S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    779
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by M. of A. DINOWITZ, L. ROSENTHAL, WEPRIN, OTIS, SEAWRIGHT,
   REYES, TAYLOR, SAYEGH, EPSTEIN, STIRPE, HYNDMAN, STECK,  COOK,  GLICK,
   CRUZ, ZEBROWSKI, WALLACE, FALL, DARLING -- Multi-Sponsored by -- M. of
   A.  SIMON  --  read  once  and  referred  to the Committee 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00590-01-3
 A. 779                              2
              

 
   (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
 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-
 A. 779                              3
 
 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
 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  779--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by M. of A. DINOWITZ, L. ROSENTHAL, WEPRIN, OTIS, SEAWRIGHT,
   REYES, TAYLOR, SAYEGH, EPSTEIN, STIRPE, HYNDMAN, STECK,  COOK,  GLICK,
   CRUZ, ZEBROWSKI, WALLACE, FALL, DARLING -- Multi-Sponsored by -- M. of
   A.  SIMON  --  read  once  and  referred  to the Committee on Consumer
   Affairs and 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:
 
   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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00590-06-3
              

 A. 779--A                           2
 
   (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
 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;
   (III)  PERSONS  IN  A  POSITION THAT IS SUBJECT TO BACKGROUND INVESTI-
 GATION BY A STATE AGENCY, PROVIDED, HOWEVER, THAT THE APPOINTING  AGENCY
 MAY  NOT USE CONSUMER CREDIT HISTORY INFORMATION FOR EMPLOYMENT PURPOSES
 UNLESS THE POSITION IS AN APPOINTED POSITION IN WHICH A HIGH  DEGREE  OF
 PUBLIC TRUST, AS DEFINED BY THE COMMISSION IN RULES, HAS BEEN REPOSED.
   (IV)  PERSONS  IN  A  POSITION  IN WHICH AN EMPLOYEE IS REQUIRED TO BE
 BONDED UNDER STATE OR FEDERAL LAW;
   (V) PERSONS IN A POSITION IN WHICH AN EMPLOYEE IS REQUIRED TO  POSSESS
 SECURITY CLEARANCE UNDER FEDERAL LAW OR THE LAW OF ANY STATE;
   (VI) PERSONS IN A NON-CLERICAL POSITION HAVING REGULAR ACCESS TO TRADE
 SECRETS, INTELLIGENCE INFORMATION OR NATIONAL SECURITY INFORMATION;
   (VII) PERSONS IN A POSITION: (A) HAVING SIGNATORY AUTHORITY OVER THIRD
 PARTY  FUNDS  OR  ASSETS  VALUED AT TEN THOUSAND DOLLARS OR MORE; OR (B)
 THAT INVOLVES A  FIDUCIARY  RESPONSIBILITY  TO  THE  EMPLOYER  WITH  THE
 AUTHORITY  TO  ENTER FINANCIAL AGREEMENTS VALUED AT TEN THOUSAND DOLLARS
 OR MORE ON BEHALF OF THE EMPLOYER; OR
   (VIII) PERSONS IN A  POSITION  WITH  REGULAR  DUTIES  THAT  ALLOW  THE
 EMPLOYEE  TO  MODIFY DIGITAL SECURITY SYSTEMS ESTABLISHED TO PREVENT THE
 UNAUTHORIZED USE OF THE EMPLOYER'S OR CLIENT'S NETWORKS OR DATABASES.
   (3) AS USED IN THIS SUBDIVISION THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (I) "INTELLIGENCE INFORMATION" MEANS RECORDS AND DATA COMPILED FOR THE
 PURPOSE OF CRIMINAL INVESTIGATION OR COUNTERTERRORISM, INCLUDING RECORDS
 AND  DATA  RELATING TO THE ORDER OR SECURITY OF A CORRECTIONAL FACILITY,
 REPORTS OF INFORMANTS, INVESTIGATORS OR OTHER PERSONS, OR FROM ANY  TYPE
 OF  SURVEILLANCE ASSOCIATED WITH AN IDENTIFIABLE INDIVIDUAL, OR INVESTI-
 GATION OR ANALYSIS OF POTENTIAL TERRORIST THREATS;
   (II) "NATIONAL SECURITY INFORMATION" MEANS ANY KNOWLEDGE  RELATING  TO
 THE  NATIONAL DEFENSE OR FOREIGN RELATIONS OF THE UNITED STATES, REGARD-
 LESS OF ITS PHYSICAL FORM OR CHARACTERISTICS, THAT IS OWNED BY, PRODUCED
 BY OR FOR, OR IS UNDER THE CONTROL OF THE UNITED STATES  GOVERNMENT  AND
 IS  DEFINED AS SUCH BY THE UNITED STATES GOVERNMENT AND ITS AGENCIES AND
 DEPARTMENTS; AND
   (III) "TRADE SECRETS" MEANS INFORMATION THAT: (A) DERIVES  INDEPENDENT
 ECONOMIC  VALUE, ACTUAL OR POTENTIAL, FROM NOT BEING GENERALLY KNOWN TO,
 AND NOT BEING READILY ASCERTAINABLE BY PROPER MEANS BY OTHER PERSONS WHO
 CAN OBTAIN ECONOMIC VALUE FROM ITS DISCLOSURE OR USE; (B) IS THE SUBJECT
 OF EFFORTS THAT ARE REASONABLE UNDER THE CIRCUMSTANCES TO  MAINTAIN  ITS
 A. 779--A                           3
 
