[House Report 118-917]
[From the U.S. Government Publishing Office]


118th Congress  }                                        { Rept. 118-917
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                        {  Part 1

======================================================================



 
              LAW ENFORCEMENT INNOVATE TO DE-ESCALATE ACT

                                _______
                                

 December 18, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 3269]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3269) to modernize Federal firearms laws to account 
for advancements in technology and less-than-lethal weapons, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................3
          A. Purpose and Summary.................................     3
          B. Background and Need for Legislation.................     3
          C. Legislative History.................................     4
          D. Designated Hearing..................................     4
 II. EXPLANATION OF THE BILL..........................................4
          A. Exemption of Certain Less-than-Lethal Projectile 
              Devices from Title 18 of the U.S. Code, the 
              Firearms and Ammunition Excise Tax, and the 
              National Firearms Act (secs. 2, 3, and 4 of the 
              bill and secs. 4182 and 5845 of the Code)..........     4
III. VOTE OF THE COMMITTEE............................................8
 IV. BUDGET EFFECTS OF THE BILL.......................................8
          A. Committee Estimate of Budgetary Effects.............     8
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     9
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     9
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......10
          A. Committee Oversight Findings and Recommendations....    10
          B. Statement of General Performance Goals and 
              Objectives.........................................    10
          C. Tax Complexity Analysis.............................    10
          D. Information Relating to Unfunded Mandates...........    10
          E. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    11
          F. Duplication of Federal Programs.....................    11
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........11
          A. Changes in Existing Law Proposed by the Bill, as 
              Reported...........................................    11
VII. DISSENTING VIEWS................................................23

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Law Enforcement Innovate to De-
Escalate Act''.

SEC. 2. EXEMPTION OF CERTAIN LESS-THAN-LETHAL PROJECTILE DEVICES FROM 
                    RESTRICTIONS UNDER TITLE 18, UNITED STATES CODE.

  (a) In General.--Section 921(a) of title 18, United States Code, is 
amended--
          (1) in the 2nd sentence of paragraph (3), by inserting ``or a 
        less-than-lethal projectile device'' before the period; and
          (2) by adding at the end the following:
  ``(38) The term `less-than-lethal projectile device' means a device 
with a bore or multiple bores, that--
          ``(A) is not designed or intended to expel a projectile at a 
        velocity exceeding 500 feet per second by any means; and
          ``(B) is designed or intended to be used in a manner that is 
        not likely to cause death or serious bodily injury.''.

SEC. 3. EXEMPTION OF CERTAIN LESS-THAN-LETHAL PROJECTILE DEVICES FROM 
                    FIREARMS AND AMMUNITION TAX.

  (a) In General.--Section 4182 of the Internal Revenue Code of 1986 is 
amended by redesignating subsection (d) as subsection (e) and by 
inserting after subsection (c) the following new subsection:
  ``(d) Less-than-lethal Projectile Devices.--
          ``(1) In general.--The tax imposed by section 4181 shall not 
        apply to--
                  ``(A) any less-than-lethal projectile device,
                  ``(B) any device contained on the most recent list 
                made available by the Secretary under paragraph (3)(B), 
                and
                  ``(C) any shell or cartridge that meets the 
                requirement of paragraph (2)(B) and is designed for use 
                in a device referred to in subparagraph (A) or (B).
          ``(2) Less-than-lethal projectile device.--The term `less-
        than-lethal projectile device' means a device with a bore or 
        multiple bores, that--
                  ``(A) is not designed or intended to expel a 
                projectile at a velocity exceeding 500 feet per second 
                by any means, and
                  ``(B) is designed or intended to be used in a manner 
                that is not likely to cause death or serious bodily 
                injury.
          ``(3) Annual review of new and emerging technologies.--
                  ``(A) List of less-than-lethal projectile devices.--
                The Secretary shall make publicly available a list of 
                devices that the Secretary has determined are described 
                in paragraph (2) and shall update such list annually to 
                take into account new devices.
                  ``(B) List of non-lethal devices the projectiles of 
                which exceed 500 feet per second.--
                          ``(i) In general.--The Secretary shall make 
                        publicly available a list of devices that the 
                        Secretary has determined are not described in 
                        paragraph (2) but would be so described if such 
                        paragraph were applied without regard to 
                        subparagraph (A) thereof, and shall update such 
                        list annually to take into account new devices.
                          ``(ii) Report to congress.--The Secretary 
                        shall annually submit a written report to the 
                        Committee on Ways and Means of the House of 
                        Representatives and the Committee on Finance of 
                        the Senate regarding the annual list of devices 
                        described in clause (i), including a copy of 
                        such list, a description of the devices that 
                        were considered for inclusion on such list, and 
                        the reasons for including or excluding such 
                        devices from such list.''.
  (b) Effective Date.--The amendments made by this section shall apply 
to articles sold by the manufacturer, producer, or importer after the 
date of the enactment of this Act.

SEC. 4. EXEMPTION OF CERTAIN LESS-THAN-LETHAL PROJECTILE DEVICES FROM 
                    NATIONAL FIREARMS ACT.

  Section 5845(a) of the Internal Revenue Code of 1986 is amended by 
striking ``an antique firearm or'' and inserting ``any antique firearm, 
any less-than-lethal projectile device (as defined in section 
4182(d)(2)), any device referred to in section 4182(d)(1)(B), or''.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 3269, the ``Law Enforcement Innovate to De-
Escalate Act,'' as ordered reported by the Committee on Ways 
and Means on September 11, 2024, amends present law to provide 
that a less-than-lethal projectile device is not a firearm for 
purposes of the Gun Control Act (GCA) of 1968. Under the 
proposed legislation, a ``less-than-lethal device'' is defined 
as a device with a bore or multiple bores that is not designed 
or intended to expel a projectile at a velocity exceeding 500 
feet per second by any means and is designed or intended to be 
used in a manner that is not likely to cause death of serious 
bodily injury. This legislation also amends the Internal 
Revenue Code (IRC) to provide that the firearms and ammunition 
excise tax does not apply to a less-than-lethal projection 
device. Additionally, the proposed legislation modifies the 
definition of ``firearm'' for purposes of the National Firearms 
Act (NFA) and provides that less-than-lethal projectile devices 
are not firearms for purposes of the NFA and thus are not 
subject to the occupational, transfer, or making taxes. This 
legislation is generally effective on the date of enactment, 
although the part of the proposal relating to the exemption of 
certain devices from the firearms and ammunition excise tax 
applies to articles sold by the manufacturer, producer, or 
importer after the date of enactment.

