This bill establishes a framework to limit the transfer of firearms to and purchase from federally licensed gun dealers whose firearms have a short time to crime. The term short time to crime means a period of three years or less between the date of the last known retail sale of a firearm and the date a firearm is recovered in an actual or suspected criminal offense.

Specifically, the bill directs the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to notify a state or local law enforcement agency if a firearm transferred by the agency is used, or suspected of being used, in the commission of a criminal offense, as traced by the National Tracing Center.

Additionally, the bill directs the ATF to publish annually a list of federally licensed gun dealers who have 25 or more traces of firearms with a short time to crime in at least two of the three previous years.

The bill prohibits a state (including the District of Columbia), territory, or local government that receives funds under the Edward Byrne Memorial Justice Assistance Grant Program from transferring a firearm to, or purchasing a firearm from, a dealer on the list.

The bill removes limits on the authority of the ATF to disclose firearms tracing data.