Title: Fire Sale Loophole Closing Act
Policy area: Crime and Law Enforcement

Summary:
Fire Sale Loophole Closing Act
This bill restricts the transfer of business inventory firearms by a firearms importer, manufacturer, or dealer whose licensed is revoked or denied.
A violator is subject to criminal penalties—a fine, prison term of up to one year, or both.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4342 Introduced in House (IH)]

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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 deal in firearms has been revoked, whose application to renew such a 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. Blumenauer) 
 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 deal in firearms has been revoked, whose application to renew such a 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.

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

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              TO IMPORT, MANUFACTURE, OR DEAL IN FIREARMS HAS BEEN 
              REVOKED, WHOSE APPLICATION TO RENEW SUCH A LICENSE HAS 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.

    (a) Restrictions.--Section 922 of title 18, United States Code, is 
amended by adding at the end the following:
    ``(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, manufacture, 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
                    ``(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 rescinded.
    ``(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 person 
        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 reversed.''.
    (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 person, a firearm required by law to 
be recorded in the acquisition 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 
Federal Firearms License and Restricting Transfer of Firearms After 
Receipt of Official License Revocation or Renewal Application Denial 
Notice.--Section 923(f)(1) of such title is amended in the last 
sentence by inserting ``, and shall set forth the provisions of Federal 
law and regulation which prohibit a person not licensed under this 
chapter from engaging in the business of dealing in firearms or are 
relevant in determining whether a person is doing so, and the 
provisions of section 922(aa)'' before the period.
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