                 B. Background and Need for Legislation

    Under current federal regulation, certain less-than-lethal 
devices, like tasers, are defined as ``firearms,'' and as such 
are subject to the GCA, the Firearms and Ammunition Excise Tax 
(FAET), and the NFA. Under the IRC, an excise tax is imposed on 
the sales by the manufacturer, producer, or importer of certain 
firearms and ammunition. Pursuant to the FAET, a 10 percent tax 
is imposed on the sale of pistols and revolvers, and an 11 
percent tax is imposed on the sale of other firearms, shells, 
and cartridges unless otherwise provided for in the statute or 
implementing regulations. However, the excise tax does not 
apply to machine guns and short barreled firearms, and several 
additional exemptions are available as well.
    Under the NFA, a ``firearm'' means: (1) a shotgun having a 
barrel or barrels of less than 18 inches in length; (2) a 
weapon made from a shotgun if such weapon as modified has an 
overall length of less than 26 inches or a barrel or barrels of 
less than 18 inches in length; (3) a rifle having a barrel or 
barrels of less than 16 inches in length; (4) a weapon made 
from a rifle if such weapon as modified has an overall length 
of less than 26 inches or a barrel or barrels of less than 16 
inches in length; (5) any other weapon; (6) a machine gun; (7) 
a silencer; and (8) a destructive device. In contrast, the GCA 
defines a ``firearm'' as: (1) a weapon which will or is 
designed to or may readily be converted to expel a projectile 
by the action of an explosive; (2) the frame or receiver of 
such weapon; (3) a firearm muffler or firearm silencer; or (4) 
a destructive device.
    As a result, and due to outdated and misaligned regulatory 
standards, innovative less-than-lethal devices and 
technologies, such as tasers, are subject to this tax--despite 
the fact that it was never intended to apply to these devices 
and technologies. Inconsistent current classification and 
regulation of less-than-lethal devices results in delays, 
regulatory burdens, and increased costs. As such, and as 
technology continues to evolve, this legislation seeks to 
harmonize the tax code to meet growing needs that prioritize 
lifesaving innovations and keep our communities safe.

                         C. Legislative History


Background

    H.R. 3269 was introduced on May 11, 2023, and was referred 
to the Committee on Ways and Means.

Committee Hearings

    On May 24, 2024, the Committee held a field hearing on 
``Empowering Native American and Rural Communities.''

Committee Action

    The Committee on Ways and Means marked up H.R. 3269, the 
``Law Enforcement Innovate to De-Escalate Act,'' on September 
11, 2024, and ordered the bill, as amended, favorably reported 
(with a quorum being present).

                         D. Designated Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop and consider H.R. 3269:
    On May 10, 2024, the Committee held a field hearing on 
``Empowering Native American and Rural Communities.''

                      II. EXPLANATION OF THE BILL


A. Exemption of Certain Less-Than-Lethal Projectile Devices From Title 
 18 of the U.S. Code, the Firearms and Ammunition Excise Tax, and the 
National Firearms Act (Secs. 2, 3, and 4 of the Bill and Secs. 4182 and 
                           5845 of the Code)


                              PRESENT LAW

    Generally, the Code imposes an excise tax on the sales by 
the manufacturer, producer, or importer of certain firearms and 
ammunition.\1\ Pistols and revolvers are generally taxable at 
10 percent of sales price. Firearms (other than pistols and 
revolvers), shells, and cartridges are generally taxable at 11 
percent of sales price.\2\ For this purpose, a firearm is a 
portable weapon, such as a rifle, carbine, machine gun, 
shotgun, or fowling piece, from which a shot, bullet, or other 
projectile may be discharged by an explosive.\3\
---------------------------------------------------------------------------
    \1\Sec. 4181.
    \2\Ibid.
    \3\See 27 C.F.R. sec. 53.11 (2006).
---------------------------------------------------------------------------
    However, the excise tax does not apply to machine guns and 
short barreled firearms.\4\ In addition, firearms, pistols, and 
revolvers manufactured, produced, or imported by a person who 
in aggregate manufactures, produces, or imports less than 50 
firearms, pistols, and revolvers during the calendar year are 
exempt from the excise tax.\5\ Sales of firearms, pistols, 
revolvers, shells, and cartridges to the Department of Defense, 
the Coast Guard, State and local governments, nonprofit 
educational organizations, and for use in vessels and aircraft 
are also exempt from the excise tax.\6\
---------------------------------------------------------------------------
    \4\Sec. 4182(a).
    \5\Sec. 4182(c).
    \6\Secs. 4182(b) and 4221(a).
---------------------------------------------------------------------------
    The National Firearms Act (the ``NFA''),\7\ which is 
codified as chapter 53 of the Code, requires importers, 
manufacturers, and dealers in firearms to pay a special 
occupational tax and register with the Treasury, and also 
imposes excise taxes on the transfer and making of firearms.\8\ 
Generally, in order to engage in business, an importer or 
manufacturer of firearms is required to pay a special 
occupational tax of $1,000 for each year and for each place of 
business; a dealer of firearms is required to pay a special 
occupational tax of $500 for each year and for each place of 
business.\9\ However, persons who conduct businesses 
exclusively with, or on behalf of, the United States or any 
department or agency of the United States are generally exempt 
from the special occupational tax.\10\ Generally, importers, 
manufacturers, and dealers in firearms are required to register 
with the Secretary of the Treasury (the ``Secretary'') in each 
internal revenue district in which the business is carried 
on.\11\
---------------------------------------------------------------------------
    \7\Pub. L. No. 73-474.
    \8\Secs. 5801 et seq.
    \9\Sec. 5801(a).
    \10\Sec. 5851.
    \11\Sec. 5802.
---------------------------------------------------------------------------
    An excise tax of $200 is generally imposed on each firearm 
that is transferred (``transfer tax'') or made (``making 
tax'').\12\ However, a firearm may be transferred to the United 
States, or a department, independent establishment, or agency 
of the United States, without payment of the transfer tax.\13\ 
A firearm may also be transferred or made without payment of 
the transfer tax or making tax, respectively, if the firearm is 
transferred or made by or on behalf of a State, possession of 
the United States, any political subdivision, or any official 
police organization of a government entity engaged in criminal 
investigations.\14\ Further, a firearm registered to a person 
that is qualified under the NFA to engage in business as an 
importer, manufacturer, or dealer may be transferred without 
payment of transfer tax to any other person qualified to 
manufacture, import, or deal in that type of firearm.\15\ A 
manufacturer qualified under the NFA may also make the type of 
firearm which the manufacturer is qualified to manufacture 
without payment of the making tax.\16\
---------------------------------------------------------------------------
    \12\Secs. 5811 and 5821.
    \13\Sec. 5852(a).
    \14\Sec. 5853.
    \15\Sec. 5852(d).
    \16\Sec. 5852(c).
---------------------------------------------------------------------------
    Under the NFA, a ``firearm'' means (1) a shotgun having a 
barrel or barrels of less than 18 inches in length; (2) a 
weapon made from a shotgun if such weapon as modified has an 
overall length of less than 26 inches or a barrel or barrels of 
less than 18 inches in length; (3) a rifle having a barrel or 
barrels of less than 16 inches in length; (4) a weapon made 
from a rifle if such weapon as modified has an overall length 
of less than 26 inches or a barrel or barrels of less than 16 
inches in length; (5) any other weapon;\17\ (6) a machine gun; 
(7) a silencer; and (8) a destructive device. The term 
``firearm'' does not include an antique firearm or any device 
(other than a machine gun or destructive device) which, 
although designed as a weapon, the Secretary finds by reason of 
the date of its manufacture, value, design, and other 
characteristics is primarily a collector's item and is not 
likely to be used as a weapon.\18\
---------------------------------------------------------------------------
    \17\As defined in sec. 5845(e). The term ``any other weapon'' 
includes, for example, a weapon or device capable of being concealed on 
the person from which a shot can be discharged through the energy of an 
explosive and a pistol or revolver having a barrel with a smooth bore 
designed or redesigned to fire a fixed shotgun shell. The term does not 
include a pistol or a revolver having a rifled bore.
    \18\Sec. 5845(a).
---------------------------------------------------------------------------
    In contrast, the Gun Control Act of 1968\19\ (the ``GCA'') 
contains the primary Federal restrictions on domestic commerce 
in firearms and ammunition that are not regulated under the 
NFA. The GCA requires persons manufacturing, importing, or 
selling firearms as a business to be Federally licensed. In 
addition, the GCA prohibits interstate firearms transfers 
between unlicensed persons; prohibits interstate sale of 
handguns generally; sets forth categories of persons to whom 
firearms or ammunition may not be sold; authorizes the Attorney 
General to prohibit the importation of nonsporting firearms; 
and requires that dealers maintain records of all commercial 
gun sales.\20\ Under the GCA, a ``firearm'' is (1) a weapon 
(including a starter gun) which will or is designed to or may 
readily be converted to expel a projectile by the action of an 
explosive; (2) the frame or receiver of such a weapon; (3) a 
firearm muffler or firearm silencer; or (4) a destructive 
device. However, the term ``firearm'' does not include an 
antique firearm.\21\
---------------------------------------------------------------------------
    \19\Pub. L. No. 90-618, codified as 18 U.S.C. secs. 921 et seq.
    \20\R. Eliot Crafton, Jordan B. Cohen, and Jane G. Gravelle, 
Congressional Research Service, Guns, Excise Taxes, Wildlife 
Restoration, and the National Firearms Act (Report R45123), March 5, 
2018, available at https://crsreports.congress.gov/product/pdf/R/
R45123.
    \21\18 U.S.C. sec. 921(a)(3).
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee believes that innovative non-lethal 
projectile devices are necessary for protecting our communities 
and should be promoted. However, the Committee is concerned 
that current and future non-lethal projectile devices may be 
subject to Federal excise taxes and regulations, which may 
stifle the development, production, and availability of these 
important devices. The provision addresses these concerns by 
clarifying that certain less-than-lethal projectile devices are 
not firearms for purposes of the Gun Control Act. Further, the 
provision provides that certain less-than-lethal projectile 
devices, and similar devices that the Secretary determines are 
designed or intended to be used in a manner that is not likely 
to cause death or serious bodily injury, are exempted from the 
firearms and ammunition excise tax and the National Firearms 
Act.

