PC 26800:
Dealer Sale Requirements and DROS

California Penal Code Section 26800 ^[1] establishes the enforcement framework for dealer compliance with California's firearms retail regulations. Under PC 26800, a dealer's license is subject to forfeiture for a violation of any of the prohibitions and requirements governing licensed firearms retailers. The Department of Justice may also impose civil fines of up to $1,000 for general violations, or up to $3,000 for violations that subject the license to forfeiture when the dealer fails to take timely corrective action after written notification or the DOJ determines that the dealer acted knowingly or with gross negligence. These penalties serve as the primary enforcement mechanism ensuring that licensed dealers comply with California's firearms sale requirements, including the Dealer Record of Sale (DROS) system.

DROS System Overview

The DROS system is the electronic record-keeping and background check system generally used for firearm purchases and transfers through California licensed dealers. The dealer record requirement is set out in Penal Code Section 28100, with the required information prescribed in Article 2 beginning with Section 28150. When a buyer selects a firearm at a licensed dealer, the dealer initiates a DROS transaction by entering the buyer's personal information, identification details, and firearm information into the DOJ system ^[2].

Background Check Requirements

Upon submission of a DROS entry, the DOJ conducts a background check against multiple databases, including:

- The National Instant Criminal Background Check System (NICS)
- California's Armed Prohibited Persons System (APPS)
- The Automated Criminal History System (ACHS)
- Mental health records maintained by the DOJ
- Restraining order databases

The DOJ must approve, deny, or delay the transaction. A denial is issued when the background check reveals a prohibiting condition under state or federal law. If the DOJ delays the transfer to research eligibility and cannot determine eligibility within 30 days of the original submission, it must notify the dealer, who may then transfer the firearm after recording delivery and obtaining the required signatures.

Fees

The DROS fee is set by the DOJ and covers the cost of processing the background check and maintaining the DROS database. As of the current fee schedule, the total mandatory state fee is $37.19 per transaction, consisting of the $31.19 DROS fee, a $5.00 Firearms Safety and Enforcement surcharge, and a $1.00 Firearms Safety Act Fee ^[3]. This fee is paid by the buyer and is non-refundable regardless of whether the transaction is approved or denied.

Excise Tax (AB 28)

In addition to the DROS fee and standard sales tax, since July 1, 2024, AB 28 (the Gun Violence Prevention and School Safety Act) imposes an 11% excise tax on the retail sale of firearms, firearm precursor parts, and ammunition ^[5]. This tax is separate from the DROS fee and is applied to the gross receipts from the retail sale. Dealers liable for the excise tax must pay it to the California Department of Tax and Fee Administration (CDTFA) quarterly on or before the last day of the month following each quarter. Dealers must register with the CDTFA for this purpose.

Exemptions apply to sales to active or retired peace officers or law enforcement agencies employing those peace officers, and to retailers with less than $5,000 per quarter in total gross receipts from covered sales. The excise tax has increased the total out-of-pocket cost for firearm purchases. For example, a firearm with a retail price of $700 now carries approximately $77 in excise tax on top of the DROS fee and sales tax.

Dealer Obligations

Licensed dealers are required to:

- Verify the purchaser's identity using a valid, unexpired California driver's license or California identification card, or military identification accompanied by permanent duty station orders indicating a posting in California
- Confirm the purchaser holds a valid Firearms Safety Certificate (FSC) or is exempt
- Accurately enter all required information into the DROS system
- Retain a copy of all DROS forms for the period prescribed by law
- Observe the waiting period and any DOJ delay or prohibition notice, including the delivery provisions for unresolved eligibility after 30 days
- Pay any AB 28 excise tax due to the CDTFA

Integration with Waiting Period

The DROS submission initiates the mandatory 10-day waiting period under Penal Code Section 26815 ^[4]. The dealer must observe the waiting period and any DOJ delay or prohibition notice. If eligibility remains unresolved after 30 days, the DOJ must notify the dealer, who may then deliver the firearm after completing the delivery records and signatures required by PC 28220(g)(4).

Penalties for Violations

Under PC 26800, a dealer's license is subject to forfeiture for violations of the dealer regulation requirements. The DOJ may also impose civil fines. In addition to these administrative penalties, violations of the record-keeping requirements in Penal Code Section 28100 are misdemeanors, and unlawful deliveries may be punished under Section 27590. Buyers who attempt to circumvent the DROS system, such as by providing false information, may be charged with a misdemeanor or felony depending on the circumstances.