[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2640 Enrolled Bill (ENR)]

        H.R.2640

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
 To improve the National Instant Criminal Background Check System, and 
                           for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Tile.--This Act may be cited as the ``NICS Improvement 
Amendments Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.

                     TITLE I--TRANSMITTAL OF RECORDS

Sec. 101. Enhancement of requirement that Federal departments and 
          agencies provide relevant information to the National Instant 
          Criminal Background Check System.
Sec. 102. Requirements to obtain waiver.
Sec. 103. Implementation assistance to States.
Sec. 104. Penalties for noncompliance.
Sec. 105. Relief from disabilities program required as condition for 
          participation in grant programs.
Sec. 106. Illegal immigrant gun purchase notification.

  TITLE II--FOCUSING FEDERAL ASSISTANCE ON THE IMPROVEMENT OF RELEVANT 
                                 RECORDS

Sec. 201. Continuing evaluations.

    TITLE III--GRANTS TO STATE COURT SYSTEMS FOR THE IMPROVEMENT IN 
            AUTOMATION AND TRANSMITTAL OF DISPOSITION RECORDS

Sec. 301. Disposition records automation and transmittal improvement 
          grants.

                           TITLE IV--GAO AUDIT

Sec. 401. GAO audit.

SEC. 2. FINDINGS.

    Congress finds the following:
        (1) Approximately 916,000 individuals were prohibited from 
    purchasing a firearm for failing a background check between 
    November 30, 1998, (the date the National Instant Criminal 
    Background Check System (NICS) began operating) and December 31, 
    2004.
        (2) From November 30, 1998, through December 31, 2004, nearly 
    49,000,000 Brady background checks were processed through NICS.
        (3) Although most Brady background checks are processed through 
    NICS in seconds, many background checks are delayed if the Federal 
    Bureau of Investigation (FBI) does not have automated access to 
    complete information from the States concerning persons prohibited 
    from possessing or receiving a firearm under Federal or State law.
        (4) Nearly 21,000,000 criminal records are not accessible by 
    NICS and millions of criminal records are missing critical data, 
    such as arrest dispositions, due to data backlogs.
        (5) The primary cause of delay in NICS background checks is the 
    lack of--
            (A) updates and available State criminal disposition 
        records; and
            (B) automated access to information concerning persons 
        prohibited from possessing or receiving a firearm because of 
        mental illness, restraining orders, or misdemeanor convictions 
        for domestic violence.
        (6) Automated access to this information can be improved by--
            (A) computerizing information relating to criminal history, 
        criminal dispositions, mental illness, restraining orders, and 
        misdemeanor convictions for domestic violence; or
            (B) making such information available to NICS in a usable 
        format.
        (7) Helping States to automate these records will reduce delays 
    for law-abiding gun purchasers.
        (8) On March 12, 2002, the senseless shooting, which took the 
    lives of a priest and a parishioner at the Our Lady of Peace Church 
    in Lynbrook, New York, brought attention to the need to improve 
    information-sharing that would enable Federal and State law 
    enforcement agencies to conduct a complete background check on a 
    potential firearm purchaser. The man who committed this double 
    murder had a prior disqualifying mental health commitment and a 
    restraining order against him, but passed a Brady background check 
    because NICS did not have the necessary information to determine 
    that he was ineligible to purchase a firearm under Federal or State 
    law.
        (9) On April 16, 2007, a student with a history of mental 
    illness at the Virginia Polytechnic Institute and State University 
    shot to death 32 students and faculty members, wounded 17 more, and 
    then took his own life. The shooting, the deadliest campus shooting 
    in United States history, renewed the need to improve information-
    sharing that would enable Federal and State law enforcement 
    agencies to conduct complete background checks on potential 
    firearms purchasers. In spite of a proven history of mental 
    illness, the shooter was able to purchase the two firearms used in 
    the shooting. Improved coordination between State and Federal 
    authorities could have ensured that the shooter's disqualifying 
    mental health information was available to NICS.

SEC. 3. DEFINITIONS.

