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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 436 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 436

 To ensure that all individuals who should be prohibited from buying a 
 firearm are listed in the national instant criminal background check 
     system and require a background check for every firearm sale.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 2, 2011

Mr. Schumer (for himself and Mrs. Gillibrand) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL

 
 To ensure that all individuals who should be prohibited from buying a 
 firearm are listed in the national instant criminal background check 
     system and require a background check for every firearm sale.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fix Gun Checks Act 
of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
 TITLE I--ENSURING THAT ALL INDIVIDUALS WHO SHOULD BE PROHIBITED FROM 
  BUYING A GUN ARE LISTED IN THE NATIONAL INSTANT CRIMINAL BACKGROUND 
                              CHECK SYSTEM

Sec. 101. Penalties for States that do not make data electronically 
                            available to the National Instant Criminal 
                            Background Check System.
Sec. 102. Requirement that Federal agencies certify that they have 
                            submitted to the National Instant Criminal 
                            Background Check System all records 
                            identifying persons prohibited from 
                            purchasing firearms under Federal law.
Sec. 103. Adjudicated as a mental defective; mental health assessment 
                            plan.
Sec. 104. Clarification of the definition of drug abusers and drug 
                            addicts who are prohibited from possessing 
                            firearms.
     TITLE II--REQUIRING A BACKGROUND CHECK FOR EVERY FIREARM SALE

Sec. 201. Purpose.
Sec. 202. Firearms transfers.
Sec. 203. Effective date.

 TITLE I--ENSURING THAT ALL INDIVIDUALS WHO SHOULD BE PROHIBITED FROM 
  BUYING A GUN ARE LISTED IN THE NATIONAL INSTANT CRIMINAL BACKGROUND 
                              CHECK SYSTEM

SEC. 101. PENALTIES FOR STATES THAT DO NOT MAKE DATA ELECTRONICALLY 
              AVAILABLE TO THE NATIONAL INSTANT CRIMINAL BACKGROUND 
              CHECK SYSTEM.

    Section 104(b) of the NICS Improvement Amendments Act of 2007 (18 
U.S.C. 922 note) is amended to read as follows:
    ``(b) Penalties.--
            ``(1) Discretionary reduction.--For each of fiscal years 
        2011 and 2012, the Attorney General may withhold not more than 
        3 percent of the amount that would otherwise be allocated to a 
        State under section 505 of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3755) if the State provides less 
        than 50 percent of the records required to be provided under 
        sections 102 and 103.
            ``(2) Mandatory reduction.--
                    ``(A) Fiscal years 2013 to 2017.--For each of 
                fiscal years 2013 through 2017, the Attorney General 
                shall withhold 15 percent of the amount that would 
                otherwise be allocated to a State under section 505 of 
                the Omnibus Crime Control and Safe Streets Act of 1968 
                (42 U.S.C. 3755) if the State provides less than 75 
                percent of the records required to be provided under 
                sections 102 and 103.
                    ``(B) Subsequent years.--During fiscal year 2018, 
                and each fiscal year thereafter, the Attorney General 
                shall withhold 25 percent of the amount that would 
                otherwise be allocated to a State under section 505 of 
                the Omnibus Crime Control and Safe Streets Act of 1968 
                (42 U.S.C. 3755), if the State provides less than 90 
                percent of the records required to be provided under 
                sections 102 and 103.
            ``(3) Waiver by attorney general.--If a State provides 
        substantial evidence, as determined by the Attorney General, 
        that the State is making a reasonable effort to comply with the 
        requirements of sections 102 and 103, including an inability to 
        comply due to court order or other legal restriction, the 
        Attorney General may reduce the percentage of the amount that 
        would otherwise be allocated to a State under section 505 of 
        the Omnibus Crime Control and Safe Streets Act of 1968 (42 
        U.S.C. 3755) withheld--
                    ``(A) under paragraph (2)(A) to be not less than 5 
                percent; and
                    ``(B) under paragraph (2)(B) to be not less than 15 
                percent.
            ``(4) Transfer of withheld funds.--Any funds withheld by 
        the Attorney General under this subsection shall be transferred 
        to the appropriations account appropriated under the heading 
        `state and local law enforcement assistance' under the heading 
        `Office of Justice Programs' under the heading `DEPARTMENT OF 
        JUSTICE'.
            ``(5) Sense of congress.--It is the sense of Congress that 
        any funds transferred under paragraph (4) should be used to 
        carry out the activities described in the NICS Improvement 
        Amendments Act of 2007 (18 U.S.C. 922 note).''.

