Article 2 - Grounds for Forfeiture of License

California Penal Code — §§ 26800-26920

Sections (33)

Amended by Stats. 2023, Ch. 245, Sec. 3. (AB 1420) Effective January 1, 2024.

(a)A license under this chapter is subject to forfeiture for a violation of any of the prohibitions and requirements of this article, except those stated in the following provisions:
(1)Subdivision (c) of Section 26890.
(2)Subdivision (d) of Section 26890.
(3)Subdivision (b) of Section 26900.
(b)The department may assess a civil fine against a licensee, in an amount not to exceed one thousand dollars ($1,000), for any breach of a prohibition or requirement 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. The department may assess a civil fine, in an amount not to exceed three thousand dollars ($3,000), for a violation of a prohibition or requirement of this article that subjects the license to forfeiture under subdivision (a), for either of the following:

(1)The licensee has received written notification from the department regarding the violation and subsequently failed to take corrective action in a timely manner.
(2)The licensee is otherwise determined by the department to have knowingly or with gross negligence violated the prohibition or requirement.
(c)The

department may adopt regulations setting fine amounts and providing a process for a licensee to appeal a fine assessed pursuant to subdivision (b).

(d)Moneys received by the department pursuant to this section shall be deposited into the Dealers’ Record of Sale Special Account of the General Fund, to be available, upon appropriation, for expenditure by the department to offset the reasonable costs of firearms-related regulatory and enforcement activities related to the sale, purchase, manufacturing, lawful or unlawful possession, loan, or transfer of firearms pursuant to any provision listed in Section 16580.
(e)This section shall become operative on July 1, 2022.

Amended by Stats. 2019, Ch. 738, Sec. 16. (SB 376) Effective January 1, 2020.

(a)Except as provided in subdivisions (b) and (c), the business of a licensee shall be conducted only in the buildings designated in the license.
(b)(1) A person licensed pursuant to Sections 26700 and 26705 may take possession of firearms and commence preparation of registers for the sale, delivery, or transfer of firearms at any gun show or event, as defined in Section 478.100 of Title 27 of the Code of Federal Regulations, or its successor, if the gun show or event is not conducted from any motorized or towed vehicle. A person conducting business pursuant to this subdivision shall be entitled to conduct business as authorized herein at any gun show or event in the state, without regard to the jurisdiction within this state that issued the

license pursuant to Sections 26700 and 26705, provided the person complies with all applicable laws, including, but not limited to, the waiting period specified in subdivision (a) of Section 26815, and all applicable local laws, regulations, and fees, if any.

(2)A person conducting business pursuant to this subdivision shall publicly display the person’s license issued pursuant to Sections 26700 and 26705, or a facsimile thereof, at any gun show or event, as specified in this subdivision.
(c)(1) A person licensed pursuant to Sections 26700 and 26705 may engage in the sale and transfer of firearms other than handguns, at events specified in Sections 27900 and 27905, subject to the prohibitions and restrictions contained in those sections.
(2)A person licensed pursuant to Sections 26700 and

26705 may also accept delivery of firearms other than handguns, outside the building designated in the license, provided the firearm is being donated for the purpose of sale or transfer at an auction, raffle, or similar event specified in Section 27900.

(d)The firearm may be delivered to the purchaser, transferee, or person being loaned the firearm at one of the following places:
(1)The building designated in the license.
(2)The places specified in subdivision (b) or (c).
(3)The place of residence of, the fixed place of business of, or on private property owned or lawfully possessed by, the purchaser, transferee, or person being loaned the firearm.

Added by Stats. 2022, Ch. 995, Sec. 2. (SB 1384) Effective January 1, 2023.

(a)Commencing January 1, 2024, a licensee shall ensure that its business premises are monitored by a digital video surveillance system that meets all of the following requirements:
(1)The system shall clearly record images and, for systems located inside the premises, audio, of the area under surveillance.
(2)Each camera shall be permanently mounted in a fixed location. Cameras shall be placed in locations that allow the camera to clearly record activity occurring in all areas described in paragraph (3) and reasonably produce recordings that allow for the clear identification of any person.
(3)The areas recorded shall include, without limitation, all of the following:
(A)Interior views of all entries or exits to the premises.
(B)All areas where firearms are displayed.
(C)All points of sale, sufficient to identify the parties involved in the transaction.
(4)The system shall continuously record 24 hours per day at a

frame rate no less than 15 frames per second.

