CA SB1038

Requires firearm owners to report loss or theft to local law enforcement within 48 hours (reduced from 5 days) of discovering the firearm was stolen or lost.

Requires the Department of Justice to inspect the 25 firearm dealer locations identified as the source of the highest number of illegally possessed, crime-used, or crime-suspected firearms within the previous year.

Requires firearm dealers to annually certify their complete inventory (including make, model, and serial number) to the Department of Justice by December 31 each year, with civil penalties of $3,000 per day for first violation, $5,000 for second, and $10,000 for third and subsequent violations.

Eliminates exceptions to firearm acquisition reporting requirements for dealers acquiring firearms from wholesalers, manufacturers, importers, and out-of-state licensees, effective January 1, 2027.

Updates firearm dealer warning signs to specify the 48-hour reporting requirement for lost or stolen firearms.