Bill Text: NY A08070 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the "credit privacy in employment act" to prohibit the use of credit information in hiring and employment determinations.
Spectrum: Moderate Partisan Bill (Democrat 12-2)
Status: (Engrossed - Dead) 2012-06-20 - REFERRED TO RULES [A08070 Detail]
Download: New_York-2011-A08070-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8070
2011-2012 Regular Sessions
I N A S S E M B L Y
May 27, 2011
___________
Introduced by M. of A. STEVENSON -- Multi-Sponsored by -- M. of A.
CERETTO, COLTON, CROUCH, GIBSON, M. MILLER, MILLMAN, WRIGHT -- read
once and referred to the Committee on Consumer Affairs and Protection
AN ACT to amend the executive law and the general business law, in
relation to the use of credit history for employment purposes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "credit privacy in employment act".
3 S 2. Section 296 of the executive law is amended by adding a new
4 subdivision 20 to read as follows:
5 20. (A) EXCEPT AS OTHERWISE PROVIDED FOR IN PARAGRAPH (B) OF THIS
6 SUBDIVISION, IT SHALL BE AN UNLAWFUL DISCRIMINATORY PRACTICE FOR AN
7 EMPLOYER, LABOR ORGANIZATION, EMPLOYMENT AGENCY OR LICENSING AGENCY (I)
8 TO USE INFORMATION IN THE CREDIT HISTORY OF A JOB APPLICANT OR EMPLOYEE
9 IN CONNECTION WITH OR AS A CRITERION FOR EMPLOYMENT DECISIONS RELATED TO
10 HIRING, TERMINATION, PROMOTION, DEMOTION, DISCIPLINE, COMPENSATION, OR
11 THE TERMS, CONDITIONS OR PRIVILEGES OF EMPLOYMENT; OR (II) TO REQUEST
12 THE JOB APPLICANT'S OR EMPLOYEE'S CREDIT HISTORY FOR SUCH PURPOSE.
13 (B) THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT
14 APPLY IF THE EMPLOYER IS REQUIRED BY STATE OR FEDERAL LAW TO USE INDI-
15 VIDUAL CREDIT HISTORY FOR EMPLOYMENT PURPOSES.
16 (C) BEFORE AN EMPLOYER MAY REQUEST OR USE A CREDIT HISTORY PURSUANT TO
17 PARAGRAPH (B) OF THIS SUBDIVISION, THE JOB APPLICANT OR EMPLOYEE SHALL
18 BE GIVEN AND SIGN AN AUTHORIZATION AND CONSENT FORM WHICH EXPLICITLY
19 STATES THE SPECIFIC PURPOSE, USE AND LIMITATION OF USE OF SUCH CREDIT
20 HISTORY AS IT PERTAINS TO THE EMPLOYMENT DECISION.
21 (D) AS USED IN THIS SUBDIVISION, "CREDIT HISTORY" MEANS ANY WRITTEN OR
22 OTHER COMMUNICATION OF ANY INFORMATION BY A CONSUMER REPORTING AGENCY,
23 AS DEFINED IN SECTION THREE HUNDRED EIGHTY-A OF THE GENERAL BUSINESS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11204-01-1
A. 8070 2
1 LAW, THAT BEARS ON A CONSUMER'S CREDIT WORTHINESS, CREDIT STANDING OR
2 CREDIT CAPACITY.
3 S 3. Paragraph 3 of subdivision (a) of section 380-b of the general
4 business law, as amended by chapter 797 of the laws of 1984, is amended
5 to read as follows:
6 (3) To a person whom it has reason to believe intends to use the
7 information (i) in connection with a credit transaction involving the
8 consumer on whom the information is to be furnished and involving the
9 extension of credit to, or review or collection of an account of, the
10 consumer, or (ii) for employment purposes, SUBJECT TO THE PROVISIONS OF
11 SUBDIVISION TWENTY OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE
12 LAW, or (iii) in connection with the underwriting of insurance involving
13 the consumer, or (iv) in connection with a determination of the consum-
14 er's eligibility for a license or other benefit granted by a govern-
15 mental instrumentality required by law to consider an applicant's finan-
16 cial responsibility or status, or (v) to a person in connection with a
17 business transaction involving the consumer where the user has a legiti-
18 mate business need for such information, or (vi) in connection with the
19 rental or lease of a residence.
20 S 4. Section 380-b of the general business law is amended by adding a
21 new subdivision (e) to read as follows:
22 (E) NO EMPLOYER SHALL REQUEST OR USE A CONSUMER REPORT OR INVESTI-
23 GATIVE CONSUMER REPORT, WHERE THE REPORT CONTAINS INFORMATION BEARING ON
24 THE CONSUMER'S CREDITWORTHINESS, CREDIT STANDING OR CREDIT CAPACITY, IN
25 CONNECTION WITH OR AS A CRITERION FOR EMPLOYMENT DECISIONS RELATED TO
26 HIRING, TERMINATION, PROMOTION, DEMOTION, DISCIPLINE, COMPENSATION, OR
27 THE TERMS, CONDITIONS OR PRIVILEGES OF EMPLOYMENT, UNLESS THE REPORT IS
28 REQUESTED OR USED PURSUANT TO SUBDIVISION TWENTY OF SECTION TWO HUNDRED
29 NINETY-SIX OF THE EXECUTIVE LAW.
30 S 5. Subdivision (d) of section 380-c of the general business law, as
31 added by chapter 867 of the laws of 1977, is amended to read as follows:
32 (d) If a person applying for credit, insurance, or employment refuses
33 to authorize the procurement or preparation of an investigative consumer
34 report, the prospective creditor, insurer or employer may decline to
35 grant credit, insurance or employment on the grounds that the applicant
36 refused to execute such authorization; PROVIDED, HOWEVER, THAT AN
37 EMPLOYER SHALL NOT REFUSE TO HIRE A PROSPECTIVE EMPLOYEE ON THE GROUNDS
38 THAT THE PROSPECTIVE EMPLOYEE REFUSES TO AUTHORIZE THE PROCUREMENT OF
39 INFORMATION TO WHICH THE EMPLOYER IS NOT ENTITLED PURSUANT TO SUBDIVI-
40 SION TWENTY OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW.
41 S 6. Section 380-i of the general business law is amended by adding a
42 new subdivision (d) to read as follows:
43 (D) IN USING A CONSUMER REPORT OR INVESTIGATIVE CONSUMER REPORT,
44 WHETHER THE REPORT CONTAINS INFORMATION BEARING ON THE CONSUMER'S
45 CREDITWORTHINESS, CREDIT STANDING OR CREDIT CAPACITY, AN EMPLOYER,
46 BEFORE TAKING ANY ADVERSE ACTION BASED IN WHOLE OR PART ON THE REPORT,
47 SHALL PROVIDE TO THE JOB APPLICANT OR EMPLOYEE:
48 (1) THE NAME, ADDRESS, AND TELEPHONE NUMBER OF THE CONSUMER REPORTING
49 AGENCY PROVIDING THE REPORT;
50 (2) A DESCRIPTION OF THE CONSUMER'S RIGHTS UNDER SUBDIVISION TWENTY OF
51 SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND SECTION THREE
52 HUNDRED EIGHTY-B OF THIS ARTICLE; AND
53 (3) A REASONABLE OPPORTUNITY TO RESPOND TO ANY INFORMATION IN THE
54 REPORT THAT IS DISPUTED BY THE CONSUMER.
55 S 7. This act shall take effect on the one hundred eightieth day after
56 it shall have become a law.