    As used in this Act, the following definitions shall apply:
        (1) Court order.--The term ``court order'' includes a court 
    order (as described in section 922(g)(8) of title 18, United States 
    Code).
        (2) Mental health terms.--The terms ``adjudicated as a mental 
    defective'' and ``committed to a mental institution'' have the same 
    meanings as in section 922(g)(4) of title 18, United States Code.
        (3) Misdemeanor crime of domestic violence.--The term 
    ``misdemeanor crime of domestic violence'' has the meaning given 
    the term in section 921(a)(33) of title 18, United States Code.

                    TITLE I--TRANSMITTAL OF RECORDS

SEC. 101. ENHANCEMENT OF REQUIREMENT THAT FEDERAL DEPARTMENTS AND 
              AGENCIES PROVIDE RELEVANT INFORMATION TO THE NATIONAL 
              INSTANT CRIMINAL BACKGROUND CHECK SYSTEM.

    (a) In General.--Section 103(e)(1) of the Brady Handgun Violence 
Prevention Act (18 U.S.C. 922 note) is amended--
        (1) by striking ``Notwithstanding'' and inserting the 
    following:
            ``(A) In general.--Notwithstanding'';
        (2) by striking ``On request'' and inserting the following:
            ``(B) Request of attorney general.--On request'';
        (3) by striking ``furnish such information'' and inserting 
    ``furnish electronic versions of the information described under 
    subparagraph (A)''; and
        (4) by adding at the end the following:
            ``(C) Quarterly submission to attorney general.--If a 
        Federal department or agency under subparagraph (A) has any 
        record of any person demonstrating that the person falls within 
        one of the categories described in subsection (g) or (n) of 
        section 922 of title 18, United States Code, the head of such 
        department or agency shall, not less frequently than quarterly, 
        provide the pertinent information contained in such record to 
        the Attorney General.
            ``(D) Information updates.--The Federal department or 
        agency, on being made aware that the basis under which a record 
        was made available under subparagraph (A) does not apply, or no 
        longer applies, shall--
                ``(i) update, correct, modify, or remove the record 
            from any database that the agency maintains and makes 
            available to the Attorney General, in accordance with the 
            rules pertaining to that database; and
                ``(ii) notify the Attorney General that such basis no 
            longer applies so that the National Instant Criminal 
            Background Check System is kept up to date.
        The Attorney General upon receiving notice pursuant to clause 
        (ii) shall ensure that the record in the National Instant 
        Criminal Background Check System is updated, corrected, 
        modified, or removed within 30 days of receipt.
            ``(E) Annual report.--The Attorney General shall submit an 
        annual report to Congress that describes the compliance of each 
        department or agency with the provisions of this paragraph.''.
    (b) Provision and Maintenance of NICS Records.--
        (1) Department of homeland security.--The Secretary of Homeland 
    Security shall make available to the Attorney General--
            (A) records, updated not less than quarterly, which are 
        relevant to a determination of whether a person is disqualified 
        from possessing or receiving a firearm under subsection (g) or 
        (n) of section 922 of title 18, United States Code, for use in 
        background checks performed by the National Instant Criminal 
        Background Check System; and
            (B) information regarding all the persons described in 
        subparagraph (A) of this paragraph who have changed their 
        status to a category not identified under section 922(g)(5) of 
        title 18, United States Code, for removal, when applicable, 
        from the National Instant Criminal Background Check System.
        (2) Department of justice.--The Attorney General shall--
            (A) ensure that any information submitted to, or maintained 
        by, the Attorney General under this section is kept accurate 
        and confidential, as required by the laws, regulations, 
        policies, or procedures governing the applicable record system;
            (B) provide for the timely removal and destruction of 
        obsolete and erroneous names and information from the National 
        Instant Criminal Background Check System; and
            (C) work with States to encourage the development of 
        computer systems, which would permit electronic notification to 
        the Attorney General when--
                (i) a court order has been issued, lifted, or otherwise 
            removed by order of the court; or
                (ii) a person has been adjudicated as a mental 
            defective or committed to a mental institution.
    (c) Standard for Adjudications and Commitments Related to Mental 
Health.--
        (1) In general.--No department or agency of the Federal 
    Government may provide to the Attorney General any record of an 
    adjudication related to the mental health of a person or any 
    commitment of a person to a mental institution if--
            (A) the adjudication or commitment, respectively, has been 
        set aside or expunged, or the person has otherwise been fully 
        released or discharged from all mandatory treatment, 
        supervision, or monitoring;
            (B) the person has been found by a court, board, 
        commission, or other lawful authority to no longer suffer from 
        the mental health condition that was the basis of the 
        adjudication or commitment, respectively, or has otherwise been 
        found to be rehabilitated through any procedure available under 
        law; or
            (C) the adjudication or commitment, respectively, is based 
