A FFL is a federal license which authorizes an individual or entity to buy , sell , and transfer firearms. that includes firearms from the United States or State if they were to buy or sell firearms.
The military can buy directly from the manufacture, but all other agencies must still buy from a civilian dealer.
PD's and agencies do not have a FFL and must buy thru a FFL. thus it's why FFL can have normal cap mags to sell to LEO.
same reason if HPD disposes of their S&W it must go thru a FFL.
I understand what an FFL is. My question is: Do you buy your "restricted items" from the US or State, or from a manufacturer or dealer? If the latter, you are not satisfying the statutory requirement that you "purchase or receive the weapons
from the United States or from the State..."
I am simply trying to determine how you interpreted the statue to come to the conclusion that you, and any other "members" of your organization may be exempt from HRS 134-7. I'm trying to play devil's advocate to help prepare any counter argument the State may try to present in refuting your interpretation.
Edit to add: I think I got it...you buy back used "restricted items" from the agency (HPD) but they are neither the US or the State. Now, if you buy back from other agencies, like Department of Public Safety or a Federal LE agency, you should be able to claim you purchase or receive those items from the State or the US, respectively....