EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . [Brackets] indicate matter deleted from existing law. *sb0873* SENATE BILL 873 E4 2lr1668 CF 2lr3026 By: Senators Waldstreicher and Smith Introduced and read first time: February 7, 2022 Assigned to: Judicial Proceedings A BILL ENTITLED AN ACT concerning 1 Public Safety – Firearm Industry Members – Public Nuisance 2 FOR the purpose of prohibiting a certain firearm industry member from knowingly or 3 recklessly engaging in certain conduct in the State that endangers the safety or 4 health of the public; requiring a firearm industry member to establish and use 5 certain reasonable controls and procedures to prevent a certain product from being 6 possessed, used, marketed, or sold unlawfully in the State; establishing that a 7 violation of this Act is a public nuisance; authorizing the Attorney General to 8 investigate a violation or possible violation of this Act; authorizing certain parties to 9 bring a certain action against a firearm industry member under certain 10 circumstances; and generally relating to firearm industry members. 11 BY adding to 12 Article – Public Safety 13 Section 5–701 through 5–704 to be under the new subtitle “Subtitle 7. Firearm 14 Industry Members” 15 Annotated Code of Maryland 16 (2018 Replacement Volume and 2021 Supplement) 17 Preamble 18 WHEREAS, Since 2005, a federal law called the Protection of Lawful Commerce in 19 Arms Act (PLCAA) has shielded firearm manufacturers and dealers from being held liable 20 when crimes have been committed with their products; and 21 WHEREAS, PLCAA blocks litigation that could incentivize firearm manufacturers 22 to design their products more safely and compel firearm manufacturers to stop selling to 23 dealers who fuel the criminal market, have poor safety practices or training, or are not 24 willing to use basic security measures; and 25 2 SENATE BILL 873 WHEREAS, Firearm manufacturers received nearly two million pieces of data about 1 firearms recovered at crime scenes or in criminal investigations between 2010 and 2019; 2 however, with all of this information there is no incentive for the firearm manufacturers to 3 stop supplying dealers who cater to the criminal market because of PLCAA; and 4 WHEREAS, PLCAA shields firearm dealers who have taken few steps to secure their 5 premises when their guns are stolen and then used in a crime; and 6 WHEREAS, Since PLCAA was enacted, between 2006 and 2019, 484,000 Americans 7 have been killed with firearms and hundreds of thousands injured due to the illegal or 8 unreasonable sale, manufacture, distribution, importing, or marketing of firearms and the 9 firearm industry’s failure to implement reasonable safety measures; and 10 WHEREAS, Not only does the illegal use of firearms constitute a public nuisance, 11 but the effects of such a nuisance also contribute to the public health crisis of firearm 12 violence in Maryland; and 13 WHEREAS, The firearm industry should be held liable and accountable for the 14 public nuisance caused by the firearm violence; now, therefore, 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Public Safety 18 SUBTITLE 7. FIREARM INDUSTRY MEMBERS. 19 5–701. 20 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 21 INDICATED. 22 (B) (1) “DECEPTIVE ACT OR PRAC TICE” MEANS A MATERIAL 23 REPRESENTATION , OMISSION, ACT, OR PRACTICE THAT MISLEADS OR IS LIKEL Y TO 24 MISLEAD A REASONABLE CONSUMER UNDER THE TOTALITY OF THE 25 CIRCUMSTANCES . 26 (2) “DECEPTIVE ACT OR PRAC TICE” INCLUDES FALSE ADVER TISING. 27 (C) “FALSE ADVERTISING ” MEANS USING ANY ADVERTISEMENT , INCLUDING 28 A LABEL, THAT IS MISLEADING IN A M ATERIAL RESPECT . 29 (D) “FIREARM INDUSTRY MEMB ER” MEANS A PERSON ENGAG ED IN THE 30 SALE, MANUFACTURING , DISTRIBUTION, IMPORTING, OR MARKETING OF A 31 QUALIFIED PRODUCT . 32 SENATE BILL 873 3 (E) “QUALIFIED PRODUCT ” MEANS: 1 (1) A FIREARM, AS DEFINED IN 18 U.S.C. § 921(A)(3)(A) AND (B); 2 (2) AN ANTIQUE FIREARM , AS DEFINED IN 18 U.S.C. § 921(A)(16); 3 (3) AMMUNITION , AS DEFINED IN 18 U.S.C. § 921(A)(17)(A); OR 4 (4) A COMPONENT PART OF A FIREARM OR AMMUNIT ION. 5 (F) “REASONABLE CONTROLS A ND PROCEDURES ” MEANS POLICIES THAT 6 INCLUDE SCREENING AND SECURITY MEASURES TO: 7 (1) PREVENT THE THEFT OF A QUALIFIED PRODU CT BY OR SALE OF A 8 QUALIFIED PRODUCT TO: 9 (I) A STRAW PURCHASER ; 10 (II) A TRAFFICKER; 11 (III) A PERSON PROHIBITED FR OM POSSESSING A FIREARM 12 UNDER STATE OR FEDERAL LAW ; OR 13 (IV) A PERSON AT RISK OF INJURING THE PERSON OR OTHERS; 14 OR 15 (2) PREVENT DECEPTIVE ACTS OR PRACTICES. 