        solely on a medical finding of disability, without an 
        opportunity for a hearing by a court, board, commission, or 
        other lawful authority, and the person has not been adjudicated 
        as a mental defective consistent with section 922(g)(4) of 
        title 18, United States Code, except that nothing in this 
        section or any other provision of law shall prevent a Federal 
        department or agency from providing to the Attorney General any 
        record demonstrating that a person was adjudicated to be not 
        guilty by reason of insanity, or based on lack of mental 
        responsibility, or found incompetent to stand trial, in any 
        criminal case or under the Uniform Code of Military Justice.
        (2) Treatment of certain adjudications and commitments.--
            (A) Program for relief from disabilities.--
                (i) In general.--Each department or agency of the 
            United States that makes any adjudication related to the 
            mental health of a person or imposes any commitment to a 
            mental institution, as described in subsection (d)(4) and 
            (g)(4) of section 922 of title 18, United States Code, 
            shall establish, not later than 120 days after the date of 
            enactment of this Act, a program that permits such a person 
            to apply for relief from the disabilities imposed by such 
            subsections.
                (ii) Process.--Each application for relief submitted 
            under the program required by this subparagraph shall be 
            processed not later than 365 days after the receipt of the 
            application. If a Federal department or agency fails to 
            resolve an application for relief within 365 days for any 
            reason, including a lack of appropriated funds, the 
            department or agency shall be deemed for all purposes to 
            have denied such request for relief without cause. Judicial 
            review of any petitions brought under this clause shall be 
            de novo.
                (iii) Judicial review.--Relief and judicial review with 
            respect to the program required by this subparagraph shall 
            be available according to the standards prescribed in 
            section 925(c) of title 18, United States Code. If the 
            denial of a petition for relief has been reversed after 
            such judicial review, the court shall award the prevailing 
            party, other than the United States, a reasonable 
            attorney's fee for any and all proceedings in relation to 
            attaining such relief, and the United States shall be 
            liable for such fee. Such fee shall be based upon the 
            prevailing rates awarded to public interest legal aid 
            organizations in the relevant community.
            (B) Relief from disabilities.--In the case of an 
        adjudication related to the mental health of a person or a 
        commitment of a person to a mental institution, a record of 
        which may not be provided to the Attorney General under 
        paragraph (1), including because of the absence of a finding 
        described in subparagraph (C) of such paragraph, or from which 
        a person has been granted relief under a program established 
        under subparagraph (A) or (B), or because of a removal of a 
        record under section 103(e)(1)(D) of the Brady Handgun Violence 
        Prevention Act, the adjudication or commitment, respectively, 
        shall be deemed not to have occurred for purposes of 
        subsections (d)(4) and (g)(4) of section 922 of title 18, 
        United States Code. Any Federal agency that grants a person 
        relief from disabilities under this subparagraph shall notify 
        such person that the person is no longer prohibited under 
        922(d)(4) or 922(g)(4) of title 18, United States Code, on 
        account of the relieved disability for which relief was granted 
        pursuant to a proceeding conducted under this subparagraph, 
        with respect to the acquisition, receipt, transfer, shipment, 
        transportation, or possession of firearms.
        (3) Notice requirement.--Effective 30 days after the date of 
    enactment of this Act, any Federal department or agency that 
    conducts proceedings to adjudicate a person as a mental defective 
    under 922(d)(4) or 922(g)(4) of title 18, United States Code, shall 
    provide both oral and written notice to the individual at the 
    commencement of the adjudication process including--
            (A) notice that should the agency adjudicate the person as 
        a mental defective, or should the person be committed to a 
        mental institution, such adjudication, when final, or such 
        commitment, will prohibit the individual from purchasing, 
        possessing, receiving, shipping or transporting a firearm or 
        ammunition under section 922(d)(4) or section 922(g)(4) of 
        title 18, United States Code;
            (B) information about the penalties imposed for unlawful 
        possession, receipt, shipment or transportation of a firearm 
        under section 924(a)(2) of title 18, United States Code; and
            (C) information about the availability of relief from the 
        disabilities imposed by Federal laws with respect to the 
        acquisition, receipt, transfer, shipment, transportation, or 
        possession of firearms.
        (4) Effective date.--Except for paragraph (3), this subsection 
    shall apply to names and other information provided before, on, or 
    after the date of enactment of this Act. Any name or information 
    provided in violation of this subsection (other than in violation 
    of paragraph (3)) before, on, or after such date shall be removed 
    from the National Instant Criminal Background Check System.

