Quoted:
Most of the good guy FFL's were the home dealers, but most of the worst FFL rule breakers were your home dealers. So in typical Federal fashion, throw the baby out with the bathwater. Many of the municipalities in Colorado forbid FFL's dealing from homes.
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And I thought home dealer bans were a California phenomenom. There was a big debate about banning home dealers in Long Beach a year or two ago. The debate went on for a few weeks... until they found out that the city council had [i]already banned[/i] home dealers about five years ago, but it was never enforced! What a bunch of dumbasses, don't even know their own laws. To make a long story short, the ban is now enforced. AFAIK, it affected about six local guys and they didn't fight it. The same type of ban is being considered statewide in the legislature.
As far as home dealers being rule breakers, from what one of my friendly neighborhood gun dealers told me, who was told this by a CA DOJ agent sent on a routine inspection of his books, the most egregious rule breakers in California are storefront operations.
The agent told him that they don't have a problem with home dealers, who are by and large very meticulous with their record keeping and stay within the letter of the law. I can think of at least three local gun stores off the top of my head that were shut down by BATF for shady practices, like selling guns out the back door without papers. I think in most cases it was the "hired help" not the actual FFL holder.
My other friendly neighborhood gun dealer just won a Winchester M1 Garand with matching numbers in the raffle at our annual pig roast. I can't think of a more deserving guy. He has thought about giving up his FFL, but people always come through and give him some more business. We've even offered to pay all his fees for him, but he declined.
SteyrAUG, nice story. There are still people like that around but like you said, they're becoming a rare breed.