SEC. 102. REQUIREMENT THAT FEDERAL AGENCIES CERTIFY THAT THEY HAVE 
              SUBMITTED TO THE NATIONAL INSTANT CRIMINAL BACKGROUND 
              CHECK SYSTEM ALL RECORDS IDENTIFYING PERSONS PROHIBITED 
              FROM PURCHASING FIREARMS UNDER FEDERAL LAW.

    Section 103(e)(1) of the Brady Handgun Violence Prevention Act (18 
U.S.C. 922 note) is amended by adding at the end the following:
                    ``(F) Semiannual certification and reporting.--
                            ``(i) In general.--The head of each Federal 
                        department or agency shall submit to the 
                        Attorney General a written certification 
                        indicating whether the department or agency has 
                        provided to the Attorney General the pertinent 
                        information contained in any record of any 
                        person that the department or agency was in 
                        possession of during the time period addressed 
                        by the report demonstrating that the person 
                        falls within a category described in subsection 
                        (g) or (n) of section 922 of title 18, United 
                        States Code.
                            ``(ii) Submission dates.--The head of a 
                        Federal department or agency shall submit a 
                        certification under clause (i)--
                                    ``(I) not later than July 31 of 
                                each year, which shall address any 
                                record the department or agency was in 
                                possession of during the period 
                                beginning on January 1 of the year and 
                                ending on June 30 of the year; and
                                    ``(II) not later than January 31 of 
                                each year, which shall address any 
                                record the department or agency was in 
                                possession of during the period 
                                beginning on July 1 of the previous 
                                year and ending on December 31 of the 
                                previous year.
                            ``(iii) Contents.--A certification required 
                        under clause (i) shall state, for the 
                        applicable period--
                                    ``(I) the number of records of the 
                                Federal department or agency 
                                demonstrating that a person fell within 
                                each of the categories described in 
                                section 922(g) of title 18, United 
                                States Code;
                                    ``(II) the number of records of the 
                                Federal department or agency 
                                demonstrating that a person fell within 
                                the category described in section 
                                922(n) of title 18, United States Code; 
                                and
                                    ``(III) for each category of 
                                records described in subclauses (I) and 
                                (II), the total number of records of 
                                the Federal department or agency that 
                                have been provided to the Attorney 
                                General.''.

SEC. 103. ADJUDICATED AS A MENTAL DEFECTIVE; MENTAL HEALTH ASSESSMENT 
              PLAN.

    (a) Definition.--Section 921(a) of title 18, United States Code, is 
amended by adding at the end the following:
            ``(36) The term `adjudicated as a mental defective' 
        includes an order by a court, board, commission, or other 
        lawful authority that a person, in response to marked subnormal 
        intelligence, mental illness or incompetency, be compelled to 
        receive services--
                    ``(A) including counseling, medication, or testing 
                to determine compliance with prescribed medications; 
                and
                    ``(B) not including testing for use of alcohol or 
                for abuse of any controlled substance or other drug.''.
    (b) Mental Health Assessment Plan for Institutions of Higher 
Education.--Part B of title I of the Higher Education Act of 1965 (20 
U.S.C. 1011 et seq.) is amended by adding at the end the following:

``SEC. 124. MENTAL HEALTH ASSESSMENT PLAN FOR INSTITUTIONS OF HIGHER 
              EDUCATION.

