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 involving knowing or negligent conduct after the dealer has received written notice. 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 centralized electronic record-keeping and background check system through which every lawful firearm transaction in California must be processed. The DROS processing requirement is established across multiple code sections in the dealer regulation framework (Penal Code Sections 26700-26915). 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 cannot complete the background check within the 10-day waiting period, the dealer may not release the firearm until approval is received.
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 Account 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 are responsible for collecting and remitting the tax to the California Department of Tax and Fee Administration (CDTFA) on a quarterly basis. Dealers must register with the CDTFA for this purpose.
Exemptions apply to sales to law enforcement agencies and active or retired 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 California driver's license or California identification card
- 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
- Not release the firearm until the DOJ has approved the transaction and the waiting period has elapsed
- Collect and remit the AB 28 excise tax to the CDTFA
Integration with Waiting Period
The DROS submission initiates the mandatory 10-day waiting period under Penal Code Section 26815 [4]. The firearm may not be delivered to the purchaser until both the waiting period has elapsed and the DOJ has issued an approval. These two conditions must both be satisfied before the dealer may release the firearm.
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. Dealers who deliver firearms without completing the DROS process or without receiving DOJ approval face these administrative penalties as well as potential criminal charges. 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.