I 119THCONGRESS 1 STSESSION H. R. 1740 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 FEBRUARY27, 2025 Mr. S CHNEIDER(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 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 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 1740 IH SEC. 2. IMPROVEMENT OF NICS PROCEDURES IN THE CASE 1 OF DEFAULT FIREARM TRANSFERS. 2 (a) R EQUIREMENT THATFEDERALLYLICENSED 3 F IREARMIMPORTERS, MANUFACTURERS, ANDDEALERS 4 R EPORTDEFAULTFIREARMTRANSFERS.— 5 (1) I N 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) C REATION 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 of title 34, 25 United States Code. 26 VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 1740 IH (b) PRIORITIZATION OFNICS BACKGROUNDCHECKS 1 R ELATING TODEFAULTFIREARMTRANSFERS.—Section 2 103 of the Brady Handgun Violence Prevention Act (34 3 U.S.C. 40901) is amended by adding at the end the fol-4 lowing: 5 ‘‘(m) P RIORITIZATION OFBACKGROUNDCHECKSRE-6 LATED TODEFAULTFIREARMTRANSFERS.—In the case 7 of a transfer referred to in section 922(t)(7) of title 18, 8 United States Code, the system established under this sec-9 tion shall give priority to completing the background check 10 relating to the transfer.’’. 11 (c) P ROHIBITION ON DESTRUCTION OF RECORDS 12 R ELATING TOFIREARMTRANSFERBEFORECOMPLETION 13 OFBACKGROUND CHECK.—Section 103 of the Brady 14 Handgun Violence Prevention Act (34 U.S.C. 40901), as 15 amended by subsection (b) of this section, is amended by 16 adding at the end the following: 17 ‘‘(n) P ROHIBITION ONDESTRUCTION OF RECORDS 18 R ELATING TOFIREARMTRANSFERBEFORECOMPLETION 19 OFRELATEDBACKGROUNDCHECK.—The system estab-20 lished under this section may not destroy any records of 21 the system relating to a proposed or completed firearm 22 transfer, before completion of the criminal background 23 check with respect to the prospective or actual trans-24 feree.’’. 25 VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 1740 IH SEC. 3. ANNUAL REPORTS ON DEFAULT FIREARM TRANS-1 FERS. 2 (a) I NGENERAL.—Within 300 days after the date 3 of the enactment of this Act and annually thereafter, the 4 Director of the Federal Bureau of Investigation shall 5 make accessible to the public a written report on— 6 (1) the number of firearms transferred as de-7 scribed in section 922(t)(7) of title 18, United 8 States Code, during the period covered by the re-9 port, disaggregated by State; 10 (2) the number of the firearms described in 11 paragraph (1) of this subsection with respect to 12 which the national instant criminal background 13 check system established under section 103 of the 14 Brady Handgun Violence Prevention Act completed 15 the background check; 16 (3) of the number described by paragraph (2) 17 of this subsection— 18 (A) the number with respect to which the 19 system provided the unique identification num-20 ber under subparagraph (B)(i) or (C)(i) of sec-21 tion 922(t)(1) of such title; 22 (B) the number with respect to which in-23 formation available to the system demonstrated 24 that transfer of a firearm to, or receipt of a 25 firearm by, the transferee would violate sub-26 VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 5 •HR 1740 IH section (d), (g), or (n) of section 922 of such 1 title or State, local, or tribal law; and 2 (C) in each case described by subpara-3 graph (B) of this paragraph, the reason for in-4 dicating that the receipt would be a violation re-5 ferred to in such subparagraph (B), including 6 any specific prohibiting criteria that would bar 7 the transferee from receipt of a firearm or a li-8 censee from transferring a firearm; 9 (4) of the number described by paragraph 10 (3)(B) of this subsection, the number of firearms 11 that were retrieved from the transferee, and the 12 number of firearms that were not retrieved from the 13 transferee, with each number disaggregated by the 14 field division of the Bureau of Alcohol, Tobacco, 15 Firearms and Explosives and the State involved; 16 (5) in the case of the first report under this 17 section, the number of requests for criminal back-18 ground checks received by the system in the pre-19 ceding 5 years the records of which were purged 20 from the system without resolution; and 21 (6) the number of licensed importers, licensed 22 manufacturers, or licensed dealers who transferred 23 firearms as described in section 922(t)(7) of such 24 VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 6 •HR 1740 IH title during the period covered by the report, 1 disaggregated by the State of sale. 2 (b) I NGENERAL.—Within 300 days after the date 3 of the enactment of this Act and annually thereafter, the 4 Director of the Bureau of Alcohol, Tobacco, Firearms and 5 Explosives shall make accessible to the public a written 6 report on— 7 (1) the average time between receipt and recov-8 ery of a firearm transferred as described in section 9 922(t)(7) of title 18, United States Code, during the 10 period covered by the report, where the transfer to, 11 or receipt by, the transferee violated subsection (d), 12 (g), or (n) of section 922 of such title or State, local, 13 or tribal 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 (d), (g), or (n) or 19 State, local, or tribal law, disaggregated by State; 20 and 21 (3) of the number described by paragraph (2) 22 of this subsection— 23 (A) the total number of firearms that were 24 recovered by law enforcement in States other 25 VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS 7 •HR 1740 IH than the State the firearm was transferred by 1 a licensed importer, licensed manufacturer, or 2 licensed dealer as described in such section 3 922(t); and 4 (B) the information outlined in subpara-5 graph (A) of this paragraph, disaggregated 6 by— 7 (i) the State where the firearm was 8 recovered; and 9 (ii) the State where the firearm was 10 transferred as described in such section 11 922(t). 12 (c) R ULE OFINTERPRETATION.—A report under 13 subsection (a) shall be considered an annual statistical re-14 port and statistical aggregate data for purposes of the 15 sixth proviso under the heading ‘‘B UREAU OFALCOHOL, 16 T OBACCO, FIREARMS ANDEXPLOSIVES—SALARIES AND 17 E XPENSES’’ in the Department of Justice Appropriations 18 Act, 2012 (title II of division B of Public Law 112–55). 19 Æ VerDate Sep 11 2014 23:17 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H1740.IH H1740 ssavage on LAPJG3WLY3PROD with BILLS