                        EXPLANATION OF PROVISION

Exemption of certain less-than-lethal projectile devices from 
        restrictions under title 18 of the United States Code

    The provision amends section 921 of title 18 of the United 
States Code to provide that a less-than-lethal projectile 
device is not a firearm for purposes of the GCA. A ``less-than-
lethal projectile device'' is a device with a bore or multiple 
bores that is not designed or intended to expel a projectile at 
a velocity exceeding 500 feet per second by any means, and is 
designed or intended to be used in a manner that is not likely 
to cause death of serious bodily injury.

Exemption of certain less-than-lethal projectile devices from the 
        firearms and ammunition excise tax

    The provision amends the Code to provide that the firearms 
and ammunition excise tax does not apply to (1) a less-than-
lethal projectile device, (2) a device contained on the most 
recent list that the Secretary makes available (described 
below), and (3) a shell or cartridge that is designed or 
intended to be used in a manner that is not likely to cause 
death or serious bodily injury and is designed for use in a 
device referred to in (1) or (2). A ``less-than-lethal 
projectile device'' is a device with a bore or multiple bores 
that is not designed or intended to expel a projectile at a 
velocity exceeding 500 feet per second by any means, and is 
designed or intended to be used in a manner that is not likely 
to cause death or serious bodily injury.
    The Secretary is directed to produce two lists of devices. 
First, the Secretary is directed to make publicly available a 
list of devices that the Secretary has determined are less-
than-lethal projectile devices and to update the list annually 
to take into account new devices. Second, the Secretary is 
directed to make publicly available a list of devices that the 
Secretary has determined are designed or intended to be used in 
a manner that is not likely to cause death or serious bodily 
injury, but fail to qualify as less-than-lethal projectile 
devices because the devices are designed or intended to expel a 
projectile at a velocity exceeding 500 feet per second by any 
means (the ``exempt devices list''). As discussed above, the 
devices that are included on the exempt devices list are exempt 
from the firearms and ammunition excise tax. The Secretary is 
required to update the exempt devices list annually to take 
into account new devices. Further, the Secretary is directed to 
submit an annual written report to the House Ways and Means 
Committee and the Senate Finance Committee regarding the exempt 
devices list, including a copy of the list, a description of 
the devices that were considered for inclusion on the list, and 
the reasons for including or excluding the devices from the 
list.

Exemption of certain less-than-lethal projectile devices from the 
        National Firearms Act

    The provision modifies the definition of ``firearm'' for 
purposes of the NFA.\22\ The provision provides that less-than-
lethal projectile devices and devices contained on the exempt 
devices list are not firearms for purposes of the NFA and thus 
are not subject to the occupational, transfer, or making taxes. 
The term ``less-than-lethal projectile devices'' has the same 
meaning given that term for purposes of the firearms and 
ammunition excise tax.
---------------------------------------------------------------------------
    \22\Pub. L. No. 73-474, codified as chapter 53 of the Code.
---------------------------------------------------------------------------

                             EFFECTIVE DATE

    The provision is generally effective on the date of 
enactment. The part of the provision relating to the exemption 
of certain devices from the firearms and ammunition excise tax 
applies to articles sold by the manufacturer, producer, or 
importer after the date of enactment.

                       III. VOTE OF THE COMMITTEE

    Pursuant to clause 3(b) of rule XIII of the Rules of the 
House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 3269, the ``Law Enforcement Innovate to 
De-Escalate Act,'' on September 11, 2024.
    H.R. 3269 was ordered favorably reported to the House of 
Representatives as amended by a roll vote of 21 yeas to 15 nays 
(with a quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
           Representative              Yea     Nay    Present       Representative       Yea     Nay    Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO).....................      X   ......  .........  Mr. Neal.............  ......      X   .........
Mr. Buchanan.......................      X   ......  .........  Mr. Doggett..........  ......      X   .........
Mr. Smith (NE).....................      X   ......  .........  Mr. Thompson.........  ......      X   .........
Mr. Kelly..........................      X   ......  .........  Mr. Larson...........  ......      X   .........
Mr. Schweikert.....................      X   ......  .........  Mr. Blumenauer.......  ......      X   .........
Mr. LaHood.........................      X   ......  .........  Mr. Davis............  ......      X   .........
Dr. Wenstrup.......................      X   ......  .........  Ms. Sanchez..........  ......      X   .........
Mr. Arrington......................  ......  ......  .........  Ms. Sewell...........  ......  ......  .........
Dr. Ferguson.......................  ......  ......  .........  Ms. DelBene..........  ......      X   .........
Mr. Estes..........................  ......  ......  .........  Ms. Chu..............  ......      X   .........
Mr. Smucker........................      X   ......  .........  Ms. Moore............  ......      X   .........
Mr. Hern...........................      X   ......  .........  Mr. Kildee...........  ......      X   .........
Ms. Miller.........................      X   ......  .........  Mr. Beyer............  ......      X   .........
Dr. Murphy.........................  ......  ......  .........  Mr. Evans............  ......  ......  .........
Mr. Kustoff........................      X   ......  .........  Mr. Schneider........  ......      X   .........
Mr. Fitzpatrick....................  ......  ......  .........  Mr. Panetta..........      X   ......  .........
Mr. Steube.........................      X   ......  .........  Mr. Gomez............  ......      X   .........
Ms. Tenney.........................      X   ......  .........  Mr. Horsford.........  ......      X   .........
Mrs. Fischbach.....................      X   ......  .........
Mr. Moore..........................      X   ......  .........
Mr. Steel..........................      X   ......  .........
Ms. Van Duyne......................      X   ......  .........
Mr. Feenstra.......................      X   ......  .........
Ms. Malliotakis....................      X   ......  .........
Mr. Carey..........................      X   ......  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 3269, as 
reported. The estimate prepared by the Joint Committee on 
Taxation (JCT) is included below.
    The provision is estimated to reduce Federal receipts by 
less than $500,000 over the budget window.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.




