Firearm Industry Crime and Trafficking Accountability Act

The firearm industry has engaged in dangerous business practices, flooding American communities with weapons of war like AR–15s and other semiautomatic weapons. Despite these practices, the firearm industry is not required to monitor its distribution to ensure that its products are not used for unlawful purposes.

A study conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) found that 5 percent of licensed dealers sell about 90 percent of guns used in crimes (also known as “crime guns”). Firearm manufacturers, through trace data provided by the ATF, often know exactly which dealers and distributors disproportionately sell these crime guns.

Despite these indicators of diversion, 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 pyramid.

Firearm manufacturers also sell dangerous firearms to distributors and retailers who, according to ATF data, can fail to comply with Federal firearms law. The trace analysis of 2,000 firearms dealers cited by the ATF found that half of the dealers sold firearms to customers without conducting the background checks required by Federal law. Firearms dealers often flouted Federal laws and regulations, sold weapons to convicted felons and domestic abusers, lied to investigators, and falsified records.

supply a firearm to a distributor or retailer of the firearm, knowing or having reasonable cause to believe that the distributor or retailer has failed to implement reasonable controls or engaged in distribution, sales, or other practices likely to result in a high risk of criminal diversion or misuse;

fail to investigate or inquire as to the distribution practices of such a distributor or retailer, knowing or having reasonable cause to believe that the distributor or retailer has failed to implement reasonable controls or engaged in distribution, sales, or other practices likely to result in a high risk of criminal diversion or misuse; or

supply a quantity of firearms to a State or distribution area, knowing or having reasonable cause to believe that the quantity exceeds the lawful demand for firearms in the State or distribution area.

report to the Director on any pattern, distribution, 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 distribution, sales, or other practices likely to result in a high risk of criminal diversion or misuse;

report to the Director annually, in such form and manner as the Director shall prescribe, all instances of criminal diversion or misuse of a product distributed or sold by the manufacturer or importer, as the case may be, of which the manufacturer or importer, as the case may be, is aware, and shall include in the report an itemization of the firearms involved by category; and

keep for a period of 5 years all trace records, relevant communications, and other relevant information pertaining to the monitoring database of the manufacturer or importer, as the case may be.

In general— Sections 3 through 5 shall not apply to a manufacturer who manufactures fewer than 3,000 firearms per year.

Waiver authority— The Director may waive the applicability of such sections to a manufacturer who manufactures not more than 6,000 firearms per year, on finding that the provision of such a waiver will not harm public safety, except that the Director may not provide such a waiver to a manufacturer who manufactures a semiautomatic firearm or any copy, duplicate, variant, or altered facsimile with the capability of a semiautomatic firearm.

ATF— The term ATF means the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Criminal diversion— The term criminal diversion means the unlawful sale or distribution of a firearm by, to, or through a firearm trafficker, straw purchaser, or person prohibited by law from possessing a firearm, and any transfer or possession of a firearm in violation of law.

Director— The term Director means the Director or the Acting Director of ATF.

Essential facts— The term essential facts means crime gun trace data, information on distributor or retailer compliance with ATF inspections, information on distributor or retailer compliance with State inspections, where applicable, information concerning distributor or retailer compliance with applicable background check requirements with respect to firearms sold by the manufacturer or importer, and such other information as the Director may deem useful in preventing criminal diversion or misuse of firearms.

Firearm— The term firearm has the meaning given the term in section 921(a)(3) of title 18, United States Code.

Importer— The term importer has the meaning given the term in section 921(a)(9) of title 18, United States Code.

Manufacturer— The term manufacturer has the meaning given the term in section 921(a)(10) of title 18, United States Code.

Monitoring database— The term monitoring database means a system capable of incorporating and analyzing—

Reasonable controls— The term reasonable controls means procedures or practices designed to prevent the unlawful sale or distribution of a firearm, including by preventing such a sale to a firearm trafficker, straw purchaser, person prohibited by Federal or State law from possessing a firearm, or person who the seller knows or has reasonable cause to believe will use a firearm unlawfully or for self-harm.

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 round, and which requires a separate pull of the trigger to fire each cartridge or shell.

Straw purchaser— The term straw purchaser means a person who, in connection with the acquisition or attempted acquisition of a firearm, makes any false or fictitious oral or written statement intended to conceal that the purchase is being made on behalf of a third party, 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 firearm. For purposes of the preceding sentence, 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 party.

Administrative remedies— With respect to each violation of section 3, 4, or 5, the Director shall, after notice and opportunity for hearing, subject the violator to a civil penalty, in an amount to be determined by the Director which shall be—

Request for records— On request of the Director, 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 Act.

Availability of trace data— The Director may make available to a manufacturer or importer of firearms any data requested by the manufacturer or importer, as the case may be, from the National Tracing Center or the Director of Industry Operations.

Provision of information to other Federal law enforcement agencies, or State or local governments— On request of a Federal law enforcement agency, the Director shall provide information obtained under this Act to the agency, and may provide the information to State and local law enforcement authorities.

Elimination of prohibition on processing of Freedom of Information Act requests about arson or explosives incidents or firearm traces— Section 644 of division J of the Consolidated Appropriations Resolution, 2003 (5 U.S.C. 552 note; Public Law 108–7; 117 Stat. 473) is repealed.

Repeal of limitations on imposition of requirement that firearms dealers conduct physical check of firearms inventory— The 5th proviso under the heading “Bureau of Alcohol, Tobacco, Firearms and Explosives—Salaries and Expenses” in title II of division B of the Consolidated and Further Continuing Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113–6; 127 Stat. 248) is amended by striking “and any fiscal year thereafter”.

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 Alcohol, Tobacco, Firearms and Explosives—Salaries and Expenses” in title II of division B of the Consolidated and Further Continuing Appropriations Act, 2012 (18 U.S.C. 923 note; Public Law 112–55; 125 Stat. 609) is amended by striking the 1st proviso.