Protecting Individual Liberties and States' Rights Act - Amends the federal criminal code to modify the definition of a "crime punishable by imprisonment for a term exceeding one year" for purposes of firearms prohibitions to specifically exclude any offense pertaining to marijuana that occurs in a state if the conduct constituting the offense is lawful under the law of the state.

Provides that the prohibition against knowingly selling or otherwise disposing of a firearm or ammunition to any person who is an unlawful user of or addicted to a controlled substance, and the prohibition against such a person transporting, possessing, or receiving a firearm or ammunition in interstate or foreign commerce, shall not apply with respect to a sale or other disposition to, or the transportation, possession, or receipt by, a person if: (1) the controlled substance is marijuana, (2) the possession of marijuana is lawful under the law of the state, and (3) the person is a resident of the state.