I 
115TH CONGRESS 
1ST SESSION H. R. 4342 
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firearms has been revoked, whose application to renew such a license 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 
NOVEMBER 9, 2017 
Mr. CICILLINE (for himself, Mr. SWALWELL of California, Mr. NADLER, Mr. 
KHANNA, Mr. MCGOVERN, Ms. LOFGREN, Ms. NORTON, and Mr. BLU-
MENAUER) introduced the following bill; which was referred to the Com-
mittee 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to import, manufacture, or deal in firearms has been 
revoked, whose application to renew such a license has 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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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UFACTURE, OR DEAL IN FIREARMS HAS BEEN 
REVOKED, WHOSE APPLICATION TO RENEW 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 per-
son; 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 in-
ventory firearm of the person as of the date the per-
son 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 second 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-
sions of Federal law and regulation which prohibit a per-
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