A. Beginning October 1, 2010, a personal firearm, a firearm accessory or ammunition that is manufactured commercially or privately in this state and that remains within the borders of this state is not subject to federal law or federal regulation, including registration, under the authority of Congress to regulate interstate commerce and is not considered to have traveled in interstate commerce.
B. This section applies to a firearm, a firearm accessory or ammunition that is manufactured in this state from basic materials and that can be manufactured without the inclusion of any significant parts imported from another state.
C. The importation into this state of a firearm accessory, any generic or insignificant part that has other manufacturing or consumer product applications or any basic materials, including unmachined steel and unshaped wood that is incorporated into, attached to or used in conjunction with a firearm, firearm accessory or ammunition manufactured in this state, does not subject the firearm, firearm accessory or ammunition to federal regulation.
D. This section does not apply to:
1. A firearm that cannot be carried and used by one person.
2. A firearm that has a bore diameter of more than one and one-half inches and that uses smokeless powder as a propellant.
3. Ammunition with a projectile that explodes using an explosion of chemical energy after the projectile leaves the firearm.
4. A firearm that discharges two or more projectiles with one activation of the trigger or other firing device.
E. A firearm that is manufactured and sold in this state pursuant to this section shall have the words "made in Arizona" clearly stamped on a central metallic part such as the receiver or frame.
F. For the purposes of this section:
1. "Firearm accessory" means an item that is used in conjunction with or mounted on a firearm but that is not essential to the basic function of a firearm, including telescopic or laser sights, magazines, flash suppressors, folding or aftermarket stocks and grips, speedloaders, ammunition carriers and lights for target illumination.
2. "Generic or insignificant part" includes springs, screws, nuts and pins.
3. "Manufactured" means that a firearm, a firearm accessory or ammunition has been created from basic materials for functional usefulness, including forging, casting, machining or other processes for working materials.