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The sheriff's office for the county I work for chops them up...I've had to destroy some pretty nice pieces...and some pretty bad ones to. The worst are the ones that are in a bag labeled "BIO-HAZARD". Gross!!!
 
our City has 3 choices depending on what the court says. If the court says the gun must be destroyed, then it is. If not, then our department can do the following.

1: place it in their inventory for department use.
2: if it is junk, destroy it. ( we sell their firearms and will not sell crap guns)
3: put the item up for auction. Our department use to have a local auction for FFL's to come in and bid. We now sell the firearms online for them. Our contract says that we must sell all firearms on Gunbroker and supply them with all the listing and fee amounts.

We are getting close to another batch of firearms as soon as they get them processed in.

I hope that I answered the last 2 questions.
 
I am currently waiting to be able to recalim a pistol of mine from a semi-local PD, as it was recovered recently. They better not sell it!
On the other hand, guns that have been recovered, but never claimed might be a grey area. I can understand why it is done, but I could see potential for "oops!"
 

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