(5)The media or device on which recordings are stored shall be secured in a manner to protect the recording from tampering, unauthorized access or use, or theft.
(6)Recordings shall be maintained for a minimum of one year.
(7)Recorded images shall clearly and accurately display the date and time.
(8)The system shall be equipped with a failure notification system that provides notification to the licensee of any interruption or failure of the system or storage device.
(b)A licensee shall not use, share, allow access, or otherwise

release recordings, to any person except as follows:

(1)A licensee shall allow access to the system to an agent of the department or a licensing authority conducting an inspection of the licensee’s premises, for the purpose of inspecting the system for compliance with this section, and only if a warrant or court order would not generally be required for that access.
(2)A licensee shall allow access to the system or release recordings to any person pursuant to search warrant or other court order.
(3)A licensee may allow access to the system or release recordings to any person in response to an insurance claim or as part of the civil discovery process, including, but not limited

to, in response to subpoenas, request for production or inspection, or other court order.

(c)The licensee shall post a sign in a conspicuous place at each entrance to the premises that states in block letters not less than one inch in height:

“THESE PREMISES ARE UNDER VIDEO AND AUDIO SURVEILLANCE. YOUR IMAGE AND CONVERSATIONS MAY BE RECORDED.”

(d)A licensee shall, on an annual basis, provide certification to the department, in a manner prescribed by the department, that its video surveillance system is in proper working order.
(e)This section does not preclude any local authority or local governing

body from adopting or enforcing local laws or policies regarding video surveillance that do not contradict or conflict with the requirements of this section.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A person’s license under this chapter, or a copy thereof certified by the issuing authority, shall be displayed on the premises where it can easily be seen.

Added by Stats. 2022, Ch. 995, Sec. 3. (SB 1384) Effective January 1, 2023.

(a)Commencing July 1, 2023, a licensee shall carry a general liability insurance policy providing at least one million dollars ($1,000,000) of coverage per incident.
(b)This section does not preclude any local authority from requiring a more stringent requirement regarding the maintenance of liability insurance.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

No firearm shall be delivered:

(a)Within 10 days of the application to purchase, or, after notice by the department pursuant to Section 28220, within 10 days of the submission to the department of any correction to the application, or within 10 days of the submission to the department of any fee required pursuant to Section 28225, whichever is later.
(b)Unless unloaded and securely wrapped or unloaded and in a locked container.
(c)Unless the purchaser, transferee, or person being loaned the firearm presents clear evidence of the person’s identity and age to the dealer.
(d)Whenever the dealer is notified by the Department of Justice that the person is prohibited by state or federal law from processing, owning, purchasing, or receiving a firearm. The dealer shall make available to the person in the prohibited class a prohibited notice and transfer form, provided by the department, stating that the person is prohibited from owning or possessing a firearm, and that the person may obtain from the department the reason for the prohibition.

Amended by Stats. 2011, Ch. 745, Sec. 8. (AB 809) Effective January 1, 2012.

No handgun or imitation handgun, or placard advertising the sale or other transfer thereof, shall be displayed in any part of the premises where it can readily be seen from the outside.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall agree to and shall act properly and promptly in processing firearms transactions pursuant to Chapter 5 (commencing with Section 28050).

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall comply with all of the following:

(a)Sections 27500 to 27535, inclusive.
(b)Section 27555.
(c)Section 28100.
(d)Article 2 (commencing with Section 28150) of Chapter 6.
(e)Article 3 (commencing with Section 28200) of Chapter 6.
(f)Section 30300.

Repealed (in Sec. 3) and added by Stats. 2013, Ch. 761, Sec. 4. (SB 683) Effective January 1, 2014. Section operative January 1, 2015, by its own provisions.

(a)A dealer shall not deliver a firearm unless the person receiving the firearm presents to the dealer a valid firearm safety certificate, or, in the case of a handgun, an unexpired handgun safety certificate. The firearms dealer shall retain a photocopy of the firearm safety certificate as proof of compliance with this requirement.
(b)This section shall become operative on January 1, 2015.

Amended by Stats. 2011, Ch. 745, Sec. 10. (AB 809) Effective January 1, 2012.

(a)No handgun may be delivered unless the purchaser, transferee, or person being loaned the firearm presents documentation indicating that the person is a California resident.
(b)Satisfactory documentation shall include a utility bill from within the last three months, a residential lease, a property deed, or military permanent duty station

orders indicating assignment within this state, or other evidence of residency as permitted by the Department of Justice.

