[House Report 104-623]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-623
_______________________________________________________________________


 
        ARMORED CAR INDUSTRY RECIPROCITY IMPROVEMENT ACT OF 1996

                                _______


 June 17, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Bliley, from the Committee on Commerce, submitted the following

                              R E P O R T

                        [To accompany H.R. 3431]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, to whom was referred the bill 
(H.R. 3431) to amend the Armored Car Industry Reciprocity Act 
of 1993 to clarify certain requirements and to improve the flow 
of interstate commerce, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Roll Call Votes..................................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform and Oversight.....................     4
New Budget Authority and Tax Expenditures........................     4
Committee Cost Estimate..........................................     4
Congressional Budget Office Estimate.............................     4
Inflationary Impact Statement....................................     6
Advisory Committee Statement.....................................     6
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     7

                          Purpose and Summary

    The bill clarifies certain requirements of the Armored Car 
Industry Reciprocity Act of 1993 (P.L. 103-55, codified at 15 
U.S.C. 5902 et seq.) and improves the flow of interstate 
commerce.

                  Background and Need for Legislation

    Armored car companies continue to be an important part of 
our nation's economy, transporting billions of dollars annually 
in valuable goods, including currency, coin, negotiable 
securities, food stamps, and other valuables. For interstate 
shipments, the Federal government continues to be one of the 
armored car industry's largest customers, using private 
companies to transport food stamps, currency and coin, and 
other negotiable documents from central printing and 
distribution points to localities across the country. Typical 
shipments carried by armored car can range in value from 
$100,000 to $40 million. While most shipments are made within a 
350 mile area, the value of the cargoes shipped interstate 
tends to be higher, making them more lucrative targets for 
thieves and domestic terrorists.
    The dangers faced by armored car crew members are 
increasing. According to statistics from the Federal Bureau of 
Investigations Violent Crimes Section, there were 68 attempted 
robberies of armored vehicles during Fiscal Year 1995. The 
National Armored Car Association estimates that there were 107 
attempted robberies during calendar year 1995. Further, the 
Committee received testimony that, due to increased violence 
among juvenile offenders, there has been an increasing number 
of fatalities of armored car crew members during robbery 
attempts. Clearly there continues to be a need for these crew 
members to be armed to protect both themselves and their 
valuable cargoes.
    There are approximately 13,000 people employed nationwide 
as armored car crew members, although only approximately 3,000 
regularly travel in interstate commerce. However, until 
Congress enacted the Armored Car Industry Reciprocity Act of 
1993, there was no standardized method of obtaining weapons 
permits from those States in which armored car crews were 
required to travel. Each State had different requirements and 
procedures for obtaining weapons permits, which either placed a 
great burden on armored car companies to obtain licenses in 
every State in which a crew member conceivably might travel, or 
required the crews to travel without the necessary permits, an 
outcome which neither the crew members, the companies, nor law 
enforcement officials desired. These problems are discussed in 
greater detail in the Committee's report on the original Act 
(H. Rpt. 103-62).
    The Armored Car Industry Reciprocity Act of 1993 entitled 
certain armored car crew members with a weapons permit issued 
by the State in which they were primarily employed to lawfully 
carry a weapon in any State while protecting the security of 
valuable goods in interstate commerce in the service of an 
armored car company. However, reciprocity was only granted to 
crew members from those States requiring criminal background 
checks and regular weapons safety and marksmanship training.
    In the several years since passage of the original Act, a 
number of technical problems and drafting ambiguities have come 
to light. The first problem was that some States require a 
``private security officer's license'' in addition to a weapons 
license. Although individuals with a license issued by a State 
which met the requirements in the original Act would be granted 
reciprocity with respect to their weapons license, it was 
unclear to State regulators as to whether the requirement for a 
private security officer's license was superseded as well. 
While the clear intent of the original Act was to allow armored 
car crew members to travel freely in interstate commerce, State 
regulators have requested clarification of this issue.
    The second problem raised was an inconsistency between the 
annual reporting requirement for criminal background checks and 
training information required in the Act. Most States have 
instituted two-year renewal cycles for weapons permits, 
primarily as a cost-saving measure. In light of this fact, the 
annual requirement for training and criminal background checks 
would have imposed an additional burden on the States. While 
the States have indicated they believe that both continuing 
training and background monitoring are important, they have 
requested the flexibility to collect that information in 
accordance with their own preexisting procedures.
    The third major problem arises from a drafting ambiguity in 
the original Act which required the permit holder to provide 
the criminal background information. Since virtually every 
State requires the issuing agency to conduct background checks 
of permit applicants, this requirement was inconsistent with 
the normal practice and procedure employed by the responsible 
agencies. This does not reflect the intent of Congress and 
requires clarification.
    Currently, of the 33 States which require regular criminal 
background checks and weapons training as requirements for the 
issuance of weapons permits, only 5--Illinois, Louisiana, 
Maryland, North Carolina, and Virginia--meet the definitions 
set forth in the Act as originally enacted. After passage of 
H.R. 3431, armored car crew members in an additional 28 States 
would qualify for reciprocity, and the Committee believes that 
the amended Act will serve as an incentive to other States to 
upgrade their licensing regimes.
    The intent of the Congress was to lift the burden on 
interstate commerce created by the diverse State licensing 
schemes in place at the time. With the changes contained in 
H.R. 3431, the Act will better achieve that purpose.