SEC. 102. REQUIREMENTS TO OBTAIN WAIVER.

    (a) In General.--Beginning 3 years after the date of the enactment 
of this Act, a State shall be eligible to receive a waiver of the 10 
percent matching requirement for National Criminal History Improvement 
Grants under the Crime Identification Technology Act of 1988 (42 U.S.C. 
14601) if the State provides at least 90 percent of the information 
described in subsection (c). The length of such a waiver shall not 
exceed 2 years.
    (b) State Estimates.--
        (1) Initial state estimate.--
            (A) In general.--To assist the Attorney General in making a 
        determination under subsection (a) of this section, and under 
        section 104, concerning the compliance of the States in 
        providing information to the Attorney General for the purpose 
        of receiving a waiver under subsection (a) of this section, or 
        facing a loss of funds under section 104, by a date not later 
        than 180 days after the date of the enactment of this Act, each 
        State shall provide the Attorney General with a reasonable 
        estimate, as calculated by a method determined by the Attorney 
        General and in accordance with section 104(d), of the number of 
        the records described in subparagraph (C) applicable to such 
        State that concern persons who are prohibited from possessing 
        or receiving a firearm under subsection (g) or (n) of section 
        922 of title 18, United States Code.
            (B) Failure to provide initial estimate.--A State that 
        fails to provide an estimate described in subparagraph (A) by 
        the date required under such subparagraph shall be ineligible 
        to receive any funds under section 103, until such date as it 
        provides such estimate to the Attorney General.
            (C) Record defined.--For purposes of subparagraph (A), a 
        record is the following:
                (i) A record that identifies a person who has been 
            convicted in any court of a crime punishable by 
            imprisonment for a term exceeding 1 year.
                (ii) A record that identifies a person for whom an 
            indictment has been returned for a crime punishable by 
            imprisonment for a term exceeding 1 year that is valid 
            under the laws of the State involved or who is a fugitive 
            from justice, as of the date of the estimate, and for which 
            a record of final disposition is not available.
                (iii) A record that identifies a person who is an 
            unlawful user of, or addicted to a controlled substance (as 
            such terms ``unlawful user'' and ``addicted'' are 
            respectively defined in regulations implementing section 
            922(g)(3) of title 18, United States Code, as in effect on 
            the date of the enactment of this Act) as demonstrated by 
            arrests, convictions, and adjudications, and whose record 
            is not protected from disclosure to the Attorney General 
            under any provision of State or Federal law.
                (iv) A record that identifies a person who has been 
            adjudicated as a mental defective or committed to a mental 
            institution, consistent with section 922(g)(4) of title 18, 
            United States Code, and whose record is not protected from 
            disclosure to the Attorney General under any provision of 
            State or Federal law.
                (v) A record that is electronically available and that 
            identifies a person who, as of the date of such estimate, 
            is subject to a court order described in section 922(g)(8) 
            of title 18, United States Code.
                (vi) A record that is electronically available and that 
            identifies a person convicted in any court of a misdemeanor 
            crime of domestic violence, as defined in section 
            921(a)(33) of title 18, United States Code.
        (2) Scope.--The Attorney General, in determining the compliance 
    of a State under this section or section 104 for the purpose of 
    granting a waiver or imposing a loss of Federal funds, shall assess 
    the total percentage of records provided by the State concerning 
    any event occurring within the prior 20 years, which would 
    disqualify a person from possessing a firearm under subsection (g) 
    or (n) of section 922 of title 18, United States Code.
        (3) Clarification.--Notwithstanding paragraph (2), States shall 
    endeavor to provide the National Instant Criminal Background Check 
    System with all records concerning persons who are prohibited from 
