the printing of the public hearings, which will include such statements along with the oral testimony of those persons who appear in person. In the case of both those persons who are scheduled to appear in person and of those who submit written statements in lieu of a personal appearance, if it is desired, an additional 60 copies of the written statements should be submitted for distribution to the press and the interested public. These additional 60 copies for the press and interested public can be delivered to the committee office, room 1102, Longworth House Office Building, on the day of the witnesses' appearance, in the case of those who are scheduled to appear. In the case of those submitting statements in lieu of a personal appearance, these additional copies should be received no later than the close of business Tuesday, July 20. Format of all written statements. To more usefully serve their purpose, all written statements should begin with a summary of comments and recommendations and the detailed statements which follow should contain subject headings conforming to the summary of comments and recommendations. The summaries of comments and recommendations will be printed as a separate part of the public hearings as well as being contained in the proper place along with the person's full detailed statement. Hon. JOHN W. MCCORMACK, Speaker of the House of Representatives, THE SECRETARY OF THE TREASURY, DEAR MR. SPEAKER: There are transmitted herewith drafts of proposed bills, "to amend the Federal Firearm's Act" and "to amend the National Firearms Act." The proposed bills are designed to implement the recommendations of the President with respect to firearms control contained in his message of March 8, 1965, relating to law enforcement and the administration of justice. In brief, the proposed legislation would do the following: (1) Prohibit mail-order sales of firearms to individuals by limiting firearms shipments in interstate and foreign commerce to shipments between federally licensed importers, manufacturers, and dealers; (2) Prohibit sales by federally licensed importers, manufacturers, and dealers, of all types of firearms to persons under 21 years of age, except that sales of sporting rifles and shotguns could continue to be made to persons over 18 years of age; (3) Curb the flow into the United States of surplus military weapons and other firearms not suitable for sporting purposes; (4) Bring under Federal control interstate shipment and disposition of large caliber weapons such as bazookas and antitank guns, and destructive devices such as grenades, bombs, missiles, and rockets; (5) Increase license fees, registration fees, and occupational taxes under the Federal and National Firearms Acts; and (6) Provide other Federal controls designed to make it feasible for States to control more effectively the traffic in firearms within their own borders under their own police power. There are enclosed analyses which describe the provisions of the two draft bills in more detail. The proposed legislation has been prepared in consultation with the Department of Justice and the Attorney General joins me in urging its prompt enactment. It would be appreciated if you would lay the proposed bills before the House of Representatives. Identical bills have been transmitted to the President of the Senate. The Department has been advised by the Bureau of the Budget that the proposed legislation would be in accord with the President's program. Sincerely yours, DOUGLAS DILLON. EXPLANATION OF BILL TO AMEND THE NATIONAL FIREARMS ACT Under the bill, the scope of the National Firearms Act (which now covers gangster-type weapons such as machineguns, sawed-off shotguns, and deceptive weapons such as flashlight guns, fountain pen guns, etc.) would be broadened 51-635 0-65-pt. 1——2 to include destructive devices such as explosive or incendiary (1) bombs, (2) grenades, (3) rockets, (4) missiles, or (5) similar weapons, as well as large caliber weapons such as mortars, antitank guns, bazookas, etc. This would mean that such weapons would be subject to all provisions of the act and that persons engaging in business as importers, manufacturers, and dealers in such weapons would be required to register and pay special (occupational) tax. Also, the taxes applicable in respect of the making and transfer of weapons such as machineguns would be applicable with respect to the making and transfer of such destructive devices. Also, it would be unlawful for a person to possess a destructive device of this character unless such device was registered with the Secretary of the Treasury. The bill would also increase to twice the present rate all of the rates of tax in the National Firearms Act (chapter 53 of the Internal Revenue Code of 1954). The principal rates have not been changed since the original enactment of the act in 1934. Therefore, it is necessary to increase the rates in order to carry out the purposes of the act. In addition, the bill contains certain additional strengthening and clarifying amendments to the National Firearms Act. Section 1 SECTION-BY-SECTION ANALYSIS This section would amend section 5848 of the Internal Revenue Code of 1954 which is the section of the National