                                Hearings

    The Subcommittee on Commerce, Trade, and Hazardous 
Materials held a hearing on H.R. 3431, the Armored Car Industry 
Reciprocity Improvement Act of 1996, on May 22, 1996. The 
Subcommittee received testimony from Mr. James L. Dunbar, 
Chairman and Chief Executive Officer of Dunbar Armored, Inc., 
on behalf of the National Armored Car Association, and Mr. 
Wayne Rogillio, Executive Secretary, Louisiana State Board of 
Private Security Examiners, on behalf of the National 
Association of Security and Investigative Regulators. Both 
witnesses testified in favor of the legislation.

                        Committee Consideration

    On May 22, 1996, the Subcommittee on Commerce, Trade, and 
Hazardous Materials met in open markup session and approved 
H.R. 3431, the Armored Car Industry Reciprocity Improvement Act 
of 1996, for Full Committee consideration, without amendment, 
by a voice vote.
    On June 11, 1996, the Committee on Commerce met in open 
markup session and ordered H.R. 3431 reported to the House, 
without amendment, by a voice vote.

                            Roll Call Votes

    Clause 2(l)2(B) of rule XI of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. There were no recorded votes taken in connection with 
ordering H.R. 3431 reported. A motion by Mr. Bliley to order 
H.R. 3431 reported to the House, without amendment, was agreed 
to by a voice vote, a quorum being present.

                      Committee Oversight Findings

    Pursuant to clause 2(l)(3)(A) of rule XI of the Rules of 
the House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

              Committee on Government Reform and Oversight

    Pursuant to clause 2(l)(3)(D) of rule XI of the Rules of 
the House of Representatives, no oversight findings have been 
submitted to the Committee by the Committee on Government 
Reform and Oversight.

               New Budget Authority and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee finds that 
H.R. 3431, the Armored Car Industry Reciprocity Improvement Act 
of 1996, would result in no new or increased budget authority 
or tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 403 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives, the following is the cost 
estimate provided by the Congressional Budget Office pursuant 
to section 403 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 14, 1996.
Hon. Thomas J. Bliley, Jr.,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 3431, the Armored Car Industry Reciprocity 
Improvement Act of 1996, as ordered reported by the House 
Committee on Commerce on June 11, 1996. CBO estimates that 
enacting H.R. 3431 would result in no cost to the federal 
government. Because enactment of H.R. 3431 would not affect 
direct spending or receipts, pay-as-you-go procedures would not 
apply to the bill. As discussed in the enclosed 
intergovernmental cost estimate, H.R. 3431 contains an 
intergovernmental mandate as defined in Public Law 104-4, but 
the costs imposed on state, local, and tribal governments would 
be minimal. This bill would impose no new private-sector 
mandates as defined in Public Law 104-4.
    This bill would amend the Armored Car Industry Reciprocity 
Act of 1993 to require reciprocity among states for the weapons 
license and all other necessary licenses if a member of an 
armored car crew is licensed and has met all requirements in 
the state in which he or she is primarily employed. This 
provision would apply only if the licensing agency meets 
certain minimum requirements. In order for reciprocity to 
apply, the bill also would require that a criminal background 
check be conducted when the armored car crew member is seeking 
the initial license. Finally, H.R. 3431 would repeal the 
standard for reciprocity requiring that the weapons permit be 
renewed on an annual basis. Because the provisions of H.R. 3431 
would not affect federal laws regarding the possession of 
weapons, CBO estimates that enacting this bill would result in 
no cost to the federal government.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                         June E. O'Neill, Director.

