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Do you want an AOW or C&R SBS/SBR in CA?

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  • ke6guj
    Moderator
    CGN Contributor - Lifetime
    • Nov 2003
    • 23725

    Do you want an AOW or C&R SBS/SBR in CA?

    Do you want an AOW or C&R SBS/SBR in CA?

    Well, if you look at the CA penal code, there are a couple exemptions to the AOW/SBS/SBR prohibitions in 12020. A couple of the 12020 exemptions do not require CA DOJ permission to acquire an AOW/SBS/SBR, just Federal NFA permission. If we follow the pertinent code (cleaned up to remove non-relevant code) regarding short barrel shotguns and rifles, we see the following:
    12001.5. Except as expressly provided in Section 12020, and solely in accordance with Section 12020, no person may manufacture, import into this state, keep for sale, offer for sale, give, lend, or possess any short-barreled shotgun or short-barreled rifle, as defined in Section 12020, and nothing else in this chapter shall be construed as authorizing the manufacture, importation into this state, keeping for sale, offering for sale, or giving, lending, or possession of any short-barreled shotgun or short-barreled rifle, as defined in Section 12020.
    12001.5 basically state that SBS/SBR are illegal unless allowed per 12020.
    12020. (a) Any person in this state who does any of the following is punishable by imprisonment in a county jail not exceeding one year or in the state prison:
    (1) Manufactures or causes to be manufactured, imports into the state, keeps for sale, or offers or exposes for sale, or who gives, lends, or possesses ..... any cane gun or wallet gun, … any firearm which is not immediately recognizable as a firearm, any camouflaging firearm container,… any short-barreled shotgun, any short-barreled rifle ..... any unconventional pistol
    12020a basically reiterates that AOW/SBS/SBR are illegal with the following exemptions.
    (b) Subdivision (a) does not apply to any of the following:
    (2) The manufacture, possession, transportation or sale of short-barreled shotguns or short-barreled rifles when authorized by the Department of Justice pursuant to Article 6 (commencing with Section 12095) of this chapter and not in violation of federal law.
    (7) Any firearm or ammunition that is a curio or relic as defined in Section 478.11 of Title 27 of the Code of Federal Regulations and which is in the possession of a person permitted to possess the items pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and the regulations issued pursuant thereto.
    (8) Any other weapon as defined in subsection (e) of Section 5845 of Title 26 of the United States Code and which is in the possession of a person permitted to possess the weapons pursuant to the federal Gun Control Act of 1968 (Public Law 90-618), as amended, and the regulations issued pursuant thereto. …. The exemption provided in this subdivision does not apply to pen guns.
    12020b lists exemptions to the prohibitions in 12001.5 and 12020a.

    12020b2 allows possession if you get a permit from the CA DOJ per 12095.
    12020b7 allows possession if the firearm is a C&R SBS/SBR as defined by the NFA and is properly registered per the NFA.
    12020b8 allows possession if the firearm is an AOW (with the exception of pen guns) as defined by the NFA and is properly registered per the NFA.

    ARTICLE 6. PERMITS
    12095. (a) If it finds that it does not endanger the public safety, the Department of Justice may issue permits initially valid for a period of one year, and renewable annually thereafter, for the manufacture, possession, transportation, or sale of short-barreled shotguns or short-barreled rifles upon a showing that good cause exists for the issuance thereof to the applicant for the permit. No permit shall be issued to a person who is under 18 years of age.
    (b) Good cause, for the purposes of this section, shall be limited to only the following:
    (1) The permit is sought for the manufacture, possession, or use with blank cartridges, of a short-barreled rifle or short-barreled shotgun, solely as props for a motion picture, television, or video production or entertainment event.
    (2) The permit is sought for the manufacture of, exposing for sale, keeping for sale, sale of, importation or lending of short-barreled rifles or short-barreled shotguns to the entities listed in paragraph (1) of subdivision (b) of Section 12020 by persons who are licensed as dealers or manufacturers under the provisions of Chapter 53 (commencing with Section 5801) of Title 26 of the United States Code, as amended, and the regulations issued pursuant thereto.
    This is the code pertaining to DOJ-issued permits, which, as long as we comply with 12020b7/8, we are exempted from. So, if we are exempt ourselves from 12095 by complying with 12020b7/8, we still need comply with the NFA. We do that by submitting in duplicate, 2 sets of the NFA Form 1 or Form 4 along with 2 sets of fingerprints and photos. You will also need to pay the transfer fee for the tax stamp. The stamp costs $200 for any Form 1 (application to make an NFA weapon such as an AOW, SBS, or SBR) or a Form 4 (application to transfer an existing C&R SBS or SBR). An AOW on a Form 4 transfers for $5 instead of $200.

