Indiana used to exempt and now they are not. I have read the letter the ATF sent to FFL dealers the ATF has on thier web page here is a portion of the letter (Recently, the ISP informed ATF that although they will continue to conduct NICS checks on all applicants for licenses to carry handguns, effective October 1, 2003, the ISP only will apply State law in determining if a license should be denied. Accordingly, licenses may be issued to persons prohibited from possessing firearms under Federal law. Therefore, effective October 1, 2003, Indiana licenses to carry handguns will no longer qualify as alternatives to the NICS background check required under the Brady Law. This means that starting October 1, 2003, an FFL must contact the FBI to conduct a NICS check on all purchasers, including those possessing an Indiana license to carry a handgun.). What does Indiana not recognize the ATF does?