    H.R. 3269 would exempt certain firearms, shells, and 
cartridges from the firearm and ammunition excise and transfer 
taxes. The bill would apply to firearms, and the shells and 
cartridges designed for those firearms, that are not intended 
to cause death or serious injury. Under current law, the excise 
tax is 11 percent of the purchase price and the transfer tax is 
$200 per firearm.
    H.R. 3269 also would require the Department of the Treasury 
to publish a list of firearms that it determines qualify for 
the exemption and update it annually. Lastly, the bill would 
require the Treasury to report annually to the Congress on any 
updates made to the list.
    The Congressional Budget Act of 1974, as amended, 
stipulates that revenue estimates provided by the staff of the 
Joint Committee on Taxation (JCT) will be the official 
estimates for all tax legislation considered by the Congress. 
As such, CBO incorporates those estimates into its cost 
estimates of the effects of legislation. The estimates for the 
revenue provisions of H.R. 3269 were provided by JCT.
    JCT estimates that, by exempting firearms, shells and 
cartridges currently subject to taxation, enacting H.R. 3269 
would reduce revenues by less than $500,000 over the 2025-2034 
period. Under current law, firearm and ammunition excise taxes 
are deposited in the Federal Aid to Wildlife Restoration Fund. 
Those funds can be spent without further appropriation. Thus, 
CBO estimates that enacting H.R. 3269 would reduce direct 
spending by less than $500,000 over the 2025-2034 period.
    CBO expects the agencies that collect those taxes and 
regulate the sale of firearms would incur administrative costs 
to comply with the bill's requirements. Based on the costs of 
similar activities, CBO estimates that implementing H.R. 3269 
would cost less than $500,000 over the 2025-2029 period. Any 
related spending would be subject to the availability of 
appropriated funds.
    On October 23, 2024, CBO transmitted a cost estimate for 
H.R. 3269, the Law Enforcement Innovate to De-Escalate Act of 
2024, as ordered reported by the House Committee on the 
Judiciary on April 17, 2024. The two bills are similar, and 
CBO's estimate of their budgetary effects are the same.
    The CBO staff contact for this estimate is Jeremy Crimm. 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Director of Budget Analysis.

                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill does not authorize funding, so no statement of general 
performance goals and objectives is required.

                       C. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (``IRS Reform Act'') requires the 
staff of the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Treasury Department) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
and has widespread applicability to individuals or small 
businesses. The staff of the Joint Committee on Taxation has 
determined that there are no provisions that are of widespread 
applicability to individuals or small businesses.

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   F. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of Rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED


      A. Changes in Existing Law Proposed by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 18, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--CRIMES

