IB
Union Calendar No. 456
107TH CONGRESS
2D SESSION
H. R. 2037
[Report No. 107–727, Parts I and II]
To amend the Act establishing the Department of Commerce to protect
manufacturers and sellers in the firearms and ammunition industry from
restrictions on interstate or foreign commerce.
IN THE HOUSE OF REPRESENTATIVES
MAY 25, 2001
Mr. STEARNS (for himself, Mr. ADERHOLT, Mr. BACA, Mr. BACHUS, Mr.
BALLENGER, Mr. BARCIA, Mr. BARR of Georgia, Mr. BARTLETT of
Maryland, Mr. BARTON of Texas, Mr. BASS, Mr. BISHOP, Mr. BLUNT,
Mr. BOUCHER, Mr. BROWN of South Carolina, Mr. BRYANT, Mr. BURR
of North Carolina, Mr. BURTON of Indiana, Mr. BUYER, Mr. CALVERT,
Mr. CANNON, Mr. CANTOR, Mr. CARSON of Oklahoma, Mr. CHABOT, Mr.
CRAMER, Mr. CRANE, Mrs. CUBIN, Mr. CULBERSON, Mr. CUNNINGHAM,
Mrs. JO ANN DAVIS of Virginia, Mr. DELAY, Mr. DEMINT, Mr. DIN-
GELL, Mr. DOOLITTLE, Mr. FLAKE, Mr. LUCAS of Oklahoma, Mr. GIB-
BONS, Mr. GOODE, Mr. GOODLATTE, Mr. GRAHAM, Mr. GRAVES, Mr.
HALL of Texas, Mr. HANSEN, Ms. HART, Mr. HAYES, Mr. HEFLEY, Mr.
HERGER, Mr. HILLEARY, Mr. HOLDEN, Mr. HUNTER, Mr. ISSA, Mr.
ISTOOK, Mr. JENKINS, Mr. JOHN, Mr. JOHNSON of Illinois, Mr. KELLER,
Mr. KERNS, Mr. LARGENT, Mr. LUCAS of Kentucky, Mr. MANZULLO, Mr.
MATHESON, Mr. GARY G. MILLER of California, Mr. NEY, Mr. NOR-
WOOD, Mr. OBERSTAR, Mr. OTTER, Mr. PENCE, Mr. PETERSON of Penn-
sylvania, Mr. PICKERING, Mr. PITTS, Mr. RADANOVICH, Mr. RAHALL,
Mr. REHBERG, Mr. ROGERS of Michigan, Mr. ROSS, Mr. RYAN of Wis-
consin, Mr. RYUN of Kansas, Mr. SANDLIN, Mr. SCHAFFER, Mr.
SCHROCK, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. SHADEGG, Mr.
SHIMKUS, Mr. SHOWS, Mr. SHUSTER, Mr. SIMMONS, Mr. SIMPSON, Mr.
SKEEN, Mr. SMITH of Texas, Mr. SOUDER, Mr. STENHOLM, Mr. STRICK-
LAND, Mr. SUNUNU, Mr. TAYLOR of Mississippi, Mr. TERRY, Mr.
TIAHRT, Mr. TRAFICANT, Mr. WALDEN, Mr. JONES of North Carolina,
Mr. WHITFIELD, Mr. WICKER, and Mr. YOUNG of Alaska) introduced the
following bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on the Judiciary, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
OCTOBER 7, 2002
Reported from the Committee on Energy and Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
OCTOBER 7, 2002
Referral to the Committee on the Judiciary extended for a period ending not
later than October 8, 2002
OCTOBER 8, 2002
Additional sponsors: Mr. VITTER, Mr. KNOLLENBERG, Mr. DUNCAN, Mr.
ISAKSON, Mr. RILEY, Mr. LEWIS of Kentucky, Mr. PHELPS, Mr. POMBO,
Mr. GILLMOR, Mr. BOEHNER, Mr. STUMP, Mr. HAYWORTH, Mr. COBLE,
Mr. WATKINS, Mr. BRADY of Texas, Mr. GUTKNECHT, Mr. WELDON of
Florida, Mr. HASTINGS of Washington, Mr. AKIN, Mr. MCINNIS, Mr.
NETHERCUTT, Mr. PETERSON of Minnesota, Mr. LEWIS of California,
Mr. PUTNAM, Mr. MASCARA, Mr. FLETCHER, Mr. BERRY, Mr.
COSTELLO, Mr. HULSHOF, Mr. WAMP, Mr. MOLLOHAN, Mr. TAUZIN, Mr.
