I 114th CONGRESS 1st Session H. R. 4278 IN THE HOUSE OF REPRESENTATIVES December 16, 2015 Mr. Payne (for himself, Mr. Engel , Mr. Rangel , Ms. Edwards , Ms. Clarke of New York , Ms. Norton , Mr. Fattah , Mr. David Scott of Georgia , Ms. Wilson of Florida , Mr. Sires , Mr. McGovern , Mr. Van Hollen , Mr. Jeffries , Mr. Cohen , Ms. Jackson Lee , Mrs. Lawrence , Mr. Blumenauer , Ms. Fudge , Mr. Quigley , Ms. Speier , Mrs. Watson Coleman , Ms. Schakowsky , and Mr. Takano ) 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, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Safer Neighborhoods Gun Buyback Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Gun buyback grant program Sec. 101. Program authorized. Sec. 102. Applications. Sec. 103. Term of grant. Sec. 104. Smart prepaid cards. Sec. 105. Uses of funds. Sec. 106. Definitions. Sec. 107. Authorization of appropriations. Title II—Criminal provision Sec. 201. Use of smart prepaid card to buy or sell a firearm. I Gun buyback grant program 101. Program authorized (a) In general The Director of the Bureau of Justice Assistance (referred to in this title as the Director ) may make grants to eligible entities to conduct gun buyback programs. (b) Eligible entity defined In this title, 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 title. 102. Applications (a) Grants The chief executive of an eligible entity seeking a grant under this title 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 title 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. 103. Term of grant (a) Term The term of a grant awarded under this title shall be two years. (b) Availability of grant funds (1) States or units of local government A State or unit of local government that receives a grant under this title shall return to the Director any remaining smart prepaid cards and 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. (2) Gun dealers A gun dealer that receives a grant or subgrant under this title 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. (c) Amounts returned The Director shall return to the general fund of the Treasury any amounts returned under subsection (b). 104. Smart prepaid cards (a) In general In conducting the grant program authorized under section 101, 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 title. 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 that the Director determines should be included in the gun buyback program 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 paragraph (1) shall pay to the Director an amount that is equal to the value of the prohibited sale. 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. (2) Gun and ammunition recycling program 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 Director under section 104(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 title, the gun dealer shall deliver a gun or ammunition 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 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 receiving 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 individuals wishing to dispose of it, which shall be recycled in accordance with paragraph (3), but may not use smart prepaid cards to purchase ammunition under the gun buyback program. (d) 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)(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, Tobacco, 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 Explosives, 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 delivered to the appropriate prosecuting authority. 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 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 merchants 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 currency. (6) State The term State means each of the 50 States, the District of Columbia, or any commonwealth, territory, or possession of the United States. 107. Authorization of appropriations There is authorized to be appropriated $360,000,000 for each of fiscal years 2017 through 2019 to carry out this title. II Criminal provision 201. Use of smart prepaid card in the acquisition or transfer of a firearm (a) In general Chapter 44 of title 18, United States Code, is amended by adding at the end the following: 932. Use of smart prepaid card in the acquisition or transfer of a firearm Whoever, in or affecting interstate or foreign commerce, uses a smart prepaid card (as such term is defined in section 106 of the Safer Neighborhoods Gun Buyback Act of 2015) in connection with the acquisition of, or accepts 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 amended by inserting after section 929 the following: or section 932 . (2) Table of sections The table of sections at the beginning of chapter 44, United 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. .