[Congressional Record Volume 169, Number 156 (Tuesday, September 26, 2023)]
[Senate]
[Pages S4680-S4682]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DURBIN (for himself, Mr. Blumenthal, Mrs. Feinstein, Mr.
Wyden, Mr. Welch, Mr. Kelly, and Ms. Hirono):
S. 2926. A bill to prohibit the importation, sale, manufacture,
transfer, or possession of .50 caliber rifles, and for other purposes;
to the Committee on Finance.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2926
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 ``Stop Arming Cartels Act of
2023''.
SEC. 2. PROHIBITION ON RIFLES CAPABLE OF FIRING .50 CALIBER
AMMUNITION.
(a) In General.--Chapter 44 of title 18, United States
Code, is amended--
(1) in section 922, by adding at the end the following:
``(aa) Rifles Capable of Firing .50 Caliber Ammunition.--
``(1) In general.--Except as provided in paragraph (2), it
shall be unlawful for any person to import, sell,
manufacture, transfer, or possess, in or affecting interstate
or foreign commerce, a rifle capable of firing .50 caliber
ammunition.
``(2) Exceptions.--
``(A) Government use.--Paragraph (1) shall not apply to the
importation for, manufacture for, sale to, transfer to, or
possession by the United States, a department or agency of
the United States, a State, or a department, agency, or
political subdivision of a State, of a rifle capable of
firing .50 caliber ammunition.
``(B) Grandfathered rifles.--Paragraph (1) shall not apply
to the sale, transfer, or possession of any rifle otherwise
lawfully possessed on or before the date of enactment of the
Stop Arming Cartels Act of 2023.''; and
(2) in section 924(a)(1)(B), by striking ``or (q)'' and
inserting ``(q), or (aa)''.
(b) Inclusion of Certain Rifles as Firearms Under National
Firearms Act.--
(1) In general.--Section 5845(a) of the Internal Revenue
Code of 1986 is amended by striking ``and (8) a destructive
device'' and inserting ``(8) a destructive device; and (9) a
rifle which is capable of firing .50 caliber ammunition and
is lawfully possessed on or before the date of enactment of
the Stop Arming Cartels Act of 2023''.
(2) Effective date.--
(A) In general.--Subject to subparagraph (B), the
amendments made by this subsection shall take effect on the
date which is 12 months after the date of enactment of this
Act.
(B) Registration.--
(i) In general.--Notwithstanding subparagraph (A) or any
other provision of law, any person possessing a rifle which
is capable of firing .50 caliber ammunition which is not
registered to such person in the National Firearms
Registration and Transfer Record shall register each such
rifle so possessed with the Secretary in such form and manner
as the Secretary may require within the 12-month period
immediately following the date of enactment of this Act. No
fee or tax shall be imposed with respect to any registration
required under this subparagraph.
(ii) Inclusion in registry.--Any registration described in
clause (i) shall become a part of the National Firearms
Registration and Transfer Record. No information or evidence
required to be submitted or retained by a natural person to
register a firearm under this subparagraph shall be used,
directly or indirectly, as evidence against such person in
any criminal proceeding with respect to a prior or concurrent
violation of law.
(C) Definitions.--In this paragraph:
(i) National firearms registration and transfer record.--
The term ``National Firearms Registration and Transfer
Record'' means the registry established pursuant to section
5841 of the Internal Revenue Code of 1986.
(ii) Secretary.--The term ``Secretary'' has the same
meaning given such term under section 7701(a)(11)(B) of the
Internal Revenue Code of 1986.
SEC. 3. EXCEPTION TO COVERAGE UNDER PROTECTION OF LAWFUL
COMMERCE IN ARMS ACT.
Section 4(5)(A) of the Protection of Lawful Commerce in
Arms Act (15 U.S.C. 7903(5)(A)) is amended--
(1) in clause (v), by striking ``or'' at the end;
(2) in clause (vi), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following:
``(vii) an action brought against a manufacturer or seller
that knowingly sells or transfers a qualified product, or
attempts or conspires to do so, knowing or having reasonable
cause to believe that the transaction is prohibited under
section 805(c) of the Foreign Narcotics Kingpin Designation
Act (21 U.S.C. 1904(c)).''.
SEC. 4. FEDERAL FIREARM PROHIBITOR FOR SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKERS AND CERTAIN OTHER FOREIGN
PERSONS.