    Part of the process is to get your CLEO to sign-off on your application. The CLEO is the Chief Law Enforcement Officer of your area, usually your Sheriff or Chief of Police. Other people are also acceptable to do signoffs per the ATF, such as the District Attorney or Judges. If the CLEO is unwilling to sign-off, which they can refuse to do for any reason, there are other ways to get an approved Form 1/4 without a CLEO sign-off.

    Those ways would include submitting the Form1/4 using a Corporation or Trust. As a legal entity, they are not required to get a CLEO sign-off or submit fingerprints or photos. When you submit your Form 1/4 application, you will need to submit your Corp/Trust documents to prove that it is a legal entity.

    The ATF will do a background check on you and if you pass, which if you can buy a regular gun, you should, they will mark the Form 1/4 approved, retain one of the Forms in the ATF's files, and attach a cancelled tax stamp to the other Form. That Form with the cancelled tax stamp will be returned to you as your "permission slip" from the ATF showing that you are legal.

    There may be a couple minor points I missed along the way, but the overall procedure is laid out.

    Now that we have the legal requirements laid out, we can get into the fun stuff. What can we do with this info? Well, once we know what we want, we either build our own 12020b7/8-exempt NFA firearm on a Form 1, or find a local Class 3 dealer that is willing to work with us to transfer the 12020b7/8-exempt firearm on a Form 4 to us.

    Under 12020b8, we can build/buy an AOW, which are weapons that don’t really fall into the pistol, rifle, or shotgun mold. The most common example would be the short-barrel shotgun-type weapons that don't have a shoulder-stock and have never had a shoulder-stock. An Example would be the Serbu Super-Shorty. Some Combo guns with a shotgun and rifle barrels less than 18" are AOW.
    Pen guns fall are AOW, but they don't fall under the 12020b8 exemption. They are specifically excluded from the 12020b8 exemption. But other types of gadget guns like cane/crutch/flashlight guns should be exempt.

    Under 12020b7, if we want a SBS or SBR, it needs to be a curio & relic as defined by the ATF. A C&R is defined as:
    To be recognized by ATF as a C&R firearm, a firearm must fall into at least one of the following three categories:
    1. Firearms which were manufactured at least 50 years prior to the current date, but not including replicas thereof;
    2. Firearms which are certified by the curator of a municipal, State, or Federal museum which exhibits firearms to be curios or relics of museum interest;
    3. Any other firearms which derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event. Proof of qualification of a particular firearm under this category may be established by evidence of present value and evidence that like firearms are not available except as collector's items, or that the value of like firearms available in ordinary commercial channels is substantially less.
    If you find an existing C&R SBS/SBR, you can transfer it on a Form4.

    For CA and Michigan (has a similar law requiring C&R SBS/SBR), The ATF has approved the making of an SBS/SBR on a Form 1 out of existing C&R firearms.seems that this method is no longer acceptable to ATF.

    These exemptions only apply to AOWs and C&R SBS/SBR. There are no C&R exemptions for Machineguns, DDs, or AWs. There is a C&R exemption for 50BMG rifles. CA’s DD rules start at .60”, so if you wanted a DD between .51” and .60”, you would only need to get ATF approval, not CA DOJ.

    The ATF will not approve any transfer that would violate state law.


    AOW-legal hosts include Mossberg Cruiser PG-only shotguns or Remington 870 model 24823. Don't know of other modern shotguns sold with PG-only. New AOW option is a fixed-mag pistol build like a AK, AR, or HK51 with a Vertical Forward Grip. With a fixed-mag, it is not an AW and you can get an AOW Form 1 to put a VFG on it.

    CA NFA trust atty.

    possible ATF change on C&R SBS/SBR Form 1

    List of public-friendly CA NFA dealers willing to sell to the public
    Last edited by ke6guj; 11-10-2011, 6:30 PM.
    Jack



    Do you want an AOW or C&R SBS/SBR in CA?

