Following is the text of the settlement agreement signed by
Smith & Wesson.
Also, read the NRA-ILA Fact
Sheet that describes the impact of this agreement.
(Source of this information: NRA)
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
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