Senate Bill S2631A

2021-2022 Legislative Session

Prohibits the disclosure or use of consumer credit history in hiring, employment and licensing determinations

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to consumer protection
Mar 17, 2021	print number 2631a
Mar 17, 2021	amend and recommit to consumer protection
Jan 22, 2021	referred to consumer protection

Bill Amendments

Original

A (Active)

co-Sponsors

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2021-S2631 - Details

See other versions of this Bill:: A1161 ,; A6388 ,
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§380-a & 380-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A7056
2015-2016: S1545, A2372
2017-2018: S5653, A5310
2019-2020: S2884, S3124, A2611
2023-2024: S1731, A779
2025-2026: S3072, A1316

2021-S2631 - Summary

Prohibits the use of consumer credit history in hiring, employment and licensing determinations.

2021-S2631 - Sponsor Memo

                                 
BILL NUMBER: S2631

SPONSOR: SANDERS
 
TITLE OF BILL:

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 employer,
labor organization, employment agency or agent thereof for purposes of
employment decisions

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit an employer or potential employer from using a
job applicant or employee's consumer credit report in his or her deci-
sion to hire, terminate, promote, demote, discipline, compensate, or in
setting the terms, conditions, or privileges of employment.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends section 380-a of the general business law to add a new
definition of consumer credit history.

Section 2: Amends 380-b of the general business law by relettering
subdivision (d) subdivision (g) and adding three new subdivisions (d),
(e), and (1) to state that it shall be an unlawful discriminatory prac-
tice for an employer, labor organization, employment 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 privileges of employment based
on the consumer credit history of the applicant or employee. Also
outlines exceptions for certain employers, employees. These provisions
do not preclude an employer from requesting or receiving consumer credit
history information pursuant to a lawful subpoena, court order or
specific law enforcement investigation.

It shall additionally 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.
This does not apply to an agency required by state or federal law to use
an individual's consumer credit history for licensing or permitting
purposes. These provisions should not be construed to affect the ability
of an agency to consider an applicant's, licensee's, registrant'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. Further, these
provisions shall preclude a licensing agency from requesting, receiving,
or using consumer credit history information obtained pursuant to a
lawful subpoena, court order or law enforcement investigation.

Lastly, this section allows for any employer, labor organization,
employment agency or agent thereof subject to the provisions of this
section from complying with any local law, ordinance, or regulation with
respect to the use of consumer credit history for the employment
purposes except to the extent that those laws are inconsistent with any
provision of this section, and then only to the extent of such incon-
sistency. For purposes of this subdivision, a local law, ordinance, or
regulation is not inconsistent with this section if the protection such
law or regulation affords an employee or job applicant is greater than
the protection provided by this section.

Section 3: Directs the division of human rights shall request informa-
tion from state and local agencies and nongovernmental employers regard-
ing the agencies' and employers' use of the exemptions established by
subdivision (d) of 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.

Section 4: Effective date. This act shall take effect on the one hundred
twentieth day after it shall have become a law.

 
JUSTIFICATION:

This bill would prohibit an employer or potential employer from using a
job applicant's or employee's consumer credit report in his or her deci-
sion to hire, terminate, promote, demote, discipline, compensate, or in
setting the terms, conditions, or privileges of employment.

There is little to no evidence that shows a correlation between credit
history and job performance. Nonetheless, in today's job market, the
majority of large/big employers are now using credit checks as part of
their hiring process and in how they treat their existing employees. In
addition to lacking any such meaningful correlation, the Federal Trade
Commission has released a study indicated that as many as one in four
consumers may have a "material error" in their credit reports. At a
public hearing on the accuracy and use of consumer credit reports, both
the credit reporting industry and numerous consumer advocates testified
that millions of Americans have errors in their credit reports that put
them in a lower credit risk tier, whether they are aware of any such
errors or not.

Many New Yorkers, through no fault of their own, have less than ideal
credit histories that may stem from issues completely unrelated to their
job performance or capabilities. These consumers are disadvantaged
because employers are using credit reports to determine if an applicant
or employee is worthy of a job or a promotion. This bill would put an
end to this practice.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: A.5310A- Ordered to Third Reading Calendar/S.5653B - Referred
to Consumer Protection

2015-16: A.2372 - Referred to Consumer Affairs and Protection/S.1545A
Referred to Consumer Protection

2013-14: A.7056- Passed Assembly/S.3868-B- Referred to Consumer
Protection

 
FISCAL IMPLICATIONS:

None to the State.
 
EFFECTIVE DATE:
This act shall take effect 120 days after it becomes law.

