Default Proceed Sale Transparency Act

I 116TH CONGRESS 2D SESSION H. R. 8929 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 re- lated criminal background check, and to provide for annual reports on default firearm transfers. IN THE HOUSE OF REPRESENTATIVES DECEMBER 9, 2020 Mr. SCHNEIDER (for himself, Mr. QUIGLEY, Mr. PANETTA, and Mr. DEUTCH) 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 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 ‘‘Default Proceed Sale 4 Transparency Act’’. 5 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8929 IH SEC. 2. IMPROVEMENT OF NICS PROCEDURES IN THE CASE 1 OF DEFAULT FIREARM TRANSFERS. 2 (a) REQUIREMENT THAT FEDERALLY LICENSED 3 FIREARM IMPORTERS, MANUFACTURERS, AND DEALERS 4 REPORT DEFAULT FIREARM TRANSFERS.— 5 (1) IN GENERAL.—Section 922(t) of title 18, 6 United States Code, is amended by adding at the 7 end the following: 8 ‘‘(7) A licensed importer, licensed manufacturer, or 9 licensed dealer who transfers a firearm in compliance with 10 paragraph (1), but before the national instant criminal 11 background check system provides the licensee with a 12 unique identification number, shall report the transfer to 13 the Federal Bureau of Investigation within 24 hours. If 14 a State or local law enforcement authority is conducting 15 the related background check, the Federal Bureau of In- 16 vestigation shall transmit the report to that authority.’’. 17 (2) CREATION OF ONLINE PORTAL AND TELE- 18 PHONE HOTLINE.—Within 180 days after the date 19 of the enactment of this Act, the Attorney General 20 shall create an online portal and telephone hotline, 21 that are to be used exclusively for the purpose of re- 22 porting sufficient information to allow the Federal 23 Bureau of Investigation to prioritize background 24 checks in accordance with section 40901(j) of title 25 34, United States Code. 26 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8929 IH (b) PRIORITIZATION OF NICS BACKGROUND CHECKS 1 RELATING TO DEFAULT FIREARM TRANSFERS.—Section 2 103 of the Brady Handgun Violence Prevention Act (34 3 U.S.C. 40901) is amended by redesignating subsections 4 (j) and (k) as subsections (k) and (l) and inserting after 5 subsection (i) the following: 6 ‘‘(j) PRIORITIZATION OF BACKGROUND CHECKS RE- 7 LATED TO DEFAULT FIREARM TRANSFERS.—In the case 8 of a transfer referred to in section 922(t)(7) of title 18, 9 United States Code, the system established under this sec- 10 tion shall give priority to completing the background check 11 relating to the transfer.’’. 12 (c) PROHIBITION ON DESTRUCTION OF RECORDS 13 RELATING TO FIREARM TRANSFER BEFORE COMPLETION 14 OF BACKGROUND CHECK.—Section 103 of the Brady 15 Handgun Violence Prevention Act (34 U.S.C. 40901), as 16 amended by subsection (b)(1) of this section, is amended 17 by redesignating subsections (k) and (l) as subsections (l) 18 and (m) and inserting after subsection (j) the following: 19 ‘‘(k) PROHIBITION ON DESTRUCTION OF RECORDS 20 RELATING TO FIREARM TRANSFER BEFORE COMPLETION 21 OF RELATED BACKGROUND CHECK.—The system estab- 22 lished under this section may not destroy any records of 23 the system relating to a proposed or completed firearm 24 transfer, before completion of the criminal background 25 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8929 IH check with respect to the prospective or actual trans- 1 feree.’’. 2 SEC. 3. ANNUAL REPORTS ON DEFAULT FIREARM TRANS- 3 FERS. 4 (a) IN GENERAL.—Within 300 days after the date 5 of the enactment of this Act and annually thereafter, the 6 Director of the Federal Bureau of Investigation shall 7 make accessible to the public a written report on— 8 (1) the number of firearms transferred as de- 9 scribed in section 922(t)(7) of title 18, United 10 States Code, during the period covered by the re- 11 port, disaggregated by State; 12 (2) the number of the firearms described in 13 paragraph (1) of this subsection with respect to 14 which the national instant criminal background 15 check system established under section 103 of the 16 Brady Handgun Violence Prevention Act completed 17 the background check; 18 (3) of the number described by paragraph (2) 19 of this subsection— 20 (A) the number with respect to which the 21 system provided the unique identification num- 22 ber under section 922(t)(1)(B)(i) of such title; 23 and 24 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8929 IH (B) the number with respect to which in- 1 formation available to the system demonstrated 2 that receipt of a firearm by the transferee 3 would violate subsection (g) or (n) of section 4 922 of such title or State law; and 5 (C) in each case described by subpara- 6 graph (B) of this paragraph, the reason for in- 7 dicating that the receipt would be a violation re- 8 ferred to in such subparagraph (B), including 9 any specific prohibiting criteria that would bar 10 the transferee from receipt of a firearm; 11 (4) of the number described by paragraph 12 (3)(B) of this subsection, the number of firearms 13 that were retrieved from the transferee, and the 14 number of firearms that were not retrieved from the 15 transferee, with each number broken down by the 16 field division of the Bureau of Alcohol, Tobacco, 17 Firearms, and Explosives and the State involved; 18 (5) in the case of the first report under this 19 section, the number of requests for criminal back- 20 ground checks received by the system in the pre- 21 ceding 5 years the records of which were purged 22 from the system without resolution; and 23 (6) the number of licensed importers, licensed 24 manufacturers, or licensed dealers who transferred 25 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 8929 IH firearms as described in section 922(t)(7) of such 1 title during the period covered by the report, 2 disaggregated by the State of sale. 3 (b) IN GENERAL.—Within 300 days after the date 4 of the enactment of this Act and annually thereafter, the 5 Director of the Bureau of Alcohol, Tobacco, Firearms, and 6 Explosives shall make accessible to the public a written 7 report on— 8 (1) the average time between receipt and recov- 9 ery of a firearm transferred as described in section 10 922(t)(7) of title 18, United States Code, during the 11 period covered by the report, where receipt by the 12 transferee violated subsection (g) or (n) of section 13 922 of such title or State law; 14 (2) the number of firearms transferred as de- 15 scribed in such section 922(t)(7) during the period 16 covered by the report, that were recovered as part of 17 a criminal investigation, where receipt by the trans- 18 feree violated such subsection (g) or (n) or State 19 law, disaggregated by State; and 20 (3) of the number described by paragraph (2) 21 of this subsection— 22 (A) the total number of firearms that were 23 recovered by law enforcement in States other 24 than the State the firearm was transferred by 25 VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 8929 IH a licensed importer, licensed manufacturer, or 1 licensed dealer as described in such section 2 922(t); and 3 (B) the information outlined in subpara- 4 graph (A) of this paragraph, disaggregated 5 by— 6 (i) the State where the firearm was 7 recovered; and 8 (ii) the State where the firearm was 9 transferred as described in such section 10 922(t). 11 (c) RULE OF INTERPRETATION.—A report under 12 subsection (a) shall be considered an annual statistical re- 13 port and statistical aggregate data for purposes of the 14 sixth proviso under the heading ‘‘BUREAU OF ALCOHOL, 15 TOBACCO, FIREARMS AND EXPLOSIVES—SALARIES AND 16 EXPENSES’’ in the Department of Justice Appropriations 17 Act, 2012 (title II of division B of Public Law 112–55). 18 Æ VerDate Sep 11 2014 06:38 Dec 24, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H8929.IH H8929 pbinns on DSKJLVW7X2PROD with BILLS