This bill creates a new licensing requirement for businesses that destroy firearms. Currently, anyone can destroy guns without permission, but this law would require firearm destruction businesses to get a license from the Attorney General before they can operate, similar to how gun dealers need licenses.

The bill specifically targets situations where law enforcement agencies and government entities send guns to be destroyed. If a licensed destroyer receives firearms from police or other government agencies, they must use an approved destruction method that completely renders the guns unusable and reduces them to scrap metal. The bill also requires these licensed destroyers to file annual reports showing how many guns they destroyed and whether they properly used the approved destruction methods.

To help with costs, the bill creates a grant program allowing states, local governments, and tribal governments to receive federal funding to pay licensed destroyers for destroying firearms. Additionally, any fees charged by destruction businesses to government agencies must be made public. The law gives the Attorney General 180 days to write detailed rules explaining what counts as proper destruction and what records businesses must keep. Anyone operating a firearm destruction business without a license would face criminal penalties.