(c)The firearms dealer shall retain a photocopy of the documentation as proof of compliance with this requirement.

Amended by Stats. 2011, Ch. 745, Sec. 11. (AB 809) Effective January 1, 2012.

(a)Except as authorized by the department, no firearms dealer may deliver a handgun unless the recipient performs a safe handling demonstration with that handgun.
(b)The safe handling demonstration shall commence with the handgun unloaded and locked with the firearm safety device with which it is required to be delivered, if applicable.

While maintaining muzzle awareness, that is, the firearm is pointed in a safe direction, preferably down at the ground, and trigger discipline, that is, the trigger finger is outside of the trigger guard and along side of the handgun frame, at all times, the handgun recipient shall correctly and safely perform the following:

(1)If the handgun is a semiautomatic pistol, the steps listed in Section 26853.
(2)If the handgun is a double-action revolver, the steps listed in Section 26856.
(3)If the handgun is a single-action revolver, the steps listed in Section 26859.
(c)The recipient shall receive instruction regarding how to render that handgun safe in the event of a jam.
(d)The

firearms dealer shall sign and date an affidavit stating that the requirements of subdivisions (a) and (b) have been met. The firearms dealer shall additionally obtain the signature of the handgun purchaser on the same affidavit. The firearms dealer shall retain the original affidavit as proof of compliance with this requirement.

(e)The recipient shall perform the safe handling demonstration for a department-certified instructor.
(f)No demonstration shall be required if the dealer is returning the handgun to the owner of the handgun.
(g)Department-certified instructors who may administer the safe handling demonstration shall meet the requirements set forth in subdivision (b) of Section 31635.
(h)The persons who are exempt from the requirements of

subdivision (a) of Section 31615, pursuant to Section 31700, are also exempt from performing the safe handling demonstration.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

To comply with Section 26850, a safe handling demonstration for a semiautomatic pistol shall include all of the following steps:

(a)Remove the magazine.
(b)Lock the slide back. If the model of firearm does not allow the slide to be locked back, pull the slide back, visually and physically check the chamber to ensure that it is

clear.

(c)Visually and physically inspect the chamber, to ensure that the handgun is unloaded.
(d)Remove the firearm safety device, if applicable. If the firearm safety device prevents any of the previous steps, remove the firearm safety device during the appropriate step.
(e)Load one bright orange, red, or other readily identifiable dummy round into the magazine. If no readily identifiable dummy round is available, an empty cartridge casing with an empty primer pocket may be used.
(f)Insert the magazine into the magazine well of the firearm.
(g)Manipulate the slide release or pull back and release the slide.
(h)Remove

the magazine.

(i)Visually inspect the chamber to reveal that a round can be chambered with the magazine removed.
(j)Lock the slide back to eject the bright orange, red, or other readily identifiable dummy round. If the handgun is of a model that does not allow the slide to be locked back, pull the slide back and physically check the chamber to ensure that the chamber is clear. If no readily identifiable dummy round is available, an empty cartridge casing with an empty primer pocket may be used.
(k)Apply the safety, if applicable.
(l)Apply the firearm safety device, if applicable. This requirement shall not apply to an Olympic competition pistol if no firearm safety device, other than a cable lock that the department has determined would damage the

barrel of the pistol, has been approved for the pistol, and the pistol is either listed in subdivision (b) of Section 32105 or is subject to subdivision (c) of Section 32105.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

To comply with Section 26850, a safe handling demonstration for a double-action revolver shall include all of the following steps:

(a)Open the cylinder.
(b)Visually and physically inspect each chamber, to ensure that the revolver is unloaded.
(c)Remove the firearm

safety device. If the firearm safety device prevents any of the previous steps, remove the firearm safety device during the appropriate step.

