Chairwoman Maloney Introduces Legislation to Hold Firearm Industry Accountable for Dangerous Business Practices

Press Release

Today, Rep. Carolyn B. Maloney, Chairwoman of the Committee on Oversight and Reform, introduced two pieces of legislation informed by the Committee's investigation exposing the role of the firearm industry in fueling America's gun violence epidemic. These bills will hold firearm manufacturers accountable for selling weapons of war to civilians and ensure that the industry takes responsibility for preventing the use of their products in crimes.

The Firearm Industry Fairness Act would impose a 20% tax on the total revenue of manufacturers who choose to produce the assault weapons and high-capacity magazines like those used by the mass shooters in Buffalo, Uvalde, and Highland Park. Funds would be used to prevent gun violence and support victims.

The Firearm Industry Crime and Trafficking Accountability Act would require that every firearm manufacturer create a monitoring system to track crimes committed with guns they have sold, and mandate that those manufacturers cease distributing weapons to a retailer when they have reason to believe that the guns sold by that retailer are being trafficked or used for criminal purposes.

Chairwoman Maloney released the following statement on today's legislation:

"This summer, my Committee heard from those touched by gun violence in this country, including parents who lost their child, a doctor who lost his patients, and the mother of a young boy who lost his father. These Americans, along with so many others from Uvalde, Buffalo, and Highland Park, urged Congress to take action to stop gun violence. Today, I am introducing legislation that takes on the gun industry's dangerous business practices fueling our nation's gun violence crisis.

"Today's legislation responds directly to findings from my Committee's investigation showing that the top assault weapon manufacturers have collected more than $1 billion in revenue selling assault weapons to civilians, while refusing to track the crimes carried out with these weapons. These bills would impose a 20% revenue tax on these manufacturers so that the family hunting rifle is not taxed at the same rate as an assault weapon, and would ensure that the firearm industry, like others industries in America, takes responsibility for the safety and misuse of its products.

"House Democrats have already passed a ban on assault weapons, but as we wait for the Senate to act, we must pursue other crucial reforms. As Chair of the Committee on Oversight and Reform, I am committed to continuing my investigation and pursuing new legislation to curb the destructive practices of the firearm industry and save lives."

The Firearm Industry Fairness Act

Taxes manufacturers and importers of assault weapons and high-capacity magazines at an annual rate of 20% of total revenue realized from all sales.

Uses revenue raised to support programs to reduce violence and help gun violence victims.

The Firearm Industry Crime and Trafficking Accountability Act

Mandates that firearm manufacturers set up a monitoring system to prevent the criminal diversion of their products, using ATF gun trace data and other available data;

Prohibits firearm manufacturers from supplying a firearm retailer if the manufacturer knows that its provision of firearms to that retailer will lead to a high risk of criminal activity or diversion;

Requires that firearm manufacturers report to the ATF bad-actor firearm distributors that are engaging in practices that allow or promote gun trafficking, straw purchasing, background checks violations, or other illegal practices; and

Empowers the ATF to impose meaningful financial penalties on firearm manufacturers that continue to supply bad-actor distributors, and to ask a court to suspend manufacturers' licenses to operate in the most egregious cases.

Source