moneys available in the fund each year after the allocations shall be allocated to fund and support activities and programs focused on preventing gun violence, supporting victims of gun violence, and otherwise remediating the harmful effects of gun violence.
- The first $75,000,000 available in the fund, or as much of that amount as is available, shall be annually allocated to the Board of State and Community Corrections (BSCC), or other successor agency designated by law as the administering agency for the California Violence Intervention and Prevention (CalVIP) Grant Program, to fund CalVIP Grants and administration and evaluations of CalVIP-supported programs.
- Imposes, commencing on July 1, 2024, an excise tax on licensed firearm dealers, firarms manufacturers, and ammunition venders at the rate of 11% of the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition.
- Exempts from the excise tax the gross receipts from the retail sale of any firearm, firearm precursor part, or ammunition to a peace officer or any law enforcement agency employing that peace officer, for use in the normal course of employment.
- Exempts from the excise tax the gross receipts of any licensed firearms dealer, firearms manufacturer, or ammunition vendor in any quarterly period in which the total gross receipts from the retail sales of firearms, firearm precursor parts, or ammunition by that licensed firearms dealer, firearms manufacturer, or ammunition vendor is less than $5,000.
- Requires the California Department of Tax and Fee Administration (CDTFA) to administer and collect the excise tax.
- Authorizes CDTFA to prescribe, adopt, and enforce rules and regulations, including emergency regulations as necessary, relating to the administration and enforcement of this part, including, but not limited to, collections, reporting, refunds, and appeals.
- Provides that the excise taxes are due and payable to the CDTFA quarterly on or before the last day of the month next succeeding each quarterly period of three months.
- Requires, on or before the last day of the month following each quarterly period, a return for the preceding quarterly period to be filed with the CDTFA using electronic media.
- Requires returns to be authenticated in a form or pursuant to methods as may be prescribed by the CDTFA.
- Requires all amounts required to be paid, as prescribed, to be paid to CDTFA in the form of remittances.
- Requires revenues, net of refunds, and costs of administration, to be deposited in the Gun Violence Prevention, Healing, and Recovery Fund, as prescribed.
- Provides that the excise tax does not preclude or preempt a local ordinance that imposes any additional requirements, fee, or surtax on the sale of firearms, ammunition, or firearm precursor parts.
- Provides that the excise tax is in addition to any other tax or fee imposed by the state, or a city, county, or city and county.
- Authorizes CDTA, if any provision of this act or its application is held invalid, to issue guidance or adopt regulations necessary to address the invalidity and to promote the purposes of this act, as specified.
- Requires CDTA, if any provision of this act or its application is held invalid, to seek to ensure minimal disruption to funding and operations of programs and initiatives supported by the fund.
- Provides that, if any section, subsection, sentence, or clause of this act is for any reason declared unconstitutional, invalid, or unenforceable by any court of competent jurisdiction, such decision shall not affect the constitutionality, validity, or enforceability of the remaining portions of this act or any part thereof, and declares that the Legislature would have adopted this act notwithstanding the unconstitutionality, invalidity, or unenforceability of any one or more of its sections, subsections, sentences, or clauses.
- Requires the Director of Finance to transfer, as a loan, $2,400,000 from the General Fund to the CDTA to implement the excise tax.
- Requires any loan made to the fund to be repaid with moneys collected by the excise tax and prior to making any expenditures or appropriations to specified entities and programs.
EXISTING FEDERAL LAW:
1) States that the right of the people to keep and bear Arms, shall not be infringed. (U.S. Const., 2nd Amend.)
2) Establishes the Pittman-Robertson Act, which imposes an 11% levy on firearms, ammunition and archery equipment and distributes the proceeds to state governments for wildlife-related projects. (26 U.S.C. § 4181.)
EXISTING STATE LAW:
-
- Declares legislative intent to be the following:
- To develop community violence prevention and conflict resolution programs, in the state, based upon the recommendations of the California Commission on Crime Control and Violence Prevention, that would present a balanced, comprehensive educational, intellectual, and experiential approach toward eradicating violence in our society; and,
- That these programs shall be regulated, and funded pursuant to contracts with the OES. (Pen. Code, § 14112.)
