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PBSA Journal PAGE 6 JULY/AUG 2025 Except where otherwise indicated, articles are copyright © by PBSA 2025. All rights reserved. I n the United States, the regulation of AI became a flashpoint during the recent debate in Congress related to the "One Big Beautiful Bill" (OBBB). While the primary areas of focus of the OBBB included tax policy, immigration and entitlement funding, AI emerged as one of the more contentious issues after the House passed a version of OBBB that included a 10-year "moratorium" on state and local AI legislation by tying to billions of dollars in federal broadband funding to states' refraining from adopting new AI policies. To be clear, the House version of the OBBB did not include any federal AI standards, it merely sought to curb state action on this topic for a 10-year period, to provide time for Congress to act while minimizing the likelihood of the adoption of differing approaches at the state level as has been the case in other policy areas. While the debate on this issue in the House was limited, that changed significantly once the bill moved to Senate in late June. Two factions within the Senate Republican conference raised objections, including Senators representing states that have adopted AI statutes already and others who argued that the moratorium was too favorable for "big tech." Initially, Senate negotiators trimmed the ban to a 5-year "pause" and carved out child-safety, artist, and public-interest exemptions, but even that compromise did not hold for more than 24 hours. More than 260 state lawmakers, 17 GOP governors, 40 attorneys general, and consumer and civil-rights groups condemned the moratorium as stripping vital state protections. Additionally, MAGA-driven grassroots activity flooded Senate offices with phone calls condemning it as Big Tech overreach. Ultimately, the divide became intractable and on July 1, Sen. Marsha Blackburn (R-TN) sponsored a floor amendment to strip the provision. The amendment passed with a 99–1 vote, stripping any federal ban on state AI regulation. Only Sen. Thom Tillis (R-NC) dissented. On July 4, President Donald Trump signed OBBB into law, retaining over $1 billion in funding for the development of AI but also leaving states free to regulate as they see fit, at least for now. Looking forward, this debate underscores the need for Congress to establish a federal framework on AI, especially against the backdrop in which more than 1,000 AI-related bills have been introduced at the state level in 2025 alone. There is cause for some optimism that Congress may act as AI has been one of the few areas of bi-partisan cooperation in Congress since 2023 with both the House and Senate empowering bi-partisan working groups on the topic last Congress. This month, the White House is expected to unveil a set of proposals addressing AI. This should provide a road map as to what policies can be addressed administratively, and where legislation would be needed. Already, Senate Commerce Committee Chairman Ted Cruz (R-TX), stated he wanted to prioritize legislating in the space. One question remains outstanding is the degree to which AI policy will move independently or will be tied to broader privacy legislation. We expect more clarity on that point in the fall, when Congress returns from its August recess. l U.S. Federal Preemption of State AI Regulation? Not So Fast By Jamie Tucker, PBSA Legislative Partner, Akin Gump Strauss Hauer & Feld Legislative Update JAN/FEB 2025 2025: The Year of Global Opportunity and Collaboration By Susie Thomson, Secretary/Treasurer T o be elected PBSA Secretary/ Treasurer was, for me, one of those unforgettable life moments, and a stand-out highlight of my 2024. The first European to be elected in the role is not only a huge responsibility and privilege but also demonstrates the Association's increasing presence on the international stage as it continues to drive our strategic goal to grow global PBSA membership, increase our value proposition outside of US, and position PBSA as a global brand in the mind of stakeholders worldwide. PBSA has made huge strides in expanding our global membership footprint. If you attended any one of our five annual 2024 Conferences in US, APAC, Europe and Canada, you could not fail to recognise the many nationalities within our international community of member companies who were networking, collaborating, and creating broader alliances and trading opportunities to the benefit of all. That is set to continue in 2025 with an exciting programme of international Conferences planned where the globalisation conversation continues to sit front row. We recognise there is still much work to do to grow PBSA awareness, particularly outside of US, and in doing so generate opportunity for all. In the UK, for example, PBSA may be known to a high percentage of established background screening companies, but still has a large addressable market to educate, a key objective for our Europe Council in their targeted outreach efforts. Equally customers/end users in Europe are mostly uninformed about the benefits of contracting with a PBSA member and its value proposition. We plan to change that in 2025. This year again promises to be a year of opportunity for our industry. A notable 2024 success was the launch and game changing impact of PBSA General Accreditation, with 17 PBSA member companies achieving General Accreditation as a market differentiator. With more new entrants in industry, the timing of the launch was perfect, a call out to raise industry standards and PBSA awareness for buyers seeking professional background checking services. Together with increased PBSA global marketing initiatives and the efforts of our in-country IN THIS ISSUE The Year of Global Opportunity and Collaboration 1 Fast Start on the U.S. Legislative Front 5 Better Know a Provider - United States 7 Policy for CRAs: Compliance Across Political Divides 10 Navigating Complexities in Pre-employment Screening in the U.S. 13 How Background Checks Reveal the Unseen Truths 16 PBSA Accredited Companies 19 Mission, Comments and Article Submission 21 Except where otherwise indicated, articles are copyright © by PBSA 2025. All rights reserved. JOURNAL Continued on page 3 PAGE 1 PBSA has made huge strides in expanding our global membership footprint. If you attended any one of our five annual 2024 Conferences in US, APAC, Europe and Canada, you could not fail to recognise the many nationalities. Advertise in the PBSA Journal Looking for an opportunity to present your products and services to an engaged audience? The PBSA Journal e-magazine is distributed 6 times per year to the full PBSA member contact list of over 7,000 background screening professionals. View the 2025 ADVERTISING MEDIA KIT for full details. NOV/DEC 2024 2024 in the Rearview By Michelle Leblond, Director of Operations A s 2024 quickly moves into our collective rearview mirror, it is a good time to look back on a year that was full of activity and share some of the highlights with our members. Although we are not going backward, there is always a lot to learn from the experiences we have that will make the future road even smoother. The year started strong in the APAC Council with a strategic initiative to create their first-ever Government Relations (GR) Committee. Selecting key focus regions in India, China/Hong Kong, Australia/New Zealand, and Indonesia/ Malaysia/Thailand has helped the committee monitor upcoming legislation and changes to existing regulations and begin to understand some of the nuances of doing business across the vast APAC region. To date, we have submitted feedback to no less than 10 consultations and have published two member resources on Thai, Malaysian, and Indonesian Data Privacy Updates and a Summary of Changes to Criminal Laws in India. Not to be outdone, Canada Council's GR Committee has also created two strategic relationships with the John Howard Society and Gowlings law firm. They also had significant success earlier this year getting the Ministry of the Solicitor General to reverse a decision that prohibited the use of industry criminal record checks for Private Security Guards and Investigators. None of this success would be possible without the connections and efforts of our member volunteers – thank you! Our Europe Council is also formalizing their GR approach which will expand beyond just the Criminal Records Trade Body in the UK to deliver a more fulsome coverage of their efforts as we work through the next strategic plan. We have been able to leverage the knowledge and leverage of many efforts in the U.S. Council's GR Committee to help our global Councils continue to evolve in this area. While the topics and policies may differ around the globe, the role PBSA plays and our positions do not. Of course, in the U.S. IN THIS ISSUE 2024 in the Rearview 1 Adverse Media vs. Social Media 4 Better Know a Provider – United States 6 Accreditation Program Feedback 9 Synthetic Drug vs. Traditional Drug Testing 12 May All Your Favorite Bands Stay Together 14 Introducing the 2024-2025 Board of Directors 16 Affinity Program Highlight: SeyfarthLean Consulting 21 PBSA Accredited Companies 23 Mission, Comments & Article Submission 24 Except where otherwise indicated, articles are copyright © by PBSA 2024. All rights reserved. JOURNAL Continued on page 3 PAGE 1 None of this success would be possible without the connections and efforts of our member volunteers – thank you! MAR/APR 2025 Riding The AI Wave: How U.S. State Legislation Could Reshape Background Screening By Alonzo Martinez F rom Massachusetts to New Mexico, state lawmakers are racing to define the rules of the road for artificial intelligence. In 2025 alone, more than a dozen bills have emerged proposing frameworks that aim to balance innovation, consumer protection, and transparency. The PBSA's AI Taskforce, which sits within the Government Relations Committee, has closely tracked this surge in state-level activity, analyzing how these proposals—each unique in scope and enforcement—might affect the background screening industry. Despite their differences, these bills reveal common themes and signal a clear trajectory: developers, integrators, and deployers of high-risk AI systems should prepare for enhanced scrutiny, transparency mandates, and legal obligations designed to mitigate algorithmic discrimination. Shared Themes Across the Legislative Landscape While each bill reflects its state's priorities, several consistent regulatory themes have emerged: 1. Focus on High-Risk AI Systems. Most legislation targets "high-risk" or "consequential" AI—systems that influence decisions related to employment, housing, credit, education, and healthcare. Virginia's HB 2094, for example, defines high-risk AI as systems used to make or substantially influence consequential decisions and places specific obligations on both developers and deployers. Similarly, Maryland SB 936, New Mexico HB 60, and Rhode Island SB 627 include detailed criteria to identify such systems. 2. Mandated Impact Assessments and Risk Management. A consistent requirement across Virginia, Illinois, Maryland, Massachusetts, New York, and others is the implementation of risk management frameworks and algorithmic impact assessments. These requirements echo the National Institute of Standards and Technology (NIST) AI Risk Management Framework and ISO/IEC 42001, suggesting a growing consensus around best practices for responsible AI. 3. Algorithmic Discrimination Safeguards. Preventing bias and discrimination is a top priority. Many bills—including those in Colorado, New Mexico, and New York— require that AI systems be evaluated for discriminatory impact on protected classes. Massachusetts S 35 and S 37 go a step further, incorporating anti-retaliation protections and whistleblower safeguards for individuals raising concerns about algorithmic bias. IN THIS ISSUE Riding The AI Wave 1 Better Know a Provider 6 Navigating the Disclosure (Scotland) Act 2020 and Mandatory PVG Scheme Membership 9 Propping Up the PBSA Provider Certificate 15 A Trip Around the Government Relations Globe 18 PBSA Accredited Companies 21 Mission, Comments, and Article Submission 23 Except where otherwise indicated, articles are copyright © by PBSA 2025. All rights reserved. JOURNAL Continued on page 3 PAGE 1

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