Committee backs bill to make sellers of weapon-conversion devices and some online marketplaces civilly liable

The House Judiciary Committee voted to advance a substantially amended substitute to Senate Bill 318, a measure that would add weapon-conversion devices and certain online marketing practices to New Mexico’s Unfair Practices Act and create a civil pathway against manufacturers and some sellers of devices that convert lawful firearms into fully automatic weapons.

Sponsor remarks said the bill’s core objective is to close an online marketplace for “conversion devices” that are advertised with instructions and parts for converting handguns and rifles into unlawful automatic weapons. The sponsor told the committee the measure was drafted to fit within the exception to federal immunity for firearms manufacturers (the Protection of Lawful Commerce in Arms Act) by relying on state consumer-protection law where a knowing violation of federal or state law can be alleged.

The bill drew substantial oral testimony. The New Mexico Attorney General’s Office warned in committee testimony that amendments affecting confidentiality of civil investigative demands could impede enforcement; the sponsor and the committee agreed to a proposed change to preserve certain confidentiality protections and to add severability language. Business groups and internet companies — including the New Mexico Chamber of Commerce, the National Shooting Sports Foundation, and trade representatives for online marketplaces — opposed broad language that could sweep general online platforms into liability. TechNet and other technology-industry witnesses asked that ordinary classified-ad listings or platforms that merely host listings be excluded.

The chair and sponsor proposed and the committee adopted an amendment narrowing the online-marketplace definition and expressly excluding entities that only offer classified advertisements (that do not operate transactional marketplace functions). The sponsor also proposed an amendment intended to preserve the confidentiality and investigatory tools used by the Attorney General’s Office; committee members added a severability clause to the bill.

Proponents included gun-violence-prevention groups who said the bill would reduce the online availability of conversion devices; opponents — including trade groups and some shooting-industry representatives — said the bill as initially drafted was overly broad, risked constitutional and commerce-clause challenges, and could subject marketplaces to uncertain liability. The sponsor said the initial floor-level penalties had been reduced substantially in prior amendments (from very large sums down to lower caps in the $10,000–$30,000 range) following stakeholder discussions.

After adopting the marketplace exemption and confidentiality language, the committee voted to recommend a due pass on the bill as amended. The committee roll call recorded a majority in favor; the chair announced a due-pass recommendation on Senate Bill 318 as amended multiple times. Committee discussion and the amendments focused on preserving the attorney-general investigative tools, limiting exposure for passive listing services such as classified ads, and narrowing the remedies to fit within the federal PLCAA exception.