(a) In General.--Section 922(d) of title 18, United States
Code, is amended--
(1) in paragraph (10), by striking ``or'' at the end;
(2) by redesignating paragraph (11) as paragraph (12);
(3) by inserting after paragraph (10) the following:
``(11) is--
``(A) a significant foreign narcotics trafficker publicly
identified by the President in a report under subsection (b)
or (h)(1) of section 804 of the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1903); or
``(B) a foreign person designated by the Secretary of the
Treasury under section 805(b) of the Foreign Narcotics
Kingpin Designation Act (21 U.S.C. 1904(b)); or''; and
(4) in paragraph (12), as so redesignated, by striking
``(10)'' and inserting ``(11)''.
[[Page S4681]]
(b) Conforming Amendments Relating to NICS.--Section 103 of
the Brady Handgun Violence Prevention Act (34 U.S.C. 40901)
is amended--
(1) in subsection (b)(2)(D), by inserting ``or that
transfer of a firearm or ammunition to the individual would
violate subsection (d)(11) of such section 922'' after
``section 922 of title 18, United States Code,'';
(2) in subsection (e)(1)--
(A) in subparagraph (A), by inserting ``or to whom transfer
of a firearm would violate subsection (d)(11) of such section
922,'' after ``section 922 of title 18, United States Code or
State law,'';
(B) in subparagraph (C), by inserting ``or that transfer of
a firearm or ammunition to the person would violate
subsection (d)(11) of such section 922,'' after ``section 922
of title 18, United States Code,'';
(C) in subparagraph (F)(iii)(I), by striking ``(g) or (n)''
and inserting ``(d)(11), (g), or (n)''; and
(D) in subparagraph (G)(i), by striking ``(g) or (n)'' and
inserting ``(d)(11), (g), or (n)'';
(3) in subsection (g), by inserting ``or that transfer of a
firearm to a prospective transferee would violate subsection
(d)(11) of such section 922,'' after ``section 922 of title
18, United States Code or State law,''; and
(4) in subsection (i)(2)--
(A) by striking ``persons,'' and inserting ``persons who
are''; and
(B) by inserting before the period at the end the
following: ``, or to whom transfer of a firearm would violate
subsection (d)(11) of such section 922''.
SEC. 5. ADDING RIFLES TO MULTIPLE FIREARM SALES REPORTING
REQUIREMENTS.
Section 923(g)(3)(A) of title 18, United States Code, is
amended by striking ``pistols, or revolvers, or any
combination of pistols and revolvers'' and inserting
``pistols, revolvers, or rifles, or any combination of
pistols, revolvers, and rifles''.
______
By Mr. DURBIN (for himself, Mr. Wyden, Mr. Blumenthal, Mr.
Merkley, Mr. Brown, Mr. Markey, Ms. Hirono, Mrs. Murray, and
Mr. Reed):
S. 2929. A bill to amend the Internal Revenue Code of 1986 to provide
tax rate parity among all tobacco products, and for other purposes; to
the Committee on Finance.
Mr. DURBIN. Madam President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2929
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 ``Tobacco Tax Equity Act of
2023''.
SEC. 2. INCREASING EXCISE TAXES ON CIGARETTES AND
ESTABLISHING EXCISE TAX EQUITY AMONG ALL
TOBACCO PRODUCT TAX RATES.
(a) Tax Parity for Roll-Your-Own Tobacco.--Section 5701(g)
of the Internal Revenue Code of 1986 is amended by striking
``$24.78'' and inserting ``$49.56''.
(b) Tax Parity for Pipe Tobacco.--Section 5701(f) of the
Internal Revenue Code of 1986 is amended by striking
``$2.8311 cents'' and inserting ``$49.56''.
(c) Tax Parity for Smokeless Tobacco.--
(1) Section 5701(e) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (1), by striking ``$1.51'' and inserting
``$26.84'';
(B) in paragraph (2), by striking ``50.33 cents'' and
inserting ``$10.74''; and
(C) by adding at the end the following:
``(3) Smokeless tobacco sold in discrete single-use
units.--On discrete single-use units, $100.66 per
thousand.''.
(2) Section 5702(m) of such Code is amended--
(A) in paragraph (1), by striking ``or chewing tobacco''
and inserting ``, chewing tobacco, or discrete single-use
unit'';
(B) in paragraphs (2) and (3), by inserting ``that is not a
discrete single-use unit'' before the period in each such
paragraph; and
(C) by adding at the end the following:
``(4) Discrete single-use unit.--The term `discrete single-
use unit' means any product containing, made from, or derived
from tobacco or nicotine that--
``(A) is not intended to be smoked; and
``(B) is in the form of a lozenge, tablet, pill, pouch,
dissolvable strip, or other discrete single-use or single-
dose unit.''.
