Fire Sale Loophole Closing Act

I 116TH CONGRESS 1ST SESSION H. R. 4872 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States Code, to restrict the ability of a person whose Federal license to import, manufacture, or deal in firearms has been revoked, whose application to renew such a license has been denied, or who has received a license revocation or renewal denial notice, to transfer business inventory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 OCTOBER 28, 2019 Mr. CICILLINE (for himself, Mr. SIRES, Mr. SWALWELL of California, Ms. NORTON, Mr. COHEN, Ms. DEGETTE, and Mr. NADLER) 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States Code, to restrict the ability of a person whose Federal license to import, manufacture, or deal in firearms has been revoked, whose application to renew such a license has been denied, or who has received a license revocation or renewal denial notice, to transfer business inventory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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:04 Nov 01, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4872.IH H4872 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4872 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Fire Sale Loophole 2 Closing Act’’. 3 SEC. 2. RESTRICTIONS ON THE ABILITY OF A PERSON 4 WHOSE FEDERAL LICENSE TO IMPORT, MAN- 5 UFACTURE, OR DEAL IN FIREARMS HAS BEEN 6 REVOKED, WHOSE APPLICATION TO RENEW 7 SUCH A LICENSE HAS BEEN DENIED, OR WHO 8 HAS RECEIVED A LICENSE REVOCATION OR 9 RENEWAL DENIAL NOTICE, TO TRANSFER 10 BUSINESS INVENTORY FIREARMS. 11 (a) RESTRICTIONS.—Section 922 of title 18, United 12 States Code, is amended by adding at the end the fol- 13 lowing: 14 ‘‘(aa)(1)(A) It shall be unlawful for a person who has 15 been notified by the Attorney General that the Attorney 16 General has made a determination to revoke a license 17 issued to the person under this chapter to import, manu- 18 facture, or deal in firearms, or to deny an application of 19 the person to renew such a license, to— 20 ‘‘(i) transfer a business inventory firearm of the 21 person— 22 ‘‘(I) into a personal collection of the per- 23 son; or 24 VerDate Sep 11 2014 22:04 Nov 01, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4872.IH H4872 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4872 IH ‘‘(II) to an employee of the person, or to 1 an individual described in section 923(d)(1)(B) 2 with respect to the person; or 3 ‘‘(ii) receive a firearm that was a business in- 4 ventory firearm of the person as of the date the per- 5 son received the notice. 6 ‘‘(B) Subparagraph (A) shall not apply with respect 7 to a license revocation or denial determination that is re- 8 scinded. 9 ‘‘(2)(A) It shall be unlawful for a person, on or after 10 the effective date of the revocation of a license issued to 11 the person under this chapter to import, manufacture, or 12 deal in firearms, or (in the case that the application of 13 the person to renew such a license is denied) on or after 14 the date the license expires, to— 15 ‘‘(i) engage in conduct prohibited by paragraph 16 (1); or 17 ‘‘(ii) transfer to any other person (except a per- 18 son licensed under this chapter or a Federal, State, 19 or local law enforcement agency) a firearm that was 20 a business inventory firearm of the person as of the 21 effective date or expiration date, as the case may be. 22 ‘‘(B) Subparagraph (A) shall not apply with respect 23 to a license revocation or denial determination that is re- 24 versed.’’. 25 VerDate Sep 11 2014 22:04 Nov 01, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4872.IH H4872 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4872 IH (b) BUSINESS INVENTORY DEFINED.—Section 1 921(a) of such title is amended by adding at the end the 2 following: 3 ‘‘(36) BUSINESS INVENTORY FIREARM.—The term 4 ‘business inventory firearm’ means, with respect to a per- 5 son, a firearm required by law to be recorded in the acqui- 6 sition and disposition logs of any firearms business of the 7 person.’’. 8 (c) CONFORMING AMENDMENT.—Section 923(c) of 9 such title is amended in the second sentence by inserting 10 ‘‘section 922(aa) and to’’ after ‘‘subject only to’’. 11 (d) PENALTIES.—Section 924(a) of such title is 12 amended by adding at the end the following: 13 ‘‘(8) Whoever knowingly violates section 922(aa) 14 shall be fined under this title, imprisoned not more than 15 1 year (or, if the violation was willful, 5 years), or both.’’. 16 (e) REQUIREMENT THAT LICENSE REVOCATION OR 17 APPLICATION DENIAL NOTICE INCLUDE TEXT OF LAW 18 PROHIBITING DEALING IN FIREARMS WITHOUT A FED- 19 ERAL FIREARMS LICENSE AND RESTRICTING TRANSFER 20 OF FIREARMS AFTER RECEIPT OF OFFICIAL LICENSE 21 REVOCATION OR RENEWAL APPLICATION DENIAL NO- 22 TICE.—Section 923(f)(1) of such title is amended in the 23 last sentence by inserting ‘‘, and shall set forth the provi- 24 sions of Federal law and regulation which prohibit a per- 25 VerDate Sep 11 2014 22:04 Nov 01, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4872.IH H4872 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4872 IH son not licensed under this chapter from engaging in the 1 business of dealing in firearms or are relevant in deter- 2 mining whether a person is doing so, and the provisions 3 of section 922(aa)’’ before the period. 4 Æ VerDate Sep 11 2014 22:04 Nov 01, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H4872.IH H4872 pamtmann on DSKBC07HB2PROD with BILLS