[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.