2021-S2631 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2631
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2021
                                ___________
 
 Introduced  by  Sens. SANDERS, BIAGGI, GOUNARDES, HOYLMAN, KRUEGER, MAY,
   RAMOS, RIVERA, THOMAS -- read twice  and  ordered  printed,  and  when
   printed to be committed to the Committee on Consumer Protection
 
 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.
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05213-01-1

 S. 2631                             2
 
 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
 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

 S. 2631                             3
 
 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. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

co-Sponsors

View additional co-sponsors

2021-S2631A (ACTIVE) - Details

See other versions of this Bill:: A1161 ,; A6388 ,
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§380-a & 380-b, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2013-2014: A7056
2015-2016: S1545, A2372
2017-2018: S5653, A5310
2019-2020: S2884, S3124, A2611
2023-2024: S1731, A779
2025-2026: S3072, A1316

2021-S2631A (ACTIVE) - Summary

Prohibits the use of consumer credit history in hiring, employment and licensing determinations.

2021-S2631A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2631A

SPONSOR: SANDERS
 
TITLE OF BILL:

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 employer,
labor organization, employment agency or agent thereof for purposes of
employment decisions

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit an employer or potential employer from using a
job applicant or employee's consumer credit report in his or her deci-
sion to hire, terminate, promote, demote, discipline, compensate, or in
setting the terms, conditions, or privileges of employment.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends section 380-a of the general business law to add a new
definition of consumer credit history.

Section 2: Amends 380-b of the general business law by relettering
subdivision (d) subdivision (g) and adding three new subdivisions (d),
(e), and (1) to state that it shall be an unlawful discriminatory prac-
tice for an employer, labor organization, employment 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 privileges of employment based
on the consumer credit history of the applicant or employee. Also
outlines exceptions for certain employers, employees. These provisions
do not preclude an employer from requesting or receiving consumer credit
history information pursuant to a lawful subpoena, court order or
specific law enforcement investigation.

It shall additionally 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.
This does not apply to an agency required by state or federal law to use
an individual's consumer credit history for licensing or permitting
purposes. These provisions should not be construed to affect the ability
of an agency to consider an applicant's, licensee's, registrant'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. Further, these
provisions shall preclude a licensing agency from requesting, receiving,
or using consumer credit history information obtained pursuant to a
lawful subpoena, court order or law enforcement investigation.

Lastly, this section allows for any employer, labor organization,
employment agency or agent thereof subject to the provisions of this
section from complying with any local law, ordinance, or regulation with
respect to the use of consumer credit history for the employment
purposes except to the extent that those laws are inconsistent with any
provision of this section, and then only to the extent of such incon-
sistency. For purposes of this subdivision, a local law, ordinance, or
regulation is not inconsistent with this section if the protection such
law or regulation affords an employee or job applicant is greater than
the protection provided by this section.

Section 3: Directs the division of human rights shall request informa-
tion from state and local agencies and nongovernmental employers regard-
ing the agencies' and employers' use of the exemptions established by
subdivision (d) of 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.

Section 4: Amends paragraph 3 of subdivision (a) of section 380-b of the
general business law by removing language that permits a consumer
reporting agency to furnish a consumer report for employment purposes.

Section 5: Effective date. This act shall take effect on the one hundred
twentieth day after it shall have become a law.

 
JUSTIFICATION:

This bill would prohibit an employer or potential employer from using a
job applicant's or employee's consumer credit report in his or her deci-
sion to hire, terminate, promote, demote, discipline, compensate, or in
setting the teems, conditions, or privileges of employment.

There is little to no evidence that shows a correlation between credit
history and job performance. Nonetheless, in today's job market, the
majority of large/big employers are now using credit checks as part of
their hiring process and in how they treat their existing employees. In
addition to lacking any such meaningful correlation, the Federal Trade
Commission has released a study indicated that as many as one in four
consumers may have a "material error" in their credit reports. At a
public hearing on the accuracy and use of consumer credit reports, both
the credit reporting industry and numerous consumer advocates testified
that millions of Americans have errors in their credit reports that put
them in a lower credit risk tier, whether they are aware of any such
errors or not.

Many New Yorkers, through no fault of their own, have less than ideal
credit histories that may stem from issues completely unrelated to their
job performance or capabilities. These consumers are disadvantaged
because employers are using credit reports to determine if an applicant
or employee is worthy of a job or a promotion. This bill would put an
end to this practice.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: A.2611E - Passed Assembly/S.2884-E - ADVANCED TO THIRD READING
2017-18: A.5310A- Ordered to Third Reading Calendar/S.5653B - Referred
to Consumer Protection
2015-16: A.2372 - Referred to Consumer Affairs and Protection/S.1545A
Referred to Consumer Protection
2013-14: A.7056- Passed Assembly/S.3868-B- Referred to Consumer
Protection

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect 120 days after it becomes law.

2021-S2631A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2631--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 22, 2021
                                ___________
 
 Introduced  by  Sens. SANDERS, BIAGGI, GOUNARDES, HOYLMAN, KRUEGER, MAY,
   RAMOS, RIVERA, 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 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.
   §  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05213-03-1

 S. 2631--A                          2
 
   (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
 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-

 S. 2631--A                          3
 
 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.

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Senate Bill S2631A

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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