What This Bill Does
This bill requires the Bureau of Alcohol, Tobacco, Firearms and Explosives to create an appeals process for people whose firearm transfer applications are denied. The bill also sets a 90-day deadline for the agency to approve or deny firearm transfer and registration applications.
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Who It Affects
People who apply to transfer or register firearms, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Department of Justice, Congress, and the Comptroller General of the United States.
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Key Provisions
* People whose firearm transfer applications are denied must receive the NICS transaction number (a background check identifier) and the right to appeal the denial to the Secretary in a way similar to existing appeal rules. (Sec. 2)
* If a firearm transfer application appeal succeeds, the Secretary must pay back any reasonable lawyer fees the person spent on that appeal. (Sec. 2)
* If the Secretary does not approve or deny a firearm transfer application within 90 calendar days of filing, the application is automatically approved and the transfer can happen. (Sec. 3)
* If the Secretary does not approve or deny an application to make and register a firearm within 90 calendar days of filing, the application is automatically approved and the firearm can be made. (Sec. 3)
* Two reports must be submitted to Congress within 180 days: one about unresolved background checks from 2010 through 2021, and another about what percentage of background checks from 2014 through 2021 were handled by the Federal Bureau of Investigation. (Sec. 4)
* The Bureau of Alcohol, Tobacco, Firearms and Explosives director and the Federal Bureau of Investigation director must create a written agreement about how background checks for firearm transfers will be handled and processed. (Sec. 4)
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What Changes
The Bureau of Alcohol, Tobacco, Firearms and Explosives must provide rejected applicants with a way to appeal and potentially recover lawyer fees. Firearm transfer and registration applications that are not decided within 90 days will be treated as approved. The government must report on unresolved background checks and create rules for how agencies coordinate on firearm background checks.
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Important Definitions
* NICS: The national instant criminal background check system created under the Brady Handgun Violence Prevention Act.
* Firearm: Not specified in bill text
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Effective Date
These changes apply to applications for firearm transfers and registrations that are filed or waiting to be processed on or after the date the bill becomes law. The specific date the bill becomes law is not stated in the bill text.
II
118TH CONGRESS
1ST SESSION
S. 632
To amend the Internal Revenue Code of 1986 to require the Bureau of
Alcohol, Tobacco, Firearms and Explosives to establish an administrative
relief process for individuals whose applications for transfer and registra-
tion of a firearm were denied, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 2, 2023
Mr. RISCH (for himself, Mr. SCOTT of Florida, Mr. CRAPO, Ms. LUMMIS, Mr.
LANKFORD, and Mr. MARSHALL) introduced the following bill; which was
read twice and referred to the Committee on the Judiciary
A BILL
To amend the Internal Revenue Code of 1986 to require
the Bureau of Alcohol, Tobacco, Firearms and Explosives
to establish an administrative relief process for individ-
uals whose applications for transfer and registration of
a firearm were denied, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘ATF Transparency
4
Act’’.
5
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•S 632 IS
SEC. 2. ADMINISTRATIVE RELIEF FOR DENIAL OF FIREARM
1
TRANSFER APPLICATION.
2
(a) IN GENERAL.—Section 5812 of the Internal Rev-
3
enue Code of 1986 is amended by adding at the end the
4
following new subsection:
5
‘‘(c) ADMINISTRATIVE RELIEF.—
6
‘‘(1) IN GENERAL.—With respect to any appli-
7
cation described in subsection (a) for the transfer
8
and registration of a firearm which is denied by the
9
Secretary based on a determination that transferring
10
the firearm to the transferee would violate sub-
11
section (d) of section 922 of title 18, United States
12
Code, or receipt of the firearm by the transferee
13
would violate subsection (g) or (n) of that section or
14
State, local, or tribal law, the Secretary shall—
15
‘‘(A) provide the transferee with the rel-
16
evant NICS transaction number with respect to
17
such application,
18
‘‘(B) permit such transferee to appeal such
19
denial to the Secretary in a manner similar to
20
the process for appeals provided under section
21
25.10 of title 28, Code of Federal Regulations,
22
and
23
‘‘(C) permit such transferee to provide in-
24
formation to the Secretary to prevent any sub-
25
sequent erroneous denial or extended delay by
26
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•S 632 IS
NICS pursuant to a program (as established by
1
the Secretary) similar to the Voluntary Appeal
2
File program described in section 25.10(g) of
3
title 28, Code of Federal Regulations.
4
‘‘(2) ATTORNEY FEES.—In the case of any suc-
5
cessful appeal by the transferee pursuant to the
6
process described in paragraph (1)(B), the Secretary
7
shall reimburse the transferee for any reasonable
8
and necessary attorney fees incurred with respect to
9
such appeal.