    No posts of mine are to be construed as legal advice, which can only be given by a lawyer.
  • #2
    Hopi
    Calguns Addict
    • Oct 2005
    • 7700

    I don't believe there is a C&R requirement, the info is under "(e) of Section 5845 of Title 26 of the United States Code".....Am i wrong?

    (e) of Section 5845 of Title 26 of the United States Code reads:

    The term “any other weapon” means any weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, a pistol or revolver having a barrel with a smooth bore designed or redesigned to fire a fixed shotgun shell, weapons with combination shotgun and rifle barrels 12 inches or more, less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, and shall include any such weapon which may be readily restored to fire. Such term shall not include a pistol or a revolver having a rifled bore, or rifled bores, or weapons designed, made, or intended to be fired from the shoulder and not capable of firing fixed ammunition.
    Last edited by Hopi; 01-16-2008, 1:13 PM.

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    • #3
      DrjonesUSA
      Veteran Member
      • Dec 2005
      • 4680

      Very interesting.

      Does an LLC count as a corporation/legal entity in the eyes of the storm troopers?

      Comment

      • #4
        Hopi
        Calguns Addict
        • Oct 2005
        • 7700

        Originally posted by DrjonesUSA
        Very interesting.

        Does an LLC count as a corporation/legal entity in the eyes of the storm troopers?
        Yes, but my question is whether or not a new and separate entity (vs. an established LLC) would be favorable if established solely for the ownership of these. Would there be any advantage to incorporate in NV?

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        • #5
          ke6guj
          Moderator
          CGN Contributor - Lifetime
          • Nov 2003
          • 23725

          Originally posted by Hopi
          I don't believe there is a C&R requirement, the info is under "(e) of Section 5845 of Title 26 of the United States Code".....Am i wrong?
          The C&R requirement is if you want a SBS or SBR. There is no C&R requirement for an AOW.
          Jack



          Do you want an AOW or C&R SBS/SBR in CA?

          No posts of mine are to be construed as legal advice, which can only be given by a lawyer.

          Comment

          • #6
            Hopi
            Calguns Addict
            • Oct 2005
            • 7700

            Originally posted by ke6guj
            The C&R requirement is if you want a SBS or SBR. There is no C&R requirement for an AOW.
            Ahhh, yes. I have been tracking the AOW thing, i had prematurely ruled out the SBR/SBS weapons. So for SBRs, we could hypothetically use one of our C&R rifles, submit Form 1, and upon receipt of the cancelled tax stamp, cut our barrel down?

            Comment

            • #7
              ke6guj
              Moderator
              CGN Contributor - Lifetime
              • Nov 2003
              • 23725

              Originally posted by Hopi
              Yes, but my question is whether or not a new and separate entity (vs. an established LLC) would be favorable if established solely for the ownership of these. Would there be any advantage to incorporate in NV?
              Those would be questions for your lawyer. For instance, if creating a new LLC for just your NFA stuff would be a good idea to keep those assets separate from the exisitng LLC.

              Incorporating in NV would give you access to non-CA NFA stuff, but those items would have be kept out of CA. You'd also have to have a registered agent in NV, and maybe register in CA as a foreign corp, I think.

              A CA trust is easy to do and meets NFA requirements. You could use a lawyer to draft one up or use a program like Quicken Willmaker to do it. A lot of people have done the willmaker route, so much that the NFA now has a lawyer vet the trusts to make sure they are valid. If I was in another state where full-auto was legal and I had the $$$$$ to buy one, I'd probably spend the $$$ for a lawyer to draft one up. But if the lawyer fees are more than the cost of the AOW/SBS/SBR, willmaker should be good enough.

              The Class 3 section of ar15.com has a lot of info on corps and trusts.
              Jack



              Do you want an AOW or C&R SBS/SBR in CA?

              No posts of mine are to be construed as legal advice, which can only be given by a lawyer.

              Comment

              • #8
                ke6guj
                Moderator
                CGN Contributor - Lifetime
                • Nov 2003
                • 23725

                Originally posted by Hopi
                Ahhh, yes. I have been tracking the AOW thing, i had prematurely ruled out the SBR/SBS weapons. So for SBRs, we could hypothetically use one of our C&R rifles, submit Form 1, and upon receipt of the cancelled tax stamp, cut our barrel down?
                The ATF has approved that method in CA and in Michigan. Michigan has a similar "must be C&R" law.
                Jack



                Do you want an AOW or C&R SBS/SBR in CA?

