,i #aagth ,,congress #b;d ,session ,h4 ,r4 #hgdj ,,in ,,the ,,house ,,of ,,representatives ,august #bc1 #bjbb,mrs4 ,carolyn ,b4 ,maloney of ,new ,york introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to establish reasonable controls on firearms manufacturers and importers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,firearm ,industry ,crime and ,trafficking ,accountability ,act4 #b4 ,findings ,the ,congress finds as follows3 7#a7 ,the firearm industry has engaged in dangerous business practices1 flooding ,american communities with weapons of war like ,,ar-#aes and other semiautomatic weapons4 ,despite these practices1 the firearm industry is not required to monitor its distribution to ensure that its products are not used for unlawful purposes4 7#b7 ,a study conducted by the ,bureau of ,alcohol1 ,tobacco1 ,firearms1 and ,explosives 7,,atf7 found that #e percent of licensed dealers sell about #ij percent of guns used in crimes 7also known as crime guns74 ,firearm manufacturers1 through trace data provided by the ,,atf1 often know exactly which dealers and distributors disproportionately sell these crime guns4 7#c7 ,despite these indicators of diversion1 firearm manufacturers have failed to adequately curtail their distribution practices and sought to evade any responsibility for preventing the widespread misuse of their products--rejecting ,,atf resources and failing to effect change at the top of the distribution pyramid4 7#d7 ,firearm manufacturers also sell dangerous firearms to distributors and retailers who1 according to ,,atf data1 can fail to comply with ,federal firearms law4 ,the trace analysis of #b1jjj firearms dealers cited by the ,,atf found that half of the dealers sold firearms to customers without conducting the background checks required by ,federal law4 ,firearms dealers often flouted ,federal laws and regulations1 sold weapons to convicted felons and domestic abusers1 lied to investigators1 and falsified records4 #c4 ,requirement to create reasonable controls and monitoring system ,each manufacturer or importer of firearms in or affecting interstate commerce shall implement reasonable controls to prevent1 and create and maintain a monitoring database to retain essential facts concerning1 the criminal diversion or potential misuse of their products4 #d4 ,prohibited activities ,it shall be unlawful for any manufacturer or importer of firearms in or affecting interstate commerce to-- 7#a7 supply a firearm to a distributor or retailer of the firearm1 knowing or having reasonable cause to believe that the distributor or retailer has failed to implement reasonable controls or engaged in distribution1 sales1 or other practices likely to result in a high risk of criminal diversion or misuse2 7#b7 fail to investigate or inquire as to the distribution practices of such a distributor or retailer1 knowing or having reasonable cause to believe that the distributor or retailer has failed to implement reasonable controls or engaged in distribution1 sales1 or other practices likely to result in a high risk of criminal diversion or misuse2 or 7#c7 supply a quantity of firearms to a ,state or distribution area1 knowing or having reasonable cause to believe that the quantity exceeds the lawful demand for firearms in the ,state or distribution area4 #e4 ,required activities ,each manufacturer or importer of firearms in or affecting interstate commerce shall-- 7#a7 report to the ,director on any pattern1 distribution1 or repeated instances of a distributor or retailer of a firearm whom the firearm manufacturer or importer knows or has reasonable cause to believe has failed to implement reasonable controls or engaged in distribution1 sales1 or other practices likely to result in a high risk of criminal diversion or misuse2 7#b7 report to the ,director annually1 in such form and manner as the ,director shall prescribe1 all instances of criminal diversion or misuse of a product distributed or sold by the manufacturer or importer1 as the case may be1 of which the manufacturer or importer1 as the case may be1 is aware1 and shall include in the report an itemization of the firearms involved by category2 and 7#c7 keep for a period of #e years all trace records1 relevant communications1 and other relevant information pertaining to the monitoring database of the manufacturer or importer1 as the case may be4 #f4 ,exemptions 7a7 ,in general ,sections #c through #e shall not apply to a manufacturer who manufactures fewer than #c1jjj firearms per year4 7b7 ,waiver authority ,the ,director may waive the applicability of such sections to a manufacturer who manufactures not more than #f1jjj firearms per year1 on finding that the provision of such a waiver will not harm public safety1 except that the ,director may not provide such a waiver to a manufacturer who manufactures a semiautomatic firearm or any copy1 duplicate1 variant1 or altered facsimile with the capability of a semiautomatic firearm4 #g4 ,definitions ,in this ,act3 7#a7 ,,atf ,the term ,,atf means the ,bureau of ,alcohol1 ,tobacco1 ,firearms1 and ,explosives4 