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Bill

LC 219

Eliminate fingerprint background check requirements for professional employer organization

2025 Regular Session

LC 219 would remove fingerprint-based background checks for PEOs, potentially replacing them with alternatives, cutting onboarding time and costs but risking weaker screening.

(LC) Draft Ready for Delivery
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Bill Summary · LC 219

Summary of LC 219: Eliminate fingerprint background check requirements for professional employer organization

Quick facts

  • Bill number: LC 219
  • Title: Eliminate fingerprint background check requirements for professional employer organization
  • Status: (LC) Draft Ready for Delivery
  • Introduced: September 9, 2024
  • Classification: bill
  • Subject: Professions and Occupations Generally

Overview

LC 219 proposes to remove the requirement for fingerprint-based background checks that apply to professional employer organizations (PEOs) or entities operating as PEOs, according to the bill’s title. PEOs provide human resources outsourcing services, including payroll, benefits administration, and workforce management, often interfacing with client employers and workers assigned to client sites. The bill’s primary aim appears to reduce or eliminate the state-imposed fingerprint background-check mandate tied to PEO activities.

What the bill would do

  • Repeal or modify existing laws that mandate fingerprint-based background checks in connection with professional employer organizations.
  • Potentially replace fingerprint checks with alternative background-screening requirements or remove the background-check requirement for PEO-related activities altogether (the exact mechanism would be specified in the full text).
  • Establish any necessary transitional provisions to implement the change (e.g., effective dates, continued compliance with other background-screening standards, or phased rollouts).

Note: The text of the bill is not provided here, so the summary reflects the objective stated in the title. The specific statutory changes, definitions, and any new procedures would be found in the enacted language.

Affected parties

  • Professional employer organizations (PEOs) and their personnel
  • Clients of PEOs relying on outsourced HR services
  • Workers deployed through PEO arrangements
  • Background-check providers and vendors supporting PEO screening processes
  • State agencies responsible for licensure, regulation, and enforcement of PEO activities

Procedural and timeline aspects

  • Legislative Actions timeline:
    • 2024-09-09: Drafter Assigned
    • 2024-12-30 to 2024-12-31: Draft in various stages (Legal Review, Edit, Input/Proofing)
    • 2025-01-02 to 2025-01-03: Draft in Final Drafter Review; Draft in Assembly
    • 2025-01-06: (LC) Draft Ready for Delivery
  • Status as of the latest update: Draft stage, moving toward delivery to the legislature for consideration.

Potential impacts and considerations

  • Benefits: Reduced onboarding time and administrative costs for PEOs; streamlined processes for placing workers; potential broader flexibility for PEO operations.
  • Risks and concerns: Possible changes to worker safety and accountability standards; need to ensure that any alternative screening methods maintain adequate protections; impact on clients who rely on PEOs for compliant workforce management.
  • Implementation details to watch in the full text: scope of the repeal (which positions or activities are covered), any reference to alternative screening requirements, compliance timelines, and transitional rules.

Next steps for readers

  • Review the full text when available to understand exact language, definitions, and exceptions.
  • Monitor committee hearings and amendments to assess how the repeal would be implemented and enforced.
  • Consider impacts on HR compliance, vendor contracts, and workforce onboarding practices.

Compiled from official sources — confirm details with the bill’s official record.

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