10
‘‘(3) NICS.—For purposes of this subsection,
11
the term ‘NICS’ means the national instant criminal
12
background check system established under section
13
103 of the Brady Handgun Violence Prevention Act
14
(34 U.S.C. 40901).’’.
15
(b) EFFECTIVE DATE.—The amendment made by
16
this section shall apply to applications for the transfer and
17
registration of a firearm which are filed or pending on or
18
after the date of enactment of this Act.
19
SEC. 3. TIMELY PROCESSING OF APPLICATIONS.
20
(a) TRANSFER OF FIREARMS.—Section 5812 of the
21
Internal Revenue Code of 1986, as amended by section
22
2, is amended by adding at the end the following new sub-
23
section:
24
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•S 632 IS
‘‘(d) PROCESSING
OF
APPLICATIONS.—Notwith-
1
standing subsection (a), if an application described in such
2
subsection with respect to the transfer and registration of
3
a firearm has been filed with the Secretary and the Sec-
4
retary fails to make a determination regarding whether
5
to approve or deny such application prior to the date which
6
is 90 calendar days after the date on which such applica-
7
tion was originally filed by the transferor, the transfer and
8
registration of such firearm to the transferee shall be
9
deemed to have been approved by the Secretary for pur-
10
poses of this section and such transfer may be made. The
11
Secretary shall only deny an application described in sub-
12
section (a) on the grounds that the applicable require-
13
ments under such subsection have not been satisfied, and
14
may not deny an application solely on the grounds that
15
a determination regarding whether to approve or deny
16
such application could not be completed by the Secretary
17
during the period described in the preceding sentence.’’.
18
(b) MAKING OF FIREARMS.—Section 5822 of the In-
19
ternal Revenue Code of 1986 is amended by adding at the
20
end the following: ‘‘Notwithstanding the preceding sen-
21
tences, if a person files an application to make and reg-
22
ister a firearm with the Secretary and the Secretary fails
23
to make a determination regarding whether to approve or
24
deny such application prior to the date which is 90 cal-
25
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•S 632 IS
endar days after the date on which such application was
1
originally filed by such person, such application shall be
2
deemed to have been approved by the Secretary for pur-
3
poses of this section and such firearm may be made by
4
such person. The Secretary shall only deny an application
5
to make and register a firearm on the grounds that the
6
applicable requirements under this section have not been
7
satisfied, and may not deny an application solely on the
8
grounds that a determination regarding whether to ap-
9
prove or deny such application could not be completed by
10
the Secretary during the period described in the preceding
11
sentence.’’.
12
(c) EFFECTIVE DATE.—The amendments made by
13
this section shall apply to applications which are filed or
14
pending on or after the date of enactment of this Act.
15
SEC. 4. REPORTS AND AGREEMENTS.
16
(a) UNRESOLVED NICS CHECKS.—Not later than
17
180 days after the date of enactment of this Act, the
18
Comptroller General of the United States, in conjunction
19
with the Inspector General of the Department of Justice,
20
shall submit a report to Congress—
21
(1) detailing the number of NICS inquiries re-
22
ceived during the period of calendar years 2010
23
through 2021 with respect to the transfer of a fire-
24
arm which remained unresolved following the expira-
25
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•S 632 IS
tion of the 90-day period described in section
1
25.9(b)(1) of title 28, Code of Federal Regulations;
2
and
3
(2) providing recommendations for administra-
4
tive actions to be adopted by the Bureau of Alcohol,
5
Tobacco, Firearms and Explosives to minimize the
6
number of unresolved NICS inquiries described in
7
paragraph (1).
8
(b) ADMINISTRATION OF NICS CHECKS.—Not later
9
than 180 days after the date of enactment of this Act,
10
the Inspector General of the Department of Justice shall
11
submit a report to Congress regarding the percentage of
12
NICS inquiries during the period of calendar years 2014
13
through 2021 with respect to the transfer of a firearm
14
which were administered by the Federal Bureau of Inves-
15
tigation on behalf of the Bureau of Alcohol, Tobacco, Fire-
16
arms and Explosives.
17
(c) MEMORANDUM OF UNDERSTANDING.—Not later
18
than 180 days after the date of enactment of this Act,
19
the Director of the Bureau of Alcohol, Tobacco, Firearms
20
and Explosives and the Director of the Federal Bureau
21
of Investigation shall enter into a memorandum of under-
22
standing regarding the administration and processing of
23
NICS inquiries with respect to the transfer of firearms.
24
(d) DEFINITIONS.—In this section—
25
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•S 632 IS
(1) FIREARM.—The term ‘‘firearm’’ has the
1
same meaning given such term under section
2
5845(a) of the Internal Revenue Code of 1986.
3
(2) NICS.—The term ‘‘NICS’’ means the na-
4
tional instant criminal background check system es-
5
tablished under section 103 of the Brady Handgun
6
Violence Prevention Act (34 U.S.C. 40901).
7
Æ
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