Bill Text: NY A02611 | 2019-2020 | General Assembly | Amended

Bill Title: Prohibits the use of consumer credit history in hiring, employment and licensing determinations.

Spectrum: Partisan Bill (Democrat 38-0)

Status: (Introduced) 2019-05-14 - reported referred to codes [A02611 Detail]

Download: New_York-2019-A02611-Amended.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 24, 2019
          Multi-Sponsored by -- M.   of A. DenDEKKER,  GALEF,  GRIFFIN,  JAFFEE,
          PERRY,  SIMON  --  read once and referred to the Committee on Consumer
          Affairs and Protection -- committee discharged, bill amended,  ordered
          reprinted  as  amended  and  recommitted  to  said  committee -- again
          reported from said committee with  amendments,  ordered  reprinted  as
          amended and recommitted to said committee
        AN ACT to amend the general business law, in relation to prohibiting the
          disclosure  or use of a person's consumer credit history to an employ-
          er,  labor  organization,  employment  agency  or  agent  thereof  for
          purposes of employment decisions
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 380-a of the general business  law  is  amended  by
     2  adding a new subdivision (u) to read as follows:
     3    (u)  The  term  "consumer credit history" means an individual's credit
     4  worthiness, credit standing, credit  capacity  or  payment  history,  as
     5  indicated by:
     6    (1) a consumer credit report;
     7    (2) credit score; or
     8    (3)  information  an  employer  obtains  directly  from the individual
     9  regarding (i) details about credit accounts, including the  individual's
    10  number  of  credit accounts, late or missed payments, charged-off debts,
    11  items in collections, credit limit or prior credit report inquiries,  or
    12  (ii) bankruptcies, judgments or liens.
    13    A  consumer  credit report shall include any written or other communi-
    14  cation of any information by a consumer reporting agency that bears on a
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 2611--B                          2
     1  consumer's creditworthiness, credit standing, credit capacity or  credit
     2  history.
     3    §  2.  Subdivision (d) of section 380-b of the general business law is
     4  relettered subdivision (f) and two new  subdivisions  (d)  and  (e)  are
     5  added to read as follows:
     6    (d)  (1) Except as provided in this subdivision, it shall be an unlaw-
     7  ful discriminatory practice for an employer, labor organization, employ-
     8  ment agency or any agent thereof to request or  to  use  for  employment
     9  purposes  the  consumer credit history of an applicant for employment or
    10  employee, or otherwise discriminate against  an  applicant  or  employee
    11  with regard to hiring, compensation,  or the terms, conditions or privi-
    12  leges  of  employment based on the consumer credit history of the appli-
    13  cant or employee.
    14    (2) Paragraph one of this subdivision shall not apply to:
    15    (i) an employer, or agent thereof, that is required by state or feder-
    16  al law or regulations or by a self-regulatory organization as defined in
    17  section 3(a)(26) of the securities exchange act of 1934, as  amended  to
    18  use an individual's consumer credit history for employment purposes;
    19    (ii) persons applying for positions as or employed:
    20    (A)  as  peace officers or police officers, as those terms are defined
    21  in subdivisions thirty-three and thirty-four  of  section  1.20  of  the
    22  criminal  procedure  law,  respectively,  or  in  a  position with a law
    23  enforcement or investigative function in a law enforcement agency;
    24    (B) in a position in which an employee is required to be bonded  under
    25  local, state or federal law;
    26    (C) in a position in which an employee is required to possess security
    27  clearance under federal law or the law of any state;
    28    (D) in a non-clerical position having regular access to trade secrets,
    29  intelligence information or national security information;
    30    (E)  in  a  position:  (I)  having  access to third party, consumer or
    31  employer funds or assets valued at ten thousand dollars or more; or (II)
    32  that involves a  fiduciary  responsibility  to  the  employer  with  the
    33  authority  to  enter financial agreements or initiate, modify or approve
    34  payments, valued at ten thousand  dollars  or  more  on  behalf  of  the
    35  employer; or
    36    (F)  in  a  position  with  regular  duties that allow the employee to
    37  design, monitor, access, provision access  and/or  modify  (I)  systems,
    38  applications   or  databases  containing  confidential  employer  and/or
    39  customer data; or (II) digital security systems established  to  prevent
    40  the  unauthorized  use  of  the employer's or client's networks or data-
    41  bases.
    42    (3) Paragraph one of this subdivision shall not be construed to affect
    43  the obligations of persons required by state or local  law  relating  to
    44  disclosures by public employees of conflicts of interest.
    45    (4) As used in this subdivision:
    46    (i)  The  term  "intelligence  information"  means  records  and  data
    47  compiled for the purpose of criminal investigation or  counterterrorism,
    48  including  records  and  data  relating  to  the  order or security of a
    49  correctional facility, reports of  informants,  investigators  or  other
    50  persons,  or  from any type of surveillance associated with an identifi-
    51  able individual, or investigation or  analysis  of  potential  terrorist
    52  threats.
    53    (ii)  The  term  "national  security  information" means any knowledge
    54  relating to the national defense or  foreign  relations  of  the  United
    55  States,  regardless  of  its  physical  form or characteristics, that is
    56  owned by, produced by or for, or is under  the  control  of  the  United