    ``(a) Restriction on Eligibility.--Each college, university, or 
postsecondary institution that receives Federal funds under this Act or 
any form of financial assistance under any Federal program, including 
participation in any federally funded or guaranteed student loan 
program, shall develop and implement, not later than 1 year from the 
date of enactment of this section, a mental health assessment plan 
that, at a minimum, includes--
            ``(1) a framework through which such college, university, 
        or postsecondary institution will address the risks posed by 
        students, including full-time students and part-time students, 
        who, as a result of apparent mental illness or incompetency, 
        pose a safety risk to themselves or others;
            ``(2) the establishment of a team that will assess the 
        mental health needs of, and safety risks posed by, any such 
        student, consisting of--
                    ``(A) educators;
                    ``(B) administrators;
                    ``(C) counselors; or
                    ``(D) other qualified members of the educational 
                community;
            ``(3) a procedure for reporting such students to the team 
        described in paragraph (2);
            ``(4) a procedure for making voluntary referrals for such 
        students to on- and off-campus mental health resources;
            ``(5) a procedure for making involuntary referrals for such 
        students to State or local mental health authorities for 
        mandatory evaluation, which shall include reporting such 
        referrals to a State agency responsible for identifying persons 
        described in section 922(g)(4) of title 18, United States Code; 
        and
            ``(6) a procedure for informing and educating the families 
        of students who have been identified as posing safety risks to 
        themselves or others.
    ``(b) Information Availability.--Each college, university, or 
postsecondary institution that provides the plan described in 
subsection (a) shall make available to the students, faculty, and staff 
at such college, university, or postsecondary institution, a copy of 
the mental health assessment plan required under subsection (a).''.

SEC. 104. CLARIFICATION OF THE DEFINITION OF DRUG ABUSERS AND DRUG 
              ADDICTS WHO ARE PROHIBITED FROM POSSESSING FIREARMS.

    (a) Inferences of Abuse.--Section 921 of title 18, United States 
Code, is amended by adding at the end the following:
    ``(c) Unlawful User of Any Controlled Substance.--
            ``(1) In general.--An inference that a person is an 
        unlawful user of a controlled substance (as defined in section 
        102 of the Controlled Substances Act (21 U.S.C. 802)) may be 
        drawn based on--
                    ``(A) a conviction for the use or possession of a 
                controlled substance within the past 5 years;
                    ``(B) an arrest for the use or possession of a 
                controlled substance within the past 5 years;
                    ``(C) an arrest for the possession of drug 
                paraphernalia within the past 5 years, if testing has 
                demonstrated the paraphernalia contained traces of a 
                controlled substance;
                    ``(D) a drug test administered within the past 5 
                years demonstrating that the person had used a 
                controlled substance unlawfully; or
                    ``(E) an admission to using or possessing a 
                controlled substance unlawfully within the past 5 
                years.
            ``(2) Members of armed forces.--For a current or former 
        member of the Armed Forces, an inference that a person is an 
        unlawful user of a controlled substance may be drawn based on 
        disciplinary or other administrative action within the past 5 
        years based on confirmed use of a controlled substance, 
        including a court-martial conviction, nonjudicial punishment, 
        or an administrative discharge based on use of a controlled 
        substance or drug rehabilitation failure.''.
    (b) Application to Federal Courts.--Section 103(e)(1) of the Brady 
Handgun Violence Prevention Act (18 U.S.C. 922 note), as amended by 
this section 102, is amended--
            (1) in subparagraph (C), by inserting ``(including any 
        record of a Federal court of any person ordered into a 
        diversion program as described in section 921(a)(37))'' after 
        ``any person''; and
            (2) by adding at the end the following:
                    ``(G) Application to federal courts.--In this 
                paragraph--
                            ``(i) the terms `department or agency of 
                        the United States' and `Federal department or 
                        agency' include a Federal court; and
                            ``(ii) for purposes of any request, 
                        submission, or notification, the Director of 
                        the Administrative Office of the United States 
                        Courts shall perform the functions of the head 
                        of the department or agency.''.
    (c) Definition.--Section 921(a) of title 18, United States Code, as 
amended by section 103(a), is amended by adding at the end the 
following:
            ``(37) The term `addicted to any controlled substance' 
        includes a person ordered by a court into a diversion program 
        designed for abusers of or addicts to controlled substances as 
        part of a criminal or juvenile delinquency proceeding, 
        regardless of whether the person was convicted, whether the 
        court made a finding of guilt, or whether the program accepts 
        participants who are abusers of or addicted to substances other 
        than controlled substances.''.
    (d) Conforming Amendment to NICS Improvement Amendments Act.--
Section 102(b)(1)(C)(iii) of the NICS Improvement Amendments Act of 
2007 (18 U.S.C. 922 note) is amended by striking ``(as such'' and all 
that follows through ``adjudications,''.

