SECTION 1. SHORT TITLE.

    This Act may be known as the ``National Firearms Exchange Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the Nation is afflicted with an enormous problem 
        relating to crimes of violence;
            (2) there are more than 200,000,000 firearms on the 
        Nation's streets;
            (3) such firearms are the cause of numerous deaths and 
        injuries to the Nation's citizens; and
            (4) it is essential that the Nation act to rid itself of 
        such firearms and protect the safety of its citizens.
    (b) Purpose.--The purpose of this Act is--
            (1) to authorize the Director of the Bureau of Justice 
        Assistance to approve local programs that exchange merchandise 
        vouchers for firearms;
            (2) to authorize the Director to make grants to the 
        programs;
            (3) to provide amnesty from certain Federal statutes 
        concerning firearms for individuals who surrender, or are in 
        the process of surrendering, firearms under the programs; and
            (4) to allow a tax deduction for taxpayers who donate 
        merchandise vouchers for use in the programs.

          TITLE I--PROGRAMS TO EXCHANGE VOUCHERS FOR FIREARMS

SEC. 101. APPROVAL AND FUNDING OF PROGRAMS TO EXCHANGE VOUCHERS FOR 
              FIREARMS.

    (a) In General.--Title I of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended--
            (1) by redesignating part Q as part R;
            (2) by redesignating section 1701 as section 1801; and
            (3) by inserting after part P the following new part:

    ``PART Q--PROGRAMS TO EXCHANGE MERCHANDISE VOUCHERS FOR FIREARMS

``SEC. 1701. APPROVAL OF PROGRAMS TO EXCHANGE MERCHANDISE VOUCHERS FOR 
              FIREARMS.

    ``(a) In General.--The Director of the Bureau of Justice Assistance 
shall establish procedures under which any unit of local government may 
apply for approval, under this section, of a program to exchange 
merchandise vouchers for firearms. The Director shall establish 
criteria and procedures to determine whether any such program should be 
approved under this part.
    ``(b) Factors To Be Considered.--In determining whether or not to 
approve a program under this section, the Director shall consider--
            ``(1) the characteristics of the unit of local government 
        in which the program will be located;
            ``(2) the kinds of firearms included in the program;
            ``(3) the manner in which the program will dispose of 
        firearms that are surrendered;
            ``(4) whether the program will accept firearms from 
        residents of other States and units of local government;
            ``(5) whether and to what extent the program will protect 
        the anonymity of individuals who surrender firearms to the 
        program;
            ``(6) whether and to what extent the State in which the 
        program is located will provide that any individual who 
        surrenders, or is in the process of surrendering, a firearm to 
        the program will not be prosecuted under State law--
                    ``(A) for possession, transportation, storage, or 
                concealment of the firearm (occurring before or after 
                the date of the enactment of this part);
                    ``(B) for transfer, delivery, shipment, or 
                surrender of the firearm to the program;
                    ``(C) for surrender of the firearm to the program 
                in exchange for a voucher; or
                    ``(D) for making the firearm or for obliterating, 
                removing, changing, or altering the serial number or 
                other required identification of the firearm;
            ``(7) the manner in which the program will recruit 
        participation by individuals and businesses; and
            ``(8) any other factor that the Director considers 
        appropriate.
    ``(c) Disposal of Firearms.--
            ``(1) Destruction of firearms.--The Director may not 
        approve under this section any program that does not provide 
        that all firearms surrendered to the program will be destroyed.
            ``(2) Use of firearms for evidentiary and investigative 
        purposes.--Paragraph (1) shall not be interpreted to require 
        the destruction of a firearm that is surrendered to an approved 
        program and is needed for investigatory or evidentiary 
        purposes, until the firearm is no longer needed for such 
        purposes.
    ``(d) Timing of Approval Process and Duration of Approval Status.--
            ``(1) Timing of approval process.--The Director shall 
        approve or disapprove each program for which an application is 
        submitted under subsection (a) within 60 days after the 
        application is submitted.
            ``(2) Duration of approval status.--A program shall be 
        considered approved for the 2-year period beginning on the date 
        that the program is approved under this section, and may 
        reapply for approval for subsequent 2-year periods.
    ``(e) Effort to Secure State Amnesty Regarding Approved Programs.--
The Director shall make every effort possible to secure from State 
governments, for individuals who surrender or are in the process of 
surrendering a firearm to a program approved under this section, 
provisions of amnesty that are similar to the amnesty described in 
section 925(h) of title 18, United States Code, regarding State 
offenses that are the same as or substantially similar to the Federal 
offenses for which amnesty is provided in such section.

``SEC. 1702. GRANTS TO APPROVED PROGRAMS.

