We wanted to provide you with an important update regarding Virginia’s state-mandated Business Screening Services program and its potential impact on consumer reporting agencies (CRAs), wholesalers, and other organizations that rely on Virginia court records.
Under the current framework, the program is proposing that entities such as CRAs and wholesalers pay an annual registration fee of $30,000 to the Virginia State Police (VSP). In return, registered organizations would receive monthly notifications identifying cases that have been officially sealed. Participating organizations would also be required to develop and maintain software capable of systematically identifying and excluding those sealed cases from their systems.
Without registration in the program, there is currently no assurance that sealed records would be excluded from reporting. Virginia courts have indicated that they cannot guarantee sealed records will be removed from the public access systems used by our industry, creating the risk that records which should no longer be disclosed could inadvertently be reported.
The Professional Background Screening Association (PBSA) Government Relations Committee is actively working to address both the significant registration fee and broader concerns surrounding the legislation.
TrueCordis is collaborating closely with PBSA to ensure compliance where necessary while also exploring practical solutions, including potential legislative adjustments, that would make these requirements more reasonable and workable for the industry.
We are encouraged to report meaningful progress. Our lobbyist recently met with Virginia Secretary of Public Safety Stan Meador, who acknowledged that the proposed $30,000 annual fee is problematic and unworkable. Secretary Meador directed Deputy Secretary Jacquelyn Katson to review the fee structure, evaluate the VSP’s rationale, and develop more appropriate alternatives. He emphasized that resolving this issue is a priority for the administration.
Since that meeting, the Secretary of Public Safety has instructed the VSP to revisit the analysis used to establish the registration fee, as both his office and the Governor’s Office recognize that the current proposal is not viable. We have also learned that Governor Youngkin would like to see this issue addressed legislatively during the upcoming budget session. This development represents a significant step forward, particularly given initial concerns that changes could not be incorporated during the special session.
Our lobbyist remains actively engaged, meeting regularly with Governor’s Office staff and maintaining ongoing communication with the Secretary of Public Safety. They confirmed that the reading of the bill was to only recover cost for administering the BSS program, and not to generate any revenue for the VSP. The PBSA as also offered assistance in providing information and industry perspective to help establish a fee structure that is reasonable and appropriate, particularly for organizations that do not maintain criminal record databases.
We will continue monitoring developments closely and advocating for practical, reasonable solutions on behalf of our clients and the industry. As additional information becomes available, we will keep you informed.