Rep. Balkcom files bill in North Carolina House to amend PEO Act

A new bill filed by State Rep. Balkcom in the North Carolina House seeks to update regulations governing professional employer organizations to improve financial oversight and licensing processes, according to the North Carolina State House.

The bill, filed as HB 717 on April 2 during the 2025 regular session, was formally listed with the short title: ‘Amend NC PEO Act.-AB’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the North Carolina Professional Employer Organization (PEO) Act, as recommended by the Department of Insurance. It revises definitions related to PEOs, including audited GAAP financial statements, tangible net worth, and working capital. It allows for licensing PEO groups under common control, provided each member guarantees the payment of all other members’ financial obligations. The bill requires applicants to submit audited financial statements within 120 days of application, demonstrating positive working capital and a tangible net worth of at least $50,000. It outlines the conditions under which parent company financial statements can be accepted and details requirements for fingerprinting and criminal history checks for controlling persons. Additionally, the bill stipulates the grounds for license denial, mandates quarterly and annual financial reporting, and defines criteria for de minimis registration for PEOs with limited operations in the state. The act takes effect immediately upon becoming law, applying to all license applications thereafter.

A related bill, SB 268, was also filed in the North Carolina Senate, introduced by Sen. Todd Johnson (and two others) on March 12, 2025.

Of the three sponsors of this bill, Mitchell S. Setzer and Balkcom proposed the most bills (32) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Balkcom graduated from Blue Ridge Community College in 2016 with an AA.

Balkcom, a Republican, was elected to the North Carolina State House in 2023 to represent the state’s 117th House district, replacing previous state representative Timothy Moffitt.