Explore The NRA Universe Of Websites

APPEARS IN News

DOJ, State Legislative Counsel`s Office Clash Over New Handgun Law

Tuesday, March 27, 2001

NATIONAL RIFLE ASSOCIATION 11250 Waples Mill Road, Fairfax, Virginia 22030 CALIFORNIA RIFLE & PISTOL ASSOCIATION 271 East Imperial Highway, Fullerton, California 92835 Contact: Chuck Michel, CRPA Spokesperson (310) 548-3703 CALIFORNIA SPORTING GOODS ASSOCIATION 5800 Bluff Street, Norco, California 92860 Contact: Geoff Barclay, CSGA Spokesperson (909) 698-0880
Legality Of Gun Consignment Sales At Issue, Firearm Dealers Face Prosecution and Bankruptcy
SACRAMENTO - The California Legislative Counsel`s Office, which acts as the legal counsel to the State Legislature, just issued a formal Opinion (#21239) interpreting a new handgun law and condemning a California Department of Justice (DOJ) policy interpreting the same provision. As a result, gun dealers who, relying on the DOJ policy, facilitated private party "consignment" sales of handguns since the first of the year face possible prosecution. The registered handgun sales are subject to invalidation, and the registered guns may be confiscated. And most gun dealers, who relied on private party consignment sales for the majority of their profits, face insolvency. The law at issue is Senate Bill 15 of 1999, the "unsafe" handgun bill that became fully effective on January 1, 2001. SB 15 requires that all handguns pass a series of performance tests and be added to a DOJ list of guns approved for sale before a gun can be sold by a dealer in the state. (All handgun sales are registered, pursuant to preexisting law.) SB 15 has an exception allowing private parties (i.e., non dealers) to sell untested and unlisted handguns to other private parties. But, as has always been the case, that sale must be processed through a dealer and the handgun registered to its new owner. Previously dealers could buy used handguns directly from private parties, transfer them into their inventory, and then put them up for sale - often at significant mark-up. The DOJ policy interpreted SB 15 as banning that practice, and prohibited dealers from buying untested / unlisted guns directly from, or selling untested / unlisted guns directly to, private parties. But the DOJ policy does allow dealers to facilitate these private party sales by offering the guns on consignment. Dealers had hoped to stay in business using that consignment process in lieu of simply buying and selling the handguns as they had before SB 15 went into effect. So in reliance on the DOJ policy, they have been facilitating thousands of these consignment sales since the first of the year. The DOJ policy was formally adopted through a DOJ "Information Bulletin" sent to all gun dealers on December 12, 2000 (#2000 FD-07) (caag.state.ca.us /firearms/ infobuls). "If the Legislative Counsel opinion is adopted all these gun buyers, sellers, and dealers are in jeopardy of prosecution and of having their guns confiscated, because all the guns are registered," said civil rights attorney Chuck Michel, who represents the CRPA and its membership. "These problems were pointed out, but ignored when this law was rammed through the Legislature. We are deeply troubled by the position this puts CRPA members and gun owners in. We hope the DOJ will defend its position, but unfortunately in the past the DOJ has abandoned people who were prosecuted while complying with DOJ gun policies." "This is terrible. The possibility of criminal repercussions is bad enough. On top of that the minimal mark-up on new handguns, and the relatively few manufacturers willing to pay DOJ`s fees to have their new guns listed, makes it impossible for most dealers to stay in business without the revenue generated from private party consignment sales," said Geoff Barclay, President of the California Sporting Goods Association, which represents gun dealers throughout the state. "What makes this particularly devastating is that, with all the laws passed in the past two years, many dealers have gone under, and the ones left are barely hanging on as it is."
TRENDING NOW
Virginia: More Gun Control Bills Filed Including Semi-Auto Ban and Tax on Suppressors!

Thursday, January 8, 2026

Virginia: More Gun Control Bills Filed Including Semi-Auto Ban and Tax on Suppressors!

Anti-gun legislators in Richmond have been busy ahead of the 2026 legislative session working on ways to burden your Second Amendment rights.

Virginia: Multiple Gun Control Bills Up in Committee on Monday

Friday, January 23, 2026

Virginia: Multiple Gun Control Bills Up in Committee on Monday

On Monday, January 26th, the Senate Courts of Justice committee will hold a hearing on over a dozen gun control bills, including semi-automatic bans and concealed carry prohibitions. The hearing will begin at 8am.

The Stakes are High as U.S. Supreme Court Considers Anti-gun “Vampire Rule”

News  

Monday, January 26, 2026

The Stakes are High as U.S. Supreme Court Considers Anti-gun “Vampire Rule”

On Tuesday, Jan. 20, the U.S. Supreme Court held oral arguments in a Second Amendment case that asked whether handgun carry licensees could be presumptively banned from carrying their arms onto publicly accessible private property. 

ATF Rewrites Rules for Addicts/Unlawful Drug Users as Supreme Court Case Looms

News  

Monday, January 26, 2026

ATF Rewrites Rules for Addicts/Unlawful Drug Users as Supreme Court Case Looms

On Jan. 22, ATF published an interim final rule (IFR) that revises the agency’s approach to determining who is an “unlawful user of or addicted to any controlled substance” and therefore prohibited from owning or receiving firearms ...

Virginia: More Gun Control Introduced in General Assembly

Thursday, January 15, 2026

Virginia: More Gun Control Introduced in General Assembly

The 2026 Virginia legislative session is underway, and lawmakers are continuing their assault on your Second Amendment rights.

DOJ Determines 1927 Prohibition on Mailing Handguns Violates Second Amendment

News  

Monday, January 19, 2026

DOJ Determines 1927 Prohibition on Mailing Handguns Violates Second Amendment

In a monumental development for gun owners, the Department of Justice has acknowledged that one of the oldest federal gun control laws on the books is unconstitutional.

Commonwealth Countries Continue to Illustrate Folly of Overreach on Guns

News  

Monday, January 26, 2026

Commonwealth Countries Continue to Illustrate Folly of Overreach on Guns

As America gets ready to embark on its 250th birthday celebrations, it’s a good time to assess and appreciate how lucky we are, with constitutional protections of speech and gun rights. Nothing puts that into ...

Second Amendment Momentum: Quick Takeaways from SHOT Show

News  

Monday, January 26, 2026

Second Amendment Momentum: Quick Takeaways from SHOT Show

Last week’s 48th annual SHOT (Shooting, Hunting, and Outdoor Trade) Show hosted by the National Shooting Sports Foundation (NSSF)) showcased not only the latest and greatest guns and gear, but an invigorated and promising outlook for the Second ...

North Carolina: Update on Permitless Carry

Tuesday, December 16, 2025

North Carolina: Update on Permitless Carry

In September, the North Carolina General Assembly briefly returned from recess and re-referred Senate Bill 50, Freedom to Carry NC, to the House Rules Committee.

North Carolina: Permitless Carry Veto Override Vote Postponed

Tuesday, January 13, 2026

North Carolina: Permitless Carry Veto Override Vote Postponed

Today, the North Carolina House of Representatives rescheduled this morning’s veto override on Senate Bill 50, Freedom to Carry NC, to February 9, 2026.

MORE TRENDING +
LESS TRENDING -

More Like This From Around The NRA

NRA ILA

Established in 1975, the Institute for Legislative Action (ILA) is the "lobbying" arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.