OTTAWA—Newly tabled gun legislation would allow municipalities to ban handguns through bylaws restricting their possession, storage and transportation. The Liberal government said Tuesday the measures would be backed up with serious penalties to enforce these bylaws, including jail time for people who violate municipal rules. Many gun-control advocates have pressed for a national handgun ban, warning that leaving it up to municipalities would create an ineffective patchwork of regulations. As expected, the long-promised bill also proposes a buyback of a wide array of recently banned firearms the government considers assault-style weapons. Owners could turn in their guns for compensation but would also have the option of keeping them as long as the owners abide by strict conditions, including secure storage. Under the rules, these guns could not be legally used, transported, sold, transferred or bequeathed by individuals in Canada. “They cannot be used legally as firearms,” Public Safety Minister Bill …