H.R. 1740 Introduced Crime and Law Enforcement

Default Proceed Sale Transparency Act

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.

  1. Introduced
  2. Committee
  3. Passed House
  4. Passed Senate
  5. To President
  6. Became law
Sponsor Rep. Schneider, Bradley Scott [D-IL-10] Introduced February 27, 2025 Cosponsors 2 (2 D) Latest action February 27, 2025

Summary

Default Proceed Sale Transparency Act
This bill establishes new requirements in the case of a firearm transfer by a federally licensed dealer, manufacturer, or importer to an unlicensed person prior to the completion of a background check. Current law permits these transactions—default-proceed transactions—if a submitted background check remains incomplete after three business days.
With respect to a default-proceed transaction, the bill
- requires a federally licensed dealer, manufacturer, or importer to report the transfer to the Federal Bureau of Investigation (FBI) within 24 hours;
- requires the National Instant Criminal Background Check System (NICS) to prioritize completing the background check related to the transfer; and
- requires the NICS to retain records related to a proposed or completed firearm transfer until the background check is complete.
Finally, the bill requires the FBI to report publicly on data related to default-proceed transactions. Further, it requires the Bureau of Alcohol, Tobacco, Firearms and Explosives to report publicly on data related to the firearms transferred in default-proceed transactions.

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Feb 27, 2025 Referred to the House Committee on the Judiciary.
  2. Feb 27, 2025 Introduced in House

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