To provide a complete substitute.

SA 1642. Mr. REED submitted an amendment intended to be proposed by
him to the bill S. 397, to prohibit civil liability actions from being
brought or continued against manufacturers, distributors, dealers, or
importers of firearms or ammunition for damages, injunctive or other
relief resulting from the misuse of their products by others; which was
ordered to lie on the table; as follows:

Strike all after the enacting clause and insert the
following:

SECTION 1. LIMITATION ON SUITS AGAINST A FIREARMS OR
AMMUNITION MANUFACTURER, TRADE ASSOCIATION OR
SELLER.

(a) Definitions.--As used in this Act, the following
definitions apply:
(1) Ammunition.--The term ``ammunition'' has the meaning
given that term by section 921(a)(17)(A) of title 18, United
States Code.
(2) Firearm.--The term ``firearm'' has the meaning given
that term by subparagraph (A) or (B) of section 921(a)(3) of
title 18, United States Code, including any antique firearm
(as defined in section 921(a)(16) of such title).
(3) Governmental unit.--The term ``governmental unit''
means--
(A) a political subdivision of a State, including a
municipality or county; and
(B) any other agency of government whose authority is
derived from the laws or constitution of a State.
(4) Manufacturer.--The term ``manufacturer'' means a person
who is engaged in the business of manufacturing a firearm or
ammunition in interstate or foreign commerce and who is
licensed to engage in business as such a manufacturer under
chapter 44 of title 18, United States Code.
(5) Seller.--The term ``seller'' means, with respect to a
firearm or ammunition--
(A) an importer (as defined in section 921(a)(9) of title
18, United States Code) who is engaged in the business as
such an importer in interstate or foreign commerce and who is
licensed to engage in business as such an importer under
chapter 44 of title 18, United States Code;
(B) a dealer (as defined in section 921(a)(11) of title 18,
United States Code) who is engaged in the business as such a
dealer in interstate or foreign commerce and who is licensed
to engage in business as such a dealer under chapter 44 of
title 18, United States Code; or
(C) a person engaged in the business of selling ammunition
in interstate or foreign commerce at the wholesale or retail
level.
(6) State.--The term ``State'' means each of the several
States of the United States.
(7) Trade association.--The term ``trade association''
means any corporation, unincorporated association,
federation, business league, professional or business
organization--
(A) not organized or operated for profit and no part of the
net earnings of which inures to the benefit of any private
shareholder or individual;
(B) that is an organization described in section 501(c)(6)
of the Internal Revenue Code of 1986 and exempt from tax
under section 501(a) of such Code; and
(C) 2 or more members of which are manufacturers or sellers
of a firearm or ammunition.
(b) Prohibition.--Except as provided by subsection (c), a
governmental unit may not bring suit against a firearms or
ammunition manufacturer, trade association, or seller for
recovery of damages resulting from, or injunctive relief or
abatement of a nuisance relating to, the lawful design,
manufacture, marketing, or sale of firearms or ammunition to
the public.
(c) Exceptions.--
(1) State approval.--A governmental unit, on behalf of a
State or any other governmental unit, may bring a suit
described by subsection (b) if the suit is approved in
advance by the legislature of the State in which the
governmental unit is located by adoption of a concurrent
resolution or by enactment of a statute. This subsection
shall not be construed to create a cause of action.
(2) Excluded types of actions.--Nothing in this Act shall
prohibit a governmental unit from bringing an action against
a firearms manufacturer, trade association, or seller for
recovery of damages for--
(A) breach of contract or warranty as to firearms or
ammunition purchased by a governmental unit;
(B) damage or harm to property owned or leased by the
governmental unit caused by a defective firearm or
ammunition; or
(C) injunctive relief to enforce a valid ordinance,
statute, or rule.
(d) Actions by States.--Nothing in this Act shall prohibit
the attorney general or other chief law enforcement officer
of a State from bringing a suit described by subsection (b)
on behalf of a State or a governmental unit. This subsection
shall not be construed to create a cause of action.
______