Firearms Act containing the definition of the weapons subject to the act (chapter 53 of the Internal Revenue Code is cited as the National Firearms Act). Paragraph (a) Paragraph (a) of section 1 would amend paragraph (1) of section 5848 of the Internal Revenue Code of 1954 to include destructive devices within the term "firearms," as used in the National Firearms Act. The effect of this is to make the provisions of the act applicable to a "destructive device" as that term is defined in paragraph (c) of section 1 of the draft bill. Paragraph (b) Paragraph (b) of section 1 would amend paragraph (2) of section 5848 of the Internal Revenue Code of 1954 (which is the definition of "machinegun" contained in the National Firearms Act) to include any weapons "which can readily be restored to shoot" automatically or semiautomatically, more than one shot, without manual reloading, by a single function of the trigger. This is merely a clarification of the law and represents the administrative construction of existing law. The definition of machinegun would be further amended to include "the frame or receiver" of a machinegun. Under the Federal Firearms Act, the frame or receiver of a firearm is included within the definition of a firearm. This change would bring the frame or receiver of a machinegun within the coverage of the National Firearms Act. The definition of machinegun is further amended to include "any combination of parts designed and intended for use in converting a weapon, other than a machinegun, into a machinegun." For example, so-called conversion kits are now made and sold for the purpose of converting certain rifles so that they will fire automatically or semiautomatically more than one shot, without manual reloading, by a single function of the trigger (i.e., converting such rifles into machineguns). However, under existing law, there is no effective way to control the manufacture and transfer of such kits. This change is designed to correct this situation and to prevent subversion of the purposes of the act. Paragraph (c) Paragraph (c) of section 1 provides for the renumbering of paragraphs (3) through (11) as paragraphs (4) through (12), respectively, of section 5848 of the Internal Revenue Code of 1954, and for the insertion after paragraph (2) of such section of the code of 1954, and for the insertion after paragraph (2) of such section of the code of a new paragraph (3). The new paragraph (3) would insert a definition of the term "destructive device." The definition of the term "destructive device" contained in paragraph (3) of section 5848 of the Internal Revenue Code of 1954, as contained in the bill is a new provision. It would bring under the coverage of the National Firearms Act any explosive or incendiary (a) grenade or (b) bomb or (c) rocket or (d) missile or (e) similar weapon, or launching device therefor (except devices which are not designed or redesigned or used or intended for use as a weapon), and would include all large caliber weapons such as bazookas, mortars, antitank guns, etc. The parenthetical exception contained in this definition is drafted in the same manner as the exceptions contained in title 26 U.S.C. section 5179(a) (relating to registration of stills) and section 5205(a)(2) (relating to stamps on containers of distilled spirits). Therefore, the decisions of the courts (Queen v. United States, 77 F. 2d 780; cert. den. 295 U.S. 755; and Scherr v. United States, 305 U.S. 251) to the effect that the Government is not required to allege or prove the matter contained in an exception would be applicable. Establishment by a person that he came within the exception would be a matter of affirmative defense. Thus, an explosive device shown to be designed and intended for lawful use in construction or for other industrial purposes would be excepted. However, if the device were designed or used or intended for use as a weapon, it would be subject to the provisions of the act. A provision has been made in this definition that the Secretary may exclude from the definition any device which he finds is not likely to be used as a weapon. Examples of devices which may be excluded from this definition are devices such as Very pistols and other signaling devices and line-throwing appliances (required for commercial vessels by U.S. Coast Guard regulations) which may have been made from converted firearms. This provision also makes it possible to deal with any other comparable situation which may arise, such as old cannon or field pieces which are primarily of historical significance and with respect to which there is no reasonable likelihood that they will be used as weapons. Paragraph (d) Paragraph (d) of section 1 would amend paragraph (4) (as renumbered) of section 5848 of the Internal Revenue Code of 1954 by striking out the period at the end thereof and inserting the words ", and shall include the frame or receiver of any such weapon, and any such weapon which can readily be restored to firing condition." The effect of this change is to include the frame or receiver of a rifle within the definition of that term as used in the National Firearms Act. This change is comparable to the corresponding change in the definition of "machinegun" contained