- To develop community violence prevention and conflict resolution programs, in the state, based upon the recommendations of the California Commission on Crime Control and Violence Prevention, that would present a balanced, comprehensive educational, intellectual, and experiential approach toward eradicating violence in our society; and,
- States that first priority shall be given to programs that provide community education, outreach, and coordination, and include creative and effective ways to translate the recommendations of the California Commission on Crime Control and Violence Prevention into practical use in one or more of the following subject areas:
- Parenting, birthing, early childhood development, self-esteem, and family violence, to include child, spousal, and elderly abuse;
- Economic factors and institutional racism;
- Schools and educational factors;
- Alcohol, diet, drugs, and other biochemical and biological factors;
- Conflict resolution; and,
- The media. (Pen. Code, § 14114, subd. (a).)
- Parenting, birthing, early childhood development, self-esteem, and family violence, to include child, spousal, and elderly abuse;
- States that first priority programs may additionally provide specific direct services or contract for those services in one or more of the program areas as necessary to carry out the recommendations of the commission when those services are not otherwise available in the community and existing agencies do not furnish them. (Pen. Code, § 14115.)
- States that second priority shall be given to programs that conform to the same requirements as first priority programs, except that the educational component shall not be mandatory in each subject area, but shall be provided in at least three of those areas, and the programs shall provide specific direct services or contract for services in one or more program areas. (Pen. Code, § 14116.)
- States that each program shall have a governing board or an interagency coordinating team, or both, of at least nine members representing a cross section of existing and recipient, community-based, public and private persons, programs, agencies, organizations, and institutions. Specifies the duties of the governing board or coordinating team. (Pen. Code, § 14117.)
- Requires the OES to prepare and issue written program, fiscal, and administrative guidelines for the contracted programs that are consistent with this title, including guidelines for identifying recipient programs, agencies, organizations, and institutions, and organizing the coordinating teams. (Pen. Code, § 14118, subd. (a).)
- Requires OES to promote, organize, and conduct a series of one-day crime and violence prevention training workshops around the state, as specified. (Pen. Code, § 14119.)
- States that programs will be funded, depending on the availability of funds for a period of two years, with OES required to provide 50%of the program costs, to a maximum amount of $50,000 per program per year. The recipient shall provide the remaining 50% with other resources which may include in-kind contributions and services. (Pen. Code, § 14120.)
- Imposes an $0.18 tax on each gallon of fuel sold in the state. (Rev. & Tax. Code, § 7360.)
- Imposes taxes on cigarettes. (Rev. & Tax. Code, §§ 30101, et. seq.)
- Imposes taxes on cannabis. (Rev. & Tax. Code, §§ 34010, et. seq.)
FISCAL EFFECT:
Unknown
COMMENTS:
- Author's Statement: According to the author, “Californians are counting on us to do everything possible to keep them safe from mass shootings and gun violence. AB 28 is a common-sense measure that will fund school safety measures and gun violence prevention programs that have proven to be some of the most effective ways of stopping gun violence. A modest tax will provide us with a permanent, sustainable funding source for these essential programs and help protect communities across our state.”
- Brief Overview of Gun Violence in California: The amount of gun violence in California is relatively low compared to other states. In 2020, California’s firearm mortality rate was 8.5 deaths per 100,000 people, the seventh lowest in the nation. (Centers for Disease Control and Prevention, National Center for Health Statistics, Firearm Mortality by State <https://www.cdc.gov/nchs/pressroom/sosmap/firearm_mortality/firearm.htm> [last viewed Apr. 21, 2022].) When accounting for both shooting deaths and non-fatal shootings, California has the 37th-highest rate of gun violence in the county. (Everytown, Gun Violence in California (Jan. 2021) <https://maps.everytownresearch.org/wp-content/uploads/2021/02/Gun-Violence-in-California-2.9.2021.pdf> [last visited Apr. 21 2022].)
