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This act may be referred to as the "NFA and Firearms Modernization Act"

SECTION 2. Revision of Federal Firearms Definitions

(a) Subsections 5-8 of 18 USC 921 are replaced with the following:

(5) The term "shotgun" means a smoothbore weapon intended to be fired from the shoulder or with both hands that uses the energy of an explosive to propel one or more projectiles for each pull of the trigger.
(6) The term "rifle" means a weapon intended to be fired from the shoulder or with both hands that uses the energy of an explosive to propel a single projectile down a rifled barrel.
(7) The term "short barreled firearm" shall refer to a shotgun or rifle with a with a barrel shorter than 14", measured to the end of rifling, barrel,  or choke and not inclusive of any flash suppressor or other accessory, that is meant to be fired from the shoulder or requiring two hands to fire.
(8) For all purposes in the US code, the definition of "short barreled firearm" in (7) above shall replace the terms "short barreled rifle" and "short barreled shotgun"

(b) For all uses relating to firearms, the term "sporting purpose" shall be replaced with "any and all lawful purposes"

(c) 18 USC 922 subsections (a)(7-8), (b)(4), (o), and (r) are repealed

(d) 18 USC 925 (d)(3) is replaced with the following:

(3) Would be legal to manufacture and own within the boundaries of the United States, provided that all legal ownership requirements are satisfied and all taxes and fees are remitted upon importation as if the importer were the original manufacturer.

(e) 18 USC 925 is amended with the following:

(g) In areas where ambiguity exists in the wording of the law, the Attorney General or responsible agency is directed to choose the interpretation that retains for the people the maximum freedom in the purchase, possession, and use of firearms and other weapons.  Any citizen who is not a prohibited person shall have standing to challenge such regulations in a court of law.

(f)  Title 26 S 5845 subsections (a-b) are replaced with the following:

(a) Firearm
The term "firearm" means

(1) A short barreled firearm as per 18 USC 921
(2) any other weapon as defined in subsection (e)
(3) a machinegun or machinegun converter
(4) A readily convertible firearm
(5) a destructive device. The term “firearm” shall not include an antique firearm or any 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 and Machinegun Converters

(1) 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, and any combination of parts from which a machinegun can be assembled without special tooling or unusual knowledge if such parts are in the possession or under the control of a person. A weapon not designed as a machinegun firing multiple shots shall not be considered a machinegun provided that the condition is erroneous, the user is making a good-faith effort to resolve the condition, and that the weapon is not transferred other than to a gunsmith for the repair of the multiple-firing condition or to an appropriate authority for disposal under state law.
(2) The term "machinegun converter" shall mean any part or collection of parts that is intended to convert a firearm into a machinegun and is functionally able to complete such a conversion.  Common materials or parts that could be used to this end but have other legal uses may be considered a "machinegun converter" only with clear evidence of intent to create a machinegun using said materials.

(c) Readily Convertible Firearms  A readily convertible firearm shall be any firearm according to 18 USC 921 which may be adapted to fire more than one shot with the pull of a trigger by an individual with no special knowledge or tooling within an eight hour time period.

(g) Title 26 S 5845 subsections (d) is repealed.

(h)  Title 26 S 5845 subsection (f) are replaced with the following:

(f) Destructive device

(1) The term “destructive device” means

(A) any explosive, incendiary, or poison gas
(B) bomb,
(C) grenade,
(D) rocket having a propellant charge of more than four ounces,
(E) missile having an explosive or incendiary charge of more than one-quarter ounce,
(F) mine, or
(G) 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 0.775 inch in diameter
(3) any combination of parts either designed or intended for use in converting any device into a destructive device as defined in sub-paragraphs (1) and (2) and from which a destructive device may be readily assembled.
(4) The secretary shall reclassify any Destructive Device as a Title 1 firearm provided that the firearm has utility in sporting purposes, competitive shooting, militia use, or self defense use.

(i) Title 26 S 5811 subsection (a) is replaced with the following:

(a) Rate - There shall be levied, collected, and paid on firearms transferred a tax at the rate of $200 for each firearm transferred, except, the transfer tax on any firearm classified as any other weapon under section 5845 (e) shall be at the rate of $5 for each such firearm transferred, and no transfer tax shall be levied or collected for any Readily Convertible weapon under section 5845 (c).

(j) Title 26 S 5871 is replaced with the following:

(1) Any person who violates or fails to comply with any provisions of this chapter and utilizes the violating weapon in a violent felony or misdemeanor shall, upon conviction, be fined not more than $10,000, or be imprisoned not more than ten years, or both for violation of the National Firearms Act, in addition to any penalties resulting from the crime in question.
(2)Any person who violates or fails to comply with any provisions of this chapter, but who has not used the weapon in question in any associated criminal use,shall, upon conviction, be fined not more than $5,000, or be imprisoned not more than three hundred days, or both.
(3) The agency responsible for collection and management of the taxes under this chapter shall provide forms and mechanisms for individuals in violation to report and legalize the offending firearms.  Such individuals shall be charged a violation fee of $200 and shall be required to surrender the firearm in question as determined by regulation.  Said individual may submit an application as if they were making the firearm in question (including all payment of taxes) to legally register such firearm under this chapter. Once completed the individual may take possession legally, and the firearm shall be considered registered with tax paid as required in this chapter.  The individual shall not be subject to any criminal prosecution for the creation or possession of the weapon in question once the agency is notified as required under this provision.