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Following is the text of the
settlement
agreement signed by Smith & Wesson.
March 17, 2000
Settlement Document
AGREEMENT
Preamble
The manufacturer parties to the Agreement and the Department of
the Treasury, the Department
of Housing and Urban Development, and the undersigned state,
city and county parties to the
Agreement enter into this Agreement to reduce the criminal misuse
of firearms, combat the
illegal acquisition, possession and trafficking of firearms,
reduce the incidence of firearms
accidents, and educate the public on the safe handling and storage
of firearms. Furthermore, the
manufacturer parties to the Agreement enter into this Agreement
as a continuation of their
efforts to make their firearms as safe as practicable for their
customers and the public.
Accordingly, in consideration of the commitments set forth below:
1.The undersigned state, city, and county parties
to the Agreement dismiss the
manufacturer parties to the Agreement with
prejudice from the lawsuits specified in
Appendix A subject to any consent orders entered
pursuant to paragraph VIII; and
2.The undersigned state, city and federal parties
to the Agreement agree to refrain from
filing suit against the manufacturer parties
to the Agreement on an equivalent cause of
action.
The parties agree that this Agreement constitutes the full and
complete settlement of any and all
claims that were raised or could have been raised in the subject
litigation. The parties agree
further that this Agreement does not constitute an admission
of any violation of law, rule or
regulation by the manufacturer parties to the Agreement, or any
of their employees. Nothing in
this Agreement shall be construed to be an admission of liability.
The adoption of standards for
firearms design and distribution in this Agreement shall not
be construed as an admission by the
manufacturer parties to the Agreement that practices they engaged
in prior to the execution of
this Agreement were negligent
I. Safety and design.
A.Each firearm make and model sold by each
manufacturer party to this Agreement shall
be tested by ATF or an agreed upon proofing
entity against the following standards.
Existing makes and models shall meet these
standards within 60 days of execution of this
Agreement unless a longer period is specified
in the standard. New makes and models
shall not be manufactured and sold after the
execution of this Agreement unless they
conform to these standards.
1. Standards applicable to all handguns:
a.Second "hidden" serial
number. The gun must have both a visible serial
number on the exterior
of the frame or receiver, as well as a second serial
number hidden on the
interior of frame or receiver (e.g,., under the grips) or
visible only with
the aid of an optical instrument.
b.External locking
device. As an interim measure, until the implementation of
I.A.1.c, within 60
days of execution of the Agreement, each firearm shall be
supplied with an external
locking device that effectively prevents the operation
of the firearm when
locked.
c.Internal locking
device. Within 24 months of execution of the Agreement,
each firearm shall
have a built-in, on-board locking system, by which the
firearm can only be
operated with a key or combination or other mechanism
unique to that gun.
d.Authorized user technology.
The manufacturer parties to this Agreement
shall each commit
two percent of annual firearms sales revenues to the
development of a technology
that recognizes only authorized users and permits a
gun to be used only
by authorized persons. Within 36 months of the date of
execution of this
Agreement, this technology shall be incorporated in all new
firearm designs, with
the exception of curios and collectors' firearms. This
requirement does not
apply to existing designs currently in production.
If the eight firearms
manufacturers and/or importers with the largest United
States firearms sales
volume agree to incorporate authorized user technology in
all firearms, the
manufacturer parties to this Agreement will incorporate
authorized user technology
in all firearms.
e.Child safety. Within
12 months of execution of the Agreement, each firearm
shall be designed
so that it cannot be readily operated by a child under the age
of 6, Such mechanisms
include: making the trigger pull resistance at least ten
pounds in the double
action mode; or designing the firing mechanism so that an
average five year
old's hands would be too small to operate the gun; or
requiring multiple,
sequenced actions in order to fire the gun.
f.Minimum barrel length.
Each firearm make and model must have a barrel
length of at least
3", unless it has an average group diameter test result of 1.7" or
less at seven yards,
3.9" or less at 14 yards, and 6.3" or less at 21 yards. The
average group diameter
test result is the arithmetic mean of the results of three
separate trials, each
performed on a different sample firearm of the make and
model at issue. For
each trial, the firearm shall fire five rounds at a target from
the specified distance
and the largest spread in inches between the center of any
of the holes made
in a test target shall be the result of the trial.
g.Performance test:
A sample of each firearm make and model will be
test-fired with "proof
cartridges" (cartridges loaded to generate excess pressure
as set forth in accepted
specifications for proof cartridges) to ensure the
integrity of the material.
