SECTION 1. SHORT TITLE.

    This Act may be cited as the ``NICS Denial Notification Act of 
2016''.

SEC. 2. REPORTING OF BACKGROUND CHECK DENIALS.

    (a) In General.--Chapter 44 of title 18, United States Code, is 
amended by inserting after section 925A the following:
``Sec. 925B. Reporting of background check denials to State authorities
    ``(a) If the national instant criminal background check system 
established under section 103 of the Brady Handgun Violence Prevention 
Act provides a notice pursuant to section 922(t) of this title that the 
receipt of a firearm by a person would violate subsection (g) or (n) of 
section 922 of this title or State law, the Attorney General shall, in 
accordance with subsection (b) of this section--
            ``(1) report to the law enforcement authorities of the 
        State where the person sought to acquire the firearm, and, if 
        different, the law enforcement authorities of the State of 
        residence of the person--
                    ``(A) that the notice was provided;
                    ``(B) of the specific provision of law that would 
                have been violated;
                    ``(C) of the date and time the notice was provided;
                    ``(D) of the location where the firearm was sought 
                to be acquired; and
                    ``(E) of the identity of the person; and
            ``(2) where practicable, report the incident to local law 
        enforcement authorities and State and local prosecutors in the 
        jurisdiction where the firearm was sought and in the 
        jurisdiction where the person resides.
    ``(b) A report is made in accordance with this subsection if the 
report is made within 24 hours after the provision of the notice 
described in subsection (a), except that the making of the report may 
be delayed for so long as is necessary to avoid compromising an ongoing 
investigation.
    ``(c) Subsection (a) shall not be interpreted to require a report 
with respect to a person to be made to the same State authorities that 
originally issued the notice with respect to the person.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 925A the 
following:

``925B. Reporting of background check denials to State authorities.''.

SEC. 3. STUDY OF BACKGROUND CHECK DENIALS; ANNUAL REPORT TO CONGRESS.

    (a) In General.--Chapter 44 of title 18, United States Code, as 
amended by section 2(a) of this Act, is amended by inserting after 
section 925B the following:
``Sec. 925C. Study of background check denials; annual report to 
              Congress
    ``(a) Not later than 1 year after the date of the enactment of this 
section, the Attorney General shall submit to the Congress a report 
detailing which categories of people prohibited by section 922(g) from 
receiving or possessing a firearm are most likely to engage in criminal 
activity.
    ``(b) Not later than 1 year after the date of the enactment of this 
section, and annually thereafter, the Attorney General shall submit to 
the Congress a report detailing the following:
            ``(1) The findings of any research identifying which people 
        who are denied a firearm pursuant to section 922(t) are most 
        likely to engage in criminal activity.
            ``(2) With respect to each category of persons prohibited 
        by section 922(g) from receiving or possessing a firearm who 
        are so denied a firearm--
                    ``(A) the number of cases referred to the Bureau of 
                Alcohol, Tobacco, Firearms and Explosives;
                    ``(B) the number of cases with respect to which an 
                investigation was opened by a field division of the 
                Bureau;
                    ``(C) the number of arrests made;
                    ``(D) the number of persons charged with a criminal 
                offense in connection with the denial; and
                    ``(E) the number of convictions obtained by Federal 
                authorities.
            ``(3) The number of background check notices reported to 
        State authorities pursuant to section 925B (including the 
        number of the notices that would have been so reported but for 
        section 925B(c)), along with an accounting of why any notice 
        described in such section was not so reported.
            ``(4) The number of background check notices reported to 
        local authorities pursuant to section 925B, along with an 
        accounting of the progress made in developing a system for 
        reporting the notices to local authorities.''.
    (b) Clerical Amendment.--The table of sections for such chapter, as 
amended by section 2(b) of this Act, is amended by inserting after the 
item relating to section 925B the following:

``925C. Study of background check denials; annual report to 
                            Congress.''.
NICS Denial Notification Act of 2016  This bill amends the federal criminal code to require the Department of Justice (DOJ) to report certain information to state and local law enforcement authorities following a determination, by the National Instant Criminal Background Check System, that a prospective firearm purchaser is a prohibited person (i.e., a person who is prohibited from receiving or possessing a firearm).  DOJ must report to Congress on the categories of prohibited persons who are most likely to engage in criminal activity. 
NICS Denial Notification Act of 2016