Los Gatos Municipal Code Art. XIII Firearms Dealers

This article is enacted pursuant to state law as set forth in the California Penal Code that allows a local government to require a permit (license) to sell firearms within the Town.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

For purposes of this article XIII, the following words and terms are defined as follows:

Applicant means any person or any officer, director, employee or agent of a business, or a business entity who applies for a permit to sell, lease, or transfer firearms, firearm components, ammunition, or destructive devices.

Chief of Police means the Chief of Police of the Town of Los Gatos or the chief's designated representative.

Destructive device means any explosive, incendiary, bomb, grenade or any similar device as more particularly defined in Title 18, United States Code, and California Penal Code.

Director of Community Development means the Director of Community Development of the Town of Los Gatos or the director's designated representative. All references in the Town Code to "Planning Director" are intended to refer to the Director of Community Development (Town Code section 20.10.020).

Firearm means any device which is designed to be used as a weapon or may be converted or modified to be used as a weapon which expels a projectile through a barrel by the force of an explosion or other form of combustion. A "firearm" includes any device defined in Title 18, United States Code, and relevant sections of the California Penal Code.

Firearm ammunition (or ammunition) means any cartridge cases, primers, bullets, or propellant powder designed for use in any firearm, and any component thereof.

Permitee means any person or any officer, director, employee or agent of a business, or a business entity who is issued a permit to sell, lease, or transfer firearms, firearm components, or ammunition.

Retail sales of firearms, ammunition and/or destructive devices means any business engaged in the business of selling, leasing, or otherwise transferring any firearm, firearm component, ammunition and/or destructive device as defined in this chapter by means of traditional retail sales, individual or bulk transactions, internet transactions, or in any other manner indicative of trade.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

No person shall engage in the business of selling, leasing, transferring, advertising or offering or exposing for sale any firearms, ammunition, or destructive devices without first obtaining a permit pursuant to the provisions of this chapter. For purposes of this chapter, engaging in the business of selling or transferring firearms, ammunition, and/or destructive devices includes the infrequent sale or transfer, offer, exposing for sale, or advertising of firearms, ammunition, and/or destructive devices.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

(a) Any person, partnership, or other entity desiring to engage in the business of selling or transferring firearms, ammunition and/or destructive devices shall apply for a permit to do so on an application form specifically designated for that purpose and provided by the Town of Los Gatos.

(b) Any person proposing to engage in business as a firearms dealer within the Town shall secure the applicable federal and state firearms licenses or certificates and shall apply within thirty (30) calendar days after approval of such federal license to the Town of Los Gatos for a permit in compliance with this chapter and shall not engage in business as a firearms dealer within Town limits unless and until a permit has been issued by the Town.

(c) The written application for a permit shall be submitted to the Director of Community Development along with copies for distribution to the Chief of Police, Town Manager and Town Attorney and executed by all applicants under the penalty of perjury on such form as may be prescribed by the Town, and which shall include all of the following:

(1) The applicant(s) name, including any aliases, prior names, "dbas," the names of any partnership including the identity of all of the partners of the partnership, the names of any corporation including the identity of all the officers of the corporation and principle shareholders, and any other business entity including the identity of the principles of the business entity.

(2) The applicant(s) residence address and addresses of any location where applicant has engaged in business for five (5) years immediately preceding the date of the application; the length of time at each address; a description of the nature of the business(es) conducted.

(3) The date, location, and nature of all criminal convictions of applicant(s), if any, in any jurisdiction in the United States.

(4) The names, ages, and addresses of all persons who will have access to or control of workplace firearms, firearms components, ammunition, and/or destructive devices, including but not limited to, the applicant's employees, agents and/or supervisors, if any.

(5) A certificate of eligibility from the California Department of Justice under the relevant section of the California Penal Code for each individual identified in subsection (4) above demonstrating that the person is not prohibited by state or federal law from possessing firearms or ammunition.

(6) The applicant's federal firearms license and California firearms dealer numbers.

(7) A recent passport-type photo of the applicant(s) and fingerprints.

(8) Proof of possessory interest in the property at which the business is proposed to be conducted, and the name and address of the owner of such real property.

(9) A floor plan and security plan for the building, to include plans and drawings indicating that the structure will comply with all requirements set forth in California Penal Code Section with respect to storage of firearms and ammunition and building construction; placement of security cameras; and such other security measures as may be deemed appropriate by local authorities as authorized in California Penal Code. The security plan shall provide for the installation of security cameras and retention of camera records for a period of at least sixty (60) days.

(10) The applicant's written agreement to indemnify, defend and hold harmless the Town, its officers, agents and employees from and against all claims, losses, costs, damages and liabilities of any kind pursuant to the operation of the business, including attorneys fees, arising in any manner out of the negligence or intentional or willful misconduct of all of the following: (i) the applicant; (ii) the applicant's officers, employees, agents and/or supervisors; and, (iii) if the business is a corporation, partnership or other entity, the officers, directors or partners.

(11) The application shall be accompanied by a non-refundable processing fee in such amount as established from time to time by resolution of the Town Council.

(12) The address of the proposed location for which the permit is required, together with the business name, if any.

