Highlights:
- States that it is illegal to sell or transfer a gun to an individual who does not have a permit without completing a background check or five business days elapsing
- Directs the Attorney General to establish a national instant criminal background check system within five years of enactment
- Requires the purchaser of a firearm to provide a statement that he or she is not under indictment or convicted of a crime, a fugitive from justice, addicted or unlawful user of a controlled substance, "mentally defective" or been committed to a mental institution, dishonorably discharged from the Armed Services, an undocumented individual or renounced American citizenship to the local chief law enforcement officer
- Authorizes the sale of a handgun if the life of purchaser or his or her families' life is in danger, as certified by the chief law enforcement officer in the area where the purchaser lives
- Exempts gun transfers from these requirements when the background checks are impractical due to the number of law enforcement officers, the lack of telecommunications facilities or the remoteness of a business
- Authorizes $200 million in grants per year to improve and upgrade criminal records
- Prohibits the transferor of the handgun from disclosing any private information he or she receives through the background check to anyone besides the transferee
- Requires law enforcement officers to destroy background check information on an individual within 20 business days
- Stipulates that no local government or federal employee can be liable for failure to prevent the transfer of a firearm to an individual who is not lawfully allowed to receive a firearm or for preventing the transfer of a firearm to an individual who can lawfully receive a firearm
- Allows an individual who is wrongly denied a firearm to take action in order to correct the false information and get the transfer of the firearm approved
- Sets penalties for violating the background check requirements of up to a $1,000 fine, up to one year imprisonment or both