MCKEON, Mr. TANCREDO, Mrs. CAPITO, Mr. GANSKE, Mr. HOBSON, Mr.
COLLINS, Mr. MCHUGH, Mr. CAMP, Mr. UPTON, Mr. SKELTON, Mr.
OXLEY, Mrs. EMERSON, Mr. BAKER, Mr. CHAMBLISS, Mr. TOOMEY, Mr.
SCARBOROUGH, Mr. ARMEY, Mr. KINGSTON, Mr. MCCRERY, Mr.
ENGLISH, Mr. MORAN of Kansas, Mrs. MYRICK, Mr. WATTS of Okla-
homa, Mr. KENNEDY of Minnesota, Mr. EVERETT, Mr. FORBES, Mr.
GEKAS, Mr. TAYLOR of North Carolina, Mr. THOMAS, Mr. REYNOLDS,
Mr. HOEKSTRA, Mr. SAXTON, Mr. BOEHLERT, Mr. MCINTYRE, Mr. TOM
DAVIS of Virginia, Mr. OSBORNE, Mrs. BONO, Mr. THOMPSON of Cali-
fornia, Mr. GORDON, Mr. WOLF, Mr. THUNE, Mr. SWEENEY, Mr.
LATHAM, Mr. GALLEGLY, Mr. LAHOOD, Mrs. BIGGERT, Mr. LINDER,
Mr. PORTMAN, Mr. COX, Mr. BOYD, Mr. JEFF MILLER of Florida, Mr.
COMBEST, Mr. ROHRABACHER, Mr. PLATTS, Mrs. THURMAN, Mr. TURN-
ER, Mr. GREENWOOD, Mr. SAM JOHNSON of Texas, Mr. BOOZMAN, Mr.
ORTIZ, Mr. SHERWOOD, Mr. OSE, Mr. KANJORSKI, Mr. MICA, Mr.
BONILLA, Mr. WELDON of Pennsylvania, Mr. ROYCE, Mr. CLEMENT, Mr.
WILSON
of South Carolina, Mr. CRENSHAW, Mr. MURTHA, Mr.
LAMPSON, Mr. THORNBERRY, Mr. CALLAHAN, Mr. NUSSLE, Mr.
LOBIONDO, Mr. TANNER, Mr. GREEN of Texas, Mr. DREIER, Mr. HILL-
IARD, Mr. QUINN, Mr. HILL, Mr. LATOURETTE, Mr. BILIRAKIS, Mr.
SULLIVAN, Mr. EHLERS, Mr. ROGERS of Kentucky, Mr. GOSS, Mrs.
NORTHUP, Ms. GRANGER, Mr. WELLER, Mr. SMITH of Michigan, Mr.
FOLEY, Mr. DEAL of Georgia, Mr. GREEN of Wisconsin, Mr. BOSWELL,
Mr. TIBERI, Mr. LARSEN of Washington, and Ms. PRYCE of Ohio
Deleted sponsor: Mr. SENSENBRENNER (added May 25, 2001; deleted
August 2, 2001)
OCTOBER 8, 2002
Reported from the Committee on the Judiciary with amendments, committed
or an ammunition product, a licensed seller of a firearm,
a licensed seller of an ammunition product, or a trade asso-
ciation representing such manufacturers or sellers. The list
shall contain the name of the person, the chief executive offi-
cer of the person, and the address and location of the head-
quarters of the person. The Secretary shall maintain and
update the list and may publish the list in the Federal Reg-
ister.
‘‘(b) NOTIFICATION.—Each person that—
‘‘(1) is a licensed manufacturer of a firearm or
an ammunition product,
‘‘(2) is a licensed seller of a firearm,
‘‘(3) is a licensed seller of an ammunition prod-
uct, or
‘‘(4) is a trade association representing such
manufacturers or sellers,
may notify the Secretary of that person’s existence and pro-
vide to the Secretary the information described in sub-
section (a).
‘‘(c) FREEDOM FROM RESTRICTION.—Conduct that—
‘‘(1) is carried out by a licensed manufacturer of
a firearm or an ammunition product, involves such
firearm or ammunition product, and is described in
paragraph (5) of subsection (f),
‘‘(2) is carried out by a licensed seller of a fire-
arm, involves such firearm, and is described in para-
graph (7) of subsection (f),
‘‘(3) is carried out by a licensed seller of an am-
munition product, involves such ammunition product,
and is described in paragraph (8) of subsection (f), or
‘‘(4) is carried out by a trade association in the
course of organizing, advising, or representing its
members who are manufacturers of a firearm or an
ammunition product, sellers of a firearm, or sellers of
an ammunition product, with respect to conduct of
such manufacturers or sellers described in paragraph
(5), (7), or (8) of subsection (f), as the case may be,
and that is lawful under applicable Federal, State, or local
law, shall not be a basis for imposing a restriction on inter-
state or foreign commerce on a person on the list described
in subsection (a) as a result of harm caused by the criminal,
suicidal, negligent, or other unlawful misuse of any such
firearm or ammunition product by any other person.
