Did You Know... Second Hand Dealers License

[Nardo1895]

I have posted a couple of times about my ongoing efforts to consign some firearms. I have my second hand license and have entered the first batch into AFS as acquisitions.

I called my DOJ rep (kudos to her, she has always been very helpful) about an AFS issue I had. That led to a discussion of Second Hand Dealers licenses. She told me that even though DOJ issues the State SHD license, it doesn't go to the firearms unit. The dealer needs to send it to the firearms unit so they can activate the "consignment" button within AFS. Without the consignment button active, everything summited goes in as a true dealer acquisition. The consequences of that is that off roster handguns can no longer be sold as PPTs. She did give me some advice on how to correct any that I inadvertently submitted as dealer acquisitions and not consignments. But first she has to get me entered in the system once I send her my SHD license.

I'm not posting this to rag on DOJ, and especially not on my rep. She saved me a lot of heartache down the road. However, this information is not readily available so I assume there may be others out there that could find themselves in the same situation.

I assume you old hats out there may already know this but it was certainly news to me. Its almost a Catch-22; without a SHD license on file with the firearms unit there is no "Consignment" button in AFS, but there is no way to know there should be a "Consignment" button in AFS unless someone tells you. SMH.

[ugimports]

Stupid Question...

Other than loan/pawn or consignment, when would you use the Acquisition Button? I thought only those with second hand dealer's licenses could even use that button/link.

It's quite confusing that only consignment is missing without second SHD license. Does this mean without that license an FFL can do acquisitions if it's not consignment? I thought that required SHD too so I've not been doing those when offered by customers. I always refer them to other retail shops.

[Nardo1895]

I wish there was a guidebook for this stuff.

This is what I think, not what I know. I think that if a dealer buys a used firearm for resale, they are supposed to log it as an acquisition in FAS and wait 30 days before putting it up for sale (or at least before it actually sells). You don't need a SHD license to do this and the acquisition page is available to any Dealer with access to DROS.

If you are not buying the used firearm for resale but are consigning it for the owner, you have to have a SHD license and you have to use the "Consign" button in FAS that doesn't show up until the firearms unit has a copy of your SHD license. This is what I'm told by DOJ, I have not actually seen the consignment button yet. I plan to send in my SHD license today so I should know for sure soon.

I could be wrong on the first paragraph. I'm curious what other Dealers do/think.

[Nardo1895]

While on the topic, do any of you have a consignment agreement you'd be willing to share with me?

I started down this road just to help a lady with her husband's estate but its sort of expanded beyond that so I need something more official than a handshake.

Thanks.

[ugimports]

While on the topic, do any of you have a consignment agreement you'd be willing to share with me?

I started down this road just to help a lady with her husband's estate but its sort of expanded beyond that so I need something more official than a handshake.

Thanks.

Send me an email sales@ugimports.com - i have a template I used when I used to have my SHD a few years back...i got rid of mine (pre DES days) because I didn't consign enough to pay for the license.

[Tyke8319]

I wish there was a guidebook for this stuff..

This is the problem with the whole bloody system. It's all (virtually) by guess and by golly!

[0321 U.S.M.C]

I wish there was a guidebook for this stuff.

This is what I think, not what I know. I think that if a dealer buys a used firearm for resale, they are supposed to log it as an acquisition in FAS and wait 30 days before putting it up for sale (or at least before it actually sells). You don't need a SHD license to do this and the acquisition page is available to any Dealer with access to DROS.

If you are not buying the used firearm for resale but are consigning it for the owner, you have to have a SHD license and you have to use the "Consign" button in FAS that doesn't show up until the firearms unit has a copy of your SHD license. This is what I'm told by DOJ, I have not actually seen the consignment button yet. I plan to send in my SHD license today so I should know for sure soon.

I could be wrong on the first paragraph. I'm curious what other Dealers do/think.

This is what I was told by a DOJ rep last year, second hand lic. Only needed for consignment.

[ShepherdFirearms]

I spoke to DES they also said only for consignment or pawn hence why we have access to the acquisition screen, I attempted to call my DOJ rep and the voicemail was full...

[Nardo1895]

From my DOJ Rep:

As a licensed dealer in California, you are able to make acquisition/buys as an extension of the licensing agreement. This requires no additional license. A dealer is required to have a SHD license when conducting consignments, pawns, pawn redemptions and trades. This is part of the business and professional code 21640. All acquisitions and consignments are required to be held for 30 days. A consignment and an acquisition are different transactions.

[taperxz]

[Nardo1895]

The second hand dealers license is issued through your local LE agency. They have to send it in to DOJ. At one of my stores, local LE just renews it and at the other location they charge me $10.

I want to live in your County. It cost me $700 to get a SHD license. About half that to the County Sheriff and half to CA DOJ. Renewal is about half that amount.

[ugimports]

I want to live in your County. It cost me $700 to get a SHD license. About half that to the County Sheriff and half to CA DOJ. Renewal is about half that amount.

Wasn't that expensive for me (about 300 last I recall), but still not cheap enough for me to keep it. We got rid of it years ago because we never made enough in consignment sales to pay for the permit. We typically do 20% consignment fee and were only consigning about $800 per year on average.. after the first couple years we dumped it and just refer folks to the B&M shops.

[taperxz]

I want to live in your County. It cost me $700 to get a SHD license. About half that to the County Sheriff and half to CA DOJ. Renewal is about half that amount.

Ya, the state renewal fee is separate from the local fee.

[Nardo1895]

I think its about $300 to renew and its a two year license. I should not have let my first one expire. I wasn't doing any consignments at the time. We'll see if it pays. I've turned down a number of consignments due to lack of a SHD license. Its a lot of work, whole lot easier to sell new guns - if I could find any to sell :-)