I 

113TH CONGRESS 

1ST SESSION H. R. 238 

To amend chapter 44 of title 18, United States Code, to restrict the ability 

of a person whose Federal license to import, manufacture, or deal in 

firearms has been revoked, whose application to renew such a license 

has been denied, or who has received a license revocation or renewal 

denial notice, to transfer business inventory firearms, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 14, 2013 

Ms. MENG introduced the following bill; which was referred to the Committee 

on the Judiciary 

A BILL 

To amend chapter 44 of title 18, United States Code, to 

restrict the ability of a person whose Federal license 

to import, manufacture, or deal in firearms has been 

revoked, whose application to renew such a license has 

been denied, or who has received a license revocation 

or renewal denial notice, to transfer business inventory 

firearms, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Fire Sale Loophole 

3 Closing Act’’. 

4 SEC. 2. RESTRICTIONS ON THE ABILITY OF A PERSON 

5 WHOSE FEDERAL LICENSE TO IMPORT, MAN6 UFACTURE, OR DEAL IN FIREARMS HAS BEEN 

7 REVOKED, WHOSE APPLICATION TO RENEW 

8 SUCH A LICENSE HAS BEEN DENIED, OR WHO 

9 HAS RECEIVED A LICENSE REVOCATION OR 

10 RENEWAL DENIAL NOTICE, TO TRANSFER 

11 BUSINESS INVENTORY FIREARMS. 

12 (a) RESTRICTIONS.—Section 922 of title 18, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

15 ‘‘(aa)(1)(A) It shall be unlawful for a person who has 

16 been notified by the Attorney General that the Attorney 

17 General has made a determination to revoke a license 

18 issued to the person under this chapter to import, manu19 facture, or deal in firearms, or to deny an application of 

20 the person to renew such a license, to— 

21 ‘‘(i) transfer a business inventory firearm 

22 of the person— 

23 ‘‘(I) into a personal collection of the 

24 person; or 


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1 ‘‘(II) to an employee of the person, or 

2 to an individual described in section 

3 923(d)(1)(B) with respect to the person; or 

4 ‘‘(ii) receive a firearm that was a business 

5 inventory firearm of the person as of the date 

6 the person received the notice. 

7 ‘‘(B) Subparagraph (A) shall not apply with respect 

8 to a license revocation or denial determination that is re9 scinded. 

10 ‘‘(2)(A) It shall be unlawful for a person, on or after 

11 the effective date of the revocation of a license issued to 

12 the person under this chapter to import, manufacture, or 

13 deal in firearms, or (in the case that the application of 

14 the person to renew such a license is denied) on or after 

15 the date the license expires, to— 

16 ‘‘(i) engage in conduct prohibited by paragraph 

17 (1); or 

18 ‘‘(ii) transfer to any other person (except a per19 son licensed under this chapter or a Federal, State, 

20 or local law enforcement agency) a firearm that was 

21 a business inventory firearm of the person as of the 

22 effective date or expiration date, as the case may be. 

23 ‘‘(B) Subparagraph (A) shall not apply with respect 

24 to a license revocation or denial determination that is re25 versed.’’. 


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1 (b) BUSINESS INVENTORY DEFINED.—Section 

2 921(a) of such title is amended by adding at the end the 

3 following: 

4 ‘‘(36) BUSINESS INVENTORY FIREARM.—The term 

5 ‘business inventory firearm’ means, with respect to a per6 son, a firearm required by law to be recorded in the acqui7 sition and disposition logs of any firearms business of the 

8 person.’’. 

9 (c) CONFORMING AMENDMENT.—Section 923(c) of 

10 such title is amended in the 2nd sentence by inserting 

11 ‘‘section 922(aa) and to’’ after ‘‘subject only to’’. 

12 (d) PENALTIES.—Section 924(a) of such title is 

13 amended by adding at the end the following:. 

14 ‘‘(8) Whoever knowingly violates section 922(aa) 

15 shall be fined under this title, imprisoned not more than 

16 1 year (or, if the violation was willful, 5 years), or both.’’. 

17 (e) REQUIREMENT THAT LICENSE REVOCATION OR

18 APPLICATION DENIAL NOTICE INCLUDE TEXT OF LAW

19 PROHIBITING DEALING IN FIREARMS WITHOUT A FED20 ERAL FIREARMS LICENSE AND RESTRICTING TRANSFER

21 OF FIREARMS AFTER RECEIPT OF OFFICIAL LICENSE

22 REVOCATION OR RENEWAL APPLICATION DENIAL NO23 TICE.—Section 923(f)(1) of such title is amended in the 

24 last sentence by inserting ‘‘, and shall set forth the provi25 sions of Federal law and regulation which prohibit a perVerDate Mar 15 2010 04:33 Jan 15, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H238.IH H238

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1 son not licensed under this chapter from engaging in the 

2 business of dealing in firearms or are relevant in deter3 mining whether a person is doing so, and the provisions 

4 of section 922(aa)’’ before the period. 

Æ 


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