[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 868 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 868

   To amend the Internal Revenue Code of 1986 to increase the tax on 
 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

                May 4 (legislative day, April 19), 1993

Mrs. Murray (for herself, Mr. Simon, Mr. Kerry, Ms. Moseley-Braun, and 
 Mr. Mathews) 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, 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 ``Firearm Victims Prevention Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) according to the Centers for Disease Control, an 
        estimated 34,000 Americans die from firearm injuries each year, 
        including 25,000 from handgun violence;
            (2) firearms rank as the 8th leading cause of death in the 
        United States, and less than 5 percent of fatal shootings are 
        unintentional;
            (3) the National Center for Health Statistics reported in 
        March 1993 that, among Americans age 15 through 24, firearms 
        are the cause of more deaths than all natural causes combined;
            (4) from 1979 to 1989, the firearm homicide rate among 
        children age 15 through 19 increased 61 percent, while the 
        nonfirearm homicide rate fell 29 percent;
            (5) more than 135,000 students carry handguns to school 
        everyday, and an additional 270,000 students have carried a gun 
        to school at least once;
            (6) the United States leads industrialized nations in the 
        percentage of households with firearms and the number of 
        homicides with guns;
            (7) according to the Centers for Disease Control, the 
        estimated lifetime costs for firearm injuries that occurred in 
        1985 will be $14,400,000,000;
            (8) according to the 1991 Advisory Council on Social 
        Security, the overall annual cost of firearms injury to the 
        health care system in the United States is more than 
        $4,000,000,000;
            (9) public funds pay for an estimated 85 percent of the 
        cost of hospitalization for firearm injuries, excluding 
        professional fees and the cost of ambulance, physical therapy, 
        and other rehabilitative services;
            (10) the indirect costs of gun-related injuries, such as 
        disability payments, legal fees, and lost work time, are 
        estimated to be 2 times the estimated annual direct cost of 
        firearm injury;
            (11) more than 280,000 manufacturers, dealers and 
        individuals are licensed to sell firearms in the United States; 
        and
            (12) Federal firearm licenses are inexpensive, relatively 
        easy to obtain, and may only be revoked upon criminal 
        conviction.
    (b) Purpose.--The purpose of this Act is to help alleviate the 
public health care cost resulting from firearm-related injury and death 
by--
            (1) establishing a transactional tax on the purchase of the 
        firearms and ammunition most commonly associated with injury 
        and death;
            (2) raising licensing fees for dealers who sell such 
        firearms and ammunition; and
            (3) using funds generated from the transactional tax and 
        licensing fees to help offset the health care cost resulting 
        from firearm injury and death.

SEC. 3. INCREASE IN TAX ON HANDGUNS AND ASSAULT WEAPONS.

    (a) Increase in Manufacturer's Tax.--Section 4181 of the Internal 
Revenue Code of 1986 (relating to imposition of tax on firearms) is 
amended to read as follows:

``SEC. 4181. IMPOSITION OF TAX.

    ``(a) Imposition of Tax.--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 25 percent.--
                    ``Handguns.
                    ``Assault weapons.
                    ``Large capacity magazines.
                    ``Shells and cartridges used in handguns and 
                assault weapons.
            ``Articles taxable at 11 percent.--
                    ``Firearms (other than handguns, assault weapons, 
                and pistols or revolvers).
                    ``Shells and cartridges not taxable at 25 percent.
            ``Articles taxable at 10 percent.--
                    ``Pistols and revolvers not taxable at 25 percent.
    ``(b) Definitions.--For purposes of subsection (a)--
            ``(1) Handgun.--The term `handgun' means a firearm which, 
        at the time of manufacture, had a barrel of less than 12 inches 
        in length.
            ``(2) Assault weapon.--The term `assault weapon' means--
                    ``(A) a firearm--
                            ``(i) which--
                                    ``(I) has a barrel of between 12 
                                and 18 inches in length, and
                                    ``(II) is capable of receiving 
                                ammunition directly from a large 
                                capacity ammunition magazine, or
                            ``(ii) which is a semiautomatic firearm 
                        which is--
                                    ``(I) not recognized generally as 
                                particularly suitable for, or readily 
                                adaptable to, sporting purposes, or
                                    ``(II) concealable by a person, or
                    ``(B) a firearm which is substantially functionally 
                equivalent to a firearm described in subparagraph (A).
            ``(3) Large capacity ammunition magazine.--The term `large 
        capacity ammunition magazine' means a detachable magazine, 
        belt, drum, feed strip, or similar device which has, or which 
        may be readily restored (or converted) to a device which has, a 
        capacity of 15 or more rounds of ammunition.''
    (b) Retail Tax on Subsequent Transactions Involving Assault Weapons 
and Handguns.--
            (1) In general.--Chapter 31 of the Internal Revenue Code of 
        1986 (relating to retail excise taxes) is amended by adding at 
        the end the following new subchapter:

              ``Subchapter D--Handguns and Assault Weapons

                              ``Sec. 4056. Handguns and assault 
                                        weapons.

``SEC. 4056. HANDGUNS AND ASSAULT WEAPONS.

    ``(a) Imposition of Tax.--There is hereby imposed on any sale, 
transfer, or other disposition by any person of a handgun, assault 
weapon, large capacity magazine, or shells and cartridges used in 
handguns and assault weapons a tax equal to 25 percent of the price for 
which sold, transferred, or disposed of.
    ``(b) Exceptions.--
            ``(1) Coordination with manufacturer's tax.--If tax has 
        been paid under section 4181 with respect to any article, no 
        tax shall be imposed under subsection (a) on such article until 
        a sale, transfer, or disposition occurring after the first 
        retail sale of the article.
            ``(2) Defense department.--No tax shall be imposed by 
        subsection (a) on any sale described in section 4182(b).
    ``(c) Definitions.--For purposes of this section, the terms 
`handgun', `assault weapon', and `large capacity magazine' have the 
meanings given such terms by section 4181(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 Assault Weapons.''

    (c) Effective Date.--The amendments made by this section shall 
apply to sales, transfers, and other dispositions after the 30th day 
after the date of the enactment of this Act.

SEC. 4. HEALTH 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 thereof the following new section:

``SEC. 9512. HEALTH 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 ``Health 
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 Health 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 4181 
        which are attributable to the tax on articles subject to the 
        25-percent rate, and
            ``(3) the amounts described in section 923(a)(3)(D) of 
        title 18, United States Code.
    ``(c) Expenditures From the Trust Fund.--Funds in the Health Care 
Trust Fund shall be available, as provided in appropriations Acts, only 
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 except 
that no single hospital, trauma center or health care provider may 
receive more than one-tenth of 1 percent of the funds appropriated 
under this section.
    ``(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 60 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. Health Care Trust Fund.''

SEC. 5. LICENSE APPLICATION FEES FOR DEALERS IN FIREARMS.

    (a) In General.--Section 923(a)(3) of title 18, United States Code, 
is amended--
            (1) in subparagraph (B) by striking ``$25'' and inserting 
        ``$2,500'';
            (2) in subparagraph (C) by striking ``$10'' and inserting 
        ``$2,500''; and
            (3) by adding at the end the following new subparagraph 
        (D):
                    ``(D) There are hereby appropriated to the Health 
                Care Trust Fund established under section 9512 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 9512) United 
                States Code one-half of the revenue from the fees 
                collected under subparagraphs (B) and (C).''
    (b) Effective Date.--The amendments made by this section shall 
apply to license applications filed after the 30th day after the date 
of the enactment of this Act.

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