Senator Curtis S. Bramble proposes the following substitute bill:




Chief Sponsor: Justin L. Fawson

Senate Sponsor: Curtis S. Bramble

6     Cosponsor:
Derrin Owens


9     General Description:
10          This bill limits the liability of manufacturers and sellers of firearms and ammunition.
11     Highlighted Provisions:
12          This bill:
13          ▸     enacts the Lawful Commerce in Arms Act;
14          ▸     creates definitions; and
15          ▸     limits the liability of manufacturers and sellers of firearms and ammunition to
16     specific situations.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     ENACTS:
23          53-5d-101, Utah Code Annotated 1953
24          53-5d-102, Utah Code Annotated 1953

25          53-5d-103, Utah Code Annotated 1953

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 53-5d-101 is enacted to read:

30          53-5d-101. Title.
31          This chapter is known as the "Lawful Commerce in Arms Act."
32          Section 2. Section 53-5d-102 is enacted to read:
33          53-5d-102. Definitions.
34          As used in this chapter:
35          (1) "Ammunition" means a bullet, a cartridge case, primer, propellant powder, or other
36     ammunition designed for use in any firearm, either as an individual component part or in a
37     completely assembled cartridge.
38          (2) "Manufacturer" means, with respect to a qualified product, a person who is engaged
39     in the business of manufacturing a qualified product and who is licensed to engage in business
40     as a manufacturer under 18 U.S.C. Chapter 44.
41          (3) "Negligent entrustment" means the supplying of a qualified product by a seller for
42     use by another person when the seller knows, or reasonably should know, the person to whom
43     the product is supplied is likely to, and does, use the product in a manner involving
44     unreasonable risk of physical injury to the person or others.
45          (4) "Person" means the same as that term is defined in Section 68-3-12.5.
46          (5) (a) "Qualified civil liability action" means a civil action or proceeding or an
47     administrative proceeding brought by any person against a manufacturer or seller of a qualified
48     product, or a trade association, for damages, punitive damages, injunctive or declaratory relief,
49     abatement, restitution, fines, or penalties, or other relief, resulting from the criminal or
50     unlawful misuse of a qualified product by the person or a third party.
51          (b) "Qualified civil liability action" does not include:
52          (i) an action brought against a transferor convicted under 18 U.S.C. Sec. 924(h) or
53     Section 76-10-503 by a party directly harmed by the conduct of which the transferee was
54     convicted;
55          (ii) an action brought against a seller for negligent entrustment or negligence per se;

56          (iii) an action in which a manufacturer or seller of a qualified product knowingly
57     violated a state or federal statute applicable to the sale or marketing of the product, and the
58     violation was a proximate cause of the harm for which relief is sought, including:
59          (A) any incident in which the manufacturer or seller knowingly made any false entry
60     in, or failed to make appropriate entry in, any record required to be kept under federal or state
61     law with respect to the qualified product, or aided, abetted, or conspired with any person in
62     making any false or fictitious oral or written statement with respect to any fact material to the
63     lawfulness of the sale or other disposition of a qualified product; or
64          (B) any case in which the manufacturer or seller aided, abetted, or conspired with any
65     other person to sell or otherwise dispose of a qualified product, knowing, or having reasonable
66     cause to believe, that the actual buyer of the qualified product was prohibited from possessing
67     or receiving a firearm or ammunition under 18 U.S.C. Sec. 922(g) or (n) or Section 76-10-503;
68          (iv) an action for breach of contract or warranty in connection with the purchase of the
69     product;
70          (v) an action for death, physical injuries, or property damage resulting directly from a
71     defect in design or manufacture of the product, when used as intended or in a reasonably
72     foreseeable manner, except that where the discharge of the product was caused by a volitional
73     act that constituted a criminal offense, then the act shall be considered the sole proximate cause
74     of any resulting death, personal injuries, or property damage; or
75          (vi) an action or proceeding commenced to enforce the provisions of 18 U.S.C.
76     Chapter 44, 26 U.S.C. Chapter 53, or Title 76, Chapter 10, Part 5, Weapons.
77          (6) "Qualified product" means a firearm or antique firearm, as defined in Section
78     76-10-501, ammunition, or a component part of a firearm or ammunition.
79          (7) "Seller" means, with respect to a qualified product, a federal firearms licensee, as
80     defined in Section 76-10-501.
81          (8) "Trade association" means:
82          (a) any corporation, unincorporated association, federation, business league, or
83     professional or business organization not organized or operated for profit and no part of the net
84     earnings of which inures to the benefit of any private shareholder or individual;
85          (b) an organization described in 26 U.S.C. Sec. 501(c)(6) and exempt from tax under
86     26 U.S.C. Sec. 501(a); and

87          (c) an organization, two or more members of which are manufacturers or sellers of a
88     qualified product.
89          (9) "Unlawful misuse" means conduct that violates a statute, ordinance, or regulation
90     as it relates to the use of a qualified product.
91          Section 3. Section 53-5d-103 is enacted to read:
92          53-5d-103. Limitations on liability.
93          (1) A manufacturer or seller of a qualified product, or trade association, is not subject
94     to civil liability regarding the unlawful misuse of a qualified product unless an injury or death
95     results from an act or omission of the manufacturer, seller, or trade association that constitutes
96     gross negligence, recklessness, or intentional misconduct.
97          (2) A qualified civil liability action against a manufacturer, seller, or trade association
98     that does not allege any of the provisions of Subsection 53-5d-103(5)(b) shall be dismissed.