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 6-0)

Status: (Introduced) 2019-06-20 - COMMITTED TO RULES [S02884 Detail]

Download: New_York-2019-S02884-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         2884--D
            Cal. No. 221

                               2019-2020 Regular Sessions

                    IN SENATE

                                    January 30, 2019
                                       ___________

        Introduced  by Sens. SANDERS, CARLUCCI, GOUNARDES, 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

        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.
                                                                   LBD01243-15-9

        S. 2884--D                          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 (g) and three new subdivisions (d), (e)  and  (f)
     5  are 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 by  a  self-regulatory  organization  as  defined  in  section
    17  3(a)(26)  of  the  securities exchange act of 1934, as amended to use an
    18  individual's consumer credit history for employment purposes;
    19    (ii) persons applying for positions as or employed as  peace  officers
    20  or  police  officers,  as such terms are defined in subdivisions thirty-
    21  three and thirty-four of section 1.20 of  the  criminal  procedure  law,
    22  respectively,  or  in a position with a law enforcement or investigative
    23  function in a law enforcement agency.
    24    (3) Paragraph one of this subdivision shall not be construed to affect
    25  the obligations of persons required by state or local  law  relating  to
    26  disclosures by public employees of conflicts of interest.
    27    (4)  Nothing  in  this  subdivision  shall  preclude  an employer from
    28  requesting or receiving consumer credit history information pursuant  to
    29  a  lawful  subpoena,  court  order  or specific law enforcement investi-
    30  gation.
    31    (e) (1) Except as otherwise provided in this subdivision, it shall  be
    32  an unlawful discriminatory practice for any state or municipal agency to
    33  request   or  use  for  licensing  or  permitting  purposes  information
    34  contained in the consumer credit history of an  applicant,  licensee  or
    35  permittee for licensing or permitting purposes.
    36    (2)  Paragraph  one  of  this subdivision shall not apply to an agency
    37  required by state or federal law to use an individual's consumer  credit
    38  history for licensing or permitting purposes.
    39    (3) Paragraph one of this subdivision shall not be construed to affect
    40  the  ability of an agency to consider an applicant's, licensee's, regis-
    41  trant's or permittee's failure to pay any tax, fine, penalty or fee  for
    42  which  liability has been admitted by the person liable therefor, or for
    43  which judgment has been entered by a court or administrative tribunal of
    44  competent jurisdiction, or any tax for which  a  government  agency  has
    45  issued a warrant, or a lien or levy on property.
    46    (4) Nothing in this subdivision shall preclude a licensing agency from
    47  requesting,  receiving,  or  using  consumer  credit history information
    48  obtained pursuant to a lawful subpoena,  court  order  or  specific  law
    49  enforcement investigation.
    50    (f) This section does not annul, alter, affect or exempt any employer,
    51  labor  organization,  employment  agency or any agent thereof subject to
    52  the provisions of this section from complying with any local law,  ordi-
    53  nance  or  regulation with respect to the use of consumer credit history
    54  for employment purposes except to the extent that those laws are  incon-
    55  sistent  with any provision of this section, and then only to the extent
    56  of such inconsistency. For purposes of this subdivision,  a  local  law,

        S. 2884--D                          3

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