S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2645
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2017
                                ___________
 
 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.
   §  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.
                                                            LBD01529-01-7
              

 A. 2645                             2
 
 TIABLE INSTRUMENTS OR DIRECTLY INVOLVES FINANCIAL OVERSIGHT OR RESPONSI-
 BILITY, OR IS OTHERWISE REQUIRED BY LAW.
   §  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.
   § 4. This act shall take effect immediately.