Fire Sale Loophole Closing Act - Amends the federal criminal code to make it unlawful for: (1) anyone whose federal license to import, manufacture, or deal in firearms has been revoked, or whose license renewal application has been denied, to transfer business inventory firearms into a personal collection or to an employee of such person or to receive a firearm that was a business inventory firearm as of the date of a revocation or renewal denial notice; and (2) anyone who has received a license revocation or renewal denial notice to transfer to any other person a firearm that was a business inventory firearm. Imposes a fine and/or prison term of not more than one year (five years for willful violations) for violations of this Act.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 263 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 263
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deal in firearms has been revoked, whose application to renew such a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
January 12, 2011
Mr. Ackerman 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deal in firearms has been revoked, whose application to renew such a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TO IMPORT, MANUFACTURE, OR DEAL IN FIREARMS HAS BEEN
REVOKED, WHOSE APPLICATION TO RENEW SUCH A LICENSE HAS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 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
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Crime, Terrorism, and Homeland Security.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line