           *       *       *       *       *       *       *


CHAPTER 44--FIREARMS

           *       *       *       *       *       *       *


Sec. 921. Definitions

  (a) As used in this chapter--
  (1) The term ``person'' and the term ``whoever'' include any 
individual, corporation, company, association, firm, 
partnership, society, or joint stock company.
  (2) The term ``interstate or foreign commerce'' includes 
commerce between any place in a State and any place outside of 
that State, or within any possession of the United States (not 
including the Canal Zone) or the District of Columbia, but such 
term does not include commerce between places within the same 
State but through any place outside of that State. The term 
``State'' includes the District of Columbia, the Commonwealth 
of Puerto Rico, and the possessions of the United States (not 
including the Canal Zone).
  (3) The term ``firearm'' means (A) any weapon (including a 
starter gun) which will or is designed to or may readily be 
converted to expel a projectile by the action of an explosive; 
(B) the frame or receiver of any such weapon; (C) any firearm 
muffler or firearm silencer; or (D) any destructive device. 
Such term does not include an antique firearm or a less-than-
lethal projectile device.
  (4) The term ``destructive device'' means--
          (A) any explosive, incendiary, or poison gas--
                  (i) bomb,
                  (ii) grenade,
                  (iii) rocket having a propellant charge of 
                more than four ounces,
                  (iv) missile having an explosive or 
                incendiary charge of more than one-quarter 
                ounce,
                  (v) mine, or
                  (vi) device similar to any of the devices 
                described in the preceding clauses;
          (B) any type of weapon (other than a shotgun or a 
        shotgun shell which the Attorney General finds is 
        generally recognized as particularly suitable for 
        sporting purposes) by whatever name known which will, 
        or which may be readily converted to, expel a 
        projectile by the action of an explosive or other 
        propellant, and which has any barrel with a bore of 
        more than one-half inch in diameter; and
          (C) any combination of parts either designed or 
        intended for use in converting any device into any 
        destructive device described in subparagraph (A) or (B) 
        and from which a destructive device may be readily 
        assembled.
The term ``destructive device'' shall not include any device 
which is neither designed nor redesigned for use as a weapon; 
any device, although originally designed for use as a weapon, 
which is redesigned for use as a signaling, pyrotechnic, line 
throwing, safety, or similar device; surplus ordnance sold, 
loaned, or given by the Secretary of the Army pursuant to the 
provisions of section 7684(2), 7685, or 7686 of title 10; or 
any other device which the Attorney General finds is not likely 
to be used as a weapon, is an antique, or is a rifle which the 
owner intends to use solely for sporting, recreational or 
cultural purposes.
  (5) The term ``shotgun'' means a weapon designed or 
redesigned, made or remade, and intended to be fired from the 
shoulder and designed or redesigned and made or remade to use 
the energy of an explosive to fire through a smooth bore either 
a number of ball shot or a single projectile for each single 
pull of the trigger.
  (6) The term ``short-barreled shotgun'' means a shotgun 
having one or more barrels less than eighteen inches in length 
and any weapon made from a shotgun (whether by alteration, 
modification or otherwise) if such a weapon as modified has an 
overall length of less than twenty-six inches.
  (7) The term ``rifle'' means a weapon designed or redesigned, 
made or remade, and intended to be fired from the shoulder and 
designed or redesigned and made or remade to use the energy of 
an explosive to fire only a single projectile through a rifled 
bore for each single pull of the trigger.
  (8) The term ``short-barreled rifle'' means a rifle having 
one or more barrels less than sixteen inches in length and any 
weapon made from a rifle (whether by alteration, modification, 
or otherwise) if such weapon, as modified, has an overall 
length of less than twenty-six inches.
  (9) The term ``importer'' means any person engaged in the 
business of importing or bringing firearms or ammunition into 
the United States for purposes of sale or distribution; and the 
term ``licensed importer'' means any such person licensed under 
the provisions of this chapter.
  (10) The term ``manufacturer'' means any person engaged in 
the business of manufacturing firearms or ammunition for 
purposes of sale or distribution; and the term ``licensed 
manufacturer'' means any such person licensed under the 
provisions of this chapter.
  (11) The term ``dealer'' means (A) any person engaged in the 
business of selling firearms at wholesale or retail, (B) any 
person engaged in the business of repairing firearms or of 
making or fitting special barrels, stocks, or trigger 
mechanisms to firearms, or (C) any person who is a pawnbroker. 
The term ``licensed dealer'' means any dealer who is licensed 
under the provisions of this chapter.
  (12) The term ``pawnbroker'' means any person whose business 
or occupation includes the taking or receiving, by way of 
pledge or pawn, of any firearm as security for the payment or 
repayment of money.
  (13) The term ``collector'' means any person who acquires, 
holds, or disposes of firearms as curios or relics, as the 
Attorney General shall by regulation define, and the term 
``licensed collector'' means any such person licensed under the 
provisions of this chapter.
  (14) The term ``indictment'' includes an indictment or 
information in any court under which a crime punishable by 
imprisonment for a term exceeding one year may be prosecuted.
  (15) The term ``fugitive from justice'' means any person who 
has fled from any State to avoid prosecution for a crime or to 
avoid giving testimony in any criminal proceeding.
  (16) The term ``antique firearm'' means--
          (A) any firearm (including any firearm with a 
        matchlock, flintlock, percussion cap, or similar type 
        of ignition system) manufactured in or before 1898; or
          (B) any replica of any firearm described in 
        subparagraph (A) if such replica--
                  (i) is not designed or redesigned for using 
                rimfire or conventional centerfire fixed 
                ammunition, or
                  (ii) uses rimfire or conventional centerfire 
                fixed ammunition which is no longer 
                manufactured in the United States and which is 
                not readily available in the ordinary channels 
                of commercial trade; or
          (C) any muzzle loading rifle, muzzle loading shotgun, 
        or muzzle loading pistol, which is designed to use 
        black powder, or a black powder substitute, and which 
        cannot use fixed ammunition. For purposes of this 
        subparagraph, the term ``antique firearm'' shall not 
        include any weapon which incorporates a firearm frame 
        or receiver, any firearm which is converted into a 
        muzzle loading weapon, or any muzzle loading weapon 
        which can be readily converted to fire fixed ammunition 
        by replacing the barrel, bolt, breechblock, or any 
        combination thereof.
  (17)(A) The term ``ammunition'' means ammunition or cartridge 
cases, primers, bullets, or propellent powder designed for use 
in any firearm.
  (B) The term ``armor piercing ammunition'' means--
          (i) a projectile or projectile core which may be used 
        in a handgun and which is constructed entirely 
        (excluding the presence of traces of other substances) 
        from one or a combination of tungsten alloys, steel, 
        iron, brass, bronze, beryllium copper, or depleted 
        uranium; or
          (ii) a full jacketed projectile larger than .22 
        caliber designed and intended for use in a handgun and 
        whose jacket has a weight of more than 25 percent of 
        the total weight of the projectile.
  (C) The term ``armor piercing ammunition'' does not include 
shotgun shot required by Federal or State environmental or game 
regulations for hunting purposes, a frangible projectile 
designed for target shooting, a projectile which the Attorney 
General finds is primarily intended to be used for sporting 
purposes, or any other projectile or projectile core which the 
Attorney General finds is intended to be used for industrial 
purposes, including a charge used in an oil and gas well 
perforating device.
  (18) The term ``Attorney General'' means the Attorney General 
of the United States
  (19) The term ``published ordinance'' means a published law 
of any political subdivision of a State which the Attorney 
General determines to be relevant to the enforcement of this 
chapter and which is contained on a list compiled by the 
Attorney General, which list shall be published in the Federal 
Register, revised annually, and furnished to each licensee 
under this chapter.
  (20) The term ``crime punishable by imprisonment for a term 
exceeding one year'' does not include--
          (A) any Federal or State offenses pertaining to 
        antitrust violations, unfair trade practices, 
        restraints of trade, or other similar offenses relating 
        to the regulation of business practices, or
          (B) any State offense classified by the laws of the 
        State as a misdemeanor and punishable by a term of 
        imprisonment of two years or less.
What constitutes a conviction of such a crime shall be 
determined in accordance with the law of the jurisdiction in 
which the proceedings were held. Any conviction which has been 
expunged, or set aside or for which a person has been pardoned 
or has had civil rights restored shall not be considered a 
conviction for purposes of this chapter, unless such pardon, 
expungement, or restoration of civil rights expressly provides 
that the person may not ship, transport, possess, or receive 
firearms.
  (21) The term ``engaged in the business'' means--
          (A) as applied to a manufacturer of firearms, a 
        person who devotes time, attention, and labor to 
        manufacturing firearms as a regular course of trade or 
        business with the principal objective of livelihood and 
        profit through the sale or distribution of the firearms 
        manufactured;
          (B) as applied to a manufacturer of ammunition, a 
        person who devotes time, attention, and labor to 
        manufacturing ammunition as a regular course of trade 
        or business with the principal objective of livelihood 
        and profit through the sale or distribution of the 
        ammunition manufactured;
          (C) as applied to a dealer in firearms, as defined in 
        section 921(a)(11)(A), a person who devotes time, 
        attention, and labor to dealing in firearms as a 
        regular course of trade or business to predominantly 
        earn a profit through the repetitive purchase and 
        resale of firearms, but such term shall not include a 
        person who makes occasional sales, exchanges, or 
        purchases of firearms for the enhancement of a personal 
        collection or for a hobby, or who sells all or part of 
        his personal collection of firearms;
          (D) as applied to a dealer in firearms, as defined in 
        section 921(a)(11)(B), a person who devotes time, 
