S T A T E O F N E W Y O R K
________________________________________________________________________
1731--D
Cal. No. 577
2023-2024 Regular Sessions
I N S E N A T E
January 13, 2023
___________
Introduced by Sens. SANDERS, COMRIE, GOUNARDES, HOYLMAN-SIGAL, KRUEGER,
MAY, RAMOS, RIVERA, THOMAS -- 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 -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading -- recommitted to
the Committee on Consumer Protection in accordance with Senate Rule 6,
sec. 8 -- reported favorably from said committee, ordered to first and
second report, ordered to a third reading, amended and ordered
reprinted, retaining its place in the order of third reading
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 (w) to read as follows:
(W) 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00590-11-4
S. 1731--D 2
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
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
S. 1731--D 3
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
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.
S. 1731--D 4
§ 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
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 AND IS BASED ON THE CONSUMER'S FINAN-
CIAL TRANSACTIONS, EXCEPT THAT SUCH INFORMATION IS PERMITTED TO BE
DISSEMINATED TO EMPLOYERS OR PERSONS SET FORTH IN PARAGRAPH TWO OF
SUBDIVISION (D) OF THIS SECTION, or (iii) in connection with the under-
writing 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.
