Bills · HR 4222
IN COMMITTEE· 119TH CONGRESS
House BillHR 4222Crime and Law Enforcement
Fire Sale Loophole Closing Act of 2025
INTRO JUN 27· LAST ACTION JUN 27
READING
4MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill addresses concerns about what happens to firearms inventory when a gun dealer's license is revoked or not renewed, particularly regarding the potential for those guns to enter the market without proper oversight or traceability. Currently, when a license is terminated, there can be less scrutiny over how the remaining inventory is disposed of, which some argue could create opportunities for firearms to end up in unauthorized hands or become untraceable.
If this bill becomes law, it would significantly tighten the regulations around the final disposition of firearms from closing or penalized businesses. This could increase accountability for firearms and potentially reduce the number of guns that might otherwise fall outside of the regulated sales system. If it doesn't become law, the current process for handling inventory from terminated licenses would continue, which critics argue allows for a 'fire sale loophole' where guns could be quickly transferred without adequate tracking.
KEY PROVISIONS
5AI-extractedPROVISION 01
Prohibits a licensed firearms dealer, after receiving notice of license revocation or denial of renewal, from transferring business inventory firearms into a personal collection or to an employee/associate.
This directly targets the practice of moving firearms out of business records when a license is in jeopardy.
PROVISION 02
Prohibits a former licensed dealer, after their license is revoked or expires, from transferring business inventory firearms to anyone except another licensed dealer or a law enforcement agency, with a 30-day window for transfers to other licensed dealers.
This ensures that firearms from a terminated business generally remain within the federally regulated distribution system.
PROVISION 03
Makes it unlawful for any person who has moved a business inventory firearm into their personal collection to transfer that firearm to another person within one year of that initial transfer.
This provision aims to prevent personal collections from being used as a temporary means to bypass sales regulations.
PROVISION 04
Defines 'business inventory firearm' as any firearm required by law to be recorded in a dealer's acquisition and disposition logs, and establishes criminal penalties for violations.
Provides a clear definition for enforcement and attaches consequences for non-compliance with the new restrictions.
PROVISION 05
Requires the Attorney General to include the text of these new restrictions in any written notice to a dealer about license revocation or denial.
Ensures that affected dealers are clearly informed of their legal obligations regarding their firearm inventory.
SPONSORSHIP
1 + 0
D· Pennsylvania
YRS IN OFFICE
7
BILLS LED
22
ACTION TIMELINE
2 EVENTSJUN 27
Introduced in House
JUN 27
Referred to the House Committee on the Judiciary.
BILL INFO
TypeHouse Bill
NumberHR 4222
Congress119th
StatusIn Committee
IntroducedJun 27, 2025
Last actionJun 27, 2025
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IN COMMITTEE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED JUN 27, 2025
House BillHR 4222Crime and Law Enforcement
Fire Sale Loophole Closing Act of 2025
INTRODUCED JUN 27, 2025· LAST ACTION JUN 27, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
0
COMPLEXITY
Moderate