(d) Tax Parity for Small Cigars.--Paragraph (1) of section
5701(a) of the Internal Revenue Code of 1986 is amended by
striking ``$50.33'' and inserting ``$100.66''.
(e) Tax Parity for Large Cigars.--
(1) In general.--Paragraph (2) of section 5701(a) of the
Internal Revenue Code of 1986 is amended by striking ``52.75
percent'' and all that follows through the period and
inserting the following: ``$49.56 per pound and a
proportionate tax at the like rate on all fractional parts of
a pound but not less than 10.066 cents per cigar.''.
(2) Guidance.--The Secretary of the Treasury, or the
Secretary's delegate, may issue guidance regarding the
appropriate method for determining the weight of large cigars
for purposes of calculating the applicable tax under section
5701(a)(2) of the Internal Revenue Code of 1986.
(3) Conforming amendment.--Section 5702 of such Code is
amended by striking subsection (l).
(f) Tax Parity for Roll-Your-Own Tobacco and Certain
Processed Tobacco.--Subsection (o) of section 5702 of the
Internal Revenue Code of 1986 is amended by inserting ``, and
includes processed tobacco that is removed for delivery or
delivered to a person other than a person with a permit
provided under section 5713, but does not include removals of
processed tobacco for exportation'' after ``wrappers
thereof''.
(g) Imposition of Tax on Nicotine for Use in Vaping, etc.--
(1) In general.--Section 5701 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Nicotine.--On taxable nicotine, manufactured in or
imported into the United States, there shall be imposed a tax
equal to the dollar amount specified in section 5701(b)(1)
per 1,810 milligrams of nicotine (and a proportionate tax at
the like rate on any fractional part thereof).''.
(2) Taxable nicotine.--Section 5702 of such Code is amended
by adding at the end the following new subsection:
``(q) Taxable Nicotine.--
``(1) In general.--Except as otherwise provided in this
subsection, the term `taxable nicotine' means any nicotine
which has been extracted, concentrated, or synthesized.
``(2) Exception for products approved by food and drug
administration.--Such term shall not include any nicotine if
the manufacturer or importer thereof demonstrates to the
satisfaction of the Secretary of Health and Human Services
that such nicotine will be used in--
``(A) a drug--
``(i) that is approved under section 505 of the Federal
Food, Drug, and Cosmetic Act or licensed under section 351 of
the Public Health Service Act; or
``(ii) for which an investigational use exemption has been
authorized under section 505(i) of the Federal Food, Drug,
and Cosmetic Act or under section 351(a) of the Public Health
Service Act; or
``(B) a combination product (as described in section 503(g)
of the Federal Food, Drug, and Cosmetic Act), the constituent
parts of which were approved or cleared under section 505,
510(k), or 515 of such Act.
``(3) Coordination with taxation of other tobacco
products.--Tobacco products meeting the definition of cigars,
cigarettes, smokeless tobacco, pipe tobacco, and roll-your-
own tobacco in this section shall be classified and taxed as
such despite any concentration of the nicotine inherent in
those products or any addition of nicotine to those products
during the manufacturing process.
``(4) Regulations.--The Secretary shall prescribe such
regulations or other guidance as is necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance for coordinating the taxation
of tobacco products and taxable nicotine to protect revenue
and prevent double taxation.''.
(3) Taxable nicotine treated as a tobacco product.--Section
5702(c) of such Code is amended by striking ``and roll-your-
own tobacco'' and inserting ``roll-your-own tobacco, and
taxable nicotine''.
(4) Manufacturer of taxable nicotine.--Section 5702 of such
Code, as amended by paragraph (2), is amended by adding at
the end the following new subsection:
``(r) Manufacturer of Taxable Nicotine.--
``(1) In general.--Any person who extracts, concentrates,
or synthesizes nicotine shall be treated as a manufacturer of
taxable nicotine (and as manufacturing such taxable
nicotine).
``(2) Application of rules related to manufacturers of
tobacco products.--Any reference to a manufacturer of tobacco
products, or to manufacturing tobacco products, shall be
treated as including a reference to a manufacturer of taxable
nicotine, or to manufacturing taxable nicotine,
respectively.''.
(h) Increasing Tax on Cigarettes.--
(1) Small cigarettes.--Section 5701(b)(1) of such Code is
amended by striking ``$50.33'' and inserting ``$100.66''.
(2) Large cigarettes.--Section 5701(b)(2) of such Code is
amended by striking ``$105.69'' and inserting ``$211.38''.
