Liquidation of inventory in Federal firearms license expiration, surrender, or revocation cases

Section 923 of title 18, United States Code, is amended by adding at the end the following: (m) (1) Except as provided in paragraph (2), an entity whose license issued under this chapter is expired, surrendered, or revoked shall be afforded 90 days from the effective date of the expiration, surrender, or revocation (not counting any period in which an appeal of such a revocation is pending) to liquidate the firearms business inventory of the entity, which time may be extended on a showing of reasonable cause. During the 90-day period (including any extension of the period), the license involved shall continue to be considered valid, notwithstanding the expiration, surrender, or revocation, and the Attorney General shall issue letters of authorization to the entity on which licensees under this chapter and commercial third parties may rely. At any time before the expiration of the disposition period, the entity may transfer any remaining firearms from the firearms business inventory of the entity to the entity or, if more than 1 person holds an interest in the entity, to the interest holders, at which point the firearms are deemed to be a personal collection of the entity or interest holders, as the case may be. (2) Paragraph (1) shall not apply with respect to a person if a United States district court for the judicial district in which the person resides or in which the principal place of business of the person subject to the license is located finds, by clear and convincing evidence, that the continued operation by the person of the firearms business involved poses an immediate and grave threat to public safety, in which case the person may transfer all firearms from the firearms business inventory of the person to the personal collection of the person or to another licensee for consignment or other liquidation at the direction of the person..