[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1798 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1798

   To amend the Internal Revenue Code of 1986 to increase the tax on 
  handguns and assault weapons and to impose a tax on the transfer of 
 handguns and assault weapons, to increase the license application fee 
 for gun dealers, and to use the proceeds from those increases to pay 
                 for medical care for gunshot victims.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 25, 1994

  Mr. Bradley introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the tax on 
  handguns and assault weapons and to impose a tax on the transfer of 
 handguns and assault weapons, to increase the license application fee 
 for gun dealers, and to use the proceeds from those increases to pay 
                 for medical care for gunshot victims.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gun Violence Health Care Costs 
Prevention Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) there are currently over 209,000,000 firearms in the 
        United States, 71,000,000 of which are handguns and 1,000,000 
        of which are semi-automatic assault weapons;
            (2) there are now over 280,000 federally licensed gun 
        dealers in the United States, as compared to 155,000 grocery 
        stores and 210,000 gas stations;
            (3) a Federal firearms dealer's license allows the licensee 
        to purchase firearms wholesale across State lines;
            (4) according to the Bureau of Alcohol, Tobacco and 
        Firearms, American taxpayers annually pay more than $28,000,000 
        in subsidies to operate the Federal firearms dealer licensing 
        system;
            (5) each year more than 24,000 Americans (65 Americans a 
        day) are killed with handguns, either in homicides, by 
        committing suicide, or by unintentional injuries;
            (6) handguns account for only one-third of all firearms in 
        the United States, but account for two-thirds of all firearm-
        related deaths;
            (7) in 1991, the United States led the developed world with 
        14,373 gun murders, as compared to 186 gun murders in Canada, 
        76 gun murders in Australia, 60 gun murders in England, and 74 
        gun murders in Japan;
            (8) in 1991, there were 11,497 murders committed with 
        handguns, as compared to 745 murders committed with rifles, 
        1,124 murders committed with shotguns, and 3,430 murders 
        committed with knives;
            (9) every 14 minutes someone in the United States dies from 
        a gunshot;
            (10) in 1989, there were over 240,000 nonfatal firearms 
        injuries;
            (11) 95 percent of the persons injured each year by a 
        handgun require emergency care or hospitalization;
            (12) firearms injuries, fatal and nonfatal, are the third 
        most costly type of injury overall;
            (13) the total lifetime costs associated with firearm 
        deaths and injuries were $14,400,000,000 in 1985, increased to 
        at least $16,200,000,000 by 1988, and increased to 
        $20,400,000,000 by 1990;
            (14) the health care cost of firearm-related injuries is 
        approximately $3,000,000,000 a year;
            (15) public funds pay for over 80 percent of the cost of 
        hospitalization for firearms injuries, excluding professional 
        fees and the cost of ambulance, physical therapy, and other 
        rehabilitative services;
            (16) youngsters carry an estimated 270,000 guns to school 
        every day;
            (17) gun violence is a major public health problem and 
        handguns, assault weapons, and the ammunition for these 
        firearms are major health hazards;
            (18) the cost of firearms and firearms dealers licenses 
        should reflect the health costs of firearms to our society;
            (19) the Federal taxes on handguns, assault weapons, and 
        the ammunition for these firearms should be significantly 
        increased to partially offset the health care costs of gun 
        violence;
            (20) the fees required for Federal firearms dealer's 
        licenses should be significantly increased to partially offset 
        the health care costs of gun violence; and
            (21) the increased Federal taxes should not be imposed on 
        firearms and ammunition which are recognized as particularly 
        suitable for, or readily adaptable to, sporting purposes.

SEC. 3. LICENSE APPLICATION FEES FOR DEALERS IN FIREARMS.

    (a) In General.--Section 923(a) of title 18, United States Code, is 
amended--
            (1) by striking subparagraph (B) of paragraph (3) and 
        inserting:
                    ``(B) who is not a dealer in destructive devices, a 
                fee of $3,000 for 3 years (including renewals).''; and
            (2) by adding at the end the following new flush sentence:
``There are hereby appropriated to the Gun Violence Trauma Care Trust 
Fund established under section 9512 of the Internal Revenue Code of 
1986 (26 U.S.C. 9512) 93 percent of the revenues from fees collected 
under paragraph (3)(B) for original licenses and 97 percent of the 
revenues from such fees for renewal licenses.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to license applications (including renewals) filed after the 
180th day after the date of the enactment of this Act.

