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 39-0)

Status: (Introduced) 2019-06-17 - ordered to third reading rules cal.335 [A02611 Detail]

Download: New_York-2019-A02611-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         2611--D

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 24, 2019
                                       ___________

        Introduced by M. of A. DINOWITZ, L. ROSENTHAL, CRESPO, BUCHWALD, WEPRIN,
          M. G. MILLER,  RODRIGUEZ,  OTIS,  ABINANTI, SEAWRIGHT, SOLAGES, REYES,
          TAYLOR, SAYEGH, GOTTFRIED, EPSTEIN,  D'URSO,  STIRPE,  ARROYO,  BLAKE,
          HYNDMAN,  DE LA ROSA,  STECK,  COOK,  GLICK,  CRUZ,  ZEBROWSKI, ORTIZ,
          WALLACE, FALL, FRONTUS, FERNANDEZ, RAYNOR -- 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  --  reported  and  referred  to  the  Committee on Codes --
          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,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01243-14-9

        A. 2611--D                          2

     1  items in collections, credit limit or prior credit report inquiries,  or
     2  (ii) bankruptcies, judgments or liens.
     3    A  consumer  credit report shall include any written or other communi-
     4  cation of any information by a consumer reporting agency that bears on a
     5  consumer's creditworthiness, credit standing, credit capacity or  credit
     6  history.
     7    §  2.  Subdivision (d) of section 380-b of the general business law is
     8  relettered subdivision (g) and three new subdivisions (d), (e)  and  (f)
     9  are added to read as follows:
    10    (d)  (1) Except as provided in this subdivision, it shall be an unlaw-
    11  ful discriminatory practice for an employer, labor organization, employ-
    12  ment agency or any agent thereof to request or  to  use  for  employment
    13  purposes  the  consumer credit history of an applicant for employment or
    14  employee, or otherwise discriminate against  an  applicant  or  employee
    15  with regard to hiring, compensation,  or the terms, conditions or privi-
    16  leges  of  employment based on the consumer credit history of the appli-
    17  cant or employee.
    18    (2) Paragraph one of this subdivision shall not apply to:
    19    (i) an employer, or agent thereof, that is required by state or feder-
    20  al law or by  a  self-regulatory  organization  as  defined  in  section
    21  3(a)(26)  of  the  securities exchange act of 1934, as amended to use an
    22  individual's consumer credit history for employment purposes;
    23    (ii) persons applying for positions as or employed as  peace  officers
    24  or  police  officers,  as such terms are defined in subdivisions thirty-
    25  three and thirty-four of section 1.20 of  the  criminal  procedure  law,
    26  respectively,  or  in a position with a law enforcement or investigative
    27  function in a law enforcement agency.
    28    (3) Paragraph one of this subdivision shall not be construed to affect
    29  the obligations of persons required by state or local  law  relating  to
    30  disclosures by public employees of conflicts of interest.
    31    (4)  Nothing  in  this  subdivision  shall  preclude  an employer from
    32  requesting or receiving consumer credit history information pursuant  to
    33  a  lawful  subpoena,  court  order  or specific law enforcement investi-
    34  gation.
    35    (e) (1) Except as otherwise provided in this subdivision, it shall  be
    36  an unlawful discriminatory practice for any state or municipal agency to
    37  request   or  use  for  licensing  or  permitting  purposes  information
    38  contained in the consumer credit history of an  applicant,  licensee  or
    39  permittee for licensing or permitting purposes.
    40    (2)  Paragraph  one  of  this subdivision shall not apply to an agency
    41  required by state or federal law to use an individual's consumer  credit
    42  history for licensing or permitting purposes.
    43    (3) Paragraph one of this subdivision shall not be construed to affect
    44  the  ability of an agency to consider an applicant's, licensee's, regis-
    45  trant's or permittee's failure to pay any tax, fine, penalty or fee  for
    46  which  liability has been admitted by the person liable therefor, or for
    47  which judgment has been entered by a court or administrative tribunal of
    48  competent jurisdiction, or any tax for which  a  government  agency  has
    49  issued a warrant, or a lien or levy on property.
    50    (4) Nothing in this subdivision shall preclude a licensing agency from
    51  requesting,  receiving,  or  using  consumer  credit history information
    52  obtained pursuant to a lawful subpoena,  court  order  or  specific  law
    53  enforcement investigation.
    54    (f) This section does not annul, alter, affect or exempt any employer,
    55  labor  organization,  employment  agency or any agent thereof subject to
    56  the provisions of this section from complying with any local law,  ordi-

        A. 2611--D                          3

     1  nance  or  regulation with respect to the use of consumer credit history
     2  for employment purposes except to the extent that those laws are  incon-
     3  sistent  with any provision of this section, and then only to the extent
     4  of  such  inconsistency.  For purposes of this subdivision, a local law,
     5  ordinance or regulation is not inconsistent with  this  section  if  the
     6  protection  such  law or regulation affords an employee or job applicant
     7  is greater than the protection provided by this section.
     8    § 3. The division of human rights shall request information from state
     9  and local agencies and non-governmental employers  regarding  the  agen-
    10  cies'  and  employers'  use of the exemptions established in subdivision
    11  (d) of section 380-b of the general business law for purposes of  hiring
    12  and  employment. Within two years of the effective date of this act, the
    13  division of human rights  shall  submit  to  the  legislature  a  report
    14  concerning  the  results  of such request and any relevant feedback from
    15  agencies and employers.
    16    § 4. This act shall take effect on the one hundred twentieth day after
    17  it shall have become a law.
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