I 

118TH CONGRESS 

1ST SESSION H. R. 817 

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. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 2, 2023 

Mr. SCHNEIDER (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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Default Proceed Sale 

5 Transparency Act’’. 


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1 SEC. 2. IMPROVEMENT OF NICS PROCEDURES IN THE CASE 

2 OF DEFAULT FIREARM TRANSFERS. 

3 (a) REQUIREMENT THAT FEDERALLY LICENSED

4 FIREARM IMPORTERS, MANUFACTURERS, AND DEALERS

5 REPORT DEFAULT FIREARM TRANSFERS.— 

6 (1) IN GENERAL.—Section 922(t) of title 18, 

7 United States Code, is amended by adding at the 

8 end the following: 

9 ‘‘(7) A licensed importer, licensed manufacturer, or 

10 licensed dealer who transfers a firearm in compliance with 

11 paragraph (1), but before the national instant criminal 

12 background check system provides the licensee with a 

13 unique identification number, shall report the transfer to 

14 the Federal Bureau of Investigation within 24 hours. If 

15 a State or local law enforcement authority is conducting 

16 the related background check, the Federal Bureau of In17 vestigation shall transmit the report to that authority.’’. 

18 (2) CREATION OF ONLINE PORTAL AND TELE19 PHONE HOTLINE.—Within 180 days after the date 

20 of the enactment of this Act, the Attorney General 

21 shall create an online portal and telephone hotline, 

22 that are to be used exclusively for the purpose of re23 porting sufficient information to allow the Federal 

24 Bureau of Investigation to prioritize background 

25 checks in accordance with section 40901 of title 34, 

26 United States Code. 


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•HR 817 IH

1 (b) PRIORITIZATION OF NICS BACKGROUND CHECKS

2 RELATING TO DEFAULT FIREARM TRANSFERS.—Section 

3 103 of the Brady Handgun Violence Prevention Act (34 

4 U.S.C. 40901) is amended by adding at the end the fol5 lowing: 

6 ‘‘(m) PRIORITIZATION OF BACKGROUND CHECKS RE7 LATED TO DEFAULT FIREARM TRANSFERS.—In the case 

8 of a transfer referred to in section 922(t)(7) of title 18, 

9 United States Code, the system established under this sec10 tion shall give priority to completing the background check 

11 relating to the transfer.’’. 

12 (c) PROHIBITION ON DESTRUCTION OF RECORDS

13 RELATING TO FIREARM TRANSFER BEFORE COMPLETION

14 OF BACKGROUND CHECK.—Section 103 of the Brady 

15 Handgun Violence Prevention Act (34 U.S.C. 40901), as 

16 amended by subsection (b) of this section, is amended by 

17 adding at the end the following: 

18 ‘‘(n) PROHIBITION ON DESTRUCTION OF RECORDS

19 RELATING TO FIREARM TRANSFER BEFORE COMPLETION

20 OF RELATED BACKGROUND CHECK.—The system estab21 lished under this section may not destroy any records of 

22 the system relating to a proposed or completed firearm 

23 transfer, before completion of the criminal background 

24 check with respect to the prospective or actual trans25 feree.’’. 


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•HR 817 IH

1 SEC. 3. ANNUAL REPORTS ON DEFAULT FIREARM TRANS2 FERS. 

3 (a) IN GENERAL.—Within 300 days after the date 

4 of the enactment of this Act and annually thereafter, the 

5 Director of the Federal Bureau of Investigation shall 

6 make accessible to the public a written report on— 

7 (1) the number of firearms transferred as de8 scribed in section 922(t)(7) of title 18, United 

9 States Code, during the period covered by the re10 port, disaggregated by State; 

11 (2) the number of the firearms described in 

12 paragraph (1) of this subsection with respect to 

13 which the national instant criminal background 

14 check system established under section 103 of the 

15 Brady Handgun Violence Prevention Act completed 

16 the background check; 

17 (3) of the number described by paragraph (2) 

18 of this subsection— 

19 (A) the number with respect to which the 

20 system provided the unique identification num21 ber under subparagraph (B)(i) or (C)(i) of sec22 tion 922(t)(1) of such title; 

23 (B) the number with respect to which in24 formation available to the system demonstrated 

25 that transfer of a firearm to, or receipt of a 

26 firearm by, the transferee would violate subVerDate Sep 11 2014 22:33 Feb 27, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H817.IH H817

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1 section (d), (g), or (n) of section 922 of such 

2 title or State, local, or tribal law; and 

3 (C) in each case described by subpara4 graph (B) of this paragraph, the reason for in5 dicating that the receipt would be a violation re6 ferred to in such subparagraph (B), including 

7 any specific prohibiting criteria that would bar 

8 the transferee from receipt of a firearm or a li9 censee from transferring a firearm; 

10 (4) of the number described by paragraph 

11 (3)(B) of this subsection, the number of firearms 

12 that were retrieved from the transferee, and the 

13 number of firearms that were not retrieved from the 

14 transferee, with each number disaggregated by the 

15 field division of the Bureau of Alcohol, Tobacco, 

16 Firearms and Explosives and the State involved; 

17 (5) in the case of the first report under this 

18 section, the number of requests for criminal back19 ground checks received by the system in the pre20 ceding 5 years the records of which were purged 

21 from the system without resolution; and 

22 (6) the number of licensed importers, licensed 

23 manufacturers, or licensed dealers who transferred 

24 firearms as described in section 922(t)(7) of such 


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1 title during the period covered by the report, 

2 disaggregated by the State of sale. 

3 (b) IN GENERAL.—Within 300 days after the date 

4 of the enactment of this Act and annually thereafter, the 

5 Director of the Bureau of Alcohol, Tobacco, Firearms and 

6 Explosives shall make accessible to the public a written 

7 report on— 

8 (1) the average time between receipt and recov9 ery of a firearm transferred as described in section 

10 922(t)(7) of title 18, United States Code, during the 

11 period covered by the report, where the transfer to, 

12 or receipt by, the transferee violated subsection (d), 

13 (g), or (n) of section 922 of such title or State, local, 

14 or tribal law; 

15 (2) the number of firearms transferred as de16 scribed in such section 922(t)(7) during the period 

17 covered by the report, that were recovered as part of 

18 a criminal investigation, where receipt by the trans19 feree violated such subsection (d), (g), or (n) or 

20 State, local, or tribal law, disaggregated by State; 

21 and 

22 (3) of the number described by paragraph (2) 

23 of this subsection— 

24 (A) the total number of firearms that were 

25 recovered by law enforcement in States other 


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1 than the State the firearm was transferred by 

2 a licensed importer, licensed manufacturer, or 

3 licensed dealer as described in such section 

4 922(t); and 

5 (B) the information outlined in subpara6 graph (A) of this paragraph, disaggregated 

7 by— 

8 (i) the State where the firearm was 

9 recovered; and 

10 (ii) the State where the firearm was 

11 transferred as described in such section 

12 922(t). 

13 (c) RULE OF INTERPRETATION.—A report under 

14 subsection (a) shall be considered an annual statistical re15 port and statistical aggregate data for purposes of the 

16 sixth proviso under the heading ‘‘BUREAU OF ALCOHOL, 

17 TOBACCO, FIREARMS AND EXPLOSIVES—SALARIES AND

18 EXPENSES’’ in the Department of Justice Appropriations 

19 Act, 2012 (title II of division B of Public Law 112–55). 

Æ 


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