| American Derringer
Stance This year is
dedicated to our country, remembering prominent leaders who helped make our country the
greatest in the world!
During the War of 1812, the British captured the city of
Washington, setting fire to the capitol building and the White House. In the blaze
of cannon fire, Fran-cis Scott Key, a lawyer living in George-town could still see
an American flag waving over Fort McHenry. When the bombing suddenly stopped during the
night he had no way of knowing if the flag was still there or if the American stronghold
had fallen to the British. But at dawn the American flag became visi-ble, still
intact over the fort.
A plaque hanging over Elizabeth Saunders' desk For
Immediate Release March 24, 2000 For More Information: Elizabeth Saunders - 254-799-9111
On March 17, Smith & Wesson, once a great American
company, signed an agreement with the Clinton Admini-stration and the mayors that have
been il-legally suing the firearms industry in a scheme to subvert our Constitutional
sys-tem of government and enact law without lawmakers. Up until that day, the indus-try
had held firm against this onslaught and this attack on our Right to Keep and Bear Arms.
We had resolved to not sub-mit to these acts of tyranny.
Sadly, one of us has chosen to sur-render their rights, my
rights and, to an extent your rights. We here at American Derringer will never sign onto
any agreement that takes away the rights of others, and certainly not to an agreement as
one-sided as this one is. What makes this all the sadder is that the company that
surrendered our rights isn't even an American company. It is the British firm Tomkins,
PLC, desperate to sell S&W, that agreed with the state-ists on Friday. "In all
the years I have been in business, I have never seen anything so blatantly un-American as
that agreement," reacted Elizabeth Saunders, American Derringer CEO after reviewing
the entire 24 page document. "The establishment of a gov-ernment oversight commission
with vir-tually unlimited authority and no ac-countability is in itself a violation of the
basic American concept of free enter-prise. No reasonable business person could possibly
sign this thing."
The fact that these politicians have illegally used our
courts as bully-bats to try to force us to either capitulate to their demands or be driven
to bankruptcy is what is most infuriating. Time and again they have gone to the people's
elected representatives with their false promise of less crime through the persecution of
law abiding gun owners.
And each time, the people's repre-sentatives at
virtually every level have re-jected their schemes.
So they decided to leave the people out of it. Obviously
the people weren't having any of it.
So they pulled their attorneys out of their bag of tricks
and unleashed an un-precedented, and certainly illegal barrage of frivolous lawsuits at a
perfectly lawful industry blaming us for the acts of crimi-nals. They seek no money in
these law-suits. They seek exactly what they got from Smith & Wesson. Regulation with
no law behind it.
American Derringer condemns this action, and calls upon
all of those mayors to drop their attorneys and to start pick-ing up the criminals and
putting them in prison and off our streets. The woeful re-cord of this administration when
it comes to prosecuting federal firearms law viola-tions speaks for itself. And these are
the same laws they demanded and got.
"Now the Clinton administration and these mayors have
a plan to somehow consolidate the purchasing efforts of the thousands of law enforcement
agencies and use that purchasing power as a bludgeon to try to get more companies to sign
on to their agreement. I call that ex-tortion," Saunders commented. "That is the
depth to which they have sunk in their desperation. They are willing to sac-rifice the
safety of law enforcement offi-cers by forcing them to only buy from signers of the
agreement."
We resent the continued implication that we in the
firearms industry and that the lawful firearms owners in this nation are somehow
responsible for the level of violent crime that we face. We resent the continued
vilification of guns and fire-arms enthusiasts by the president and his minions. We resent
the manipulated and twisted statistics being doled out and de-mand that the real numbers
and real facts be presented to the American people.
Most of all, we are angered by the as-sault on our
Constitutional rights by these people. Their claim that the settlement by just one of the
many companies in this industry justifies their actions Their claim does not ring true. No
other company in this industry has even given this agree-ment a second look. We certainly
won't.
American Derringer will always support and defend the right of
law-abiding Americans to keep and bear arms and the right to protect family and home.
1997 American Derringer Corp.
The Clinton And Wesson Sell-Out
Agreement
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 in-cidence of firearms accidents, and educate the
public on the safe handling and stor-age of firearms. Furthermore, the manu-facturer
parties to the Agreement enter into this Agreement as 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 Agree-ment with prejudice from the lawsuits specified in Appendix A subject
to any consent orders entered pursuant to para-graph VIII; and
2. The undersigned state, city and fed-eral parties to the
Agreement agree to re-frain from filing suit against the manufac-turer parties to the
Agreement on an equiva-lent cause of action.
