Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB884 Compare Versions

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11 II
22 119THCONGRESS
33 1
44 STSESSION S. 884
55 To amend the Internal Revenue Code of 1986 to require the Bureau of
66 Alcohol, Tobacco, Firearms, and Explosives to establish an administrative
77 relief process for individuals whose applications for transfer and registra-
88 tion of a firearm were denied, and for other purposes.
99 IN THE SENATE OF THE UNITED STATES
1010 MARCH6, 2025
1111 Mr. R
1212 ISCH(for himself, Mr. DAINES, Mr. LANKFORD, Mr. CRAPO, Mrs.
1313 H
1414 YDE-SMITH, Ms. LUMMIS, Mr. SHEEHY, and Mr. MARSHALL) intro-
1515 duced the following bill; which was read twice and referred to the Com-
1616 mittee on the Judiciary
1717 A BILL
1818 To amend the Internal Revenue Code of 1986 to require
1919 the Bureau of Alcohol, Tobacco, Firearms, and Explo-
2020 sives to establish an administrative relief process for
2121 individuals whose applications for transfer and registra-
2222 tion of a firearm were denied, and for other purposes.
2323 Be it enacted by the Senate and House of Representa-1
2424 tives of the United States of America in Congress assembled, 2
2525 SECTION 1. SHORT TITLE. 3
2626 This Act may be cited as the ‘‘ATF Transparency 4
2727 Act’’. 5
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3131 SEC. 2. ADMINISTRATIVE RELIEF FOR DENIAL OF FIREARM 1
3232 TRANSFER APPLICATION. 2
3333 (a) I
3434 NGENERAL.—Section 5812 of the Internal Rev-3
3535 enue Code of 1986 is amended by adding at the end the 4
3636 following new subsection: 5
3737 ‘‘(c) A
3838 DMINISTRATIVERELIEF.— 6
3939 ‘‘(1) I
4040 N GENERAL.—With respect to any appli-7
4141 cation described in subsection (a) for the transfer 8
4242 and registration of a firearm which is denied by the 9
4343 Secretary based on a determination that transferring 10
4444 the firearm to the transferee would violate sub-11
4545 section (d) of section 922 of title 18, United States 12
4646 Code, or receipt of the firearm by the transferee 13
4747 would violate subsection (g) or (n) of that section or 14
4848 State, local, or tribal law, the Secretary shall— 15
4949 ‘‘(A) provide the transferee with the rel-16
5050 evant NICS transaction number with respect to 17
5151 such application, 18
5252 ‘‘(B) permit such transferee to appeal such 19
5353 denial to the Secretary in a manner similar to 20
5454 the process for appeals provided under section 21
5555 25.10 of title 28, Code of Federal Regulations, 22
5656 and 23
5757 ‘‘(C) permit such transferee to provide in-24
5858 formation to the Secretary to prevent any sub-25
5959 sequent erroneous denial or extended delay by 26
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6363 NICS pursuant to a program (as established by 1
6464 the Secretary) similar to the Voluntary Appeal 2
6565 File program described in section 25.10(g) of 3
6666 title 28, Code of Federal Regulations. 4
6767 ‘‘(2) A
6868 TTORNEY FEES.—In the case of any suc-5
6969 cessful appeal by the transferee pursuant to the 6
7070 process described in paragraph (1)(B), the Secretary 7
7171 shall reimburse the transferee for any reasonable 8
7272 and necessary attorney fees incurred with respect to 9
7373 such appeal. 10
7474 ‘‘(3) NICS.—For purposes of this subsection, 11
7575 the term ‘NICS’ means the national instant criminal 12
7676 background check system established under section 13
7777 103 of the Brady Handgun Violence Prevention Act 14
7878 (34 U.S.C. 40901).’’. 15
7979 (b) E
8080 FFECTIVEDATE.—The amendment made by 16
8181 this section shall apply to applications for the transfer and 17
8282 registration of a firearm which are filed or pending on or 18
8383 after the date of enactment of this Act. 19
8484 SEC. 3. TIMELY PROCESSING OF APPLICATIONS. 20
8585 (a) T
8686 RANSFER OFFIREARMS.—Section 5812 of the 21
8787 Internal Revenue Code of 1986, as amended by section 22
8888 2, is amended by adding at the end the following new sub-23
8989 section: 24
9090 ‘‘(d) P
9191 ROCESSING OFAPPLICATIONS.— 25
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9595 ‘‘(1) IN GENERAL.—Notwithstanding subsection 1
9696 (a), if an application described in such subsection 2
9797 with respect to the transfer and registration of a 3
9898 firearm has been filed with the Secretary and the 4
9999 Secretary fails to make a determination regarding 5
100100 whether to approve or deny such application prior to 6
101101 the date which is 3 business days after the date on 7
102102 which such application was originally filed by the 8
103103 transferor, the transfer and registration of such fire-9
104104 arm to the transferee shall be deemed to have been 10
105105 approved by the Secretary for purposes of this sec-11
106106 tion and such transfer may be made. The Secretary 12
107107 shall only deny an application described in sub-13
108108 section (a) on the grounds that the applicable re-14
109109 quirements under such subsection have not been sat-15
110110 isfied, and may not deny an application solely on the 16
111111 grounds that a determination regarding whether to 17
112112 approve or deny such application could not be com-18
113113 pleted by the Secretary during the period described 19
114114 in the preceding sentence. 20
115115 ‘‘(2) S
116116 AFE HARBOR.— 21
117117 ‘‘(A) I
118118 N GENERAL.—In the case of an ap-22
119119 plication described in subsection (a) which, fol-23
120120 lowing the expiration of the 3-day period under 24
