I 113th CONGRESS 1st Session H. R. 868 IN THE HOUSE OF REPRESENTATIVES February 27, 2013 Mr. Payne (for himself, Ms. Norton , and Mr. Clay ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To authorize the Director of the Bureau of Justice Assistance to make grants to States, units of local government, and gun dealers to conduct gun buyback programs.

1. Short title This Act may be cited as the Safer Neighborhoods Gun Buyback Act of 2013 . 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. 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. 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). 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. 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. 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. 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.