At least one cartridge shall be fired from each chamber.
Following this test
firing, the firearm will be examined for hairline cracks or
other signs of material
failure and will pass this test only if there are no hairline
cracks or other signs
of material failure. Each firearm make and model shall
also pass the following
performance test: the gun shall fire 600 rounds, stopping
only every 100 rounds
to tighten any loose screws and to clean the gun (if
required by the cleaning
schedule recommended in the manual), or as needed to
refill the empty magazine
or cylinder to capacity before continuing. For any gun
that loads other than
with a detachable magazine, the tester shall pause every 50
rounds for ten minutes.
The tester shall use the ammunition recommended in the
user's manual, or
if none is recommended, any standard ammunition of the
correct caliber in
new condition. A gun shall pass this test if it fires the first 20
rounds without a malfunction
and the full 600 rounds with no more than 6
malfunctions and without
any crack or breakage of any operating part of the gun
that increases the
danger of injury. Malfunctions caused by failure to clean and
lubricate, or by defective
ammunition, shall not be counted.
h.Drop test. Pass the
more rigorous of (a) the SAAMI Standard drop test in
effect on the date
the firearm is sold, or (b) the following test: The gun shall be
test-loaded, set such
that it is ready to fire and dropped onto a steel plate or
equivalent material
of similar hardness from a height of one meter from each of
the following positions:
(1) normal firing position; (2) upside down; (3) on the
grip; (4) on the muzzle;
(5) on either side; and (6) on the exposed hammer or
striker (or, if no
exposed hammer or striker, on the rearmost part of the gun). If
the gun is so designed
so that its hammer or striker may be set in other positions,
it shall be tested
with the hammer or striker in each such position (but otherwise
ready to fire).
2. Additional standards for pistols:
a.Safety device. The
pistol must have a positive manually operated safety
device as determined
by standards relating to imported guns promulgated by
ATF.
b. Minimum length and
height standards. The pistol's combined length and
height must not be
less than 10" with the height being at least 4" and the length
being at least 6",
unless it has an average group diameter test result of 1.7" or
less at seven yards,
3.9" or less at 14 yards, and 6.3" or less at 21 yds. The
average group diameter
test result is the arithmetic mean of the results of three
separate trials, each
performed on a different sample firearm of the make and
model at issue. For
each trial, the firearm shall fire five rounds at a target from
the specified distance
and the largest spread in inches between the center of any
of the holes made
in a test target shall be the result of the trial.
c. Magazine disconnector.
Within 12 months of execution of the Agreement,
each pistol shall
have a magazine disconnector available for those customers
who desire the feature.
d. Chamber load indicator.
Within 12 months of the execution of the
Agreement, each pistol
shall have a chamber load indicator painted a prominent,
contrasting color
or a feature that allows the operator physically to see the
round in the chamber.
e.Large capacity magazines.
No pistol make or model designed after January
1, 2000 shall be able
to accept magazines manufactured prior to September 14,
1994, with a greater
than 10 round capacity, and such models shall not be
capable of being easily
modified to accept such magazines. Nor shall
ammunition magazines
that are able to accept more than 10 rounds be sold by
the manufacturer parties
to this Agreement or their authorized dealers and
distributors. See
Part II.A.1.h, below.
f.Additional safety features. Each pistol must have a firing pin block or lock.
3.Additional standard for revolvers. Each revolver
make and model must pass a safety
test. Each make and model must have a safety
feature which automatically (for a double
action revolver) or by manual operation (for
a single action revolver) causes the hammer
to retract to a point where the firing pin
does not rest upon the primer of the cartridge. The
safety device must withstand the impact of
a weight equal to the weight of the revolver
dropping from a distance of 1 meter in a line
parallel to the barrel upon the rear of the
hammer spur, a total of 5 times.
