PolicyBrief
H.R. 1740
119th CongressFeb 27th 2025
Default Proceed Sale Transparency Act
IN COMMITTEE

The Default Proceed Sale Transparency Act aims to improve the National Instant Criminal Background Check System (NICS) by requiring firearm dealers to report firearm transfers when background checks are not immediately completed, mandating the creation of a reporting system for prioritization, and requiring annual reports on firearm transfers occurring after incomplete background checks.

Bradley "Brad" Schneider
D

Bradley "Brad" Schneider

Representative

IL-10

LEGISLATION

New Gun Sale Rule: Dealers Must Report to FBI If Background Checks Stall

The "Default Proceed Sale Transparency Act" changes the rules when someone buys a gun and the background check system hits a snag. Here’s the deal: if the National Instant Criminal Background Check System (NICS) doesn't give a thumbs-up or thumbs-down quickly, the sale can sometimes still go through – that’s a "default proceed" sale. This bill adds a new layer to that process.

Quick Reporting, Focused Checks

Under this proposed law, if a gun dealer goes ahead with a sale because the NICS check is delayed, they must report it to the FBI within 24 hours (SEC. 2). The idea is to get those delayed checks to the front of the line. The Attorney General has six months to set up a website and phone line specifically for these reports. Plus, dealers can't destroy records of these sales until the background check is actually finished.

  • Real-World Example: Imagine a small business owner buying a handgun for store security. If their NICS check gets delayed, the dealer can still make the sale, but now they have to quickly notify the FBI. This helps the FBI prioritize that specific check.

Tracking the Untracked

The bill also demands more transparency. Both the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will have to publish annual reports (SEC. 3). These reports will break down:

  • How many guns were sold before the background check was complete.

  • How many of those checks eventually came back with a denial.

  • If a denial happened, how many of those guns were actually retrieved.

  • Which gun dealers made these "default proceed" sales.

  • How long it takes, on average, to get a gun back after a delayed denial.

  • Where the guns were recovered.

  • Real-World Impact: This kind of data could show if certain states or dealers have a higher rate of these delayed-denial sales, potentially highlighting areas needing more attention. It could also be used to show whether the retrieval process is effective, or needs improvement.

The Big Picture

This bill is about tightening up the system when background checks don't go smoothly. It aims to give law enforcement better tools to track guns sold under these circumstances and provide data to understand how often this happens and what happens afterward. While it adds a reporting step for dealers, the focus is on getting those delayed checks done quickly and making sure guns don't end up in the wrong hands because of a system delay.