[Senate Report 105-297]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 538
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-297
_______________________________________________________________________


 
                 ARMORED CAR INDUSTRY RECIPROCITY ACT

                               __________

                              R E P O R T

                                 OF THE

                  COMMITTEE ON COMMERCE, SCIENCE, AND

                             TRANSPORTATION

                                   on

                                H.R. 624


 


               September 1, 1998.--Ordered to be printed



       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       ONE HUNDRED FIFTH CONGRESS

                             second session


                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon
                       John Raidt, Staff Director
                       Mark Buse, Policy Director
                  Martha P. Allbright, General Counsel
     Ivan A. Schlager, Democratic Chief Counsel and Staff Director
             James S.W. Drewry, Democratic General Counsel

                                     
                                                       Calendar No. 538
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-297
_______________________________________________________________________


                  ARMORED CAR INDUSTRY RECIPROCITY ACT

                                _______
                                

               September 1, 1998.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                        [To accompany H.R. 624]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (H.R. 624) ``An Act 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, reports favorably thereon without 
amendment and recommends that the bill do pass.

                          Purpose of the Bill

    H.R. 624 clarifies certain requirements of the Armored Car 
Industry Reciprocity Act of 1993 (P.L. 103-55, 15 USC 5902 et 
seq.).

                          Background and Needs

    The armored car industry transports billions of dollars 
annually in currency and valuable goods, including food stamps, 
jewelry, rare metals and negotiable instruments. Typical 
shipments carried by armored cars range in value from $100,000 
to $40 million. Because armored cars frequently transport such 
valuable cargoes, they have become attractive targets for 
criminals. As a result, crew members have been the victims of 
violent crimes and large amounts of valuables have been lost. 
According to statistics from the Federal Bureau of 
Investigation's (FBI's) Violent Crime Section, the FBI 
investigated 68 attempted robberies of armored vehicles during 
Fiscal Year 1995 and another 30 attempted robberies in the 
first six months of 1996.
    In an effort to protect themselves from criminal attack 
armored car crew members carry firearms. Of the approximately 
13,000 people employed nationwide as armored car crew members, 
more than 3,000 of these crew members regularly travel through 
numerous states, with their valuable shipments, subjecting 
themselves to a variety of weapons licensing requirements in 
each and every state through which they travel. These differing 
requirements subject crew members and their employers to 
unreasonable burdens, requiring them to obtain licenses in all 
states in which they may be required to travel. That proved 
impossible for many, because of the length of time required to 
obtain such licenses.
    In 1993, Congress enacted the Armored Car Industry 
Reciprocity Act, P.L. 103-55, in order to alleviate these 
burdens resulting from the varying weapons permit requirements. 
P.L. 103-55 entitled armored car crew members, holding valid 
weapons permits from the states where they are primarily 
employed, to lawfully carry a weapon in any state while 
protecting the valuables in interstate commerce, while in the 
service of an armored car company. Congress only authorized 
reciprocity for crew members licensed in states which required 
a criminal records background check and training in the use of 
weapons.
    Since passage of the original Act, a number of technical 
problems and drafting ambiguities have come to light. P.L. 103-
55 did not result in granting many crew members the benefits of 
reciprocity intended by Congress. Because many states require 
armored car crews to hold ``private security licenses'' in 
addition to weapons permits, it was not clear that the statute 
would grant reciprocity on those security licenses. So, 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 with regards to the 
``private security licenses.''
    Another difficulty with the Act is its requirement for 
annual background checks and training. Most states, as a costs-
savings matter, grant licenses for two year periods. Therefore, 
the requirement for annual training and background checks 
places an unreasonable burden on these states. State officials 
have requested Congress to conform the law to the two year 
cycle.
    Finally, H.R. 624 corrects a drafting error. The original 
Act required the individual applying for a weapons permit to 
supply his or her own criminal background information. Since 
nearly every State requires the issuing agency to conduct 
background checks of permit applicants, this language was 
inconsistent with the normal practice and procedures of the 
various State agencies.
    Clearly, this was not what Congress intended. The intent of 
the Congress in enacting the original Act was to lift the 
burden on interstate commerce created by the diverse State 
licensing schemes. With the changes contained in H.R. 624, the 
Act will better achieve that purpose.
    Currently, 33 States require regular criminal background 
checks and weapons training, as requirements for the issuance 
of weapons permits. Only 5 States; Illinois, Louisiana, 
Maryland, North Carolina and Virginia meet the definitions, as 
originally set forth in the Act. Upon passage of this bill, 
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 the other remaining 
States to upgrade their licensing regimes.

                          Legislative History

    Representative Whitfield introduced H.R. 624 and the bill 
was referred to the House Committee on Commerce on February 6, 
1997. The Committee reported the bill by voice vote on February 
13, 1997. On February 26, 1997, the bill was called up by the 
House, under suspension of the rules, and passed by a vote of 
416-0.    
    On February 27, 1997, H.R. 624 was received in the Senate, 
read twice and referred to the Committee on Commerce, Science, 
and Transportation. On November 4, 1997, the Committee in open 
executive session ordered the bill to be reported favorably and 
without amendment by unanimous voice vote.

