1. Short title This Act may be cited as the Background Check Point of Contact Act of 2023 . 2. Grants established (a) In general (1) Establishment The Attorney General may make an annual grant of not more than $1,000,000 to each eligible State that has conformed to the requirements of this Act. Such grant may be renewed for each year that the State remains in such conformity. The grant shall be used for the establishment, operation, and maintenance of a point-of-contact system as set forth in section 3. (2) Authorization of appropriations There are authorized to carry out this program not more than $10,000,000 each fiscal year. (3) Matching requirement The Federal share of the cost of a point-of-contact system carried out using grant funds may not exceed 25 percent. (b) Preference for other grants The Attorney General shall give preference in awards of any discretionary grant administered by the Bureau of Justice Assistance to a State that has conformed its laws in accordance with this Act. 3. Point-of-contact systems required To be in compliance with this section, a State shall conform its laws to the following: (1) A point-of-contact system for the sale or transfer of a firearm shall be established or maintained, under which a person licensed under section 923 of title 18, United States Code, may verify that the sale or transfer would be lawful. (2) A sale or transfer of a firearm may not be completed unless the parties to the sale or transfer receive an approval number issued by the point-of-contact system not later than 10 days after the sale or transfer is initiated. (3) The point-of-contact system may not issue an approval number if the system cannot confirm that the sale or transfer would be lawful. (4) A hotline shall be established, to be operated by the State, to be used by a person licensed under section 923 of title 18, United States Code, for purposes of contacting the national instant criminal background check system. (5) A fund shall be established by the State for the operation of the