Trafficking Reduction And Criminal Enforcement (TRACE) Act

The TRACE Act requires firearm manufacturers to add a second, hidden serial number inside the firearm's frame or visible only under infrared light, starting 12 months after enactment. It also extends the retention period for instant background check records from 180 days to 180 days after compliance (previously 180 days from the check date) and mandates that licensed dealers conduct physical inventory checks of their firearms. These provisions directly affect firearm manufacturers, dealers, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which must implement the rules within 180 days. The bill aims to improve tracking of firearms and enforcement of background checks, with no mention of new taxes or fees in related appropriations.