Legislation
SECTION 380-B
Permissible dissemination of reports
General Business (GBS) CHAPTER 20, ARTICLE 25
§ 380-b. Permissible dissemination of reports. (a) A consumer
reporting agency may furnish a consumer report under the following
circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue
such an order, or
(2) In accordance with the written instructions of the consumer to
whom it relates, or
* (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) 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) to a person in connection with a business transaction
involving the consumer where the user has a legitimate business need for
such information, or (vi) in connection with the rental or lease of a
residence.
* NB Effective until April 18, 2026
* (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, except that a consumer report
may be furnished for such purposes only if such report excludes
information that bears on a consumer's credit worthiness, credit
standing, credit capacity or credit history and is based on the
consumer's financial transactions, except that such information is
permitted to be disseminated to employers or persons set forth in
paragraph two of subdivision (d) of this section, or (iii) in connection
with the underwriting of insurance involving the consumer, or (iv) 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) to a person in connection with a business transaction
involving the consumer where the user has a legitimate business need for
such information, or (vi) in connection with the rental or lease of a
residence.
* NB Effective April 18, 2026
(b) No person shall request a consumer report, other than an
investigative consumer report, in connection with an application made
after the effective date of this article, for credit, employment,
insurance, or rental or lease of residences, unless the applicant is
first informed in writing or in the same manner in which the application
is made that (i) a consumer report may be requested in connection with
such application, and (ii) the applicant upon request will be informed
whether or not a consumer report was requested, and if such report was
requested, informed of the name and address of the consumer reporting
agency that furnished the report.
(c) Where the notice provided pursuant to subdivision (b) of this
section further indicates that subsequent consumer reports, other than
investigative consumer reports, may be requested or utilized in
connection with an update, renewal, or extension of the credit,
employment, insurance, or rental or lease of residences for which
application was made, no additional notice to the consumer shall be
required at the time such subsequent report is requested.
* (d) The notice requirements of this section shall not be applicable
to the update, renewal, or extension of credit, employment, insurance,
or rental or lease of residences for which initial application was made
prior to the effective date of this article.
* NB Effective until April 18, 2026
* (d) (1) Except as provided in this subdivision, it shall be an
unlawful discriminatory practice 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.
(2) Paragraph one of this subdivision shall not apply to:
(i) an employer, or agent thereof, that is required by state or
federal 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;
(iii) persons in a position that is subject to background
investigation by a state agency, provided, however, that the appointing
agency may not use consumer credit history information for employment
purposes unless the position is an appointed position in which a high
degree of public trust, as defined by the commission in rules, has been
reposed.
(iv) persons in a position in which an employee is required to be
bonded under state or federal law;
(v) persons in a position in which an employee is required to possess
security clearance under federal law or the law of any state;
(vi) persons in a non-clerical position having regular access to trade
secrets, intelligence information or national security information;
(vii) persons in a position: (A) having signatory authority over third
party funds or assets valued at ten thousand dollars or more; or (B)
that involves a fiduciary responsibility to the employer with the
authority to enter financial agreements valued at ten thousand dollars
or more on behalf of the employer; or
(viii) persons in a position with regular duties that allow the
employee to modify digital security systems established to prevent the
unauthorized use of the employer's or client's networks or databases.
(3) As used in this subdivision the following terms shall have the
following meanings:
(i) "intelligence information" means records and data compiled for the
purpose of criminal investigation or counterterrorism, including records
and data relating to the order or security of a correctional facility,
reports of informants, investigators or other persons, or from any type
of surveillance associated with an identifiable individual, or
investigation or analysis of potential terrorist threats;
(ii) "national security information" means any knowledge relating to
the national defense or foreign relations of the United States,
regardless of its physical form or characteristics, that is owned by,
produced by or for, or is under the control of the United States
government and is defined as such by the United States government and
its agencies and departments; and
(iii) "trade secrets" means information that: (A) derives independent
economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by other persons who
can obtain economic value from its disclosure or use; (B) is the subject
of efforts that are reasonable under the circumstances to maintain its
secrecy; and (C) can reasonably be said to be the end product of
significant innovation. The term "trade secrets" does not include
general proprietary company information such as handbooks and policies.
The term "regular access to trade secrets" does not include access to or
the use of client, customer or mailing lists.
(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 law enforcement investigation.
(5) 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.
* NB Effective April 18, 2026
* (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,
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.
(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.
* NB Effective April 18, 2026
* (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, ordinance or regulation with respect to the use of consumer credit
history for 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 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.
* NB Effective April 18, 2026
* (g) The notice requirements of this section shall not be applicable
to the update, renewal, or extension of credit, employment, insurance,
or rental or lease of residences for which initial application was made
prior to the effective date of this article.
