(a) No person shall manufacture, sell, offer to sell, transfer, or purchase a prohibited firearm, except as otherwise authorized under this section. Any person convicted of violating this subsection shall be punished by imprisonment of not more than ten (10) years, or by a fine up to ten thousand dollars ($10,000), and the prohibited firearm shall be subject to forfeiture. (b) The following limited exceptions to subsection (a) of this section shall apply: (1) A person who lawfully possesses a prohibited firearm may sell, offer to sell, or transfer their prohibited firearm to a federally licensed firearm dealer, or to an individual outside the state who may lawfully possess such weapon. (2) A federally licensed firearm dealer may sell, offer to sell, or transfer a prohibited firearm to another federally licensed firearm dealer, or to a law enforcement entity identified in subsection (b)(3) of this section, or to an individual outside the state who may lawfully possess such weapon. (3) A law enforcement agency, acting under authority of the United States, the state, or any of its political subdivisions, to import or purchase a prohibited firearm and may lawfully sell, offer to sell, or transfer a prohibited firearm to a federally licensed firearm dealer or to another law enforcement agency, acting under authority of the United States or a state or any of its political subdivisions.
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