Default Proceed Sale Transparency Act

The Default Proceed Sale Transparency Act aims to enhance the procedures of the National Instant Criminal Background Check System (NICS) for firearm transfers that occur before the completion of a background check, commonly known as "default proceed" sales. It amends federal law to require federally licensed firearm importers, manufacturers, and dealers to report such transfers to the Federal Bureau of Investigation (FBI) within 24 hours. To facilitate this, the Attorney General must establish an online portal and telephone hotline exclusively for reporting this information, ensuring the FBI can prioritize these specific background checks. Furthermore, the bill mandates that the NICS system give priority to completing background checks related to these default firearm transfers . It also prohibits the NICS from destroying any records pertaining to a proposed or completed firearm transfer until the associated criminal background check has been fully completed. These provisions are designed to ensure that individuals who may be prohibited from owning firearms are identified even after a default proceed sale has occurred. The legislation also introduces comprehensive annual reporting requirements to increase transparency regarding default firearm transfers . The Director of the FBI must publicly report on the number of such transfers, the completion status of their background checks, and the reasons for any prohibitions found, including whether firearms were retrieved. Concurrently, the Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) must report on the average time for firearm recovery from prohibited individuals and the number of default proceed firearms recovered in criminal investigations, including interstate recovery data.