    ``(a) Grant Authorization.--The Director may make grants to 
programs that are approved under section 1701.
    ``(b) Applications, Criteria, and Allocation.--The Director shall 
establish procedures under which a unit of local government whose 
program is approved under section 1701 may apply for a grant for the 
program. The Director shall establish procedures and criteria to 
determine whether any such program should receive such a grant.

``SEC. 1703. ANNUAL REPORT TO CONGRESS.

    ``(a) In General.--As part of the annual report required by section 
810, the Director shall submit to the Congress an assessment of the 
effectiveness of this part and of approved programs. The Director's 
assessment may include recommendations that the Director finds 
appropriate.
    ``(b) Criteria Regarding Effectiveness.--In order to complete the 
assessment required by subsection (a), the Director shall establish 
criteria for evaluating the effectiveness of this part and of approved 
programs.
    ``(c) Evaluation of Factors.--The assessment required by subsection 
(a) also shall include--
            ``(1) a statement showing the manner in which the Director 
        used the factors referred to in section 1701(b) in deciding 
        whether to approve and fund programs under this part; and
            ``(2) for each of the factors referred to in section 
        1701(b), a statement of the manner in which the program 
        characteristics included in the factor predict a program's 
        effectiveness.
    ``(d) Recommendation Regarding This Part.--In the annual report, 
referred to in section (a), that is submitted to the Congress 2 years 
after the date of the enactment of this Act, the Director shall make a 
recommendation regarding whether approval and funding of programs under 
this part should continue.

``SEC. 1704. DEFINITIONS.

    ``For purposes of this part:
            ``(1) The term `approved program' means a program approved 
        by the Director under section 1701.
            ``(2) The term `Director' means the Director of the Bureau 
        of Justice Assistance.
            ``(3) The term `firearm' has the meaning given such term in 
        section 921(a)(3)(A) of title 18, United States Code.
            ``(4) The term `program' means a program of a unit of local 
        government to exchange merchandise vouchers for firearms.''.
    (b) Authorization of Appropriations.--Section 1001(a) of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3793(a)) 
is amended by adding at the end the following new paragraph:
    ``(11) There are authorized to be appropriated such sums as may be 
necessary to carry out part Q.''.
    (c) Additional Amendments.--Title I of the Omnibus Crime Control 
and Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.) is amended--
            (1) in section 801(b), by striking ``and O'' and inserting 
        ``O, and Q'';
            (2) in the first sentence of section 802(b), by striking 
        ``or O'' and inserting ``O, or Q''; and
            (3) in section 1001(a)(3), by striking ``and O'' and 
        inserting ``O, and Q''.
    (d) Conforming Amendment.--The table of contents of title I of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 
prec.) is amended by striking the items relating to part Q and 
inserting the following new items:

    ``Part Q--Programs To Exchange Merchandise Vouchers For Firearms

``Sec. 1701. Approval of programs to exchange merchandise vouchers for 
                            firearms.
``Sec. 1702. Grants to approved programs.
``Sec. 1703. Annual report to Congress.
``Sec. 1704. Definitions.
             ``Part R--Transition--Effective Date--Repealer

``Sec. 1801. Continuation of rules, authorities, and proceedings.''.

SEC. 102. AMNESTY FOR INDIVIDUALS SURRENDERING FIREARMS.

    (a) In General.--Section 925 of title 18, United States Code, is 
amended by adding at the end the following new subsection:
    ``(h)(1)(A) If an individual surrenders, or is in the process of 
surrendering, a firearm to a program approved under section 1701 of the 
Omnibus Crime Control and Safe Streets Act of 1968, section 922 of this 
title (except section 922(q)(1)(A)), and section 5861 of the National 
Firearms Act, shall not apply to the individual's--
            ``(i) possession, transportation, storage, or concealment 
        of the firearm (whether before or after the date of the 
        enactment of this subsection);
            ``(ii) transfer, delivery, shipment, or surrender of the 
        firearm to such a program;
            ``(iii) surrender of the firearm to such a program in 
        exchange for a voucher; or
            ``(iv) making of the firearm in violation of the National 
        Firearms Act, or obliteration, removal, change, or alteration 
        of the serial number of the firearm (or other identification of 
        the firearm) required by the National Firearms Act.
    ``(B) Subparagraph (A) shall not apply to an individual's conduct 
regarding a firearm if, at the time that the individual surrenders, or 
is in the process of surrendering, the firearm to a program approved 
under section 1701 of the Omnibus Crime Control and Safe Streets Act of 
1968--
            ``(i) the individual is the subject of a complaint made, an 
        indictment or information filed, an arrest made, or a summons 
        issued, to begin a prosecution, for a violation of a provision 
        referred to in subparagraph (A), regarding the firearm; or
            ``(ii) the individual knows that the individual is the 
        subject of a criminal investigation concerning the individual's 
        violation of a provision referred to in subparagraph (A) with 
        regard to the firearm.
    ``(2)(A) Possession of a firearm in a school zone in order to 
surrender the firearm to a program, approved under section 1701 of the 
Omnibus Crime Control and Safe Streets Act of 1968, that is located in 
the school zone shall not be a violation of section 922(q)(1)(A) of 
this title.
    ``(B) Bringing a firearm to a Federal facility, or possessing a 
firearm in a Federal facility, in order to surrender the firearm to a 
program, approved under section 1701 of the Omnibus Crime Control and 
Safe Streets Act of 1968, that is located in the Federal facility shall 
not be a violation of section 930(a) of this title.''.
    (b) Cross Reference.--The National Firearms Act (26 U.S.C. 5801 et 
seq.) is amended by inserting after section 5861 the following new 
section:

