Cal. Health and Safety Code - HSC § 12540. Section 12540.
The provisions of this part shall not apply to any of the following:
(a)
Explosives regulated under Part 1 (commencing with Section 12000) of Division 11.
(b)
Arms and handguns defined as firearms by the Federal Gun Control Act of 1968, as well as such devices and weapons classified under Section 16460 of the Penal Code or any provision listed in Section 16590 of the Penal Code, including blank cartridge pistols of the type used at sporting events or theatrical productions.
(c)
Research or experiments with rockets or missiles or the production or transportation of rockets or
missiles by the Department of Defense of the United States, or by any agency or organization acting pursuant to a contract with the Department of Defense for the development and production of rockets or missiles.
(d)
Paper caps which contain less than 0.25 grain of pyrotechnic composition per unit load.