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The best way to step toward repealing ( or at least circumventing) Hughes would be for real, state-sanctioned militia to authorized private purchases of M4s and M16s, etc. for militia training and use... This can't be pre-textual, it has to be an actual state militia.
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Here's an idea that sure to spur some interesting debate...
Piggyback the militia* on top of a state's "Shall Issue" CHL program. IOW create something of a two-tiered system. The bottom tier is your traditional (so to speak) CHL program. The top tier goes through the same background check system and adds some additional classroom instruction and range training with FA weapons. It could be called something like a "Special Militia Weapons License" (SMWL).
The state could require people who wish to buy machine guns to hold a SMWL, giving the legislation some cover as a "public safety" measure. Here's the clincher: word the state law such that it specifically authorizes SMWL holders to "legally purchase... military-type machine guns and assault rifles" but
does not tie the purchase directly to compliance with the NFA or Hughes Amendment. When a SMWL holder attempts to purchase a factory-new select-fire M-4 rifle- just like the Army uses and therefore very obviously "military-type"- the purchase will be denied under the Hughes Amendment and the matter can go to court.
Discuss.
*Before someone raises this as an objection, IIRC the Militia Act of 1903- the law that created the National Guard- very specifically does not preclude states from sanctioning armed militias in addition to the Guard. I'm just too lazy to look up the text right now.