Resolved, that the shareowners of Sturm, Ruger & Co. (“Ruger” or “Company”) request the preparation of a report, updated annually, disclosing:

1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
2. Payments by Ruger used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.
3. Description of management’s and the Board’s decision-making process and oversight for making payments described in section 2 above.

For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which Ruger is a member.

Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels.

The report shall be presented to the Nominating and Corporate Governance Committee or other relevant oversight committee and posted on Ruger’s website. 

Whereas, we believe in full disclosure of our company’s direct and indirect lobbying activities and expenditures to assess whether Ruger’s lobbying is consistent with its expressed goals and in the best interests of shareowners.

Evidence shows that the American public, in ever greater numbers, is demanding a safer and more responsible firearms industry. The Gun Violence Archive’s recent research found gun deaths up by 19% and gun injuries up 24% from 2014-2018. Despite being a contentious issue, a recent Quinnipiac Poll shows support for sensible gun policy is at an all-time high and is holding steady. Background checks are favored by 94% of the population likely to vote and survey participants also support a ban on sales of assault weapons (65%), a ban on sales of guns to people convicted of a violent crime (91%), and stricter regulations on ammunition sales (62%).      

As stockholders, we encourage transparency and accountability in Ruger’s use of corporate funds to influence legislation and regulation. While Ruger has a Political Contributions Policy that outlines its processes for reviewing and disclosing political contributions, the Company has not disclosed on its website which trade associations it belongs to or its lobbying expenditures to these organizations.

Ruger is a member of the NRA’s Ring of Freedom for routinely donating at least $1 million to the NRA Institute for Legislative Action. The NRA has spent $1.6 million in 2019 lobbying against a bipartisan proposal for stricter background checks. Ruger has also donated to the National Shooting Sports Foundation which has spent $14 million since 2016 lobbying for the firearms industry, including against stronger background checks, raising the minimum purchase age, and ammunition background checks. We are concerned that Ruger’s lack of lobbying disclosure presents reputational and business risks, especially when its lobbying activities oppose legislation contrary to public demand and interests.