CS/HB 114/a FIREARM INDUSTRY ACCOUNTABILITY ACT

Rep Christine Chandler

Actions: HPREF [2] HCPAC/HJC-HCPAC [3] DNP-CS/DP-HJC [4] DP/a-T

Scheduled: Not Scheduled

 House Bill 114 (HB 114) enacts the Firearm Industry Accountability Act, prohibits false advertising, unconscionable, deceptive or unfair trade practices and actions that impact public health, safety or welfare, requires reasonable controls and procedures, prescribes civil penalties and provides private remedies.  

 House Bill 114 (HB 114) enacts the Firearm Industry Accountability Act (Act) that allows gun manufacturers to be held civilly liable for certain deceptive trade practices and other actions.   Under the Act, the following is unlawful for a firearm industry member: (1) falsely advertising a firearm product and (2) using unconscionable trade practices or unfair or deceptive trade practices.  The bill also forbids a firearm industry member from creating, maintaining or contributing to anything affecting any number of citizens that could negatively impact public health, safety or welfare through the sale, manufacturing, making, importing, advertising or marketing of a firearm product. Each violation of false advertising is subject to a $1,000 civil penalty, and each violation of a practice declared unlawful under the Act is subject to a $5,000 civil penalty.

A firearm industry member is required to establish controls regarding firearm products including procedures to prevent loss or theft, ensure compliance with laws, and prevent unlawful or fraudulent sales to a person who conceals the fact that the purchase is being made on behalf of a third party or to a person at risk of using a firearm product to harm themself or another person. 

The attorney general may bring a civil action against a firearm industry member for actions that are violations of the Act. Likewise, a district attorney may bring a civil action against a firearm industry member for actions that are violations of the Act that affect the district. Both the attorney general and district attorney are allowed to seek a temporary or permanent injunction without posting bond, and are allowed to seek restitution.

The bill also provides for two types of private civil remedies. First, a person likely to be harmed by a violation of the Act may request equitable relief and proof of damage or intent to damage, deceive or take unfair advantage of a person is not required.  Two, a person who is actually harmed as a result of a violation of the Act may recover punitive, equitable or compensatory damages.  The complaining party is not required to demonstrate intent to cause any harm or damage unless otherwise required by the Act. 

 

 On January 26, 2024, the House Judiciary Committee amended HCPACcs/HB 114 by amending the definition of “firearm industry member”.  It removed from this definition a person who advertises or markets a firearm.   

 The House Consumer and Public Affairs Committee Substitute for HB 114 (HCPACcs/HB 114) enacts the Firearm Industry Accountability Act (Act). It requires reasonable controls and procedures, provides for a public nuisance when firearm industry members fail to exercise reasonable controls and procedures, provides private remedies and a civil penalty.

First, HCPACcs/HB 114 uses the same definitions for “firearm”, “firearm industry member”, and “firearm product” as found in the original bill.  

As in the original bill, HCPACcs/HB 114 requires a firearm industry member to establish controls regarding firearm products including procedures to prevent loss or theft, ensure compliance with laws, and prevent unlawful or fraudulent sales to a person who conceals the fact that the purchase is being made on behalf of a third party or to a person at risk of using a firearm product to harm themself or another person.  However, unlike the original bill, HCPACcs/HB 114 does not require that a firearm industry member ensure that a firearm industry member does not engage in an act in violation of laws relating to firearm products. 

HCPACcs/HB 114 provides that it is a public nuisance for a firearm industry member to fail to exercise reasonable controls and procedures relating to the sale, manufacturing, making, importing, distribution, use, advertising and marketing of a firearm. The attorney general or a district attorney may bring a civil action to abate such a public nuisance and a civil penalty up to $5,000 may be imposed. A private citizen may also bring a civil action to abate a public nuisance and to recover actual or punitive damages against a firearm industry member. Upon written demand, documents relating to controls and procedures of a firearm industry member must be provided for inspection by the attorney general or a district attorney.