7#b7 ,criminal diversion ,the term criminal diversion means the unlawful sale or distribution of a firearm by1 to1 or through a firearm trafficker1 straw purchaser1 or person prohibited by law from possessing a firearm1 and any transfer or possession of a firearm in violation of law4 7#c7 ,director ,the term ,director means the ,director or the ,acting ,director of ,,atf4 7#d7 ,essential facts ,the term essential facts means crime gun trace data1 information on distributor or retailer compliance with ,,atf inspections1 information on distributor or retailer compliance with ,state inspections1 where applicable1 information concerning distributor or retailer compliance with applicable background check requirements with respect to firearms sold by the manufacturer or importer1 and such other information as the ,director may deem useful in preventing criminal diversion or misuse of firearms4 7#e7 ,firearm ,the term firearm has the meaning given the term in section #iba7;a77#c7 of title #ah1 ,united ,states ,code4 7#f7 ,importer ,the term importer has the meaning given the term in section #iba7;a77#i7 of title #ah1 ,united ,states ,code4 7#g7 ,manufacturer ,the term manufacturer has the meaning given the term in section #iba7;a77#aj7 of title #ah1 ,united ,states ,code4 7#h7 ,monitoring database ,the term monitoring database means a system capable of incorporating and analyzing-- 7,a7 information obtained from gun trace data1 ,,atf notifications1 dealer inspections1 and ,state and local law enforcement notifications2 and 7,b7 such other information as the ,director may deem important and useful4 7#i7 ,reasonable controls ,the term reasonable controls means procedures or practices designed to prevent the unlawful sale or distribution of a firearm1 including by preventing such a sale to a firearm trafficker1 straw purchaser1 person prohibited by ,federal or ,state law from possessing a firearm1 or person who the seller knows or has reasonable cause to believe will use a firearm unlawfully or for self-harm4 7#aj7 ,semiautomatic firearm ,the term semiautomatic firearm means any repeating firearm which utilizes a portion of the energy of a firing cartridge or shell to extract the fired cartridge case or shell and chamber the next round1 and which requires a separate pull of the trigger to fire each cartridge or shell4 7#aa7 ,straw purchaser ,the term straw purchaser means a person who1 in connection with the acquisition or attempted acquisition of a firearm1 makes any false or fictitious oral or written statement intended to conceal that the purchase is being made on behalf of a third party1 unless the acquisition or attempted acquisition is for the purpose of making a bona fide gift to a third party who is not prohibited by law from possessing or receiving a firearm4 ,for purposes of the preceding sentence1 a gift to a third party is not a bona fide gift if the third party has offered or given the purchaser a service or thing of value to acquire the firearm for the third party4 #h4 ,penalties 7a7 ,administrative remedies ,with respect to each violation of section #c1 #d1 or #e1 the ,director shall1 after notice and opportunity for hearing1 subject the violator to a civil penalty1 in an amount to be determined by the ,director which shall be-- 7#a7 in the case of the #ast such violation by the violator1 not less than #aej1jjj and not more than #a percent of the gross annual revenue of the violator2 7#b7 in the case of the #bnd such violation1 not less than #cjj1jjj and not more than #b percent of the gross annual revenue of the violator2 or 7#c7 in the case of the #crd or subsequent such violation1 not less than #a1jjj1jjj and not more than #f percent of the gross annual revenue of the violator4 7b7 ,judicial remedies in the case of knowing violations 7#a7 ,in general ,in the case of a violation of section #d or #e that the ,director determines was committed knowingly1 the ,director shall also bring a civil action against the violator in the ,united ,states ,district ,court for the ,district of ,columbia4 ,if the ,director proves the violation by a preponderance of the evidence1 the court shall order the ,director to place the violator under an ,,atf monitoring system to prevent criminal diversion of the products of the violator1 for not more than #e years4 7#b7 ,license suspension for violation while subject to ,,atf monitoring system ,if the ,director determines that1 while subject to such a monitoring system1 the violator has knowingly violated section #d or #e1 the ,director may bring a civil action in the ,united ,states ,district ,court for the ,district of ,columbia4 ,if the ,director proves the violation by a preponderance of the evidence1 the court shall order the ,director to suspend for #c months any license issued to the violator under chapter #dd of title #ah1 ,united ,states ,code4 #i4 ,administrative provisions 7a7 ,request for records ,on request of the ,director1 a manufacturer or importer of firearms shall provide the ,director with such records as the ,director determines will assist the ,director