SB 1360

Present law generally prohibits a person from bringing a lawsuit against a dealer, manufacturer, or seller of firearms, ammunition, or a component of a firearm or ammunition (collectively referred to as a "qualified product"" ) for damages, punitive damages, injunctive or declaratory relief, abatement, restitution, fines, penalties, or other relief, resulting from the criminal or unlawful misuse of a qualified product by a person, except under six circumstances that are listed in present law. Present law refers to such a lawsuit as a ""qualified civil liability action"". This bill makes the following definitional changes concerning qualified civil liability actions: (1) Clarifies that loaded firearm ammunition is a qualifi ed product. Present law defines ammunition to mean an ammunition or cartridge case, primer, bullet, or propellant powder designed for use in a firearm; (2) Specifies that a person must be licensed to engage in business as a dealer under state and federa l law, in order for the limits on qualified civil liability actions to apply to the dealer. Present law refers only to being licensed under federal law; (3) Removes unreliability as a basis for determining that a qualified product is defective; (4) Re moves the element of an ammunition seller's principal objective being livelihood and profit for purposes of determining whether the seller is engaged in the business of selling a qualified product at wholesale or retail in Tennessee. Such determination w i ll be based on whether the person devotes time, attention, and labor to the sale of ammunition as a regular course of trade or business through the sale or distribution of ammunition; (5) Specifies that firearms, as defined by state and federal law, are qualified products. Present law includes only firearms as defined under state law; (6) Expands the definition of manufacturer to include a person who is engaged in the business of manufacturing a qualified product and (i) incorporated, formed, or regist ered in Tennessee or (ii) headquartered or maintaining a place of business in Tennessee. Present law limits the definition of manufacturer to persons who manufacture a qualified product for intrastate commerce, are licensed under federal law, and are eit h er incorporated or headquartered in Tennessee; (7) Redefines negligent entrustment to mean the supplying of a qualified product by a seller for use by another person when the seller knows, or reasonably should know by clear and convincing evidence that t he person to whom the product is supplied intends to, and does, use the product in a criminal manner involving physical injury to others. Present law does not include the clear and convincing standard and applies to uses involving unreasonable risk of ph y sical injury; (8) Adds that a qualified civil liability action includes arbitration and actions resulting from a theory of liability construing the manufacture, marketing, or sale of qualified products as tortious or the breach of a legal duty; (9) Spe cifies that a firearm or ammunition part or component, rather than a component part of a firearm or ammunition, is a qualified product; (10) Adds body armor, various firearms accessories, and various weapons that are not firearms to the definition of ""qu alified product""; and (11) Redefines seller to mean a person distributing, selling, or transferring a qualified product in this state, instead of a person engaged in the business of selling a qualified product at wholesale or retail in this state. This bill makes the following changes to the procedural requirements for qualified civil liability actions: (1) Specifies that the requirements for bringing a qualified civil liability action in Tennessee apply to all venues, such as arbitrators and adminis trative agencies. Present law only specifies that such requirements apply to actions filed in court; (2) Removes actions brought against a seller for negligence per se as a circumstance under which a qualified civil liability action may be brought; (3) Removes the requirement that a seller or transferor is licensed in order for a person to bring an action against a seller or transferor who violates a state or federal law in selling or transferring a qualified product and such violation was the sole pr o ximate cause of harm for which relief is sought. This bill also requires that to support the action the violation of state or federal law was intentional, rather than knowing; (4) Adds that, in a qualified civil liability action brought against a dealer, manufacturer, or seller of a qualified product, the complaint must allege that the defendant directly caused the damages alleged and the burden of proof is on the plaintiff to demonstrate by clear and convincing evidence that the civil liability action is not barred. If a court determines a civil liability action is barred, then this bill requires the court to dismiss the civil liability action with prejudice for failure to st a te a claim upon which relief can be granted; (5) Expresses as the public policy of this state not to allow recovery against a dealer, manufacturer, or seller of a qualified product for qualified civil liability actions or other causes of action resulting from or relating to the criminal or unlawful misuse of qualified products by third parties, public nuisance or market share theories of liability, or any other theory of liability not recognized by the laws of this state; and (6) Adds that, if a litigan t seeks to enforce a foreign judgment or award against a dealer, manufacturer, or seller of a qualified product, then the litigant must: (A) Certify that enforcement of the foreign judgment does not violate the public policy stated in (5); and (B) Demo nstrate by clear and convincing evidence that the basis for liability under the foreign judgment would not have been barred if the action had been brought as a qualified civil liability action in Tennessee. If the court determines that the foreign judgme nt does violate the public policy of this state, then this bill requires the court to dismiss the action to enforce the foreign judgment with prejudice and award a judgment against the judgment creditor and the judgment creditor's attorneys, jointly and s e verally, in favor of the dealer, manufacturer, or seller of a qualified product for three times the value of the foreign judgment attempted to be domesticated, plus attorney fees and costs incurred defending against enforcement of the foreign judgment. LO CAL REGULATION Present law generally preempts local regulation of firearms and ammunition. Present law specifies that such preemption includes, but is not limited to, various actions with regard to firearms and ammunition. This bill specifies that loca l regulation of the loan of firearms and ammunition is preempted. Present law specifies four areas in which local governments may regulate firearms and ammunition by ordinance, resolution, policy, rule, or other enactment. This bill limits the types of enactments that local governments may use to regulate firearms to ordinances and resolutions. This bill makes the following changes concerning the four areas in which local governments are presently authorized to regulate firearms and ammunition: (1) Present law authorizes local governments to regulate the discharge of firearms within the boundaries of the applicable city, county, town, municipality or metropolitan government, except when and where the discharge of a firearm is expressly authorized or permitted by state law. This bill instead authorizes local regulation of discharges within such boundaries to the extent that such regulation is expressly authorized by state law; (2) This bill clarifies that local governments may regulate the location of privately owned sport shooting ranges; and (3) Present law generally authorizes local governments to regulate the enforcement of any state or federal law pertaining to firearms, ammunition, or components of firearms or ammunition, or combinations ther eof. This bill limits local governments to regulating the enforcement of state laws. Present law includes a declaration that the lawful design, marketing, manufacture, and sale of firearms and ammunition to the public are not unreasonably dangerous acti vities and do not constitute a nuisance per se. This bill instead declares that such activities do not per se constitute a nuisance, civil conspiracy, negligent entrustment, or unlawful business practice. This bill clarifies that private actions against firearms or ammunition manufacturer, trade association, or dealer must be brought as a qualified civil liability action. Present law preempts local regulation of the transfer, ownership, possession, or transportation of knives. This bill extends such p reemption to the transfer, ownership, possession, or transportation of other weapons. Present law creates a cause of action to seek declaratory and injunctive relief, and damages, against a local government that regulates firearms and ammunition contrary to state preemption. In order to have standing in such an action, a party must be adversely affected. One element of being adversely affected is that the party is or was subject to the local regulation. This bill adds that a party may meet such elemen t of being adversely affected if the party will be subject to the local regulation. ON APRIL 15, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1360, AS AMENDED. AMENDMENT #1 corrects a typographical error."