21st Century Firearm Technology and Safety Act of 1998

21st Century Firearm Technology and Safety Act of 1998 - Directs the Director of the National Institute of Justice to make grants to reduce firearms violence through improvements in firearms safety technology, weapons detection technology, and other technology. Authorizes appropriations for FY 1998 through 2002.

Establishes in the Department of Justice the Independent Panel on Firearms Safety to: (1) research how technology can be used in the area of weapons safety improvements to reduce violence; and (2) direct, oversee, and review the work of the Technical Study Group on Firearms Safety. Requires the Panel to: (1) report to the Congress on the findings of the Technical Study Group on Firearms Safety (established in the Department under this Act); and (2) if the report contains a recommendation for standards governing the design of firearm safety locks, forward the recommendation to the National Institute of Justice. Requires the Panel to submit to the Congress annual reports detailing its findings and recommendations on such firearms safety improvements as the Panel considers appropriate. Terminates the Panel five years after the date it is organized.

Requires the Group to undertake such studies and activities as it considers necessary to determine the technical and commercial feasibility, economic impact, and other consequences of developing improvements in firearms safety technology. States that: (1) a main focus of the Group shall be to reduce deaths and injuries resulting from the unintended or inappropriate discharge of firearms; and (2) the Group's initial research should be a study of the reliability of firearm safety locks and a determination as to whether the locks prevent the unintended discharge of firearms. Requires the Group to: (1) report to the Panel on its findings; and (2) include in the report a recommendation for standards governing the design of firearm safety locks if the Group determines that firearm safety locks can prevent the unintended discharge of firearms.