B. Law enforcement and military exception.
An exception to a requirement of paragraph
A may be granted for firearms manufactured
or imported for sale to a law enforcement
agency or the military if the law enforcement
agency or military organization certifies to
the manufacturer party to this Agreement that
the exception is necessary for official
purposes. Where a law enforcement agency authorizes
or requires its officers to purchase
firearms individually for official use, an
appropriate certification from the agency will be
permitted to apply to sales to a number of
individual officers. The manufacturer party to
this Agreement shall maintain the certification
in its records and provide a copy to the
Oversight Commission. Firearms sold to law
enforcement or the military pursuant to this
exception, which do not comply with the design
standards of this Agreement, will be
accompanied by a statement:
1."On (date), (manufacturer
parties to this Agreement) and (governmental parties to
this Agreement) entered
into an Agreement establishing certain design standards for
firearms sold to civilians.
Pursuant to that Agreement, we are obliged to inform you
that this firearm
does not comply with all of the design standards of the Agreement.
We are further obliged
to request that you not resell this firearm to civilians. This
statement is not intended
to suggest that there are any design flaws with this firearm,
and you remain entitled
to dispose of it in any lawful manner."
C.Warnings about safe storage and handling.
Within 6 months of execution of this
Agreement, manufacturer parties to this Agreement
shall include in the packaging of each
firearm sold a warning on risk of firearms
in the home and proper home storage. At a
minimum, these warnings shall state in 14
point type, bold face:
"This handgun is not
equipped with a device that fully blocks use by unauthorized
users. More than 200,000
firearms like this one are stolen from their owners every
year in the United
States. In addition, there are more than a thousand suicides each
year by younger children
and teenagers who get access to firearms. Hundreds more
die from accidental
discharge. lt is likely that many more children sustain serious
wounds, or inflict
such wounds accidentally on others. In order to limit the chance of
such misuse, it is
imperative that you keep this weapon locked in a secure place and
take other steps necessary
to limit the possibility of theft or accident. Failure to take
reasonable preventative
steps may result in innocent lives being lost, and in some
circumstances may
result in your liability for these deaths."
D.Illegal Firearms. The manufacturer parties
to this Agreement shall not sell firearms that
can be readily converted to an illegal firearm,
that is, a weapon designed in a manner so
that with few additional parts and/or minimal
modifications an owner can convert the
firearm to an illegal fully automatic weapon;
nor shall the firearms be designed so that
they are resistant to fingerprints.
II. Sales and distribution.
In addition to complying with specific terms, the manufacturer
parties to this Agreement will
agree for themselves and as part of any distribution or agency
agreement that they, and their
authorized distributors and authorized dealers, including franchisees,
shall commit to a
standard of conduct to make every effort to eliminate sales of
firearms that might lead to illegal
firearm possession and/or misuse by criminals, unauthorized juveniles,
and other prohibited
persons ("suspect firearms sales"). Suspect firearm sales include
sales made to straw
purchasers, multiple sales of handguns without reasonable explanation
(excluding sales to
FFLs), and sales made to any purchaser without a completed background
check.
As specified in Part II.A.2 below, the manufacturer parties to
this Agreement will take action
against dealers and distributors that violate these requirements
if the manufacturers receive
actual notice of such a violation.
A. Authorized distributors and dealers.
1.The manufacturer
parties to this Agreement may sell only to authorized
distributors and authorized
dealers. In order to qualify to become an authorized
distributor or authorized
dealer, the distributor or dealer must agree in writing
to:
a.Possess a valid and current federal firearms license, and all other
licenses and permits required by local, state or federal law, and
certify on an annual basis, under penalty of perjury, compliance with
all local, state and federal firearms laws.
b.Execute in the presence of the purchaser the following elements of
all firearms transactions at the premises listed on its federal firearms
license: completion of the forms and related requirements under the
Brady Act and the Gun Control Act and physical transfer of the
firearm.
c.Where available, carry insurance coverage against liability for
damage to property and for injury to or death of any person as a result
of the sale, lease, or transfer of a firearm in amounts appropriate to
its
level of sales, but at a minimum no less than $1 million for each
incident of damage, injury or death.
d.Make no sales at gun shows unless all sales by any seller at the gun
show are conducted only upon completion of a background check.
e.Within 24 months of the date of execution of this Agreement,
maintain an inventory tracking plan for the products of the
manufacturer parties to this Agreement that includes at a minimum the
following elements:
(1)Electronic recording of the make, model, caliber or gauge,
and serial number of all firearms that are acquired no later than
one business day after their acquisition and electronic recording
of their disposition no later than one business day after their
disposition. Monthly backups of these records shall be
maintained in a secure container designed to prevent loss by fire,
theft, or other mishap.
