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which the Secretary finds has been manufactured, or has
been or is intended to be imported, transferred, or distrib-
uted in violation of a regulation prescribed under this Act.
(b) AUTHORITY TO REQUIRE THE RECALL, REPAIR,
OR REPLACEMENT OF, OR THE PROVISION OF REFUNDS
WITH RESPECT TO FIREARM PRODUCTS.—The Secretary
may issue an order requiring the manufacturer of, and
any dealer in, a firearm product which the Secretary de-
termines poses an unreasonable risk of injury to the pub-
lic, is not in compliance with a regulation prescribed under
this Act, or is defective, to—
(1) provide notice of the risks associated with
the product, and of how to avoid or reduce the risks,
to—
(A) the public;
(B) in the case of the manufacturer of the
product, each dealer in the product; and
(C) in the case of a dealer in the product,
the manufacturer of the product and the other
persons known to the dealer as dealers in the
product;
(2) bring the product into conformity with the
regulations prescribed under this Act;
(3) repair the product;
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(4) replace the product with a like or equivalent
product which is in compliance with such regula-
tions;
(5) refund the purchase price of the product,
or, if the product is more than 1 year old, a lesser
amount based on the value of the product after rea-
sonable use;
(6) recall the product from the stream of com-
merce; or
(7) submit to the Secretary a satisfactory plan
for implementation of any action required under this
subsection.
(c) AUTHORITY TO PROHIBIT MANUFACTURE, IM-
PORTATION, TRANSFER, DISTRIBUTION, OR EXPORT OF
UNREASONABLY RISKY FIREARM PRODUCTS.—The Sec-
retary may issue an order prohibiting the manufacture,
importation, transfer, distribution, or export of a firearm
product if the Secretary determines that the exercise of
other authority under this Act would not be sufficient to
prevent the product from posing an unreasonable risk of
injury to the public.
(d) INSPECTIONS.—In order to ascertain compliance
with this Act and the regulations and orders issued under
this Act, the Secretary may, at reasonable times—
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(1) enter any place in which firearm products
are manufactured, stored, or held, for distribution in
commerce, and inspect those areas where the prod-
ucts are manufactured, stored, or held; and
(2) enter and inspect any conveyance being
used to transport a firearm product.
TITLE II—PROHIBITIONS
SEC. 201. PROHIBITIONS.
(a) FAILURE OF MANUFACTURER TO TEST AND CER-
TIFY FIREARM PRODUCTS.—It shall be unlawful for the
manufacturer of a firearm product to transfer, distribute,
or export a firearm product unless—
(1) the manufacturer has tested the product in
order to ascertain whether the product is in con-
formity with the regulations prescribed under section
101;
(2) the product is in conformity with such regu-
lations; and
(3) the manufacturer has included in the pack-
aging of the product, and furnished to each person
to whom the product is distributed, a certificate
stating that the product is in conformity with such
regulations.
(b) FAILURE OF MANUFACTURER TO PROVIDE NO-
TICE OF NEW TYPES OF FIREARM PRODUCTS.—It shall
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be unlawful for the manufacturer of a new type of firearm
product to manufacture the product, unless the manufac-
turer has provided the Secretary with—
(1) notice of the intent of the manufacturer to
manufacture the product; and
(2) a description of the product.
(c) FAILURE OF MANUFACTURER OR DEALER TO
LABEL FIREARM PRODUCTS.—It shall be unlawful for a
manufacturer of or dealer in firearms to transfer, distrib-
ute, or export a firearm product unless the product is ac-
companied by a label that contains—
(1) the name and address of the manufacturer
of the product;
(2) the name and address of any importer of
the product;
(3) a specification of the regulations prescribed
under this Act that apply to the product; and
(4) the certificate required by subsection (a)(3)
with respect to the product.
(d) FAILURE TO MAINTAIN OR PERMIT INSPECTION
OF RECORDS.—It shall be unlawful for an importer of,
manufacturer of, or dealer in a firearm product to fail
to—
(1) maintain such records, and supply such in-
formation, as the Secretary may require in order to
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ascertain compliance with this Act and the regula-
tions and orders issued under this Act; and
(2) permit the Secretary to inspect and copy
such records at reasonable times.
