1. Except as otherwise provided in subsection 2, a licensed firearm dealer or local law enforcement agency is immune from civil liability for any act or omission arising from a firearm hold agreement, including, without limitation, any personal injury or death which results after the return of any firearm to the owner of the firearm at the termination of a firearm hold agreement.
2. A licensed firearm dealer or local law enforcement agency is not immune from civil liability pursuant to subsection 1 if:
(a) An action arising from a firearm hold agreement was the result of gross negligence or reckless or unlawful conduct on the part of the licensed firearm dealer or local law enforcement agency; or
(b) The licensed firearm dealer or local law enforcement agency knew at the time the person sought to retrieve a firearm pursuant to a firearm hold agreement that the person was:
(1) Demonstrating behavior that the person would engage in the unlawful use of the firearm;
(2) Demonstrating behavior that the person would cause harm to himself or herself or another person; or
(3) Prohibited from owning, possessing or having under his or her custody or control any firearm pursuant to NRS 202.360.
3. As used in this section:
(a) “Firearm hold agreement” means a written or oral agreement between an owner of a firearm and a licensed firearm dealer or local law enforcement agency in which a licensed firearm dealer or local law enforcement agency:
(1) Takes possession of the owner’s firearm at the request of the owner; and
(2) Returns the firearm to the owner according to the terms of the agreement.
(b) “Licensed firearm dealer” means a person licensed pursuant to 18 U.S.C. § 923(a).