    possessing or receiving a firearm under subsection (g) or (n) of 
    section 922 of title 18, United States Code, regardless of the 
    elapsed time since the disqualifying event.
    (c) Eligibility of State Records for Submission to the National 
Instant Criminal Background Check System.--
        (1) Requirements for eligibility.--
            (A) In general.--From the information collected by a State, 
        the State shall make electronically available to the Attorney 
        General records relevant to a determination of whether a person 
        is disqualified from possessing or receiving a firearm under 
        subsection (g) or (n) of section 922 of title 18, United States 
        Code, or applicable State law.
            (B) NICS updates.--The State, on being made aware that the 
        basis under which a record was made available under 
        subparagraph (A) does not apply, or no longer applies, shall, 
        as soon as practicable--
                (i) update, correct, modify, or remove the record from 
            any database that the Federal or State government maintains 
            and makes available to the National Instant Criminal 
            Background Check System, consistent with the rules 
            pertaining to that database; and
                (ii) notify the Attorney General that such basis no 
            longer applies so that the record system in which the 
            record is maintained is kept up to date.
        The Attorney General upon receiving notice pursuant to clause 
        (ii) shall ensure that the record in the National Instant 
        Criminal Background Check System is updated, corrected, 
        modified, or removed within 30 days of receipt.
            (C) Certification.--To remain eligible for a waiver under 
        subsection (a), a State shall certify to the Attorney General, 
        not less than once during each 2-year period, that at least 90 
        percent of all records described in subparagraph (A) has been 
        made electronically available to the Attorney General in 
        accordance with subparagraph (A).
            (D) Inclusion of all records.--For purposes of this 
        paragraph, a State shall identify and include all of the 
        records described under subparagraph (A) without regard to the 
        age of the record.
        (2) Application to persons convicted of misdemeanor crimes of 
    domestic violence.--The State shall make available to the Attorney 
    General, for use by the National Instant Criminal Background Check 
    System, records relevant to a determination of whether a person has 
    been convicted in any court of a misdemeanor crime of domestic 
    violence. With respect to records relating to such crimes, the 
    State shall provide information specifically describing the offense 
    and the specific section or subsection of the offense for which the 
    defendant has been convicted and the relationship of the defendant 
    to the victim in each case.
        (3) Application to persons who have been adjudicated as a 
    mental defective or committed to a mental institution.--The State 
    shall make available to the Attorney General, for use by the 
    National Instant Criminal Background Check System, the name and 
    other relevant identifying information of persons adjudicated as a 
    mental defective or those committed to mental institutions to 
    assist the Attorney General in enforcing section 922(g)(4) of title 
    18, United States Code.
    (d) Privacy Protections.--For any information provided to the 
Attorney General for use by the National Instant Criminal Background 
Check System, relating to persons prohibited from possessing or 
receiving a firearm under section 922(g)(4) of title 18, United States 
Code, the Attorney General shall work with States and local law 
enforcement and the mental health community to establish regulations 
and protocols for protecting the privacy of information provided to the 
system. The Attorney General shall make every effort to meet with any 
mental health group seeking to express its views concerning these 
regulations and protocols and shall seek to develop regulations as 
expeditiously as practicable.
    (e) Attorney General Report.--Not later than January 31 of each 
year, the Attorney General shall submit to the Committee on the 
Judiciary of the Senate and the Committee on the Judiciary of the House 
of Representatives a report on the progress of States in automating the 
databases containing the information described in subsection (b) and in 
making that information electronically available to the Attorney 
General pursuant to the requirements of subsection (c).