(e) 
IMPORTATION
AND
EXPORTATION
OF
UNCERTIFIED FIREARM PRODUCTS.—It shall be unlawful
for any person to import into the United States or export
a firearm product that is not accompanied by the certifi-
cate required by subsection (a)(3).
(f) COMMERCE IN FIREARM PRODUCTS IN VIOLA-
TION OF ORDER ISSUED OR REGULATION PRESCRIBED
UNDER THIS ACT.—It shall be unlawful for any person
to manufacture, offer for sale, distribute in commerce, im-
port into the United States, or export a firearm product—
(1) that is not in conformity with the regula-
tions prescribed under this Act; or
(2) in violation of an order issued under this
Act.
(g) STOCKPILING.—It shall be unlawful for any per-
son to manufacture, purchase, or import a firearm prod-
uct, after the date a regulation is prescribed under this
Act with respect to the product and before the date the
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regulation takes effect, at a rate that is significantly great-
er than the rate at which the person manufactured, pur-
chased, or imported the product during a base period (pre-
scribed by the Secretary in regulations) ending before the
date the regulation is so prescribed.
SEC. 202. INAPPLICABILITY TO GOVERNMENTAL AUTHORI-
TIES.
Section 201 shall not apply to any department or
agency of the United States, of a State, or of a political
subdivision of a State, or to any official conduct of any
officer or employee of such a department or agency.
TITLE III—ENFORCEMENT
Subtitle A—Civil Enforcement
SEC. 301. CIVIL PENALTIES.
(a) AUTHORITY TO IMPOSE FINES.—
(1) IN GENERAL.—The Secretary shall impose
upon any person who violates section 201 a civil fine
in an amount that does not exceed the applicable
amount.
(2) SCOPE OF OFFENSE.—Each violation of sec-
tion 201 (other than of subsection (a)(3) or (d) of
such section) shall constitute a separate offense with
respect to each firearm product involved.
(b) APPLICABLE AMOUNT.—
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(1) FIRST
5-YEAR
PERIOD.—The applicable
amount for the 5-year period described in subsection
(f)(1) is $5,000.
(2) THEREAFTER.—The applicable amount for
any 5-year period described in subsection (f)(2) is
the dollar amount in effect under this section for the
5-year period, rounded in accordance with subsection
(e).
(c) DOLLAR AMOUNT IN EFFECT UNDER THIS SEC-
TION.—The dollar amount in effect under this section for
a 5-year period—
(1) $5,000; multiplied by
(2) the applicable inflation percentage.
(d) APPLICABLE INFLATION PERCENTAGE.—
(1) FIRST 5-YEAR PERIOD.—The applicable in-
flation percentage for 5-year period described in sub-
section (f)(1) is 1.00.
(2) THEREAFTER.—The applicable inflation
percentage for any 5-year period described in sub-
section (f)(2) is the percentage (if any) by which—
(A) the average of the Consumer Price
Index (as defined in section 1(f)(5) of the Inter-
nal Revenue Code of 1986) for the 5-year pe-
riod ending on June 30 of the 5th year of the
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immediately preceding 5-year period described
in subsection (f); exceeds
(B) the average of the Consumer Price
Index (as so defined) ending on June 30, 1997.
(e) ROUNDING RULES.—
If the dollar amount in effect
under this section for a 5-
year period is:
The dollar amount is rounded
to the nearest multiple of:
Over $1,000 but not over $10,000 ..........................................
$1,000.
Over $10,000 but not over $100,000 ......................................
$5,000.
Over $100,000 but not over $200,000 ....................................
$10,000.
Over $200,000 .........................................................................
$25,000.
(f) 5-YEAR PERIODS.—A 5-year period is described
in this subsection if the period is—
(1) the 5-year period that begins on January 1,
1998; or
(2) a 5-year period that begins at the end of a
5-year period described in this subsection.
(g) PUBLICATION
IN
FEDERAL
REGISTER.—Not
later than December 1, 1997, and every 5 years there-
after, the Secretary shall prescribe and publish in the Fed-
eral Register the schedule of maximum authorized pen-
alties that will apply for violations referred to in sub-
section (a) that occur during the 5-year period that begins
on the next January 1.
