TRACE Act

This bill aims to curb illegal gun sales by improving tracing and oversight. New guns made in the U.S. would need a second, hidden serial number—inside the firearm’s receiver or visible only with infrared light—on top of the regular serial number. The Justice Department must set these rules within one year. It also makes licensed gun dealers do physical inventory checks of their stock, with rules due within 180 days. The bill requires certain background check records to be kept for a period of time, with the details set by regulation. Finally, it removes some older limits in past funding laws that restricted federal oversight, and states that no funds may be used to create a tax or fee tied to background checks.

Key points:

• Who is affected: gun manufacturers, federally licensed gun dealers, and federal agencies overseeing firearms .
• What changes: second hidden serial numbers on new guns; required dealer inventory checks; required retention of some background check records; removal of certain older limits; no funds for a background-check tax or fee .
• When: serial-number rules within 12 months; inventory and record-keeping rules within 180 days of the law taking effect .