Default Proceed Sale Transparency Act
This bill establishes new requirements in the case of a firearm transfer by a federally licensed dealer, manufacturer, or importer to an unlicensed person prior to the completion of a background check. Current law permits these transactions—default-proceed transactions—if a submitted background check remains incomplete after three business days.
With respect to a default-proceed transaction, the bill
Finally, the bill requires the FBI to report publicly on data related to default-proceed transactions. Further, it requires the Bureau of Alcohol, Tobacco, Firearms and Explosives to report publicly on data related to the firearms transferred in default-proceed transactions.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 817 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 817
To improve the procedures of the national instant criminal background
check system in the case of firearm transfers by federally licensed
firearms importers, manufacturers, and dealers before the completion of
the related criminal background check, and to provide for annual
reports on default firearm transfers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 2, 2023
Mr. Schneider (for himself, Mr. Quigley, and Mr. Panetta) introduced
the following bill; which was referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To improve the procedures of the national instant criminal background
check system in the case of firearm transfers by federally licensed
firearms importers, manufacturers, and dealers before the completion of
the related criminal background check, and to provide for annual
reports on default firearm transfers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Default Proceed Sale Transparency
Act''.
SEC. 2. IMPROVEMENT OF NICS PROCEDURES IN THE CASE OF DEFAULT FIREARM
TRANSFERS.
(a) Requirement That Federally Licensed Firearm Importers,
Manufacturers, and Dealers Report Default Firearm Transfers.--
(1) In general.--Section 922(t) of title 18, United States
Code, is amended by adding at the end the following:
``(7) A licensed importer, licensed manufacturer, or licensed
dealer who transfers a firearm in compliance with paragraph (1), but
before the national instant criminal background check system provides
the licensee with a unique identification number, shall report the
transfer to the Federal Bureau of Investigation within 24 hours. If a
State or local law enforcement authority is conducting the related
background check, the Federal Bureau of Investigation shall transmit
the report to that authority.''.
(2) Creation of online portal and telephone hotline.--
Within 180 days after the date of the enactment of this Act,
the Attorney General shall create an online portal and
telephone hotline, that are to be used exclusively for the
purpose of reporting sufficient information to allow the
Federal Bureau of Investigation to prioritize background checks
in accordance with section 40901 of title 34, United States
Code.
(b) Prioritization of NICS Background Checks Relating to Default
Firearm Transfers.--Section 103 of the Brady Handgun Violence
Prevention Act (34 U.S.C. 40901) is amended by adding at the end the
following:
``(m) Prioritization of Background Checks Related to Default
Firearm Transfers.--In the case of a transfer referred to in section
922(t)(7) of title 18, United States Code, the system established under
this section shall give priority to completing the background check
relating to the transfer.''.
(c) Prohibition on Destruction of Records Relating to Firearm
Transfer Before Completion of Background Check.--Section 103 of the
Brady Handgun Violence Prevention Act (34 U.S.C. 40901), as amended by
subsection (b) of this section, is amended by adding at the end the
following:
``(n) Prohibition on Destruction of Records Relating to Firearm
Transfer Before Completion of Related Background Check.--The system
established under this section may not destroy any records of the
system relating to a proposed or completed firearm transfer, before
completion of the criminal background check with respect to the
prospective or actual transferee.''.
SEC. 3. ANNUAL REPORTS ON DEFAULT FIREARM TRANSFERS.
(a) In General.--Within 300 days after the date of the enactment of
this Act and annually thereafter, the Director of the Federal Bureau of
Investigation shall make accessible to the public a written report on--
(1) the number of firearms transferred as described in
section 922(t)(7) of title 18, United States Code, during the
period covered by the report, disaggregated by State;
(2) the number of the firearms described in paragraph (1)
of this subsection with respect to which the national instant
criminal background check system established under section 103
of the Brady Handgun Violence Prevention Act completed the
background check;
(3) of the number described by paragraph (2) of this
subsection--
(A) the number with respect to which the system
provided the unique identification number under
subparagraph (B)(i) or (C)(i) of section 922(t)(1) of
such title;
(B) the number with respect to which information
available to the system demonstrated that transfer of a
firearm to, or receipt of a firearm by, the transferee
would violate subsection (d), (g), or (n) of section
922 of such title or State, local, or tribal law; and
(C) in each case described by subparagraph (B) of
this paragraph, the reason for indicating that the
receipt would be a violation referred to in such
subparagraph (B), including any specific prohibiting
criteria that would bar the transferee from receipt of
a firearm or a licensee from transferring a firearm;
(4) of the number described by paragraph (3)(B) of this
subsection, the number of firearms that were retrieved from the
transferee, and the number of firearms that were not retrieved
from the transferee, with each number disaggregated by the
field division of the Bureau of Alcohol, Tobacco, Firearms and
Explosives and the State involved;
(5) in the case of the first report under this section, the
number of requests for criminal background checks received by
the system in the preceding 5 years the records of which were
purged from the system without resolution; and
(6) the number of licensed importers, licensed
manufacturers, or licensed dealers who transferred firearms as
described in section 922(t)(7) of such title during the period
covered by the report, disaggregated by the State of sale.
(b) In General.--Within 300 days after the date of the enactment of
this Act and annually thereafter, the Director of the Bureau of
Alcohol, Tobacco, Firearms and Explosives shall make accessible to the
public a written report on--
(1) the average time between receipt and recovery of a
firearm transferred as described in section 922(t)(7) of title
18, United States Code, during the period covered by the
report, where the transfer to, or receipt by, the transferee
violated subsection (d), (g), or (n) of section 922 of such
title or State, local, or tribal law;
(2) the number of firearms transferred as described in such
section 922(t)(7) during the period covered by the report, that
were recovered as part of a criminal investigation, where
receipt by the transferee violated such subsection (d), (g), or
(n) or State, local, or tribal law, disaggregated by State; and
(3) of the number described by paragraph (2) of this
subsection--
(A) the total number of firearms that were
recovered by law enforcement in States other than the
State the firearm was transferred by a licensed
importer, licensed manufacturer, or licensed dealer as
described in such section 922(t); and
(B) the information outlined in subparagraph (A) of
this paragraph, disaggregated by--
(i) the State where the firearm was
recovered; and
(ii) the State where the firearm was
transferred as described in such section
922(t).
(c) Rule of Interpretation.--A report under subsection (a) shall be
considered an annual statistical report and statistical aggregate data
for purposes of the sixth proviso under the heading ``Bureau of
Alcohol, Tobacco, Firearms and Explosives--Salaries and Expenses'' in
the Department of Justice Appropriations Act, 2012 (title II of
division B of Public Law 112-55).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
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