Bill Overview
Title: Fire Sale Loophole Closing Act
Description: This bill imposes restrictions on the transfer of business inventory firearms by a firearms importer, manufacturer, or dealer whose license is revoked or denied. An individual who violates the restrictions is subject to criminal penalties—a fine, prison term of up to one year (or five years if the violation was willful), or both.
Sponsors: Sen. Booker, Cory A. [D-NJ]
Target Audience
Population: firearms importers, manufacturers, and dealers with revoked or denied licenses
Estimated Size: 130000
- The bill targets firearms importers, manufacturers, and dealers whose licenses are revoked or denied.
- In the United States, there are approximately 130,000 federally licensed firearms dealers.
- A smaller subset of these dealers might have their licenses revoked or denied each year.
- Those specifically engaged in business inventory firearm transfers are directly affected.
- This impact is largely focused on preventing the circumvention of laws when a licensee loses their license.
Reasoning
- The policy impacts a niche group of people directly associated with the firearms industry, specifically those whose licenses have been revoked or denied, limiting the broader effects on general populations.
- The sizable budget over 10 years suggests significant enforcement and regulatory measures, which should deter violations among the target group, potentially impacting their operations.
- The wellbeing for the average American not directly related to this industry is unlikely to change significantly as the policy does not directly target them.
- We should consider the heterogeneity in the firearms industry, including small, large, urban, and rural dealers as well as differences in their business models.
- It is important to include views from people who might benefit indirectly from reduced availability of firearms, such as those concerned about gun violence.
Simulated Interviews
firearms dealer (Texas)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy negatively affects my already struggling business by limiting my ability to sell remaining inventory.
- I understand the need for regulation but feel there are more pressing areas to target.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 5 |
| Year 20 | 4 | 5 |
social worker (Illinois)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I believe this policy is a step in the right direction towards reducing illegal firearm circulation.
- Closing loopholes like this could prevent firearms from ending up on the streets.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
firearms manufacturer (Florida)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could limit the market for my collectible firearms inventory, which is mostly operating on thin margins already.
- Policy might come across as overly punitive without due process for reinstatement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 6 |
activist (California)
Age: 28 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I support any measure that restricts the flow of guns, especially those that are not managed under federal regulations.
- This policy seems necessary but perhaps lacks the teeth without broader measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 8 | 5 |
retired law enforcement (Missouri)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I've seen firsthand the consequences of unregulated firearms falling into the wrong hands.
- This bill adds another layer of security ensuring licensed dealers remain accountable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
gun shop owner (Nevada)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I worry about the impacts on my business and on my ability to provide for my family.
- These policies are made in a vacuum without understanding on-ground realities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 4 | 6 |
| Year 20 | 4 | 6 |
policy researcher (New York)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The policy is a targeted approach addressing the responsibilities of the firearms industry.
- Evidence-based laws like this can produce long-term safety benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 6 |
firearms importer (Ohio)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The restrictions could strangle my business. I rely heavily on the ability to move inventory quickly.
- We need a balance between regulations and operational feasibility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 4 | 6 |
| Year 20 | 4 | 5 |
college student (Oregon)
Age: 24 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Though not directly affected, I feel safer knowing there are stricter rules around firearm deals.
- It shows commitment to public safety.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
firearms enthusiast (Virginia)
Age: 58 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- These types of regulations don't really affect me directly, as I'm not in the business.
- Overall, I worry about overreach but see the need to close loopholes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $8000000 (Low: $6000000, High: $10000000)
Year 2: $8100000 (Low: $6100000, High: $10100000)
Year 3: $8200000 (Low: $6200000, High: $10200000)
Year 5: $8400000 (Low: $6400000, High: $10400000)
Year 10: $9000000 (Low: $6800000, High: $11200000)
Year 100: $15000000 (Low: $10000000, High: $20000000)
Key Considerations
- Enforcement costs depend on the effectiveness of federal agencies in monitoring and compliance check activities.
- Legal challenges and interpretations may influence the long-term cost structure.
- The potential deterrence effect could balance initial enforcement costs.