Trafficking Reduction And Criminal Enforcement (TRACE) Act

To prevent the illegal sale of firearms, and for other purposes. 1. Short title This Act may be cited as the Trafficking Reduction And Criminal Enforcement (TRACE) Act 2. Regulatory requirement to mark firearms with second, hidden serial number Within 12 months after the date of the enactment of this Act, the Attorney General shall promulgate final regulations that require each firearm manufactured in the United States on or after the effective date of the regulation, to be marked with a serial number that is located inside the receiver of the firearm or that is visible only in infrared light, in addition to the serial number with which the firearm is otherwise required by law to be marked. 3. Requirement to preserve instant criminal background check records for 180 days (a) In general Section 922(t)(2)(C) of title 18, United States Code, is amended by inserting after the 180-day period that begins with the date the system complies with subparagraphs (A) and (B), destroy (b) Conforming amendment Section 511 of the Consolidated and Further Continuing Appropriations Act, 2012 ( 18 U.S.C. 922 Public Law 112–55 (1) by striking for— (1) (2) by striking the semicolon and all that follows and inserting a period. (c) Regulations Within 180 days after the date of the enactment of this Act, the Attorney General shall prescribe regulations to implement the amendments made by this section. 4. Requirement that licensed firearms dealers conduct physical check of their firearms business inventory (a) In general Section 923(g) (8) Each licensee shall conduct a physical check of the firearms inventory of the business of the licensee licensed under this chapter, in accordance with regulations which shall be prescribed by the Attorney General. . (b) Conforming amendment The matter under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses 18 U.S.C. 923 Public Law 112–55 (c) Regulations Within 180 days after the date of the enactment of this Act, the Attorney General shall prescribe regulations to implement section 923(g)(8) 5. Elimination of limitations on use of gun trace information (a) The matter under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses 18 U.S.C. 923 Public Law 112–55 (b) The 6th proviso under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses Public Law 111–117 beginning in fiscal year 2010 and thereafter in fiscal year 2010 (c) The 6th proviso under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses 18 U.S.C. 923 Public Law 111–8 beginning in fiscal year 2009 and thereafter in fiscal year 2009 (d) The 6th proviso under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses Public Law 110–161 beginning in fiscal year 2009 and thereafter in fiscal year 2009 (e) The 6th proviso under the heading Bureau of Alcohol, Tobacco, Firearms and Explosives Salaries and Expenses 18 U.S.C. 923 Public Law 109–108 with respect to any fiscal year

Summary: Trafficking Reduction and Criminal Enforcement (TRACE) Act - Directs the Attorney General to promulgate regulations that require each firearm manufactured in the United States to be marked with a serial number that is located inside the firearm's receiver or that is visible only in infrared light, in addition to the serial number mark otherwise required. Amends the federal criminal code to: (1) prohibit national instant criminal background check system records about a prospective firearm transferee from being destroyed until after 180 days after the system assigns and provides a firearms licensee with a unique identification number for the transfer, and (2) repeal provisions prohibiting appropriated funds from being used for any system that does not require the destruction of any identifying information submitted for a transferee within 24 hours after the system advises a licensee that the transferee's receipt of a firearm is not prohibited. Requires each licensed firearms dealer to conduct a physical check of its firearms business inventory. Amends the Consolidated and Further Continuing Appropriations Act, 2012, to repeal prohibitions against using appropriated funds to: (1) promulgate or implement any rule requiring a physical inventory of any firearms business; or (2) disclose contents of the Firearms Trace System database maintained by the National Trace Center of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) or any information required to be kept by firearms licensees except as specified in that Act.