        attention, and labor to engaging in such activity as a 
        regular course of trade or business with the principal 
        objective of livelihood and profit, but such term shall 
        not include a person who makes occasional repairs of 
        firearms, or who occasionally fits special barrels, 
        stocks, or trigger mechanisms to firearms;
          (E) as applied to an importer of firearms, a person 
        who devotes time, attention, and labor to importing 
        firearms as a regular course of trade or business with 
        the principal objective of livelihood and profit 
        through the sale or distribution of the firearms 
        imported; and
          (F) as applied to an importer of ammunition, a person 
        who devotes time, attention, and labor to importing 
        ammunition as a regular course of trade or business 
        with the principal objective of livelihood and profit 
        through the sale or distribution of the ammunition 
        imported.
  (22) The term ``to predominantly earn a profit'' means that 
the intent underlying the sale or disposition of firearms is 
predominantly one of obtaining pecuniary gain, as opposed to 
other intents, such as improving or liquidating a personal 
firearms collection: Provided, That proof of profit shall not 
be required as to a person who engages in the regular and 
repetitive purchase and disposition of firearms for criminal 
purposes or terrorism. For purposes of this paragraph, the term 
``terrorism'' means activity, directed against United States 
persons, which--
          (A) is committed by an individual who is not a 
        national or permanent resident alien of the United 
        States;
          (B) involves violent acts or acts dangerous to human 
        life which would be a criminal violation if committed 
        within the jurisdiction of the United States; and
          (C) is intended--
                  (i) to intimidate or coerce a civilian 
                population;
                  (ii) to influence the policy of a government 
                by intimidation or coercion; or
                  (iii) to affect the conduct of a government 
                by assassination or kidnapping.
  (23) The term ``with the principal objective of livelihood 
and profit'' means that the intent underlying the sale or 
disposition of firearms is predominantly one of obtaining 
livelihood and pecuniary gain, as opposed to other intents, 
such as improving or liquidating a personal firearms 
collection: Provided, That proof of profit shall not be 
required as to a person who engages in the regular and 
repetitive purchase and disposition of firearms for criminal 
purposes or terrorism. For purposes of this paragraph, the term 
``terrorism'' means activity, directed against United States 
persons, which--
          (A) is committed by an individual who is not a 
        national or permanent resident alien of the United 
        States;
          (B) involves violent acts or acts dangerous to human 
        life which would be a criminal violation if committed 
        within the jurisdiction of the United States; and
          (C) is intended--
                  (i) to intimidate or coerce a civilian 
                population;
                  (ii) to influence the policy of a government 
                by intimidation or coercion; or
                  (iii) to affect the conduct of a government 
                by assassination or kidnapping.
  (24) The term ``machinegun'' has the meaning given such term 
in section 5845(b) of the National Firearms Act (26 U.S.C. 
5845(b)).
  (25) The terms ``firearm silencer'' and ``firearm muffler'' 
mean any device for silencing, muffling, or diminishing the 
report of a portable firearm, including any combination of 
parts, designed or redesigned, and intended for use in 
assembling or fabricating a firearm silencer or firearm 
muffler, and any part intended only for use in such assembly or 
fabrication.
  (26) The term ``school zone'' means--
          (A) in, or on the grounds of, a public, parochial or 
        private school; or
          (B) within a distance of 1,000 feet from the grounds 
        of a public, parochial or private school.
  (27) The term ``school'' means a school which provides 
elementary or secondary education, as determined under State 
law.
  (28) The term ``motor vehicle'' has the meaning given such 
term in section 13102 of title 49, United States Code.
  (29) The term ``semiautomatic rifle'' means any repeating 
rifle which utilizes a portion of the energy of a firing 
cartridge to extract the fired cartridge case and chamber the 
next round, and which requires a separate pull of the trigger 
to fire each cartridge.
  (30) The term ``handgun'' means--
          (A) a firearm which has a short stock and is designed 
        to be held and fired by the use of a single hand; and
          (B) any combination of parts from which a firearm 
        described in subparagraph (A) can be assembled.
  (32) The term ``intimate partner'' means, with respect to a 
person, the spouse of the person, a former spouse of the 
person, an individual who is a parent of a child of the person, 
and an individual who cohabitates or has cohabited with the 
person.
  (33)(A) Except as provided in subparagraphs (B) and (C), the 
term ``misdemeanor crime of domestic violence'' means an 
offense that--
          (i) is a misdemeanor under Federal, State, Tribal, or 
        local law; and
          (ii) has, as an element, the use or attempted use of 
        physical force, or the threatened use of a deadly 
        weapon, committed by a current or former spouse, 
        parent, or guardian of the victim, by a person with 
        whom the victim shares a child in common, by a person 
        who is cohabiting with or has cohabited with the victim 
        as a spouse, parent, or guardian, by a person similarly 
        situated to a spouse, parent, or guardian of the 
        victim, or by a person who has a current or recent 
        former dating relationship with the victim.
  (B)(i) A person shall not be considered to have been 
convicted of such an offense for purposes of this chapter, 
unless--
          (I) the person was represented by counsel in the 
        case, or knowingly and intelligently waived the right 
        to counsel in the case; and
          (II) in the case of a prosecution for an offense 
        described in this paragraph for which a person was 
        entitled to a jury trial in the jurisdiction in which 
        the case was tried, either
                  (aa) the case was tried by a jury, or
                  (bb) the person knowingly and intelligently 
                waived the right to have the case tried by a 
                jury, by guilty plea or otherwise.
  (ii) A person shall not be considered to have been convicted 
of such an offense for purposes of this chapter if the 
conviction has been expunged or set aside, or is an offense for 
which the person has been pardoned or has had civil rights 
restored (if the law of the applicable jurisdiction provides 
for the loss of civil rights under such an offense) unless the 
pardon, expungement, or restoration of civil rights expressly 
provides that the person may not ship, transport, possess, or 
receive firearms.
  (C) A person shall not be considered to have been convicted 
of a misdemeanor crime of domestic violence against an 
individual in a dating relationship for purposes of this 
chapter if the conviction has been expunged or set aside, or is 
an offense for which the person has been pardoned or has had 
firearm rights restored unless the expungement, pardon, or 
restoration of rights expressly provides that the person may 
not ship, transport, possess, or receive firearms: Provided, 
That, in the case of a person who has not more than 1 
conviction of a misdemeanor crime of domestic violence against 
an individual in a dating relationship, and is not otherwise 
prohibited under this chapter, the person shall not be 
disqualified from shipping, transport, possession, receipt, or 
purchase of a firearm under this chapter if 5 years have 
elapsed from the later of the judgment of conviction or the 
completion of the person's custodial or supervisory sentence, 
if any, and the person has not subsequently been convicted of 
another such offense, a misdemeanor under Federal, State, 
Tribal, or local law which has, as an element, the use or 
attempted use of physical force, or the threatened use of a 
deadly weapon, or any other offense that would disqualify the 
person under section 922(g). The national instant criminal 
background check system established under section 103 of the 
Brady Handgun Violence Prevention Act (34 U.S.C. 40901) shall 
be updated to reflect the status of the person. Restoration 
under this subparagraph is not available for a current or 
former spouse, parent, or guardian of the victim, a person with 
whom the victim shares a child in common, a person who is 
cohabiting with or has cohabited with the victim as a spouse, 
parent, or guardian, or a person similarly situated to a 
spouse, parent, or guardian of the victim.
  (34) The term ``secure gun storage or safety device'' means--
          (A) a device that, when installed on a firearm, is 
        designed to prevent the firearm from being operated 
        without first deactivating the device;
          (B) a device incorporated into the design of the 
        firearm that is designed to prevent the operation of 
        the firearm by anyone not having access to the device; 
        or
          (C) a safe, gun safe, gun case, lock box, or other 
        device that is designed to be or can be used to store a 
        firearm and that is designed to be unlocked only by 
        means of a key, a combination, or other similar means.
  (35) The term ``body armor'' means any product sold or 
offered for sale, in interstate or foreign commerce, as 
personal protective body covering intended to protect against 
gunfire, regardless of whether the product is to be worn alone 
or is sold as a complement to another product or garment.
  (36) The term ``local law enforcement authority'' means a 
bureau, office, department or other authority of a State or 
local government or Tribe that has jurisdiction to investigate 
a violation or potential violation of, or enforce, a State, 
local, or Tribal law.
  (37)(A) The term ``dating relationship'' means a relationship 
between individuals who have or have recently had a continuing 
serious relationship of a romantic or intimate nature.
  (B) Whether a relationship constitutes a dating relationship 
under subparagraph (A) shall be determined based on 
consideration of--
          (i) the length of the relationship;
          (ii) the nature of the relationship; and
          (iii) the frequency and type of interaction between 
        the individuals involved in the relationship.
  (C) A casual acquaintanceship or ordinary fraternization in a 
business or social context does not constitute a dating 
relationship under subparagraph (A).
  (38) The term ``less-than-lethal projectile device'' means a 
device with a bore or multiple bores, that--
          (A) is not designed or intended to expel a projectile 
        at a velocity exceeding 500 feet per second by any 
        means; and
          (B) is designed or intended to be used in a manner 
        that is not likely to cause death or serious bodily 
        injury.
  (b) For the purposes of this chapter, a member of the Armed 
Forces on active duty is a resident of the State in which his 
permanent duty station is located.

