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 (B) Rescinded determinations Subparagraph (A) shall not apply with respect to a license revocation or denial determination that is rescinded.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)..