S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6388
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 16, 2021
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 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:
 
   Section 1. Section 380-a of the general business  law  is  amended  by
 adding a new subdivision (v) to read as follows:
   (V)  THE  TERM  "CONSUMER CREDIT HISTORY" MEANS AN INDIVIDUAL'S CREDIT
 WORTHINESS, CREDIT STANDING, CREDIT  CAPACITY  OR  PAYMENT  HISTORY,  AS
 INDICATED BY:
   (1) A CONSUMER CREDIT REPORT;
   (2) CREDIT SCORE; OR
   (3)  INFORMATION  AN  EMPLOYER  OBTAINS  DIRECTLY  FROM THE INDIVIDUAL
 REGARDING (I) DETAILS ABOUT CREDIT ACCOUNTS, INCLUDING THE  INDIVIDUAL'S
 NUMBER  OF  CREDIT ACCOUNTS, LATE OR MISSED PAYMENTS, CHARGED-OFF DEBTS,
 ITEMS IN COLLECTIONS, CREDIT LIMIT OR PRIOR CREDIT REPORT INQUIRIES,  OR
 (II) BANKRUPTCIES, JUDGMENTS OR LIENS.
   A  CONSUMER  CREDIT REPORT SHALL INCLUDE ANY WRITTEN OR OTHER COMMUNI-
 CATION OF ANY INFORMATION BY A CONSUMER REPORTING AGENCY THAT BEARS ON A
 CONSUMER'S CREDITWORTHINESS, CREDIT STANDING, CREDIT CAPACITY OR  CREDIT
 HISTORY.
   §  2.  Subdivision (d) of section 380-b of the general business law is
 relettered subdivision (g) and three new subdivisions (d), (e)  and  (f)
 are added to read as follows:
   (D)  (1) EXCEPT AS PROVIDED IN THIS SUBDIVISION, IT SHALL BE AN UNLAW-
 FUL DISCRIMINATORY PRACTICE FOR AN EMPLOYER, LABOR ORGANIZATION, EMPLOY-
 MENT AGENCY OR ANY AGENT THEREOF TO REQUEST OR  TO  USE  FOR  EMPLOYMENT
 PURPOSES  THE  CONSUMER CREDIT HISTORY OF AN APPLICANT FOR EMPLOYMENT OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09379-01-1

