Florida FFL & Florida Statute 538 (Secondhand dealer)

[Grasshopper]

Hi All,

Forgive me.  I'm not the sharpest pencil in the box by any means.  Not a lawyer.  Just trying to figure this one out:

Part of operating an FFL is to comply with state and local laws.  Does anyone know of how a gunshop in Florida does not fit under FS 538?

This came up with a local BATF examiner here in Florida.  The FFL in Florida was planning on doing some consignment and buying/selling of used firearms as well as new firearms.  Florida has this statute, 538, that defines a Secondhand dealer as:

“Secondhand dealer” means any person, corporation, or other business organization or entity which is not a secondary metals recycler subject to part II and which is engaged in the business of purchasing, consigning, or trading secondhand goods."

The Florida Statute goes on to enumerate the requirements for registration, documentation, and reporting that goes with being a secondhand dealer.  It includes photos of the firearm(s), description, number of barrels, caliber, color, manufacturer (you get the just).  It specifically indicates "sporting goods with a permanent S/N".

The statute also indicates that within 24 hours the information is to be provided to the appropriate law enforcement agency.  I've checked with local law enforcement and they know nothing about this Florida Statute.

In short, does a FFL in Florida have to comply with FS 538 or is there an exemption that I'm missing?

This one makes my head hurt,

Grasshopper

ps.  Showing my age.  I was offended by the following quote when I was an idealistic teenager.  Maybe not so much as I mature:  Frank Zappa: "The United States is a nation of laws, badly written and randomly enforced."

Edited March 25, 2024 by Grasshopper

[riflejunky]

Sounds like the rules for a pawn broker.

 

 

[Grasshopper]

Hi riflejunky,

It certainly does sound like a pawn broker.  The weird thing is on the Florida department of revenue application it states:

"Every person or business entity must register with the
Florida Department of Revenue as a sales and use
tax dealer and as a secondhand dealer or secondary
metals recycler before engaging in business in Florida."

Later on the same application it is written:

"A business that engages in “pawnbroker” activities
or title loan transactions is not required to register
as a secondhand dealer."

The biggest problem is the local PD are to supply a transaction form.  You ask for the local transaction form (that must be turned into the PD) and you get a blank stare.

Grasshopper

[Got Uzi]

That one makes my head spin.  I'm not a lawyer (l leave that to the wife as she is one here in ohio) but I can't see how that would have an effect on FFL's as its day to day business.  Once the FFL takes an item in on consignment, it is technically theirs as the consigner would have to fill out a 4473 to get it back if the item didn't sell or if he/she/it did not want to sell it.  Thats my take on it for what it is worth.

[Grasshopper]

Hi Got Uzi,

I appreciate the thoughts.  Yes.  My head still hurts.

I'm surprised that FFL's are not exempt from FS 538 as the A&D books and other FFL responsibilities make much of the reporting in FS 538 redundant.

If the FFL only sold new firearms and never purchased any used firearms (or took them in on consignment), BATF's requirement to "comply with local and state laws" would only consist of registering as a Secondhand Dealer ($6/yr per location) plus a background investigation).

Where it becomes onerous is being compliant with the record keeping and PD reporting requirements of FS 538.

I'm really hoping that the interpretation of the law is incorrect.  The problem becomes convincing BATF that FS 538 does not apply.

Thanks,

Grasshopper

 

[Got Uzi]

Here we are trying to play within the bounds of the rules and do it right, meanwhile people who blatantly break the rules get away with it then want to cry foul when they get called out on it.  Makes one wonder if being an FFL/SOT is worth it anymore?  Honestly I hardly sell to private parties anymore.  I deal mainly with build work, special order, or suppressors.  Doing the whole retail/buy/sell isn't worth it anymore.

[riflejunky]

16 hours ago, Grasshopper said:

Hi riflejunky,

It certainly does sound like a pawn broker.  The weird thing is on the Florida department of revenue application it states:

"Every person or business entity must register with the
Florida Department of Revenue as a sales and use
tax dealer and as a secondhand dealer or secondary
metals recycler before engaging in business in Florida."

Later on the same application it is written:

"A business that engages in “pawnbroker” activities
or title loan transactions is not required to register
as a secondhand dealer."

The biggest problem is the local PD are to supply a transaction form.  You ask for the local transaction form (that must be turned into the PD) and you get a blank stare.

Grasshopper

We are not in Florida but are required to report all used merchandise bought or pawned weekly to the local police. They check the list against stolen property reports. Then we have to hold the merchandise before it can be sold.

My guess is that Florida has more stringent rules for pawnbrokers with a separate program hence the reason they are not required to participate in the scheme you describe.

Sounds like from your telling that this is widely ignored otherwise the local police would be more helpful.