SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gun Industry Accountability Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Across the Nation, local communities are bringing 
        rightful legal claims against the gun industry to seek changes 
        in the manner in which the industry conducts business in the 
        civilian market in those communities.
            (2) Since firearms are the only widely available consumer 
        product designed to kill, firearm manufactures, distributors, 
        and retailers have a special responsibility to take into 
        account the health and safety of the public in marketing 
        firearms.
            (3) The gun industry has failed in this responsibility by 
        engaging in practices that have contributed directly to the 
        terrible burden of firearm-related violence on society.
            (4) The gun industry has generally refused to include 
        numerous safety devices with their products, including devices 
        to prevent the unauthorized use of a firearm, indicators that a 
        firearm is loaded, and child safety locks, and the absence of 
        such safety devices has rendered these products unreasonably 
        dangerous.
            (5) The gun industry has also engaged in distribution 
        practices in which the industry oversupplies certain legal 
        markets with firearms with the knowledge that the excess 
        firearms will be distributed into nearby illegal markets.
            (6) According to the National Center for Injury Prevention 
        and Control--
                    (A) at least 80 percent of the economic costs of 
                treating firearms injuries are paid for by taxpayer 
                dollars; and
                    (B) in 1990, firearm injuries resulted in costs of 
                more than $24,000,000,000 in hospital and other medical 
                care for long-term disability and premature death.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Federal damages.--The term ``Federal damages'' means 
        the amount of damages sustained by the Federal Government as a 
        result of the sale, distribution, use or misuse of a firearm 
        (including gun violence) including damages relating to medical 
        expenses, the costs of continuing care and disabilities, law 
        enforcement expenses, and lost wages.
            (2) Firearm.--The term ``firearm'' has the meaning given 
        the term in section 921 of title 18, United States Code.
            (3) Gun violence.--The term ``gun violence'' means any 
        offense under Federal or State law that--
                    (A) constitutes a crime of violence (as defined in 
                section 16 of title 18, United States Code); and
                    (B) involves the use of a firearm.
            (4) Manufacturer.--The term ``manufacturer'' has the 
        meaning given the term in section 921 of title 18, United 
        States Code;
            (5) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands.
            (6) Unit of local government.--The term ``unit of local 
        government'' means any city, town, township, county, parish, 
        village, or other general purpose political subdivision of a 
        State.

SEC. 4. RECOVERY OF FEDERAL DAMAGES BY STATES AND UNITS OF LOCAL 
              GOVERNMENT SEEKING FEDERAL DAMAGES.

    (a) In General.--In any civil action by a State or unit of local 
government against a manufacturer of firearms to recover damages 
relating to the sale, distribution, use or misuse of a firearm 
(including gun violence) in the State or unit of local government, the 
State or unit of local government may, in addition to other damages, 
recover any Federal damages associated with the claim as provided in 
this section.
    (b) Federal Actions.--If the Attorney General files an action 
against a manufacturer of firearms to recover Federal damages, a State 
or unit of local government may not recover those Federal damages under 
this section in any action filed on or after the date on which the 
Attorney General files that action.
    (c) Actions Brought by a State or Unit of Local Government.--
            (1) Notice of civil action.--A State or unit of local 
        government seeking to recover Federal damages under this 
        section shall serve a copy of the complaint on Attorney General 
        in accordance with rule 4 of the Federal Rules of Civil 
        Procedure.
            (2) Entry of appearance.--If the Attorney General is served 
        under paragraph (1), the Attorney General may proceed with the 
        action by entering an appearance before the expiration of the 
        30-day period beginning on the date on which the Attorney 
        General is served under paragraph (1).
            (3) Effect of failure to enter appearance or proceed with 
        the action.--If a State or unit of local government serves the 
        Attorney General under paragraph (1), the State of unit of 
        local government may recover Federal damages under this section 
        only if the Attorney General--
                    (A) fails to enter an appearance in the action in 
                accordance with paragraph (2) or gives written notice 
                to the court of an intent not to enter the action; or
                    (B) does not proceed with the action before the 
                expiration of the 6-month period (or such additional 
                period as the court may allow after notice) beginning 
                on the date on which the Attorney General enters an 
                appearance under paragraph (2).