SEC. 103. IMPLEMENTATION ASSISTANCE TO STATES.

    (a) Authorization.--
        (1) In general.--From amounts made available to carry out this 
    section and subject to section 102(b)(1)(B), the Attorney General 
    shall make grants to States and Indian tribal governments, in a 
    manner consistent with the National Criminal History Improvement 
    Program, which shall be used by the States and Indian tribal 
    governments, in conjunction with units of local government and 
    State and local courts, to establish or upgrade information and 
    identification technologies for firearms eligibility 
    determinations. Not less than 3 percent, and no more than 10 
    percent of each grant under this paragraph shall be used to 
    maintain the relief from disabilities program in accordance with 
    section 105.
        (2) Grants to indian tribes.--Up to 5 percent of the grant 
    funding available under this section may be reserved for Indian 
    tribal governments, including tribal judicial systems.
    (b) Use of Grant Amounts.--Grants awarded to States or Indian 
tribes under this section may only be used to--
        (1) create electronic systems, which provide accurate and up-
    to-date information which is directly related to checks under the 
    National Instant Criminal Background Check System (referred to in 
    this section as ``NICS''), including court disposition and 
    corrections records;
        (2) assist States in establishing or enhancing their own 
    capacities to perform NICS background checks;
        (3) supply accurate and timely information to the Attorney 
    General concerning final dispositions of criminal records to 
    databases accessed by NICS;
        (4) supply accurate and timely information to the Attorney 
    General concerning the identity of persons who are prohibited from 
    obtaining a firearm under section 922(g)(4) of title 18, United 
    States Code, to be used by the Federal Bureau of Investigation 
    solely to conduct NICS background checks;
        (5) supply accurate and timely court orders and records of 
    misdemeanor crimes of domestic violence for inclusion in Federal 
    and State law enforcement databases used to conduct NICS background 
    checks;
        (6) collect and analyze data needed to demonstrate levels of 
    State compliance with this Act; and
        (7) maintain the relief from disabilities program in accordance 
    with section 105, but not less than 3 percent, and no more than 10 
    percent of each grant shall be used for this purpose.
    (c) Eligibility.--To be eligible for a grant under this section, a 
State shall certify, to the satisfaction of the Attorney General, that 
the State has implemented a relief from disabilities program in 
accordance with section 105.
    (d) Condition.--As a condition of receiving a grant under this 
section, a State shall specify the projects for which grant amounts 
will be used, and shall use such amounts only as specified. A State 
that violates this subsection shall be liable to the Attorney General 
for the full amount of the grant received under this section.
    (e) Authorization of Appropriations.--
        (1) In general.--There are authorized to be appropriated to 
    carry out this section $125,000,000 for fiscal year 2009, 
    $250,000,000 for fiscal year 2010, $250,000,000 for fiscal year 
    2011, $125,000,000 for fiscal year 2012, and $125,000,000 for 
    fiscal year 2013.
        (2) Allocations.--For fiscal years 2009 and 2010, the Attorney 
    General shall endeavor to allocate at least \1/2\ of the authorized 
    appropriations to those States providing more than 50 percent of 
    the records required to be provided under sections 102 and 103. For 
    fiscal years 2011, 2012, and 2013, the Attorney General shall 
    endeavor to allocate at least \1/2\ of the authorized 
    appropriations to those States providing more than 70 percent of 
    the records required to be provided under section 102 and 103. The 
    allocations in this paragraph shall be subject to the discretion of 
    the Attorney General, who shall have the authority to make 
    adjustments to the distribution of the authorized appropriations as 
    necessary to maximize incentives for State compliance.
    (f) User Fee.--The Federal Bureau of Investigation shall not charge 
a user fee for background checks pursuant to section 922(t) of title 
18, United States Code.

SEC. 104. PENALTIES FOR NONCOMPLIANCE.

