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What do you mean when you say "a shall issue state"

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Just want to know what people are referring to when they say NH is "a shall issue state".

Also, when reading the statute regarding LTC, I see "shall issue to suitable persons for allowable purposes", or something along the lines of such.

I'm going to the Police Dept on Tuesday to apply for my LTC, so, I don't want to mess up the application when it comes to allowable purposes, but my purpose is for collecting & would need LTC to be compliant with MA if I have a gun in the car because I live near the border & often cross the state line to get on RT 95, so, do you think they'd consider this an allowable purpose?

Or do I simply put self defense, hunting, target shooting?
I am doubtful about self defense. I don't really feel in danger, so what's the reason?

Also, I see "suitable person". Who do they think unsuitable?
 
"unsuitable person" in a "shall issue" state means someone who is statutorily disqualified (prior conviction of a felony, domestic violence misdemeanors, drug offenses, and certain other offenses as noted in that state's laws).

NH allows "personal protection" as a reason for issuance, they don't need letters explaining why.

Small nit: LTC is a "MA term", "CCW" is a more appropriate one in NH and most states.
 
"Shall issue" means that if you apply for a Pistol and Revolver License, and you are not a "prohibited person," the state shall issue you a license. The issuing authority has no option to say "Well, I don't think this is a good enough reason to have a license," or "you really pissed my off during my last campaign for Chief of Police," or "you're too young/new/untrained/[insert non-articulated nebulous reason here]." They have no such discretion, as they have in a "may issue" state like MA or NY.

Your profile says NH, but you keep referring to an LTC, which is a MA-specific term. In NH, the law states:
The selectmen of a town or the mayor or chief of police of a city or some full-time police officer designated by them respectively, upon application of any resident of such town or city, or the director of state police, or some person designated by such director, upon application of a nonresident, shall issue a license to such applicant authorizing the applicant to carry a loaded pistol or revolver in this state for not less than 4 years from the date of issue, if it appears that the applicant has good reason to fear injury to the applicant's person or property or has any proper purpose, and that the applicant is a suitable person to be licensed. Hunting, target shooting, or self-defense shall be considered a proper purpose.

It then goes on to designate the state-provided form which must be used for the licensing requirement, and to proscribe the use of any alternate or additional forms or requirements.

In short, "application" for "any proper purpose" by any "suitable person" means you "shall" be issued a Pistol and Revolver License in NH "within 14 days after application." Also, "if such application is denied, the reason for such denial shall be stated in writing."
 
"Small nit: LTC is a "MA term", "CCW" is a more appropriate one in NH and most states.
Smaller nit: "CCW" is usually a thing (Concealed Carry Weapon) or an offense ("He was arrested for CCW-Carrying a Concealed Weapon.) In NH, it's called a Pistol and Revolver License.
 
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