You are on page 1of 3

California Association of Federal Firearms Licensees, Inc.

May 21, 2012 State of California Office of Administrative Law 300 Capitol Mall Suite 1250 Sacramento, CA 95814-4339 VIA FAX (916-323-6826), EMAIL (staff@oal.ca.gov), AND CERTIFIED U.S.MAIL Re: CTU2012-0207-01 Department of Justice Policy and Forms Regarding Applications for Dangerous Weapons Permits By Corporations and Other Entities

To Whom it May Concern, I write on behalf of CALIFORNIA ASSOCIATION OF FEDERAL FIREARMS LICENSEES, INC., (CAL-FFL) regarding the petition filed by Jason Davis for his client Franklin Armory, Inc., OAL No. CTU2012-0207-01 (hereinafter the Petition). CAL-FFL is California's premier non-profit industry association of, by, and for firearms manufacturers, dealers, collectors, training professionals, shooting ranges, and others, advancing the interests of its members and the general public through strategic litigation, legislative efforts, and education. First, CAL-FFL wishes to thank the Office of Administrative Law for accepting the abovereferenced Petition. We have received many complaints from our members about the Department of Justices arbitrary limitation of the Petitions subject permits to individuals to the exclusion of corporations and other entities among other complaints.1 CAL-FFL fully agrees with all of the points referenced in Mr. Davis Petition to the Office of Administrative Law for review of the California Department of Justices underground regulation regarding issuance of assault weapon and .50 BMG Rifle permits pursuant to Penal Codes 31000 & 31005 (Formerly 12286 and 12287) solely to individuals and not to corporations, limited liability companies, partnerships, or other associations defined as persons in Penal Code 16970 (formerly Penal Code section 12277). As such, CAL-FFL incorporates by reference the entire Petition herein. In addition to the arguments raised by Mr. Davis in the Petition, CAL-FFL respectfully offers for your consideration two additional relevant factors. 1. The Penal Code Clearly Provides Corporations The Opportunity To Obtain Permits

To the extent that the Department of Justice attempts to argue that permits were never intended to apply to corporations, and that the definition of persons as including corporations applies solely to create liability for the criminal components of the Assault Weapons Act, Penal Code section 31110
As a response to an increasing number of reports of apparently improper conduct on the part of the California Department of Justice towards those seeking to acquire firearms for self-defense - protected activity under the Second Amendment to the United States Constitution - The Calguns Foundation, Inc., has established an incident and issue reporting form, accessible at calgunsfoundation.org/doj. 2370 W. Cleveland Ave. #332 Madera, CA 93637 (888) 541-3040 (888) 541-9011 fax www.calffl.org
1

California Association of Federal Firearms Licensees, Inc.


OAL Review: DOJ Rules and Forms Regarding Permits For Corporations and Entities May 21, 2012 Page 2

provides express statutory authority for corporations and other entities to have assault weapons and .50 BMG permits. (a) Except as provided in subdivision (b), the Department of Justice shall, for every person, firm, or corporation to whom a permit is issued pursuant to this article, annually conduct an inspection for security and safe storage purposes, and to reconcile the inventory of assault weapons. (b) A person, firm, or corporation with an inventory of fewer than five devices that require any Department of Justice permit shall be subject to an inspection for security and safe storage purposes, and to reconcile inventory, once every five years, or more frequently if determined by the department. The Department of Justice has claimed that corporations are not entitled to permits, but the above Code provisions makes very clear that all such claims are simply and entirely meritless. 2. The Department of Justices Interpretation is Illogical, Creates Liability, and Ignores Corporate Protections

