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 re-
lated 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Default Proceed Sale 
Transparency Act’’. 
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SEC. 2. IMPROVEMENT OF NICS PROCEDURES IN THE CASE 
OF DEFAULT FIREARM TRANSFERS. 
(a) REQUIREMENT THAT FEDERALLY LICENSED 
FIREARM IMPORTERS, MANUFACTURERS, AND DEALERS 
REPORT DEFAULT FIREARM TRANSFERS.— 
(1) IN GENERAL.—Section 922(t) of title 18, 
United States Code, is amended by adding at the 
end the following: 
‘‘(7) A licensed importer, licensed manufacturer, or 
licensed dealer who transfers a firearm in compliance with 
paragraph (1), but before the national instant criminal 
background check system provides the licensee with a 
unique identification number, shall report the transfer to 
the Federal Bureau of Investigation within 24 hours. If 
a State or local law enforcement authority is conducting 
the related background check, the Federal Bureau of In-
vestigation shall transmit the report to that authority.’’. 
(2) CREATION OF ONLINE PORTAL AND TELE-
PHONE HOTLINE.—Within 180 days after the date 
of the enactment of this Act, the Attorney General 
shall create an online portal and telephone hotline, 
that are to be used exclusively for the purpose of re-
porting sufficient information to allow the Federal 
Bureau of Investigation to prioritize background 
checks in accordance with section 40901 of title 34, 
United States Code. 
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(b) PRIORITIZATION OF NICS BACKGROUND CHECKS 
RELATING TO DEFAULT FIREARM TRANSFERS.—Section 
103 of the Brady Handgun Violence Prevention Act (34 
U.S.C. 40901) is amended by adding at the end the fol-
lowing: 
‘‘(m) PRIORITIZATION OF BACKGROUND CHECKS RE-
LATED TO DEFAULT FIREARM TRANSFERS.—In the case 
of a transfer referred to in section 922(t)(7) of title 18, 
United States Code, the system established under this sec-
tion shall give priority to completing the background check 
relating to the transfer.’’. 
(c) PROHIBITION
ON DESTRUCTION
OF RECORDS 
RELATING TO FIREARM TRANSFER BEFORE COMPLETION 
OF BACKGROUND CHECK.—Section 103 of the Brady 
Handgun Violence Prevention Act (34 U.S.C. 40901), as 
amended by subsection (b) of this section, is amended by 
adding at the end the following: 
‘‘(n) PROHIBITION ON DESTRUCTION OF RECORDS 
RELATING TO FIREARM TRANSFER BEFORE COMPLETION 
OF RELATED BACKGROUND CHECK.—The system estab-
lished under this section may not destroy any records of 
the system relating to a proposed or completed firearm 
transfer, before completion of the criminal background 
check with respect to the prospective or actual trans-
feree.’’. 
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SEC. 3. ANNUAL REPORTS ON DEFAULT FIREARM TRANS-
FERS. 
(a) IN GENERAL.—Within 300 days after the date 
of the enactment of this Act and annually thereafter, the 
Director of the Federal Bureau of Investigation shall 
make accessible to the public a written report on— 
(1) the number of firearms transferred as de-
scribed in section 922(t)(7) of title 18, United 
States Code, during the period covered by the re-
port, disaggregated by State; 
(2) the number of the firearms described in 
paragraph (1) of this subsection with respect to 
which the national instant criminal background 
check system established under section 103 of the 
Brady Handgun Violence Prevention Act completed 
the background check; 
(3) of the number described by paragraph (2) 
of this subsection— 
(A) the number with respect to which the 
system provided the unique identification num-
ber under subparagraph (B)(i) or (C)(i) of sec-
tion 922(t)(1) of such title; 
(B) the number with respect to which in-
formation available to the system demonstrated 
that transfer of a firearm to, or receipt of a 
firearm by, the transferee would violate sub-
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section (d), (g), or (n) of section 922 of such 
title or State, local, or tribal law; and 
(C) in each case described by subpara-
graph (B) of this paragraph, the reason for in-
dicating that the receipt would be a violation re-
ferred to in such subparagraph (B), including 
any specific prohibiting criteria that would bar 
the transferee from receipt of a firearm or a li-
censee from transferring a firearm; 
(4) of the number described by paragraph 
(3)(B) of this subsection, the number of firearms 
that were retrieved from the transferee, and the 
number of firearms that were not retrieved from the 
transferee, with each number disaggregated by the 
field division of the Bureau of Alcohol, Tobacco, 
Firearms and Explosives and the State involved; 
(5) in the case of the first report under this 
section, the number of requests for criminal back-
ground checks received by the system in the pre-
ceding 5 years the records of which were purged 
from the system without resolution; and 
(6) the number of licensed importers, licensed 
manufacturers, or licensed dealers who transferred 
firearms as described in section 922(t)(7) of such 
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title during the period covered by the report, 
disaggregated by the State of sale. 
(b) IN GENERAL.—Within 300 days after the date 
of the enactment of this Act and annually thereafter, the 
Director of the Bureau of Alcohol, Tobacco, Firearms and 
Explosives shall make accessible to the public a written 
report on— 
(1) the average time between receipt and recov-
ery of a firearm transferred as described in section 
922(t)(7) of title 18, United States Code, during the 
period covered by the report, where the transfer to, 
or receipt by, the transferee violated subsection (d), 
(g), or (n) of section 922 of such title or State, local, 
or tribal law; 
(2) the number of firearms transferred as de-
scribed in such section 922(t)(7) during the period 
covered by the report, that were recovered as part of 
a criminal investigation, where receipt by the trans-
feree violated such subsection (d), (g), or (n) or 
State, local, or tribal law, disaggregated by State; 
and 
(3) of the number described by paragraph (2) 
of this subsection— 
(A) the total number of firearms that were 
recovered by law enforcement in States other 
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than the State the firearm was transferred by 
a licensed importer, licensed manufacturer, or 
licensed dealer as described in such section 
922(t); and 
(B) the information outlined in subpara-
graph (A) of this paragraph, disaggregated 
by— 
(i) the State where the firearm was 
recovered; and 
(ii) the State where the firearm was 
transferred as described in such section 
922(t). 
(c) RULE
OF INTERPRETATION.—A report under 
subsection (a) shall be considered an annual statistical re-
port and statistical aggregate data for purposes of the 
sixth proviso under the heading ‘‘BUREAU OF ALCOHOL, 
TOBACCO, FIREARMS AND EXPLOSIVES—SALARIES AND 
EXPENSES’’ in the Department of Justice Appropriations 
Act, 2012 (title II of division B of Public Law 112–55). 
Æ 
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