‘‘(d) ABSENCE FROM LIST.—The absence from the list
maintained under this section of any person who is a man-
ufacturer of a firearm or an ammunition product, a seller
of a firearm, or a seller of an ammunition product shall
not be construed to create any cause of action or to deprive
such person of any lawful defense that may otherwise be
available to such person.
‘‘(e) LIMITATION OF USE OF LIST.—No officer, agency,
or instrumentality of the United States may use the list
established and maintained under this section for any pur-
pose other than the enforcement of the provisions of this sec-
tion.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) AMMUNITION PRODUCT.—The term ‘ammu-
nition product’ means ‘ammunition’ as defined in
section 921(a)(17) of title 18, United States Code, and
includes a component part of such ammunition prod-
uct that has been shipped or transported in interstate
or foreign commerce.
‘‘(2) ENGAGED
IN
THE
BUSINESS.—The term
‘engaged in the business’ has the meaning given that
term in section 921(a)(21) of title 18, United States
Code, and, as applied to a seller of an ammunition
product described in paragraph (8)(A)(ii), means a
person who devotes, time, attention, and labor to the
sale of ammunition products as a regular course of
trade or business with the principal objective of liveli-
hood and profit through the sale or distribution of the
ammunition products.
‘‘(3) FIREARM.—The term ‘firearm’ means ‘fire-
arm’ as defined in section 921(a)(3)(A) or (B) of title
18, United States Code, and includes—
‘‘(A) any ‘antique firearm’ as defined in
section 921(a)(16) of such title; and
‘‘(B) a component part of any firearm de-
scribed in this paragraph that has been shipped
or transported in interstate or foreign commerce.
‘‘(4) INTERSTATE OR FOREIGN COMMERCE.—The
term ‘interstate or foreign commerce’ has the meaning
given that term in section 921(a)(2) of title 18,
United States Code.
‘‘(5) 
MANUFACTURER; 
LICENSED
MANUFAC-
TURER.—
‘‘(A) MANUFACTURER.—The term ‘manufac-
turer of a firearm or an ammunition product’
means a ‘manufacturer’ as defined in section
921(a)(10) of title 18, United States Code, who
is engaged in the business of manufacturing a
firearm or an ammunition product in interstate
or foreign commerce.
‘‘(B) LICENSED MANUFACTURER.—The term
‘licensed manufacturer of a firearm or an am-
munition product’ means any manufacturer de-
scribed in subparagraph (A) who is licensed
under chapter 44 of title 18, United States Code,
to be engaged in the business as such manufac-
turer.
‘‘(6) RESTRICTION ON INTERSTATE OR FOREIGN
COMMERCE.—The term ‘restriction on interstate or
foreign commerce’—
‘‘(A) means—
‘‘(i) civil damages or equitable relief,
or
‘‘(ii) any other limitation or condition,
awarded or ordered by a Federal, State, or local
court, that restricts the ability of a person on the
list established under subsection (a) to freely en-
gage in interstate or foreign commerce with re-
spect to firearms or ammunition products, or of
a trade association on the list established under
subsection (a) to freely engage in lawful activi-
ties on behalf of its membership; and
‘‘(B) does not include any damages, equi-
table relief, or other limitation or condition aris-
ing from—
‘‘(i) breach of contract or warranty in
connection with the purchase of a firearm
or an ammunition product;
‘‘(ii) physical injuries or property
damage resulting directly from a defect in
design or manufacture of a firearm or an
ammunition product, when used as in-
tended; or
‘‘(iii) the supplying of a firearm or an
ammunition product by a seller of a fire-
arm or seller of an ammunition product for
use by another person when the seller knows
or should know that the person to whom the
product has been supplied is likely to use
the product, and in fact does use the prod-
uct, in a manner involving unreasonable
risk of physical injury to that person and
others.
‘‘(7) SELLER OF A FIREARM; LICENSED SELL-
ER.—
‘‘(A) SELLER.—The term ‘seller of a fire-
arm’ means—
‘‘(i) an importer as defined in section
921(a)(9) of title 18, United States Code,
with respect to firearms, or
‘‘(ii) a dealer as defined in section
921(a)(11) of title 18, United States Code,
who is engaged in the business as such importer
or dealer in interstate or foreign commerce.