Nevertheless, gun violence in California is increasing, with communities across the state seeing shooting deaths reaching levels not seen in more than a decade. (See Lofstrom, Gun Deaths Drive California’s Largest-Ever Rise in Homicides, PPIC (July 12, 2021) <https://www.ppic.org/blog/gun-deaths-drive-californias-largest-ever-rise-in-homicides/> [last viewed Apr. 21, 2022].) Oakland, for example, saw more gun violence in 2021 than in any year since 2006, and Los Angeles saw more gun violence in 2021 than in any year since 2007. (DeBolt, 2021 is Oakland’s deadliest year since 2006, The Oaklandside (Dec. 23, 2021) <https://oaklandside.org/2021/12/23/2021-oakland-deadliest-year-since-2006-homicides-shootings-gun-violence/> [last viewed Apr. 21, 2022]; Rector, Gun Violence hits 15-year high in L.A., taking lives and erasing hard-fought gains, L.A. Times (Dec. 31, 2021) <https://www.latimes.com/california/story/2021-12-31/gun-violence-los-angles-15-year-high> [Apr. 21, 2022].)
Moreover, a spate of recent mass shootings have drawn attention to the destruction gun violence reaps on families and communities. (See e.g.,Salahieh, Half Moon Bay suspect is charged with 7 murder counts as US tallies more mass shootings than days so far in 2023 (Jan. 26, 2023) <https://www.cnn.com/2023/01/26/us/us-shootings-half-moon-bay-monterey-park-yakima/index.html > [last visited Jan. 26, 2023]; 1 dead, 3 hospitalized in Easter shooting in Sacramento, sheriff says, KCRA (Apr. 17, 2022) <https://www.kcra.com/article/sacramento-county-fatal-shooting/39744613> [last viewed Mar. 31, 2023]; Hutchinson, 6 killed, at least 12 injured in mass shooting in Sacramento, California: Police, ABCNews (Apr. 4, 2022) <https://abcnews.go.com/US/multiple-people-shot-downtown-sacramento-california-police/story?id=83843793> [last viewed Mar. 31, 2023]..)
This bill would establish the Gun Violence Prevention, Healing, and Recovery Fund—funded by an excise tax on licensed firearms dealers, firearms manufacturers, and ammunition vendors—to distribute money to programs addressing gun violence and its effect on the state and its citizens. - Excise Taxes in California and Effect of This Bill: An excise tax is a tax imposed on a specific good or activity, and generally related to the manufacture, sale or consumption of specific commodities, or licenses to pursue certain occupations. A subset of excise taxes are known as “sin” or “vice” taxes, and are levied on specific goods believed to be harmful to society and individuals, such as alcohol, tobacco and gambling, among other things. Sin taxes are generally intended to lower demand for the targeted good by increasing its price. California imposes excise taxes – many of which may be considered “sin” taxes – on several types of goods including gasoline, cigarettes, cellphones and cannabis. Even though excise taxes are collected from businesses, virtually all California merchants pass on the excise tax to the customer through higher prices for the taxed goods. This bill imposes a new excise tax on licensed vendors of firearms, ammunition and precursor parts, at a rate of either 10% or 11% depending on the item sold.
Based on the findings and declarations included in the bill, it is evident that this tax is not intended to operate as a sin tax, discouraging the sale and purchase of firearms, ammunition and precursor parts: “The modest tax proposed in this measure mirrors the Pittman-Robertson federal excise tax on other firearm and ammunition industry participants, is similarly dedicated to funding programs to remediate the harmful externalities of firearm industry commerce, and is similarly unlikely to discourage lawful sales and commerce in firearms or ammunition.” The provision establishing this finding also cites research suggesting that moderate tax increases on guns or ammunition would do little to disrupt hunting or recreational gun use. (https://www.rand.org/research/gun-policy/analysis/essays/firearm-and-ammunition-taxes.html)
Rather, this tax more closely resembles what is known as a Pigovian tax, or one intended to correct for the negative externalities caused by a specific market activity – in this case, societal costs related to the sale of firearms, ammunition and precursor parts. Generally, Pigovian taxes are calculated by assessing the marginal costs of these negative externalities, which, in the case of firearms, would be equal to losses – like injury, death, and lost wages – resulting from crimes, accidents, and suicides. This bill, however, takes a different approach and sets the rate of the tax imposed on firearm sales to resemble an existing federal tax on firearm and ammunition. That tax, established by the Federal Aid in Wildlife Restoration Act of 1937 (also known as the Pittman-Robertson Act), imposes an 11% levy on firearms, ammunition and archery equipment and distributes the proceeds to state governments for wildlife-related projects. (26 U.S.C. § 4181) Proceeds from that tax generate tens of millions of dollars annually for conservation efforts across California.