in paragraph (b) of this section. The inclusion in the definition of the language “, and any such weapon which can readily be restored to firing condition" represents a clarification of law and is consistent with the administrative construction of existing law. Paragraph (e) Paragraph (e) of section 1 would amend paragraph (5) (as renumbered) of section 5848 of the Internal Revenue Code of 1954. This paragraph contains the definition of the term "shotgun" and the change is identical with the change made with respect to the definition of "rifle" referred to in paragraph (d) above. Section 2 Section 2 would amend chapter 53 of the Internal Revenue Code of 1954 by providing that, "Wherever in such chapter a tax is imposed, the rate of tax shall be twice the rate in effect on the day before the day this Act takes effect." effect." However, as to the special (occupational) taxes imposed under section 5801 of the Internal Revenue Code of 1954, the increased rates would not take effect until the first day of July following the date of enactment. The effect of this section would be: 1. To increase the special (occupational) tax imposed under section 5801 (a) (1) in respect of importers or manufacturers from $500 a year or fraction thereof to $1,000 a year or fraction thereof; 2. To increase the special (occupational) tax imposed under section 5801 (a) (2) in respect of dealers (other than pawnbrokers) from $200 a year or fraction thereof, to $400 a year or fraction thereof; 3. To increase the tax imposed under section 5801 (a) (3) in respect of pawnbroker dealers from $300 a year or fraction thereof to $600 a year or fraction thereof; 4. To increase the special (occupational) tax imposed under section 5801 (a) (3) in respect to manufacturers and dealers in guns classified as "any other weapon" and certain guns with combination shotgun and rifle barrels from $25 a year or fraction thereof in the case of manufacturers to $50 a year or fraction thereof, and with respect to dealers from $10 a year or fraction thereof to $20 a year to fraction thereof; 5. To increase the transfer tax levied under section 5811 (a) on the transfer of machineguns, sawed-off shotguns, destructive devices, etc., from $200 for each such weapon transferred in the United States to $400 for each such weapon so transferred; 6. To increase the transfer tax levied under section 5811(a) on the transfer of "any other weapon" and certain guns with combination shotgun and rifle barrels from $5 for each firearm transferred in the United States to $10 for each such weapon so transferred; and 7. To increase the tax imposed under section 5821 (a) on the making of any firearm subject to the National Firearms Act (by persons other than those excepted from the making tax) from $200 for each firearm so made to $400 for each firearm. It should be noted that section 2 would in no way effect exemptions and exceptions contained in the National Firearms Act with respect to these taxes. (See sec. 5803, sec. 5812, and sec. 5821 (b) in this regard.) The principal rates have not changed since the original enactment of the National Firearms Act in 1934. It is deemed necessary to increase the rates of tax imposed in the National Firearms Act in order to more effectively carry out the purposes of the act. Section 3 Paragraph (a) of section 3 would amend subsection (a) of section 5814 of the Internal Revenue Code of 1954 by adding at the end thereof a new sentence which would provide that at the same time a person forwards a copy of the order form regarding transfer of a firearm to the Secretary or his delegate, as required by subsection (b) of section 5814, he shall forward a copy of the order form to the principal law enforcement officer of the locality wherein he resides. This is intended as an additional requirement and not as a substitute for existing procedures regarding verification of the identity of the applicant. Paragraph (b) of section 3 is a conforming change relating to the amendment contained in paragraph 3(a) and relates to the number of copies of the order form. Paragraph (c) of section 3 would amend subsection (e) of section 5821 of the Internal Revenue Code of 1954 by adding at the end thereof a new sentence providing that at the same time a person making the declaration in respect of making a firearm forwards the declaration to the Secretary or his delegate, he shall forward a copy thereof to the principal law enforcement officer of the locality wherein he resides. This provision is intended to be in addition to any other existing procedures, and not as a substitute for the procedures requiring verification of the identity of the person making the declaration. Paragraph (d) of section 3 would amend section 5843 of the Internal Revenue Code of 1954 (which relates to the identification of firearms) by inserting at the end thereof a new sentence. This provision is intended to provide for the identification of a firearm (possessed by a person other than a manufacturer or importer) which does not bear the proper identification. Section 4 Section 4 of the bill would add a new section 5850 to subchapter B of chapter 53 of the Internal Revenue Code of 1954 which would provide that "Nothing in this chapter