‘‘(B) LICENSED
SELLER.—The term ‘li-
censed seller of a firearm’ means a seller of a
firearm who is licensed under chapter 44 of title
18, United States Code, to be engaged in the
business as an importer or dealer described in
subparagraph (A).
‘‘(8) SELLER
OF
AMMUNITION
PRODUCT; LI-
CENSED SELLER.—
‘‘(A) SELLER.—The term ‘seller of an am-
munition product’ means—
‘‘(i) an importer as defined in section
921(a)(9) of title 18, United States Code,
with respect to ammunition products, who
is engaged in the business as such importer
in interstate or foreign commerce; or
‘‘(ii) any other person who is engaged
in the business of selling ammunition prod-
ucts, including component parts of such
ammunition products, in interstate or for-
eign commerce at the wholesale or retail
level, consistent with Federal, State, and
local law.
‘‘(B) LICENSED
SELLER.—The term ‘li-
censed 
seller 
of 
an 
ammunition 
product’
means—
‘‘(i) an importer described in clause (i)
of subparagraph (A) who is licensed to be
engaged in the business as such an importer
under chapter 44 of title 18, United States
Code; and
‘‘(ii) any other person described in
clause (ii) of subparagraph (A) who has met
all applicable requirements under Federal,
State, or local law to be licensed to be en-
gaged in the business as a seller described in
that clause.
‘‘(9) STATE.—The term ‘State’ includes the Dis-
trict of Columbia, the Commonwealth of Puerto Rico,
and any territory of possession of the United States.
‘‘(10) TRADE ASSOCIATION.—The term ‘trade as-
sociation’ means any association or business organi-
zation (whether or not incorporated under the laws of
any State) that is not operated for profit, and 2 or
more members of which are manufacturers of a fire-
arm or an ammunition product, sellers of a firearm,
or sellers of an ammunition product.’’.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Protection
of Lawful Commerce in Arms Act’’.
SEC. 2. FINDINGS; PURPOSES.
(a) FINDINGS.—The Congress finds the fol-
lowing:
(1) Citizens have a right, under the
Second Amendment to the United States
Constitution, to keep and bear arms.
(2) Lawsuits have been commenced
against manufacturers, distributors, deal-
ers, and importers of nondefective fire-
arms, which seek money damages and
other relief for the harm caused by the
misuse of firearms by third parties, in-
cluding criminals.
(3) The manufacture, importation,
possession, sale, and use of firearms and
ammunition in the United States is heav-
ily regulated by Federal, State, and local
laws. Such Federal laws include the Gun
Control Act of 1968, the National Fire-
arms Act, and the Arms Export Control
Act.
(4) Businesses in the United States
that are engaged in interstate and for-
eign commerce through the lawful de-
sign, marketing, distribution, manufac-
ture, importation, or sale to the public of
firearms or ammunition that have been
shipped or transported in interstate or
foreign commerce are not, and should not
be, liable for the harm caused by those
who criminally or unlawfully misuse fire-
arm products or ammunition products.
(5) The possibility of imposing liabil-
ity on an entire industry for harm that is
the sole responsibility of others is an
abuse of the legal system, erodes public
confidence in our Nation’s laws, threat-
ens the diminution of a basic constitu-
tional right, invites the disassembly and
destabilization of other industries and
economic sectors lawfully competing in
America’s free enterprise system, and
constitutes an unreasonable burden on
interstate and foreign commerce.
(6) The liability actions commenced
or contemplated by municipalities and
cities are based on theories without foun-
dation in hundreds of years of the com-
mon law and American jurisprudence.
The possible sustaining of these actions
by a maverick judicial officer would ex-
pand civil liability in a manner never
contemplated by the Framers of the Con-
stitution. The Congress further finds that
such an expansion of liability would con-
stitute a deprivation of the rights, privi-
leges, and immunities guaranteed to a
citizen of the United States under the
Fourteenth Amendment to the United
States Constitution.
(b) PURPOSES.—The purposes of this Act
are as follows:
(1) To prohibit causes of action
against manufacturers, distributors, deal-
ers, and importers of firearms or ammu-
nition products for the harm caused by
the criminal or unlawful misuse of fire-
arm products or ammunition products by
others.
(2) To preserve a citizen’s access to a
supply of firearms and ammunition for
all lawful purposes, including hunting,
self-defense, collecting, and competitive
or recreational shooting.
(3) To guarantee a citizen’s rights,
privileges, and immunities, as applied to
the States, under the Fourteenth Amend-
ment to the United States Constitution,
pursuant to section five of that Amend-
ment.
