SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safer Neighborhoods Gun Buyback Act 
of 2013''.

SEC. 2. PROGRAM AUTHORIZED.

    (a) In General.--The Director of the Bureau of Justice Assistance 
(referred to in this Act as the ``Director'') may make grants to 
eligible entities to conduct gun buyback programs.
    (b) Eligible Entity Defined.--In this Act, the term ``eligible 
entity'' means--
            (1) a State;
            (2) a unit of local government; or
            (3) a gun dealer if neither the unit of local government 
        nor the State where such dealer is located receives a grant 
        under this Act.

SEC. 3. APPLICATIONS.

    (a) Grants.--The chief executive of an eligible entity seeking a 
grant under this Act shall submit an application to the Director at 
such time and containing such information as the Director may 
reasonably require.
    (b) Subgrants.--A gun dealer located in a unit of local government 
or State that does receive a grant under this Act seeking a subgrant 
shall submit an application to the chief executive of such unit of 
local government or State at such time and containing such information 
as the chief executive may reasonably require, including proof of such 
dealer's license under section 923 of title 18, United States Code.

SEC. 4. TERM OF GRANT.

    (a) Term.--The term of a grant awarded under this Act shall be two 
years.
    (b) Availability of Grant Funds.--
            (1) Gun dealers.--A gun dealer that receives a grant or 
        subgrant under this Act shall return to the Director any 
        remaining smart prepaid cards and any unused portion of such 
        grant or subgrant that was allocated to be used to buy back 
        guns--
                    (A) in the case of a gun dealer receiving a grant, 
                at the end of the two-year period beginning on the date 
                that the grant was awarded; or
                    (B) in the case of a gun dealer receiving a 
                subgrant, at the end of the two-year period beginning 
                on the date that the grant was awarded to the State or 
                unit of local government from which the gun dealer 
                received a subgrant.
            (2) States or units of local government.--A State of unit 
        of local government that receives a grant under this Act shall 
        return to the Director any unused portion of such grant at the 
        end of the two-year and 270-day period beginning on the date 
        that the grant was awarded.
    (c) Amounts Returned.--The Director shall return to the general 
fund of the Treasury any amounts returned under subsection (b).

SEC. 5. SMART PREPAID CARDS.

    (a) In General.--In conducting the grant program authorized under 
section 2, the Director may reserve such funds as may be necessary to 
acquire and distribute smart prepaid cards to eligible entities that 
receive grants under this Act. The Director shall distribute the smart 
prepaid cards without any funds loaded onto the cards.
    (b) Market Value of Guns.--The Director shall determine the market 
value of each gun listed in section 7(2) and make such information 
publicly available.
    (c) Prohibition on Use of Cards To Buy Guns.--
            (1) In general.--A person may not use a smart prepaid card 
        to buy a gun or ammunition, and a merchant may not accept a 
        smart prepaid card to sell a gun or ammunition.
            (2) Penalty.--A merchant that violates paragraph (1) shall 
        pay to the Director an amount that is equal to the value of the 
        prohibited sale.

SEC. 6. USES OF FUNDS.