    Congressional Budget Office Estimated Cost of Intergovernmental 
                                Mandates

    1. Bill number: H.R. 3431.
    2. Bill title: Armored Car Industry Reciprocity Improvement 
Act of 1996.
    3. Bill status: Ordered reported by the House Committee on 
Commerce on June 11, 1996.
    4. Bill purpose: H.R. 3431 would amend the Armored Car 
Industry Reciprocity Act of 1993 to clarify certain reciprocity 
requirements among states for the licensing of members of 
armored car crews.
    5. Intergovernmental mandates contained bill: State 
governments would be required to recognize the validity of 
licenses and certifications issued by other states for members 
of armored car crews, as long as those states comply with 
minimum federal standards.
    6. Estimated direct costs of mandates on State, local, and 
tribal governments:
    (a) Is the $50 million threshold exceeded? No.
    (b) Total direct costs of mandates: CBO estimates that the 
mandate contained in H.R. 3431 would impose direct costs on 
state, local, and tribal governments totaling less than 
$500,000 annually.
    (c) Estimate of necessary budget authority: Not applicable.
    7. Basis of estimate: H.R. 3431 would impose a mandate on 
states that have regulations governing the licensing of armored 
car crew members that are more stringent than those of other 
states that meet minimum federal standards. For example, some 
states require that crew members be certified to carry firearms 
and that they possess a security guard license. Over 30 states 
have such requirements that either meet or exceed the federal 
minimum standards. H.R. 3431 would preclude these states with 
higher standards from requiring out-of-state armored car crew 
members to acquire additional licenses before traveling through 
the state.
    CBO contacted officials from six states and spoke with 
industry representatives during the course of preparing this 
estimate. No state reported issuing a significant number of 
out-of-state licenses; however, states that license out-of-
state crew members may face some cost in terms of lost fee 
revenue under the terms of H.R. 3431. On a state-by-state 
basis, this cost would be minimal because most crew members 
travel within a limited area; consequently, few crew members 
need to acquire more than one out-of-state license. Likewise, 
individual states receive few applications for such licenses. 
Approximately 3,000 armored car crew members nationwide travel 
across state lines. License fees for crew members range from 
$30 to $150 annually. Assuming that most interstate crew 
members procure a license from one neighboring state under 
current law, the aggregate revenue loss to states would be less 
than $500,000. This loss of revenue would be partly offset by 
reduced costs from issuing fewer licenses.
    8. Appropriation or other Federal Financial assistance 
provided in bill to cover mandate costs: None.
    9. Other impacts on State, local, and tribal governments: 
None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Leo Lex.
    12. Estimate approved by: Robert A. Sunshine (for Paul N. 
Van de Water, Assistant Director for Budget Analysis).

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds that the bill 
would have no inflationary impact.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

             Section-by-Section Analysis of the Legislation

Section 1--Short title

    Section 1 provides the short title of the bill, the Armored 
Car Industry Reciprocity Improvement Act of 1996.