(d)While maintaining muzzle awareness and trigger discipline, load one bright orange, red, or other readily identifiable dummy round into a chamber of the cylinder and rotate the cylinder so that the round is in the next-to-fire position. If no readily identifiable dummy round is available, an empty cartridge casing with an empty primer pocket may be used.
(e)Close the cylinder.
(f)Open the cylinder and eject the round.
(g)Visually and physically inspect each chamber to ensure that the revolver is unloaded.
(h)Apply the firearm safety device, if

applicable. This requirement shall not apply to an Olympic competition pistol if no firearm safety device, other than a cable lock that the department has determined would damage the barrel of the pistol, has been approved for the pistol, and the pistol is either listed in subdivision (b) of Section 32105 or is subject to subdivision (c) of Section 32105.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

To comply with Section 26850, a safe handling demonstration for a single-action revolver shall include all of the following steps:

(a)Open the loading gate.
(b)Visually and physically inspect each chamber, to ensure that the revolver is unloaded.
(c)Remove the firearm

safety device required to be sold with the handgun. If the firearm safety device prevents any of the previous steps, remove the firearm safety device during the appropriate step.

(d)Load one bright orange, red, or other readily identifiable dummy round into a chamber of the cylinder, close the loading gate and rotate the cylinder so that the round is in the next-to-fire position. If no readily identifiable dummy round is available, an empty cartridge casing with an empty primer pocket may be used.
(e)Open the loading gate and unload the revolver.
(f)Visually and physically inspect each chamber to ensure that the revolver is unloaded.
(g)Apply the firearm safety device, if applicable. This requirement shall not apply to an Olympic competition pistol

if no firearm safety device, other than a cable lock that the department has determined would damage the barrel of the pistol, has been approved for the pistol, and the pistol is either listed in subdivision (b) of Section 32105 or is subject to subdivision (c) of Section 32105.

Added by Stats. 2013, Ch. 761, Sec. 5. (SB 683) Effective January 1, 2014.

(a)Except as authorized by the department, commencing January 1, 2015, a firearms dealer shall not deliver a long gun unless the recipient performs a safe handling demonstration with that long gun.
(b)The department shall, not later than January 1, 2015, adopt regulations establishing a long gun safe handling demonstration that shall include, at a minimum, loading and unloading the long gun.
(c)The firearms dealer shall sign and date an affidavit stating that the requirements of subdivision (a) and the regulations adopted pursuant to subdivision (b) have been met. The firearms dealer shall

additionally obtain the signature of the long gun purchaser on the same affidavit. The firearms dealer shall retain the original affidavit as proof of compliance with this section.

(d)The recipient shall perform the safe handling demonstration for a department-certified instructor.
(e)A demonstration is not required if the dealer is returning the long gun to the owner of the long gun.
(f)Department-certified instructors who may administer the safe handling demonstration shall meet the requirements set forth in subdivision (b) of Section 31635.
(g)An individual who is exempt from the requirements of subdivision (a) of Section 31615, pursuant to Section 31700, is also

exempt from performing the safe handling demonstration.

Amended by Stats. 2011, Ch. 745, Sec. 12. (AB 809) Effective January 1, 2012.

A licensee shall offer to provide the purchaser or transferee of a firearm, or person being loaned a firearm, with a copy of the pamphlet described in Section 34205, and may add the cost of the pamphlet, if any, to the sales price of the firearm.

Added by Stats. 2023, Ch. 248, Sec. 1. (AB 1598) Effective January 1, 2024. Operative January 1, 2025, by its own provisions.

(a)A licensee shall provide the purchaser or transferee of a firearm, or person being loaned a firearm, with a copy of the most current version of the pamphlet described in Section 34210 as found on the department’s internet website in PDF or another imaging format at the start of the waiting period described in Sections 26815 and 27540.
(b)A licensee may add the cost of the pamphlet, if any, to the price of the firearm.
(c)This section shall become operative on January 1, 2025.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall not commit an act of collusion as defined in Section 27550.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall post conspicuously within the licensed premises a detailed list of each of the following:

(a)All charges required by governmental agencies for processing firearm transfers required by Section 12806, Chapter 5 (commencing with Section 28050), and Article 3 (commencing with Section 28200) of Chapter 6.
(b)All fees that

the licensee charges pursuant to Section 12806 and Chapter 5 (commencing with Section 28050).

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall not misstate the amount of fees charged by a governmental agency pursuant to Section 12806, Chapter 5 (commencing with Section 28050), and Article 3 (commencing with Section 28200) of Chapter 6.

Added by Stats. 2022, Ch. 141, Sec. 1. (AB 1842) Effective January 1, 2023.