Opponents of this bill observe that, “[t]his year alone, the California Department of Fish and Wildlife will be allocated well over $30 million in federal [Pittman-Robertson] dollars.” By comparison, the cost of gun violence in California is estimated to be roughly $18 billion dollars per year—or a little under $500 per resident. (Giffords Law Center, The State of Gun Violence in California <https://giffords.org/wp-content/uploads/2020/01/Giffords-Law-Center-State-of-Gun-Violence-in-California-2020.pdf> [last visited Mar. 29, 2023].)
Unlike the Pittman-Robertson Act, this bill seeks to establish a tighter nexus between the tax it imposes and the target of the proceeds it generates. Specifically, the proceeds of the tax imposed under this bill would be directed exclusively toward gun violence prevention programs, education, and research. The bill, however, specifies no further details regarding these objectives. - Existing Fees Related to Firearm, Ammunition and Precursor Part Purchases: California currently imposes several fees related to the purchase of a new firearm in the state. The total state fee for a firearm purchase is $37.19, the bulk of which consists of the Dealer Record of Sale (DROS) fee, which covers the costs of the required background check prior to purchase. The DROS fee also funds several firearm-related responsibilities of the DOJ, including enforcement efforts and management of the Armed Prohibited Persons System. The balance of the state fee consists of a $1.00 Firearms Safety Act Fee and a $5.00 Safety and Enforcement Fee. These fees are imposed on the vendors but are generally paid by the purchasers. Additionally, in the event of a private party transfer, a firearms dealer may charge an additional fee of up to $10.00 per firearm. (https://oag.ca.gov/firearms/pubfaqs)
- The Post-Bruen Second Amendment: The Second Amendment to the U.S. Constitution provides, “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.” Recently, the United States Supreme Court issued an opinion striking down New York’s proper cause requirements for applicants wishing to obtain a CCW license. (N.Y. State Rifle & Pistol Assn., Inc. v. Bruen, (2022) 597 U.S. ___.) The Court stated that New York’s Concealed Carry Weapon (CCW) issuance regime is similar to California’s. (Id. at 5-6.) As the opinion is quite new, it is difficult to determine how the lower courts will interpret it. However, the Supreme Court reiterated “that the standard for applying the Second Amendment is as follows: When the Second Amendment’s plain text covers an individual’s conduct, the Constitution presumptively protects that conduct. The government must then justify its regulation by demonstrating that it is consistent with the Nation’s historical tradition of firearm regulation.” (Id. at 15; see also id. at 8 [“To justify its regulation, the government may not simply posit that the regulation promotes an important interest.”].) Under Bruen, “how and why the regulations burden a law-abiding citizen’s right to armed self-defense” matters. (Id. at p. 2132.)The Court said, “whether modern and historical regulations impose a comparable burden on the right of armed self-defense and whether that burden is comparably justified are ‘central’ considerations when engaging in an analogical inquiry.” (Id. at p. 2133.)
Regarding taxes, generally, while the Supreme Court usually “declines to closely examine the regulatory motive or effect of revenue-raising measures,” they have noted a point at which a tax becomes “a mere penalty with the characteristics of regulation and punishment.” (Nat’l Fed’n of Indep. Bus. v. Sebelius (2012)567 U.S. 519, 573; Bailey v. Drexel Furniture Co. (1922) 259 U.S. 20, 38.) In the context of firearms, the Pittman-Robertson Act has evaded or withstood legal challenge for over 100 years, which pre-Bruen would have strongly suggested that firearm taxes do not run afoul the Second Amendment, provided they do not make firearm ownership so infeasible as to burden the rights that the amendment protects. Whether excise taxes on firearms will survive in the post-Bruen world is an open question. - Multiple Attempts to Impose an Excise Tax on Firearms: This bill is substantially similar to three previous bills attempting to impose an excise tax on firearms and ammunition. AB 1227 (Levine), of the 2021-2022 Legislative Session, as amended on May 5, 2022, included provisions related to an excise tax on firearms. The author introduced substantially similar measures in 2021 (AB 1223) and in 2019 (AB 18). AB 18 was held on suspense in the Assembly Appropriations Committee. AB 1223 made it to the Assembly floor and AB 1227 made it to the Senate floor. However, both contained urgency clauses, requiring a two-thirds vote to pass. Despite receiving majority support, the bills failed to receive the required two-thirds vote.