(2)All firearms acquired but not yet disposed of must be
accounted for through an electronic inventory check prepared
once each month and maintained in a secure location.
(3)For authorized dealers and franchisees, all ATF Form 4473
firearm transaction records shall be retained on the dealer's
business premises in a secure container designed to prevent loss
by fire, theft, or other mishap.
(4)If an audit of a distributor's or dealer's inventory reveals any
firearms not accounted for, the distributor or dealer shall be
subject to sanctions, including termination as an authorized
distributor or dealer.
f.Implement a security plan for securing firearms, including firearms
in shipment. The plan must satisfy at least the following requirements:
(1)Display cases shall be locked at all times except when
removing a single firearm to show a customer, and customers
shall handle firearms only under the direct supervision of an
employee;
(2)All firearms shall be secured, other than during business
hours, in a locked fireproof safe or vault in the licensee's
business premises or in another secure and locked area; and
(3)Ammunition shall be stored separately from the firearms and
out of reach of the customers.
g.Require persons under 18 years of age to be accompanied by a
parent or guardian when they are in portions of the premises where
firearms or ammunition are stocked or sold.
h.Not sell ammunition magazines that are able to accept more than 10
rounds regardless of the date of manufacture, not sell any
semiautomatic assault weapon as defined in 18 U S.C. 921 (a)(30)
regardless of the date of manufacture, provide safety locks and
warnings with firearms, as specified in Section I above, and sell only
firearms that comport with the design criteria of this Agreement.
I.Provide law enforcement, government regulators conducting
compliance inspections, and the Oversight Commission, for purposes
of determining compliance with conditions imposed as a result of this
Agreement, or for any other authorized purpose, full access to any
documents related to the acquisition and disposition of firearms
deemed necessary by one of those parties.
j.Participate in and comply with all monitoring of firearms
distribution by manufacturers, ATF or law enforcement.
k.Maintain an electronic record of all trace requests initiated by ATF,
and report those trace requests by make, model and serial number of
firearm, date of trace, and date of sale to the manufacturer of the
firearm on a monthly basis, unless ATF, for investigative reasons,
directs the licensee not to report certain traces.
l.Agree to cooperate fully in the oversight mechanism established in
Section III of this Agreement, including providing access to all
necessary documents, and to be subject to the jurisdiction of the court
enforcing this Agreement.
m.Require all employees to attend annual training developed by
manufacturers in consultation with ATF and approved by the
Oversight Commission. The training shall cover at a minimum: the
law governing firearms transfers by licensees and individuals; how to
recognize straw purchasers and other attempts to purchase firearms
illegally; how to recognize indicators that firearms may be diverted
for later sale or transfer to those not legally entitled to purchase them;
how to respond to those attempts; and the safe handling and storage of
firearms. New employees will receive training on the above topics,
based on materials developed for the annual training, before handling
or selling firearms and shall attend annual training thereafter. Such
training may be delivered by electronic medium. Within 12 months of
the date of execution of this Agreement and annually thereafter, the
manufacturer parties to this Agreement will obtain from all authorized
dealers and distributors certifications that such training has been
completed, with a list of the names of all trained employees.
n.Require all employees to pass a comprehensive written exam,
which shall be developed by the manufacturers in consultation with
ATF and approved by the Oversight Commission, on the material
covered in the training before being allowed to sell or handle
firearms. Any employee who fails to pass the exam shall be
prohibited from selling or handling firearms on behalf of the
distributor or dealer. The annual certification discussed in II A. l .m,
above, will include certification that all employees have passed the
exam.
o.Not complete any
transfer of a firearm prior to receiving notice from the NICS
that the transferee
is not a prohibited person under the Gun Control Act.
p.Verify the validity of a licensee's federa1 firearms license before
transferring a firearm to that licensee.
q.Forgo any transfer of a firearm to a licensee if the dealer or distributor
knows the licensee to be under indictment for violations of the Gun Control
Act or any violent felony or serious drug offense as defined in 18 U.S.C.
§
924(e)(2).
r.Transfer firearms only:
(1)To individuals who have demonstrated that they can safely handle
and store firearms through completion of a certified firearms safety
training course or by having passed a certified firearms safety
examination.
(2)After demonstrating to the purchaser how to load, unload, and
safely store the firearm, and how to engage and disengage all safety
devices on the firearm.
