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

                                   338

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M.  of  A.  SKARTADOS  --  read once and referred to the
  Committee on Consumer Affairs and Protection

AN ACT to amend the general business law, in  relation  to  limiting  an
  employer's  access  to  consumer  credit  reports  in  connection with
  employment applications

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

  Section  1.  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  2. Section 380-b of the general business law is amended by adding a
new subdivision (e) to read as follows:
  (E) NO PERSON SHALL REQUEST A CONSUMER CREDIT  REPORT  OR  A  CONSUMER
REPORT,  OTHER THAN AN INVESTIGATIVE CONSUMER REPORT, IN CONNECTION WITH
AN APPLICATION FOR EMPLOYMENT UNLESS THE POSITION FOR WHICH  THE  APPLI-
CANT IS APPLYING OR INTERVIEWING ENTAILS DIRECT ACCESS TO FUNDS OR NEGO-

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

                                                           LBD00600-01-5

A. 338                              2

TIABLE INSTRUMENTS OR DIRECTLY INVOLVES FINANCIAL OVERSIGHT OR RESPONSI-
BILITY, OR IS OTHERWISE REQUIRED BY LAW.
  S  3. 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 MAY NOT
DECLINE  TO  OFFER EMPLOYMENT ON THE GROUNDS THAT A PROSPECTIVE EMPLOYEE
REFUSES TO AUTHORIZE THE PROCUREMENT OR PREPARATION OF A CONSUMER CREDIT
REPORT OR CONSUMER 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 immediately.