House File 2421 - IntroducedA Bill ForAn Act 1relating to firearms by limiting civil liability of
2federal firearms licensees who enter into voluntary firearm
3hold agreements with individuals.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 683.1, Code 2024, is amended by adding
2the following new subsections:
3   NEW SUBSECTION.  1A.  “Federal firearms licensee” means any
4person engaged in the business of importing, manufacturing, or
5dealing in firearms as defined by the federal National Firearms
6Act, 26 U.S.C. §5841, and who currently holds a valid license
7according to provisions of the federal Gun Control Act of 1968,
818 U.S.C. §921.
9   NEW SUBSECTION.  1B.  “Firearm hold agreement” means a
10private transaction between a federal firearms licensee and an
11individual owner where the licensee takes possession of the
12owner’s lawfully possessed firearm at the owner’s request,
13holds the firearm for an agreed period of time, and returns the
14firearm according to the terms of the transaction.
15   Sec. 2.  NEW SECTION.  683.4  Firearm hold agreements —
16liability.
   171.  A person shall not have a cause of action against a
18federal firearms licensee operating lawfully in the state for
19any act or omission arising from or subsequent to a firearm
20hold agreement and resulting in personal injury or death of
21any natural person, including the return of a firearm to the
22individual firearm owner by a federal firearms licensee at the
23termination of a firearm hold agreement.
   242.  Subsection 1 shall not apply to any action arising from
25a firearm hold agreement if such action was the result of
26otherwise unlawful conduct on the part of the federal firearms
27licensee.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
   31This bill establishes firearm hold agreements, and provides
32a limitation of liability for federal firearms licensees who
33enter into such agreements.
   34The bill defines a firearm hold agreement to mean a
35private transaction between a federal firearms licensee and
-1-1an individual owner where the licensee takes possession of
2the owner’s lawful firearm at the owner’s request, holds the
3firearm for an agreed period of time, and returns the firearm
4according to the terms of the transaction.
   5The bill provides that no person shall have a cause of action
6against a federal firearms licensee operating lawfully in this
7state for any act or omission arising from or subsequent to
8a firearm hold agreement and resulting in personal injury or
9death of a person.
   10The bill provides that the limitation of liability shall not
11apply to any action arising from a firearm hold agreement if
12such action was the result of otherwise unlawful conduct on the
13part of the licensee.
-2-
cm/jh