(4) To prevent the use of such law-
suits to impose unreasonable burdens on
interstate and foreign commerce.
SEC. 3. PROHIBITION ON BRINGING OF QUALIFIED CIVIL
LIABILITY ACTIONS IN FEDERAL OR STATE
COURT.
(a) IN GENERAL.—A qualified civil liability
action may not be brought in any Federal or
State court.
(b) DISMISSAL
OF
PENDING
ACTIONS.—A
qualified civil liability action that is pending
on the date of the enactment of this Act shall
be dismissed immediately by the court in
which the action was brought.
SEC. 4. DEFINITIONS.
In this Act:
(4) QUALIFIED
PRODUCT.—The term
‘‘qualified product’’ means a firearm (as
defined in subparagraph (A) or (B) of sec-
tion 921(a)(3) of title 18, United States
Code, including any antique firearm (as
defined in section 921(a)(16) of such
title)), or ammunition (as defined in sec-
tion 921(a)(17) of such title), or a compo-
nent part of a firearm or ammunition,
that has been shipped or transported in
interstate or foreign commerce.
(5) QUALIFIED CIVIL LIABILITY ACTION.—
(A) IN GENERAL.—The term ‘‘quali-
fied civil liability action’’ means a
civil action brought by any person
against a manufacturer or seller of a
qualified product, or a trade associa-
tion, for damages resulting from the
criminal or unlawful misuse of a
qualified product by the person or a
third party, but shall not include—
(i) an action brought against a
transferor convicted under sec-
tion 924(h) of title 18, United
States Code, or a comparable or
identical State felony law, by a
party directly harmed by the con-
duct of which the transferee is so
convicted;
(ii) an action brought against
a seller for negligent entrustment
or negligence per se;
(iii) an action where a manu-
facturer or seller of a qualified
product knowingly and willfully
violated a State or Federal statute
applicable to the sale or mar-
keting of the product, and the vio-
lation was a proximate cause of
the harm for which relief is
sought;
(iv) an action for breach of
contract or warranty in connec-
tion with the purchase of the
product; or
(v) an action for physical inju-
ries or property damage resulting
directly from a defect in design or
manufacture of the product, when
used as intended.
(B) NEGLIGENT
ENTRUSTMENT.—In
subparagraph (A)(ii), the term ‘‘neg-
ligent entrustment’’ means the sup-
plying of a qualified product by a sell-
er for use by another person when
the seller knows or should know the
person to whom the product is sup-
plied is likely to use the product, and
in fact does use the product, in a
manner involving unreasonable risk
of physical injury to the person and
others.
(6) SELLER.—The term ‘‘seller’’ means,
with respect to a qualified product—
(A) an importer (as defined in sec-
tion 921(a)(9) of title 18, United States
Code) who is engaged in the business
as such an importer in interstate or
foreign commerce and who is li-
censed to engage in business as such
an importer under chapter 44 of title
18, United States Code;
(B) a dealer (as defined in section
921(a)(11) of title 18, United States
Code) who is engaged in the business
as such a dealer in interstate or for-
eign commerce and who is licensed to
engage in business as such a dealer
under chapter 44 of title 18, United
States Code; or
(C) a person engaged in the busi-
ness of selling ammunition (as de-
fined in section 921(a)(17) of title 18,
United States Code) in interstate or
foreign commerce at the wholesale or
retail level, consistent with Federal,
State, and local law.
(7) STATE.—The term ‘‘State’’ includes
each of the several States of the United
States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana
Islands, and any other territory or pos-
session of the United States, and any po-
litical subdivision of any such place.
(8) 
TRADE
ASSOCIATION.—The 
term
‘‘trade association’’ means any associa-
tion or business organization (whether or
not incorporated under Federal or State
law) that is not operated for profit, and 2
or more members of which are manufac-
turers or sellers of a qualified product.
Amend the title so as to read as follows: ‘‘A bill to
prohibit civil liability actions from being brought or con-
tinued against manufacturers, distributors, dealers, or
importers of firearms or ammunition for damages result-
ing from the misuse of their products by others.’’.
Union Calendar No. 456
107TH CONGRESS
2D SESSION
H. R. 2037
[Report No. 107–727, Parts I and II]
A BILL
To amend the Act establishing the Department of
Commerce to protect manufacturers and sellers
in the firearms and ammunition industry from
restrictions on interstate or foreign commerce.
OCTOBER 8, 2002
Reported from the Committee on the Judiciary with
amendments, committed to the Committee of the
Whole House on the State of the Union, and ordered
to be printed