determines should be included in the gun buyback pro-
gram 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 in the acquisition of a gun or 
ammunition, and a person may not accept a smart 
prepaid card in the transfer (including a loan) of a 
gun or ammunition. 
(2) PENALTY.—A person that violates para-
graph (1) shall pay to the Director an amount that 
is equal to the value of the prohibited sale. 
SEC. 105. USES OF FUNDS. 
(a) STATES AND UNITS OF LOCAL GOVERNMENT.— 
A State or unit of local government receiving a grant 
under this title shall use such funds to do the following: 
(1) GUN BUYBACK PROGRAM.—Use such funds 
to— 
(A) conduct a gun buyback program; or 
(B) make subgrants to gun dealers in such 
State or unit of local government to conduct 
gun buyback programs, and distribute the 
smart prepaid cards such State or unit of local 
government receives to gun dealers receiving 
subgrants. 
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(2) GUN
AND
AMMUNITION
RECYCLING
PRO-
GRAM.—Use not more than 10 percent of such funds 
to recycle the guns and ammunition that such State 
or unit of local government collects or receives from 
gun dealers. 
(3) ADMINISTRATIVE
COSTS.—Use not more 
than 15 percent of such funds for the administrative 
costs of carrying out the grant program under this 
title, including the criminal database checks under 
subsection (f). 
(b) GUN DEALERS.— 
(1) IN
GENERAL.—A gun dealer receiving a 
grant or subgrant under this title 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 Di-
rector under section 104(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 
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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 title, the gun dealer shall de-
liver a gun or ammunition the dealer receives 
under the gun buyback program to the closest 
office of the Bureau of Alcohol, Tobacco, Fire-
arms and Explosives not later than 60 days 
after receiving such gun. 
(B) In the case of a gun dealer receiving 
a subgrant under this title, the gun dealer shall 
deliver a gun or ammunition 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 re-
ceiving such gun. 
(c) AMMUNITION COLLECTION.—A State, unit of 
local government, or gun dealer conducting a gun buyback 
program under this title may accept ammunition from in-
dividuals wishing to dispose of it, which shall be recycled 
in accordance with paragraph (3), but may not use smart 
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prepaid cards to purchase ammunition under the gun 
buyback program. 
(d) 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)(B) thereof. 
(e) RESALE OF GUNS PROHIBITED.—A State, unit 
of local government, or gun dealer conducting a gun 
buyback program under this title may not sell a gun or 
ammunition received under such program. 
(f) CRIMINAL DATABASE CHECK.—A State, unit of 
local government, or office of the Bureau of Alcohol, To-
bacco, Firearms and Explosives that receives a gun under 
a gun buyback program under this title shall, not later 
than 21 days after receiving the gun, use any database 
accessible to the State, unit of local government, or office 
of the Bureau of Alcohol, Tobacco, Firearms and Explo-
sives, as applicable, in order to determine whether the gun 
was used in the commission of a crime. If such a gun was 
used in the commission of a crime, the gun shall be deliv-
ered to the appropriate prosecuting authority. 
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SEC. 106. DEFINITIONS. 
In this title: 
(1) AMMUNITION.—The term ‘‘ammunition’’ 
has the meaning given such term in section 
921(a)(17)(A) of title 18, United States Code. 
(2) GUN.—The term ‘‘gun’’ means ‘‘firearm’’ 
as defined in section 921(a)(3) of title 18, United 
States Code. 
(3) GUN BUYBACK PROGRAM.—The term ‘‘gun 
buyback program’’ means a program under which a 
State, a unit of local government, or a gun dealer, 
using smart prepaid cards as described in section 
105(b)(2), purchases back from individuals wishing 
to dispose of them, a gun identified by the Director 
under section 104(b). 
(4) GUN
DEALER.—The term ‘‘gun dealer’’ 
means a dealer of firearms licensed under section 
923 of title 18, United States Code. 
(5) 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 cardholder 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 a place of 
business subject to a license to deal in firearms 
under section 923 of title 18, United States 
Code; 
(C) is honored, upon presentation, by mer-
chants solely for goods or services, except for 
merchants described in subparagraph (B); 
(D) is loaded on a prepaid basis by a 
State, unit of local government, or gun dealer 
for use in a gun buyback program; 
(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; and 
(F) may not redeemed for coins or cur-
rency. 
(6) STATE.—The term ‘‘State’’ means each of 
the 50 States, the District of Columbia, or any com-
monwealth, territory, or possession of the United 
States. 
SEC. 107. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $360,000,000 
for each of fiscal years 2020 through 2022 to carry out 
this title. 
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TITLE II—CRIMINAL PROVISION 
SEC. 201. USE OF SMART PREPAID CARD IN THE ACQUISI-
TION OR TRANSFER OF A FIREARM. 
(a) IN GENERAL.—Chapter 44 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 932. Use of smart prepaid card in the acquisition 
or transfer of a firearm 
‘‘Whoever, in or affecting interstate or foreign com-
merce, uses a smart prepaid card (as such term is defined 
in section 106 of the Safer Neighborhoods Gun Buyback 
Act of 2017) in connection with the acquisition of, or ac-
cepts a smart prepaid card in connection with the transfer 
(including a loan) of a firearm or ammunition shall be 
fined under this title, imprisoned for not more than 2 
years, or both.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) 
CONFORMING
AMENDMENT.—Section 
924(a)(1) of title 18, United States Code, is amend-
ed by inserting after ‘‘section 929’’ the following: 
‘‘or section 932’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 44 of title 18, United 
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States Code, is amended by inserting after the item 
relating to section 931 the following: 
‘‘932. Use of smart prepaid card in the acquisition or transfer of a firearm.’’. 
Æ 
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