shall be construed as modifying or affecting the requirements of section 414 of the Mutual Security Act of 1954, as amended, with respect to the manufacture, exportation, and importation of arms, ammunition, and implements of war." This provision is merely for the purpose of assuring that the chapter will be so construed. Section 5 Section 5 of the bill contains technical conforming changes with respect to sections 5801 and 5811 of the Internal Revenue Code of 1954 made necessary by reason of the renumbering of the paragraph containing the definition of “any other weapon" in section 5848 of the Internal Revenue Code of 1954. Section 6 This section contains the effective date provisions. Subsection (a) This subsection provides that this act shall take effect on the first day of the second month following the month it is enacted. Subsection (b) This subsection provides that, notwithstanding the provisions of subsection (a), any person required to register a firearm under the provisions of section 5841 of the Internal Revenue Code of 1954, by reason of the amendments to section 5848 of such code contained in the first section of this act, shall have 30 days from the effective date of this act to register such firearm, and that no liability (criminal or otherwise) shall be incurred in respect to failure to so register under such section prior to the expiration of such 30 days. This provision is necessary so that a person who possesses a firearm which is brought under this coverage of the National Firearms Act, by reason of the amendments to such act which are contained in the first section of the bill, will be afforded a reasonable opportunity to comply with the registration requirements contained in section 5841 of the Internal Revenue Code of 1954. However, full compliance with all other provisions of the National Firearms Act, as amended by this bill, would be required commencing on the effective date provided in subsection (a). For example, the provisions relating to the making of a firearm, to the transfer of a firearm, and to the importation of a firearm would be fully effective as of the date specified in subsection (a). A BILL To amend the National Firearms Act to impose special (occupational) taxes with respect to engaging in the business of importing, manufacturing, and dealing in destructive weapons such as bombs, grenades, rockets, missiles, bazookas, and antitank guns, to impose taxes with respect to the making and to the transfer of such weapons, and to increase the rates of special (occupational) tax, transfer tax, and making tax imposed by the Act, and for other purposes Be it enacted by the Senate and the House of Representatives of the United States of America in Congress assembled, That (a) Paragraph (1) of section 5848 of the Internal Revenue Code of 1954 is amended by inserting after "or a machinegun," the words "or a destructive device,". (b) Paragraph (2) of section 5848 of the Internal Revenue Code of 1954 is amended by inserting after the words "or is designed to shoot," the words "or which can readily be restored to shoot," and by striking out the period at the end thereof, and inserting after the word "trigger" the words ", and shall inIclude (A) the frame or receiver of any such weapon, and (B) any combination of parts designed and intended for use in converting a weapon, other than a machinegun, into a machinegun". (c) Section 5848 of the Internal Revenue Code of 1954 is amended by renumbering paragraphs (3), (4), (5), (6), (7), (8), (9), (10), and (11) as paragraphs (4), (5), (6), (7), (8), (9), (10), (11), and (12) respectively, and by inserting after paragraph (2) a new paragraph (3) as follows: "(3) The term 'destructive device' means any explosive or incendiary (a) bomb or (b) grenade or (c) rocket or (d) missile or (e) similar device, or launching device therefor (except a device which is not designed or redesigned or used or intended for use as a weapon or part thereof); and the term shall also include any type of weapon by whatsoever name known (other than a shotgun having a barrel or barrels of 18 or more inches in length), which will, or which is designed to, or which may be readily converted to, expel a projectile, or projectiles by the action of an explosive, the barrel or barrels of which have a bore of one-half inch or more in diameter: Provided, That, the Secretary or his delegate may exclude from this definition any device which he finds is not likely to be used as a weapon." (d) Paragraph (4) of section 5848 of the Internal Revenue Code of 1954 (as renumbered) is amended by striking out the period at the end thereof and inserting the words ", and shall include the frame or receiver of any such weapon, and any such weapon which can readily be restored to firing condition." (e) Paragraph (5) of section 5848 of the Internal Revenue Code of 1954 (as renumbered) is amended by striking out the period at the end thereof and inserting the words “, and shall include the frame or receiver of any such weapon, and any such weapon which can readily be restored to firing condition." SEC. 2. Wherever in Chapter 53 of the Internal Revenue Code of 1954 a tax is imposed, the rate of such tax shall be twice the rate in effect on the day |