(a)A licensee shall not charge a restocking or other return-related fee of more than 5 percent of the purchase price of the firearm if the buyer decides to cancel the purchase of the firearm during the 10-day period imposed pursuant to Section 26815.
(b)This section shall not apply to a special order firearm by the buyer.
(c)For purposes of this section, “special order” means a specific request by the buyer for the licensee to order a firearm that is not available to the licensee.
(a)Except as provided in subdivisions (b) and (c) of Section 26805, all firearms that are in the inventory of a licensee shall be kept within the licensed location.
(b)Within 48 hours of discovery, a licensee shall report the loss or theft of any of the following items to the appropriate law enforcement agency in the city, county, or city and county where the licensee’s business premises are located:
(1)Any firearm or ammunition that is merchandise of the licensee.
(2)Any firearm or ammunition that the licensee takes possession of pursuant to Chapter 5 (commencing with Section 28050), or pursuant to Section

30312.

(3)Any firearm or ammunition kept at the licensee’s place of business.

Amended by Stats. 2019, Ch. 738, Sec. 17. (SB 376) Effective January 1, 2020.

(a)Except as provided in subdivisions (b) and (c) of Section 26805, any time when the licensee is not open for business, all inventory firearms shall be stored in the licensed location. All firearms shall be secured using one of the following methods as to each particular firearm:
(1)Store the firearm in a secure facility that is a part of, or that constitutes, the licensee’s business premises.
(2)Secure the firearm with a hardened steel rod or cable of at least one-eighth inch in diameter through the trigger guard of the firearm. The steel rod or cable shall be secured with a hardened steel lock that has a shackle. The lock and shackle shall be protected or shielded from the use of a boltcutter and

the rod or cable shall be anchored in a manner that prevents the removal of the firearm from the premises.

(3)Store the firearm in a locked fireproof safe or vault in the licensee’s business premises.
(b)The licensing authority in an unincorporated area of a county or within a city may impose security requirements that are more strict or are at a higher standard than those specified in subdivision (a).
(c)Upon written request from a licensee, the licensing authority may grant an exemption from compliance with the requirements of subdivision (a) if the licensee is unable to comply with those requirements because of local ordinances, covenants, lease conditions, or similar circumstances not under the control of the licensee.
(d)Subdivisions (a) and
(b)shall not apply to a licensee organized as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, or as a mutual benefit corporation pursuant to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code, if both of the following conditions are satisfied:
(1)The nonprofit public benefit or mutual benefit corporation obtained the dealer’s license solely and exclusively to assist that corporation or local chapters of that corporation in conducting auctions, raffles, or similar events at which firearms are auctioned or raffled off to fund the activities of that corporation or the local chapters of the corporation.
(2)The firearms are not handguns.

Added by Stats. 2023, Ch. 251, Sec. 7. (SB 368) Effective January 1, 2024.

(a)Except as otherwise provided in subdivision (g), a licensee shall accept a firearm for storage from an individual if all of the following conditions are met:
(1)The firearm is voluntarily and temporarily transferred to the licensee for safekeeping to prevent it from being accessed or used by the transferor or

other persons that may gain access to it in the transferor’s household, causing significant danger of personal injury to themselves or others.

(2)The licensee does not use the firearm for any purpose, except storage.
(3)The duration of the loan is limited to that amount of time reasonably necessary to prevent the harm described in paragraph (1).
(b)(1) A licensee may accept a firearm for storage from an individual for a purpose that is not unlawful that is not otherwise set forth in subdivision (a) or Section 29830.
(2)A licensee who accepts a firearm for storage pursuant to this subdivision is not to use

the firearm for any purpose other than storage.

(c)A firearm that is returned by a dealer to the owner of the firearm pursuant to this section shall be returned in accordance with the procedures set forth in Section 27540 and Article 1 (commencing with Section 26700) and Article 2 (commencing with Section 26800) of Chapter 2 of Division 6.
(d)If the dealer cannot legally return the firearm to the transferor or person loaning the firearm, then the following procedure shall apply:
(1)The transferor or person loaning the firearm may request, and the dealer shall grant, that the dealer retain possession of the firearm for a period of up to 45 days so that the transferor or the person loaning the firearm may designate

a person to take possession of that firearm in accordance with Section 27540. This 45-day period shall be in addition to the waiting period described in Sections 26815 and 27540, and any time necessary to process a transaction.

