The bill establishes new regulations regarding identification markings on firearms and firearm parts in Iowa. It mandates the Department of Public Safety (DPS) to develop a system by December 1, 2026, for issuing unique serial numbers or other identification marks for firearms and unfinished frames or lower receivers. The bill prohibits the removal, defacement, alteration, or obliteration of any identifying marks on firearms, with possession of such firearms serving as prima facie evidence of violation. Additionally, individuals must obtain a unique serial number from the DPS before completing the manufacture of a firearm and must engrave or permanently affix this number in compliance with federal regulations.

Furthermore, the bill restricts the sale, delivery, or transfer of unfinished frames or lower receivers that lack a unique serial number obtained through the new system. Starting December 1, 2026, individuals must be eligible to purchase and possess firearms to hold unfinished frames or lower receivers. The bill also includes specific exemptions for federally licensed manufacturers and certain antique firearms. Violations of the bill are classified as a class C felony, while knowingly transferring stolen or altered unfinished frames or lower receivers constitutes a class B felony, with forfeiture of any firearms or parts involved in violations.