HOUSE BILL NO. 4243
A bill to impose liability for the sale, delivery, or transfer of firearms; and to require liability insurance.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "gun seller liability act".
(a) "Federal firearms license" means a license issued under 18 USC 923.
(b) "Firearm" means that term as defined in section 1 of 1927 PA 372, MCL 28.421.
(c) "Firearms dealer" means a person that holds a federal firearms license and that is engaged in the business of selling firearms.
(d) "Person" means an individual or a partnership, corporation, limited liability company, association, or other legal entity. Person includes the holder of a federal firearms license.
Sec. 3. A person is strictly liable for damages that result if all of the following apply:
(a) The person sells, delivers, or transfers a firearm to an individual.
(b) The person knows or should know that the individual is prohibited from possessing the firearm under federal law or the law of this state.
(c) The individual, or another individual who obtains possession of the firearm, uses the firearm to cause the injury or death of any other individual or to threaten or intimidate any other individual.
Sec. 4. A person that is a firearms dealer shall maintain liability insurance that provides coverage for personal injury or property damage that results from the sale, delivery, or transfer of firearms by the person, including coverage for liability imposed by this act. The limits of the coverage required by this section must be not less than $1,000,000.00.