SEC. 302. INJUNCTIVE ENFORCEMENT AND SEIZURE.
(a) INJUNCTIVE ENFORCEMENT.—Upon request of
the Secretary, the Attorney General of the United States
may bring an action to restrain any violation of section
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201 in the United States district court for any district
in which the violation has occurred, or in which the de-
fendant is found or transacts business.
(b) CONDEMNATION.—
(1) IN GENERAL.—Upon request of the Sec-
retary, the Attorney General of the United States
may bring an action in rem for condemnation of a
qualified firearm product in the United States dis-
trict court for any district in which the Secretary
has found and seized for confiscation the product.
(2) QUALIFIED FIREARM PRODUCT DEFINED.—
As used in paragraph (1), the term ‘‘qualified fire-
arm product’’ means a firearm product—
(A) that is being transported or having
been transported remains unsold, is sold or of-
fered for sale, is imported, or is to be exported;
and
(B)(i) that is not in compliance with a reg-
ulation prescribed or an order issued under this
Act; or
(ii) with respect to which relief has been
granted under section 303.
SEC. 303. IMMINENTLY HAZARDOUS FIREARMS.
(a) IN GENERAL.—Notwithstanding the pendency of
any other proceeding in a court of the United States, the
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section, the court, in its discretion, may award to a pre-
vailing plaintiff a reasonable attorney’s fee as part of the
costs.
SEC. 306. EFFECT ON PRIVATE REMEDIES.
(a) IRRELEVANCY
OF
COMPLIANCE
WITH
THIS
ACT.—Compliance with this Act or any order issued or
regulation prescribed under this Act shall not relieve any
person from liability to any person under common law or
State statutory law.
(b) IRRELEVANCY OF FAILURE TO TAKE ACTION
UNDER THIS ACT.—The failure of the Secretary to take
any action authorized under this Act shall not be admissi-
ble in litigation relating to the product under common law
or State statutory law.
Subtitle B—Criminal Enforcement
SEC. 351. CRIMINAL PENALTIES.
Any person who has received from the Secretary a
notice that the person has violated a provision of this Act
or of a regulation prescribed under this Act with respect
to a firearm product and knowingly violates such provision
with respect to the product shall be fined under title 18,
United States Code, imprisoned not more than 2 years,
or both.
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TITLE IV—ADMINISTRATIVE
PROVISIONS
SEC. 401. FIREARMS VIOLENCE INFORMATION AND RE-
SEARCH.
(a) IN GENERAL.—The Secretary shall—
(1) maintain a Firearms Violence Information
Clearinghouse to collect, investigate, analyze, and
disseminate data and information relating to the
causes and prevention of death and injury associated
with firearms;
(2) conduct continuing studies and investiga-
tions of firearm-related deaths and injuries and the
resulting economic costs and losses;
(3) compile an annual report detailing each case
of criminal misuse of machineguns registered under
the National Firearms Act that is known to the Sec-
retary;
(4) collect and maintain current production and
sales figures for each person registered as a manu-
facturer under the Gun Control Act;
(5) conduct research on, studies of, and inves-
tigation into the safety of firearm products and im-
proving the safety of firearm products; and
(6) develop firearm safety testing methods and
testing devices.
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(b) AVAILABILITY OF INFORMATION.—On a regular
basis, but not less frequently than annually, the Secretary
shall make available to the public the results of the activi-
ties of the Secretary under paragraphs (1), (2), (3) and
(4) of subsection (a).
SEC. 402. ANNUAL REPORTS TO THE CONGRESS.
