HR 1740119th CongressIn Committee

Default Proceed Sale Transparency Act

Introduced: Feb 27, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Default Proceed Sale Transparency Act would tighten oversight over “default transfers”—gun transfers that proceed before a federal background check is completed. It requires federally licensed firearms importers, manufacturers, and dealers to report such transfers to the FBI within 24 hours, and directs the creation of a public online portal and hotline to support prioritization of these checks. The bill also adds prioritization for these background checks under the Brady Act, and prohibits destroying records about a transfer before the related background check is finished. In addition, it mandates annual public reports from the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) detailing the scale and outcomes of these default transfers, including where they occur, whether checks were completed, retrievability of firearms, and related enforcement data. The overarching goal is greater transparency and faster processing of default transfers, along with ongoing public accountability.

Key Points

1Prohibition on destruction of transfer records before the background check is completed.
2- The Brady Act amendments would ensure records tied to a proposed or completed default transfer are not destroyed until the check is finished.
3Reporting requirement for default transfers by licensees.
4- Licensed importers, manufacturers, or dealers who transfer a firearm in compliance with 18 U.S.C. 922(t)(1) but before a NICS background check yields a unique ID must report the transfer within 24 hours to the FBI; if a state/local agency is conducting the check, the FBI must send the report to that authority.
5Creation of a reporting system for default transfers.
6- Within 180 days after enactment, the Attorney General must create an online portal and a telephone hotline to collect necessary information for prioritizing background checks under the NICS system.
7Priority for completing background checks on default transfers.
8- The Brady Act would be amended to require the NICS process to prioritize completing checks for transfers that occur under 18 U.S.C. 922(t)(7).
9Annual public reporting on default transfers (FBI and ATF).
10- FBI: annual reports with detailed data on the number of default transfers, state-by-state counts, how many checks were completed, how many generated unique IDs, reasons a transfer/recipient might be prohibited, whether firearms were retrieved, and purges of records.
11- ATF: annual reports on average time to resolve these transfers, the number of firearms recovered or not recovered, and the geographic breakdown of recoveries (by recovery state and transfer state).
12Accountability timing.
13- First FBI/ATF annual reports are due within 300 days of enactment, with subsequent annual reports each year.

Impact Areas

Primary group/area affected- Federally licensed firearms importers, manufacturers, and dealers (FFLs) who engage in transfers that precede a completed background check.Secondary group/area affected- Federal and local law enforcement agencies (FBI and state/local authorities involved in checks), the ATF, and the general public who will access the annual transparency reports.Additional impacts- Changes to data retention practices (retaining more transfer records until background checks are completed).- Administrative and reporting burdens on FFLs to comply with 24-hour reporting and to use the new online portal/phone line.- Increased transparency around the occurrence and handling of default transfers, including geographic patterns and enforcement outcomes.NICS: National Instant Criminal Background Check System, the federal background check process used for firearm transfers.18 U.S.C. 922(t): Provisions governing background checks and the point at which a transfer may proceed if a check is not completed in a timely manner.Brady Handgun Violence Prevention Act (34 U.S.C. 40901): The statute governing NICS procedures and related oversight. The bill proposes adding new subsections to this law to prioritize checks and protect records.Unique identification number: A tracking ID the NICS system assigns to a background check; the bill addresses transfers that occur before such an ID is issued.

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