SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Gun Rights and Due 
Process Act''.

SEC. 2. DEFINITIONS RELATING TO MENTAL HEALTH.

    (a) Title 18 Definitions.--Chapter 44 of title 18, United States 
Code, is amended--
            (1) in section 921(a), by adding at the end the following:
            ``(36)(A) Subject to subparagraph (B), the term `has been 
        adjudicated mentally incompetent or has been committed to a 
        psychiatric hospital', with respect to a person--
                    ``(i) means the person is the subject of an order 
                or finding by a judicial officer or court--
                            ``(I) that was issued after a hearing--
                                    ``(aa) of which the person received 
                                actual notice; and
                                    ``(bb) at which the person had an 
                                opportunity to participate with 
                                counsel; and
                            ``(II) that found that the person, as a 
                        result of marked subnormal intelligence, mental 
                        impairment, mental illness, incompetency, 
                        condition, or disease--
                                    ``(aa) was guilty but mentally ill 
                                in a criminal case, in a jurisdiction 
                                that provides for such a verdict;
                                    ``(bb) was not guilty in a criminal 
                                case by reason of insanity or mental 
                                disease or defect;
                                    ``(cc) was incompetent to stand 
                                trial in a criminal case; or
                                    ``(dd) was not guilty by reason of 
                                lack of mental responsibility under 
                                section 850a of title 10 (article 50a 
                                of the Uniform Code of Military 
                                Justice); and
                    ``(ii) does not include--
                            ``(I) an admission to a psychiatric 
                        hospital for observation; or
                            ``(II) a voluntary admission to a 
                        psychiatric hospital.
            ``(B) In this paragraph, the term `order or finding' does 
        not include--
                    ``(i) an order or finding that has expired or has 
                been set aside or expunged;
                    ``(ii) an order or finding that is no longer 
                applicable because a judicial officer or court has 
                found that the person who is the subject of the order 
                or finding--
                            ``(I) does not present a danger to himself 
                        or herself or to others;
                            ``(II) has been restored to sanity or cured 
                        of mental disease or defect;
                            ``(III) has been restored to competency; or
                            ``(IV) no longer requires involuntary 
                        inpatient or outpatient treatment by a 
                        psychiatric hospital; or
                    ``(iii) an order or finding with respect to which 
                the person who is subject to the order or finding has 
                been granted relief from disabilities under section 
                925(c), under a program described in section 
                101(c)(2)(A) or 105 of the NICS Improvement Amendments 
                Act of 2007 (18 U.S.C. 922 note), or under any other 
                State-authorized relief from disabilities program of 
                the State in which the original commitment or 
                adjudication occurred.
            ``(37) The term `psychiatric hospital' includes a mental 
        health facility, a mental hospital, a sanitarium, or a 
        psychiatric facility, including a psychiatric ward in a general 
        hospital.''; and
            (2) in section 922--
                    (A) in subsection (d)(4)--
                            (i) by striking ``as a mental defective'' 
                        and inserting ``mentally incompetent''; and
                            (ii) by striking ``any mental institution'' 
                        and inserting ``a psychiatric hospital''; and
                    (B) in subsection (g)(4)--
                            (i) by striking ``as a mental defective or 
                        who has'' and inserting ``mentally incompetent 
                        or has''; and
                            (ii) by striking ``mental institution'' and 
                        inserting ``psychiatric hospital''.
    (b) Technical and Conforming Amendments.--The NICS Improvement 
Amendments Act of 2007 (18 U.S.C. 922 note) is amended--
            (1) by striking ``as a mental defective'' each place that 
        term appears and inserting ``mentally incompetent'';
            (2) by striking ``mental institution'' each place that term 
        appears and inserting ``psychiatric hospital'';
            (3) in section 101(c)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``to the mental health of 
                a person'' and inserting ``to whether a person is 
                mentally incompetent''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)(i), by striking 
                        ``to the mental health of a person'' and 
                        inserting ``to whether a person is mentally 
                        incompetent''; and
                            (ii) in subparagraph (B), by striking ``to 
                        the mental health of a person'' and inserting 
                        ``to whether a person is mentally 
                        incompetent''; and
            (4) in section 102(c)(3)--
                    (A) in the paragraph heading, by striking ``as a 
                mental defective or committed to a mental institution'' 
                and inserting ``as mentally incompetent or committed to 
                a mental institution''; and
                    (B) by striking ``mental institutions'' and 
                inserting ``psychiatric hospitals''.

