Bill Text: NY S02884 | 2019-2020 | General Assembly | Amended
Bill Title: Prohibits the use of consumer credit history in hiring, employment and licensing determinations.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2020-12-28 - COMMITTED TO RULES [S02884 Detail]
Download: New_York-2019-S02884-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2884--E 2019-2020 Regular Sessions IN SENATE January 30, 2019 ___________ Introduced by Sens. SANDERS, CARLUCCI, GOUNARDES, KRUEGER, RAMOS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading -- again amended and ordered reprinted, retaining its place in the order of third reading -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, 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 (v) to read as follows: 3 (v) 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01243-17-0S. 2884--E 2 1 A consumer credit report shall include any written or other communi- 2 cation of any information by a consumer reporting agency that bears on a 3 consumer's creditworthiness, credit standing, credit capacity or credit 4 history. 5 § 2. Subdivision (d) of section 380-b of the general business law is 6 relettered subdivision (g) and three new subdivisions (d), (e) and (f) 7 are added to read as follows: 8 (d) (1) Except as provided in this subdivision, it shall be an unlaw- 9 ful discriminatory practice for an employer, labor organization, employ- 10 ment agency or any agent thereof to request or to use for employment 11 purposes the consumer credit history of an applicant for employment or 12 employee, or otherwise discriminate against an applicant or employee 13 with regard to hiring, compensation, or the terms, conditions or privi- 14 leges of employment based on the consumer credit history of the appli- 15 cant or employee. 16 (2) Paragraph one of this subdivision shall not apply to: 17 (i) an employer, or agent thereof, that is required by state or feder- 18 al law or by a self-regulatory organization as defined in section 19 3(a)(26) of the securities exchange act of 1934, as amended to use an 20 individual's consumer credit history for employment purposes; 21 (ii) persons applying for positions as or employed as peace officers 22 or police officers, as such terms are defined in subdivisions thirty- 23 three and thirty-four of section 1.20 of the criminal procedure law, 24 respectively, or in a position with a law enforcement or investigative 25 function in a law enforcement agency. 26 (3) Paragraph one of this subdivision shall not be construed to affect 27 the obligations of persons required by state or local law relating to 28 disclosures by public employees of conflicts of interest. 29 (4) Nothing in this subdivision shall preclude an employer from 30 requesting or receiving consumer credit history information pursuant to 31 a lawful subpoena, court order or specific law enforcement investi- 32 gation. 33 (e) (1) Except as otherwise provided in this subdivision, it shall be 34 an unlawful discriminatory practice for any state or municipal agency to 35 request or use for licensing or permitting purposes information 36 contained in the consumer credit history of an applicant, licensee or 37 permittee for licensing or permitting purposes. 38 (2) Paragraph one of this subdivision shall not apply to an agency 39 required by state or federal law to use an individual's consumer credit 40 history for licensing or permitting purposes. 41 (3) Paragraph one of this subdivision shall not be construed to affect 42 the ability of an agency to consider an applicant's, licensee's, regis- 43 trant's or permittee's failure to pay any tax, fine, penalty or fee for 44 which liability has been admitted by the person liable therefor, or for 45 which judgment has been entered by a court or administrative tribunal of 46 competent jurisdiction, or any tax for which a government agency has 47 issued a warrant, or a lien or levy on property. 48 (4) Nothing in this subdivision shall preclude a licensing agency from 49 requesting, receiving, or using consumer credit history information 50 obtained pursuant to a lawful subpoena, court order or specific law 51 enforcement investigation. 52 (f) This section does not annul, alter, affect or exempt any employer, 53 labor organization, employment agency or any agent thereof subject to 54 the provisions of this section from complying with any local law, ordi- 55 nance or regulation with respect to the use of consumer credit history 56 for employment purposes except to the extent that those laws are incon-S. 2884--E 3 1 sistent with any provision of this section, and then only to the extent 2 of such inconsistency. For purposes of this subdivision, a local law, 3 ordinance or regulation is not inconsistent with this section if the 4 protection such law or regulation affords an employee or job applicant 5 is greater than the protection provided by this section. 6 § 3. The division of human rights shall request information from state 7 and local agencies and non-governmental employers regarding the agen- 8 cies' and employers' use of the exemptions established in subdivision 9 (d) of section 380-b of the general business law for purposes of hiring 10 and employment. Within two years of the effective date of this act, the 11 division of human rights shall submit to the legislature a report 12 concerning the results of such request and any relevant feedback from 13 agencies and employers. 14 § 4. This act shall take effect on the one hundred twentieth day after 15 it shall have become a law.