The parties agree that this Agree-ment 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 fur-ther that this Agreement does not
consti-tute 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 en-gaged 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 hand-guns:
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 num-ber hidden on the interior of frame or re-ceiver (e.g., under the grips)
or visible only with the aid of an
optical
instrument.
b. External locking device. As an in-terim measure, until
the implementation of I.A.I.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 be a built-in, on-board locking system, by which the
firearm
can only be operated with a key or com-bination 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
develop-ment 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 collec-tors'
firearms. This requirement does not apply to existing designs currently in production.
If the eight firearms and/or importers with the largest
United States firearms sales volume agree to incorporate author-ized user technology
in all firearms,
the
manufacturer parties to this
Agreement
will incorporate authorized user technol-ogy 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 de-signing 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 fire-arm make and model
must have a barrel length of at least 3", unless it has an av-erage 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 dif-ferent 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 re-sult of the trial.
g. Performance test: A sample of each firearm make and
model will be test-fired with "proof cartridges" (car-tridges 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 exam-ined 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 fire-arm 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 rec-ommended in the user's manual, or if none is recommended, any standard
am-munition of the correct caliber in new condition. A gun shall pass this test if it
fires the first 20 rounds without a mal-function 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 fir-ing 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 po-sitions, it shall be tested with the hammer or
striker in each such position (but oth-erwise 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 relat-ing to imported guns promulgated
by
ATF.
b. Minimum length and height stan-dards. The
pistol's combined length and height must not be less than 10" with the height being
at least 4" and the length be-ing 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
arithme-tic mean of the results of three separate trials, each performed on a different
sam-ple firearm of the make and model at is-sue. 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 discon-nector available for those
customers
who desire the feature.
d. Chamber load indicator. Within 12 months of the
execution of the Agree-ment, 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 pis-tol 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 capac-ity, and such models shall not be capable of
being easily modified to accept such magazines. Nor shall ammunition maga-zines that are
able to accept more than 10 rounds be sold by the manufacturer par-ties 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 man-ual operation (for a single
action re-volver) 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 re-volver dropping from a distance of 1 me-ter in a line
parallel to the barrel upon the rear of the hammer spur, a total of 5 times.
B. Law enforcement and military ex-ception. 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 excep-tion is
necessary for official purposes. Where a law enforcement agency author-izes 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 manu-facturer party to this Agreement shall maintain
the certification in its records and provide a copy of the Oversight Commission. Firearms
sold to law en-forcement 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 fur-ther obliged to request that you not resell this firearms 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 unau-thorized users. More than 200,000 fire-arms 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 dis-charge. It is likely that many more chil-dren 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
reason-able preventative steps may result in in-nocent lives being lost, and in some
cir-cumstances may result in your liability for these deaths.
D. Illegal firearms. The manufac-turer parties to this
Agreement shall not sell firearms that can be readily
converted to an illegal firearm, that is, a weapon de-signed in a manner so that with few
addi-tional parts and/or minimal modifications an owner can convert the firearm to an
il-legal 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 spe-cific 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,
in-cluding 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 juve-niles, and other prohibited persons ("sus-pect firearms
sales"). Suspect firearm sales include sales made to straw pur-chasers, multiple
sales of handguns with-out reasonable explanation (excluding sales to FFLs), and
sales made to any purchaser without a completed back-ground check.
As specified in Part II.A.2 below, the manufacturer
parties to this Agreement will take action against dealers and dis-tributors that violate
these requirements if the manufacturers receive actual notice of such a violation.
A. Authorized distributors and deal-ers.
1. The manufacturer parties to this Agreement may sell
only to authorized distributors and authorized dealers. In or-der 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 ba-sis, under penalty of perjury, compliance with all local, state and federal
firearms laws.
b. Execute in the presence of the pur-chaser the following
elements of all fire-arms 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 or a firearm in amounts appro-priate to its level of sales,
but at a mini-mum no less than $1 million for each in-cident 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 num-ber 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 busi-ness day
after their disposition. Monthly backups of these records shall be main-tained in a secure
container designed to prevent loss by fire, theft, or other mis-hap.
(2) All firearms acquired but not yet disposed of must be
accounted for through an electronic inventory
check
prepared once each month and main-tained in a secure location.
(3) For authorized dealers and fran-chisees, all ATF Form
4473 firearm transaction records shall be retained on the dealer's business premises in a
secure
container designated 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, in-cluding termination as an authorized
dis-tributor or dealer.
f. Implement a security plan for se-curing 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 custom-ers 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 licen-see's business premises
or in another se-cure and locked area; and
(3) Ammunition shall be stored sepa-rately 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 manufac-ture, not sell any semi-automatic
assault weapon as defined in 18
.S.C.921(a)(30) regardless of the
date of manufacture, provide safety locks and warnings with firearms, as specified in
Section 1 above, and sell only firearms that comport with the design criteria of this
Agreement.
