S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1161--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              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:
 
   Section  1.  Section  380-a  of the general business law is amended by
 adding a new subdivision (v) to read as follows:
   (V) THE TERM "CONSUMER CREDIT HISTORY" MEANS  AN  INDIVIDUAL'S  CREDIT
 WORTHINESS,  CREDIT  STANDING,  CREDIT  CAPACITY  OR PAYMENT HISTORY, AS
 INDICATED BY:
   (1) A CONSUMER CREDIT REPORT;
   (2) CREDIT SCORE; OR
   (3) INFORMATION AN  EMPLOYER  OBTAINS  DIRECTLY  FROM  THE  INDIVIDUAL
 REGARDING  (I) DETAILS ABOUT CREDIT ACCOUNTS, INCLUDING THE INDIVIDUAL'S
 NUMBER OF CREDIT ACCOUNTS, LATE OR MISSED PAYMENTS,  CHARGED-OFF  DEBTS,
 ITEMS  IN COLLECTIONS, CREDIT LIMIT OR PRIOR CREDIT REPORT INQUIRIES, OR
 (II) BANKRUPTCIES, JUDGMENTS OR LIENS.
   A CONSUMER CREDIT REPORT SHALL INCLUDE ANY WRITTEN OR  OTHER  COMMUNI-
 CATION OF ANY INFORMATION BY A CONSUMER REPORTING AGENCY THAT BEARS ON A
 CONSUMER'S  CREDITWORTHINESS, CREDIT STANDING, CREDIT CAPACITY OR CREDIT
 HISTORY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05213-02-1
              

 A. 1161--A                          2
 
   § 2. Subdivision (d) of section 380-b of the general business  law  is
 relettered  subdivision  (g) and three new subdivisions (d), (e) and (f)
 are added to read as follows:
   (D)  (1) EXCEPT AS PROVIDED IN THIS SUBDIVISION, IT SHALL BE AN UNLAW-
 FUL DISCRIMINATORY PRACTICE FOR AN EMPLOYER, LABOR ORGANIZATION, EMPLOY-
 MENT AGENCY OR ANY AGENT THEREOF TO REQUEST OR  TO  USE  FOR  EMPLOYMENT
 PURPOSES  THE  CONSUMER CREDIT HISTORY OF AN APPLICANT FOR EMPLOYMENT OR
 EMPLOYEE, OR OTHERWISE DISCRIMINATE AGAINST  AN  APPLICANT  OR  EMPLOYEE
 WITH REGARD TO HIRING, COMPENSATION,  OR THE TERMS, CONDITIONS OR PRIVI-
 LEGES  OF  EMPLOYMENT BASED ON THE CONSUMER CREDIT HISTORY OF THE APPLI-
 CANT OR EMPLOYEE.
   (2) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO:
   (I) AN EMPLOYER, OR AGENT THEREOF, THAT IS REQUIRED BY STATE OR FEDER-
 AL LAW OR BY  A  SELF-REGULATORY  ORGANIZATION  AS  DEFINED  IN  SECTION
 3(A)(26)  OF  THE  SECURITIES EXCHANGE ACT OF 1934, AS AMENDED TO USE AN
 INDIVIDUAL'S CONSUMER CREDIT HISTORY FOR EMPLOYMENT PURPOSES;
   (II) PERSONS APPLYING FOR POSITIONS AS OR EMPLOYED AS  PEACE  OFFICERS
 OR  POLICE  OFFICERS,  AS SUCH TERMS ARE DEFINED IN SUBDIVISIONS THIRTY-
 THREE AND THIRTY-FOUR OF SECTION 1.20 OF  THE  CRIMINAL  PROCEDURE  LAW,
 RESPECTIVELY,  OR  IN A POSITION WITH A LAW ENFORCEMENT OR INVESTIGATIVE
 FUNCTION IN A LAW ENFORCEMENT AGENCY.
   (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO AFFECT
 THE OBLIGATIONS OF PERSONS REQUIRED BY STATE OR LOCAL  LAW  RELATING  TO
 DISCLOSURES BY PUBLIC EMPLOYEES OF CONFLICTS OF INTEREST.
   (4)  NOTHING  IN  THIS  SUBDIVISION  SHALL  PRECLUDE  AN EMPLOYER FROM
 REQUESTING OR RECEIVING CONSUMER CREDIT HISTORY INFORMATION PURSUANT  TO
 A  LAWFUL  SUBPOENA,  COURT  ORDER  OR SPECIFIC LAW ENFORCEMENT INVESTI-
 GATION.
   (E) (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, IT SHALL  BE
 AN UNLAWFUL DISCRIMINATORY PRACTICE FOR ANY STATE OR MUNICIPAL AGENCY TO
 REQUEST   OR  USE  FOR  LICENSING  OR  PERMITTING  PURPOSES  INFORMATION
 CONTAINED IN THE CONSUMER CREDIT HISTORY OF AN  APPLICANT,  LICENSEE  OR
 PERMITTEE FOR LICENSING OR PERMITTING PURPOSES.
   (2)  PARAGRAPH  ONE  OF  THIS SUBDIVISION SHALL NOT APPLY TO AN AGENCY
 REQUIRED BY STATE OR FEDERAL LAW TO USE AN INDIVIDUAL'S CONSUMER  CREDIT
 HISTORY FOR LICENSING OR PERMITTING PURPOSES.
   (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO AFFECT
 THE  ABILITY OF AN AGENCY TO CONSIDER AN APPLICANT'S, LICENSEE'S, REGIS-
 TRANT'S OR PERMITTEE'S FAILURE TO PAY ANY TAX, FINE, PENALTY OR FEE  FOR
 WHICH  LIABILITY HAS BEEN ADMITTED BY THE PERSON LIABLE THEREFOR, OR FOR
 WHICH JUDGMENT HAS BEEN ENTERED BY A COURT OR ADMINISTRATIVE TRIBUNAL OF
 COMPETENT JURISDICTION, OR ANY TAX FOR WHICH  A  GOVERNMENT  AGENCY  HAS
 ISSUED A WARRANT, OR A LIEN OR LEVY ON PROPERTY.
   (4) NOTHING IN THIS SUBDIVISION SHALL PRECLUDE A LICENSING AGENCY FROM
 REQUESTING,  RECEIVING,  OR  USING  CONSUMER  CREDIT HISTORY INFORMATION
 OBTAINED PURSUANT TO A LAWFUL SUBPOENA,  COURT  ORDER  OR  SPECIFIC  LAW
 ENFORCEMENT INVESTIGATION.
   (F) THIS SECTION DOES NOT ANNUL, ALTER, AFFECT OR EXEMPT ANY EMPLOYER,
 LABOR  ORGANIZATION,  EMPLOYMENT  AGENCY OR ANY AGENT THEREOF SUBJECT TO
 THE PROVISIONS OF THIS SECTION FROM COMPLYING WITH ANY LOCAL LAW,  ORDI-
 NANCE  OR  REGULATION WITH RESPECT TO THE USE OF CONSUMER CREDIT HISTORY
 FOR EMPLOYMENT PURPOSES EXCEPT TO THE EXTENT THAT THOSE LAWS ARE  INCON-
 SISTENT  WITH ANY PROVISION OF THIS SECTION, AND THEN ONLY TO THE EXTENT
 OF SUCH INCONSISTENCY. FOR PURPOSES OF THIS SUBDIVISION,  A  LOCAL  LAW,
 ORDINANCE  OR  REGULATION  IS  NOT INCONSISTENT WITH THIS SECTION IF THE