    (a) Attorney General Report.--
        (1) In general.--Not later than January 31 of each year, the 
    Attorney General shall submit to the Committee on the Judiciary of 
    the Senate and the Committee on the Judiciary of the House of 
    Representatives a report on the progress of the States in 
    automating the databases containing information described under 
    sections 102 and 103, and in providing that information pursuant to 
    the requirements of sections 102 and 103.
        (2) Authorization of appropriations.--There are authorized to 
    be appropriated to the Department of Justice, such funds as may be 
    necessary to carry out paragraph (1).
    (b) Penalties.--
        (1) Discretionary reduction.--
            (A) During the 2-year period beginning 3 years after the 
        date of enactment of this Act, the Attorney General may 
        withhold not more than 3 percent of the amount that would 
        otherwise be allocated to a State under section 505 of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
        3755) if the State provides less than 50 percent of the records 
        required to be provided under sections 102 and 103.
            (B) During the 5-year period after the expiration of the 
        period referred to in subparagraph (A), the Attorney General 
        may withhold not more than 4 percent of the amount that would 
        otherwise be allocated to a State under section 505 of the 
        Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
        3755) if the State provides less than 70 percent of the records 
        required to be provided under sections 102 and 103.
        (2) Mandatory reduction.--After the expiration of the periods 
    referred to in paragraph (1), the Attorney General shall withhold 5 
    percent of the amount that would otherwise be allocated to a State 
    under section 505 of the Omnibus Crime Control and Safe Streets Act 
    of 1968 (42 U.S.C. 3755), if the State provides less than 90 
    percent of the records required to be provided under sections 102 
    and 103.
        (3) Waiver by attorney general.--The Attorney General may waive 
    the applicability of paragraph (2) to a State if the State provides 
    substantial evidence, as determined by the Attorney General, that 
    the State is making a reasonable effort to comply with the 
    requirements of sections 102 and 103, including an inability to 
    comply due to court order or other legal restriction.
    (c) Reallocation.--Any funds that are not allocated to a State 
because of the failure of the State to comply with the requirements of 
this Act shall be reallocated to States that meet such requirements.
    (d) Methodology.--The method established to calculate the number of 
records to be reported, as set forth in section 102(b)(1)(A), and State 
compliance with the required level of reporting under sections 102 and 
103 shall be determined by the Attorney General. The Attorney General 
shall calculate the methodology based on the total number of records to 
be reported from all subcategories of records, as described in section 
102(b)(1)(C).

SEC. 105. RELIEF FROM DISABILITIES PROGRAM REQUIRED AS CONDITION FOR 
              PARTICIPATION IN GRANT PROGRAMS.

    (a) Program Described.--A relief from disabilities program is 
implemented by a State in accordance with this section if the program--
        (1) permits a person who, pursuant to State law, has been 
    adjudicated as described in subsection (g)(4) of section 922 of 
    title 18, United States Code, or has been committed to a mental 
    institution, to apply to the State for relief from the disabilities 
    imposed by subsections (d)(4) and (g)(4) of such section by reason 
    of the adjudication or commitment;
        (2) provides that a State court, board, commission, or other 
    lawful authority shall grant the relief, pursuant to State law and 
    in accordance with the principles of due process, if the 
    circumstances regarding the disabilities referred to in paragraph 
    (1), and the person's record and reputation, are such that the 
    person will not be likely to act in a manner dangerous to public 
    safety and that the granting of the relief would not be contrary to 
    the public interest; and
        (3) permits a person whose application for the relief is denied 
    to file a petition with the State court of appropriate jurisdiction 
    for a de novo judicial review of the denial.
    (b) Authority To Provide Relief From Certain Disabilities With 
Respect to Firearms.--If, under a State relief from disabilities 
program implemented in accordance with this section, an application for 
relief referred to in subsection (a)(1) of this section is granted with 
respect to an adjudication or a commitment to a mental institution or 
based upon a removal of a record under section 102(c)(1)(B), the 
adjudication or commitment, as the case may be, is deemed not to have 
occurred for purposes of subsections (d)(4) and (g)(4) of section 922 
of title 18, United States Code.

SEC. 106. ILLEGAL IMMIGRANT GUN PURCHASE NOTIFICATION.