Unlike AB 1223 and AB 1227, this bill does not contain an urgency clause. - Argument in Support: According to the Family Violence Law Center, “As part of our mission to support survivors of domestic violence it is imperative to acknowledge the intersection of gun violence and domestic violence and the impacts it has on survivors. When guns are present in a home where domestic violence has occurred a survivor is five times more likely to be killed. In over half of the domestic violence homicides nationwide a firearm was used to harm the victim. At Family Violence Law Center we believe it is imperative for our team to advance for survivor safety by supporting policy initiatives that educate survivors and youth on the harms of gun violence and how to seek safety. It is for this reason that the Family Violence Law Center seeks to educate survivors on various pathways to seeking safety including the use of legal avenues such as gun violence restraining orders and domestic violence restraining orders. AB 28 would allow the state of California to continue investing in this very urgent and important matter.
“As you know, gun violence is a public health, safety, and equity crisis. Since the start of the pandemic, our nation has seen record-setting gun and ammunition sales, alongside record nationwide increases in shootings, homicides, and related traumas. This has been a time of record profits for some and brutal pain and loss for too many others. This national gun violence crisis has also imposed an enormously unequal toll on communities of color in our state, where over 84% of youth homicide victims are Black or Latino, and where gun violence was already, prior to recent spikes in violence, by far the leading cause of death for young Black men and boys. This violence also imposes enormous burdens on those who are not direct victims too: experts at the National Institute of Justice have noted that “youth living in inner cities show a higher prevalence of post-traumatic stress disorder than soldiers” in our wartime military.
“In addition to its brutal human toll, gun violence also causes enormous economic harm and imposes enormous fiscal burdens on state and local governments and taxpayers. A report from the National Institute for Criminal Justice Reform in 2020 determined that each firearm homicide in Stockton, California cost taxpayers at least $2.5 million in direct government costs such as medical, law enforcement, court expenses, and lost tax revenue; nonfatal shootings with a single suspect were also estimated to directly cost taxpayers nearly $1 million on average. A 2021 report by Everytown for Gun Safety found that gun deaths and injuries cost California $22.6 billion annually, of which $1.2 billion is paid directly by taxpayers every year. Gun violence also imposes broader indirect costs in the form of reduced home values and reduced profitability for local businesses. A report by the Urban Institute found that each additional homicide in a census tract in Oakland, California, was ‘significantly associated with five fewer job opportunities among contracting businesses (businesses losing employees) the next year.’
“To promote community safety and mitigate the enormous collateral harms that flow from firearm industry commerce, California has in recent years acted to invest in violence intervention initiatives that work to interrupt entrenched cycles of shootings, trauma, and retaliation. These programs support and heal victims of firearm violence, and provide targeted intervention services to other individuals identified as at highest risk of being shot or involved in cycles of violence in the near future. The state’s investment in these programs, primarily through the California Violence Intervention and Prevention (CalVIP) grant program, has provided a critical lifeline to temporarily sustain and expand programs employing frontline violence intervention workers and saving lives today.
“However, these investments have thus far relied on short-term General Fund commitments. Sustained reductions in gun violence will require sustained investments in prevention and intervention efforts and longer-term planning to entrench virtuous cycles of trauma recovery, retaliation prevention, peace-building, and safety. That is why it has been a top priority for our organizations to establish a dedicated revenue stream to sustain this lifesaving work through the California Violence Intervention and Prevention program and related efforts.
“This bill is analogous to other firearm and ammunition industry tax measures that have been repeatedly upheld by the courts. Similar firearm, ammunition, and related industry excise taxes have also been in place at the federal level for over a century, and the gun industry has supported them. Since 1919, federal law has placed a 10 to 11% excise tax on the sale of guns, ammunition, and related products by licensed manufacturers, producers, and importers. Revenues from this excise tax have been used to fund wildlife conservation efforts that remediate the effects that guns and ammunition have on wildlife populations through hunting, particularly through grants to state wildlife agencies and for conservation-related research. The NRA has referred to this federal Firearms and Ammunition Excise tax as a ‘legislative model’ and ‘friend of the hunter.’
