The Fire Sale Loophole Closing Act restricts how firearms dealers can dispose of their business inventory when their federal licenses are revoked or not renewed. Under the bill, dealers who receive notice that their license will be revoked or denied renewal are prohibited from moving firearms from their business inventory into their personal collection, selling them to employees, or acquiring firearms from their own inventory. Once a license is actually revoked or expires, dealers can only transfer remaining business inventory firearms to other licensed dealers or law enforcement within 30 days; after that period, such transfers become illegal. Additionally, anyone who has already moved business inventory firearms into a personal collection cannot sell those firearms for one year after the transfer. Violations carry criminal penalties of up to one year in prison or a fine, with willful violations punishable by up to five years in prison. The bill directs the Attorney General to include information about these restrictions in all license revocation and denial notices sent to dealers.
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