                No posts of mine are to be construed as legal advice, which can only be given by a lawyer.

                Comment

                • #9
                  whomper
                  Member
                  • Nov 2006
                  • 255

                  Alot of folks, in other states, are setting up trusts and placing NFA items under them. I do not know what it takes to set up a trust, but it might be easier than a coprporation or LLC.

                  ETA:
                  ke6guj beat me to it.
                  Last edited by whomper; 01-16-2008, 11:02 PM.
                  God Bless American Ingenuity and Bureaucratic Incompetence.
                  http://www.woundedwarriorproject.org

                  Comment

                  • #10
                    Florida Gun Trust Lawyer
                    Junior Member
                    • Jan 2008
                    • 6

                    Gun Trusts

                    I have written many articles on the advantages and differences in using a trust compared to other business entities such as a Corporation or LLC. Each has its advantages and disadvantages.

                    Primarily the reason people use trusts is because of the ability to maintain them with little or no ongoing yearly costs associated as compared to Corporations or LLC's.

                    Each state has its own specific issues to deal with. If you need help contacting a Gun trust lawyer or know of one in CA please let me know and I will see what I can do to help, put you in touch with someone who can help you.
                    --
                    NFA Gun Trust Lawyer, David Goldman

                    Gun Trust Articles for all 50 States
                    Florida Estate Planning Blog

                    Comment

                    • #11
                      Hopi
                      Calguns Addict
                      • Oct 2005
                      • 7700

                      Originally posted by Florida Gun Trust Lawyer
                      I have written many articles on the advantages and differences in using a trust compared to other business entities such as a Corporation or LLC. Each has its advantages and disadvantages.

                      Primarily the reason people use trusts is because of the ability to maintain them with little or no ongoing yearly costs associated as compared to Corporations or LLC's.

                      Each state has its own specific issues to deal with. If you need help contacting a Gun trust lawyer or know of one in CA please let me know and I will see what I can do to help, put you in touch with someone who can help you.
                      Welcome to the forum and thanks for the help!!

                      Comment

                      • #12
                        BaronW
                        Senior Member
                        • Apr 2007
                        • 989

                        So... someone could buy a C&R break-action shotgun, pay the $200 tax stamp, and then take a hacksaw to it, or would it no longer be an exempt C&R because it was just re manufactured as an SBS?
                        I am not a lawyer, the above does not constitute legal advice.

                        WTB: Savage 99 SN#507612 (buying back grandpa's rifle)

                        Comment

                        • #13
                          ke6guj
                          Moderator
                          CGN Contributor - Lifetime
                          • Nov 2003
                          • 23725

                          Originally posted by BaronW
                          So... someone could buy a C&R break-action shotgun, pay the $200 tax stamp, and then take a hacksaw to it,
                          The ATF has approved that method in CA and in Michigan. Michigan has a similar "must be C&R" law.
                          Jack



                          Do you want an AOW or C&R SBS/SBR in CA?

                          No posts of mine are to be construed as legal advice, which can only be given by a lawyer.

                          Comment

                          • #14
                            shonc99
                            Senior Member
                            • Jun 2006
                            • 552

                            Question about C&R firearms:

                            How does a firearm become "certified" by way of #3? Are there any examples where a firearm is C&R eligible and ISN'T more than 50 years old?

                            3. Any other firearms which derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event. Proof of qualification of a particular firearm under this category may be established by evidence of present value and evidence that like firearms are not available except as collector's items, or that the value of like firearms available in ordinary commercial channels is substantially less.
                            Originally posted by randy
                            I move slow but I make up for it by shooting poorly.
                            Originally posted by Walter Sobchak
                            "Saturday, Donny, is Shabbos, the Jewish day of rest. That means that I don't work, I don't get in a car, I don't fn'g ride in a car, I don't pick up the phone, I don't turn on the oven, and I sure as sh[t DON"T FN'G ROLL!!"

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                            • #15
                              ar15barrels
                              I need a LIFE!!
                              • Jan 2006
                              • 56990

                              Very interesting...

                              I did not realize there was no specific rule against AOW's.
                              Randall Rausch

                              AR work: www.ar15barrels.com
                              Bolt actions: www.700barrels.com
                              Foreign Semi Autos: www.akbarrels.com
                              Barrel, sight and trigger work on most pistols and shotguns.
                              Most work performed while-you-wait.

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