§2. License required to engage in the business of destroying firearms
This section establishes a federal licensing requirement under the Gun Control Act of 1968 for persons engaged in the business of destroying firearms (i.e., firearm destroyers, excluding government entities), defining such business as receiving firearms for destruction and requiring use of a "covered method" that renders the firearm and components unrestorable and reduced to scrap.
Specifically, the section (1) amends 18 USC 921(a) to incorporate firearm destroyers within the definition of "dealer," define "engaging in the business" for destruction purposes, and add definitions of "firearm destroyer" and "covered method of firearm destruction"; (2) amends 18 USC 922(a)(1) to prohibit unlicensed destruction of firearms as a business; (3) amends 18 USC 923 to authorize dealer licenses for destroying firearms, require applicants to commit to covered-method destruction of government-submitted firearms, impose annual ATF reporting on destruction activities (with public disclosure of reports and aggregates), and mandate covered-method destruction (unless otherwise agreed) and public fee disclosure for government firearms; (4) applies these requirements to existing licensees; and (5) adds 18 USC 924(a)(5) penalties for violations.
Additionally, this section authorizes grants under the Brady Handgun Violence Prevention Act, beginning one year after enactment, to state, local, and tribal governments to pay licensed dealers for covered-method destruction of firearms (such sums as necessary).