SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fire Sale Loophole 
Closing Act’’. 
SEC. 2. RESTRICTIONS ON THE ABILITY OF A PERSON 
WHOSE FEDERAL LICENSE TO IMPORT, MAN-
UFACTURE, OR DEAL IN FIREARMS HAS BEEN 
REVOKED, WHOSE APPLICATION TO RENEW 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. 
(a) RESTRICTIONS.—Section 922 of title 18, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(aa)(1)(A) It shall be unlawful for a person who has 
been notified by the Attorney General that the Attorney 
General has made a determination to revoke a license 
issued to the person under this chapter to import, manu-
facture, or deal in firearms, or to deny an application of 
the person to renew such a license, to— 
‘‘(i) transfer a business inventory firearm 
of the person— 
‘‘(I) into a personal collection of the 
person; or 
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‘‘(II) to an employee of the person, or 
to an individual described in section 
923(d)(1)(B) with respect to the person; or 
‘‘(ii) receive a firearm that was a business 
inventory firearm of the person as of the date 
the person received the notice. 
‘‘(B) Subparagraph (A) shall not apply with respect 
to a license revocation or denial determination that is re-
scinded. 
‘‘(2)(A) It shall be unlawful for a person, on or after 
the effective date of the revocation of a license issued to 
the person under this chapter to import, manufacture, or 
deal in firearms, or (in the case that the application of 
the person to renew such a license is denied) on or after 
the date the license expires, to— 
‘‘(i) engage in conduct prohibited by paragraph 
(1); or 
‘‘(ii) transfer to any other person (except a per-
son licensed under this chapter or a Federal, State, 
or local law enforcement agency) a firearm that was 
a business inventory firearm of the person as of the 
effective date or expiration date, as the case may be. 
‘‘(B) Subparagraph (A) shall not apply with respect 
to a license revocation or denial determination that is re-
versed.’’. 
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(b) 
BUSINESS
INVENTORY
DEFINED.—Section 
921(a) of such title is amended by adding at the end the 
following: 
‘‘(36) BUSINESS INVENTORY FIREARM.—The term 
‘business inventory firearm’ means, with respect to a per-
son, a firearm required by law to be recorded in the acqui-
sition and disposition logs of any firearms business of the 
person.’’. 
(c) CONFORMING AMENDMENT.—Section 923(c) of 
such title is amended in the 2nd sentence by inserting 
‘‘section 922(aa) and to’’ after ‘‘subject only to’’. 
(d) PENALTIES.—Section 924(a) of such title is 
amended by adding at the end the following:. 
‘‘(8) 
Whoever 
knowingly 
violates 
section 
922(aa) shall be fined under this title, imprisoned 
not more than 1 year (or, if the violation was willful, 
5 years), or both.’’. 
(e) REQUIREMENT THAT LICENSE REVOCATION OR 
APPLICATION DENIAL NOTICE INCLUDE TEXT OF LAW 
PROHIBITING DEALING IN FIREARMS WITHOUT A FED-
ERAL FIREARMS LICENSE AND RESTRICTING TRANSFER 
OF FIREARMS AFTER RECEIPT OF OFFICIAL LICENSE 
REVOCATION OR RENEWAL APPLICATION DENIAL NO-
TICE.—Section 923(f)(1) of such title is amended in the 
last sentence by inserting ‘‘, and shall set forth the provi-
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sions of Federal law and regulation which prohibit a per-
son not licensed under this chapter from engaging in the 
business of dealing in firearms or are relevant in deter-
mining whether a person is doing so, and the provisions 
of section 922(aa)’’ before the period. 
Æ 
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