S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2148

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  STEVENSON  -- Multi-Sponsored by -- M. of A.
  AUBRY, BARRON, BRENNAN, CAMARA, COLTON, COOK, GABRYSZAK, GIBSON, HOOP-
  ER, MAISEL, ROBINSON, WEPRIN -- read once and referred to the  Commit-
  tee on Consumer Affairs and Protection

AN  ACT  to  amend  the  executive  law and the general business law, in
  relation to prohibiting discrimination in employment  decisions  based
  on consumer credit reports

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 296 of the executive law is amended by adding a new
subdivision 19-a to read as follows:
  19-A. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION,  IT
SHALL  BE  AN  UNLAWFUL  DISCRIMINATORY  PRACTICE OF ANY EMPLOYER, LABOR
ORGANIZATION, EMPLOYMENT AGENCY OR LICENSING AGENCY, HEREINAFTER COLLEC-
TIVELY REFERRED TO IN THIS SECTION AS  "EMPLOYER",  TO  USE  A  CONSUMER
CREDIT  REPORT,  AS  DEFINED IN SUBDIVISION (1) OF SECTION THREE HUNDRED
EIGHTY-A OF THE GENERAL BUSINESS LAW, AS A CRITERION IN EMPLOYMENT DECI-
SIONS RELATED TO HIRING, TERMINATION, PROMOTION OR DISCIPLINE.
  (B) AN EMPLOYER MAY REQUEST AND USE A CONSUMER CREDIT REPORT  AS  PART
OF ITS DECISION-MAKING PROCESS TO HIRE, TERMINATE, PROMOTE OR DISCIPLINE
AN  EMPLOYEE  OR  PROSPECTIVE EMPLOYEE WHEN THE INFORMATION CONTAINED IN
SUCH REPORT IS: (I) SUBSTANTIALLY JOB-RELATED TO THE POSITION, WHICH MAY
INCLUDE, BUT NOT BE LIMITED TO ACCESS TO MONEY, OTHER ASSETS  OR  CONFI-
DENTIAL  INFORMATION; OR (II) USED WITH REGARD TO A MANAGERIAL POSITION,
A POSITION IN THE OFFICE OF COURT ADMINISTRATION, A POSITION WITH A  LAW
ENFORCEMENT  AGENCY OR A POSITION FOR WHICH THE INFORMATION CONTAINED IN
SUCH REPORT IS REQUIRED TO BE DISCLOSED OR OBTAINED BY THE EMPLOYER.
  (C) BEFORE AN EMPLOYER MAY REQUEST OR USE  A  CONSUMER  CREDIT  REPORT
PURSUANT  TO PARAGRAPH (B) OF THIS SUBDIVISION, THE EMPLOYEE OR PROSPEC-
TIVE EMPLOYEE SHALL BE GIVEN AND SIGN AN AUTHORIZATION OF  CONSENT  FORM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02794-01-3

A. 2148                             2

WHICH  EXPLICITLY STATES THE SPECIFIC PURPOSE, USE AND LIMITATION OF USE
OF SUCH REPORT AS IT PERTAINS TO THE EMPLOYMENT POSITION SOUGHT.
  S  2.  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  IN  ACCORDANCE  WITH THE
PROVISIONS OF SUBDIVISION (E) 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.
  S  3. Section 380-b of the general business law is amended by adding a
new subdivision (e) to read as follows:
  (E) NO EMPLOYER, AS REFERRED TO IN SUBDIVISION NINETEEN-A  OF  SECTION
TWO  HUNDRED  NINETY-SIX  OF  THE  EXECUTIVE LAW, SHALL REQUEST OR USE A
CONSUMER CREDIT REPORT IN CONNECTION WITH ITS DECISION-MAKING PROCESS TO
HIRE, TERMINATE,  PROMOTE  OR  DISCIPLINE  AN  EMPLOYEE  OR  PROSPECTIVE
EMPLOYEE UNLESS IT IS UTILIZED PURSUANT TO SUCH SUBDIVISION.
  S  4. Subdivision (d) of section 380-c of the general business law, as
added by chapter 867 of the laws of 1977, is amended to read as follows:
  (d) If a person applying for credit, insurance, or employment  refuses
to authorize the procurement or preparation of an investigative consumer
report,  the  prospective  creditor,  insurer or employer may decline to
grant credit, insurance or employment on the grounds that the  applicant
refused  to  execute such authorization; PROVIDED THAT AN EMPLOYER SHALL
NOT DETERMINE TO HIRE, TERMINATE, PROMOTE OR DISCIPLINE AN  EMPLOYEE  OR
PROSPECTIVE  EMPLOYEE  BASED ON THE GROUNDS THAT AN EMPLOYEE OR PROSPEC-
TIVE EMPLOYEE REFUSES TO AUTHORIZE THE PROCUREMENT OR PREPARATION  OF  A
CONSUMER CREDIT REPORT TO WHICH THE EMPLOYER IS NOT ENTITLED PURSUANT TO
SUBDIVISION (E) OF SECTION THREE HUNDRED EIGHTY-B OF THIS ARTICLE.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.