(3)After providing the purchaser with a copy of the ATF Disposition
of Firearms Notice.
(4)After obtaining the purchaser's signature on a form certifying that
the purchaser has received the instruction described in subparagraph
(2) and the notice described in subparagraph (3) and maintaining that
form in its files.
(5)After providing the purchaser with a written record of the make,
model, caliber or gauge, and serial number of each firearm transferred
to enable the purchaser to accurately describe the firearm to law
enforcement in the event that it is subsequently lost or stolen.
2.The manufacturer parties to the Agreement shall incorporate
into any distribution or agency
agreement with their authorized distributors and authorized dealers,
including franchisees,
procedures for terminating distributors, dealers or franchisees
that engage in conduct in
violation of this Agreement. Distributors and dealers shall agree
to this enforcement system as
a condition of becoming authorized. The manufacturer parties
to this Agreement shall require
annual certification by their authorized dealers and distributors
that they are in compliance with
the requirements in II.A.l(a-r) of this Agreement and applicable
provisions of B. and C., below.
If the manufacturer parties to this Agreement receive actual
notice of a violation of the
Agreement through their course of dealing with their authorized
dealers and distributors, from
ATF, state or local law enforcement, the Oversight Commission,
another dealer or distributor,
a customer or other credible source, the manufacturer parties
to this Agreement will either
immediately terminate sales to the dealer or distributor in violation
or take the following
actions. The manufacturer(s) that have authorized the dealer
or distributor to sell its/their
firearms will, individually or collectively, notify the dealer
or distributor within seven (7)
business days of learning of such violation and inform the dealer
or distributor of the breach
and request information regarding the breach. The distributor
or dealer will then have fifteen
(15) days to provide the manufacturer(s) with the requested information.
If the manufacturer(s)
determine that the dealer or distributor is in violation of this
section of the Agreement, the
manufacturer(s) will provide no further product to the distributor
or dealer until the
manufacturer(s) determine that the distributor or dealer is in
compliance with the Agreement.
The manufacturer(s) shall inform the Oversight Commission and
ATF of its/their notifications
and decisions and provide them with the information provided
by the dealer or distributor. If
the Oversight Commission determines that suspension or termination
of the dealer or distributor
is warranted, and the manufacturer(s) did not take this action,
the Oversight Commission shall
direct the manufacturer(s) to do so.
B. Authorized distributors - additional provision.
Authorized distributors must agree to sell
the manufacturer's products only to other
authorized distributors or authorized dealers
or directly to government purchasers,
C.Authorized dealers--additional provisions.
ln addition to the requirements in section II(A)(1), authorized dealers must agree:
1.Not to sell any of
the manufacturers' products to any federal firearms licensee that
is not an authorized
distributor or authorized dealer of that manufacturer.
2.Not to engage in
sales that the dealer knows or has reason to know are being made
to straw purchasers.
3.To adhere to the
following procedure for multiple handgun sales. If a purchaser
wants to purchase
more than one handgun, the purchaser may take from the dealer
only one handgun on
the day of sale. The dealer at that point will file a Multiple
Sales Report with
ATF. The purchaser may take the additional handguns from the
dealer 14 days thereafter.
This provision shall not apply to sales to qualified private
security companies
licensed to do business within the State where the transfer occurs
for use by the company
in its security operations.
D. Manufacturers.
Each manufacturer must:
1.Provide quarterly
reports of its own sales data and downstream sales data, with the
volume of sales by
make, model, caliber and gauge, to ATF's National Tracing
Center.
2.Not market any firearm
in a way that would make the firearm particularly appealing
to juveniles or criminals'
such as advertising a firearm as "fingerprint resistant."
3.Refrain from selling
any modified or sporterized semi-automatic assault pistol of a
type that cannot be
imported into the United States.
4.Reaffirm their longstanding
policy and practice of not placing advertisements in the
vicinity of schools,
high crime zones, or public housing.
5.Verify the validity
of a license against an ATF database before transferring a
firearm to any licensee.
6.Forgo any transfer
of a firearm to a licensee if the manufacturer knows the licensee
to be under indictment
violations of the Gun Control Act or any violent felony or
serious drug offense
as defined in 18 U.S.C. sec. 994(e)(2)
7.Implement a security
plan for securing firearms, including firearms in shipment.
