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
SCOTUS Reverses and Remands Two NRA-ILA Backed Magazine Cases

News  

Thursday, June 30, 2022

SCOTUS Reverses and Remands Two NRA-ILA Backed Magazine Cases

One week after our landmark victory in NYSRPA v. Bruen, the Supreme Court issued orders in two other NRA-ILA backed cases. Those cases, ANJRPC v. Bruck and Duncan v. Bonta, challenge New Jersey and California laws that ban magazines capable ...

The Dominoes Begin to Fall: NJ Amends Permit Rules After Bruen

News  

Tuesday, June 28, 2022

The Dominoes Begin to Fall: NJ Amends Permit Rules After Bruen

New Jersey’s acting Attorney General, Matthew J. Platkin, issued a directive “clarifying requirements for carrying firearms in public” a day after the historic ruling by the U.S. Supreme Court in New York State Rifle & Pistol Assoc. v. ...

California Leaks Personal Data of Carry Permit Holders

News  

Wednesday, June 29, 2022

California Leaks Personal Data of Carry Permit Holders

On Monday June 27, California Attorney General Rob Bonta announced the launch of the California Department of Justice (DOJ)’s Firearms Dashboard Portal. The data tool was designed to give granular firearm transaction and Concealed Carry Weapons (CCW) permit ...

California: Legislature Passes and Newsom Signs Anti-Gun Bills

Friday, July 1, 2022

California: Legislature Passes and Newsom Signs Anti-Gun Bills

The California Legislature starts their Summer recess today, but not before a busy week full of defiant action against the recent Supreme Court victory in the NRA case of NYSRPA v. Bruen. The legislature passed several anti-gun ...

New Jersey:  Despite Historic Supreme Court Ruling Gun Bills Advance in Trenton

Friday, July 1, 2022

New Jersey: Despite Historic Supreme Court Ruling Gun Bills Advance in Trenton

On the heels of last week’s landmark Supreme Court decision in NYSRPA v. Bruen, Majority Democrats in Trenton doubled down on even more Second Amendment infringements by passing yet another package of gun bills.  This is ...

Delaware: Gun & Mag Bans Going to Gov. Carney

Friday, June 17, 2022

Delaware: Gun & Mag Bans Going to Gov. Carney

Last night, the House passed Senate Bill 6, to ban many standard capacity magazines in common use, sending it to Governor John Carney’s desk. The Senate passed House Bill 450, to ban many commonly-owned firearms, and ...

NRA Wins Supreme Court Case, NYSRPA v. Bruen

News  

Second Amendment  

Thursday, June 23, 2022

NRA Wins Supreme Court Case, NYSRPA v. Bruen

The National Rifle Association (NRA) welcomes the Supreme Court’s decision in NYSRPA v. Bruen. The Court affirmed that the right to bear arms does not stop at a person’s front door. This is the most ...

New York:  Majority Democrats Vote in Lockstep to Defy the United States Supreme Court

Friday, July 1, 2022

New York: Majority Democrats Vote in Lockstep to Defy the United States Supreme Court

Anti-Second Amendment politicians returned to Albany late this week and did the bidding of Gov. Kathy Hochul.  She called the Legislature back into an “extraordinary” session this week.  The session was anything but extraordinary. Lawmakers ...

Supreme Court Gets it Right, Congress Gets it Wrong

Friday, June 24, 2022

Supreme Court Gets it Right, Congress Gets it Wrong

On Thursday, SCOTUS released a historic decision in the NYSRPA v. Bruen case when they found the Second Amendment protects the right of law-abiding Americans to carry a firearm outside of the home. Despite the hysteria from ...

Guide To The Interstate Transportation Of Firearms

Gun Laws  

Thursday, January 1, 2015

Guide To The Interstate Transportation Of Firearms

CAUTION: Federal and state firearms laws are subject to frequent change. This summary is not to be considered as legal advice or a restatement of law.

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.