(b) USE OF GRANT AMOUNTS.—Grants awarded to 
States or Indian tribes under this section may only be 
used to— 
(1) create electronic systems, which provide ac-
curate and up-to-date information which is directly 
related to checks under the National Instant Crimi-
nal Background Check System (referred to in this 
section as ‘‘NICS’’), including court disposition and 
corrections records; 
(2) assist States in establishing or enhancing 
their own capacities to perform NICS background 
checks; 
(3) supply accurate and timely information to 
the Attorney General concerning final dispositions of 
criminal records to databases accessed by NICS; 
(4) supply accurate and timely information to 
the Attorney General concerning the identity of per-
sons who are prohibited from obtaining a firearm 
under section 922(g)(4) of title 18, United States 
Code, to be used by the Federal Bureau of Inves-
tigation solely to conduct NICS background checks; 
(5) supply accurate and timely court orders and 
records of misdemeanor crimes of domestic violence 
for inclusion in Federal and State law enforcement
databases used to conduct NICS background checks; 
and 
(6) collect and analyze data needed to dem-
onstrate levels of State compliance with this Act. 
(c) CONDITION.—As a condition of receiving a grant 
under this section, a State shall specify the projects for 
which grant amounts will be used, and shall use such 
amounts only as specified. A State that violates this sub-
section shall be liable to the Attorney General for the full 
amount of the grant received under this section. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$250,000,000 for each of the fiscal years 2006 through 
2008. 
(e) USER FEE.—The Federal Bureau of Investiga-
tion shall not charge a user fee for background checks pur-
suant to section 922(t) of title 18, United States Code. 
SEC. 104. PENALTIES FOR NONCOMPLIANCE. 
(a) ATTORNEY GENERAL REPORT.— 
(1) IN GENERAL.—Not later than January 31 
of each year, the Attorney General shall submit to 
the Committee on the Judiciary of the Senate and 
the Committee on the Judiciary of the House of 
Representatives a report on the progress of the 
States in automating the databases containing infor-
mation described under sections 102 and 103, and 
in providing that information pursuant to the re-
quirements of sections 102 and 103. 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the De-
partment of Justice, such funds as may be necessary 
to carry out paragraph (1). 
(b) PENALTIES.— 
(1) DISCRETIONARY REDUCTION.—During the 
2-year period beginning 3 years after the date of en-
actment of this Act, the Attorney General may with-
hold not more than 3 percent of the amount that 
would otherwise be allocated to a State under sec-
tion 506 of the Omnibus Crime Control and Safe 
Streets Act of 1968 (42 U.S.C. 3756) if the State 
provides less than 60 percent of the information re-
quired to be provided under sections 102 and 103. 
(2) MANDATORY REDUCTION.—After the expi-
ration of the period referred to in paragraph (1), the 
Attorney General shall withhold 5 percent of the 
amount that would otherwise be allocated to a State 
under section 506 of the Omnibus Crime Control 
and Safe Streets Act of 1968 (42 U.S.C. 3756), if 
the State provides less than 90 percent of the infor-
mation required to be provided under sections 102 
and 103. 
(3) WAIVER BY ATTORNEY GENERAL.—The At-
torney General may waive the applicability of para-
graph (2) to a State if the State provides substantial 
evidence, as determined by the Attorney General, 
that the State is making a reasonable effort to com-
ply with the requirements of sections 102 and 103. 
(c) REALLOCATION.—Any funds that are not allo-
cated to a State because of the failure of the State to com-
ply with the requirements of this title shall be reallocated 
to States that meet such requirements. 
TITLE II—FOCUSING FEDERAL 
ASSISTANCE 
ON 
THE 
IM-
PROVEMENT 
OF 
RELEVANT 
RECORDS 
SEC. 201. CONTINUING EVALUATIONS. 
(a) EVALUATION REQUIRED.—The Director of the 
Bureau of Justice Statistics (referred to in this section 
as the ‘‘Director’’) shall study and evaluate the operations 
of the National Instant Criminal Background Check Sys-
tem. Such study and evaluation shall include compilations 
and analyses of the operations and record systems of the 
agencies and organizations necessary to support such Sys-
tem.
(b) REPORT ON GRANTS.—Not later than January 
31 of each year, the Director shall submit to Congress 
a report containing the estimates submitted by the States 
under section 102(b). 
(c) REPORT ON BEST PRACTICES.—Not later than 
January 31 of each year, the Director shall submit to Con-
gress, and to each State participating in the National 
Criminal History Improvement Program, a report of the 
practices of the States regarding the collection, mainte-
nance, automation, and transmittal of information rel-
evant to determining whether a person is prohibited from 
possessing or receiving a firearm by Federal or State law, 
by the State or any other agency, or any other records 
relevant to the National Instant Criminal Background 
Check System, that the Director considers to be best prac-
tices. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary for each of the fiscal years 2006 through 2008 
to complete the studies, evaluations, and reports required 
under this section.
TITLE III—GRANTS TO STATE 
COURT SYSTEMS FOR THE IM-
PROVEMENT IN AUTOMATION 
AND TRANSMITTAL OF DIS-
POSITION RECORDS 
SEC. 
301. 
DISPOSITION 
RECORDS 
AUTOMATION 
AND 
TRANSMITTAL IMPROVEMENT GRANTS. 
(a) GRANTS AUTHORIZED.—From amounts made 
available to carry out this section, the Attorney General 
shall make grants to each State, consistent with State 
plans for the integration, automation, and accessibility of 
criminal history records, for use by the State court system 
to improve the automation and transmittal of criminal his-
tory dispositions, records relevant to determining whether 
a person has been convicted of a misdemeanor crime of 
domestic violence, court orders, and mental health adju-
dications or commitments, to Federal and State record re-
positories in accordance with sections 102 and 103 and 
the National Criminal History Improvement Program. 
(b) GRANTS TO INDIAN TRIBES.—Up to 5 percent 
of the grant funding available under this section may be 
reserved for Indian tribal governments for use by Indian 
tribal judicial systems. 
(c) USE OF FUNDS.—Amounts granted under this 
section shall be used by the State court system only—
(1) to carry out, as necessary, assessments of 
the capabilities of the courts of the State for the au-
tomation and transmission of arrest and conviction 
records, court orders, and mental health adjudica-
tions or commitments to Federal and State record 
repositories; and 
(2) to implement policies, systems, and proce-
dures for the automation and transmission of arrest 
and conviction records, court orders, and mental 
health adjudications or commitments to Federal and 
State record repositories. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Attorney General 
to carry out this section $125,000,000 for each of the fis-
cal years 2006 through 2008. 
TITLE IV—GAO AUDIT 
SEC. 401. GAO AUDIT. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct an audit of the expenditure 
of all funds appropriated for criminal records improve-
ment pursuant to section 106(b) of the Brady Handgun 
Violence Prevention Act (Public Law 103–159) to deter-
mine if the funds were expended for the purposes author-
ized by the Act and how those funds were expended for 
those purposes or were otherwise expended.
(b) REPORT.—Not later than 6 months after the date 
of enactment of this Act, the Comptroller General shall 
submit a report to Congress describing the findings of the 
audit conducted pursuant to subsection (a). 
Æ