My thoughts and if they HAD to go to universal background checks...
I'd overhaul the entire process to make it more about the individual rather than the firearm. You have the 4473, right? Why does it require having a firearm type and serial number on the second page? What's the point except, as I pointed out to Hog, to have a record of the transaction of a specific firearm?
And why hasn't the NRA blown up the ATF and FBI over knowing EXACTLY where the little turd bought that rifle if they don't have a database of firearms transfers? There's a good question to ask. Anyway...
I'd put nothing but personal data on the new 4473 and do the background check on the individual. Obviously, I'd have them run the serial number on the firearm to ensure it's not stolen or anything, but nothing on the record has any firearms data. Why? (Asking for luther and LG) Because it's not about the firearm. It's about the individual. Person to person sales are just that. Treat an FFL like an intermediary that does nothing more than run the check and little else. And after 15 days, that record gets destroyed in accordance with the new law that goes along with this. However, have a number for the FFL to cover their backside. "Check #54321 via NICS came back clean." NICS can keep a file with zero personal information save to say "yes, FFL John Smith ran a check with #54321 and the buyer was cleared." Make it a law that keeping personal data on the transaction will result in prison time. (that's for you Louder)
How would FFLs account for the firearms sold? Easy. "Serial # 1234567, Rifle, Bravo Company, private sale" and record the date of transfer as well as the background check number. Covers them, covers the government, covers everyone.
How to screen for mental illness? Easy. CWV came up with the option to waive the right to medical privacy when purchasing a firearm. Such information, metal illness for example, would be entered into the NICS system to flag an individual. Should keep firearms out of the hands of those that shouldn't have them. Are some going to slip through the cracks? Of course they will. But those flagged in advance can be stopped.
As to what conditions would get flagged, that's a different debate. However, as I stated this morning, the same doc that puts you on the list has to be the one that takes you off. Now if it's determined said doctor is abusing the system (let's say two other doctors give a conflicting report clearing the individual), said doctor must defend his report or risk losing his license if they cannot come up with a good reason the person is staying on the list. If it comes down to (and it would from time to time) an anti-gun stance, that person's professional career may end because of a political stance. So, put some teeth into revoking someone's right because your personal beliefs got in the way.
Now, DTH brought up the point about the no fly/no buy list they had going. I'll admit, he has a point. However, I don't buy this "that would tip them off if they knew that!" nonsense. If the FBI or other such agency reasonably believes a person to be a threat, they've got way more information than just a hunch. So, written into the same law would be the requirement to inform a person in writing of their status as well as the avenues to appeal the decision. At that point, it's on the government to provide the burden of proof as to your alleged terrorist/criminal activities. (not that I trust the courts very much either these days, but there it is)
To me, background checks should be focused on the individual rather than what they are buying. FFLs can keep a record of what they sell, even go so far as to send it to the BATFE if it floats their boat for stats on what is sold on a monthly and yearly basis. Just not to who.
Just some thoughts.