Agenda Item: 2
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL:
DATE: January 23, 2024
SUBJECT: ADJUSTMENTS TO LOS ANGELES COUNTY BUSINESS
LICENSING REGULATIONS FOR GUN AND AMMUNITION
DEALERS
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council receive a presentation on recent changes to Los Angeles County business licensing regulations for gun and ammunition dealers, review the options presented, and provide direction to staff.
BACKGROUND
Local businesses engaging in the sale of firearms are required to adhere to various California state and federal laws, including but not limited to requirements on posting notifications and warnings to consumers, reporting firearms lost or stolen from the dealer’s inventory, securing storage of firearms, completing employee background checks, reporting inventory records, carrying a general liability insurance policy with coverage for at least $1 million per incident, and most recently, as of January 1, 2024, installing and maintaining a fixed digital video surveillance and audio recording system on their business premises pursuant to Senate Bill 1384.
California firearms dealers must obtain and maintain a valid Federal Firearms License (FFL), a valid Certificate of Eligibility issued by the California Department of Justice (DOJ), a valid Seller’s Permit issued by the California Department of Tax and Fee Administration, active status on the DOJ Centralized List of Firearm Dealers, and any regulatory business license required by local government.
On November 7, 2023, the Los Angeles County (County) Board of Supervisors adopted a new Gun and Ammunition Dealers Ordinance (Ordinance). Prior to the Ordinance taking effect on December 8, 2023, the County Treasurer Tax Collector (TTC) was issuing business licenses to gun and ammunition dealers operating business within the City of Santa Clarita (City). However, in order for the TTC to continue issuing business licenses to gun and ammunition dealers within
the City, the City would be required to adopt its own local ordinance, conforming to the County.
The County Ordinance imposes new requirements for gun and ammunition dealers to obtain a County business license and additionally applies them to ammunition-only dealers. Previously, ammunition-only dealers were not required to have a specific County business license; however, under the new Ordinance, ammunition-only dealers are required to follow the same standards as gun dealers. According to information provided by the County, there are currently four gun and ammunition dealers located in the City and one ammunition-only dealer.
While the majority of the requirements are consistent with the current California Penal Code, which subject businesses are already required to adhere to, the County Ordinance also contains provisions that go beyond the standards set forth currently by state and federal law. For example, the Ordinance requires that gun and ammunition stores restrict access by unaccompanied minors under the age of 18. Where gun or ammunition sales activity is not the primary business performed at the business premise, the Ordinance states that the business could allow unaccompanied minors inside the store as long as all guns and ammunition are wholly kept, displayed, or offered within a separate room or enclosure where minors are excluded.
The County Ordinance additionally increases the licensing fee from $739 to $954 for a first-year license and from $279 to $577 for each annual renewal thereafter. A copy of the approved Ordinance is available in the Clerk's Reading File.
Pursuant to California Penal Code Section 26700, firearm dealers must obtain any regulatory or business license required by the local government or a letter from the duly constituted licensing authority having primary jurisdiction for the applicant’s 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 beyond state and federal law.
In order to prevent an interruption of business for local gun and ammunition dealers, the City currently has two options for the City Council to consider:
Option 1 - Adopt the County Gun and Ammunition Dealers Ordinance Under this option, the County would resume administering business licenses for gun and ammunition dealers located in the City. Local gun and ammunition dealers would need to obtain a County business license, under the new set of requirements, and be subject to TTC enforcement.
Option 2 - Not adopt the County Gun and Ammunition Dealers Ordinance and authorize the City Manager or designee to issue letters to local firearms dealers of this decision, pursuant to Penal Code Section 26700
Under this option, the County would not administer business licenses for gun and ammunition dealers located in the City. Local gun and ammunition dealers would not be required to obtain a local business license, but would still be subject to all applicable state and federal laws and regulations. In lieu of paying the County licensing fee, gun and ammunition dealers in the City would be required to pay the DOJ an annual inspection fee of $95 per dealership location.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
No financial impact.
ATTACHMENTS
County Ordinance 2023-0048 (available in the Clerk's Reading File)