mr. speaker , i yield myself such time as i may consume . 
mr. speaker , i rise in support of s. 397 , the protection of lawful commerce in arms act . 
this legislation passed the senate by more than a two-thirds vote this summer and contains the same legal reform provisions of h.r. 800 sponsored by the gentleman from florida ( mr. stearns ) xz4003880 . 
the committee on the judiciary considered and favorably reported h.r. 800 in may of this year . 
just like h.r. 800 and similar legislation that passed the house by more than a two-thirds majority during the last congress , s. 397 will stop frivolous and abusive lawsuits against manufacturers and sellers of firearms or ammunition by prohibiting lawsuits resulting from the criminal and unlawful misuse of their products from being filed in federal and state courts . 
it is important to stress at the outset what this legislation does not do . 
first , the legislation does not preclude lawsuits against a person who transfers a firearm or ammunition knowing it will be used to commit a crime of violence or drug-trafficking crime . 
second , it does not prevent lawsuits against a seller for negligent entrustment or negligence per se . 
third , the bill includes several additional exceptions , including an exception for actions in which a manufacturer or seller of a qualified product knowingly violates any state or federal statute applicable to sales or marketing when such violation was the proximate cause of the harm for which relief is sought . 
finally , the bill contains additional exceptions for breach of contract or warranty in connection with the purchase of a firearm or ammunition , and an exception for actions for damages resulting directly from a defect in design or manufacture of a firearm or ammunition . 
recent trends in abusive litigation have inspired lawsuits against the firearms industry on the theory of liability that would hold it financially responsible for the actions of those who use their products in a criminal or unlawful manner . 
such lawsuits threaten to rip tort law from its moorings in personal responsibility and may force firearms manufacturers into bankruptcy . 
while some of these lawsuits have been dismissed and some states have acted to address them , the fact remains that these lawsuits continue to be aggressively pursued . 
the intended consequences of these frivolous lawsuits could not be more clear : the financial ruin of the firearms industry . 
as one of the personal injury lawyers suing american firearms companies told the washington post , `` the legal fees alone are enough to bankrupt the industry. '' lawsuits seeking to hold the firearms industry responsible for the criminal and unlawful use of its products are brazen attempts to accomplish through litigation what has not been achieved by legislation and the democratic process . 
various courts have correctly described such suits as `` improper attempts to have the court substitute its judgment for that of the legislature. '' as explained by another federal judge , `` the plaintiff 's attorneys simply want to eliminate handguns. '' personal injury lawyers are seeking to obtain through the courts stringent limits on the sale and distribution of firearms beyond the court 's jurisdictional boundaries . 
a new york appeals court stated recently that `` courts are the least suited , least equipped , and thus the least appropriate branch of government to regulate and micro-manage the manufacturing , marketing , distribution , and sale of handguns. '' law enforcement , military personnel rely on the domestic firearms industry to supply them with reliable and accurate weapons that can best protect them in the line of fire . 
the best and most reliable guns will not be those designed under the requirements personal injury attorneys seek to impose through firearms lawsuits . 
rather , these lawsuits threaten to injure the domestic firearms industry , endanger the jobs of thousands of hard-working americans , and provide to foreign manufacturers an unfair advantage . 
one abusive lawsuit filed in a single county could destroy a national industry and deny citizens nationwide the right to keep and bear arms guaranteed by the constitution . 
insofar as these lawsuits have the practical effect of burdening interstate commerce in firearms , congress has the authority to act under the commerce clause of the constitution . 
the lawful commerce in arms act , by prohibiting abusive lawsuits against the firearms industry , supports core federalism principles articulated by the united states supreme court , which has made it clear that `` one state 's power to impose burdens on the interstate market ... .. 
is not only subordinate to the federal power over interstate commerce but is also constrained by the need to respect the interests of other states ... .. 
`` before closing , i think it is important to set the record straight on one item . 
some news outlets have claimed that this legislation would have barred a lawsuit involving the d.c . 
sniper and the gun the sniper obtained after it was stolen from a washington state gun shop that did not keep track of its inventory and did not realize that the guns were stolen . 
anyone who actually reads this bill will immediately realize that that claim is patently false , and it is important to note that some of the editorial pundits apparently do not believe in reading the bills before they write and publish . 
under s. 397 a plaintiff would be permitted to conduct discovery to establish the facts and circumstances surrounding what happened to the firearm while in the possession , custody , and control of the dealer and how it came into the possession of the criminal shooters . 
a plaintiff would be permitted to have his or her day in court to try to establish whether the dealer knowingly violated or made any false entry in , or failed to make an appropriate entry in , his records , which he is required to keep pursuant to federal law . 
i have here a report of violations filed by the bureau of alcohol , tobacco , and firearms regarding the washington state gun dealer . 
it contains a record of dozens of violations of federal law and quoting the following : `` the licensee 's , '' that is , the dealer 's , `` bound books were examined and compared to the physical inventory . 
it was initially determined that there were approximately 300 unaccounted for firearms . 
these initial 300-plus unaccounted for firearms are considered instances of failure to timely record disposition information in the bound record book. '' so under s. 397 a lawsuit against that dealer could go forward , and i include this report in the record at this point . 