i. Provide law enforcement, govern-ment regulators
conducting compliance inspections, and the Oversight Commis-sion, for purposes of
determining compli-ance with conditions imposed as a result of this Agreement, or for any
other au-thorized 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 manufac-turer of the firearm on a monthly
basis, unless ATF, for investigative reasons, di-rects the licensee not to report certain
traces.
l. Agree to cooperate fully in the oversight mechanism
established in Sec-tion III of this Agreement, including pro-viding 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 manufac-turers in consultation with ATF and ap-proved by the Oversight
Commission. The training shall cover at a minimum: the law governing firearms transfers by
licensees and individuals; how to recog-nize straw purchasers and other attempts to
purchase firearms illegally; how to rec-ognize 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 devel-oped for the annual training, before han-dling or selling firearms and
shall attend annual training
thereafter. Such training may be delivered by electronic medium. Within 12 months of the
date of execu-tion of this Agreement and annually thereafter, the manufacturer parties to
this Agreement will obtain from all au-thorized dealers and distributors certifica-tions
that such training has been com-pleted, 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 mate-rial 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 certifica-tion 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 prohib-ited 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. §
924(e)(2).
r. Transfer firearms only:
(1) To individuals who have demon-strated 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 pur-chaser how to load,
unload, and safely store the firearm, and how to engage and disengage all safety devices
on the fire-arm.
(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 de-scribed in subparagraph (2)
and the no-tice 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 fire-arm to law enforcement in the event that it
is subsequently lost or stolen.
2. The manufacturer parties to the Agreement shall
incorporate into any dis-tribution or agency agreement with their authorized distributors
and authorized dealers, including franchisees, procedures for terminating distributors,
dealers or franchisees that engage in conduct in vio-lation of this Agreement.
Distributors and dealers shall agree
to this enforcement system as a condition of becoming au-thorized. The manufacturer
parties to this Agreement shall require annual certifica-tion 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 ter-minate 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 in-formation regarding the breach. The dis-tributor 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 sec-tion of the Agreement, the
manufac-turer(s) will provide no further product to the distributor or dealer until the
manu-facturer(s) determine that the distributor or dealer is in compliance with the
Agreement.
The manufacturer(s) shall inform the Oversight Commission
and the ATF of its/their notifications and decisions and provide them with the information
pro vided by the dealer or distributor. If
the Oversight Commission
determines that suspension or termination of the dealer or distributor is warranted, and
the manu-facturer(s) did not take this action, the Oversight Commission shall direct
the manufacturer(s) to do so.
B. Authorized distributors - addi-tional provision.
Authorized distributors must agree to sell the
manufacturer's products only to other authorized distributors or author-ized 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 manufactur-ers' products to any
federal firearms li-censee that is not an authorized distribu-tor or authorized dealer of
that manufac-turer.
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 proce-dure for multiple
handgun sales. If a pur-chaser 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 hand-guns
from the dealer 14 days thereafter. This provision shall not apply to sales to qualified
private security companies li-censed to do business within the State where the transfer
occurs for use by the company in its security operations.
D. Manufacturers. Each manufac-turer 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 pis-tol of a type that cannot be imported into the United States.
4. Reaffirm their longstanding policy and practice of not
placing advertise-ments 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 fel-ony or serious drug offense as defined in 18 U.S.C. § 924(e)(2).
7. Implement a security plan for se-curing firearms,
including firearms in shipment. The plan will include the fol-lowing 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 admit-ted 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 as-sembled and stored will
be designated as restricted areas. Access will be authorized only for those employees
whose work re-quires them to enter these areas or for es-corted visitors. Protective
barriers will
be
installed in restricted areas to deny
or
impede unauthorized access.
c. Each facility or area where fire-arms, 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 strap-ping in two directions. The
manufacturer
parties to this Agreement will use
only
carriers and freight forwarders that war-rant 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 inspec-tions each year.
E. Corporate responsibility.
If ATF or the Oversight Commission informs the
manufacturer parties to this Agreement that a disproportionate num-ber 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 ter-minate sales to the dealer or distributor or take the following actions.
The manufac-turers will, individually or collectively, notify the dealer or distributor of
the dis-proportionate number within seven (7) days and demand an explanation and proposal
to avoid a disproportionate num-ber 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 satisfac-tory, the manufacturer(s) will terminate supplies to the dealer or
distributor. If the
manufacturer(s) determine that the ex-planation and proposal are satisfactory, the
manufacturer will continue supplies, but will closely monitor traces to the dealer or
distributor in question. If dis-proportionate traces continue, the manu-facturer(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 pro
vided by the dealer or distributor. If
the Oversight Commission
determines that suspension or termination of the dealer or distributor is warranted, and
the manu-facturer(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
proce-dures to ensure that the relevant data is obtained. This provision will not take
ef-fect until the Oversight Commission sets the formula and a mechanism for its
im-plementation.
III. Oversight
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