“Just as the federal tax on firearm industry manufacturers reasonably generates revenue to remediate the harmful effects that firearm industry commerce can have on wildlife, AB 28 would place an identical tax on retail sellers profiting from the sale of the same products in order to fund programs that effectively remediate the devastating human toll these products take on families and communities across the state. This tax is a modest and reasonable excise tax on sellers whose lawful and legitimate commercial activity still imposes enormous harmful externalities on California’s families, communities, and taxpayers.
“This bill is not intended to penalize firearm sellers or otherwise discourage lawful firearm sales and commerce whatsoever, but would reasonably generate revenue to sustain programs that are targeted and effective at mitigating the harms that firearms and related products too often cause. It would stop shootings, save lives, and make California a better, safer place.” - Argument in Opposition: According to the California Rifle & Pistol Association, “All of California’s law-abiding citizens benefit from efforts to implement programs which remediate the impacts of illegal gun violence upon our public, and all should equally help to fund their implementation. Yet, AB 28 would unjustifiably place the entire burden of funding efforts to address illegal gun violence on the backs of law-abiding citizens who legally purchase and lawfully use firearms and ammunition.
“Additionally, by substantially raising the cost of purchasing a firearm and ammunition in California, AB 28 would disproportionately impact the ability of economically disadvantaged communities and individuals to legally purchase a firearm and ammunition to protect themselves and their loved ones. Further, AB 28 would impede their equitable access to hunting and shooting sports – at a time when the Administration and the Legislature are seeking to increase participation in outdoor recreation and access for all Californians.
“Firearms and ammunition are already taxed at the federal level pursuant to the federal Pittman-Robertson Act (PR). But those dollars are allocated back to states to fund beneficial programs – including wildlife habitat projects that benefit game and non-game species. This year alone, the California Department of Fish and Wildlife will be allocated well over $30 million in federal PR dollars – monies which will fund a substantial portion of our state’s wildlife management, conservation, and research efforts. By doubling the excise tax law-abiding hunters and shooters already pay on all firearms and ammunition, AB 28 would effectively raise the total tax rate on these items to nearly 30% – notably reducing their sales and, in turn, the associated federal PR funding allocated back to California for critical wildlife conservation and management efforts.
“All of California’s citizens support and benefit from efforts intended to address the negative impact the criminal use of firearms has upon our law-abiding public. Yet, AB 28 would wrongly place the entire burden of funding initiatives intended to mitigate the harms caused by illegal gun violence on a small segment of our law-abiding public. AB 28 would do nothing to reduce criminal use of firearms but would inequitably impact the ability of the disadvantaged communities and economically challenged individuals to protect themselves and their families, and unjustly affect California’s lawful hunters, shooters, and our wildlife and their habitats.” - Related Legislation:
- AB 724 (Fong), would require DOJ to develop firearm safety certificate materials and tests in other specified languages besides English and Spanish. AB 724 is pending hearing in the Assembly Appropriations Committee.
- AB 1252 (Wicks), would establish the Office of Gun Violence Prevention within DOJ that, contingent upon sufficient state or private funding, must convene a Commission to End Gun Violence. AB 1252 is pending hearing in this committee.
- AB 1598 (Berman), would require DOJ to prepare a firearm safety certificate study guide, in English and in Spanish, that explains the information covered on the firearms safety test. AB 1598 is pending hearing in this committee.
- SB 243 (Seyarto), would exempt from sale and use taxes the gross receipt from the sale of, and the storage, use, or other consumption of, a gun safety system. SB 243 is pending hearing in the Senate Governance and Finance Committee.
- SB 637 (Min), would prohibit a state agency from entering into a contract with, depositing state funds with, or receiving a loan from a financial institution that invests in or makes loans to a company that manufactures firearms or ammunition. SB 637 is pending hearing in Senate Governmental Organization Committee.
- AB 724 (Fong), would require DOJ to develop firearm safety certificate materials and tests in other specified languages besides English and Spanish. AB 724 is pending hearing in the Assembly Appropriations Committee.
