Is a state Private Investigator's license needed for 1099 background investigator?

Is a private investigator’s license ever required by a State to work as a 1099 federally credentialed contractor?

A background investigator is not a private investigator. You’re not snooping into people’s lives… you have a signed release of information and the Subject’s consent and participation.

In most states, when you conduct background investigations under a federal government contract you are exempt from being required to obtain a PI license. You have to look at the law in your state. I say “most” states because I don’t know the law in every state. Just check the requirement for your state.

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Unfortunately, I don’t see any specific BI contractor exemption under the state statutes where I’m at. I have heard there might be a preemption under federal law or regulations but I haven’t seen anything concrete.

No, it is not necessary.