SEC. 4. INCREASE IN TAX ON HANDGUNS AND ASSAULT WEAPONS.

    (a) Increase in Manufacturer's Tax.--
            (1) In general.--Part III of subchapter D of chapter 32 of 
        the Internal Revenue Code of 1986 (relating to tax on firearms) 
        is amended by adding at the end the following new section:

``SEC. 4183. IMPOSITION OF ADDITIONAL TAX ON HANDGUNS AND ASSAULT 
              WEAPONS.

    ``(a) Imposition of Tax.--In addition to any tax imposed by section 
4181, there is hereby imposed upon the sale by the manufacturer, 
producer, or importer of any of the following articles a tax equivalent 
to the specified percentage of the price for which so sold:
            ``Articles taxable at 20 percent.--
                    ``Handguns.
            ``Articles taxable at 19 percent.--
                    ``Semiautomatic assault weapons.
                    ``Shells and cartridges used in handguns and 
                semiautomatic assault weapons.
    ``(b) Definitions.--For purposes of subsection (a)--
            ``(1) Handgun.--The term `handgun' means any pistol or 
        revolver.
            ``(2) Semiautomatic assault weapon.--
                    ``(A) In general.--The term `semiautomatic assault 
                weapon' means--
                            ``(i) any of the semiautomatic firearms 
                        known as--
                                    ``(I) A.A. Arms AP-9;
                                    ``(II) Auto-Ordnance Thompson;
                                    ``(III) Barrett Light-Fifty;
                                    ``(IV) Beretta AR-70;
                                    ``(V) Bushmaster Auto Rifle;
                                    ``(VI) Calico M-900 and M-950;
                                    ``(VII) Cobray, Ingram and RPB MAC-
                                10 and MAC-11;
                                    ``(VIII) Colt AR-15 and Sporter;
                                    ``(IX) Encom MP-9 and MP-45;
                                    ``(X) Fabrique Nationale FN/FAL, 
                                FN/LAR, and FNC;
                                    ``(XI) Feather AT-9;
                                    ``(XII) Federal XP900 and XP450;
                                    ``(XIII) Franchi SPAS-12;
                                    ``(XIV) Intratec TEC-9 and TEC-22;
                                    ``(XV) Israeli Military Industries 
                                UZI and Galil;
                                    ``(XVI) Iver Johnson Enforcer 3000;
                                    ``(XVII) Norinco, Mitchell and Poly 
                                Technologies Avtomat Kalashnikovs;
                                    ``(XVIII) Steyr AUG; or
                                    ``(XIX) USAS-12;
                            ``(ii) a revolving-cylinder shotgun such as 
                        or similar to the Street Sweeper or Striker 12; 
                        and
                            ``(iii) a semiautomatic firearm designated 
                        by the Secretary as a semiautomatic assault 
                        weapon under subsection (c).
                    ``(B) Exceptions.--The term `semiautomatic assault 
                weapon' does not include (among other firearms)--
                            ``(i) any of the firearms known as--
                                    ``(I) Remington Model 1100 shotgun;
                                    ``(II) Remington Model 7400 rifle;
                                    ``(III) Mossberg Model 5500 
                                shotgun;
                                    ``(IV) HK Model 300 rifle;
                                    ``(V) Marlin Model 9 camp carbine;
                                    ``(VI) Browning High-Power rifle; 
                                or
                                    ``(VII) Remington Nylon 66 auto 
                                loading rifle;
                            ``(ii) a firearm that is a manually 
                        operated bolt action firearm;
                            ``(iii) a lever action firearm;
                            ``(iv) a slide action firearm; or
                            ``(v) a firearm that has been rendered 
                        permanently inoperable.
            ``(3) Shells and cartridges.--
                    ``(A) Handguns.--The term `cartridges used in 
                handguns' includes--
                            ``(i) any centerfire cartridge which has a 
                        cartridge case less than 1.3 inches in length,
                            ``(ii) any cartridge case which is less 
                        than 1.3 inches in length, or
                            ``(iii) any other ammunition listed under 
                        subsection (c)(1)(B) as likely to be used in a 
                        handgun.
                    ``(B) Semiautomatic assault weapons.--The term 
                `shells or cartridges used in semiautomatic assault 
                weapons' means any shells, cartridges, magazines, or 
                other ammunition which is listed under subsection 
                (c)(1)(B) as likely to be used in a semiautomatic 
                assault weapon.
    ``(c) Designation of Semiautomatic Assault Weapons and Taxable 