(2)If, before the end of the 45-day period, the transferor or person loaning the firearm designates a person to receive the firearm and that person completes an application to purchase, the dealer shall process the transaction in accordance with the provisions of Section 27540.
(3)If the transferor or person loaning the firearm, does not request that the firearm be held by the dealer pursuant to this subdivision, the firearm cannot be delivered to the designated person, or the 45-day period expires without action by the person loaning the

firearm, the dealer, shall forthwith deliver the firearm to the sheriff of the county or the chief of police or other head of a municipal police department of any city or city and county, where the dealership is located, who shall then dispose of the firearm in the manner provided by Sections 18000, 18005, and 34000.

(e)(1) A dealer who takes possession of a firearm pursuant to this section shall within 48 hours of taking possession of the firearm, notify the Department of Justice in a manner and format prescribed by the department.
(2)If a dealer retains possession of a firearm pursuant to subdivision (d), the dealer shall within 72 hours after retaining possession of the firearm, notify the Department of Justice in a manner and format prescribed by the department.
(f)A licensee may charge a reasonable fee for the storage of the firearm pursuant to this section. The fee for storage shall be the same fee as the fee charged for storage of a firearm pursuant to Section 29830.
(g)(1) Subdivision (a) applies only to a licensee that operates a retail premises open to the general public that sells firearms.
(2)A licensee that sells only handguns is not required to accept any long gun

for storage, and any licensee that sells only long guns is not required to accept any handgun for storage.

(3)No licensee is required to store more than 20 firearms per calendar year pursuant to this section.

Added by Stats. 2023, Ch. 251, Sec. 8. (SB 368) Effective January 1, 2024.

(a)A licensee shall not offer an opportunity to win an item of inventory in a game dominated by chance.
(b)Subdivision (a) shall not apply to a raffle conducted by a licensee organized as a nonprofit public benefit corporation pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, or as a mutual benefit corporation pursuant to Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code, if the nonprofit public benefit or mutual benefit corporation obtained the dealer’s license solely and exclusively to assist that corporation or local chapters of that corporation in conducting auctions, raffles,

or similar events at which firearms are auctioned or raffled off to fund the activities of that corporation or the local chapters of the corporation.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

Commencing January 1, 1994, a licensee shall, upon the issuance or renewal of a license, submit a copy of it to the Department of Justice.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

(a)A licensee shall maintain and make available for inspection during business hours to any peace officer, authorized local law enforcement employee, or Department of Justice employee designated by the Attorney General, upon the presentation of proper identification, a firearm transaction record, as defined in Section 16550.
(b)A licensee shall be in compliance with the

provisions of subdivision (a) if the licensee maintains and makes available for inspection during business hours to any peace officer, authorized local law enforcement employee, or Department of Justice employee designated by the Attorney General, upon the presentation of proper identification, the bound book containing the same information referred to in Section 478.124a and subdivision (e) of Section 478.125 of Title 27 of the Code of Federal Regulations and the records referred to in subdivision (a) of Section 478.124 of Title 27 of the Code of Federal Regulations.

Amended by Stats. 2011, Ch. 745, Sec. 14. (AB 809) Effective January 1, 2012.

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

(commencing with Section 21625) of Chapter 9 of Division 8 of the Business and Professions Code, acquires a handgun, and, commencing January 1, 2014, any firearm, and reports its acquisition pursuant to Section 21628.2 of the Business and Professions Code.

Added by Stats. 2010, Ch. 711, Sec. 6. (SB 1080) Effective January 1, 2011. Operative January 1, 2012, by Sec. 10 of Ch. 711.

A licensee shall forward, in a format prescribed by the Department of Justice, information as required by the department on any firearm that is not delivered within the time period set forth in Section 478.102(c) of Title 27 of the Code of Federal Regulations.

(a)Commencing January 1, 2018, a firearms dealer shall require any agent or employee who handles, sells, or delivers firearms to obtain and provide to the dealer a certificate of eligibility from the Department of Justice pursuant to Section 26710. On the application for the certificate, the agent or employee shall provide the name and California firearms dealer number of the firearms dealer with whom the person is employed.
(b)The department shall notify the firearms dealer in the event that the agent or employee who has a certificate of eligibility is or becomes prohibited from possessing firearms.
(c)If the local jurisdiction requires a background check of the agents or

employees of a firearms dealer, the agent or employee shall obtain a certificate of eligibility pursuant to subdivision (a).