 SECRECY; AND (C) CAN REASONABLY BE SAID TO BE THE END PRODUCT OF SIGNIF-
 ICANT  INNOVATION.  THE  TERM  "TRADE  SECRETS" DOES NOT INCLUDE GENERAL
 PROPRIETARY COMPANY INFORMATION SUCH AS HANDBOOKS AND POLICIES. THE TERM
 "REGULAR  ACCESS TO TRADE SECRETS" DOES NOT INCLUDE ACCESS TO OR THE USE
 OF CLIENT, CUSTOMER OR MAILING LISTS.
   (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 LAW ENFORCEMENT INVESTIGATION.
   (5) 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.
   (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
 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, EXCEPT THAT A CONSUMER REPORT
 A. 779--A                           4
 
 MAY BE FURNISHED FOR SUCH PURPOSES ONLY IF SUCH REPORT EXCLUDES INFORMA-
 TION THAT BEARS ON A  CONSUMER'S  CREDIT  WORTHINESS,  CREDIT  STANDING,
 CREDIT  CAPACITY  OR  CREDIT  HISTORY,  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 consum-
 er where the user has a legitimate business need for  such  information,
 or (vi) 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  779--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by M. of A. DINOWITZ, L. ROSENTHAL, WEPRIN, OTIS, SEAWRIGHT,
   REYES, TAYLOR, SAYEGH, EPSTEIN, STIRPE, HYNDMAN, STECK,  COOK,  GLICK,
   CRUZ, ZEBROWSKI, WALLACE, FALL, DARLING -- Multi-Sponsored by -- M. of
   A.  SIMON  --  read  once  and  referred  to the Committee on Consumer
   Affairs and Protection -- committee discharged, bill amended,  ordered
   reprinted as amended and recommitted to said committee -- reported and
   referred to the Committee on Rules -- again reported from said commit-
   tee  with  amendments, 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:
 
   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.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00590-08-3
              