16 5–702. 17 (A) A FIREARM INDUSTRY MEMBER MAY NOT KNOWINGLY OR RECKLESSLY 18 ENGAGE IN CONDUCT THAT : 19 (1) IS UNLAWFUL; OR 20 (2) UNDER THE TOTALITY OF THE CIRCUMSTANCES : 21 (I) IS UNREASONABLE ; AND 22 (II) CREATES, MAINTAINS, OR CONTRIBUTE S TO A CONDITION IN 23 THE STATE THAT ENDANGERS THE HEALTH AND SAFETY OF THE PUBLIC THROUG H 24 4 SENATE BILL 873 THE SALE, MANUFACTURING , IMPORTING, OR MARKETING OF A QU ALIFIED 1 PRODUCT. 2 (B) A FIREARM INDUSTRY MEMBER THAT MANUFACTURE S, MARKETS, 3 IMPORTS, OR OFFERS FOR WHOLESALE OR RET AIL SALE A QUALIFIED PRODUCT IN 4 THE STATE SHALL ESTABLISH AND USE REASONABLE CONTROL S AND PROCEDURES 5 TO PREVENT A QUALIFIED PRODUCT FR OM BEING POSSESSED , USED, MARKETED, OR 6 SOLD UNLAWFULLY IN T HE STATE. 7 5–703. 8 (A) A VIOLATION OF § 5–702 OF THIS SUBTITLE THA T RESULTS IN HARM TO 9 THE PUBLIC IS A PUBLIC NUISANCE . 10 (B) THE CONDUCT OF A FIREARM INDUSTR Y MEMBER UNDER § 11 5–702 OF THIS SUBTITLE SHALL CONSTITUTE A P ROXIMATE CAUSE OF TH E PUBLIC 12 NUISANCE IF THE ENDANGERMENT OF THE HEALTH AND SA FETY OF THE PUBLIC 13 WAS A REASONABL Y FORESEEABLE EFFECT O F THE CONDUCT , NOTWITHSTANDING 14 ANY INTERVENING ACTIONS , INCLUDING CRIMINAL A CTIONS BY THIRD PARTIES. 15 (C) INTENT TO CAUSE HARM TO THE PUBLIC BY A FIREARM INDUSTR Y 16 MEMBER IS NOT AN ELE MENT OF A VIOLATION OF THIS SUBTITLE. 17 5–704. 18 (A) IF THE ATTORNEY GENERAL SUSPECTS THAT A FIREARM INDUSTRY 19 MEMBER HAS VIOLATED OR WILL IMMINENTLY VIOLATE § 5–702 OF THIS SUBTITLE, 20 OR IF THE ATTORNEY GENERAL BELIEVES IT I S IN THE PUBLIC INTE REST THAT AN 21 INVESTIGATION SHOULD BE MADE TO ASCERTAIN WHETHER A FIREARM IN DUSTRY 22 MEMBER HAS VIOLATED OR WILL IMMINENTLY VIOLATE § 5–702 OF THIS SUBTITLE, 23 THE ATTORNEY GENERAL MAY: 24 (1) REQUIRE THE FIREARM INDUSTRY MEMBER TO F ILE A WRITTEN 25 STATEMENT OR REPORT UNDER OATH CONCERNING THE FACTS AND 26 CIRCUMSTANCES OF THE VIOLATION OR POS SIBLE VIOLATION AS THE ATTORNEY 27 GENERAL CONSIDERS NECESSARY; 28 (2) EXAMINE UNDER OATH THE FIREARM INDUSTRY MEMBER 29 CONCERNING THE VIOLATION OR POSSIBL E VIOLATION; 30 (3) EXAMINE ANY RECORD , OBJECT, BOOK, DOCUMENT , ACCOUNT, OR 31 PAPER RELATING TO THE VIOL ATION OR POSSIBLE VI OLATION AS THE ATTORNEY 32 GENERAL CONSIDERS NECESSARY; AND 33 SENATE BILL 873 5 (4) IN ACCORDANCE WITH A N ORDER OF THE COURT OF APPEALS, 1 IMPOUND AND RETAIN I N THE ATTORNEY GENERAL’S POSSESSION ANY REC ORD, 2 BOOK, DOCUMENT , ACCOUNT, OBJECT, OR PAPER THAT IS PRO DUCED UNDER THIS 3 SUBSECTION UNTIL THE COMPLETION OF ALL PROCEEDINGS I N CONNECTION WITH 4 THE IMPOUNDED ITEMS . 5 (B) (1) IF THE ATTORNEY GENERAL DETERMINES THAT THERE HAS BEEN 6 A VIOLATION UNDER THIS SUBTITLE, THE FOLLOWING PARTIE S MAY BRING AN 7 ACTION AGAINST THE FIREARM INDUSTRY MEMBER FOR INJUNCTIVE RELIE F OR TO 8 RECOVER FOR DAMAGES , OR BOTH, IN THE COURT OF APPEALS OR IN A FEDER AL 9 COURT SITTING IN THE STATE: 10 (I) THE ATTORNEY GENERAL ON BEHALF OF THE STATE; 11 (II) A CITY CORPORATION C OUNSEL ON BEHALF OF THE 12 LOCALITY; OR 13 (III) A PERSON THAT SUFFERED DAMAGE AS A RESULT OF THE 14 VIOLATION. 15 (2) THE COURT MAY AWARD COMP ENSATORY AND PUNITIV E 16 DAMAGES TO A PREVAIL ING PLAINTIFF UNDER THIS SUBSECTION . 17 (3) THE PREVAILING PARTY IN ANY SUCH PROCEEDI NG IS ENTITLED 18 TO AN AWARD FOR COUR T COSTS, REASONABLE ATTORNEY ’S FEES, AND ANY OTHER 19 RELIEF THE COURT CON SIDERS PROPER . 20 SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 21 the application thereof to any person or circumstance is held invalid for any reason in a 22 court of competent jurisdiction, the invalidity does not affect other provisions or any other 23 application of this Act that can be given effect without the invalid provision or application, 24 and for this purpose the provisions of this Act are declared severable. 25 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 26 1, 2022. 27