Trafficking Reduction And Criminal Enforcement (TRACE) Act
This bill modifies provisions related to firearms tracing.
First, the bill directs the Department of Justice to promulgate regulations that require each firearm manufactured in the United States to be marked with a serial number that is located inside the firearm's receiver or that is visible only in infrared light, in addition to the serial number mark otherwise required.
Next, it requires National Instant Criminal Background Check System records to be maintained for at least 180 days.
The bill also requires each licensed firearms dealer to conduct a physical check of their firearms business inventory.
Finally, it removes certain limitations on the use of firearms tracing data.
To prevent the illegal sale of firearms, 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.

    This Act may be cited as the ``Trafficking Reduction And Criminal 
Enforcement (TRACE) Act''.

SEC. 2. REGULATORY REQUIREMENT TO MARK FIREARMS WITH SECOND, HIDDEN 
              SERIAL NUMBER.

    (a) In General.--Within 12 months after the date of the enactment 
of this Act, the Attorney General shall promulgate final regulations 
that require each firearm manufactured in the United States on or after 
the effective date of the regulation, to be marked with a serial number 
that is located inside the receiver of the firearm or that is visible 
only in infrared light, in addition to the serial number with which the 
firearm is otherwise required by law to be marked.
    (b) Definition of Receiver.--Section 921(a) of title 18, United 
States Code, is amended--
            (1) in paragraph (3)--
                    (A) by inserting ``, including an unfinished frame 
                or receiver'' after ``such weapon''; and
                    (B) by striking ``or (D) any destructive device'' 
                and inserting ``; (D) any destructive device; or (E) 
                any combination of parts designed or intended for use 
                in converting any device into a firearm and from which 
                a firearm may be readily assembled'';
            (2) in paragraph (10)--
                    (A) by striking ``and the'' and inserting ``the''; 
                and
                    (B) by inserting ``; and the term `manufacturing 
                firearms' shall include assembling a functional firearm 
                from an unfinished frame or receiver or from molding, 
                machining, or 3D printing a frame or receiver, and 
                shall not include making or fitting special barrels, 
                stocks, or trigger mechanisms to firearms'' before the 
                period; and
            (3) by inserting after paragraph (29) the following:
            ``(30) The term `unfinished frame or receiver' means any 
        forging, casting, printing, extrusion, machined body or similar 
        article that--
                    ``(A) has reached a stage in manufacture at which 
                it may readily be completed, assembled, or converted to 
                be used as the frame or receiver of a functional 
                firearm; or
                    ``(B) is marketed or sold to the public to become 
                or be used as the frame or receiver of a functional 
                firearm once completed, assembled, or converted.''.

SEC. 3. REQUIREMENT TO PRESERVE INSTANT CRIMINAL BACKGROUND CHECK 
              RECORDS FOR 180 DAYS.

    (a) In General.--Section 922(t)(2)(C) of title 18, United States 
Code, is amended by inserting ``after the 180-day period that begins 
with the date the system complies with subparagraphs (A) and (B),'' 
before ``destroy''.
    (b) Conforming Amendment.--Section 511 of division B of the 
Consolidated and Further Continuing Appropriations Act, 2012 (34 U.S.C. 
40901 note; Public Law 112-55; 125 Stat. 632) is amended--
            (1) by striking ``for--'' and all that follows through 
        ``(1)''; and
            (2) by striking the semicolon and all that follows and 
        inserting a period.
    (c) Regulations.--Within 180 days after the date of the enactment 
of this Act, the Attorney General shall prescribe regulations to 
implement the amendments made by this section.

SEC. 4. REQUIREMENT THAT LICENSED FIREARMS DEALERS CONDUCT PHYSICAL 
              CHECK OF THEIR FIREARMS BUSINESS INVENTORY.

    (a) In General.--Section 923(g) of title 18, United States Code, is 
amended by adding at the end the following:
    ``(8) Each licensee shall conduct a physical check of the firearms 
inventory of the business of the licensee licensed under this chapter, 
in accordance with regulations which shall be prescribed by the 
Attorney General.''.
    (b) Conforming Amendment.--The matter under the heading ``Bureau of 
Alcohol, Tobacco, Firearms and Explosives--salaries and expenses'' in 
title II of division B of the Consolidated and Further Continuing 
Appropriations Act, 2013 (18 U.S.C. 923 note; Public Law 113-6; 127 
Stat. 247-248) is amended by striking the 5th proviso.
    (c) Regulations.--Within 180 days after the date of the enactment 
of this Act, the Attorney General shall prescribe regulations to 
implement section 923(g)(8) of title 18, United States Code.

SEC. 5. ELIMINATION OF CERTAIN LIMITATIONS.