(d)(1) Nothing in this section shall be construed to preclude a local jurisdiction from conducting an additional background check pursuant to Section 11105. The local jurisdiction may not charge a fee for the additional criminal history check.
(2)Nothing in this section shall be construed to preclude a local jurisdiction from prohibiting employment based on criminal history that does not appear as part of obtaining a certificate of eligibility.
(e)The licensee shall prohibit any agent who the licensee knows or reasonably should know is within a class of persons prohibited from possessing firearms pursuant to Chapter 2 (commencing with Section 29800) or Chapter 3

(commencing with Section 29900) of Division 9 of this title, or Section 8100 or 8103 of the Welfare and Institutions Code, from coming into contact with any firearm that is not secured and from accessing any key, combination, code, or other means to open any of the locking devices described in subdivision (g).

(f)Nothing in this section shall be construed as preventing a local government from enacting an ordinance imposing additional conditions on licensees with regard to agents or employees.
(g)For purposes of this article, “secured” means a firearm that is made inoperable in one or more of the following ways:
(1)The firearm is inoperable because it is secured by a firearm safety device listed on the department’s roster of approved firearm safety devices pursuant to subdivision (d) of Section 23655.
(2)The firearm is stored in a locked gun safe or long-gun safe that meets the standards for department-approved gun safes set forth in Section 23650.
(3)The firearm is stored in a distinct locked room or area in the building that is used to store firearms, which can only be unlocked by a key, a combination, or similar means.
(4)The firearm is secured with a hardened steel rod or cable that is at least one-eighth of an inch in diameter through the trigger guard of the firearm. The steel rod or cable shall be secured with a hardened steel lock that has a shackle. The lock and shackle shall be protected or shielded from the use of a boltcutter and the rod or cable shall be anchored in a manner that prevents the removal of the firearm from the premises.

Added by Stats. 2023, Ch. 250, Sec. 1. (SB 241) Effective January 1, 2024.

(a)Commencing July 1, 2026, every licensee, and every employee thereof who handles or processes the sale, loan, or transfer of firearms or ammunition in the course of their normal duties, shall annually complete the training and certification described in subdivision (c).
(b)Every licensee shall maintain records of certification for all employees on the business premises and shall make these records available to any agent of the department or a licensing authority conducting an inspection of

the licensee’s premises.

(c)(1) The department shall, by no later than February 1, 2026, develop and implement a course of training for licensees and their employees who handle or process the sale, loan, or transfer of firearms or ammunition in the course of their normal duties.
(2)The training described in paragraph (1) shall include, without limitation, all of the following:
(A)Federal and state laws governing sales and transfers of firearms and ammunition.
(B)How to recognize and identify straw purchasers and fraudulent activity.
(C)Indicators that a person is attempting to purchase a firearm illegally.
(D)How to recognize and identify indicators that an individual intends to use a firearm for unlawful purposes.
(E)How to recognize and identify indicators that an individual intends to use a firearm for self-harm.
(F)How to prevent theft or burglary of firearms and ammunition.
(G)How to respond to circumstances described in subparagraphs (A) to (F), inclusive, and any applicable reporting requirement.
(H)How to teach consumers rules of firearm safety, including, but not limited to, the safe handling and storage of firearms.
(I)How to accurately and precisely complete all state and federal forms related to the sale of firearms, firearms accessories, and ammunition.
(J)Other reasonable business practices that the department determines will deter gun trafficking or the unlawful use of firearms.
(3)The training shall include an examination with not fewer than 20 questions derived from the course materials and intended to confirm that a course participant has learned the information covered by the course. A participant that answers at least 70 percent of the examination questions correctly shall receive a certificate of completion valid for one year from the date of completion.
(4)In addition to the training course, the department shall prepare supplemental written materials that shall be available to all course participants and shall include, without limitation, all of the following:
(A)An outline of indicators that a prospective firearm transferee may be involved in gun trafficking or straw purchasing, including

all of the following:

(i)The person is accompanied by one or more individuals.

(ii) The person is communicating with other individuals by telephone or other means.

(iii) The person is buying multiple firearms.

(iv) The person has been the subject of a crime gun trace.

(v)The person has purchased a firearm in the preceding 30 days.

(vi) The person otherwise indicates that a firearm is being obtained for another person.

(B) How to ascertain whether a prospective firearm purchaser is

lawfully purchasing a firearm, including by asking questions of the prospective firearm purchaser.

(C) How to report a suspected fraudulent firearm purchase to the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and to the Department of Justice.

(5)The department shall regularly review the training materials and update them as necessary.
(d)The department may adopt regulations for the purpose of implementing this section.