in ensuring compliance with this ,act4 7b7 ,availability of trace data ,the ,director may make available to a manufacturer or importer of firearms any data requested by the manufacturer or importer1 as the case may be1 from the ,national ,tracing ,center or the ,director of ,industry ,operations4 7c7 ,provision of information to other ,federal law enforcement agencies1 or ,state or local governments ,on request of a ,federal law enforcement agency1 the ,director shall provide information obtained under this ,act to the agency1 and may provide the information to ,state and local law enforcement authorities4 #aj4 ,annual report to ,congress ,the ,director shall submit to the ,congress1 and make easily accessible to the public on the website of the ,,atf1 annual reports summarizing the information reported pursuant to section #e7b71 which shall include copies of the reports made pursuant to section #e7b7 and supporting economic analyses4 #aa4 ,trade secrets and confidential information ,this ,act shall not be interpreted to require the disclosure of information that is exempt from public disclosure under section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act74 #ab4 ,regulations ,within #ah months after the date of the enactment of this ,act1 the ,director shall promulgate final regulations necessary to implement the preceding provisions of this ,act1 including regulations necessary to ensure that manufacturers and importers of firearms comply with sections #c through #e4 ,in promulgating regulations to enforce section #d7c71 the ,director shall take into account factors such as population1 reports of lost and stolen firearms1 types of firearms used in crimes1 firearms traced to distributors and retailers in other ,states1 and firearm traces4 #ac4 ,effective date ,the preceding provisions of this ,act shall take effect on the date final regulations are promulgated under section #aa4 #ad4 ,repeal of certain limitations on the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives 7a7 ,repeal of certain limitations on the use of database information of the ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives 7#a7 ,the matter under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,consolidated and ,further ,continuing ,appropriations ,act1 #bjab 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aab-ee2 #abe ,stat4 #fji-faj7 is amended by striking the #fth proviso4 7#b7 ,the #fth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,consolidated ,appropriations ,act1 #bjaj 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aaa-aag2 #abc ,stat4 #cabh-cabi7 is amended by striking beginning in fiscal year #bjaj and thereafter and inserting in fiscal year #bjaj4 7#c7 ,the #fth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,omnibus ,appropriations ,act1 #bjji 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aaa-h2 #abc ,stat4 #egd-egf7 is amended by striking beginning in fiscal year #bjji and thereafter and inserting in fiscal year #bjji4 7#d7 ,the #fth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,consolidated ,appropriations ,act1 #bjjh 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aaj-afa2 #aba ,stat4 #aijc-aijd7 is amended by striking beginning in fiscal year #bjjh and thereafter and inserting in fiscal year #bjjh4 7#e7 ,the #fth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,i of the ,science1 ,state1 ,justice1 ,commerce1 and ,related ,agencies ,appropriations ,act1 #bjjf 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aji-ajh2 #aai ,stat4 #bbie-bbif7 is amended by striking with respect to any fiscal year4 7#f7 ,the #fth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,i of division ,b of the ,consolidated ,appropriations ,act1 #bjje 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #ajh-ddg2 #aah ,stat4 #bhei-bhfj7 is amended by striking with respect to any fiscal year4 7b7 ,elimination of prohibition on processing of ,freedom of ,information ,act requests about arson or explosives incidents or firearm traces ,section #fdd of division ,j of the ,consolidated ,appropriations ,resolution1 #bjjc 7#e ,u4,s4,c4 #eeb note2 ,public ,law #ajh-g2 #aag ,stat4 #dgc7 is repealed4 7c7 ,repeal of limitations on imposition of requirement that firearms dealers conduct physical check of firearms inventory ,the #eth proviso under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,consolidated and ,further ,continuing ,appropriations ,act1 #bjac 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aac-f2 #abg ,stat4 #bdh7 is amended by striking and any fiscal year thereafter4 7d7 ,elimination of prohibition on consolidation or centralization in the ,department of ,justice of firearms acquisition and disposition records maintained by ,federal firearms licensees ,the matter under the heading ,bureau of ,alcohol1 ,tobacco1 ,firearms and ,explosives--,salaries and ,expenses in title ,,ii of division ,b of the ,consolidated and ,further ,continuing ,appropriations ,act1 #bjab 7#ah ,u4,s4,c4 #ibc note2 ,public ,law #aab-ee2 #abe ,stat4 #fji7 is amended by striking the #ast proviso4