The plan will include
the following elements.
a.Employee and visitor
movement into and out of the manufacturer's facility will be
only through designated
security control points, and visitors will be admitted only
after positive identification
and confirmation of the validity of the visit. Employees
and visitors will
pass through a metal detector before leaving
b.All areas where firearms are assembled and stored will be designated
as
restricted areas. Access will be authorized only for those employees whose
work requires them to enter these areas or for escorted visitors. Protective
barriers will be installed in restricted areas to deny or impede unauthorized
access.
c.Each facility or area where firearms, ammunition, or components are stored
will be provided with a system to detect unauthorized entry.
d.If firearms are shipped in cartons, the cartons will beard no identifying
marks
or words. The manufacturer parties to this Agreement will use only very
strong
cartons to protect against concealed pilferage in truck shipments, and
large
cartons will be secured with steel strapping in two directions. The manufacturer
parties to this Agreement will use only carriers and freight forwarders
that
warrant in writing that they conduct criminal background checks on delivery
personnel and report all thefts or losses of firearms to ATF within 48
hours of
learning of the theft or loss. The manufacturer parties to this Agreement
will
inspect carriers' and forwarders' local facilities periodically.
8.Encourage its authorized
dealers and distributors to consent to up to three
unannounced ATF compliance
inspections each year.
E. Corporate responsibility.
If ATF or the Oversight Commission informs the manufacturer parties
to this Agreement that a
disproportionate number of crime guns have been traced to a dealer
or distributor within three
years of the gun's sale, the manufacturer(s) that have authorized
the dealer or distributor to sell
guns will either immediately terminate sales to the dealer or
distributor or take the following
actions. The manufacturers will, individually or collectively,
notify the dealer or distributor of
the disproportionate number within seven (7) days and demand
an explanation and proposal to
avoid a disproportionate number of traces in the future. The
dealer or distributor will have
fifteen (15) days to provide the explanation and proposal. If
the manufacturer(s) determine that
the explanation and proposal are not satisfactory, the manufacturer(s)
will terminate supplies to
the dealer or distributor. If the manufacturer(s) determine that
the explanation and proposal are
satisfactory, the manufacturer will continue supplies, but will
closely monitor traces to the
dealer or distributor in question. If disproportionate traces
continue, the manufacturer(s) will
terminate supplies to the dealer or distributor.
The manufacturer(s) shall inform the Oversight Commission and
ATF of its/their notifications
and decisions and provide them with the information provided
by the dealer or distributor. If
the Oversight Commission determines that suspension or termination
of the dealer or distributor
is warranted, and the manufacturer(s) did not take this action,
the Oversight Commission shall
direct the manufacturer(s) to do so.
Disproportionate number of crime guns: Upon execution of this
Agreement, the Oversight
Commission will convene to determine a formula to identify what
constitutes a
disproportionate number of crime guns. In determining the formula,
the Oversight Commission
shall consider the available data and establish procedures to
ensure that the relevant data is
obtained. This provision will not take effect until the Oversight
Commission sets the formula
and a mechanism for its implementation.
III. Oversight
A.Oversight Commission,
1.Composition. An Oversight Commission comprised of five members shall
be
formed. The Commission members shall serve five-year terms except for first
terms as noted and shall be appointed as follows:
a.Two members by the city and county parties to the Agreement. First
appointees to serve two- and three-year terms, respectively.
b.One by the State parties to the Agreement. First appointee to serve a
three year term.
cOne member by the manufacturer parties to the Agreement. First appointee
to serve a four-year term.
d.One selected by ATF. First appointee to serve a five-year term.
2.Authority. -- The Oversight Commission, which
will operate by majority vote, will be
empowered to oversee the implementation of
this Agreement. Its authorities will include
but not be limited to the authority to (1)
review the findings of ATF or the proofing entity
that will oversee the design and safety requirements
of Part I of this Agreement, (2)
maintain records of firearms sold pursuant
to the law enforcement exception, as set forth
in Part I.B of this Agreement, (3) review
the safety training materials and test set forth in
Parts II.A. l .m-n of this Agreement, and
(4) participate in the oversight of the distribution
and sales provisions established in Part II
of this Agreement as set forth in Parts II.A.2 and
II.E.
