Bill Text: NY S02884 | 2019-2020 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         2884--B
            Cal. No. 221
                               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
        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
    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.
                                                                   LBD01243-07-9
        S. 2884--B                          2
     1    §  2.  Subdivision (d) of section 380-b of the general business law is
     2  relettered subdivision (f) and two new  subdivisions  (d)  and  (e)  are
     3  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 regulations or by a self-regulatory organization as defined in
    15  section 3(a)(26) of the securities exchange act of 1934, as  amended  to
    16  use an individual's consumer credit history for employment purposes;
    17    (ii) persons applying for positions as or employed:
    18    (A)  as  peace officers or police officers, as those terms are defined
    19  in subdivisions thirty-three and thirty-four  of  section  1.20  of  the
    20  criminal  procedure  law,  respectively,  or  in  a  position with a law
    21  enforcement or investigative function in a law enforcement agency;
    22    (B) in a position in which an employee is required to be bonded  under
    23  local, state or federal law;
    24    (C) in a position in which an employee is required to possess security
    25  clearance under federal law or the law of any state;
    26    (D) in a non-clerical position having regular access to trade secrets,
    27  intelligence information or national security information;
    28    (E)  in  a  position:  (I)  having  access to third party, consumer or
    29  employer funds or assets valued at ten thousand dollars or more; or (II)
    30  that involves a  fiduciary  responsibility  to  the  employer  with  the
    31  authority  to  enter financial agreements or initiate, modify or approve
    32  payments, valued at ten thousand  dollars  or  more  on  behalf  of  the
    33  employer; or
    34    (F)  in  a  position  with  regular  duties that allow the employee to
    35  design, monitor, access, provision access  and/or  modify  (I)  systems,
    36  applications   or  databases  containing  confidential  employer  and/or
    37  customer data; or (II) digital security systems established  to  prevent
    38  the  unauthorized  use  of  the employer's or client's networks or data-
    39  bases.
    40    (3) Paragraph one of this subdivision shall not be construed to affect
    41  the obligations of persons required by state or local  law  relating  to
    42  disclosures by public employees of conflicts of interest.
    43    (4) As used in this subdivision:
    44    (i)  The  term  "intelligence  information"  means  records  and  data
    45  compiled for the purpose of criminal investigation or  counterterrorism,
    46  including  records  and  data  relating  to  the  order or security of a
    47  correctional facility, reports of  informants,  investigators  or  other
    48  persons,  or  from any type of surveillance associated with an identifi-
    49  able individual, or investigation or  analysis  of  potential  terrorist
    50  threats.
    51    (ii)  The  term  "national  security  information" means any knowledge
    52  relating to the national defense or  foreign  relations  of  the  United
    53  States,  regardless  of  its  physical  form or characteristics, that is
    54  owned by, produced by or for, or is under  the  control  of  the  United
    55  States government and is defined as such by the United States government
    56  and its agencies and departments.
        S. 2884--B                          3
     1    (iii)  The  term  "trade  secrets" means information that: (A) derives
     2  independent economic value, actual or potential, from not being general-
     3  ly known to, and not being readily  ascertainable  by  proper  means  by
     4  other  persons who can obtain economic value from its disclosure or use;
     5  (B)  is  the  subject  of  efforts that are reasonable under the circum-
     6  stances to maintain its secrecy; and (C) can reasonably be  said  to  be
     7  the end product of significant innovation.
     8    The  term "trade secrets" does not include general proprietary company
     9  information such as handbooks and policies. The term "regular access  to
    10  trade secrets" does not include access to or the use of client, customer
    11  or mailing lists.
    12    (5)  Nothing  in  this  subdivision  shall  preclude  an employer from
    13  requesting or receiving consumer credit history information pursuant  to
    14  a lawful subpoena, court order or law enforcement investigation.
    15    (e)  (1) Except as otherwise provided in this subdivision, it shall be
    16  an unlawful discriminatory practice for any state or municipal agency to
    17  request  or  use  for  licensing  or  permitting  purposes   information
    18  contained  in  the  consumer credit history of an applicant, licensee or
    19  permittee for licensing or permitting purposes.
    20    (2) Paragraph one of this subdivision shall not  apply  to  an  agency
    21  required  by  state or federal law or regulations to use an individual's
    22  consumer credit history for licensing or permitting purposes.
    23    (3) Paragraph one of this subdivision shall not be construed to affect
    24  the ability of an agency to consider an applicant's, licensee's,  regis-
    25  trant's  or permittee's failure to pay any tax, fine, penalty or fee for
    26  which liability has been admitted by the person liable therefor, or  for
    27  which judgment has been entered by a court or administrative tribunal of
    28  competent  jurisdiction,  or  any  tax for which a government agency has
    29  issued a warrant, or a lien or levy on property.
    30    (4) Nothing in this subdivision shall preclude a licensing agency from
    31  requesting, receiving, or  using  consumer  credit  history  information
    32  obtained  pursuant  to a lawful subpoena, court order or law enforcement
    33  investigation.
    34    § 3. The division of human rights shall request information from state
    35  and local agencies and non-governmental employers  regarding  the  agen-
    36  cies'  and  employers'  use of the exemptions established in subdivision
    37  (d) of section 380-b of the general business law for purposes of  hiring
    38  and  employment. Within two years of the effective date of this act, the
    39  division of human rights  shall  submit  to  the  legislature  a  report
    40  concerning  the  results  of such request and any relevant feedback from
    41  agencies and employers.
    42    § 4. This act shall take effect on the one hundred twentieth day after
    43  it shall have become a law.