           *       *       *       *       *       *       *

                              ----------                              


                     INTERNAL REVENUE CODE OF 1986



           *       *       *       *       *       *       *
Subtitle D--Miscellaneous Excise Taxes

           *       *       *       *       *       *       *


CHAPTER 32--MANUFACTURERS EXCISE TAXES

           *       *       *       *       *       *       *


Subchapter D--RECREATIONAL EQUIPMENT

           *       *       *       *       *       *       *


PART III--FIREARMS

           *       *       *       *       *       *       *


SEC. 4182. EXEMPTIONS.

  (a) Machine guns and short barrelled firearms.--The tax 
imposed by section 4181 shall not apply to any firearm on which 
the tax provided by section 5811 has been paid.
  (b) Sales to defense department.--No firearms, pistols, 
revolvers, shells, and cartridges purchased with funds 
appropriated for the military department shall be subject to 
any tax imposed on the sale or transfer of such articles.
  (c) Small manufacturers, etc..--
          (1) In general.--The tax imposed by section 4181 
        shall not apply to any pistol, revolver, or firearm 
        described in such section if manufactured, produced, or 
        imported by a person who manufactures, produces, and 
        imports less than an aggregate of 50 of such articles 
        during the calendar year.
          (2) Controlled groups.--All persons treated as a 
        single employer for purposes of subsection (a) or (b) 
        of section 52 shall be treated as one person for 
        purposes of paragraph (1).
  (d) Less-than-lethal Projectile Devices.--
          (1) In general.--The tax imposed by section 4181 
        shall not apply to--
                  (A) any less-than-lethal projectile device,
                  (B) any device contained on the most recent 
                list made available by the Secretary under 
                paragraph (3)(B), and
                  (C) any shell or cartridge that meets the 
                requirement of paragraph (2)(B) and is designed 
                for use in a device referred to in subparagraph 
                (A) or (B).
          (2) Less-than-lethal projectile device.--The term 
        ``less-than-lethal projectile device'' means a device 
        with a bore or multiple bores, that--
                  (A) is not designed or intended to expel a 
                projectile at a velocity exceeding 500 feet per 
                second by any means, and
                  (B) is designed or intended to be used in a 
                manner that is not likely to cause death or 
                serious bodily injury.
          (3) Annual review of new and emerging technologies.--
                  (A) List of less-than-lethal projectile 
                devices.--The Secretary shall make publicly 
                available a list of devices that the Secretary 
                has determined are described in paragraph (2) 
                and shall update such list annually to take 
                into account new devices.
                  (B) List of non-lethal devices the 
                projectiles of which exceed 500 feet per 
                second.--
                          (i) In general.--The Secretary shall 
                        make publicly available a list of 
                        devices that the Secretary has 
                        determined are not described in 
                        paragraph (2) but would be so described 
                        if such paragraph were applied without 
                        regard to subparagraph (A) thereof, and 
                        shall update such list annually to take 
                        into account new devices.
                          (ii) Report to congress.--The 
                        Secretary shall annually submit a 
                        written report to the Committee on Ways 
                        and Means of the House of 
                        Representatives and the Committee on 
                        Finance of the Senate regarding the 
                        annual list of devices described in 
                        clause (i), including a copy of such 
                        list, a description of the devices that 
                        were considered for inclusion on such 
                        list, and the reasons for including or 
                        excluding such devices from such list.
  [(d)] (e) Records.--Notwithstanding the provisions of 
sections 922(b)(5) and 923(g) of title 18, United States Code, 
no person holding a Federal license under chapter 44 of title 
18, United States Code, shall be required to record the name, 
address, or other information about the purchaser of shotgun 
ammunition, ammunition suitable for use only in rifles 
generally available in commerce, or component parts for the 
aforesaid types of ammunition.

           *       *       *       *       *       *       *


Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes

           *       *       *       *       *       *       *


   CHAPTER 53--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER 
                                FIREARMS

Subchapter B--GENERAL PROVISIONS AND EXEMPTIONS

           *       *       *       *       *       *       *


PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 5845. DEFINITIONS.

  For the purpose of this chapter--
  (a) Firearm.--The term ``firearm'' means (1) a shotgun having 
a barrel or barrels of less than 18 inches in length; (2) a 
weapon made from a shotgun if such weapon as modified has an 
overall length of less than 26 inches or a barrel or barrels of 
less than 18 inches in length; (3) a rifle having a barrel or 
barrels of less than 16 inches in length; (4) a weapon made 
from a rifle if such weapon as modified has an overall length 
of less than 26 inches or a barrel or barrels of less than 16 
inches in length; (5) any other weapon, as defined in 
subsection (e); (6) a machinegun; (7) any silencer (as defined 
in section 921 of title 18, United States Code); and (8) a 
destructive device. The term ``firearm'' shall not include [an 
antique firearm or] any antique firearm, any less-than-lethal 
projectile device (as defined in section 4182(d)(2)), any 
device referred to in section 4182(d)(1)(B), or any device 
(other than a machinegun or destructive device) which, although 
designed as a weapon, the Secretary finds by reason of the date 
of its manufacture, value, design, and other characteristics is 
primarily a collector's item and is not likely to be used as a 
weapon.
  (b) Machinegun.--The term ``machinegun'' means any weapon 
which shoots, is designed to shoot, or can be readily restored 
to shoot, automatically more than one shot, without manual 
reloading, by a single function of the trigger. The term shall 
also include the frame or receiver of any such weapon, any part 
designed and intended solely and exclusively, or combination of 
parts designed and intended, for use in converting a weapon 
into a machinegun, and any combination of parts from which a 
machinegun can be assembled if such parts are in the possession 
or under the control of a person.
  (c) Rifle.--The term ``rifle'' means a weapon designed or 
redesigned, made or remade, and intended to be fired from the 
shoulder and designed or redesigned and made or remade to use 
the energy of the explosive in a fixed cartridge to fire only a 
single projectile through a rifled bore for each single pull of 
the trigger, and shall include any such weapon which may be 
readily restored to fire a fixed cartridge.
  (d) Shotgun.--The term ``shotgun'' means a weapon designed or 
redesigned, made or remade, and intended to be fired from the 
shoulder and designed or redesigned and made or remade to use 
the energy of the explosive in a fixed shotgun shell to fire 
through a smooth bore either a number of projectiles (ball 
shot) or a single projectile for each pull of the trigger, and 
shall include any such weapon which may be readily restored to 
fire a fixed shotgun shell.
  (e) Any other weapon.--The term ``any other weapon'' means 
any weapon or device capable of being concealed on the person 
from which a shot can be discharged through the energy of an 
explosive, a pistol or revolver having a barrel with a smooth 
bore designed or redesigned to fire a fixed shotgun shell, 
weapons with combination shotgun and rifle barrels 12 inches or 
more, less than 18 inches in length, from which only a single 
discharge can be made from either barrel without manual 
reloading, and shall include any such weapon which may be 
readily restored to fire. Such term shall not include a pistol 
or a revolver having a rifled bore, or rifled bores, or weapons 
designed, made, or intended to be fired from the shoulder and 
not capable of firing fixed ammunition.
  (f) Destructive device.--The term ``destructive device'' 
means (1) any explosive, incendiary, or poison gas (A) bomb, 
(B) grenade, (C) rocket having a propellent charge of more than 
four ounces, (D) missile having an explosive or incendiary 
charge of more than one-quarter ounce, (E) mine, or (F) similar 
device; (2) any type of weapon by whatever name known which 
will, or which may be readily converted to, expel a projectile 
by the action of an explosive or other propellant, the barrel 
or barrels of which have a bore of more than one-half inch in 
diameter, except a shotgun or shotgun shell which the Secretary 
finds is generally recognized as particularly suitable for 
sporting purposes; and (3) any combination of parts either 
designed or intended for use in converting any device into a 
destructive device as defined in subparagraphs (1) and (2) and 
from which a destructive device may be readily assembled. The 
term ``destructive device'' shall not include any device which 
is neither designed nor redesigned for use as a weapon; any 
device, although originally designed for use as a weapon, which 
is redesigned for use as a signaling, pyrotechnic, line 
throwing, safety, or similar device; surplus ordnance sold, 
loaned, or given by the Secretary of the Army pursuant to the 
provisions of section 7684(2), 7685, or 7686 of title 10, 
United States Code; or any other device which the Secretary 
finds is not likely to be used as a weapon, or is an antique or 
is a rifle which the owner intends to use solely for sporting 
purposes.
  (g) Antique firearm.--The term ``antique firearm'' means any 
firearm not designed or redesigned for using rim fire or 
conventional center fire ignition with fixed ammunition and 
manufactured in or before 1898 (including any matchlock, 
flintlock, percussion cap, or similar type of ignition system 
or replica thereof, whether actually manufactured before or 
after the year 1898) and also any firearm using fixed 
ammunition manufactured in or before 1898, for which ammunition 
is no longer manufactured in the United States and is not 
readily available in the ordinary channels of commercial trade.
  (h) Unserviceable firearm.--The term ``unserviceable 
firearm'' means a firearm which is incapable of discharging a 
shot by means of an explosive and incapable of being readily 
restored to a firing condition.
  (i) Make.--The term ``make'', and the various derivatives of 
such word, shall include manufacturing (other than by one 
qualified to engage in such business under this chapter), 
putting together, altering, any combination of these, or 
otherwise producing a firearm.
  (j) Transfer.--The term ``transfer'' and the various 
derivatives of such word, shall include selling, assigning, 
pledging, leasing, loaning, giving away, or otherwise disposing 
of.
  (k) Dealer.--The term ``dealer'' means any person, not a 
manufacturer or importer, engaged in the business of selling, 
renting, leasing, or loaning firearms and shall include 
pawnbrokers who accept firearms as collateral for loans.
  (l) Importer.--The term ``importer'' means any person who is 
engaged in the business of importing or bringing firearms into 
the United States.
  (m) Manufacturer.--The term ``manufacturer'' means any person 
who is engaged in the business of manufacturing firearms.

