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  • Tminor
    Junior Member
    • Jul 2009
    • 70

    FFL/Second Hand Dealer

    Does anyone have experience with second hand dealer licenses in addition to their FFL? I believe my local sheriff is confusing the application process with that of a pawn broker and they want me to carry a 20k surety bond. DOJ says the bond is not required so I assume this is a county thing? I would know, but the PIO won't call me back. Can anyone comment on their experience.
    Home based FFL01 in San Jose.
    Internet transfers, PTP, special orders.
  • #2
    PolishMike
    Calguns Addict
    • Nov 2007
    • 6034

    That application is insanely difficult for people to manage. There is no bond required by the state for second hand dealers. Only pawnbrokers and it's 50k now I believe
    Artist formally known as CEO of Tracy Rifle and Pistol

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    • #3
      Colonel Monk
      Member
      • Feb 2011
      • 366

      Polish Mike

      which application do you mean?

      I've been wondering the same regarding the FFL I work for - we do mainly special order at the moment, but if I may hijack for a minute:

      If you buy a used weapon from someone on trade-in and resell to another customer as a "used" weapon is that considered pawnbroking?

      What about selling on consignment?

      Thanks,

      CM
      CM

      Comment

      • #4
        PolishMike
        Calguns Addict
        • Nov 2007
        • 6034

        Originally posted by Colonel Monk
        Polish Mike

        which application do you mean?

        I've been wondering the same regarding the FFL I work for - we do mainly special order at the moment, but if I may hijack for a minute:

        If you buy a used weapon from someone on trade-in and resell to another customer as a "used" weapon is that considered pawnbroking?

        What about selling on consignment?

        Thanks,

        CM
        It is not pawnbroking but you do need a second hand dealers license. The application is available here - http://www.ci.santa-ana.ca.us/pd/doc...erhandbook.pdf
        You need to fill that out a send it to your local PD or SO. It says right on the application that the bond is only applicable to pawnbrokers, not second hand dealers.

        You also have to now be aware of a whole new set of laws and regs that apply to second hand dealers licenses. You have to hold the guns for 30 days before they leave. You have to set up an FDAS account to take in guns. If you put a gun on consignment and the owner wants to get it back they have to do a DROS with a 10 day wait and all other requirements. You also have to maintain the file of FDAS records.
        Artist formally known as CEO of Tracy Rifle and Pistol

        Comment

        • #5
          Tminor
          Junior Member
          • Jul 2009
          • 70

          CM

          The way I understand it, if you are buying firearms from the public you must log the firearms into the FDAS which replaced reporting the purchases with your jurisdictional LEO. To have access to the FDAS you must be a second hand dealer or pawnbroker. Then the firearm must be held for 30 days to see if it pops up stolen. The application is the same form for each and I'm not sure how the are processed. I have a copy of the guidelines I can email you in a pdf if you like.
          Home based FFL01 in San Jose.
          Internet transfers, PTP, special orders.

          Comment

          • #6
            PolishMike
            Calguns Addict
            • Nov 2007
            • 6034

            Originally posted by Tminor
            CM

            The way I understand it, if you are buying firearms from the public you must log the firearms into the FDAS which replaced reporting the purchases with your jurisdictional LEO. To have access to the FDAS you must be a second hand dealer or pawnbroker. Then the firearm must be held for 30 days to see if it pops up stolen. The application is the same form for each and I'm not sure how the are processed. I have a copy of the guidelines I can email you in a pdf if you like.
            The local police department has to sign off on the application then it goes to CA DOJ. They then send the actual permit to the PD which has to sign it and send it to you.

            Tracy PD does not do a lot of these so it was a bit of a learning experience but wasn't too bad. FDAS definitely beats the paper pawnslips.
            Artist formally known as CEO of Tracy Rifle and Pistol

            Comment

            • #7
              Colonel Monk
              Member
              • Feb 2011
              • 366

              Hey Guys thanks for the heads up. We've only been doing PPT but many times would like to offer people credit on the guns they no longer want towards something they do want. I had been wondering if a "pawnbroker" FFL was required, but that's not the business we want. We are about to convert the FFL01 to an 07 and having this ability would really help us.

              It's a bit of a PITA having to hang onto them for 30 days but whatever. Just another flaming hoop, we are getting pretty good at it.

              CM
              CM

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