(i) Tax Rates Adjusted for Inflation.--Section 5701 of such
Code, as amended by subsection (g), is amended by adding at
the end the following new subsection:
``(j) Inflation Adjustment.--
``(1) In general.--In the case of any calendar year
beginning after 2023, the dollar amounts provided under this
chapter shall each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2022' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $0.01, such amount shall be rounded
to the next highest multiple of $0.01.''.
(j) Floor Stocks Taxes.--
(1) Imposition of tax.--On tobacco products manufactured in
or imported into the United States which are removed before
any tax increase date and held on such date for sale by any
person, there is hereby imposed a tax in an amount equal to
the excess of--
(A) the tax which would be imposed under section 5701 of
the Internal Revenue Code of
[[Page S4682]]
1986 on the article if the article had been removed on such
date, over
(B) the prior tax (if any) imposed under section 5701 of
such Code on such article.
(2) Credit against tax.--Each person shall be allowed as a
credit against the taxes imposed by paragraph (1) an amount
equal to $500. Such credit shall not exceed the amount of
taxes imposed by paragraph (1) on such date for which such
person is liable.
(3) Liability for tax and method of payment.--
(A) Liability for tax.--A person holding tobacco products
on any tax increase date to which any tax imposed by
paragraph (1) applies shall be liable for such tax.
(B) Method of payment.--The tax imposed by paragraph (1)
shall be paid in such manner as the Secretary shall prescribe
by regulations.
(C) Time for payment.--The tax imposed by paragraph (1)
shall be paid on or before the date that is 120 days after
the effective date of the tax rate increase.
(4) Articles in foreign trade zones.--Notwithstanding the
Act of June 18, 1934 (commonly known as the Foreign Trade
Zone Act, 48 Stat. 998, 19 U.S.C. 81a et seq.), or any other
provision of law, any article which is located in a foreign
trade zone on any tax increase date shall be subject to the
tax imposed by paragraph (1) if--
(A) internal revenue taxes have been determined, or customs
duties liquidated, with respect to such article before such
date pursuant to a request made under the first proviso of
section 3(a) of such Act, or
(B) such article is held on such date under the supervision
of an officer of the United States Customs and Border
Protection of the Department of Homeland Security pursuant to
the second proviso of such section 3(a).
(5) Definitions.--For purposes of this subsection--
(A) In general.--Any term used in this subsection which is
also used in section 5702 of such Code shall have the same
meaning as such term has in such section.
(B) Tax increase date.--The term ``tax increase date''
means the effective date of any increase in any tobacco
product excise tax rate pursuant to the amendments made by
this section (other than subsection (j) thereof).
(C) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(6) Controlled groups.--Rules similar to the rules of
section 5061(e)(3) of such Code shall apply for purposes of
this subsection.
(7) Other laws applicable.--All provisions of law,
including penalties, applicable with respect to the taxes
imposed by section 5701 of such Code shall, insofar as
applicable and not inconsistent with the provisions of this
subsection, apply to the floor stocks taxes imposed by
paragraph (1), to the same extent as if such taxes were
imposed by such section 5701. The Secretary may treat any
person who bore the ultimate burden of the tax imposed by
paragraph (1) as the person to whom a credit or refund under
such provisions may be allowed or made.
(k) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2)
through (4), the amendments made by this section shall apply
to articles removed (as defined in section 5702(j) of the
Internal Revenue Code of 1986) after the last day of the
month which includes the date of the enactment of this Act.
(2) Discrete single-use units and processed tobacco.--The
amendments made by subsections (c)(1)(C), (c)(2), and (f)
shall apply to articles removed (as defined in section
5702(j) of the Internal Revenue Code of 1986) after the date
that is 6 months after the date of the enactment of this Act.
(3) Large cigars.--The amendments made by subsection (e)
shall apply to articles removed after December 31, 2023.
(4) Taxable nicotine.--The amendments made by subsection
(g) shall apply to articles removed in calendar quarters
beginning after the date which is 180 days after the date of
the enactment of this Act.
(l) Transition Rule for Permit and Bond Requirements.--A
person which is lawfully engaged in business as a
manufacturer or importer of taxable nicotine (within the
meaning of subchapter A of chapter 52 of the Internal Revenue
Code of 1986, as amended by this section) on the date of the
enactment of this Act, first becomes subject to the
requirements of subchapter B of chapter 52 of such Code by
reason of the amendments made by this section, and submits an
application under such subchapter B to engage in such
business not later than 90 days after the date of the
enactment of this Act, shall not be denied the right to carry
on such business by reason of such requirements before final
action on such application.
____________________