Ammunition.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, and annually thereafter, the 
        Secretary, in consultation with the Attorney General, shall--
                    ``(A) determine whether any other semiautomatic 
                firearm (other than a firearm described in subsection 
                (b)(2)(B)) should be designated as a semiautomatic 
                assault weapon in addition to those previously 
                designated by subsection (b)(2)(A) or by the Secretary 
                under this subsection, and
                    ``(B) publish a list of shells and cartridges which 
                are likely to be used in handguns and semiautomatic 
                assault weapons.
            ``(2) Criteria.--For purposes of paragraph (1)(A), the 
        Secretary shall by regulation designate as a semiautomatic 
        assault weapon a rifle, pistol, or shotgun that is a 
        semiautomatic firearm and that is described in paragraph (3), 
        (4), (5), or (6).
            ``(3) Replicas or duplicates.--A replica or duplicate in 
        any caliber of a semiautomatic firearm described in subsection 
        (b)(2)(A)(i) is a semiautomatic assault weapon.
            ``(4) Certain nonsporting firearms.--A rifle that is a 
        semiautomatic firearm is a semiautomatic assault weapon if it--
                    ``(A) is not generally recognized as being 
                particularly suitable for or readily adaptable to 
                sporting purposes,
                    ``(B) has an ability to accept a detachable 
                magazine, and
                    ``(C) has at least 2 of the following 
                characteristics:
                            ``(i) A folding or telescoping stock.
                            ``(ii) A pistol grip that protrudes 
                        conspicuously beneath the action of the weapon.
                            ``(iii) A bayonet mount.
                            ``(iv) A flash suppressor or threaded 
                        barrel designed to accommodate a flash 
                        suppressor.
                            ``(v) A grenade launcher.
            ``(5) Certain pistols.--A pistol that is a semiautomatic 
        firearm is a semiautomatic assault weapon if it--
                    ``(A) is not generally recognized as being 
                particularly suitable for or adaptable to sporting 
                purposes,
                    ``(B) has an ability to accept a detachable 
                magazine, and
                    ``(C) has at least 2 of the following 
                characteristics:
                            ``(i) An ammunition magazine that attaches 
                        to the pistol outside of the pistol grip.
                            ``(ii) A threaded barrel capable of 
                        accepting a barrel extender, flash suppressor, 
                        forward hand grip, or silencer.
                            ``(iii) A shroud that is attached to or 
                        partially or completely encircles the barrel 
                        and that permits the shooter to hold the 
                        firearm with the second hand without being 
                        burned.
                            ``(iv) A manufactured weight of 50 ounces 
                        or more when the pistol is unloaded.
                            ``(v) A semiautomatic version of an 
                        automatic firearm.
            ``(6) Certain shotguns.--A shotgun that is a semiautomatic 
        firearm is a semiautomatic assault weapon if it--
                    ``(A) is not generally recognized as being 
                particularly suitable for or adaptable to sporting 
                purposes, and
                    ``(B) has at least 2 of the following 
                characteristics:
                            ``(i) A folding or telescoping stock.
                            ``(ii) A pistol grip that protrudes 
                        conspicuously beneath the action of the weapon.
                            ``(iii) A fixed magazine capacity in excess 
                        of 6 rounds.
                            ``(iv) An ability to accept a detachable 
                        magazine.''.
            (2) Conforming amendments.--
                    (A) Section 4182(a) of such Code is amended by 
                inserting ``or 4183'' after ``section 4181''.
                    (B) Paragraph (6) of section 6091(b) of such Code 
                is amended by striking ``section 4181'' and inserting 
                ``section 4181 or 4183''.
                    (C) The table of sections for part III of 
                subchapter D of chapter 32 of such Code is amended by 
                adding at the end the following new item:

``Sec. 4183. Imposition of additional tax on handguns and assault 
                            weapons.''.
    (b) Tax on Subsequent Sales or Transfers Involving Assault Weapons 
and Handguns.--
            (1) In general.--Chapter 31 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        subchapter:

       ``Subchapter D--Handguns and Semiautomatic Assault Weapons

                              ``Sec. 4056. Handguns and semiautomatic 
                                        assault weapons.

``SEC. 4056. HANDGUNS AND SEMIAUTOMATIC ASSAULT WEAPONS.

