Issuance, Forfeiture, and Conditions of License to Sell, Lease, Or Transfer Firearms at RetailLicense to Sell, Lease, Or Transfer Firearms at Retail

Section § 26700

Explanation

In California, to qualify as a gun dealer, a person must meet several criteria. They need to have a federal firearms license, any necessary local business licenses, and a seller's permit from the California tax authority. Starting July 1, 2024, they also need a specific California registration certificate. Additionally, they must have a certificate of eligibility from the state Department of Justice and a gun dealer's license in the correct format. Finally, they must be listed in a centralized registry of dealers.

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)CA Penal Law Code § 26700(a) Has a valid federal firearms license.
(b)CA Penal Law Code § 26700(b) Has any regulatory or business license, or licenses, required by local government.
(c)CA Penal Law Code § 26700(c) Has a valid seller’s 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)CA Penal Law Code § 26700(d) Has a certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(e)CA Penal Law Code § 26700(e) Has a license issued in the format prescribed by subdivision (c) of Section 26705.
(f)CA Penal Law Code § 26700(f) Is among those recorded in the centralized list specified in Section 26715.
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Section § 26705

Explanation

This section allows local authorities, like cities or counties, to process and approve licenses for selling firearms at retail. If a license is denied, they must explain why in writing.

To get a license, applicants must provide a federal firearms license, a seller’s permit, and a Department of Justice certificate of eligibility. After July 1, 2024, they also need a registration certificate.

Licenses last up to one year and can take different forms. They might be a specific form set by the Attorney General, a business license explicitly for firearms sales, or a letter stating that no license is needed if the area doesn't regulate firearm sales.

Local authorities can charge fees to cover the cost of processing these licenses.

(a)CA Penal Law Code § 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)CA Penal Law Code § 26705(b) No license shall be granted to any applicant who fails to provide a copy of each of the following documents:
(1)CA Penal Law Code § 26705(b)(1) A valid federal firearms license.
(2)CA Penal Law Code § 26705(b)(2) A valid seller’s 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)CA Penal Law Code § 26705(b)(3) A certificate of eligibility issued by the Department of Justice pursuant to Section 26710.
(c)CA Penal Law Code § 26705(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)CA Penal Law Code § 26705(c)(1) In the form prescribed by the Attorney General.
(2)CA Penal Law Code § 26705(c)(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)CA Penal Law Code § 26705(c)(3) A letter from the duly constituted licensing authority having primary jurisdiction for the applicant’s 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)CA Penal Law Code § 26705(d) Local licensing authorities may assess fees to recover their full costs of processing applications for licenses.
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Section § 26710

Explanation

This law allows individuals to request a certificate of eligibility from the California Department of Justice. The DOJ will use its own records and the National Instant Criminal Background Check System to check if the person is legally permitted to possess or purchase firearms under state and federal laws. If the background check is clear, the department will issue the certificate. The department will also set regulations for the program and charge fees to cover the program's costs.

(a)CA Penal Law Code § 26710(a) A person may request a certificate of eligibility from the Department of Justice.
(b)CA Penal Law Code § 26710(b) The Department of Justice shall examine its records and records available to the department in the National Instant Criminal Background Check System in order to determine if the applicant is prohibited by state or federal law from possessing, receiving, owning, or purchasing a firearm.
(c)CA Penal Law Code § 26710(c) The department shall issue a certificate to an applicant if the department’s records indicate that the applicant is not a person who is prohibited by state or federal law from possessing firearms.
(d)CA Penal Law Code § 26710(d) The department shall adopt regulations to administer the certificate of eligibility program and shall recover the full costs of administering the program by imposing fees assessed to applicants who apply for those certificates.
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Section § 26715

Explanation

This law requires the California Department of Justice to maintain a central list of licensed firearms dealers. If dealers violate certain legal provisions, their federal firearms license expires, or they don't certify compliance with specific regulations, they can be removed from this list. When a dealer is removed, local law enforcement and licensing authorities are notified. The list's information is only accessible to law enforcement, federal firearms license holders for shipping verification, and organizers of gun shows to confirm dealer eligibility. Access to this information is restricted to confirming someone’s current licensing status.

