Today's Law As Amended


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AB-1064 Firearms dealers: conduct of business.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 26800 of the Penal Code is amended to read:

26800.
 (a)  A license under this chapter is subject to forfeiture for a breach of any of the prohibitions and requirements of this article, except those stated in the following provisions:
(a) (1)  Subdivision (c) of Section 26890.
(b) (2)  Subdivision (d) of Section 26890.
(c) (3)  Subdivision (b) of Section 26900.
(b) The department may assess a civil fine against a licensee, not to exceed one thousand dollars ($1,000), for any breach of a prohibition or requirement of this article that subjects the license to forfeiture under subdivision (a). The department may assess a civil fine not to exceed three thousand dollars ($3,000), for any breach 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 breach 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 breached 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).

SEC. 2.

 Section 26925 is added to the Penal Code, to read:

26925.
 (a) Commencing January 1, 2021, a licensee shall obtain a policy of commercial insurance that insures the licensee against liability for damage to property and for injury to or death of any person as a result of the theft, sale, lease or transfer or offering for sale, lease or transfer of a firearm or ammunition, or any other operations of the business and business premises. The limits of liability shall not be less than one million dollars ($1,000,000) for each incident of damage to property or incident of injury or death to a person.
(b) A licensee shall, on an annual basis, provide certification to the Department of Justice that it has obtained a policy of commercial insurance that meets the requirements of this section.
(c) The policy of commercial insurance shall contain an endorsement providing that the policy shall not be canceled until written notice has been given to the Department of Justice at least 30 days prior to the time the cancellation becomes effective.
(d) This section does not preclude or preempt a local ordinance that places additional or more stringent requirements on firearms dealers regarding insurance requirements relating to the conduct of the business of the licensee.