        A. 2611--B                          3
     1  States government and is defined as such by the United States government
     2  and its agencies and departments.
     3    (iii)  The  term  "trade  secrets" means information that: (A) derives
     4  independent economic value, actual or potential, from not being general-
     5  ly known to, and not being readily  ascertainable  by  proper  means  by
     6  other  persons who can obtain economic value from its disclosure or use;
     7  (B) is the subject of efforts that  are  reasonable  under  the  circum-
     8  stances  to  maintain  its secrecy; and (C) can reasonably be said to be
     9  the end product of significant innovation.
    10    The term "trade secrets" does not include general proprietary  company
    11  information  such as handbooks and policies. The term "regular access to
    12  trade secrets" does not include access to or the use of client, customer
    13  or mailing lists.
    14    (5) Nothing in  this  subdivision  shall  preclude  an  employer  from
    15  requesting  or receiving consumer credit history information pursuant to
    16  a lawful subpoena, court order or law enforcement investigation.
    17    (e) (1) Except as otherwise provided in this subdivision, it shall  be
    18  an unlawful discriminatory practice for any state or municipal agency to
    19  request   or  use  for  licensing  or  permitting  purposes  information
    20  contained in the consumer credit history of an  applicant,  licensee  or
    21  permittee for licensing or permitting purposes.
    22    (2)  Paragraph  one  of  this subdivision shall not apply to an agency
    23  required by state or federal law or regulations to use  an  individual's
    24  consumer credit history for licensing or permitting purposes.
    25    (3) Paragraph one of this subdivision shall not be construed to affect
    26  the  ability of an agency to consider an applicant's, licensee's, regis-
    27  trant's or permittee's failure to pay any tax, fine, penalty or fee  for
    28  which  liability has been admitted by the person liable therefor, or for
    29  which judgment has been entered by a court or administrative tribunal of
    30  competent jurisdiction, or any tax for which  a  government  agency  has
    31  issued a warrant, or a lien or levy on property.
    32    (4) Nothing in this subdivision shall preclude a licensing agency from
    33  requesting,  receiving,  or  using  consumer  credit history information
    34  obtained pursuant to a lawful subpoena, court order or  law  enforcement
    35  investigation.
    36    § 3. The division of human rights shall request information from state
    37  and  local  agencies  and non-governmental employers regarding the agen-
    38  cies' and employers' use of the exemptions  established  in  subdivision
    39  (d)  of section 380-b of the general business law for purposes of hiring
    40  and employment. Within two years of the effective date of this act,  the
    41  division  of  human  rights  shall  submit  to  the legislature a report
    42  concerning the results of such request and any  relevant  feedback  from
    43  agencies and employers.
    44    § 4. This act shall take effect on the one hundred twentieth day after
    45  it shall have become a law.