The Oversight Commission shall have a staff,
which will be entitled to inspect
participating manufacturers and their authorized
dealers and distributors to ensure
compliance with the Agreement. The costs of
the Commission shall be funded by the
parties to the Agreement. Each manufacturer
party to this Agreement will pay no more than
$25,000 annually.
B. Role of ATF. -- ATF will continue to issue'
regulate and inspect federal firearms
licensees, collect multiple sales forms, conduct
firearms traces, investigate firearms
traffickers and straw purchasers, enforce
the Gun Control Act and the National Firearms
Act and fulfill its other statutory responsibilities.
To the extent consistent with law and the
effective accomplishment of its law enforcement
responsibilities, ATF will work with the
manufacturer parties to the Agreement and
the Oversight Commission to assist them in
meeting their obligations under the Agreement.
In particular, to the extent that ATF
uncovers violations of the following provisions
in its inspections or other contacts with
federal firearms licensees, it will inform
the Oversight Commission: II(A)(l)(a), (b),, (e),
(h), (i), (j), (k), (o), (p), and (q), (C)(2)
and (D)(1) and (5). Nothing in this paragraph
shall diminish the obligation of the manufacturer
parties to this Agreement to make
reasonable efforts to identify noncompliance
and respond to notifications of violations
from parties other than ATF.
C. Manufacturer cooperation
1.Each manufacturer
shall designate an executive level manager to serve as a
compliance officer
and shall provide the compliance officer with sufficient
resources and staff
to fulfill the officer's responsibilities under this agreement.
2.The compliance officer shall be responsible for
a.Ensuring that the manufacturer fulfills its obligations under this agreement,
b.Training the manufacturer's officers and employees on the obligations
imposed
by this agreement; and
c.Serving as the liaison to the Oversight Commission.
3.Each manufacturer shall commit to full cooperation
in the implementation and
enforcement of this Agreement.
IV. Cooperation with Law Enforcement.
A.The manufacturer
parties to this Agreement reaffirm their commitment to
cooperate fully with
law enforcement and regulators to eliminate illegal
firearms sales possession.
B. Within six (6) months
of the effective date of this Agreement, if
technologically available,
the manufacturer parties to this Agreement shall fire
each firearm before
sale and enter the digital image of its casing along with the
weapon's serial number
into a system compatible with the National Integrated
Ballistics Identification
Network system. The digital image shall be made
available electronically
to ATF's National Tracing Center.
C.Manufacturers shall
participate in ATF's Access 2000 program to facilitate
electronic linkage
to their inventory system to allow for rapid responses to
ATF's firearms trace requests.
V. Legislation.
The parties to this Agreement will work together
to support legislative efforts to reduce
firearms misuse and the development of authorized
user technology.
VI. Education trust fund.
Upon resolution of the current lawsuits brought
by cities, counties, or States, the
manufacturer parties to this Agreement shall
dedicate one percent of annual firearms
revenues to a trust fund to implement a public
service campaign to inform the public about
the risk of firearms misuse, safe storage,
and the need to dispose of firearms responsibly.
VII. Most favored entity.
If the manufacturer parties to this Agreement
enter into an agreement with any other entity
wherein they commit to institute design or
distribution reforms that are more expansive
than any of the above-enumerated items, such
reforms will become a part of this
Agreement as well.
In addition, if firearms manufacturers that
are not party to this Agreement agree to design
or distribution reforms that are more expansive
than any of the above enumerated items,
and if the manufacturers who are party to
the other agreement(s) with more expansive
terms, in combination with the manufacturer
parties to this Agreement, account for fifty
percent or more of United States handgun sales,
manufacturer parties to this Agreement
will agree to abide by the same design and
distribution measures.
VIII. Enforcement
The Agreement will be entered and is enforceable
as a Court order and as a contract.
Dated this _______ day of March, 2000
Approved and Authorized by:
Manufacturer parties to this Agreement:
Smith & Wesson
Governmental parties to this Agreement:
Department of the Treasury
Department of Housing and Urban Development
State Parties to this Agreement:
State of New York
State of Connecticut
City and County Parties to this Agreement:
City of Atlanta, Georgia
City of Berkeley, California
City of Bridgeport, Connecticut
City of Camden, New Jersey
City of Detroit, Michigan
City of Gary, Indiana
City of Inglewood, California
City of Los Angeles, California
County of Miami-Dade, Florida
City of San Francisco, California
City of St. Louis, Missouri
Posted: 2000-03-21