market value of the gun that the individual 
wishes to dispose of (as determined by the Di-
rector under section 5(b)). 
(B) A gun dealer may increase the pur-
chase 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 al-
tered 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 de-
liver a gun the dealer receives under the gun 
buyback program to the closest office of the 
Bureau of Alcohol, Tobacco, Firearms and Ex-
plosives 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. 
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(c) INCENTIVES
FOR
GUN
DEALER
PARTICIPA-
TION.—To the extent that the Director determines nec-
essary 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 semiauto-
matic pistol. 
(D) Iberia Firearm JCP40 pistol. 
(E) Ruger 9 mm semiautomatic pistol. 
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(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 pis-
tol. 
(L) Bryco Arms .380 semiautomatic pistol. 
(M) Davis Industries .380 semiautomatic 
pistol. 
(N) Cobra FS380 .38 semiautomatic pis-
tol. 
(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 
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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 mer-
chants for goods or services, except for mer-
chants 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. 
Æ 
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