To amend title 18, United States Code, to prohibit the private transfer of a handgun or ammunition to any person who does not have a State permit to possess the handgun or ammunition.

Amends the Federal criminal code to prohibit an individual not licensed to deal in firearms or ammunition under Federal law (unlicensed individual) from transferring a handgun or ammunition to another unlicensed individual unless: (1) the transferee has presented to the transferor a valid permit, issued by the State in which the transfer occurs, which allows the transferee to possess the handgun or ammunition; and (2) the transferor has made a record containing specified information.

Prohibits an unlicensed individual who engages in such a transfer from failing to transmit such record to the chief law enforcement officer of the transferee's place of residence within seven days after the transfer.

Prescribes penalties.