SECTION 1. HANDGUNS IN SCHOOLS LIMITATIONS.

    (a) Establishment.--Chapter 1 of title 23, United States Code, is 
amended by adding at the end the following new section:
``Sec. 161. Handguns in Schools Limitations
    ``(a) Withholding of Funds for Noncompliance.--
            ``(1) General rule.--Beginning with fiscal year 1995 (or a 
        later date determined pursuant to paragraph (2)(A)), the 
        Secretary shall withhold the applicable percentage specified in 
        paragraph (2) of the amount required to be apportioned to a 
        State under paragraphs (1), (2), (5), and (6) of section 104(b) 
        for the fiscal year, if, for any period during the immediately 
        preceding fiscal year, the State does not have in effect a 
        State law that meets the requirements of subsection (c).
            ``(2) Applicable percentages.--
                    ``(A) First fiscal year.--For fiscal year 1995, or 
                the fiscal year immediately following the expiration of 
                the first regular legislative session following the 
                date of enactment of this section, whichever is later, 
                the applicable percentage shall be 5 percent.
                    ``(B) Subsequent fiscal years.--For fiscal year 
                1996, and each subsequent fiscal year, or for the 
                second fiscal year after the expiration of the first 
                regular legislative session following the date of 
                enactment of this section, whichever is later, and for 
                each subsequent fiscal year, the applicable percentage 
                shall be 10 percent.
    ``(b) Period of Availability; Effect of Compliance and 
Noncompliance.--
            ``(1) Period of availability.--Any funds withheld under 
        this section that would otherwise have been apportioned to a 
        State shall remain available for apportionment to the State 
        until the end of the fourth fiscal year following the fiscal 
        year for which the funds were made available.
            ``(2) Apportionment of withheld funds after compliance.--
        If, before the last day of the period for which funds withheld 
        under this section from apportionment are to remain available 
        for apportionment to a State under paragraph (1), the State 
        makes effective a State law that meets the requirements of 
        subsection (c), as soon as practicable after the effective date 
        of the law, the Secretary shall apportion to the State the 
        withheld funds remaining available for apportionment to the 
        State pursuant to paragraph (1).
            ``(3) Effect of noncompliance.--If, on the termination of 
        the period for which funds withheld under this section from 
        apportionment are available for apportionment to a State under 
        paragraph (1), the State does not have in effect a State law 
        that meets the requirements of subsection (c), the sums not 
        obligated shall lapse, or, in the case of funds withheld from 
        apportionment under section 104(b)(5), the funds shall lapse 
        and be made available by the Secretary for projects in 
        accordance with section 118(b).
    ``(c) Requirements for State Law.--
            ``(1) In general.--The Secretary shall consider a State law 
        as meeting the requirements of this subsection if the State law 
        includes--
                    ``(A) the requirements for first offenses and 
                subsequent offenses pursuant to paragraphs (2) and (3); 
                and
                    ``(B) the exemptions described in paragraph (4).
            ``(2) First offenses.--A State law that meets the 
        requirements of this subsection shall specify--
                    ``(A) that on receipt of notification of the 
                principal (or equivalent official) of an elementary 
                school or a secondary school located in the State that 
                an individual was found in possession of a handgun on 
                the premises of the school who is not subject to an 
                exemption described in paragraph (4), the head of the 
                State entity responsible for issuing drivers licenses 
                for the operation of motor vehicles shall, pursuant to 
                such procedures as the head (or appropriate State 
                entity) establishes--
                            ``(i) in the case of an individual who 
                        holds a drivers license issued by the State, 
                        revoke the drivers license of the individual; 
                        or
                            ``(ii) in the case of an individual who 
                        does not hold a drivers license issued by the 
                        State (including any individual who has not 
                        attained the age required under State law to 
                        hold a drivers license), take such action as is 
                        necessary to ensure that the individual is 
                        subject to the restrictions referred to in 
                        subparagraph (B)(ii);
                    ``(B)(i) a revocation period of 5 years applicable 
                to an individual referred to in subparagraph (A)(i) 
                beginning on the date on which the head of a State 
                entity referred to in subparagraph (A) revokes the 
                drivers license of the individual; and
                    ``(ii) a withholding period--
                            ``(I) of 5 years, in the case of an 
                        individual referred to in subparagraph (A)(ii) 
                        who has attained the age required under the law 
                        of the State to hold a drivers license; and
                            ``(II) in the case of an individual 
                        referred to in subparagraph (A)(ii) who has not 
                        attained the age required under the law of the 
                        State to hold a drivers license, that begins on 
                        the date on which the head of a State entity 
                        referred to in such subparagraph takes action 
                        pursuant to such subparagraph and ends on the 
                        later of--
                                    ``(aa) the date on which the 
                                individual attains the age of 18; or
                                    ``(bb) the date that is 5 years 
                                after the head takes the action; and
                    ``(C) that during a withholding period or 
                revocation period described in subparagraph (B), the 
                State may not issue or reissue a drivers license to the 
                individual who is subject to the withholding or 
                revocation.