``SEC. 5862. CROSS REFERENCE.

                                ``For applicability of section 5861 to 
individuals surrendering firearms to programs approved under section 
1701 of the Omnibus Crime Control and Safe Streets Act of 1968, see 
section 925(h)(1) of title 18, United States Code.''.

 TITLE II--TAX DEDUCTION FOR TAXPAYERS WHO DONATE MERCHANDISE VOUCHERS

SEC. 201. CHARITABLE DEDUCTION MODIFIED TO ALLOW DEDUCTION FOR FAIR 
              MARKET VALUE OF CERTAIN CONTRIBUTIONS IN CONNECTION WITH 
              GUN EXCHANGE PROGRAMS.

    (a) General Rule.--Subsection (e) of section 170 of the Internal 
Revenue Code of 1986 (relating to certain contributions of ordinary 
income and capital gain property) is amended by adding at the end 
thereof the following new paragraph:
            ``(6) Deduction allowed for full market value of certain 
        contributions in connection with gun exchange programs.--
                    ``(A) In general.--The deduction under subsection 
                (a) for any qualified gun exchange program contribution 
                shall be an amount equal to its fair market value, and 
                no reduction under paragraph (1)(A) shall be made in 
                the amount of such contribution.
                    ``(B) Qualified gun exchange program 
                contribution.--For purposes of this paragraph, the term 
                `qualified gun exchange program contribution' means any 
                charitable contribution of property described in 
                paragraph (1) of section 1221 or of a voucher which may 
                be used to acquire property so described if--
                            ``(i) the property (or voucher) is to be 
                        transferred by the donee to individuals 
                        surrendering firearms in a gun exchange program 
                        which is determined by the Director of the 
                        Bureau of Justice Assistance to be approved 
                        under section 1701 of the Omnibus Crime Control 
                        and Safe Streets Act of 1968, and
                            ``(ii) the taxpayer received from the donee 
                        a written statement that the property (or 
                        voucher) was transferred as provided in clause 
                        (i).''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to contributions made after the date of the enactment of this 
Act.
TABLE OF CONTENTS: 
     Title I:  Programs to Exchange Vouchers for Firearms 
     Title II:  Tax Deduction for Taxpayers Who Donate 
          Merchandise Vouchers 
National Firearms Exchange Act - 
Title I:  Programs to Exchange Vouchers for Firearms
 - Amends the Omnibus Crime Control and Safe Streets Act of 1968 (Omnibus Act) to require the Director of the Bureau of Justice Assistance to establish procedures under which any unit of local government may apply for approval of a program to exchange merchandise vouchers for firearms.  Requires the Director to establish criteria and procedures to determine whether any such program should be approved under this title. 
Prohibits the Director from approving any program that does not provide that all firearms surrendered to the program will be destroyed, but does not require the destruction of a firearm until it is no longer needed for investigatory or evidentiary purposes. 
Sets forth provisions regarding the timing of the approval process and the duration of approval status. 
Requires the Director to make every effort to secure from State governments amnesty for certain offenses for persons surrendering firearms. 
Authorizes the Director to make grants to approved programs. Requires the Director to establish grant application and award procedures for local governments whose programs are approved. 
Requires the Director to submit to the Congress an assessment of the effectiveness of this title regarding programs to exchange merchandise vouchers for firearms and of approved programs and to establish criteria for evaluating such effectiveness. 
Authorizes appropriations. 
Amends the Federal criminal code to grant amnesty to an individual surrendering, or in the process of surrendering, a firearm to an approved program (thus making specified provisions of the Omnibus Act and the National Firearms Act inapplicable with respect to such individual), with exceptions. 
Title II:  Tax Deduction for Taxpayers Who Donate Merchandise Vouchers
 - Amends the Internal Revenue Code to allow a deduction for the fair market value of certain contributions of property or vouchers to be transferred to individuals surrendering firearms under a qualified gun exchange program.
National Firearms Exchange Act