3.1 FEE ADMINISTRATION: The Ordinance requires that any person who resides in the City and who owns a firearm pay the Gun Harm Reduction Fee. The fee amount is set by the City Council; it is currently set at $25 per year per gun-owning household. The fee amount is subject to change by the City Council. It has been estimates that 50,000 to 55,000 households within San José include gun owners. 3.1.1 DESIGNATED NONPROFIT TO ACCEPT PAYMENT OF FEE: The Designated Nonprofit will accept payment of the fee from San José gun owners. Fee payment will be made directly from the gun owner to the Designated Nonprofit and will not pass through the City. Fee payment would be due on an annual basis on a date established by the City. This due date has not yet been established. When the Designated Nonprofit receives payment of the fee from a gun owner, it would provide the gun owner with a document demonstrating proof of payment. The Designated Nonprofit must establish the infrastructure necessary to accept payment of the fee, including: a database to track fee payment; a convenient online portal through which to accept payment; one or more options for fee payment in addition to the online portal, which may include payment by mail or in person; a convenient mechanism for providing individuals who have paid the fee with a document demonstrating proof of payment; and any additional infrastructure or systems necessary to accept payment of the fee in accordance with the Ordinance’s requirements. 3.1.2 CITY TO ENFORCE COLLECTION OF FEE: The Ordinance requires that gun owners keep the proof of payment provided by the Designated Nonprofit with their gun(s) at all times. If a San José police officer discovers that an individual possesses a gun but does not have a corresponding proof of payment, the City may issue an administrative citation and associated fine to that individual. Issuance of administrative citations and all associated enforcement action related to the fee are the responsibility of the City, not the Designated Nonprofit. Note that individuals who are (a) designated as peace officers under the California Penal Code, (b) are licensed to carry a concealed weapon, or (c) qualify for a hardship exemption are not required to pay the fee. These exemptions are self-certified by gun owners. As such, the Designated Nonprofit will not administer or otherwise certify compliance with these exemptions. 3.1.3 DESIGNATED NONPROFIT TO CONDUCT GUN OWNER OUTREACH: The Designated Nonprofit will be required to develop and implement multi-lingual outreach to all gun owners in the City. The Designated Nonprofit will need to identify a way to ensure comprehensive outreach and communication to all gun owners in the City to notify them of their obligations under the Ordinance, including Fee requirements, exemptions, and fee processes.