Section 2--Clarification of State reciprocity of weapons licenses 
        issued to armored car company crew members

    Subsection (a) amends subsection 3(a) of the Armored Car 
Industry Reciprocity Act of 1993 (15 U.S.C. 5902(a)) to provide 
that if an armored car crew member employed by an armored car 
company has a weapons permit issued by an appropriate State 
agency in the State in which the crew member is primarily 
employed to carry a weapon or weapons while in the services of 
such company, and the State meets the statute's minimum 
criteria, and has met all other applicable requirements in the 
State in which the crew member is employed, then that crew 
member shall be entitled to lawfully carry any weapon 
authorized by the license and function as an armored car crew 
member in any State.
    Subsection (b) amends subsection 3(b) of the Armored Car 
Industry Reciprocity Act (15 U.S.C. 5902(b)) to clarify the 
minimum requirements for States' licenses to be granted 
reciprocity. When issuing an initial license to an armored car 
crew member, the State must determine to its satisfaction that 
(1) the crew member has received both classroom and range 
training in weapons safety and marksmanship during the current 
year, and (2) that receipt or possession of a weapon by the 
crew member would not violate Federal law, as determined on the 
basis of a criminal records background check conducted during 
the current year. When issuing renewal licenses, the State must 
determine to its satisfaction that the crew member (1) received 
continuing training in weapons safety and marksmanship from a 
qualified instructor for each weapon that the crew member is 
licensed to carry, and (2) the receipt or possession of a 
weapon by the crew member would not violate Federal law, as 
determined by the agency.

Section 3--Effective date

    Section 3 sets the effective date of the amendments as 30 
days after enactment of this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

     SECTION 3 OF THE ARMORED CAR INDUSTRY RECIPROCITY ACT OF 1993

SEC. 3. STATE RECIPROCITY OF WEAPONS LICENSES ISSUED TO ARMORED CAR 
                    COMPANY CREW MEMBERS.

  [(a) In General.--If an armored car crew member employed by 
an armored car company has in effect a license issued by the 
appropriate State agency (in the State in which such member is 
primarily employed by such company) to carry a weapon while 
acting in the services of such company in that State, and such 
State agency meets the minimum State requirements under 
subsection (b), then such crew member shall be entitled to 
lawfully carry any weapon to which such license relates in any 
State while such crew member is acting in the service of such 
company.
  [(b) Minimum State Requirements.--A State agency meets the 
minimum State requirements of this subsection if in issuing a 
weapons license to an armored car crew member described in 
subsection (a), the agency requires the crew member to provide 
information on an annual basis to the satisfaction of the 
agency that--
          [(1) the crew member has received classroom and range 
        training in weapons safety and marksmanship during the 
        current year by a qualified instructor for each weapon 
        that the crew member is licensed to carry; and
          [(2) the receipt or possession of a weapon by the 
        crew member would not violate Federal law, determined 
        on the basis of a criminal record background check 
        conducted during the current year.]
  (a) In General.--If an armored car crew member employed by an 
armored car company--
          (1) has in effect a license issued by the appropriate 
        State agency (in the State in which such member is 
        primarily employed by such company) to carry a weapon 
        while acting in the services of such company in that 
        State, and such State agency meets the minimum 
        requirements under subsection (b); and
          (2) has met all other applicable requirements to act 
        as an armored car crew member in the State in which 
        such member is primarily employed by such company;
then such crew member shall be entitled to lawfully carry any 
weapon to which such license relates and function as an armored 
car crew member in any State while such member is acting in the 
service of such company.
  (b) Minimum State Requirements.--A State agency meets the 
minimum State requirements of this subsection if--
          (1) in issuing an initial weapons license to an 
        armored car crew member described in subsection (a), 
        the agency determines to its satisfaction that--
                  (A) the crew member has received classroom 
                and range training in weapons safety and 
                marksmanship during the current year; and
                  (B) the receipt or possession of a weapon by 
                the crew member would not violate Federal law, 
                determined on the basis of a criminal record 
                background check conducted during the current 
                year; and
          (2) in issuing a renewal of a weapons license to an 
        armored car crew member described in subsection (a), 
        the agency determines to its satisfaction that--
                  (A) the crew member has received continuing 
                training in weapons safety and marksmanship 
                from a qualified instructor for each weapon 
                that the crew member is licensed to carry; and
                  (B) the receipt or possession of a weapon by 
                the crew member would not violate Federal law, 
                as determined by the agency.