    (a) Consolidated and Further Continuing Appropriations Act, 2012.--
Title II of division B of the Consolidated and Further Continuing 
Appropriations Act, 2012 (18 U.S.C. 923 note; Public Law 112-55; 125 
Stat. 609-610) is amended in the matter under the heading ``Bureau of 
Alcohol, Tobacco, Firearms and Explosives--salaries and expenses'' by 
striking the 1st, 6th, and 7th provisos.
    (b) Consolidated Appropriations Act, 2010.--Division B of the 
Consolidated Appropriations Act, 2010 (Public Law 111-117) is amended--
            (1) in title II--
                    (A) in the 6th proviso under the heading ``Bureau 
                of Alcohol, Tobacco, Firearms and Explosives--salaries 
                and expenses'' by striking ``beginning in fiscal year 
                2010 and thereafter'' and inserting ``in fiscal year 
                2010''; and
                    (B) in the matter under the heading ``Bureau of 
                Alcohol, Tobacco, Firearms and Explosives--salaries and 
                expenses'' by striking the 7th proviso; and
            (2) in section 511, to read as follows:
    ``Sec. 511.  None of the funds appropriated pursuant to this Act or 
any other provision of law may be used for the implementation of any 
tax or fee in connection with the implementation of subsection 922(t) 
of title 18, United States Code.''.
    (c) Omnibus Appropriations Act, 2009.--Division B of the Omnibus 
Appropriations Act, 2009 (Public Law 111-8) is amended--
            (1) in title II--
                    (A) in the 6th proviso under the heading ``Bureau 
                of Alcohol, Tobacco, Firearms and Explosives--salaries 
                and expenses'' by striking ``beginning in fiscal year 
                2009 and thereafter'' and inserting ``in fiscal year 
                2009''; and
                    (B) in the matter under the heading ``Bureau of 
                Alcohol, Tobacco, Firearms and Explosives--salaries and 
                expenses'' by striking the 7th proviso; and
            (2) in section 511, to read as follows:
    ``Sec. 511.  None of the funds appropriated pursuant to this Act or 
any other provision of law may be used for the implementation of any 
tax or fee in connection with the implementation of subsection 922(t) 
of title 18, United States Code.''.
    (d) Consolidated Appropriations Act, 2008.--Division B of the 
Consolidated Appropriations Act, 2008 (Public Law 110-161) is amended--
            (1) in title II--
                    (A) in the 6th proviso under the heading ``Bureau 
                of Alcohol, Tobacco, Firearms and Explosives--salaries 
                and expenses'' by striking ``beginning in fiscal year 
                2008 and thereafter'' and inserting ``in fiscal year 
                2008''; and
                    (B) in the matter under the heading ``Bureau of 
                Alcohol, Tobacco, Firearms and Explosives--salaries and 
                expenses'' by striking the 7th proviso; and
            (2) in section 512, to read as follows:
    ``Sec. 512.  None of the funds appropriated pursuant to this Act or 
any other provision of law may be used for the implementation of any 
tax or fee in connection with the implementation of subsection 922(t) 
of title 18, United States Code.''.
    (e) Science, State, Justice, Commerce, and Related Agencies 
Appropriations Act, 2006.--The Science, State, Justice, Commerce, and 
Related Agencies Appropriations Act, 2006 (Public Law 109-108) is 
amended--
            (1) in title I--
                    (A) in the 6th proviso under the heading ``Bureau 
                of Alcohol, Tobacco, Firearms and Explosives--salaries 
                and expenses'' by striking ``with respect to any fiscal 
                year''; and
                    (B) in the matter under the heading ``Bureau of 
                Alcohol, Tobacco, Firearms and Explosives--salaries and 
                expenses'' by striking the 7th proviso; and
            (2) in section 611, to read as follows:
    ``Sec. 611.  None of the funds appropriated pursuant to this Act or 
any other provision of law may be used for the implementation of any 
tax or fee in connection with the implementation of subsection 922(t) 
of title 18, United States Code.''.
    (f) Consolidated Appropriations Act, 2005.--Division B of the 
Science, State, Justice, Commerce, and Related Agencies Appropriations 
Act, 2005 (Public Law 108-447) is amended--
            (1) in title I--
                    (A) in the 6th proviso under the heading ``Bureau 
                of Alcohol, Tobacco, Firearms and Explosives--salaries 
                and expenses'' by striking ``with respect to any fiscal 
                year''; and
                    (B) in the matter under the heading ``Bureau of 
                Alcohol, Tobacco, Firearms and Explosives--salaries and 
                expenses'' by striking the 7th proviso; and
            (2) in section 615, to read as follows:
    ``Sec. 615.  None of the funds appropriated pursuant to this Act or 
any other provision of law may be used for the implementation of any 
tax or fee in connection with the implementation of subsection 922(t) 
of title 18, United States Code.''.
    (g) Consolidated Appropriations Act, 2004.--Division B of the 
Science, State, Justice, Commerce, and Related Agencies Appropriations 
Act, 2004 (Public Law 108-199) is amended--
            (1) in the matter under the heading ``Bureau of Alcohol, 
        Tobacco, Firearms and Explosives--salaries and expenses'' by 
        striking the 7th proviso; and
            (2) in section 617(a), to read as follows:
    ``(a) None of the funds appropriated pursuant to this Act or any 
other provision of law may be used for the implementation of any tax or 
fee in connection with the implementation of subsection 922(t) of title 
18, United States Code.''.
    (h) Consolidated Appropriations Resolution, 2003.--Division J of 
the Consolidated Appropriations Resolution, 2003 (5 U.S.C. 552 note; 
Public Law 108-7; 117 Stat. 473-474) is amended in section 644 by 
striking ``or any other Act with respect to any fiscal year''.
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Trafficking Reduction And Criminal Enforcement (TRACE) Act
To prevent the illegal sale of firearms, and for other purposes.
Trafficking Reduction And Criminal Enforcement (TRACE) Act
Rep. Quigley, Mike