SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans' Heritage Firearms Act of 
2002''.

SEC. 2. AMNESTY PERIOD FOR VETERANS TO REGISTER QUALIFYING FIREARMS.

    (a) Registration.--Subject to such regulations as the Secretary may 
prescribe, the applicable veteran or a member of such a veteran's 
family, who owns and possesses a qualifying firearm, may register such 
firearm in the National Firearms Registration and Transfer Record 
(described in section 5841 of the Internal Revenue Code of 1986) during 
the amnesty period.
    (b) Qualifying Firearm.--
            (1) In general.--For purposes of this section, the term 
        ``qualifying firearm'' means any firearm which was acquired--
                    (A) before October 31, 1968; and
                    (B) by a veteran, while such veteran was a member 
                of the Armed Forces and was stationed outside the 
                continental United States.
            (2) Presumption of validity.--With respect to any firearm, 
        in the absence of clear and convincing evidence to the 
        contrary--
                    (A) the Secretary shall accept as true and accurate 
                any affidavit, document, or other evidence submitted by 
                an individual to establish that such firearm meets the 
                requirements of paragraph (1); and
                    (B) the requirement of paragraph (1)(C) shall be 
                treated as met.
    (c) Hearings.--If the Secretary determines that any individual may 
not register a firearm under subsection (a) during the amnesty period, 
the Secretary, upon the request of such individual, shall--
            (1) provide such individual any evidence on which the 
        Secretary's decision is based; and
            (2) promptly hold a hearing to review such determination.
    (d) Limited Immunity.--
            (1) Criminal liability under title 18.--Any individual who 
        registers a firearm under subsection (a)--
                    (A) shall be treated, for purposes of subsections 
                (a)(3), (o), (v), and (w) of section 922 of title 18, 
                United States Code, as having lawfully acquired and 
                possessed the firearm before the date of the enactment 
                of chapter 44 of such title and each of such chapter's 
                provisions; and
                    (B) shall not be liable under chapter 44 of title 
                18, United States Code, for any violation of such 
                chapter which--
                            (i) is based solely on such individual's 
                        ownership, possession, transportation, 
                        importation, or alteration of such firearm; and
                            (ii) occurred before or concurrent with 
                        such registration.
            (2) Criminal liability under internal revenue code.--Except 
        as provided in paragraph (3), any individual who registers a 
        firearm under subsection (a) shall not be liable under chapter 
        53 or 75 of the Internal Revenue Code of 1986 for any violation 
        of such chapters which relates to such firearm and which 
        occurred before or concurrent with such registration.
            (3) Transfer tax liability.--Paragraph (2) shall not affect 
        the liability of any individual for any transfer tax imposed 
        under section 5811 of the Internal Revenue Code of 1986.
    (e) Forfeiture.--Any firearm registered under subsection (a) shall 
not be subject to seizure or forfeiture under chapter 53 or 75 of the 
Internal Revenue Code or chapter 44 of title 18, United States Code, 
for any violation of such chapters which relates to such firearm and 
which occurred before or concurrent with such registration.
    (f) Definitions.--For purposes of this section:
            (1) Amnesty period.--The term ``amnesty period'' means the 
        90-day period beginning on the date that is 90 days after the 
        date of the enactment of this Act.
            (2) Firearm.--The term ``firearm'' has the meaning given 
        such term in section 5845 of the Internal Revenue Code of 1986, 
        except that such term does not include--
                    (A) any device described in subsection (f)(1) of 
                such section; or
                    (B) any combination of parts--
                            (i) designed or intended for use in 
                        converting any device into a device described 
                        in subparagraph (A); or
                            (ii) from which a device described in 
                        subparagraph (A) may be readily assembled.
            (3) Applicable veteran.--With respect to any firearm, the 
        term ``applicable veteran'' means the veteran described in 
        subsection (b)(1)(B).
            (4) Veteran.--The term ``veteran'' has the meaning given 
        such term in section 101(2) of title 38, United States Code.
            (5) Family.--The term ``family'' means, with respect to a 
        veteran, the grandparents of such veteran, the grandparents of 
        such veteran's spouse, the lineal descendants of such 
        grandparents, and any spouse of such a lineal descendant. A 
        spouse of an individual who is legally separated from such 
        individual under a decree of divorce or separate maintenance 
        shall be treated as such individual's spouse for purposes of 
        this paragraph. Individuals related by the half blood or by 
        legal adoption shall be treated as if they were related by the 
        whole blood for purposes of this paragraph.
            (6) Continental united states.--The term ``continental 
        United States'' means the several States and the District of 
        Columbia, but does not include Alaska or Hawaii.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.

SEC. 3. TRANSFER OF MACHINEGUNS TO MUSEUMS.

    Section 922(o)(2) of title 18, United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
            ``(B) a transfer to or by, or possession by, a museum which 
        is open to the public and incorporated as a not-for-profit 
        corporation under applicable State law; or''.
Output: Veterans' Heritage Firearms Act of 2002 - Provides a 90-day amnesty period during which veterans and their family members can register in the National Firearms Registration and Transfer Record any firearm acquired before October 31, 1968, by a veteran while a member of the armed forces stationed outside the continental United States. Grants such an individual limited immunity under the Federal criminal code the Internal Revenue Code with respect to the acquisition, possession, transportation, or alteration of such firearm before or concurrent with such registration.Makes a prohibition against transfer or possession of a machine-gun inapplicable to a transfer to or by, or possession by, a museum which is open to the public and incorporated as a not-for-profit corporation under applicable State law.