House Bill No. 461 introduces new regulations concerning the transfer of firearms in Texas by adding Chapter 205 to the Business & Commerce Code. This chapter establishes definitions related to firearm transfers, including terms such as "Department," "Firearm," and "Licensed firearms dealer." It outlines the requirements for documenting private firearm transfers, mandating that individuals who are not licensed dealers must use a specific form to document the sale or transfer of a firearm. Additionally, it sets a limit on the number of firearms that can be transferred by an individual to five per year unless they are a licensed dealer. Violations of these provisions are classified as Class C misdemeanors.

The bill also mandates that a national instant criminal background check must be conducted before any firearm transfer can occur, unless the transfer is made to a licensed dealer. Licensed dealers are required to perform these background checks and may charge a reasonable fee for their services. If a dealer determines that the proposed transferee is not legally allowed to possess a firearm, they must return the firearm to the original owner. Violations of the background check requirements are classified as Class A misdemeanors. The act is set to take effect on September 1, 2025.

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