The Secretary shall prepare and submit to the Presi-
dent and the Congress at the beginning of each regular
session of the Congress, a comprehensive report on the
administration of this Act for the most recently completed
fiscal year. The report shall include—
(1) a thorough appraisal, including statistical
analyses and projections, of the incidence of injury
and death and effects on the population resulting
from firearm products, with a breakdown, as prac-
ticable, among the various types of such products as-
sociated with the injuries and deaths;
(2) a list of firearm safety regulations pre-
scribed that year;
(3) an evaluation of the degree of compliance
with firearm safety regulations, including a list of
enforcement actions, court decisions, and settlements
of alleged violations, by name and location of the vi-
olator or alleged violator, as the case may be;
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(4) a summary of the outstanding problems
hindering enforcement of this Act, in the order of
priority; and
(5) a log and summary of meetings between the
Secretary or employees of the Secretary and rep-
resentatives of industry, interested groups, or other
interested parties.
TITLE V—RELATIONSHIP TO
OTHER LAW
SEC. 501. SUBORDINATION TO ARMS EXPORT CONTROL
ACT.
In the event of any conflict between any provision of
this Act and any provision of the Arms Export Control
Act, the provision of the Arms Export Control Act shall
control.
SEC. 502. EFFECT ON STATE LAW.
This Act shall not be construed to preempt any provi-
sion of the law of any State or political subdivision thereof,
or prevent a State or political subdivision thereof from en-
acting any provision of law regulating or prohibiting con-
duct with respect to a firearm product, except to the ex-
tent that such provision of law is inconsistent with any
provision of this Act, and then only to the extent of the
inconsistency. A provision of State law is not inconsistent
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with this Act if the provision imposes a regulation or pro-
hibition of greater scope or a penalty of greater severity
than any prohibition or penalty imposed by this Act.
TITLE VI—DEFINITIONS
SEC. 601. DEFINITIONS.
(a) SPECIFIC TERMS.—As used in this Act:
(1) FIREARMS DEALER.—The term ‘‘firearms
dealer’’ means—
(A) any person engaged in the business (as
defined in section 921(a)(21)(C) of title 18,
United States Code) of dealing in firearms at
wholesale or retail;
(B) any person engaged in the business (as
defined in section 921(a)(21)(D) of title 18,
United States Code) of repairing firearms or of
making or fitting special barrels, stocks, or trig-
ger mechanisms to firearms; and
(C) any person who is a pawnbroker.
(2) FIREARM PART.—The term ‘‘firearm part’’
means—
(A) any part or component of a firearm as
originally manufactured;
(B) any good manufactured or sold—
(i) for replacement or improvement of
a firearm; or
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(ii) as any accessory or addition to the
firearm; and
(C) any good that is not a part or compo-
nent of a firearm and is manufactured, sold, de-
livered, offered, or intended for use exclusively
to safeguard individuals from injury by a fire-
arm.
(3) FIREARM
PRODUCT.—The term ‘‘firearm
product’’ means a firearm, firearm part, nonpowder
firearm, and ammunition.
(4) FIREARM SAFETY REGULATION.—The term
‘‘firearm safety regulation’’ means a regulation pre-
scribed under this Act.
(5) FIREARM
SAFETY
STANDARD.—The term
‘‘firearm safety standard’’ means a standard pro-
mulgated under this Act.
(6) MACHINEGUN.—The term ‘‘machinegun’’
means—
(A) any weapon which shoots, is designed
to shoot, or can be readily restored to shoot,
automatically more than 1 shot, without man-
ual reloading, by a single function of the trig-
ger;
(B) the frame or receiver of any such
weapon;
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(C) any part or combination of parts de-
signed and intended for use in converting a
weapon into a device described in subparagraph
(A) or (B), whether or not modification to the
frame or receiver of the weapon is necessary to
complete the conversion; and
(D) any combination of parts from which
a device described in subparagraph (A) or (B)
can be assembled if such parts are in the pos-
session or under the control of a person.
(8) NONPOWDER
FIREARM.—The term ‘‘non-
powder firearm’’ means a device specifically designed
to discharge BBs, pellets, darts, or similar projec-
tiles by the release of stored energy.
(9) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Treasury or the delegate of the
Secretary.
(b) OTHER TERMS.—Each other term used in this
Act shall have the meaning (if any) given such term in
section 921(a) of title 18, United States Code.
TITLE VII—EFFECTIVE DATE
SEC. 701. EFFECTIVE DATE.
This Act shall take effect on the date of the enact-
ment of this Act.
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