Thank you Aguila, for your detailed responses. I think I understand your points, and the language of the proposed law you have quoted.
However, I am not (quite) seeing the answer to the question that is bugging me, so let me phrase it a different way. (and I'm going to use the OP's situation-in general)
You live in NJ.
You do NOT have an NJ permit.
You DO have a NH (non-resident) permit.
Currently, your NH permit allows you to carry in states that recognize it (such as PA) It does not allow you to carry in states that do not recognize it (such as NJ, your home state).
If the current bill for National Reciprocity passes, then NJ will have to recognize the NH permit, for non-NJ residents, to allow them to carry in NJ, under the out of state permit. Right? This is the intent of the bill, to allow non-residents of a state to legally carry in a different state, if they have a permit from their home state.
SO, how does this affect carry in your home state, if you do not have your home state's required permit??? Does/would having a permit from a different state override your home state's laws about carry by a resident, inside his state of residence's borders???
I didn't bring up drivers licenses as a direct comparison, only as a general comparison, showing how, residents are required to (after a grace period) obtain resident licenses. To show how the state can honor your out of state license (for a time) as they do out of state residents, but require residents to obtain the proper license for the state they are actually living in.
What I am wondering comes down to this, if you live in a state that requires a state issued license for state residents to carry, in their state of residence, would the Fed law requiring a state to recognize other states licenses, cancel out the state's requirement for their states permit to allow carry in their state, by a resident of their state, IF that resident has a license from another state, but does not have one from their state of residence??
I am only looking for opinions here, as I do recognize that there can be no established fact on the matter until it becomes law, and then gets challenged, and a court rules on the matter. (possibly several courts, up to the SCOTUS)
Another, somewhat similar situation would be NYC. NYC does not recognize permits issued by NY State, only those issued by NYC. My NY State permit specifically said "not valid in New York City" on it!
Would National Reciprocity change that? Or, would NYC vs NYS be considered an "in state" matter, where the Fed law would have no bearing??
Could the proposed Fed law create a situation where NYC would have to recognize the permits of out of state visitors, (to comply with Fed law) but still deny carry to residents of New York state, who have a NYState permit, but don't have a NYC permit?
I realize it is a can of worms. What I'm wondering about is, if the proposed law becomes law, who "owns" you, at home?
Currently its clear, your home state does. You live there, and fall under their rules, inside their state borders.
The OP has posited an interesting situation. He lives in NJ, and is under NJ law while in NJ. When he leaves NJ, he's under other states laws, and can use his non-resident permit in other states that allow it. But when he's in his home state, he has to follow his home state's laws.
SO, if NJ becomes forced to recognize all non-NJ permits, does this create a "catch-22" situation for NJ residents who have out of state permits and don't have the NJ permit??
Which law would cover the NJ RESIDENT, inside NJ??? My reasoning says resident needs state of residence permit to be legal. BUT, here we have someone saying "hey, I have an out of state permit, that Fed law says you have to recognize!" (with the implication being they can thumb their nose at their home state's permit requirement for residents, because they have an out of state permit that their home state "must" recognize)
The language of the proposed law does not seem to specifically cover this.