     TITLE II--REQUIRING A BACKGROUND CHECK FOR EVERY FIREARM SALE

SEC. 201. PURPOSE.

    The purpose of this title is to extend the Brady Law background 
check procedures to all sales and transfers of firearms.

SEC. 202. FIREARMS TRANSFERS.

    (a) In General.--Chapter 44 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 932. Background checks for firearm transfers by unlicensed 
              persons
    ``(a) Definitions.--In this section--
            ``(1) the term `unlicensed transferee' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to received a firearm from an 
                unlicensed transferor; and
            ``(2) the term `unlicensed transferor' means a person who--
                    ``(A) is not licensed under this chapter; and
                    ``(B) desires to transfer a firearm to an 
                unlicensed transferee.
    ``(b) Responsibilities of Transferors Other Than Licensees.--
            ``(1) In general.--It shall be unlawful for an unlicensed 
        transferor to transfer a firearm to an unlicensed transferee, 
        unless the firearm is transferred--
                    ``(A)(i) through a licensed dealer under subsection 
                (d);
                    ``(ii) through a law enforcement agency under 
                subsection (e);
                    ``(iii) after inspecting a permit that confirms a 
                background check under subsection (f); or
                    ``(iv) in accordance with an exception described in 
                subsection (g); and
                    ``(B) in accordance with paragraph (2).
            ``(2) Criminal background checks.--Except as provided in 
        subsection (g), an unlicensed transferor--
                    ``(A) subject to subparagraph (B), may not transfer 
                a firearm to an unlicensed transferee until--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(A);
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(A); or
                            ``(iii) the unlicensed transferee has 
                        presented a permit that confirms that a 
                        background check has been conducted, as 
                        described in subsection (f); and
                    ``(B) may not transfer a firearm to an unlicensed 
                transferee if--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes the 
                        notification described in subsection (d)(3)(B); 
                        or
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes the notification described in subsection 
                        (e)(3)(B).
            ``(3) Absence of recordkeeping requirements.--Nothing in 
        this section shall permit or authorize the Attorney General to 
        impose recordkeeping requirements on any unlicensed transferor.
    ``(c) Responsibilities of Transferees Other Than Licensees.--
            ``(1) In general.--It shall be unlawful for an unlicensed 
        transferee to receive a firearm from an unlicensed transferor, 
        unless the firearm is transferred--
                    ``(A)(i) through a licensed dealer under subsection 
                (d);
                    ``(ii) through a law enforcement agency under 
                subsection (e);
                    ``(iii) after inspecting a permit that confirms a 
                background check in accordance with subsection (f); or
                    ``(iv) in accordance with an exception described in 
                subsection (g); and
                    ``(B) in accordance with paragraph (2).
            ``(2) Criminal background checks.--Except as provided in 
        subsection (g), an unlicensed transferee--
                    ``(A) subject to subparagraph (B), may not receive 
                a firearm from an unlicensed transferor until--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(A);
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(A); or
                            ``(iii) the unlicensed transferee has 
                        presented a permit that confirms that a 
                        background check described in subsection (f) 
                        has been conducted; and
                    ``(B) may not receive a firearm from another 
                unlicensed transferor if--
                            ``(i) the licensed dealer through which the 
                        transfer is made under subsection (d) makes a 
                        notification described in subsection (d)(3)(B); 
                        or
                            ``(ii) the law enforcement agency through 
                        which the transfer is made under subsection (e) 
                        makes a notification described in subsection 
                        (e)(4)(B).
    ``(d) Background Checks Through Licensed Dealers.--A licensed 
dealer who agrees to assist in the transfer of a firearm between 
unlicensed transferor and an unlicensed transferee shall--
            ``(1) enter such information about the firearm as the 
        Attorney General may require by regulation into a separate 
        bound record;
            ``(2) record the transfer on a form specified by the 
        Attorney General;
            ``(3) comply with section 922(t) as if transferring the 
        firearm from the inventory of the licensed dealer to the 
