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

                                  7056

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 30, 2013
                               ___________

Introduced  by M. of A. DINOWITZ, WEINSTEIN, WRIGHT, ROSENTHAL, MILLMAN,
  CRESPO, MILLER, RODRIGUEZ, SKOUFIS, GABRYSZAK, BUCHWALD,  V. LOPEZ  --
  Multi-Sponsored  by  --  M.   of A. GIBSON, HIKIND, JAFFEE, SOLAGES --
  read once and referred  to  the  Committee  on  Consumer  Affairs  and
  Protection

AN  ACT to amend the general business law and the labor law, in relation
  to the use of consumer credit reports for employment decisions

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "credit privacy in employment act".
  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, SUBJECT TO THE PROVISIONS  OF
SECTION  THREE  HUNDRED  EIGHTY-U OF THIS ARTICLE 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-m of the general business law, as amended by  chapter
279 of the laws of 2008, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10587-02-3

              

A. 7056                             2

  S  380-m.  Civil  liability  for negligent noncompliance. Any consumer
reporting agency or user of information who or  which  is  negligent  in
failing to comply with any requirement imposed under this article, other
than  a  violation  of  section  three hundred eighty-t OR THREE HUNDRED
EIGHTY-U of this article, with respect to any consumer is liable to that
consumer in an amount equal to the sum of:
  (a)  Any  actual  damages sustained by the consumer as a result of the
failure;
  (b) In the case of any successful  action  to  enforce  any  liability
under  this  section,  the  costs of the action together with reasonable
attorney's fees as determined by the court.
  S 4. Section 380-u of the general business law, as relettered by chap-
ter 63 of the laws of 2006,  is  relettered  section  380-v  and  a  new
section 380-u is added to read as follows:
  S 380-U. USE OF CONSUMER CREDIT REPORTS FOR EMPLOYMENT DECISIONS.  (A)
NO EMPLOYER, EMPLOYMENT AGENCY, OR LICENSING AGENCY, OR AGENT, REPRESEN-
TATIVE OR DESIGNEE THEREOF, SHALL:
  (1)  USE  INFORMATION IN THE CONSUMER CREDIT REPORT OF A JOB APPLICANT
OR EMPLOYEE IN CONNECTION WITH OR AS A CRITERION  FOR  EMPLOYMENT  DECI-
SIONS  RELATED  TO HIRING, TERMINATION, PROMOTION, DEMOTION, DISCIPLINE,
COMPENSATION, OR THE TERMS, CONDITIONS OR PRIVILEGES OF EMPLOYMENT;
  (2) REQUEST THE JOB APPLICANT'S OR EMPLOYEE'S CONSUMER  CREDIT  REPORT
FOR SUCH PURPOSE; OR
  (3)  REFUSE  TO  HIRE  A  JOB  APPLICANT  ON THE GROUND THAT HE OR SHE
REFUSES TO GIVE CONSENT FOR THE OBTAINMENT OF HIS OR HER CONSUMER CREDIT
REPORT.
  (B) THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION SHALL NOT  APPLY
IF  THE  EMPLOYER  IS REQUIRED BY STATE OR FEDERAL LAW TO USE A CONSUMER
CREDIT REPORT FOR EMPLOYMENT DECISIONS.
  (C) (1) WHEREVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLI-
CATION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE  OF
THE  STATE  OF  NEW  YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A
SPECIAL PROCEEDING TO ISSUE  AN  INJUNCTION,  AND  UPON  NOTICE  TO  THE
DEFENDANT  OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE CONTIN-
UANCE OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE  SATISFACTION  OF
THE  COURT  OR  JUSTICE  THAT  THE DEFENDANT HAS, IN FACT, VIOLATED THIS
SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
TION.    WHENEVER  THE  COURT  SHALL  DETERMINE THAT A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  MORE
THAN  TWO  THOUSAND  DOLLARS  FOR EACH VIOLATION. IN CONNECTION WITH ANY
SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS  AUTHORIZED  TO  TAKE
PROOF  AND  MAKE  A  DETERMINATION  OF  THE  RELEVANT FACTS AND TO ISSUE
SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
  (2) ANY PERSON INJURED BY A VIOLATION OF THIS  SECTION  MAY  BRING  AN
ACTION  IN  HIS OR HER OWN NAME TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE,
AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR  THREE  THOUSAND  FIVE
HUNDRED  DOLLARS, WHICHEVER IS GREATER, OR BOTH SUCH ACTIONS.  THE COURT
MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN  AMOUNT  NOT
TO  EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TEN THOUSAND DOLLARS, IF
THE COURT FINDS THE DEFENDANT WILLFULLY OR KNOWINGLY VIOLATED THIS ARTI-
CLE. IN THE CASE OF ANY  SUCCESSFUL  ACTION  TO  ENFORCE  THE  FOREGOING

A. 7056                             3

LIABILITY,  THE  COURT  MAY  AWARD THE COSTS OF THE ACTION TOGETHER WITH
REASONABLE ATTORNEY'S FEES.
  (D)  A  CONSUMER  MAY  FILE  A  COMPLAINT  ALLEGING A VIOLATION OF THE
PROVISIONS OF THIS SUBDIVISION WITH THE DEPARTMENT OF LABOR PURSUANT  TO
SECTION TWO HUNDRED NINETEEN-D OF THE LABOR LAW.
  S  5. Section 380-i of the general business law is amended by adding a
new subdivision (d) to read as follows:
  (D) IN USING A CONSUMER CREDIT REPORT ANY EMPLOYER, EMPLOYMENT AGENCY,
LICENSING AGENCY, AGENT,  REPRESENTATIVE  OR  DESIGNEE  THEREOF,  BEFORE
TAKING  ANY  ADVERSE ACTION BASED IN WHOLE OR PART ON SUCH REPORT, SHALL
PROVIDE TO THE JOB APPLICANT OR EMPLOYEE:
  (1) THE NAME, ADDRESS, AND TELEPHONE NUMBER OF THE CONSUMER  REPORTING
AGENCY PROVIDING THE REPORT;
  (2) A DESCRIPTION OF THE CONSUMER'S RIGHTS UNDER SECTION THREE HUNDRED
EIGHTY-B OF THIS ARTICLE; AND
  (3)  A  REASONABLE  OPPORTUNITY  TO  RESPOND TO ANY INFORMATION IN THE
REPORT.
  S 6. The labor law is amended by adding a new section 219-d to read as
follows:
  S 219-D. FILING OF COMPLAINT. ANY JOB APPLICANT OR EMPLOYEE  MAY  FILE
WITH  THE  COMMISSIONER  A  COMPLAINT  REGARDING AN ALLEGED VIOLATION OF
SECTION THREE HUNDRED EIGHTY-U OF THE GENERAL BUSINESS LAW FOR AN INVES-
TIGATION OF SUCH COMPLAINT AND STATEMENT SETTING THE APPROPRIATE REMEDY,
IF ANY.
  S 7. This act shall take effect on the one hundred twentieth day after
it shall have become a law.