121121 paragraph (1), has been deemed to have been 25
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125125 approved by the Secretary for purposes of this 1
126126 section and for which the transfer of the fire-2
127127 arm has been made, if the Secretary subse-3
128128 quently determines that the applicable require-4
129129 ments under such subsection have not been sat-5
130130 isfied and that such application should have 6
131131 been denied, the Secretary shall provide actual 7
132132 notice of such determination to the transferor 8
133133 and transferee of such firearm. 9
134134 ‘‘(B) C
135135 RIMINAL LIABILITY.—In the case of 10
136136 a determination described in subparagraph (A) 11
137137 that an application for transfer and registration 12
138138 of a firearm should have been denied— 13
139139 ‘‘(i) the transferor may not be held 14
140140 liable for any violation of subsection (d) of 15
141141 section 922 of title 18, United States 16
142142 Code, and 17
143143 ‘‘(ii) the transferee may not be held 18
144144 liable for any violation of subsection (g) or 19
145145 (n) of section 922 of title 18, United 20
146146 States Code, provided that the transferee 21
147147 returns the firearm to the Secretary within 22
148148 the 14-day period subsequent to the date 23
149149 on which the transferee received notice 24
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153153 from the Secretary regarding such deter-1
154154 mination.’’. 2
155155 (b) M
156156 AKING OFFIREARMS.—Section 5822 of the In-3
157157 ternal Revenue Code of 1986 is amended by adding at the 4
158158 end the following: ‘‘Notwithstanding the preceding sen-5
159159 tences, if a person files an application to make and reg-6
160160 ister a firearm with the Secretary and the Secretary fails 7
161161 to make a determination regarding whether to approve or 8
162162 deny such application prior to the date which is 3 business 9
163163 days after the date on which such application was origi-10
164164 nally filed by such person, such application shall be 11
165165 deemed to have been approved by the Secretary for pur-12
166166 poses of this section and such firearm may be made by 13
167167 such person. The Secretary shall only deny an application 14
168168 to make and register a firearm on the grounds that the 15
169169 applicable requirements under this section have not been 16
170170 satisfied, and may not deny an application solely on the 17
171171 grounds that a determination regarding whether to ap-18
172172 prove or deny such application could not be completed by 19
173173 the Secretary during the period described in the preceding 20
174174 sentence.’’. 21
175175 (c) E
176176 FFECTIVEDATE.—The amendments made by 22
177177 this section shall apply to applications which are filed or 23
178178 pending on or after the date of enactment of this Act. 24
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182182 SEC. 4. REPORTS AND AGREEMENTS. 1
183183 (a) U
184184 NRESOLVEDNICS CHECKS.—Not later than 2
185185 180 days after the date of enactment of this Act, the 3
186186 Comptroller General of the United States, in conjunction 4
187187 with the Inspector General of the Department of Justice, 5
188188 shall submit a report to Congress— 6
189189 (1) detailing the number of NICS inquiries re-7
190190 ceived during the period of calendar years 2010 8
191191 through 2024 with respect to the transfer of a fire-9
192192 arm which remained unresolved following the expira-10
193193 tion of the 90-day period described in section 11
194194 25.9(b)(1) of title 28, Code of Federal Regulations; 12
195195 and 13
196196 (2) providing recommendations for administra-14
197197 tive actions to be adopted by the Bureau of Alcohol, 15
198198 Tobacco, Firearms, and Explosives to minimize the 16
199199 number of unresolved NICS inquiries described in 17
200200 paragraph (1). 18
201201 (b) A
202202 DMINISTRATION OF NICS CHECKS.—Not later 19
203203 than 180 days after the date of enactment of this Act, 20
204204 the Inspector General of the Department of Justice shall 21
205205 submit a report to Congress regarding the percentage of 22
206206 NICS inquiries during the period of calendar years 2014 23
207207 through 2024 with respect to the transfer of a firearm 24
208208 which were administered by the Federal Bureau of Inves-25
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212212 tigation on behalf of the Bureau of Alcohol, Tobacco, Fire-1
213213 arms, and Explosives. 2
214214 (c) M
215215 EMORANDUM OF UNDERSTANDING.—Not later 3
216216 than 180 days after the date of enactment of this Act, 4
217217 the Director of the Bureau of Alcohol, Tobacco, Firearms, 5
218218 and Explosives and the Director of the Federal Bureau 6
219219 of Investigation shall enter into a memorandum of under-7
220220 standing regarding the administration and processing of 8
221221 NICS inquiries with respect to the transfer of firearms. 9
222222 (d) D
223223 EFINITIONS.—In this section— 10
224224 (1) F
225225 IREARM.—The term ‘‘firearm’’ has the 11
226226 same meaning given such term under section 12
227227 5845(a) of the Internal Revenue Code of 1986. 13
228228 (2) NICS.—The term ‘‘NICS’’ means the na-14
229229 tional instant criminal background check system es-15
230230 tablished under section 103 of the Brady Handgun 16
231231 Violence Prevention Act (34 U.S.C. 40901). 17
232232 Æ
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