Fire Sale Loophole Closing Act
This bill imposes restrictions on the transfer of business inventory firearms by a firearms importer, manufacturer, or dealer whose license is revoked or denied.
An individual who violates the restrictions is subject to criminal penalties—a fine, prison term of up to one year (or five years if the violation was willful), or both.
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 deal in firearms has been revoked, whose application to renew such a 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              TO IMPORT, MANUFACTURE, OR DEAL IN FIREARMS HAS BEEN 
              REVOKED, WHOSE APPLICATION TO RENEW SUCH A LICENSE HAS 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revocation or denial determination that is rescinded.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 rescinded.''.
    (b) Business Inventory Defined.--Section 921(a) of title 18, United 
States Code, 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 title 18, United 
States Code, is amended, in the second sentence, by inserting ``section 
922(aa) and to'' after ``subject only to''.
    (d) Penalties.--Section 924(a) of title 18, United States Code, 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 title 18, United States Code, is amended, 
in the last sentence, by inserting ``, and shall set forth the 
provisions of Federal law (including regulations) that 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 at 
the end.
                                 <all>
Fire Sale Loophole Closing Act
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.
Fire Sale Loophole Closing Act
Sen. Booker, Cory A.