Safer Neighborhoods Gun Buyback Act of 2021
This bill authorizes the Department of Justice's Bureau of Justice Assistance (BJA) to make grants to states, local governments, or gun dealers to conduct gun buyback programs. The BJA may distribute smart prepaid cards for use by a state, local government, or gun dealer to compensate individuals who dispose of firearms.
Additionally, the bill establishes a new criminal offense for using or accepting a smart prepaid card in the acquisition or transfer of a firearm or ammunition. A violator is subject to a fine, up to two years in prison, or both.
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Safer 
Neighborhoods Gun Buyback Act of 2021''.
    (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.

                   TITLE I--GUN BUYBACK GRANT PROGRAM

SEC. 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.

SEC. 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.

SEC. 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).

SEC. 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.

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.
            (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.

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 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.

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.

                      TITLE II--CRIMINAL PROVISION

SEC. 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:
``Sec. 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 2017) 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 of title 18, 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.''.
                                 <all>
Safer Neighborhoods Gun Buyback Act of 2021
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.
Safer Neighborhoods Gun Buyback Act of 2021
Rep. Payne, Donald M., Jr.