(13) Certificate of insurance for general liability insurance in an amount not less than one million dollars ($1,000,000.00) for each incident of damage to property, injury, or death.

Upon receipt of the completed application (including all requested documents) and the fee as required in this article, the Director of Community Development and the Chief of Police shall each conduct an investigation as each deems appropriate to determine for the protection of the public safety whether a permit should be issued. The director or chief may require additional information of an application which is deemed necessary to complete the investigation.

(1) The Chief of Police shall determine, among other information deemed relevant, whether the applicant has ever been convicted of a felony or misdemeanor offense involving theft, dishonesty, violence or moral turpitude; and whether the possession or sale of firearms by the applicant would constitute a violation of state or federal law.

(2) The Director of Community Development shall determine whether the conduct of the business at the proposed location will be in compliance with zoning requirements and any other applicable rule, regulation or ordinance of the Town.

(3) Following the completion of the investigations described herein, the Director of Community Development and the Chief of Police shall each make a written recommendation whether the proposed permit is either recommended to be approved or rejected, subject to the provisions of this chapter, and the Town Manager shall receive and provide the recommendations to the Town Council for consideration at a public hearing.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

An application for a permit to conduct a business engaged in the sale of firearms, ammunition and/or destructive devices shall be denied based on any of the following grounds:

(1) A finding by the Chief of Police that the applicant is ineligible to receive a license from the state or federal government to engage in the sale of firearms, ammunition, and/or destructive devices, or is otherwise prohibited from possessing or transferring firearms.

(2) The applicant, officer, employee, or agent is under twenty-one (21) years of age.

(3) The applicant, officer, employee, or agent had a similar type of permit previously revoked or denied for good cause within the immediately preceding five-year period.

(4) The applicant, officer, employee, or agent has knowingly made a false or misleading statement of a material fact or omission of a material fact in the application for a permit.

(5) The applicant, officer, employee, or agent has been convicted of any of the following:

a. Any offense so as to disqualify applicant, officer, employee, or agent from owning or possessing a firearm under applicable federal, state, or local laws.

b. Any offense relating to the manufacture, sale, possession, use, or registration of any firearm, ammunition, and/or destructive device.

c. Any offense involving the unlawful use of force or violence upon the person of another.

d. Any offense involving theft, fraud, dishonesty, or deceit.

e. Any offense involving the manufacture, sale, possession or use of a controlled substance as defined by the California Health and Safety Code.

(6) The applicant, officer, employee, or agent is an unlawful user of a controlled substance as defined by the California Health and Safety Code.

(7) The applicant, officer, employee, or agent has been determined to be within a class of persons defined in Welfare and Institutions Code Sections to have a mental defect, been committed to a mental institution, or suffer from any psychological disturbance which would impair the applicant, officer, employee, or agent's fitness to be engaged in the sales of firearms, ammunition, and/or destructive devices.

(8) A determination by the Director of Community Development, the Planning Commission, and/or the Town Council following a public hearing that the use of the business at the proposed location would not be in compliance with all zoning requirements and other rules, regulations, ordinances and policies of the Town.

(9) Any other considerations which may be raised and examined through a public hearing.

(10) In no event shall a permit be issued for a business that engages in or is planning to engage in the manufacture or sales of destructive devices, ammunition for destructive devices, or armor piercing ammunition.

(Ord. No. 2217, § I(Exh. A), 8-5-13; Ord. No. 2320, § III, 9-7-21)

All applications for permits shall be required to be considered at a public hearing before the Town Council. At least ten (10) days before the hearing, the Town shall give notice by publication at least once in a newspaper of general circulation, published and circulated in the Town, or if there is none, by posting in at least three (3) public places in the Town.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

Any permit issued pursuant to the provisions of this chapter, shall be subject to the following conditions:

(1) Shall be effective for one (1) year from the date of issue.

(2) Shall be subject to conditions as may be imposed by the Town Council that are reasonably related to the purpose and intent of this chapter and public health, safety, and welfare.

(3) The permit or a copy of it shall be displayed on the premises where it can be seen by customers.

(4) The permitee, and its officers, employees, or agents shall comply with all federal and state firearms laws.

(5) All permits issued under the provisions of this chapter shall be effective for not more than one (1) year, and shall be renewable in the same manner provided for issuance of the initial permit, including the requirement of a public hearing.

(6) All permitees, its officers, employees, or agents shall protect firearms, ammunition, and/or destructive devices in the following manner:

a. All firearms shall be displayed in locked cabinets, secured rack, or a storage area so that access to firearms is controlled by the dealer or an employee to the exclusion of all others.

b. The permitee or its officer, employee, or agent shall be present at all times when a prospective buyer or seller is handling any firearm, ammunition, and/or destructive device prior to sale and delivery of the firearm, ammunition, and/or destructive device.

c. In no event shall a firearm be transferred or delivered with ammunition already loaded.

(7) Each employee who engages in the sale, lease, or transfer of firearms, ammunition, and/or destructive devices must obtain a certificate of eligibility issued by the California Department of Justice. A copy of the certificate of eligibility shall be provided to the Chief of Police prior to start of employment.

