Bill Text: NY A01161 | 2021-2022 | General Assembly | Amended
Bill Title: Prohibits the use of consumer credit history in hiring, employment and licensing determinations.
Spectrum: Partisan Bill (Democrat 31-0)
Status: (Introduced - Dead) 2022-01-05 - referred to consumer affairs and protection [A01161 Detail]
Download: New_York-2021-A01161-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1161--A 2021-2022 Regular Sessions IN ASSEMBLY January 7, 2021 ___________ Introduced by M. of A. DINOWITZ, L. ROSENTHAL, WEPRIN, RODRIGUEZ, OTIS, ABINANTI, SEAWRIGHT, SOLAGES, REYES, TAYLOR, SAYEGH, GOTTFRIED, EPSTEIN, STIRPE, HYNDMAN, DE LA ROSA, STECK, COOK, GLICK, CRUZ, ZEBROWSKI, WALLACE, FALL, FRONTUS, FERNANDEZ, DARLING, BARRON -- Multi-Sponsored by -- M. of A. GALEF, GRIFFIN, 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 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. 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 15 consumer's creditworthiness, credit standing, credit capacity or credit 16 history. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05213-02-1A. 1161--A 2 1 § 2. Subdivision (d) of section 380-b of the general business law is 2 relettered subdivision (g) and three new subdivisions (d), (e) and (f) 3 are added to read as follows: 4 (d) (1) Except as provided in this subdivision, it shall be an unlaw- 5 ful discriminatory practice for an employer, labor organization, employ- 6 ment agency or any agent thereof to request or to use for employment 7 purposes the consumer credit history of an applicant for employment or 8 employee, or otherwise discriminate against an applicant or employee 9 with regard to hiring, compensation, or the terms, conditions or privi- 10 leges of employment based on the consumer credit history of the appli- 11 cant or employee. 12 (2) Paragraph one of this subdivision shall not apply to: 13 (i) an employer, or agent thereof, that is required by state or feder- 14 al law or by a self-regulatory organization as defined in section 15 3(a)(26) of the securities exchange act of 1934, as amended to use an 16 individual's consumer credit history for employment purposes; 17 (ii) persons applying for positions as or employed as peace officers 18 or police officers, as such terms are defined in subdivisions thirty- 19 three and thirty-four of section 1.20 of the criminal procedure law, 20 respectively, or in a position with a law enforcement or investigative 21 function in a law enforcement agency. 22 (3) Paragraph one of this subdivision shall not be construed to affect 23 the obligations of persons required by state or local law relating to 24 disclosures by public employees of conflicts of interest. 25 (4) Nothing in this subdivision shall preclude an employer from 26 requesting or receiving consumer credit history information pursuant to 27 a lawful subpoena, court order or specific law enforcement investi- 28 gation. 29 (e) (1) Except as otherwise provided in this subdivision, it shall be 30 an unlawful discriminatory practice for any state or municipal agency to 31 request or use for licensing or permitting purposes information 32 contained in the consumer credit history of an applicant, licensee or 33 permittee for licensing or permitting purposes. 34 (2) Paragraph one of this subdivision shall not apply to an agency 35 required by state or federal law to use an individual's consumer credit 36 history for licensing or permitting purposes. 37 (3) Paragraph one of this subdivision shall not be construed to affect 38 the ability of an agency to consider an applicant's, licensee's, regis- 39 trant's or permittee's failure to pay any tax, fine, penalty or fee for 40 which liability has been admitted by the person liable therefor, or for 41 which judgment has been entered by a court or administrative tribunal of 42 competent jurisdiction, or any tax for which a government agency has 43 issued a warrant, or a lien or levy on property. 44 (4) Nothing in this subdivision shall preclude a licensing agency from 45 requesting, receiving, or using consumer credit history information 46 obtained pursuant to a lawful subpoena, court order or specific law 47 enforcement investigation. 48 (f) This section does not annul, alter, affect or exempt any employer, 49 labor organization, employment agency or any agent thereof subject to 50 the provisions of this section from complying with any local law, ordi- 51 nance or regulation with respect to the use of consumer credit history 52 for employment purposes except to the extent that those laws are incon- 53 sistent with any provision of this section, and then only to the extent 54 of such inconsistency. For purposes of this subdivision, a local law, 55 ordinance or regulation is not inconsistent with this section if theA. 1161--A 3 1 protection such law or regulation affords an employee or job applicant 2 is greater than the protection provided by this section. 3 § 3. The division of human rights shall request information from state 4 and local agencies and non-governmental employers regarding the agen- 5 cies' and employers' use of the exemptions established in subdivision 6 (d) of section 380-b of the general business law for purposes of hiring 7 and employment. Within two years of the effective date of this act, the 8 division of human rights shall submit to the legislature a report 9 concerning the results of such request and any relevant feedback from 10 agencies and employers. 11 § 4. Paragraph 3 of subdivision (a) of section 380-b of the general 12 business law, as amended by chapter 797 of the laws of 1984, is amended 13 to read as follows: 14 (3) To a person whom it has reason to believe intends to use the 15 information (i) in connection with a credit transaction involving the 16 consumer on whom the information is to be furnished and involving the 17 extension of credit to, or review or collection of an account of, the 18 consumer, or (ii) [for employment purposes, or (iii)] in connection with 19 the underwriting of insurance involving the consumer, or [(iv)] (iii) in 20 connection with a determination of the consumer's eligibility for a 21 license or other benefit granted by a governmental instrumentality 22 required by law to consider an applicant's financial responsibility or 23 status, or [(v)] (iv) to a person in connection with a business trans- 24 action involving the consumer where the user has a legitimate business 25 need for such information, or [(vi)] (v) in connection with the rental 26 or lease of a residence. 27 § 5. This act shall take effect on the one hundred twentieth day after 28 it shall have become a law.
