Does anyone know anything about this??
Penal Law s. 265.01(1) prohibits a person from possessing a "firearm." [which is defined to include a machinegun]
Penal Law s. 265.02(2) specifically prohibits a person from possessing a "machine-gun."
Penal Law s. 265.10(1) prohbits the "manufacture" of "any machine-gun," and s. 265.10(2) prohbits the "transport" of "any machine-gun."
Then, Penal Law s. 265.20(8) creates an exemption from all three provisions for "The manufacturer of machine-guns. . . as merchandise and the disposal and shipment thereof direct to a regularly constituted or appointed state or municipal police department [or other listed government entity]."
Next, Penal Law s. 265.20(10) creates a much broader exemption for "Engaging in the business of gunsmith or dealerin firearms by a person to whom a valid license therefor has been issued pursuant to section 400.00."
To my knowledge, there is no pertinent provision of the Penal Law that defines "manufacturer" or "manufacture."
However, the Penal Law defines a "Gunsmith" as "any person, firm, partnership, corporation or company who engages in the business of repairing, altering, assembling, manufacturing, cleaning, polishing, engraving or trueing, or who performs any mechanical operation on, any firearm, large capacity ammunition feeding device or machine-gun." In contrast, a "Dealer" "engages in the business of purchasing, selling, keeping for sale, loaning, leasing, or in any manner disposing of, any assault weapon, large capacity ammunition feeding device, pistol or revolver." Thus, a "Dealer" does not handle "firearms" or "machineguns" other than handguns and "assault weapons."
Here is the question: A company is licensed with ATF as a 07 FFL manufacturer and has an SOT stamp. (Translated: it is authorized under federal law to manufacture machineguns.) The company has a NY license as a "Gunsmith" issued by the appropriate licensing officer. The company intends to manufacture firearms (in a general sense). Can the company manufacture "machineguns" if it does not have an order on hand from a listed government entity? Can the company manufacture a handful of machineguns as demonstration samples and for experimental purposes?
In other words, if there is no active contract with a government entity, but there presumably could be one in the future, can the company still rely on the 265.20(8) exemption (for manufacture as merchandise and disposal to a government entity) or the broader 265.20(10) exemption to "engage in the business" of being a gunsmith (which is defined as including the "manufacture" of "machine-guns")?
Bear in mind, a newly manufactured machinegun can only be held by the SOT anufacturer or by an exempted government entity or by a licensed dealer with a law enforcement "demo" letter under current federal law.
I am wondering if anyone has any knowledge of this issue, particularly anyone who has experience working with manufacturers that operate in New York...