establish and operate the system in accordance with
this section.
(g) CORRECTION OF ERRONEOUS SYSTEM INFORMA-
TION.—If the system established under this section informs
an individual contacting the system that receipt of a fire-
arm by a prospective transferee would violate subsection (g)
or (n) of section 922 of title 18, United States Code, or any
State or local law, the prospective transferee may request
the Attorney General to provide the prospective transferee
with the reasons therefor. Upon receipt of such a request,
the Attorney General shall immediately comply with the re-
quest. The prospective transferee may submit to the Attor-
ney General information to correct, clarify, or supplement
records of the system with respect to the prospective trans-
feree. After receipt of such information, the Attorney Gen-
eral shall immediately consider the information, investigate
the matter further, and correct all erroneous Federal records
relating to the prospective transferee and give notice of the
error to any Federal department or agency or any State
that was the source of such erroneous records.
(h) REGULATIONS.—After 90 days notice to the public
and an opportunity for hearing by interested parties, the
Attorney General shall prescribe regulations to ensure the
privacy and security of the information of the system estab-
lished under this section.
(i) PROHIBITIONS RELATING TO ESTABLISHMENT OF
REGISTRATION SYSTEMS WITH RESPECT TO FIREARMS.—
No department, agency, officer, or employee of the United
States may—
(1) require that any record or portion thereof
maintained by the system established under this sec-
tion be recorded at or transferred to a facility owned,
managed, or controlled by the United States or any
State or political subdivision thereof; or
(2) use the system established under this section
to establish any system for the registration of fire-
arms, firearm owners, or firearm transactions or dis-
positions, except with respect to persons prohibited by
section 922 (g) or (n) of title 18, United States Code,
from receiving a firearm.
(j) DEFINITIONS.—As used in this section:
(1) LICENSEE.—The term ‘‘licensee’’ means a li-
censed importer, licensed manufacturer, or licensed
dealer under section 923 of title 18, United States
Code.
(2) OTHER TERMS.—The terms ‘‘firearm’’, ‘‘li-
censed importer’’, ‘‘licensed manufacturer’’, and ‘‘li-
censed dealer’’ have the meanings stated in section
921(a) (3), (9), (10), and (11), respectively, of title
18, United States Code.
SEC. 4. REMEDY FOR ERRONEOUS DENIAL OF HANDGUN.
(a) IN GENERAL.—Chapter 44 of title 18, United
States Code, is amended by inserting after section 925 the
following:
‘‘§ 925A. Remedy for erroneous denial of handgun
‘‘Any person who is denied a handgun pursuant to sec-
tion 922(s) of this title due to the provision of erroneous
information relating to the person by any State or political
subdivision thereof, or by the national instant criminal
background check system established under section 3(a) of
the Brady Handgun Violence Prevention Act, and who has
exhausted the administrative remedies available for the cor-
rection of such erroneous information, may bring an action
against any official of the State or political subdivision re-
sponsible for providing the erroneous information, or
against the United States, as the case may be, for an order
directing that the erroneous information be corrected. In
any action under this section, the court, in its discretion,
may allow the prevailing party a reasonable attorney’s fee
as part of the costs.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
such chapter is amended by inserting after the item relating
to section 925 the following:
‘‘925A. Remedy for erroneous denial of handgun.’’.
SEC. 
5. 
FUNDING 
FOR 
IMPROVEMENT 
OF 
CRIMINAL
RECORDS.
(a) IMPROVEMENTS IN STATE RECORDS.—
(1) USE OF FORMULA GRANTS.—Section 509(b)
of title I of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3759(b)) is amended—
(A) in paragraph (2) by striking ‘‘and’’
after the semicolon;
(B) in paragraph (3) by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) the improvement of State record systems
and the sharing with the Attorney General of all of
the records described in paragraphs (1), (2), and (3)
of this subsection and the records required by the At-
torney General under section 3 of the Brady Hand-
gun Violence Prevention Act, for the purpose of imple-
menting such Act.’’.
(2) ADDITIONAL FUNDING.—
(A) GRANTS
FOR
THE
IMPROVEMENT
OF
CRIMINAL
RECORDS.—The Attorney General,
through the Bureau of Justice Statistics, shall,
subject to appropriations and with preference to
States that as of the date of enactment of this
Act have the lowest percent currency of case dis-
positions in computerized criminal history files,
make a grant to each State to be used—
(i) for the creation of a computerized
criminal history record system or improve-
ment of an existing system;
(ii) to improve accessibility to the na-
tional instant criminal background system;
and
(iii) upon establishment of the national
system, to assist the State in the transmit-
tal of criminal records to the national sys-
tem.
(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated
for grants under subparagraph (A) a total of
$100,000,000 for fiscal year 1992 and all fiscal
years thereafter.
(b) WITHHOLDING STATE FUNDS.—Effective on the
date of enactment of this Act the Attorney General may re-
duce by up to 50 percent the allocation to a State for a
fiscal year under title I of the Omnibus Crime Control and
Safe Streets Act of 1968 of a State that is not in compliance
with the timetable established for such State under section
3(c) of this Act.
(c) WITHHOLDING
OF
DEPARTMENT
OF
JUSTICE
FUNDS.—If the Attorney General does not certify the na-
tional instant criminal background check system pursuant
to section 3(d)(1) by—
(1) 30 months after the date of enactment of this
Act the general administrative funds appropriated to
the Department of Justice for the fiscal year begin-
ning in the calendar year in which the date that is
30 months after the date of enactment of this Act falls
shall be reduced by 5 percent on a monthly basis; and
(2) 42 months after the date of enactment of this
Act the general administrative funds appropriated to
the Department of Justice for the fiscal year begin-
ning in the calendar year in which the date that is
42 months after the date of enactment of this Act falls
shall be reduced by 10 percent on a monthly basis.
HR 1025 RH——2