H.R. 1740: Default Proceed Sale Transparency Act

The Default Proceed Sale Transparency Act is a proposed piece of legislation aimed at improving procedures surrounding firearm transfers in the United States, particularly when a national instant criminal background check does not conclude before a firearm sale occurs.

Key Provisions of the Bill

1. Reporting Default Firearm Transfers

The bill mandates that federally licensed firearms importers, manufacturers, and dealers must report any firearm transfers that take place before receiving a unique identification number from the national instant criminal background check system (NICS). Specifically, this reporting must happen within 24 hours of the transfer. If local or state law enforcement entities are involved in the background check, the Federal Bureau of Investigation (FBI) is required to relay this information to them.

2. Online and Telephone Reporting Options

The Attorney General is tasked with creating a dedicated online portal and a telephone hotline within 180 days of the bill's enactment. These platforms will allow individuals to report relevant information to help the FBI prioritize background checks for these default firearm transfers.

3. Prioritization of Background Checks

The legislation aims to ensure that background checks associated with default firearm transfers receive priority processing within the NICS framework. This is intended to expedite the review process for these specific transactions.

4. Protection of Transfer Records

The bill prohibits the destruction of records related to firearm transfers before the completion of the related background check. This is important for maintaining accountability and traceability in transactions where background checks are pending.

5. Annual Reporting Requirements

The bill requires the FBI to produce a public report annually on various metrics related to default firearm transfers. This report must include:

• The total number of firearms transferred that fell under the default rules during the reporting period, broken down by state.
• The number of those transfers that completed the background checks.
• Details on any firearms transferred to individuals who would violate laws preventing them from receiving firearms.
• Statistics on firearms retrieved or not retrieved from individuals who should not have received them, with breakdowns by relevant state authorities.
• Data from the previous five years on background check requests that were not resolved before records were purged.
• A count of the licensed dealers who performed these transfers, again broken down by state.

6. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Report

Similarly, the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives must also provide an annual public report. This report should include:

• The average time taken to recover firearms that were misappropriated or otherwise illegally transferred.
• The number of firearms investigated as part of crimes linked to these default transfers, separated by state.
• Details on the recovery of such firearms in states different from where the transfer originally occurred.

Rule of Interpretation

The reports generated under this bill will be categorized as annual statistical reports. They are intended to provide aggregate data useful for statistical analysis and policymaking.

Relevant Companies

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