Default Proceed Sale Transparency Act

This bill focuses on gun sales that go through before a background check is finished. It makes gun dealers report those sales quickly, speeds up the remaining background checks, keeps records until checks are done, and requires clear public reporting so communities know what’s happening with these cases.

• Who is affected: federally licensed gun sellers, the FBI and state/local agencies that run background checks, the ATF, and the public who will see the reports .
• What changes:
  • If a sale happens before a background check is finished, the dealer must report it to the FBI within 24 hours; the FBI will pass it to state or local officials if they are doing the check.
  • The Justice Department must set up an online portal and a phone hotline within 180 days to make these reports easy and to help the FBI prioritize these checks.
  • The background check system must move these unfinished-check cases to the front of the line, and it cannot destroy any transfer records until the check is complete.
  • The FBI must release a public report within 300 days and every year after, showing how many of these sales happened by state, how many checks were finished, how many were allowed or should have been blocked (and why), and how many guns were later retrieved or not, with details by ATF field division and state. The first report must also say how many old, unfinished checks were purged in the past five years. It must also list how many licensed sellers made such transfers by state .
  • The ATF must release a yearly public report on how long it takes to recover guns from blocked sales, how many of those guns show up in criminal cases, and how often guns are recovered in a different state than where they were sold, with breakdowns by state.