SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gun Victim Compensation Act''.

SEC. 2. VICTIM COMPENSATION FROM PERSONS WHO UNLAWFULLY PROVIDE 
              FIREARMS TO JUVENILES, FELONS, AND OTHER DISQUALIFIED 
              INDIVIDUALS.

    (a) Victim Compensation.--Section 924 of title 18, United States 
Code, is amended by adding at the end the following new subsection:
    ``(j)  Victim Compensation.--
            ``(1)  In general.--Any person who sells, delivers, or 
        otherwise transfers--
                    ``(A) a firearm in violation of section 922(d) or 
                section 922(b)(1); or
                    ``(B) a handgun to a person who the transferor 
                knows or has reasonable cause to believe is a juvenile, 
                except as provided in paragraph (6),
        shall be liable for damages caused by a discharge of the 
        transferred firearm by the transferee.
            ``(2) Civil action.--An action to recover damages under 
        paragraph (1) may be brought in a United States district court 
        by, or on behalf of, any person, or the estate of any person, 
        who suffers damages resulting from bodily injury to or the 
        death of any person caused by a discharge of the transferred 
        firearm by the transferee.
            ``(3) Disentitlement to recovery.--There shall be no 
        liability under this subsection if it is established by a 
        preponderance of the evidence that--
                    ``(A) the damages were suffered by a person who was 
                engaged in a criminal act against the person or 
                property of another at the time of the injury; or
                    ``(B) the injury was self-inflicted, unless the 
                plaintiff establishes that, at the time of the 
                transfer, the transferor knew or had reasonable cause 
                to believe that the transferee had not attained the age 
                of 18 years or had been adjudicated as a mental 
                defective or committed to a mental institution.
            ``(4) Period of liability.--No action under this subsection 
        may be brought for damages that are caused more than 5 years 
        after the date of the transfer of a firearm upon which an 
        action could otherwise be based.
            ``(5)  Attorney's fees and punitive damages.--A prevailing 
        plaintiff in an action under this subsection--
                    ``(A) shall be awarded reasonable attorney's fees 
                and costs, and
                    ``(B) may be awarded punitive damages.
            ``(6) Juveniles.--Paragraph (1)(B) does not apply to--
                    ``(A) a temporary transfer of a handgun to a 
                juvenile if the handgun is used by the juvenile--
                            ``(i) in the course of employment, in the 
                        course of ranching or farming related to 
                        activities at the residence of the juvenile (or 
                        on property used for ranching or farming at 
                        which the juvenile, with the permission of the 
                        property owner or lessee, is performing 
                        activities related to the operation of the farm 
                        or ranch), target practice, hunting, or a 
                        course of instruction in the safe and lawful 
                        use of a handgun;
                            ``(ii) with the prior written consent of 
                        the juvenile's parent or guardian who is not 
                        prohibited by Federal, State, or local law from 
                        possessing a firearm, except--
                                    ``(I) during transportation by the 
                                juvenile of an unloaded handgun in a 
                                locked container directly from the 
                                place of transfer to a place at which 
                                an activity described in clause (i) is 
                                to take place and transportation by the 
                                juvenile of that handgun, unloaded and 
                                in a locked container, directly from 
                                the place at which such an activity 
                                took place to the transferor; or
                                    ``(II) with respect to ranching or 
                                farming activities as described in 
                                clause (i), with the prior written 
                                approval of the juvenile's parent or 
                                legal guardian and at the direction of 
                                an adult who is not prohibited by 
                                Federal, State, or local law from 
                                possessing a firearm;
                            ``(iii) if the juvenile keeps the prior 
                        written consent in the juvenile's possession at 
                        all times when a handgun is in the possession 
                        of the juvenile; and
                            ``(iv) in accordance with State and local 
                        law;
                    ``(B) issuance of a handgun to a juvenile who is a 
                member of the Armed Forces of the United States or the 
                National Guard who possesses or is armed with the 
                handgun in the line of duty;
                    ``(C) a transfer by inheritance of title (but not 
                possession) of a handgun to a juvenile;
                    ``(D) a delivery of a handgun by a juvenile to be 
                used in defense of the juvenile or other persons 
                against an intruder into the residence of the juvenile 
                or a residence in which the juvenile is an invited 
                guest; or
                    ``(E) a transfer of a handgun for consideration if 
                the transfer is made in accordance with State and local 
                law and with the prior consent of the juvenile's parent 
                or legal guardian who is not prohibited by Federal, 
                State, or local law from possessing a firearm.
            ``(7) Rule of construction.--Nothing in this subsection 
        shall be construed to limit or have any other effect on any 
        other cause of action available to any person.''.
    (b) Definition.--Section 921(a) of title 18, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(30) The term `juvenile' means a person who is less than 18 years 
of age.''.
    (c) Application of Amendment.--The amendment made by subsection (a) 
shall apply to damages resulting from a firearm that was transferred as 
described in section 924(j)(1) of title 18, on or after the date of 
enactment of this Act.
Gun Victim Compensation Act - Amends the Federal criminal code to make any person who sells, delivers, or otherwise transfers a firearm to a juvenile, felon, or other disqualified individual, or a handgun to a person who the transferor knows or has reasonable cause to believe is a juvenile liable for damages caused by a discharge of the transferred firearm by the transferee.  Makes exceptions, including for certain temporary transfers to a juvenile who uses a handgun in the course of employment relating to ranching or farming with the prior written consent of a parent or guardian and for the issuance of a handgun to a juvenile who is a member of the armed forces or National Guard. 
Authorizes an action for damages to be brought in a U.S.  district court by, or on behalf of, any person who suffers damages resulting from bodily injury or death caused by a discharge of the transferred firearm by the transferee. 
Specifies that there shall be no liability under this Act if it is established by a preponderance of the evidence that:  (1) the damages were suffered by an individual who was engaged in a criminal act against the person or property of another at the time of the injury; or (2) the injury was self-inflicted unless the plaintiff establishes that, at the time of the transfer, the transferor knew or had reasonable cause to believe that the transferee had not attained age 18 or had been adjudicated as a mental defective or committed to a mental institution. 
Limits actions to those brought within five years after the date of the transfer of the firearm. 
Requires that a prevailing plaintiff be awarded attorney's fees. Permits the award of punitive damages.
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