Acquisition Submittals

[Nardo1895]

In a previous post I asked about how to handle consignments. A couple of you folks indicated that once I submitted the acquisitions in DROS I needed to get the seller to sign and initial. Its been a number of years since I did a DROS acquisition and I didn't remember having to do that.

Over the weekend I did the acquisition submittals and now see that signatures and thumprints are required on the acquisition form. Has that been a longstanding requirement?

For these consignments I can get the seller to sign and print, but what happens if I'm out of town or out of state and I buy a used firearm from a private seller for resale purposes? Don't those also need to be submitted as acquisitions before resale? If so, there is no way I can get a signature and thumpprint on the acquisition form. In the past I just got a copy of the sellers ID. Has that changed or was I doing it wrong? Maybe consignments are different than direct purchases?

[acespawnshop]

Yes, Longstanding requirement. Out of state no acquisition in DES. If you're in state you should only be buying from the location your 2nd hand dealer license is at. Now, if they ship it or something I suppose that is different.

[Nardo1895]

Great, thanks. I've only done it out of state but assumed I could do the same thing in-state if the occasion arose.

[Nardo1895]

If you're in state you should only be buying from the location your 2nd hand dealer license is at.

I've been thinking about this and would like to explore further.

Speaking only about purchases of used firearms, not consignments; if this is correct it would mean that I can't, for example, go to a gunshow within CA, even in my home town, and buy a used firearm from a private party. Is that correct? That doesn't really make sense. I get the idea that I can't use my second hand license except at my place of business, but you don't need a second hand license to buy or sell a used firearm, only to consign one. Just having a Type 1 FFL and being a CFD is sufficient to buy and sell used firearms. I know that my FFL/CFD only allows me to sell at my place of business but did not think that applied to buying. Maybe that is a bad assumption.

I am under the impression that if I buy (not consign) a used firearm, I still have to enter it as an acquisition in DES and wait 30 days before re-selling.

Any clarity on these issues?

Thanks

[acespawnshop]

Sorry gun shows are a different animal as they are allowed by ATF to buy and sell. You're right about that.

Its my opinion that you should have the 2nd hand dealer license if you are going to buy from the public, even if you're just buying a firearm, its my contention that you need that 2nd hand license when you are buying for the intent of resale. There's even a tab in the DES for running it as a buy. When you click that buy tab it prompts you to click the box that says you're a licensed pawnbroker or secondhand dealer. So from my point of view you need the 2nd hand for buys as well. Again if your customers are shipping them to you and you are buying them then maybe thats a grey area. I dunno. Read more in the financial code regarding pawn and secondhand dealer licenses.

[Nardo1895]

Sorry gun shows are a different animal as they are allowed by ATF to buy and sell. You're right about that.

So do those need to be entered in DES as acquisitions, and if so, how do you deal with the signature and thumbprint requirement?

I recall a previous thread on the topic of whether or not you need a second hand license to buy and sell used firearms. When my second hand license was up for renewal the first time I called my DOJ rep about that issue and was told I didn't need it for buying and selling used firearms, only to consign. I wasn't consigning at the time so I let the license lapse. Bad on me as I had to reapply like it was a new license and pay the application fees plus the license fees.

The large internet firearms auction guys in Simi Valley advertise that they will come to you if you have a group of firearms to sell. I'm pretty sure they sell those on a consignment basis. I wonder how they overcome the "place of business" restrictions.

[acespawnshop]

Not sure. And I've never dealt with "going someplace else" to do a firearms transfer. I dont have the need to, that being said you might be right about not needing it for the buying and selling part. However did you clarify that you were buying from the public for the intent of resale? Not sure how you can do the gunshow and DES acquisition, small printer perhaps? I've never thought about it since I've never wanted to do that.

[Nardo1895]

My acquisitions have been in DES for 30+ days now. I have not received anything from the state. There is nothing on the acquisition form that indicates it was approved or denied.

I assume "no news is good news" and I'm clear now to go ahead and sell them?

[acespawnshop]

That’s not how it works. You’ll never get anything from them. They just check in an audit that whatever you bought wasn’t disposed of for 30 days.

[Nardo1895]

Thanks Aces, that's what I suspected. I assume they do contact you if there is an issue with an acquisition?

[acespawnshop]

I suppose. But I’ve never had it happen. I’ve only had a situation where a customer pawned a handgun then 4 months later redeemed it and it hit as stolen from Arizona. Dude allegedly bought it FTF in AZ and when he went to redeem it then it popped hot. But not until then.

I also had one where a lady pawned 3 old pistols. She redeemed all at the same time. 2 went to approved. One delay. We had a sheriff show up about the one. Asking about it. Said it was reported stolen 40 years prior. Lady got all the guns from dad way back when. So long story she redeemed the two other and we waited on the 3rd. Then sheriff called like 2 weeks later saying they were not going to pursue it further and since records were so old they didn’t care and she took it home. They were Colt revolvers.

So it’s been my experience that the DOJ does little to nothing with acquisitions and seems to only hit on redeems or the subsequent DROS.

[Nardo1895]

Interesting. Would sure be nice if they let you know BEFORE you went through the redeem/DROS process. Oh well...

You got me thinking. If I sold these out of state would I even have to go through the acquisition process? These are mostly headed to Gunbroker auctions so I'd imagine most will go out of state. Its moot at this point but got me wondering for future acquisitions. Its not a big deal to submit and wait but if they don't even check them it seems like its not a "value added" process.

Thanks again.

[acespawnshop]

Yes, you have to do FDAS regardless of how you choose to dispose of them. Hell all our buys and foreclosed pawns get sent to our cousin store in Havasu.