The HCCA seeks to strengthen the Federal regulatory structure created by the Gun Control Act of 1968. Examination of current Federal, State, and local firearms regulations shows that almost two-thirds of the population is already covered by a requirement that prospective handgun buyers undergo a criminal records check for all handgun purchasers, and requiring manufacturers to create and maintain a registration system. Other provisions deal with owner liability, victim compensation, criminal sentencing, and dealers' fees. Although implementation of the act's licensing and registration provisions poses no fundamental problems, several issues deserve close attention during Congressional hearings on the bill. These issues include the feasibility of enforcing the requirement that all handgun sales be channeled through dealers, the completeness of currently available criminal records files, and the length of time required for checks of criminal records. The total annual cost of registration and licensing for 4 million transactions per year would be about $30 million, for an average cost of $7.50 per transaction. The division of this cost between taxpapers and handgun purchasers will depend on whether State and Federal excise taxes on handguns are increased. Tables, footnotes, and appendixes describing five states' transfer control systems, the status of State criminal history records, and a cost analysis of the recordkeeping requirements of HCCA are provided.