report of violations name and address of proprietor : borgelt , brian & amp ; carr , charles n , bulls eye shooters supply , 114 puyallup ave. , tacoma , wa 98421 . 
license / permit registry number ( if any ) : 000003013e38708 . 
county ( f & amp ; e only ) : pierce . 
expiration date ( if any ) : 5/12/2003 . 
date ( s ) or period of inspection : 10/25/2002 through 11/02/2002 . 
please write firmly with a ball point pen when completing this form . 
aft officers will prepare this form in quadruplicate . 
the original copy and the suspense copy ( where required ) will be given to the proprietor or a responsible person representative . 
the remaining copies will be submitted with the completed inspection report . 
supervisors will detach one copy from the completed report for their files . 
where corrective action can not be taken during inspection , proprietors will submit the suspense copy to the area supervisor as soon as the required corrections have been made . 
an examination of your premises , records and operations has disclosed the following violations which have been explained to you : reference number : 1. nature of violation : 27 cfr section 178.124 ( a ) . 
failure to maintain atf f4473s recording firearm transfers to non-licensees . 
information obtained from the washington department of licensing indicates 25 handgun transfers to nonlicensed individuals for which you had no completed atf f4473s . 
additionally , 5 firearms transfers to nonlicensed individuals were located in your computer sales records for which you had no atf form 4473s . 
citation : 27 cfr 178 . 
date planned correction : corrective action : the licensee shall endeavor to locate the required disposition records , such as atf f4473s , in order to show evidence that a proper transfer occurred . 
reference number : 2. nature of violation : 27 cfr section 178.124 ( b ) . 
failure to keep atf f4473s in alphabetical , chronological , or numerical order . 
the inspection uncovered an area behind the store register where atf f4473s were kept . 
the area comprised of one lateral file cabinet drawer and a stack of forms . 
there were 1257 unfiled atf f4473s . 
filing by stock # is not an acceptable method of filing atf f4473s . 
citation : 27 cfr 178 . 
date planned correction : corrective action : the licensee shall immediately file atf f4473s that were found unfiled during the inspection , including any future completed atf f4473s . 
reference number : 3 nature of violation : 27 cfr section 178.124 ( c ) ( 3 ) ( iii ) . 
failure to properly record on atf f 4473 the date on which the licensee contacted the nics , response provided by the system , and/or any identification number provided by the system . 
there were 14 atf f 4473s that did not record this information . 
citation : 27 cfr 178 . 
date planned correction : corrective action : the licensee shall ensure that the complete background check information is properly entered in the designated area on the atf f 4473 . 
reference number : 4 nature of violation : 27 cfr 178.125 ( e ) . 
failure to record dispositions made in the bound books . 
the licensee 's bound books were examined and compared to the physical inventory . 
it was initially determined that there were approximately 300 unaccounted for firearms . 
these initial 300+ unaccounted for firearms are considered instances of failure to timely record disposition information in the bound record book . 
some ways of locating proper disposition of these missing firearms included : 70 atf forms 4473 filed that did not get properly entered as bound book dispositions ; 25 handgun transactions determined through the state of washington dept . 
of licensing with no bound book entries ; at least 10 dispositions to other licensees unrecorded ; and at least 6 dispositions to nonlicensees located in computer sales records that have no proper disposition . 
even after using various sources , 78 firearms remain missing at the close of this inspection with no idea of where they went . 
list provided to licensee . 
citation : 27 cfr 178 . 
date planned correction : corrective action : the licensee shall research and resolve all unaccounted open dispositions , and properly record the 70 atf f 4473 dispositions into the bound books . 
see attached list of 78 firearms unaccounted for and report them on an atf f 3310.11 , licensee theft/loss report . 
see list of firearms that no atf f 4473s have been located on but other records of transfer have been : such as 25 firearms identified by the washington department of licensing and computer records indicating a sale but no other information in regards to the transfer . 
in addition , the licensee will annotate the bound book disposition entries with date , name , and address and note that no atf f 4473 exists . 
report bushmaster rifle , model pcwa3x , serial number l284320 on an atf f f3310.11 , licensee theft/loss report , and make note in the bound book . 
i have received a copy of this report of violations ( proprietor 's signature and title ) : date : signature and title of inspection officer : sandra y. sherlock , atf inspector . 
date : 11/04/2002 note : proprietors must notify the atf official below when corrective actions required as a result of this inspection have been completed . 
failure to notify atf may subject proprietors to a recall inspection or to other administrative action . 
mail or delivery to ( address ) : area supervisor , bureau of alcohol , tobacco , and firearms , 915 2nd avenue , room 790 , seattle , wa 98174 . 
i certify that the corrective actions required as a result of this inspection have been completed . 
signature and title of proprietor : other remarks mr. speaker , this commonsense legislation is long overdue . 
congress must fulfill its constitutional duty , then exercise its authority under the commerce clause to deny a few state courts the power to bankrupt the national firearms industry and deny all americans their fundamental constitutionally guaranteed right to bear arms . 
i urge the passage of this critical legislation . 
mr. speaker , i reserve the balance of my time . 