    ``(a) Imposition of Tax.--There is hereby imposed on any sale, 
transfer, or other disposition by any person of a handgun, 
semiautomatic assault weapon, or shells and cartridges used in handguns 
and semiautomatic assault weapons a tax equal to 30 percent of the 
price for which sold, transferred, or disposed of.
    ``(b) Credit for Tax Previously Imposed.--
            ``(1) In general.--In the case of the 1st retail sale of 
        any article, and any sale, transfer, or disposition preceding 
        the 1st retail sale, the amount of tax imposed by subsection 
        (a) shall be reduced by the amount of tax imposed by this 
        section, section 4181, or section 4183 on any preceding sale, 
        transfer, or disposition of the article.
            ``(2) Refunds.--If a taxpayer establishes to the 
        satisfaction of the Secretary that tax was imposed in excess of 
        the amount due, the Secretary shall pay (without interest) to 
        the taxpayer the amount of such excess.
            ``(3) Requirements.--No reduction or refund shall be made 
        under this subsection unless the taxpayer meets such 
        requirements as the Secretary may prescribe with respect to 
        proof of payment of tax for any prior sale, transfer, or 
        disposition.
    ``(c) Exceptions.--
            ``(1) Coordination with manufacturer's tax.--No tax shall 
        be imposed under subsection (a) on a sale, transfer, or 
        disposition of an article if tax is imposed under section 4181 
        or 4183 with respect to such sale, transfer, or disposition.
            ``(2) Defense department.--No tax shall be imposed by 
        subsection (a) on any sale described in section 4182(b).
    ``(d) Definitions.--For purposes of this section, the terms 
`handgun', `semiautomatic assault weapon', and `shells and cartridges 
used in handguns and semiautomatic assault weapons' have the meanings 
given such terms by section 4183(b).''.
            (2) Conforming amendment.--The table of subchapters for 
        chapter 31 of such Code is amended by adding at the end the 
        following new item:

     ``Subchapter D--Handguns and Semiautomatic Assault Weapons.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to sales, transfers, and other dispositions after the 180th day 
after the date of the enactment of this Act.

SEC. 5. GUN VIOLENCE TRAUMA CARE TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following new section:

``SEC. 9512. GUN VIOLENCE TRAUMA CARE TRUST FUND.

    ``(a) Establishment of the Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the `Gun 
Violence Trauma Care Trust Fund', consisting of such amounts as may be 
appropriated or credited to such Trust Fund as provided in this section 
or section 9602(b).
    ``(b) Transfers to the Trust Fund.--There are hereby appropriated 
to the Gun Violence Trauma Care Trust Fund amounts equivalent to--
            ``(1) the taxes received in the Treasury under section 
        4056,
            ``(2) the taxes received in the Treasury under section 
        4183, and
            ``(3) the amounts described in the last sentence of section 
        923(a) of title 18, United States Code.
    ``(c) Expenditures From the Trust Fund.--Funds in the Gun Violence 
Trauma Care Trust Fund shall be available, as provided in 
appropriations Acts, only--
            ``(1) for the purpose of making grants to assist hospitals, 
        trauma centers, or other health care providers that have 
        incurred substantial uncompensated costs in providing medical 
        care to gunshot victims, or
            ``(2) in the event a national health program is established 
        which compensates for those costs, for the purpose of 
        reimbursing that program for its costs in providing the 
        compensation.
    ``(d) Eligibility for Trust Fund Moneys.--A hospital, trauma 
center, or other health care provider is eligible to apply for grants 
from the Trust Fund for any calendar year if the hospital, trauma 
center, or health care provider--
            ``(1) is in compliance with Federal and State certification 
        and licensing requirements;
            ``(2) is a not-for-profit entity; and
            ``(3) has incurred substantial uncompensated costs during 
        the previous calendar year in providing medical care to gunshot 
        victims.
    ``(e) Regulations for Trust Fund.--The Secretary shall, not later 
than 180 days after the date of enactment of this section and in 
consultation with the Secretary of Health and Human Services, issue 
such regulations as are necessary to implement the provisions of this 
section.''.
    (b) Conforming Amendment.--The table of sections for subchapter A 
of chapter 98 of such Code is amended by adding at the end the 
following new item:

                              ``Sec. 9512. Gun Violence Trauma Care 
                                        Trust Fund.''.

                                 <all>

S 1798 IS----2