(a)CA Penal Law Code § 26715(a) Except as otherwise provided in paragraphs (1) and (3) of subdivision (b), the Department of Justice shall keep a centralized list of all persons licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.
(b)Copy CA Penal Law Code § 26715(b)
(1)Copy CA Penal Law Code § 26715(b)(1) The department may remove from this list any person who knowingly or with gross negligence violates a provision listed in Section 16575.
(2)CA Penal Law Code § 26715(b)(2) The department shall remove from the centralized list any person whose federal firearms license has expired or has been revoked.
(3)CA Penal Law Code § 26715(b)(3) The department shall remove from the centralized list any person or entity who has failed to provide certification of compliance with Section 26806 pursuant to subdivision (d) of Section 26806.
(4)CA Penal Law Code § 26715(b)(4) Upon removal of a dealer from this list, notification shall be provided to local law enforcement and licensing authorities in the jurisdiction where the dealer’s business is located.
(c)CA Penal Law Code § 26715(c) Information compiled from the list shall be made available, upon request, for the following purposes only:
(1)CA Penal Law Code § 26715(c)(1) For law enforcement purposes.
(2)CA Penal Law Code § 26715(c)(2) When the information is requested by a person licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code for determining the validity of the license for firearm shipments.
(3)CA Penal Law Code § 26715(c)(3) When information is requested by a person promoting, sponsoring, operating, or otherwise organizing a show or event as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, who possesses a valid certificate of eligibility issued pursuant to Article 1 (commencing with Section 27200) of Chapter 3, if that information is requested by the person to determine the eligibility of a prospective participant in a gun show or event to conduct transactions as a firearms dealer pursuant to subdivision (b) of Section 26805.
(d)CA Penal Law Code § 26715(d) Information provided pursuant to subdivision (c) shall be limited to information necessary to corroborate an individual’s current license status as being one of the following:
(1)CA Penal Law Code § 26715(d)(1) A person licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.
(2)CA Penal Law Code § 26715(d)(2) A person who is licensed pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code, and who is not subject to the requirement of being licensed pursuant to subdivisions (a) to (e), inclusive, of Section 26700.
centralized list licensed firearms dealers Department of Justice ...

Section § 26720

Explanation

This law section allows California's Department of Justice to inspect firearms dealers at least every three years to ensure they follow state laws and regulations. Starting January 1, 2024, these inspections will include a review of the dealers' records, examining 25% to 50% of each type of record.

The department can charge dealers an annual fee, up to $115, to cover the costs of maintaining a dealer list and inspections. Dealers in areas with their own inspection programs don't have to pay the part of the fee related to inspections, but they must prove that their jurisdiction has such a program.

Even exempt dealers can be inspected to ensure compliance with all firearms laws and regulations.

(a)CA Penal Law Code § 26720(a) The Department of Justice may conduct inspections of dealers at least every three years to ensure compliance with the requirements of this title, including any regulations promulgated to implement this title, Sections 21628.2, 21636, and 21640 of the Business and Professions Code, and any other applicable state law.
(1)CA Penal Law Code § 26720(a)(1) Commencing on January 1, 2024, the department shall conduct inspections of all dealers, except a dealer specified in subdivision (c), at least once every three years, to ensure compliance with the requirements of this title, including any regulations promulgated to implement this title, Sections 21628.2, 21636, and 21640 of the Business and Professions Code, and any other applicable state law.
(2)CA Penal Law Code § 26720(a)(2) Inspections of dealers pursuant to this subdivision shall include an audit of dealer records that includes a sampling of at least 25 percent but no more than 50 percent of each record type.
(b)CA Penal Law Code § 26720(b) The department may assess an annual fee, not to exceed one hundred fifteen dollars ($115), to cover the reasonable cost of maintaining the list described in Section 26715, including the cost of inspections.
(c)CA Penal Law Code § 26720(c) A dealer whose place of business is located in a jurisdiction that has adopted an inspection program to ensure compliance with firearms law is exempt from that portion of the department’s fee that relates to the cost of inspections. The applicant is responsible for providing evidence to the department that the jurisdiction in which the business is located has the inspection program. The department may inspect a dealer who is exempt from mandatory inspections under subdivision (b) to ensure compliance with the requirements of this title, including any regulations promulgated to implement this title, Sections 21628.2, 21636, and 21640 of the Business and Professions Code, and any other applicable state law.
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Section § 26725

Explanation

This section requires the Department of Justice to keep and provide information on firearm dealers in California. They must track and report on inspections done and fees collected, jurisdictions that are exempt, and dealers who are removed from the state's list of authorized dealers. Additionally, they must report on dealers who knowingly or negligently break the law.

The Department of Justice shall maintain and make available upon request information concerning all of the following:
(a)CA Penal Law Code § 26725(a) The number of inspections conducted and the amount of fees collected pursuant to Section 26720.
(b)CA Penal Law Code § 26725(b) A listing of exempted jurisdictions, as defined in Section 26720.
(c)CA Penal Law Code § 26725(c) The number of dealers removed from the centralized list defined in Section 26715.
(d)CA Penal Law Code § 26725(d) The number of dealers found to have violated a provision listed in Section 16575 and any other applicable state law with knowledge or gross negligence.
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