            (4) Limitation.--If the Attorney General enters an 
        appearance under paragraph (2) and proceeds with the action 
        before the expiration of the 6-month period described in 
        paragraph (3)(B), the State or unit of local government may not 
        recover Federal damages under this section.
    (d) Prevention of Dual Recovery of Federal Damages.--If there is a 
conflict between a State and 1 or more units of local government within 
the State over which jurisdiction may recover Federal damages under 
this section on behalf of a certain area in the State, only the first 
jurisdiction to file an action described in subsection (a) may recover 
those Federal damages.
    (e) Federal Right to Damages in Other Actions.--The recovery of 
Federal damages by a State or unit of local government under this 
section may not be construed to waive any right of the Federal 
Government to recover other Federal damages in an action by the 
Attorney General.
    (f) Dismissal or Compromise.--
            (1) In general.--In an action for Federal damages brought 
        by a State or unit of local government under this section--
                    (A) the action may not be dismissed or compromised 
                without the approval of the court; and
                    (B) notice of the proposed dismissal or compromise 
                shall be given to the Attorney General in such manner 
                as the court directs.
            (2) Court approval.--In approving the dismissal or 
        compromise of an action described in paragraph (1), the court 
        shall--
                    (A) state whether the dismissal or compromise is 
                with or without prejudice to the right of the Federal 
                Government to bring an action for the Federal damages 
                at issue; and
                    (B) determine the percentage of any amount 
                recovered by the State or unit of local government that 
                represents Federal damages.
    (g) Distribution and Use of Federal Damages Recovered.--Of the 
total amount of Federal damages recovered by a State or local 
government under this section (including any amount recovered pursuant 
to a dismissal or compromise under subsection (f))--
            (1) \1/3\ shall be paid to the Federal Government, to be 
        used for crime prevention, mentoring programs, and firearm 
        injury prevention research and activities; and
            (2) \2/3\ shall be retained by the State or unit of local 
        government, of which--
                    (A) \1/3\ shall be used for--
                            (i) law enforcement activities;
                            (ii) families of law enforcement officers 
                        injured or killed in the line of duty as a 
                        result of gun violence; and
                            (iii) a compensation fund for the victims 
                        of gun violence; and
                    (B) \1/3\ shall be used for education (reduce class 
                size, school modernization, after school, summer 
                school, and tutoring), child care, or children's health 
                care; and
                    (C) \1/3\ may be used by the State or unit of local 
                government in the discretion of the State or unit of 
                local government.
    (h) Effective Date.--
            (1) In general.--Subject to paragraph (2), this section 
        only applies to an action described in subsection (a) that is 
        filed on or after the date of enactment of this Act.
            (2) Amendment of complaint in pending actions.--This 
        section applies to an action described in subsection (a) that 
        is filed before the date of enactment of this Act, if--
                    (A) as of such date of enactment, there has been no 
                dismissal, compromise, or other final disposition of 
                the action; and
                    (B) after such date of enactment, the State or unit 
                of local government amends the complaint to include 
                relief for Federal damages pursuant to this section.
Gun Industry Accountability Act - Provides that in any civil action by a State or local government against a manufacturer of firearms to recover damages relating to the sale, distribution, use, or misuse of a firearm (including gun violence) within the State or local governmental area, the State or local government may recover Federal damages associated with the claim. 
Bars the State or local government from recovering Federal damages with respect to which the Attorney General files an action against a firearms manufacturer. 
Sets forth procedures regarding actions brought by a State or local government, including notice of civil action, entry of appearance, effect of failure to enter an appearance or proceed with the action, prevention of dual recovery of Federal damages (if there is a conflict between a State and one or more local governments within the State), and dismissal or compromise. 
Establishes a formula for the distribution and use of Federal damages recovered by a State or local government.
Gun Industry Accountability Act