        unlicensed transferee (except that a licensed dealer assisting 
        in the transfer of a firearm under this subsection shall not be 
        required to comply again with the requirements of section 
        922(t) in delivering the firearm to the unlicensed transferee) 
        and notify the unlicensed transferor and unlicensed 
        transferee--
                    ``(A) of such compliance; and
                    ``(B) if the transfer is subject to the 
                requirements of section 922(t)(1), of any receipt by 
                the licensed dealer of a notification from the national 
                instant criminal background check system that the 
                transfer would violate section 922 or State law;
            ``(4) not later than 31 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of or other 
                identifying information relating to the unlicensed 
                transferor or unlicensed transferee;
            ``(5) if the licensed dealer assists an unlicensed 
        transferor in transferring, at the same time or during any 5 
        consecutive business days, 2 or more pistols or revolvers, or 
        any combination of pistols and revolvers totaling 2 or more, to 
        the same unlicensed transferee, in addition to the reports 
        required under paragraph (4), prepare a report of the multiple 
        transfers, which shall--
                    ``(A) be prepared on a form specified by the 
                Attorney General; and
                    ``(B) not later than the close of business on the 
                date on which the transfer requiring the report under 
                this paragraph occurs, be submitted to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(6) retain a record of the transfer as part of the 
        permanent business records of the licensed dealer.
    ``(e) Background Checks Through Law Enforcement Agencies.--A State 
or local law enforcement agency that agrees to assist an unlicensed 
transferor in carrying out the responsibilities of the unlicensed 
transferor under subsection (b) with respect to the transfer of a 
firearm shall--
            ``(1)(A) contact the national instant criminal background 
        check system under section 922(t); and
            ``(B)(i) receive an identification number as described in 
        section 922(t)(1)(B)(i); or
            ``(ii) wait the period described in 922(t)(1)(B)(ii);
            ``(2) conduct such other checks as the agency considers 
        appropriate to determine whether the receipt or possession of 
        the firearm by the unlicensed transferee would violate section 
        922 or State law;
            ``(3) verify the identity of the unlicensed transferee by--
                    ``(A) examining a valid identification document (as 
                defined in section 1028(d)) of the unlicensed 
                transferee containing a photograph of the unlicensed 
                transferee; or
                    ``(B) confirming that the unlicensed transferor has 
                examined a valid identification document described in 
                subparagraph (A);
            ``(4) notify the unlicensed transferor and transferee--
                    ``(A) of the compliance by the law enforcement 
                agency with the requirements under paragraphs (1), (2), 
                and (3); and
                    ``(B) of any receipt by the law enforcement agency 
                of a notification from the national instant criminal 
                background check system or other information that the 
                transfer would violate section 922 or would violate 
                State law;
            ``(5) not later than 31 days after the date on which the 
        transfer occurs, submit to the Attorney General a report of the 
        transfer, which--
                    ``(A) shall be on a form specified by the Attorney 
                General by regulation; and
                    ``(B) shall not include the name of or other 
                identifying information relating to the unlicensed 
                transferor or unlicensed transferee;
            ``(6) if the law enforcement agency assists an unlicensed 
        transferor in transferring, at the same time or during any 5 
        consecutive business days, 2 or more pistols or revolvers, or 
        any combination of pistols and revolvers totaling 2 or more, to 
        the same unlicensed transferee, in addition to the reports 
        required under paragraph (5), prepare a report of the multiple 
        transfers, which shall be--
                    ``(A) prepared on a form specified by the Attorney 
                General; and
                    ``(B) not later 24 hours after the transfer 
                requiring the report under this paragraph occurs, 
                submitted to--
                            ``(i) the office specified on the form 
                        described in subparagraph (A); and
                            ``(ii) the appropriate State law 
                        enforcement agency of the jurisdiction in which 
                        the transfer occurs; and
            ``(7) maintain records of the transfer at such place, and 
        in such form, as the Attorney General may prescribe.
    ``(f) Purchase Permits Confirming Background Checks.--An unlicensed 
