A6672-2011 Actions

• Jan 4, 2012: referred to consumer affairs and protection
• Mar 24, 2011: referred to consumer affairs and protection

A6672-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         6672
 2011-2012 Regular Sessions
 I N  ASSEMBLY
 March 24, 2011
 
 Introduced  by  M.  of  A.  STEVENSON  --  read once and referred to the
 Committee 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
 WHICH EXPLICITLY STATES THE SPECIFIC PURPOSE, USE AND LIMITATION OF  USE
 OF SUCH REPORT AS IT PERTAINS TO THE EMPLOYMENT POSITION SOUGHT.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05262-01-1
 
       A. 6672                             2
 

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.

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