SEC. 3. PROTECTING THE SECOND AMENDMENT RIGHTS OF VETERANS.

    (a) Definition.--In this section, the term ``covered veteran'' 
means a person who, on the day before the date of enactment of this 
Act, is considered to have been adjudicated as a mental defective or 
committed to a mental institution under subsection (d)(4) or (g)(4) of 
section 922 of title 18, United States Code, as a result of having been 
found by the Department of Veterans Affairs to be mentally incompetent.
    (b) Review.--The Secretary of Veterans Affairs shall--
            (1) not later than 90 days after the date of enactment of 
        this Act, conduct a review relating to each covered veteran to 
        determine whether the proceedings for the adjudication or 
        commitment of the covered veteran were conducted in accordance 
        with, and resulted in an order or finding described in, section 
        921(a)(36) of title 18, United States Code, as added by this 
        Act; and
            (2) unless the Secretary certifies that the proceedings 
        were conducted in accordance with, and resulted in an order or 
        finding described in, section 921(a)(36) of title 18, United 
        States Code, as added by this Act, ensure that the records of 
        the covered veteran used for purposes of any determination of 
        whether the covered veteran is disqualified from possessing or 
        receiving a firearm under subsection (g) or (n) of section 922 
        of title 18, United States Code, are modified to indicate that 
        the covered veteran has not been adjudicated mentally 
        incompetent or committed to a psychiatric hospital.
    (c) Enforcement.--
            (1) Identification of inaccurate records.--Not later than 
        January 1 of each year, the Attorney General shall--
                    (A) review the record of each person who is 
                considered to have been adjudicated mentally 
                incompetent or committed to a psychiatric hospital 
                under subsection (d)(4) or (g)(4) of section 922 of 
                title 18, United States Code, as a result of having 
                been found by the Department of Veterans Affairs to be 
                mentally incompetent;
                    (B) identify each such record that does not include 
                documentation indicating that the proceedings for the 
                adjudication or commitment were conducted in accordance 
                with, and resulted in an order or finding described in, 
                section 921(a)(36) of title 18, United States Code, as 
                added by this Act; and
                    (C) submit to the Secretary of the Treasury and 
                Congress a report providing the number of records 
                identified under subparagraph (B).
            (2) Rescission.--Effective on the date on which the 
        Attorney General submits a report under paragraph (1)(C), there 
        is rescinded from the unobligated balances in the 
        appropriations account appropriated under the heading ``general 
        administration'' under the heading ``Departmental 
        Administration'' under the heading ``DEPARTMENT OF VETERANS 
        AFFAIRS'' the amount equal to the product of--
                    (A) the number of records that the report states 
                were identified by the Attorney General under paragraph 
                (1)(B); and
                    (B) $10,000.
    (d) Appointment of Fiduciaries.--
            (1) In general.--Chapter 55 of title 38, United States 
        Code, is amended by adding at the end the following:
``Sec. 5511. Use of determinations to appoint fiduciaries
    ``No determination by the Secretary that benefits under this title 
to which an individual is entitled shall be paid to a fiduciary shall 
be considered to be a determination that the individual has been 
adjudicated mentally incompetent for purposes of subsections (d)(4) and 
(g)(4) of section 922 of title 18.''.
            (2) Clerical amendment.--The table of sections for chapter 
        55 of title 38, United States Code, is amended by adding at the 
        end the following:

``5511. Use of determinations to appoint fiduciaries.''.

SEC. 4. USE OF DETERMINATIONS MADE BY THE COMMISSIONER OF SOCIAL 
              SECURITY.

