Jim Watson I thought you had to have a request from a government agency to produce a "post 86 sample" even with appropriate licenses.
Nope. The law letter is only required when transferring a post '86 machine gun to another FFL/SOT.
07FFL/SOT can manufacture them all day long......that's kinda the point of being an 07FFL/SOT.
Not so? You can just crank out whatever you like but have to either keep it or pass it on to another dealer or armed government agency?
What the 07FFL/SOT manufactures is listed on a Form 2. If he want to transfer or sell to another FFL/SOT it would require a law letter on behalf of the transferee.
I saw a daisy chain of small shops building "samples' and passing them around, but that was years ago and thought it had been stopped
Since 1934 there has been no "passing around". Transfer any NFA firearm still requires an approved Form 3 or Form 4. Post '86 machine guns are only transferrable to other FFL/SOT's with a law letter or to governmental agencies. If the FFL/SOT discontinues business, he must dispose of all these post '86 machine guns to another 01FFL/SOT w/law letter or to an 07FFL/SOT without one or to a governmental agency.
along with the Clinton elimination of "hobby" dealers.
There has never been such a thing as a "hobby dealer". The dealer must be engaged in the business of dealing in firearms. It is a myth that Clinton eliminated a bunch of FFL's. In fact ATF gave those "dealers" every opportunity to get legal (obtain a business license, comply with local laws, sales tax permits, zoning, etc.) Most chose to relinquish their FFL rather than get legal. BTW, when they applied for that FFL they certified under penalty of law that they were actually going to be engaged in the business of dealing firearms and would comply with all federal, state and local laws.....in short, many of them flat out lied.
I am not an anti-gunner, but there is a lot of stuff going on at the fringes of the NFA, GCA, and GOPA that would not pass Quacks Like a Duck scrutiny.
There is absolutely nothing on the fringes. It's either prohibited or regulated or its not. Just because you are unaware of the ability of an 07FFL/SOT to manufacture machine guns doesn't mean it's "at the fringes". For Pete's sake, Colt and Glocks 07FFL/SOT are no different than any other 07FFL/SOT.