The proposed bill, known as the "gun seller liability act," establishes strict liability for individuals and firearms dealers involved in the sale, delivery, or transfer of firearms. Under this act, a person is held strictly liable for damages if they sell a firearm to someone they know or should know is prohibited from possessing it, and that firearm is subsequently used to cause injury or death. This provision aims to hold sellers accountable for their role in the distribution of firearms to individuals who may pose a risk to public safety.

Additionally, the bill mandates that firearms dealers maintain liability insurance with a minimum coverage of $1,000,000 to cover personal injury or property damage resulting from their transactions. This requirement is intended to ensure that dealers are financially responsible for the consequences of their sales, thereby promoting safer practices within the firearms industry.