S02884 Summary:

Amd 380-a & 380-b, Gen Bus L
Prohibits the use of consumer credit history in hiring, employment and licensing determinations.
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S02884 Actions:

02/08/2019PRINT NUMBER 2884A
03/05/20191ST REPORT CAL.221
03/06/20192ND REPORT CAL.
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S02884 Committee Votes:

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S02884 Floor Votes:

There are no votes for this bill in this legislative session.
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S02884 Text:

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 30, 2019
        Introduced by Sens. SANDERS, CARLUCCI -- read twice and ordered printed,
          and  when  printed  to  be  committed  to  the  Committee  on Consumer
          Protection -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee
        AN ACT to amend the general business law, in relation to prohibiting the
          disclosure or use of a person's consumer credit history to an  employ-
          er,  labor  organization,  employment  agency  or  agent  thereof  for
          purposes of employment decisions
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  380-a  of the general business law is amended by
     2  adding a new subdivision (u) to read as follows:
     3    (u) The term "consumer credit history" means  an  individual's  credit
     4  worthiness,  credit  standing,  credit  capacity  or payment history, as
     5  indicated by:
     6    (1) a consumer credit report;
     7    (2) credit score; or
     8    (3) information an  employer  obtains  directly  from  the  individual
     9  regarding  (i) details about credit accounts, including the individual's
    10  number of credit accounts, late or missed payments,  charged-off  debts,
    11  items  in collections, credit limit or prior credit report inquiries, or
    12  (ii) bankruptcies, judgments or liens.
    13    A consumer credit report shall include any written or  other  communi-
    14  cation of any information by a consumer reporting agency that bears on a
    15  consumer's  creditworthiness, credit standing, credit capacity or credit
    16  history.
    17    § 2. Subdivision (d) of section 380-b of the general business  law  is
    18  relettered  subdivision  (f)  and  two  new subdivisions (d) and (e) are
    19  added to read as follows:
    20    (d) (1) Except as provided in this subdivision, it shall be an  unlaw-
    21  ful discriminatory practice for an employer, labor organization, employ-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 2884--A                          2
     1  ment  agency  or any agent thereof to request or to use, and a violation
     2  of this article for any person to disclose, for employment purposes  the
     3  consumer  credit  history of an applicant for employment or employee, or
     4  otherwise  discriminate  against an applicant or employee with regard to
     5  hiring, compensation,  or the terms, conditions or privileges of employ-
     6  ment based on the consumer credit history of the applicant or employee.
     7    (2) Paragraph one of this subdivision shall not apply to:
     8    (i) an employer, or agent thereof, that is required by state or feder-
     9  al law or regulations or by a self-regulatory organization as defined in
    10  section 3(a)(26) of the securities exchange act of 1934, as  amended  to
    11  use an individual's consumer credit history for employment purposes;
    12    (ii) persons applying for positions as or employed:
    13    (A)  as  peace officers or police officers, as those terms are defined
    14  in subdivisions thirty-three and thirty-four  of  section  1.20  of  the
    15  criminal  procedure  law,  respectively,  or  in  a  position with a law
    16  enforcement or investigative function in a law enforcement agency;
    17    (B) in a position in which an employee is required to be bonded  under
    18  local, state or federal law;
    19    (C) in a position in which an employee is required to possess security
    20  clearance under federal law or the law of any state;
    21    (D) in a non-clerical position having regular access to trade secrets,
    22  intelligence information or national security information;
    23    (E)  in  a  position:  (I)  having  access to third party, consumer or
    24  employer funds or assets valued at ten thousand dollars or more; or (II)
    25  that involves a  fiduciary  responsibility  to  the  employer  with  the
    26  authority  to  enter financial agreements or initiate, modify or approve
    27  payments, valued at ten thousand  dollars  or  more  on  behalf  of  the
    28  employer; or
    29    (F)  in  a  position  with  regular  duties that allow the employee to
    30  design, monitor, access, provision access  and/or  modify  (I)  systems,
    31  applications   or  databases  containing  confidential  employer  and/or
    32  customer data; or (II) digital security systems established  to  prevent
    33  the  unauthorized  use  of  the employer's or client's networks or data-
    34  bases.
    35    (3) Paragraph one of this subdivision shall not be construed to affect
    36  the obligations of persons required by state or local  law  relating  to
    37  disclosures by public employees of conflicts of interest.
    38    (4) As used in this subdivision:
    39    (i)  The  term  "intelligence  information"  means  records  and  data
    40  compiled for the purpose of criminal investigation or  counterterrorism,
    41  including  records  and  data  relating  to  the  order or security of a
    42  correctional facility, reports of  informants,  investigators  or  other
    43  persons,  or  from any type of surveillance associated with an identifi-
    44  able individual, or investigation or  analysis  of  potential  terrorist
    45  threats.
    46    (ii)  The  term  "national  security  information" means any knowledge
    47  relating to the national defense or  foreign  relations  of  the  United
    48  States,  regardless  of  its  physical  form or characteristics, that is
    49  owned by, produced by or for, or is under  the  control  of  the  United
    50  States government and is defined as such by the United States government
    51  and its agencies and departments.
    52    (iii)  The  term  "trade  secrets" means information that: (A) derives
    53  independent economic value, actual or potential, from not being general-
    54  ly known to, and not being readily  ascertainable  by  proper  means  by
    55  other  persons who can obtain economic value from its disclosure or use;
    56  (B) is the subject of efforts that  are  reasonable  under  the  circum-

