SENATE BILL 72

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Timothy M. Keller

AN ACT

RELATING TO CONSUMER CREDIT INFORMATION; PROHIBITING EMPLOYERS FROM USING AN EMPLOYEE'S OR PROSPECTIVE EMPLOYEE'S CREDIT INFORMATION AS A BASIS FOR EMPLOYMENT, RECRUITMENT, DISCHARGE OR COMPENSATION WITH SOME EXCEPTIONS; PROVIDING NOTICE TO EMPLOYEES OR PROSPECTIVE EMPLOYEES WHEN CREDIT INFORMATION IS USED BY EMPLOYERS OR PROSPECTIVE EMPLOYERS AS A BASIS FOR EMPLOYMENT, RECRUITMENT, DISCHARGE OR COMPENSATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. SHORT TITLE.--This act may be cited as the "Employee Credit Information Privacy Act".

     SECTION 2. PURPOSE OF ACT.--The purpose of the Employee Credit Information Privacy Act is to prevent a person's credit information from being used by an employer in an employment decision.

     SECTION 3. DEFINITIONS.--As used in the Employee Credit Information Privacy Act:

          A. "consumer reporting agency" means a person that, for monetary fees, dues or on a cooperative nonprofit basis, regularly engages, in whole or in part, in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties; and

          B. "credit information" means a written, oral or other communication prepared by a consumer reporting agency or provided by the employee or prospective employee to an employer or prospective employer, bearing on an employee's or prospective employee's credit worthiness, credit standing or credit capacity, that is used or is expected to be used or collected, in whole or in part, for the purpose of an employment decision.

     SECTION 4. USE OF CREDIT INFORMATION IN EMPLOYMENT DECISIONS PROHIBITED.--Except as provided in Section 5 of the Employee Credit Information Privacy Act, an employer or prospective employer shall not:

          A. fail or refuse to hire or recruit, or discharge or otherwise discriminate against, a person with respect to employment or compensation or with respect to a term, condition or privilege of employment, based on the person's credit information; or

          B. inquire about an applicant's or employee's credit information.

     SECTION 5. EXCEPTIONS TO THE PROHIBITION ON THE USE OF CREDIT INFORMATION IN EMPLOYMENT DECISIONS.--The prohibition in Section 4 of the Employee Credit Information Privacy Act does not prevent an employment or inquiry action if good credit information is an established bona fide occupational requirement of a particular position or a particular group of the employer's employees. Information regarding a person's credit information is not a bona fide occupational requirement unless:

          A. the person applies for, or currently holds, employment that requires federal deposit insurance corporation clearance;

          B. the person applies for, or currently holds, employment at a financial service institution; or

          C. the person applies for, or currently holds, employment that requires United States security clearance.

     SECTION 6. INITIAL NOTIFICATION OF USE OF CREDIT INFORMATION.--

          A. If an employer or prospective employer uses credit information to fail or refuse to hire or recruit, or to discharge or otherwise discriminate against, a person with respect to employment or compensation, or with respect to a term, condition or privilege of employment, the employer or prospective employer shall disclose to the employee or prospective employee at least once, either at the time of application or upon the first renewal subsequent to December 31, 2010, in writing or in the same medium as the application or renewal, that it uses that information.

          B. An employer or prospective employer shall use the following disclosure language to comply with the requirements of this section: "In connection with your application for employment or compensation or a term, condition or privilege of employment, we may review and use your credit information.".

     SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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