    (a) Title II.--Section 205(j) of the Social Security Act (42 U.S.C. 
405(j)) is amended by adding at the end the following:
    ``(11) No determination by the Commissioner of Social Security with 
respect to an individual, including a determination that benefits under 
this title to which such individual is entitled shall be paid to a 
representative payee, shall be considered to be a determination that 
the individual has been adjudicated mentally incompetent for purposes 
of subsections (d)(4) and (g)(4) of section 922 of title 18, United 
States Code.''.
    (b) Title XVI.--Section 1631(a)(2) of such Act (42 U.S.C. 
1383(a)(2)) is amended by adding at the end the following:
    ``(J) No determination by the Commissioner of Social Security with 
respect to an individual, including a determination that benefits under 
this title to which such individual is entitled shall be paid to a 
representative payee, shall be considered to be a determination that 
the individual has been adjudicated mentally incompetent for purposes 
of subsections (d)(4) and (g)(4) of section 922 of title 18, United 
States Code.''.
    (c) Enforcement.--
            (1) Identification of inaccurate records.--Not later than 
        January 1 of each year, the Attorney General shall--
                    (A) review the record of each person who is 
                considered to have been adjudicated mentally 
                incompetent or committed to a psychiatric hospital 
                under subsection (d)(4) or (g)(4) of section 922 of 
                title 18, United States Code, as a result of a 
                determination by the Commissioner of Social Security;
                    (B) identify each such record that does not include 
                documentation indicating that the proceedings for the 
                adjudication or commitment were conducted in accordance 
                with, and resulted in an order or finding described in, 
                section 921(a)(36) of title 18, United States Code, as 
                added by this Act; and
                    (C) submit to the Secretary of the Treasury and 
                Congress a report providing the number of records 
                identified under subparagraph (B).
            (2) Rescission.--
                    (A) In general.--Effective on the date on which the 
                Attorney General submits a report under paragraph 
                (1)(C), there is rescinded from the unobligated 
                balances in the Federal Old-Age and Survivors Insurance 
                Trust Fund, the Federal Disability Insurance Trust 
                Fund, the Federal Hospital Insurance Trust Fund, and 
                the Federal Supplementary Medical Insurance Trust Fund, 
                on a pro rata basis, the amount equal to the product 
                of--
                            (i) the number of records that the report 
                        states were identified by the Attorney General 
                        under paragraph (1)(B); and
                            (ii) $10,000.
                    (B) Treatment of amounts.--Amounts rescinded under 
                subparagraph (A) shall be deemed to have been expended 
                for costs described in section 201(g)(1) of the Social 
                Security Act (42 U.S.C. 401(g)(1)).

SEC. 5. STATE HEALTH REPORTS.

    Section 102(c)(3) of the NICS Improvement Amendments Act of 2007 
(18 U.S.C. 922 note) is amended by adding at the end the following: ``A 
report made available by a State indicating that a person has been 
adjudicated as mentally incompetent or committed to a mental 
institution shall not be used for purposes of any determination of 
whether a person is disqualified from possessing or receiving a firearm 
under subsection (g) or (n) of section 922 of title 18, United States 
Code, unless the Attorney General determines that the proceedings for 
the adjudication or commitment were conducted in accordance with, and 
resulted in an order or finding described in, section 921(a)(36) of 
title 18, United States Code, and that the State has provided clear and 
convincing evidence that the person poses a significant danger.''.

SEC. 6. APPLICABILITY OF AMENDMENTS.

    With respect to any record of a person prohibited from possessing 
or receiving a firearm under subsection (d)(4) or (g)(4) of section 922 
of title 18, United States Code, before the date of enactment of this 
Act, the Attorney General shall remove such a record from the National 
Instant Criminal Background Check System--
            (1) upon being made aware that the person is no longer 
        considered as adjudicated mentally incompetent or committed to 
        a psychiatric hospital according to the criteria under 
        paragraph (36)(A)(i)(II) of section 921(a) of title 18, United 
        States Code (as added by this Act), and is therefore no longer 
        prohibited from possessing or receiving a firearm;
            (2) upon being made aware that any order or finding that 
        the record is based on is an order or finding described in 
        paragraph (36)(B) of section 921(a) of title 18, United States 
        Code (as added by this Act); or
            (3) upon being made aware that the person has been found 
        competent to possess a firearm after an administrative or 
        judicial review under subsection (c) or (d) of section 5511 of 
        title 38, United States Code (as added by this Act).
Protecting Gun Rights and Due Process Act This bill amends the federal criminal code and other laws to raise the threshold that must be met&nbsp;with respect to&nbsp;disqualifying&nbsp;an individual, for reasons relating to mental health,&nbsp;from&nbsp;possessing or receiving&nbsp;a firearm. Specifically, such an individual must have been either adjudicated mentally incompetent or committed to a psychiatric hospital. In addition, the bill excludes, for purposes of a determination of whether an individual is disqualified from possessing or receiving a firearm: (1)&nbsp;certain state health reports, and (2) specified determinations made by the Department of Veterans Affairs or the&nbsp;Social Security Administration.
Protecting Gun Rights and Due Process Act