 A. 1161--A                          3
 
 PROTECTION SUCH LAW OR REGULATION AFFORDS AN EMPLOYEE OR  JOB  APPLICANT
 IS GREATER THAN THE PROTECTION PROVIDED BY THIS SECTION.
   § 3. The division of human rights shall request information from state
 and  local  agencies  and non-governmental employers regarding the agen-
 cies' and employers' use of the exemptions  established  in  subdivision
 (d)  of section 380-b of the general business law for purposes of hiring
 and employment. Within two years of the effective date of this act,  the
 division  of  human  rights  shall  submit  to  the legislature a report
 concerning the results of such request and any  relevant  feedback  from
 agencies and employers.
   §  4.  Paragraph  3 of subdivision (a) of section 380-b of the general
 business law, as amended by chapter 797 of the laws of 1984, is  amended
 to read as follows:
   (3)  To  a  person  whom  it  has reason to believe intends to use the
 information (i) in connection with a credit  transaction  involving  the
 consumer  on  whom  the information is to be furnished and involving the
 extension of credit to, or review or collection of an  account  of,  the
 consumer, or (ii) [for employment purposes, or (iii)] in connection with
 the underwriting of insurance involving the consumer, or [(iv)] (III) in
 connection  with  a  determination  of  the consumer's eligibility for a
 license or other  benefit  granted  by  a  governmental  instrumentality
 required  by  law to consider an applicant's financial responsibility or
 status, or [(v)] (IV) to a person in connection with a  business  trans-
 action  involving  the consumer where the user has a legitimate business
 need for such information, or [(vi)] (V) in connection with  the  rental
 or lease of a residence.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.