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MontanaHB 25469th Legislature, Regular Session (2025)HouseWALLET

Eliminate fingerprint background check requirements for professional employer organization

Sponsored By: Melissa Nikolakakos (Republican)

Became Law

Professions and Occupations Generally

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 1 costs, 4 mixed.

PEO financial strength and payroll safeguards

For an unrestricted PEO license, you must keep at least $50,000 in tangible net worth. You can instead file compiled financials and post a $100,000 security deposit; that deposit does not count toward net worth. Your financial statements must show positive working capital, be dated within six months, and be signed by the president, CFO, and a controlling person. If you fall short on net worth, you must post at least $50,000 in a surety bond, letter of credit, or marketable securities. After licensure, the state can use your posted security to pay unpaid wages or payroll taxes, and it may accept an affidavit from an approved assurance group instead of some financials if it adopts rules.

PEO license paperwork and fees

To get a Montana PEO license, you file the state form and pay a one-time fee. You pay $750 for an unrestricted license or $500 for a restricted license. You must give your trade name, EIN, main address, any Montana office addresses, and names used in the past five years. You must list officers, directors, and anyone owning 5% or more (or all partners), and individuals must be at least 18. If you have no Montana registered agent, you must appoint one, and the department may ask for proof of good character.

Fingerprint checks and rehab review

Before a license is issued, you and any controlling person must submit fingerprints for state and FBI checks and sign releases. You must pay any background check fees. The Department of Justice sends results to the licensing department and promptly destroys the fingerprint card. If you have past convictions, you can ask the department to find you rehabilitated under 37-1-203. The department can deny a license if it finds rehabilitation is not sufficient.

Provisional licenses, but no transfers

The department may let you operate under a provisional license while it reviews your application. There is no fee for a provisional license. PEO licenses cannot be transferred or sold to another person or company.

Rules for out-of-state PEOs

Out-of-state PEOs can get a restricted Montana license in narrow cases. You must be licensed and in good standing in your home state, and that state must give similar privileges to Montana PEOs. You may not keep a Montana office or sales force, may not solicit Montana clients, and may have no more than 100 leased employees working in Montana. If your home state requires PEO licensing, you must hold that home-state license before getting a Montana license.

Sponsors & Cosponsors

Sponsor

  • Melissa Nikolakakos

    Republican • House

Cosponsors

  • Gregg Hunter

    Republican • Senate

  • Steve Fitzpatrick

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 267 • No: 30

House vote • 3/31/2025

Do Concur

Yes: 34 • No: 16

House vote • 3/28/2025

Do Concur

Yes: 34 • No: 13

House vote • 2/5/2025

Do Pass

Yes: 100 • No: 0

House vote • 2/4/2025

Do Pass

Yes: 99 • No: 1

Actions Timeline

  1. Chapter Number Assigned

    4/17/2025House

  2. Signed by Governor

    4/16/2025House

  3. Transmitted to Governor

    4/9/2025House

  4. Signed by President

    4/9/2025Senate

  5. Signed by Speaker

    4/7/2025House

  6. Returned from Enrolling

    4/2/2025House

  7. Sent to Enrolling

    3/31/2025House

  8. 3rd Reading Concurred

    3/31/2025Senate

  9. 2nd Reading Concurred

    3/28/2025Senate

  10. 2nd Reading Pass Consideration

    3/27/2025Senate

  11. Committee Report--Bill Concurred

    3/20/2025Senate

  12. Committee Executive Action--Bill Concurred

    3/20/2025Senate

  13. Hearing

    3/15/2025Senate

  14. Hearing

    3/6/2025Senate

  15. Hearing Canceled

    2/28/2025Senate

  16. Hearing

    2/27/2025Senate

  17. Referred to Committee

    2/20/2025Senate

  18. First Reading

    2/6/2025Senate

  19. Transmitted to Senate

    2/5/2025House

  20. 3rd Reading Passed

    2/5/2025House

  21. 2nd Reading Passed

    2/4/2025House

  22. Committee Report--Bill Passed

    1/29/2025House

  23. Committee Executive Action--Bill Passed

    1/29/2025House

  24. Committee Executive Action--Bill Passed

    1/29/2025House

  25. Hearing

    1/24/2025House

Bill Text

  • Enrolled

    4/15/2025

    PDF

  • Introduced

    1/17/2025

    PDF

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