(8) Permitee, its officers, employees, or agents shall immediately notify the Chief of Police if there is a reason to believe that any firearm, ammunition, and/or destructive device has been lost or stolen.

(9) Maintain a valid Town business license.

(10) Maintain a valid insurance policy as described in subsection 14.130.025(c)(13) above.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

No permit issued under this chapter shall be transferable or assignable and any attempted transfer shall invalidate the permit.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

Any person or entity operating under a permit to engage in the sale of firearms, ammunition and/or destructive devices under the provisions of this chapter shall hold that business open for inspection by federal, state and local law enforcement during all hours of operation. The Chief of Police or designee may conduct periodic inspections of the business without notice. All records, documents, licenses, firearms, firearm components, ammunition and/or destructive devices shall be maintained in a manner and place accessible for inspection by federal, state and local law enforcement at all times.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

(a) Any permit issued under this chapter may be suspended or revoked pursuant to the processes set forth herein, and for any reason that would have justified a refusal of the permit originally, or by failure of the person or entity operating under any such permit to comply with the provisions of this chapter or any other provision of this Code, or any condition of such permit.

(b) The person or entity operating under the provisions of any such permit shall be given prompt notice of the intention to suspend or revoke the permit in the manner set forth in this section.

(c) Grounds for suspension or revocation of permit. Upon receipt of information or a complaint and reasonable cause to believe that grounds for a suspension or revocation of a permit exists, the Town Manager may suspend for a period of up to nine (9) months or revoke a permit, according to procedures set forth herein on the grounds set forth in subsection (a), above, and on any of the following grounds:

(1) The permitee, its officers, employees, or agents have operated or managed the firearms business in a manner which violates the firearms permit issued by the Town, any provision of this chapter, or other applicable Town Code provisions, state or federal law; or

(2) Has made a false or misleading statement or material omission of fact on the application for a permit, or for renewal of the permit, or in any supplementary materials submitted with the application.

(d) Procedure for revocation or suspension of permit:

(1) Notice to permitee. Whenever the Town has reasonable cause to believe that grounds for the suspension or revocation of a permit exist, the Town shall give the permitee written notice of the grounds for the proposed revocation or suspension of the permit, along with the date, time and place of a public hearing to be held before the Town Council on whether the permit should be suspended or revoked. The notice shall be served on the permitee personally at the most recent home or business address on file with the Town or by certified mail with the United States Postal Service.

(2) Hearing before Town Council. The hearing on the revocation or suspension of the permit shall be held before the Town Council not more than sixty (60) working days after the personal service of the to the permitee notice in the same manner of delivery as set forth in subsection (d)(1) above. At the hearing, the permitee shall have the right to appear and present evidence and arguments which are relevant to a determination of whether grounds for suspension or revocation of the permit exist.

(3) Decision of Town Council. Within fifteen (15) working days after the hearing, the Town Council shall issue a written decision which states whether the permit is suspended or revoked, the length of any suspension, and the factual basis for the decision. The decision of the Town Council shall be served on the permitee in the same manner of delivery as set forth in subsection (d)(1) above.

(4) Effective date of revocation or suspension. Any suspension or revocation of a permit shall become effective immediately upon the personal service of the written decision of the Town Council or delivered to the permitee in the same manner of delivery as set forth in subsection (d)(1) above.

(5) Surrender of suspended or revoked permit. Upon a written decision by the Town Council, which suspends or revokes a permit, the permit shall immediately be surrendered to the Town Manager. In the case of a suspension, Town Manager shall return the permit after the period of suspension has ended.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

(a) Any person or entity which has been granted a permit to engage in the sale of firearms, ammunition and/or destructive devices under this chapter shall be subject to and shall comply with the regulations and conditions as set forth in the relevant sections of this chapter and the California Penal Code.

(b) Any person engaging in the business of selling, transferring, or advertising for sale or transfer of any firearm, ammunition, and/or destructive device on the effective date of the ordinance from which this article derived, shall file an application for a permit under this chapter within sixty (60) calendar days after such effective date.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

(a) The violation of any provision contained in this chapter, or the violation of any condition of a permit issued hereunder, is hereby declared to be unlawful and shall constitute a misdemeanor, subject to the penalties as prescribed in section 1.10.040 of the Town Code, and the penalties as prescribed in the California Penal Code.

(b) The maximum fine or penalty for any violation of this article shall be one thousand dollars ($1,000.00), or a term of imprisonment in the county jail for a period not exceeding six (6) months.

(c) Except as otherwise provided, every such person may be charged with a separate offense for each and every day during any portion of which any violation is committed, continued, or permitted by such person, and shall be punishable accordingly.

(d) The enforcement of this chapter shall be in addition to any proceedings conducted for revocation or suspension of the permit and any civil action to seek enforcement of these provisions authorized by the Town Council.

(Ord. No. 2217, § I(Exh. A), 8-5-13)

If any section, subsection, sentence, clause, phrase, or portion of this article is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such decision shall not affect the validity of the remaining portion thereof.

(Ord. No. 2217, § I(Exh. A), 8-5-13)