    (a) In General.--Notwithstanding any other provision of law or of 
this Act, all records obtained by the National Instant Criminal 
Background Check system relevant to whether an individual is prohibited 
from possessing a firearm because such person is an alien illegally or 
unlawfully in the United States shall be made available to U.S. 
Immigration and Customs Enforcement.
    (b) Regulations.--The Attorney General, at his or her discretion, 
shall promulgate guidelines relevant to what records relevant to 
illegal aliens shall be provided pursuant to the provisions of this 
Act.

 TITLE II--FOCUSING FEDERAL ASSISTANCE ON THE IMPROVEMENT OF RELEVANT 
                                RECORDS

SEC. 201. CONTINUING EVALUATIONS.

    (a) Evaluation Required.--The Director of the Bureau of Justice 
Statistics (referred to in this section as the ``Director'') shall 
study and evaluate the operations of the National Instant Criminal 
Background Check System. Such study and evaluation shall include 
compilations and analyses of the operations and record systems of the 
agencies and organizations necessary to support such System.
    (b) Report on Grants.--Not later than January 31 of each year, the 
Director shall submit to Congress a report containing the estimates 
submitted by the States under section 102(b).
    (c) Report on Best Practices.--Not later than January 31 of each 
year, the Director shall submit to Congress, and to each State 
participating in the National Criminal History Improvement Program, a 
report of the practices of the States regarding the collection, 
maintenance, automation, and transmittal of information relevant to 
determining whether a person is prohibited from possessing or receiving 
a firearm by Federal or State law, by the State or any other agency, or 
any other records relevant to the National Instant Criminal Background 
Check System, that the Director considers to be best practices.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
2009 through 2013 to complete the studies, evaluations, and reports 
required under this section.

    TITLE III--GRANTS TO STATE COURT SYSTEMS FOR THE IMPROVEMENT IN 
           AUTOMATION AND TRANSMITTAL OF DISPOSITION RECORDS

SEC. 301. DISPOSITION RECORDS AUTOMATION AND TRANSMITTAL IMPROVEMENT 
              GRANTS.

    (a) Grants Authorized.--From amounts made available to carry out 
this section, the Attorney General shall make grants to each State, 
consistent with State plans for the integration, automation, and 
accessibility of criminal history records, for use by the State court 
system to improve the automation and transmittal of criminal history 
dispositions, records relevant to determining whether a person has been 
convicted of a misdemeanor crime of domestic violence, court orders, 
and mental health adjudications or commitments, to Federal and State 
record repositories in accordance with sections 102 and 103 and the 
National Criminal History Improvement Program.
    (b) Grants to Indian Tribes.--Up to 5 percent of the grant funding 
available under this section may be reserved for Indian tribal 
governments for use by Indian tribal judicial systems.
    (c) Use of Funds.--Amounts granted under this section shall be used 
by the State court system only--
        (1) to carry out, as necessary, assessments of the capabilities 
    of the courts of the State for the automation and transmission of 
    arrest and conviction records, court orders, and mental health 
    adjudications or commitments to Federal and State record 
    repositories; and
        (2) to implement policies, systems, and procedures for the 
    automation and transmission of arrest and conviction records, court 
    orders, and mental health adjudications or commitments to Federal 
    and State record repositories.
    (d) Eligibility.--To be eligible to receive a grant under this 
section, a State shall certify, to the satisfaction of the Attorney 
General, that the State has implemented a relief from disabilities 
program in accordance with section 105.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Attorney General to carry out this section 
$62,500,000 for fiscal year 2009, $125,000,000 for fiscal year 2010, 
$125,000,000 for fiscal year 2011, $62,500,000 for fiscal year 2012, 
and $62,500,000 for fiscal year 2013.

                          TITLE IV--GAO AUDIT

SEC. 401. GAO AUDIT.

    (a) In General.--The Comptroller General of the United States shall 
conduct an audit of the expenditure of all funds appropriated for 
criminal records improvement pursuant to section 106(b) of the Brady 
Handgun Violence Prevention Act (Public Law 103-159) to determine if 
the funds were expended for the purposes authorized by the Act and how 
those funds were expended for those purposes or were otherwise 
expended.
    (b) Report.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General shall submit a report to Congress 
describing the findings of the audit conducted pursuant to subsection 
(a).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.