[Congressional Record Volume 145, Number 36 (Monday, March 8, 1999)]
[Senate]
[Pages S2412-S2413]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE (for Mr. Lautenberg (for himself, Mr. Durbin, Mr. 
        Schumer, and Mr. Reed)):
  S. 560. A bill to reform the manner in which firearms are 
manufactured and distributed by providing an incentive to State and 
local governments to bring claims for the rising costs of gun violence 
in their communities; to the Committee on the Judiciary.


              THE GUN INDUSTRY ACCOUNTABILITY ACT OF 1999

  Mr. LAUTENBERG. Mr. President, I rise to introduce the Gun Industry 
Accountability Act of 1999 along with my colleagues, Senators Durbin, 
Schumer, and Reed of Rhode Island. This legislation is aimed at one 
purpose: to force the gun industry to market and manufacture their 
products in a safer and more responsible manner.
  Mr. President, on Thursday, March 4th I was joined at the 
announcement of this bill by Mayor Bill Campbell of Atlanta and Mayor 
Alex Penelas of Miami-Dade County. They represent two of the now five 
jurisdictions that have filed claims against the gun industry on behalf 
of the taxpayers of their communities. They seek reimbursement for the 
massive costs of gun violence within their borders and ultimately, 
major changes in the way the gun industry sells its lethal products.
  Mr. President, the gun industry has long placed profits above the 
safety of society. The industry ignores numerous, patented safety 
devices for guns--even things as simple as an indicator of whether a 
gun is loaded. The distributors of firearms also intentionally flood 
certain markets with guns, knowing that the excess weapons will make 
their way into a nearby illegal market.
  The lawsuits by these courageous mayors will likely prove to be the 
most effective mechanism to get the Industry to alter their deadly 
practices. The reason is simple: it will bring the gun merchants into 
line by striking where they are most sensitive--the bottom line.
  To aid this effort, the Gun Industry Accountability Act will 
strengthen the hand of the cities in court against the formidable 
firepower of the gun industry and its team of high-priced lawyers. It 
will help these mayors in their quest to get the industry to lay down 
its weapons, come to the table and finally agree to behave as 
responsible corporate citizens.
  Mr. President, under current law, these cities filing claims against 
the gun industry are only able to recover the costs that their city or 
county has paid out due to gun violence. The Gun Industry 
Accountability Act will strengthen the mayors' hands by allowing them 
to recover both the city's costs for gun victims in their area as well 
as the Federal costs associated with these same victims. If a city 
eventually recovers Federal costs, either through a court judgment or 
settlement, then the city will be permitted to keep two thirds of the 
recovery and return the remaining one third to the Federal Government.
  By increasing the likely reward for bringing a lawsuit against 
firearms manufacturers, this legislation will serve as an incentive for 
more cities, counties and States to join the fight to hold the gun 
industry accountable. When our legislation passes, it will force the 
industry to stare down the double barrel of local and federal liability 
in these suits.
  Mr. President, the potential federal liability is substantial. The 
National Center for Injury Prevention and Control tells us that 80 
percent of the economic costs of treating firearms injuries are paid 
for by taxpayers.
  Federal taxpayers pick up the tab for disability payments through 
SSI, Veterans Administration, Unemployment, Medicare and other costs of 
treating victims of gun violence.
  Mr. President, despite these enormous costs, the gun industry and its 
friends in the National Rifle Association will go to any length to 
avoid accountability. The NRA and its corporate members are seeking 
state and federal legislation to take away the rights of mayors to 
safeguard their citizens against unsafe products and irresponsible 
marketing practices.
  Unfortunately, the NRA's drive against the legal rights of local 
communities has already succeeded in at least one state. In Georgia, 
the state legislature has already passed a bill at the NRA's request to 
retroactively block the City of Atlanta's suit. Mayor Campbell has 
already asked the court system to throw out the legislature's 
unconstitutional action.
  The NRA's extremism has reached new heights in Florida. In that state 
legislature, a bill has been introduced that would not only block 
Miami-Dade's lawsuit, but also declare Mayor Penelas a felon! In the 
NRA's world, a public official should be imprisoned for acting to 
protect the safety of his or her constituents.
  Mr. President, here in Congress there is already talk of Federal 
legislation to block cities, counties and States from asserting their 
rights in court. If such a bill is introduced it will prove that the 
era of Big Government is certainly not over.
  Mr. President, I pledge that I will do all I can to make sure that 
bill will never pass the Senate. Senators Durbin, Schumer, Reed and I 
will work tirelessly against such an unconscionable proposal.
  Congress should be helping these local communities make their streets 
safer--not block them from accomplishing that goal.
  To that end, I urge my colleagues to join us in cosponsoring the Gun 
Industry Accountability Act.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 560

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     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

[[Page S2413]]

     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 addition 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.
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