[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3100 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3100

 To amend chapter 44 of title 18, United States Code, to restrict the 
    ability to transfer business inventory firearms, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2023

  Mr. Booker introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To amend chapter 44 of title 18, United States Code, to restrict the 
    ability 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 of 
2023''.

SEC. 2. SENSE OF THE CONGRESS.

    It is the sense of Congress that the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives has the authority to regulate how Federal 
firearms licensees discontinue their firearms businesses, and to 
clarify statutory requirements regarding firearms that remain in the 
possession of a former licensee (or a responsible person of the former 
licensee) at the time the license is terminated.

SEC. 3. RESTRICTIONS ON THE ABILITY 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) Restrictions on Ability To Transfer Business Inventory 
Firearms.--
            ``(1) Transfer after notice of license revocation or denial 
        of license renewal.--
                    ``(A) Offense.--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) Rescinded determinations.--Subparagraph (A) 
                shall not apply with respect to a license revocation or 
                denial determination that is rescinded.
            ``(2) Transfer after revocation or expiration of license.--
                    ``(A) Offense.--It shall be unlawful for a person--
                            ``(i) 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; or
                            ``(ii) after the 30-day period that begins 
                        with the applicable date referred to in clause 
                        (i), transfer to a person licensed under this 
                        chapter a firearm that was a business inventory 
                        firearm of the person as of the applicable 
                        date.
                    ``(B) Reversed determinations.--Subparagraph (A) 
                shall not apply with respect to a license revocation or 
                denial determination that is reversed.
            ``(3) Transfer of former business inventory firearm out of 
        personal collection.--It shall be unlawful for any person who 
        has transferred a business inventory firearm into a personal 
        collection of the person, to transfer the firearm within 1 year 
        after the transfer of the business inventory firearm.''.
    (b) Business Inventory Firearm Defined.--Section 921(a) of such 
title is amended by adding at the end the following:
    ``(38) 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:
    ``(9) 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 Business Inventory 
Firearms.--Section 923(f)(1) of such title is amended by inserting 
after the first sentence the following: ``A written notice described in 
the preceding sentence shall set forth the provisions of Federal 
statutes and regulations that prohibit a person not licensed under this 
chapter from engaging in the business of dealing in firearms or that 
are relevant in determining whether a person is doing so, and the 
provisions of section 922(aa).''.
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