§105. Uses of funds
This section establishes requirements for the use of grant funds by states, units of local government, and gun dealers under the gun buyback grant program as follows: (1) states and units of local government must use funds to conduct gun buyback programs (directly or via subgrants to gun dealers, with distribution of smart prepaid cards), at least 5% of funds to destroy collected guns (including all parts, components, and accessories) and ammunition, and no more than 15% for administrative costs (including criminal database checks); (2) gun dealers must conduct buybacks by loading smart prepaid cards with 125% of a gun's market value (or more if altered to increase value, as determined under section 104(b)), verify firearms are not stolen (notifying ATF within 24 hours if stolen), and deliver received guns and ammunition as-is to the closest ATF office (if directly granted) or state/unit of local government (if subgranted) within 30 days; (3) authorizes acceptance (but not purchase via smart cards) of ammunition for destruction; (4) permits incentives to gun dealers (treated as subgrants); and (5) prohibits resale of received guns, parts, components, accessories, or ammunition. This section further requires states, units of local government, or ATF offices receiving guns to check criminal databases within 21 days and, if a gun was used in a crime, deliver it to the appropriate prosecuting authority.