Bill Text: NY A01799 | 2013-2014 | General Assembly | Introduced

---

Bill Title: Relates to limiting an employer's access to consumer credit reports in connection with employment applications.

Spectrum: Moderate Partisan Bill (Democrat 7-1)

Status: (Introduced - Dead) 2014-01-08 - referred to consumer affairs and protection [A01799 Detail]

Download: New_York-2013-A01799-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1799
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  M.  of  A.  SKARTADOS  --  read once and referred to the
         Committee on Consumer Affairs and Protection
       AN ACT to amend the general business law, in  relation  to  limiting  an
         employer's  access  to  consumer  credit  reports  in  connection with
         employment applications
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Paragraph  3  of  subdivision (a) of section 380-b of the
    2  general business law, as amended by chapter 797 of the laws of 1984,  is
    3  amended to read as follows:
    4    (3)  To  a  person  whom  it  has reason to believe intends to use the
    5  information (i) in connection with a credit  transaction  involving  the
    6  consumer  on  whom  the information is to be furnished and involving the
    7  extension of credit to, or review or collection of an  account  of,  the
    8  consumer,  or  (ii)  for  employment  purposes  IN  ACCORDANCE  WITH THE
    9  PROVISIONS OF SUBDIVISION (E) OF THIS SECTION, or  (iii)  in  connection
   10  with  the  underwriting  of insurance involving the consumer, or (iv) in
   11  connection with a determination of  the  consumer's  eligibility  for  a
   12  license  or  other  benefit  granted  by  a governmental instrumentality
   13  required by law to consider an applicant's financial  responsibility  or
   14  status,  or  (v)  to  a person in connection with a business transaction
   15  involving the consumer where the user has a legitimate business need for
   16  such information, or (vi) in connection with the rental or  lease  of  a
   17  residence.
   18    S  2. Section 380-b of the general business law is amended by adding a
   19  new subdivision (e) to read as follows:
   20    (E) NO PERSON SHALL REQUEST A CONSUMER CREDIT  REPORT  OR  A  CONSUMER
   21  REPORT,  OTHER THAN AN INVESTIGATIVE CONSUMER REPORT, IN CONNECTION WITH
   22  AN APPLICATION FOR EMPLOYMENT UNLESS THE POSITION FOR WHICH  THE  APPLI-
   23  CANT IS APPLYING OR INTERVIEWING ENTAILS DIRECT ACCESS TO FUNDS OR NEGO-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00365-01-3
       A. 1799                             2
    1  TIABLE INSTRUMENTS OR DIRECTLY INVOLVES FINANCIAL OVERSIGHT OR RESPONSI-
    2  BILITY, OR IS OTHERWISE REQUIRED BY LAW.
    3    S  3. Subdivision (d) of section 380-c of the general business law, as
    4  added by chapter 867 of the laws of 1977, is amended to read as follows:
    5    (d) If a person applying for credit, insurance, or employment  refuses
    6  to authorize the procurement or preparation of an investigative consumer
    7  report,  the  prospective  creditor,  insurer or employer may decline to
    8  grant credit, insurance or employment on the grounds that the  applicant
    9  refused to execute such authorization; PROVIDED THAT AN EMPLOYER MAY NOT
   10  DECLINE  TO  OFFER EMPLOYMENT ON THE GROUNDS THAT A PROSPECTIVE EMPLOYEE
   11  REFUSES TO AUTHORIZE THE PROCUREMENT OR PREPARATION OF A CONSUMER CREDIT
   12  REPORT OR CONSUMER REPORT TO WHICH THE EMPLOYER IS NOT ENTITLED PURSUANT
   13  TO SUBDIVISION (E) OF SECTION THREE HUNDRED EIGHTY-B OF THIS ARTICLE.
   14    S 4. This act shall take effect immediately.