 A. 779--B                           2
 
   § 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
 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;
   (III) PERSONS IN A POSITION THAT IS  SUBJECT  TO  BACKGROUND  INVESTI-
 GATION  BY A STATE AGENCY, PROVIDED, HOWEVER, THAT THE APPOINTING AGENCY
 MAY NOT USE CONSUMER CREDIT HISTORY INFORMATION FOR EMPLOYMENT  PURPOSES
 UNLESS  THE  POSITION IS AN APPOINTED POSITION IN WHICH A HIGH DEGREE OF
 PUBLIC TRUST, AS DEFINED BY THE COMMISSION IN RULES, HAS BEEN REPOSED.
   (IV) PERSONS IN A POSITION IN WHICH AN  EMPLOYEE  IS  REQUIRED  TO  BE
 BONDED UNDER STATE OR FEDERAL LAW;
   (V)  PERSONS IN A POSITION IN WHICH AN EMPLOYEE IS REQUIRED TO POSSESS
 SECURITY CLEARANCE UNDER FEDERAL LAW OR THE LAW OF ANY STATE;
   (VI) PERSONS IN A NON-CLERICAL POSITION HAVING REGULAR ACCESS TO TRADE
 SECRETS, INTELLIGENCE INFORMATION OR NATIONAL SECURITY INFORMATION;
   (VII) PERSONS IN A POSITION: (A) HAVING SIGNATORY AUTHORITY OVER THIRD
 PARTY FUNDS OR ASSETS VALUED AT TEN THOUSAND DOLLARS  OR  MORE;  OR  (B)
 THAT  INVOLVES  A  FIDUCIARY  RESPONSIBILITY  TO  THE  EMPLOYER WITH THE
 AUTHORITY TO ENTER FINANCIAL AGREEMENTS VALUED AT TEN  THOUSAND  DOLLARS
 OR MORE ON BEHALF OF THE EMPLOYER; OR
   (VIII)  PERSONS  IN  A  POSITION  WITH  REGULAR  DUTIES THAT ALLOW THE
 EMPLOYEE TO MODIFY DIGITAL SECURITY SYSTEMS ESTABLISHED TO  PREVENT  THE
 UNAUTHORIZED USE OF THE EMPLOYER'S OR CLIENT'S NETWORKS OR DATABASES.
   (3)  AS  USED  IN  THIS SUBDIVISION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (I) "INTELLIGENCE INFORMATION" MEANS RECORDS AND DATA COMPILED FOR THE
 PURPOSE OF CRIMINAL INVESTIGATION OR COUNTERTERRORISM, INCLUDING RECORDS
 AND DATA RELATING TO THE ORDER OR SECURITY OF A  CORRECTIONAL  FACILITY,
 REPORTS  OF INFORMANTS, INVESTIGATORS OR OTHER PERSONS, OR FROM ANY TYPE
 OF SURVEILLANCE ASSOCIATED WITH AN IDENTIFIABLE INDIVIDUAL, OR  INVESTI-
 GATION OR ANALYSIS OF POTENTIAL TERRORIST THREATS;
   (II)  "NATIONAL  SECURITY INFORMATION" MEANS ANY KNOWLEDGE RELATING TO
 THE NATIONAL DEFENSE OR FOREIGN RELATIONS OF THE UNITED STATES,  REGARD-
 LESS OF ITS PHYSICAL FORM OR CHARACTERISTICS, THAT IS OWNED BY, PRODUCED
 BY  OR  FOR, OR IS UNDER THE CONTROL OF THE UNITED STATES GOVERNMENT AND
 IS DEFINED AS SUCH BY THE UNITED STATES GOVERNMENT AND ITS AGENCIES  AND
 DEPARTMENTS; AND
   (III)  "TRADE SECRETS" MEANS INFORMATION THAT: (A) DERIVES INDEPENDENT
 ECONOMIC VALUE, ACTUAL OR POTENTIAL, FROM NOT BEING GENERALLY KNOWN  TO,
 A. 779--B                           3
 
 AND NOT BEING READILY ASCERTAINABLE BY PROPER MEANS BY OTHER PERSONS WHO
 CAN OBTAIN ECONOMIC VALUE FROM ITS DISCLOSURE OR USE; (B) IS THE SUBJECT
 OF  EFFORTS  THAT ARE REASONABLE UNDER THE CIRCUMSTANCES TO MAINTAIN ITS
 SECRECY; AND (C) CAN REASONABLY BE SAID TO BE THE END PRODUCT OF SIGNIF-
 ICANT  INNOVATION.  THE  TERM  "TRADE  SECRETS" DOES NOT INCLUDE GENERAL
 PROPRIETARY COMPANY INFORMATION SUCH AS HANDBOOKS AND POLICIES. THE TERM
 "REGULAR ACCESS TO TRADE SECRETS" DOES NOT INCLUDE ACCESS TO OR THE  USE
 OF CLIENT, CUSTOMER OR MAILING LISTS.
   (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 LAW ENFORCEMENT INVESTIGATION.
   (5) 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.
   (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
 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
 A. 779--B                           4
 
 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, EXCEPT THAT A CONSUMER REPORT
 MAY BE FURNISHED FOR SUCH PURPOSES ONLY IF SUCH REPORT EXCLUDES INFORMA-
 TION  THAT  BEARS  ON  A  CONSUMER'S CREDIT WORTHINESS, CREDIT STANDING,
 CREDIT CAPACITY OR CREDIT  HISTORY,  EXCEPT  THAT  SUCH  INFORMATION  IS
 PERMITTED  TO BE DISSEMINATED TO EMPLOYERS OR PERSONS SET FORTH IN PARA-
 GRAPH TWO OF SUBDIVISION (D) 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.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.