    (a) States and Units of Local Government.--A State or unit of local 
government receiving a grant under this Act shall use such funds to do 
the following:
            (1) Subgrants to gun dealers.--Distribute not less than 80 
        percent of such funds in the form of subgrants to gun dealers 
        in such State or unit of local government to conduct gun 
        buyback programs.
            (2) Distribute smart prepaid cards.--Distribute the smart 
        prepaid cards such State or unit of local government receives 
        to gun dealers receiving subgrants.
            (3) Gun recycling program.--Use 10 percent of such funds to 
        recycle the guns that such State or unit of local government 
        receives from gun dealers to make street signs, energy 
        efficient washing machines, car parts, energy efficient 
        refrigerators, or other steel parts such as railroad or metro 
        tracks.
            (4) Administrative costs.--Use not more than 10 percent of 
        such funds for the administrative costs of carrying out the 
        grant program under this Act.
    (b) Gun Dealers.--
            (1) In general.--A gun dealer receiving a grant or subgrant 
        under this Act shall use such funds to conduct a gun buyback 
        program.
            (2) Smart prepaid card amounts.--
                    (A) In order to purchase a gun through a gun 
                buyback program, a gun dealer shall load onto a smart 
                prepaid card 125 percent of the market value of the gun 
                that the individual wishes to dispose of (as determined 
                by the Director under section 5(b)).
                    (B) A gun dealer may increase the purchase price of 
                a gun and load an amount onto a smart prepaid card that 
                is greater than 125 percent of the market value of the 
                gun if the gun dealer determines that the gun has been 
                altered in a way that would increase the market value 
                of the gun (such as an altered grip, or the addition of 
                a scope).
            (3) Guns received.--
                    (A) In the case of a gun dealer receiving a grant 
                under this Act, the gun dealer shall deliver a gun the 
                dealer receives under the gun buyback program to the 
                closest office of the Bureau of Alcohol, Tobacco, 
                Firearms and Explosives not later than 60 days after 
                receiving such gun.
                    (B) In the case of a gun dealer receiving a 
                subgrant under this Act, the gun dealer shall deliver a 
                gun the dealer receives under the gun buyback program 
                to the State or unit of local government from which it 
                receives the subgrant not later than 60 days after 
                receiving such gun.
    (c) Incentives for Gun Dealer Participation.--To the extent that 
the Director determines necessary to facilitate participation of gun 
dealers in the gun buyback program, grant funds may be used to provide 
monetary or other incentives to gun dealers to participate in such 
program. For purposes of subsection (a), any such incentives shall be 
treated as part of the subgrant to the gun dealer described in 
paragraph (1) thereof.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Gun.--The term ``gun'' means ``firearm'' as defined in 
        section 921(a)(3) of title 18, United States Code.
            (2) Gun buyback program.--The term ``gun buyback program'' 
        means a program under which a gun dealer, using smart prepaid 
        cards as described in section 6(b)(2), purchases back from 
        individuals wishing to dispose of them, the following guns:
                    (A) Smith and Wesson .38 revolver.
                    (B) Smith and Wesson .40 semiautomatic pistol.
                    (C) Haskell Hi-Point JHP 45 semiautomatic pistol.
                    (D) Iberia Firearm JCP40 pistol.
                    (E) Ruger 9 mm semiautomatic pistol.
                    (F) Hi-Point CF380 .380 semiautomatic pistol.
                    (G) Raven Arms .25 semiautomatic pistol.
                    (H) Mossberg 12 gauge shotgun.
                    (I) Smith and Wesson 9mm semiautomatic pistol.
                    (J) Smith and Wesson .357 revolver.
                    (K) Bryco Arms 9mm semiautomatic pistol.
                    (L) Bryco Arms .380 semiautomatic pistol.
                    (M) Davis Industries .380 semiautomatic pistol.
                    (N) Cobra FS380 .38 semiautomatic pistol.
            (3) Gun dealer.--The term ``gun dealer'' means a dealer of 
        firearms licensed under section 923 of title 18, United States 
        Code.
            (4) Smart prepaid card.--The term ``smart prepaid card'' 
        means a card issued by the Director that--
                    (A) is redeemable at multiple, unaffiliated 
                merchants or service providers;
                    (B) contains a mechanism, for the purpose of 
                preventing the card-holder from using it to purchase a 
                gun or ammunition, that recognizes the merchant 
                category code of a merchant and prohibits the use of 
                such card at gun stores and pawn shops;
                    (C) is honored, upon presentation, by merchants for 
                goods or services, except for merchants described in 
                subparagraph (B);
                    (D) is loaded on a prepaid basis by a gun dealer 
                for use in a gun buyback program; and
                    (E) clearly and conspicuously bears the words 
                ``THIS CARD MAY NOT BE USED TO PURCHASE A GUN OR 
                AMMUNITION'' in capital and raised letters on the card.
            (5) State.--The term ``State'' means each of the 50 States 
        and the District of Columbia.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $360,000,000 for each of 
fiscal years 2014 through 2016 to carry out this Act.
Safer Neighborhoods Gun Buyback Act of 2013 - Authorizes the Director of the Bureau of Justice Assistance to make two-year grants to states and local governments for subgrants to gun dealers, or to gun dealers directly, to conduct gun buyback programs under which gun dealers shall be issued smart prepaid cards to purchase specified guns (listed in this Act) from individuals wishing to dispose of them. Prohibits: (1) such an individual from using such a card to buy a gun or ammunition, and (2) a merchant from accepting such a card to sell a gun or ammunition. Requires a state or local government to: (1) use 10% of grant funds to recycle the guns received from dealers to make street signs, energy efficient washing machines, car parts, energy efficient refrigerators, or other steel parts such as railroad or metro tracks; and (2) use not more than 10% for administrative costs of the program.  Requires a gun dealer participating in the program to: (1) pay an individual 125% of a gun's market value, as determined by the Director; and (2) deliver guns received to the closest Bureau of Alcohol, Tobacco, Firearms and Explosives [ATF] office (for grantees) or to the state or local government (for subgrantees) within 60 days of receipt. Allows grant funds to be used to provide incentives to gun dealers to participate.
Safer Neighborhoods Gun Buyback Act of 2013