                      Summary of Major Provisions

    H.R. 624 clarifies the requirements under which states 
would provide reciprocal recognition of weapons licenses issued 
to armored car crew members. It does so by providing 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 service of such 
company, and the State meets the statutes 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.
    The bill also clarifies the minimum requirements needed for 
a State in order to be granted reciprocity. States are required 
to determine if applying crew members have received both 
classroom instruction and range training in weapons safety and 
marksmanship, from a qualified instructor, during the current 
year. States must determine that receipt or possession of a 
weapon by the crew member will not violate any Federal laws. 
Furthermore, when issuing renewal licenses States must 
determine that the crew member received continuing training 
from a qualified instructor, and that the receipt of a weapon 
will not violate any Federal laws.
    Finally, States seeking reciprocity for their weapons 
licenses, under the Act, may not issue either initial or 
renewal licenses for a period exceeding two years, unless such 
States enacted a law prior to October 1, 1996, which provided 
for a longer issuance period. If this is the case then the 
license may be issued for a period no longer than five years.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

               Congressional Budget Office Cost Estimate

H.R. 624--Armored Car Reciprocity Amendments of 1997

    CBO estimates that enacting H.R. 624 would result in no 
cost to the federal government. Because enactment of H.R. 624 
would not affect direct spending or receipts, pay-as-you-go 
procedures would not apply to the bill.
    H.R. 624 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 licenses 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. 624 would repeal the 
standard for reciprocity requiring that the weapons permit be 
renewed on an annual basis. Because the provisions of H.R. 624 
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.
    The CBO staff contact for this estimate is Susanne S. 
Mehlman. This estimate was approved by Robert A. Sunshine, 
Deputy Assistant Director for Budget Analysis.

    Congressional Budget Office Intergovernmental Mandates Statement

H.R. 624--Armored Car Reciprocity Amendments of 1997

                                Summary

    H.R. 624 would amend the Armored Car Reciprocity Act of 
1993 to require reciprocity among states for the licensing of 
members of armored car crews.
    Intergovernmental mandates contained in 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 and as long as time limits on the 
licenses are met.
    Estimated direct costs of mandates to State, local, and 
tribal governments: Do the direct costs exceed the statutory 
threshold ($50 million in 1996, adjusted annually for 
inflation)? No.
    Total direct costs of mandates: CBO estimates that the 
mandate contained in H.R. 624 would impose direct costs on 
State, local, and tribal governments totaling less than 
$500,000 annually.
    The mandate imposed by H.R. 624 would affect states that 
have regulations governing the licensing of members of armored 
car crews 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. 624 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. 624. 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 annual 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.
    Appropriation or other Federal financial assistance 
provided in bill to cover mandate costs: None.
    Other impacts on State, local, and tribal governments: 
None.
    Estimate prepared by: Leo Lex.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  The bill, as reported, would clarify certain requirements 
within the Armored Car Industry Reciprocity Act of 1993, and it 
would improve the flow of interstate commerce. The bill would 
help to reduce the financial burden on armored car companies 
who are required to obtain licenses or permits in every State 
in which an armored car crew may travel. The bill would have no 
effect on the number of individuals already regulated or on the 
personal privacy of such individuals.

                      Section-by-Section Analysis

Section 1. Short title

    Section 1 provides the short title of the bill, the Armored 
Car Reciprocity Amendments of 1997.

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

    Subsection (a) amends section 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 service 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 section 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 from a qualified instructor for each weapon that the crew 
member is licensed to carry, and (2) that the receipt or 
possession of a weapon by the crew member would not violate any 
Federal law, as determined on the basis of criminal records 
background check conducted during the current year. When 
issuing renewal licenses, the State must determine to its 
satisfaction that (1) the crew member 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.
    Paragraph (3) of subsection (b) places a further 
qualification on States seeking reciprocity for their weapons 
licenses under the Act.In order for a State's license to meet 
the minimum standards for reciprocity, a State may not issue either an 
initial or renewal license for a period exceeding two years, unless 
such State enacted a law prior to October 1, 1996, which provided for a 
longer issuance period, in which case the license may be issued for no 
longer than five years.

Section 3. Effective date

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

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                      TITLE 15. COMMERCE AND TRADE

              CHAPTER 85. ARMORED CAR INDUSTRY RECIPROCITY

Sec. 5902. 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 from a 
                qualified instructor for each weapon that the 
                crew member will be licensed to carry; 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;
          (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; and
          (3) in issuing a weapons license under paragraph (1) 
        or paragraph (2), as the case may be--
                  (A) the agency issues such license for a 
                period not to exceed two years; or
                  (B) the agency issues such license for a 
                period not to exceed five years in the case of 
                a State that enacted a State law before October 
                1, 1996, that provides for the issuance of an 
                initial weapons license or a renewal of a 
                weapons license, as the case may be, for a 
                period not to exceed five years.

                                
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