        S. 2884--A                          3
     1  stances  to  maintain  its secrecy; and (C) can reasonably be said to be
     2  the end product of significant innovation.
     3    The  term "trade secrets" does not include general proprietary company
     4  information such as handbooks and policies. The term "regular access  to
     5  trade secrets" does not include access to or the use of client, customer
     6  or mailing lists.
     7    (5)  Nothing  in  this  subdivision  shall  preclude  an employer from
     8  requesting or receiving consumer credit history information pursuant  to
     9  a lawful subpoena, court order or law enforcement investigation.
    10    (e)  (1) Except as otherwise provided in this subdivision, it shall be
    11  an unlawful discriminatory practice for any state or municipal agency to
    12  request or use, and a violation  of  this  article  for  any  person  to
    13  disclose,  for licensing or permitting purposes information contained in
    14  the consumer credit history of an applicant, licensee or  permittee  for
    15  licensing or permitting purposes.
    16    (2)  Paragraph  one  of  this subdivision shall not apply to an agency
    17  required by state or federal law or regulations to use  an  individual's
    18  consumer credit history for licensing or permitting purposes.
    19    (3) Paragraph one of this subdivision shall not be construed to affect
    20  the  ability of an agency to consider an applicant's, licensee's, regis-
    21  trant's or permittee's failure to pay any tax, fine, penalty or fee  for
    22  which  liability has been admitted by the person liable therefor, or for
    23  which judgment has been entered by a court or administrative tribunal of
    24  competent jurisdiction, or any tax for which  a  government  agency  has
    25  issued a warrant, or a lien or levy on property.
    26    (4) Nothing in this subdivision shall preclude a licensing agency from
    27  requesting,  receiving,  or  using  consumer  credit history information
    28  obtained pursuant to a lawful subpoena, court order or  law  enforcement
    29  investigation.
    30    § 3. The division of human rights shall request information from state
    31  and  local  agencies  and non-governmental employers regarding the agen-
    32  cies' and employers' use of the exemptions  established  in  subdivision
    33  (d)  of section 380-b of the general business law for purposes of hiring
    34  and employment. Within two years of the effective date of this act,  the
    35  division  of  human  rights  shall  submit  to  the legislature a report
    36  concerning the results of such request and any  relevant  feedback  from
    37  agencies and employers.
    38    § 4. This act shall take effect on the one hundred twentieth day after
    39  it shall have become a law.
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