            ``(3) Subsequent offenses.--A State law that meets the 
        requirements of this subsection shall specify that if, during 
        the 5-year period beginning on the date on which the head of a 
        State entity referred to in paragraph (2)(A) revokes a drivers 
        license of an individual pursuant to paragraph (2)(A)(i), or in 
        the case of an individual who does not hold a drivers license, 
        takes an action pursuant to paragraph (2)(A)(ii), the head 
        receives a notification with respect to the individual by a 
        principal (or equivalent official) pursuant to paragraph 
        (2)(A), the head shall, pursuant to such procedures as the head 
        (or appropriate State entity) shall establish--
                    ``(A)(i) in the case of an individual who holds a 
                drivers license issued by the State, revoke the drivers 
                license for a 10-year period (beginning on the date on 
                which the head receives the notification) during which 
                the State may not reissue a drivers license to the 
                individual; or
                    ``(ii) in the case of an individual who does not 
                hold a drivers license issued by the State, take such 
                action as may be necessary to ensure that the 
                individual may not be issued a drivers license by the 
                State during a period (beginning on the date the head 
                receives the notification) equal to--
                            ``(I) 10 years; plus
                            ``(II) the untolled amount of a revocation 
                        or withholding period applicable to the 
                        individual that has been established pursuant 
                        to paragraph (2)(B) (if any), as of the date 
                        the head takes an action under this subsection; 
                        and
                    ``(B) ensure that during an applicable period 
                specified in subparagraph (A), no individual subject to 
                a revocation or withholding of a drivers license may be 
                issued a drivers license by the State.
            ``(4) Exemptions.--A State law that meets the requirements 
        of this subsection shall specify that the requirements of 
        paragraphs (2) and (3) shall not apply to the possession of a 
        handgun--
                    ``(A) on private property that is not part of the 
                premises of a school;
                    ``(B) if--
                            ``(i) the individual possessing the handgun 
                        is licensed to possess the handgun by the State 
                        in which the elementary school or secondary 
                        school is located or by a political subdivision 
                        of the State; and
                            ``(ii) the State or political subdivision 
                        of the State required that, as a condition of 
                        the issuance of the license, an appropriate law 
                        enforcement authority of the State or political 
                        subdivision of the State verified that the 
                        individual is qualified pursuant to applicable 
                        laws to hold the license;
                    ``(C) that is--
                            ``(i) not loaded; and
                            ``(ii) in a locked container, or a locked 
                        firearms rack that is on a motor vehicle;
                    ``(D) by an individual for use in a program 
                approved by the appropriate official of an elementary 
                school or secondary school (or entity of the State or 
                political subdivision of the State responsible for the 
                administration of the elementary school or secondary 
                school);
                    ``(E) by an individual in accordance with a 
                contract that the appropriate official of the 
                elementary school or secondary school (or entity of the 
                State or political subdivision of the State responsible 
                for the administration of the elementary school or 
                secondary school) has entered into with the individual 
                or employer of the individual;
                    ``(F) by a law enforcement officer acting in an 
                official capacity; or
                    ``(G) that is unloaded and possessed by an 
                individual while traversing the premises of the 
                elementary or secondary school for the purpose of 
                gaining access to public or private lands open to 
                hunting, if the entry on the premises of the elementary 
                school or secondary school is authorized by the 
                appropriate official of the school (or entity of the 
                State or political subdivision of the State responsible 
                for the administration of the elementary school or 
                secondary school).
    ``(d) Definitions.--As used in this section:
            ``(1) Elementary school.--The term `elementary school' has 
        the meaning provided the term in 1471(8) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2891(8)).
            ``(2) Handgun.--The term `handgun' means--
                    ``(A) a firearm that has a short stock and is 
                designed to be held and fired by the use of a single 
                hand; or
                    ``(B) any combination of parts from which a firearm 
                described in subparagraph (A) can be assembled.
            ``(3) Premises.--With respect to an elementary school or 
        secondary school, the term `premises' includes the school 
        building and the grounds of the school.
            ``(4) Secondary school.--The term `secondary school' has 
        the meaning provided the term in section 1471(21) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(21)).''.
    (b) Conforming Amendment.--The analysis for chapter 1 of title 23, 
United States Code, is amended by adding at the end the following new 
item:

``161. Handguns in schools limitations.''.
    (c) Statutory Construction.--Nothing in this section or the 
amendments made by this section is intended to limit the authority of 
the government of a State or political subdivision of a State to enact 
and enforce a law that imposes a penalty that exceeds or supplements 
the penalties specified in section 161 of title 23, United States Code 
(as added by subsection (a)).
Provides for the withholding of Federal highway funds for States that do not require the immediate revocation of the driver's license of an individual who is found in possession of a handgun on the premises of an elementary or secondary school. 
Sets forth provisions regarding:  (1) apportionment of withheld funds; and (2) exemptions.
A bill to require the withholding of Federal highway funds for States that do not require the immediate revocation of the drivers license of an individual who is found in possession of a handgun on the premises of an elementary or secondary school located in the State, and for other purposes.