           *       *       *       *       *       *       *


                         VII. DISSENTING VIEWS

    This bill reflects a poorly executed attempt at what may 
have been a well-intentioned goal to help law enforcement and 
protect the public. Republicans claim that the bill is designed 
to lower barriers for law enforcement to access devices such as 
TASERs by redefining ``firearm'' in the Gun Control Act of 1968 
to make less-than-lethal weapons more readily available. 
However, law enforcement officers are already exempt from much 
of the Gun Control Act and are able to procure both firearms 
and less-than-lethal projectile devices free of tax. Moreover, 
redefining ``firearm'' to exclude less-than-lethal projectile 
devices from background check requirements is of grave concern 
for public safety. If enacted, this bill would enable people 
who are currently unable to obtain weapons classified as 
firearms--such as people convicted of domestic abuse or violent 
felonies--to easily obtain dangerous projectile weapons which 
may be easily modified.
    While we support good faith efforts to aid law enforcement 
with reducing the use of lethal force, this bill does not move 
towards that goal. Enabling the public to obtain projectile 
weapons more easily will only put both law enforcement and the 
public at risk, and potentially escalate confrontations with 
law enforcement. The term ``less-than-lethal projectile 
device'' is both subjective and a misnomer. Many of the weapons 
that are captured by this term can still cause serious injury 
and death, with the majority of these deaths occurring after 
what began as a nonviolent encounter. Furthermore, these 
weapons can easily be modified by devices available on the 
market or by personally manufactured parts. The result is a 
dangerous loophole in the background check system whereby a 
prohibited purchaser may acquire one of these devices, modify 
it to have the lethality of a firearm they are not allowed to 
purchase, and then engage in devastating criminal activity.
    Rather than weaken firearm regulations in the name of 
helping law enforcement, Republicans should focus on 
strengthening laws that actually protect law enforcement, 
invest in programs that enhance public safety, and prevent 
people intent on causing harm from easily accessing dangerous 
weapons.

                                           Richard E. Neal.

                            DISSENTING VIEWS

    I support the goal of incentivizing the use of less than 
lethal devices by law enforcement, but that's not what this 
bill does. The less than lethal devices provision doesn't just 
exempt this taser from the national firearms act, it creates a 
loophole and makes it easier for ghost guns to be accessed by 
prohibited purchasers. Those are people who are a danger to 
themselves and others. Those are bad guys.
    What this bill does is create a new twist on the ongoing 
problem: ghost guns. Law enforcement continues to struggle with 
this threat to our communities, and if passed, this would make 
it easier for undetectable and untraceable devices for entering 
the market. Even our Department of Justice and the ATF says so, 
and the technical assistance were provided for the definition. 
And I would like to add to the record, the statement on the 
technical advice.
    Sadly, this could have been addressed and this should be 
fixed before this bill goes any further. These firearms, ghost 
guns, are the weapon of choice for prohibited purchasers. By 
unintentionally allowing a new subset of firearms onto the 
market without background checks or other regulations, we risk 
allowing those who are a danger to themselves or others to 
access these types of weapons. In fact, ghost guns are the 
fastest growing gun violence threat in our country, and they 
pose a significant threat to our communities and law 
enforcement.
    I'd also like to add to the record a stack of articles 
reporting on ghost gun problems in our community. When the 
Biden administration tried to regulate ghost guns by requiring 
that all guns had to be serialized, manufacturers began selling 
the frames and receivers of these kits separately, so they 
could avoid this regulation. And my friends on the others side 
of the aisle sat by in silence and allowed this to happen.
    Republicans again and again have obstructed efforts to keep 
our community Whether it was passing legislation to make short-
barreled guns legal, preventing safe. the VA from flagging to 
the NIX, background checks systems when a veteran is a danger 
themselves or others. They have opposed appropriations cuts for 
gun violence to research, refused to sign discharge petitions 
on bipartisan policies like background checks, red flag laws, 
the bump stocks prohibition, and proposed massive cuts to 
defund the FBI and ATF, and have a CRA that would block 
expanded background checks.
    This bill just adds to these problems, it exacerbates the 
problems. We should be working together to figure out how we 
can make our communities safe. And we know it's problem. There 
have been more mass shootings this year than there have been 
days this year.
    Gun violence already is the number one cause of death for 
teenagers and for We just finished with two terribles ones: a 
mass shooting at a school in Georgia children. and Kentucky, 
the highway shooter. We shouldn't make it easier for these 
people who are in a danger to themselves or to others, to have 
access to firearms.
    My friend from Arizona said this is about helping law 
enforcement. That's just accurate.
    That's not what the bill does. If you want to help law 
enforcement, deal not that particular provision. Don't open 
this loophole in the law that will allow easy with access to 
ghost guns, making our communities less safe, putting our 
children and our community members and our constituents in 
harm's way.
    This bill should be fixed before it goes any further and we 
have the ability to do that. We should stop closing our eyes to 
the epidemic of gun violence and we should work together to 
address these issues.

                                             Mike Thompson.