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EXHIBIT 10.14
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.
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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
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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
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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 an 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.
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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 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.
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 in 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.
B. LAW ENFORCEMENT AND MILITARY EXCEPTION. An exception to a requirement
of paragraph A may be granted for firearms
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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. It is likely that many more children sustain serious wounds, or
inflict such wounds accidentally
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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 nonce 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:
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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 manual 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 Xxxxx 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 or 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
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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
semi automatic 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
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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.
1. 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
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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.1.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 federal firearms license
against an ATF database 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. Section 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.
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(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.1(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,
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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.
In 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.
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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. 924(e)(2).
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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 bear 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.
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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.
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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.
c. One 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
T 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.1.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
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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)(1)(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.
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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 and 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.
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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 17 day of March, 2000.
Approved and Authorized by:
MANUFACTURER PARTIES TO THIS AGREEMENT:
/s/ X.X. Xxxxxx
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Xxxxx & Wesson
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GOVERNMENTAL PARTIES TO THIS AGREEMENT:
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Department of the Treasury
/s/ [signature not legible]
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Department of Housing and Urban Development
STATE PARTIES TO THIS AGREEMENT:
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State of New York
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State of Connecticut
CITY AND COUNTY PARTIES TO THIS AGREEMENT:
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