- Prior Legislation:
- AB 1227 (Levine), of the 2021-2022 Legislative Session, was substantially similar to this bill. AB 1227 failed passage in the Senate.
- AB 1223 (Levine), of the 2021-2022 Legislative Session, was substantially similar to this bill. AB 1223 failed passage in the Assembly.
- AB 2253 (Bonta), of the 2021-2022 Legislative Session, would have established the Office of Gun Violence Prevention within DOJ to address gun violence as a public health crisis and develop a strategy for incorporating a public health approach to address gun violence. AB 2253 was held on suspense in the Assembly Appropriations Committee.
- AB 18 (Levine), of the 2019-2020 Legislative Session, would have codified the CalVIP Grant Program and imposed a $25 excise tax on the sale of a new firearm, the proceeds of which would be deposited into the CalVIP firearm Tax Fund, which the bill also created. AB 18 was held on suspense in the Assembly Appropriations Committee.
- AB 1669 (Bonta), Chapter 736, Statutes of 2019, among other things, raised the DROS fee associated with the purchase of a firearm from $14 to $32.19.
- AB 1227 (Levine), of the 2021-2022 Legislative Session, was substantially similar to this bill. AB 1227 failed passage in the Senate.
REGISTERED SUPPORT / OPPOSITION:
Support
Alameda Health System
California Partnership for Safe Communities
City of Oakland - Department of Violence Prevention
Equal Justice USA
Everytown for Gun Safety Action Fund
Family Violence Law Center
Giffords
Greater Sacramento Urban League
Jewish Community Relations Council of Silicon Valley
Jewish Public Affairs Committee
Johns Hopkins Center for Gun Violence Solutions
Juma Ventures
Lakeshore Avenue Baptist Church
Los Angeles County Hospital-based Violence Intervention Consortium
March for Our Lives Action Fund
Moms Demand Action for Gun Sense in America
Movement 4 Life
National Institute for Criminal Justice Reform
Prosecutors Alliance California
San Diegans for Gun Violence Prevention
Shaphat Outreach
Soledad Enrichment Action, INC.
Southern California Crossroads
Students Demand Action for Gun Sense in America
The Health Alliance for Violence Intervention
Toberman Neighborhood Center
Urban Peace Institute
Women Against Gun Violence
Youth Alive!
382 Private Individuals
Opposition
Arcadia Police Officers' Association
Black Brant Group, the
Burbank Police Officers' Association
Cal-ore Wetlands and Waterfowl Council
California Bowmen Hunters/state Archery Association
California Chapter Wild Sheep Foundation
California Coalition of School Safety Professionals
California Deer Association
California Hawking Club
California Houndsmen for Conservation
California Rifle and Pistol Association, INC.
California Waterfowl Association
Claremont Police Officers Association
Congressional Sportsmen's Foundation
Corona Police Officers Association
Culver City Police Officers' Association
Deputy Sheriffs' Association of Monterey County
Ducks Unlimited
Fullerton Police Officers' Association
Golden Gate Chapter - Safari Club International
Gun Owners of California, INC.
Los Angeles School Police Officers Association
Murrieta Police Officers' Association
National Rifle Association - Institute for Legislative Action
Newport Beach Police Association
Nor-cal Guides and Sportsmen's Association
Palos Verdes Police Officers Association
Placer County Deputy Sheriffs' Association
Pomona Police Officers' Association
Riverside Police Officers Association
Riverside Sheriffs' Association
Rocky Mountain Elk Foundation
Sacramento Chapter - Safari Club International
Safari Club International - California Chapters
San Diego County Wildlife Federation
San Francisco Bay Area Chapter - Safari Club International
Santa Ana Police Officers Association
Suisun Resource Conservation District
Tulare Basin Wetlands Association
Upland Police Officers Association
Analysis Prepared by:
Andrew Ironside / PUB. S. / (916) 319-3744
Discussed in Hearing
59MIN
Senate Floor
4MIN
Assembly Floor
2MIN
Senate Standing Committee on Appropriations
40MIN
Senate Standing Committee on Public Safety
1H
Senate Standing Committee on Governance and Finance
17MIN
Assembly Floor
58MIN
Assembly Standing Committee on Revenue and Taxation
23MIN
Assembly Standing Committee on Public Safety
Bill Co-Author(s):