transferor may transfer a firearm to an unlicensed transferee if the 
unlicensed transferor verifies that--
            ``(1) the unlicensed transferee has presented a valid 
        permit or license that allows the unlicensed transferee to 
        possess, acquire, or carry a firearm;
            ``(2) the permit or license was issued not more than 5 
        years before the date on which the permit or license is 
        presented under paragraph (1) by a law enforcement agency in 
        the State in which the transfer is to take place;
            ``(3) the law of the State provides that the permit or 
        license is to be issued only after a law enforcement official 
        has verified that neither the national instant criminal 
        background check system nor other information indicates that 
        possession of a firearm by the unlicensed transferee would be 
        in violation of Federal, State, or local law; and
            ``(4) if the permit or license does not include a 
        photograph of the unlicensed transferee, the unlicensed 
        transferor has examined a valid identification document (as 
        defined in section 1028(d)) of the unlicensed transferee 
        containing a photograph of the unlicensed transferee.
    ``(g) Exceptions.--Unless prohibited by any other provision of law, 
subsections (b) and (c) shall not apply to any transfer of a firearm 
between an unlicensed transferor and unlicensed transferee, if--
            ``(1) the transfer is a bona fide gift between immediate 
        family members, including spouses, parents, children, siblings, 
        grandparents, and grandchildren;
            ``(2) the transfer occurs by operation of law, or because 
        of the death of another person for whom the unlicensed 
        transferor is an executor or administrator of an estate or a 
        trustee of a trust created in a will;
            ``(3) the transfer is temporary and occurs while in the 
        home of the unlicensed transferee, if--
                    ``(A) the unlicensed transferee is not otherwise 
                prohibited from possessing firearms; and
                    ``(B) the unlicensed transferee believes that 
                possession of the firearm is necessary to prevent 
                imminent death or great bodily harm to the unlicensed 
                transferee;
            ``(4) the transfer is approved by the Attorney General 
        under section 5812 of the Internal Revenue Code of 1986; or
            ``(5) upon application of the unlicensed transferor, the 
        Attorney General determined that compliance with subsection (b) 
        is impracticable because--
                    ``(A) the ratio of the number of law enforcement 
                officers of the State in which the transfer is to occur 
                to the number of square miles of land area of the State 
                does not exceed 0.0025;
                    ``(B) the location at which the transfer is to 
                occur is extremely remote in relation to the chief law 
                enforcement officer (as defined in section 922(s)(8)); 
                and
                    ``(C) there is an absence of telecommunications 
                facilities in the geographical area in which the 
                unlicensed transferor is located; or
            ``(6) the transfer is a temporary transfer of possession 
        without transfer of title that takes place--
                    ``(A) at a shooting range located in or on premises 
                owned or occupied by a duly incorporated organization 
                organized for conservation purposes or to foster 
                proficiency in firearms;
                    ``(B) at a target firearm shooting competition 
                under the auspices of or approved by a State agency or 
                nonprofit organization; or
                    ``(C) while hunting, fishing, or trapping, if--
                            ``(i) the activity is legal in all places 
                        where the unlicensed transferee possesses the 
                        firearm; and
                            ``(ii) the unlicensed transferee holds any 
                        required license or permit.
    ``(h) Processing Fees.--A licensed dealer or law enforcement agency 
that processes the transfer of a firearm under this section may assess 
and collect a fee, in an amount not to exceed $15, with respect to each 
firearm transfer processed.
    ``(i) Records.--Nothing in subsection (e)(7) shall be construed to 
authorize the Attorney General to inspect records described in such 
subsection or to require that the records be transferred to a facility 
owned, managed, or controlled by the United States.''.
    (b) Penalties.--Section 924(a)(5) of title 18, United States Code, 
is amended by inserting ``or section 932'' after ``section 922''.
    (c) Conforming Amendment.--The table of sections for chapter 44 of 
title 18, United States Code, is amended by adding at the end the 
following:

``932. Background checks for firearm transfers by unlicensed 
                            persons.''.

SEC. 203. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 180 days after 
the date of enactment of this Act.
                                 <all>
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