* NB Effective April 18, 2026
reporting agency may furnish a consumer report under the following
circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue
such an order, or
(2) In accordance with the written instructions of the consumer to
whom it relates, or
* (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) 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) to a person in connection with a business transaction
involving the consumer where the user has a legitimate business need for
such information, or (vi) in connection with the rental or lease of a
residence.
* NB Effective until April 18, 2026
* (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, except that a consumer report
may be furnished for such purposes only if such report excludes
information that bears on a consumer's credit worthiness, credit
standing, credit capacity or credit history and is based on the
consumer's financial transactions, except that such information is
permitted to be disseminated to employers or persons set forth in
paragraph two of subdivision (d) of this section, or (iii) in connection
with the underwriting of insurance involving the consumer, or (iv) 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) to a person in connection with a business transaction
involving the consumer where the user has a legitimate business need for
such information, or (vi) in connection with the rental or lease of a
residence.
* NB Effective April 18, 2026
(b) No person shall request a consumer report, other than an
investigative consumer report, in connection with an application made
after the effective date of this article, for credit, employment,
insurance, or rental or lease of residences, unless the applicant is
first informed in writing or in the same manner in which the application
is made that (i) a consumer report may be requested in connection with
such application, and (ii) the applicant upon request will be informed
whether or not a consumer report was requested, and if such report was
requested, informed of the name and address of the consumer reporting
agency that furnished the report.
(c) Where the notice provided pursuant to subdivision (b) of this
section further indicates that subsequent consumer reports, other than
investigative consumer reports, may be requested or utilized in
connection with an update, renewal, or extension of the credit,
employment, insurance, or rental or lease of residences for which
application was made, no additional notice to the consumer shall be
required at the time such subsequent report is requested.
* (d) The notice requirements of this section shall not be applicable
to the update, renewal, or extension of credit, employment, insurance,
or rental or lease of residences for which initial application was made
prior to the effective date of this article.
* NB Effective until April 18, 2026
* (d) (1) Except as provided in this subdivision, it shall be an
unlawful discriminatory practice 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.
(2) Paragraph one of this subdivision shall not apply to:
(i) an employer, or agent thereof, that is required by state or
federal 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;
(iii) persons in a position that is subject to background
investigation by a state agency, provided, however, that the appointing
agency may not use consumer credit history information for employment
purposes unless the position is an appointed position in which a high
degree of public trust, as defined by the commission in rules, has been
reposed.
(iv) persons in a position in which an employee is required to be
bonded under state or federal law;
(v) persons in a position in which an employee is required to possess
security clearance under federal law or the law of any state;
(vi) persons in a non-clerical position having regular access to trade
secrets, intelligence information or national security information;
(vii) persons in a position: (A) having signatory authority over third
party funds or assets valued at ten thousand dollars or more; or (B)
that involves a fiduciary responsibility to the employer with the
authority to enter financial agreements valued at ten thousand dollars
or more on behalf of the employer; or
(viii) persons in a position with regular duties that allow the
employee to modify digital security systems established to prevent the
unauthorized use of the employer's or client's networks or databases.
(3) As used in this subdivision the following terms shall have the
following meanings:
(i) "intelligence information" means records and data compiled for the
purpose of criminal investigation or counterterrorism, including records
and data relating to the order or security of a correctional facility,
reports of informants, investigators or other persons, or from any type
of surveillance associated with an identifiable individual, or
investigation or analysis of potential terrorist threats;
(ii) "national security information" means any knowledge relating to
the national defense or foreign relations of the United States,
regardless of its physical form or characteristics, that is owned by,
produced by or for, or is under the control of the United States
government and is defined as such by the United States government and
its agencies and departments; and
(iii) "trade secrets" means information that: (A) derives independent
economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by other persons who
can obtain economic value from its disclosure or use; (B) is the subject
of efforts that are reasonable under the circumstances to maintain its
secrecy; and (C) can reasonably be said to be the end product of
significant innovation. The term "trade secrets" does not include
general proprietary company information such as handbooks and policies.
The term "regular access to trade secrets" does not include access to or
the use of client, customer or mailing lists.
(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 law enforcement investigation.
(5) 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.
* NB Effective April 18, 2026
* (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,
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.
(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.
* NB Effective April 18, 2026
* (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, ordinance or regulation with respect to the use of consumer credit
history for 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 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.
* NB Effective April 18, 2026
* (g) The notice requirements of this section shall not be applicable
to the update, renewal, or extension of credit, employment, insurance,
or rental or lease of residences for which initial application was made
prior to the effective date of this article.
* NB Effective April 18, 2026