The method by which the Department of Justice grants such permits to individuals and not to corporations creates a potential and real liability situation for corporations and other business entities within California. A corporation or other business entity operating under federal law as a Federal Firearms Licensee (18 U.S.C. 921, et seq.) and under California laws regulating firearm sales that desires to sell assault weapons or .50 BMG rifles is required to operate under an individuals permit thereby creating entity confusion and criminal and civil liability. For example, only licensed gun dealers may engage in sales, service, or repair of assault weapons and .50 BMG rifles.2 Penal Code section 16790 defines licensed gun dealer as [a] person
31050. (a) Any licensed gun dealer may take possession of any assault weapon or .50 BMG rifle for the purposes of servicing or repair from any person to whom it is legally registered or who has been issued a permit to possess it pursuant to this chapter. (b) Any licensed gun dealer may transfer possession of any assault weapon or .50 BMG rifle received pursuant to subdivision (a), to a gunsmith for purposes of accomplishing service or repair of that weapon. A transfer is permissible only to the following persons: (1) A gunsmith who is in the dealer's employ. (2) A gunsmith with whom the dealer has contracted for gunsmithing services. (c) In order for paragraph (2) of subdivision (b) to apply, the gunsmith receiving the assault weapon or .50 BMG rifle shall hold all of the following: (1) A dealer's license issued pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and the regulations issued pursuant thereto. (2) Any business license required by a state or local governmental entity. 31055. In addition to the uses allowed in Article 5 (commencing with Section 30900), any licensed gun dealer who lawfully possesses an assault weapon or .50 BMG rifle pursuant to Article 5 (commencing with Section 30900) may do any of the following: (a) Transport the firearm between dealers or out of the state if that person is permitted pursuant to the National Firearms Act. Any transporting allowed by this section or Section 31050 shall be done as required by Sections 16850 and 25610. 2370 W. Cleveland Ave. #332 Madera, CA 93637 (888) 541-3040 voice (888) 541-9011 fax www.calffl.org
2

California Association of Federal Firearms Licensees, Inc.


OAL Review: DOJ Rules and Forms Regarding Permits For Corporations and Entities May 21, 2012 Page 3

who is licensed pursuant to Sections 26700 to 26915, inclusive, and who has a permit to sell assault weapons or .50 BMG rifles pursuant to Section 31005. Corporations and other business entities licensed pursuant to Section 26700 to 26915 are not issued permits; rather, individuals under their employment are issued permits. Thus, the Department of Justices interpretation creates the paradoxical situation in which they permit Corporations without assault weapon or .50 BMG Rifle permits to sell, repair, and/or service such firearms because they employ a permitted individual. Simultaneously, however, the Department of Justice permits individuals not licensed pursuant to Penal Code sections 26700 to 26915 to sell assault weapons and .50 BMG Rifles on behalf of their corporate employer (which is licensed pursuant to Penal Code Sections 26700 to 26915). The Department of Justices underground regulation (and its enforcement efforts related thereto) creates liability for the individual permittees by taking the individual out of the protections afforded by corporate or other business entity status since they are compelled [by the Department] to act as individuals. Additionally, it subjects both the Corporation and the individual to criminal prosecution for unlawful sales of assault weapons and .50 BMG Rifles because neither of the two entities possesses both the requisite licenses and permits nor can they, due to the Department of Justices misguided application of the laws underlying this matter. CONCLUSION Because the Department of Justices policy is directly contrary to clear and express statutory law and was not properly adopted pursuant to the Administrative Procedures Act (as described in the Petition), we respectfully request that the Office of Administrative Law find that the Department of Justices policy relating to the issuance of assault weapon and .50 BMG rifle permits to the exclusion of corporations and other business entities to be an unlawful underground regulation. Again, thank you for your time and consideration. Please direct all future correspondence regarding this matter to my attention. Sincerely,

__________________ Mr. Brandon Combs President CC: Kamala Harris, Attorney General

(b) Display the firearm at any gun show licensed by a state or local governmental entity. (c) Sell the firearm to a resident outside the state. (d) Sell the firearm to a person who has been issued a permit pursuant to Section 31000. 2370 W. Cleveland Ave. #332 Madera, CA 93637 (888) 541-3040 voice (888) 541-9011 fax www.calffl.org

You might also like