 A. 6388                             2
 
 EMPLOYEE, OR OTHERWISE DISCRIMINATE AGAINST  AN  APPLICANT  OR  EMPLOYEE
 WITH REGARD TO HIRING, COMPENSATION,  OR THE TERMS, CONDITIONS OR PRIVI-
 LEGES  OF  EMPLOYMENT BASED ON THE CONSUMER CREDIT HISTORY OF THE APPLI-
 CANT OR EMPLOYEE.
   (2) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO:
   (I) AN EMPLOYER, OR AGENT THEREOF, THAT IS REQUIRED BY STATE OR FEDER-
 AL  LAW  OR  BY  A  SELF-REGULATORY  ORGANIZATION  AS DEFINED IN SECTION
 3(A)(26) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED  TO  USE  AN
 INDIVIDUAL'S CONSUMER CREDIT HISTORY FOR EMPLOYMENT PURPOSES;
   (II)  PERSONS  APPLYING FOR POSITIONS AS OR EMPLOYED AS PEACE OFFICERS
 OR POLICE OFFICERS, AS SUCH TERMS ARE DEFINED  IN  SUBDIVISIONS  THIRTY-
 THREE  AND  THIRTY-FOUR  OF  SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW,
 RESPECTIVELY, OR IN A POSITION WITH A LAW ENFORCEMENT  OR  INVESTIGATIVE
 FUNCTION IN A LAW ENFORCEMENT AGENCY.
   (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO AFFECT
 THE  OBLIGATIONS  OF  PERSONS REQUIRED BY STATE OR LOCAL LAW RELATING TO
 DISCLOSURES BY PUBLIC EMPLOYEES OF CONFLICTS OF INTEREST.
   (4) NOTHING IN  THIS  SUBDIVISION  SHALL  PRECLUDE  AN  EMPLOYER  FROM
 REQUESTING  OR RECEIVING CONSUMER CREDIT HISTORY INFORMATION PURSUANT TO
 A LAWFUL SUBPOENA, COURT ORDER  OR  SPECIFIC  LAW  ENFORCEMENT  INVESTI-
 GATION.
   (E)  (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, IT SHALL BE
 AN UNLAWFUL DISCRIMINATORY PRACTICE FOR ANY STATE OR MUNICIPAL AGENCY TO
 REQUEST  OR  USE  FOR  LICENSING  OR  PERMITTING  PURPOSES   INFORMATION
 CONTAINED  IN  THE  CONSUMER CREDIT HISTORY OF AN APPLICANT, LICENSEE OR
 PERMITTEE FOR LICENSING OR PERMITTING PURPOSES.
   (2) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT  APPLY  TO  AN  AGENCY
 REQUIRED  BY STATE OR FEDERAL LAW TO USE AN INDIVIDUAL'S CONSUMER CREDIT
 HISTORY FOR LICENSING OR PERMITTING PURPOSES.
   (3) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO AFFECT
 THE ABILITY OF AN AGENCY TO CONSIDER AN APPLICANT'S, LICENSEE'S,  REGIS-
 TRANT'S  OR PERMITTEE'S FAILURE TO PAY ANY TAX, FINE, PENALTY OR FEE FOR
 WHICH LIABILITY HAS BEEN ADMITTED BY THE PERSON LIABLE THEREFOR, OR  FOR
 WHICH JUDGMENT HAS BEEN ENTERED BY A COURT OR ADMINISTRATIVE TRIBUNAL OF
 COMPETENT  JURISDICTION,  OR  ANY  TAX FOR WHICH A GOVERNMENT AGENCY HAS
 ISSUED A WARRANT, OR A LIEN OR LEVY ON PROPERTY.
   (4) NOTHING IN THIS SUBDIVISION SHALL PRECLUDE A LICENSING AGENCY FROM
 REQUESTING, RECEIVING, OR  USING  CONSUMER  CREDIT  HISTORY  INFORMATION
 OBTAINED  PURSUANT  TO  A  LAWFUL  SUBPOENA, COURT ORDER OR SPECIFIC LAW
 ENFORCEMENT INVESTIGATION.
   (F) THIS SECTION DOES NOT ANNUL, ALTER, AFFECT OR EXEMPT ANY EMPLOYER,
 LABOR ORGANIZATION, EMPLOYMENT AGENCY OR ANY AGENT  THEREOF  SUBJECT  TO
 THE  PROVISIONS OF THIS SECTION FROM COMPLYING WITH ANY LOCAL LAW, ORDI-
 NANCE OR REGULATION WITH RESPECT TO THE USE OF CONSUMER  CREDIT  HISTORY
 FOR  EMPLOYMENT PURPOSES EXCEPT TO THE EXTENT THAT THOSE LAWS ARE INCON-
 SISTENT WITH ANY PROVISION OF THIS SECTION, AND THEN ONLY TO THE  EXTENT
 OF  SUCH  INCONSISTENCY.  FOR PURPOSES OF THIS SUBDIVISION, A LOCAL LAW,
 ORDINANCE OR REGULATION IS NOT INCONSISTENT WITH  THIS  SECTION  IF  THE
 PROTECTION  SUCH  LAW OR REGULATION AFFORDS AN EMPLOYEE OR JOB APPLICANT
 IS GREATER THAN THE PROTECTION PROVIDED BY THIS SECTION.
   § 3. The division of human rights shall request information from state
 and local agencies and non-governmental employers  regarding  the  agen-
 cies'  and  employers'  use of the exemptions established in subdivision
 (d) of section 380-b of the general business law for purposes of  hiring
 and  employment. Within two years of the effective date of this act, the
 division of human rights  shall  submit  to  the  legislature  a  report

 A. 6388                             3
 
 concerning  the  results  of such request and any relevant feedback from
 agencies and employers.
   §  4.  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, or (iii)] in connection with
 the underwriting of insurance involving the consumer, or [(iv)] (III) 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)] (IV) to a person in connection with a  business  trans-
 action  involving  the consumer where the user has a legitimate business
 need for such information, or [(vi)] (V) in connection with  the  rental
 or lease of a residence.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.