SENATE BILL 128

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Bill B. O'Neill

AN ACT

RELATING TO CONSUMER CREDIT INFORMATION; PROHIBITING PROSPECTIVE EMPLOYERS FROM USING A PROSPECTIVE EMPLOYEE'S CREDIT INFORMATION AS A BASIS FOR REFUSING TO RECRUIT OR INTERVIEW THE PROSPECTIVE EMPLOYEE, WITH SOME EXCEPTIONS.

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

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

     SECTION 2. PURPOSE OF ACT.--The purpose of the Prospective Employee Credit Information Privacy Act is to prevent a prospective employee's credit information from being used by a prospective employer to deny that person an interview.

     SECTION 3. DEFINITIONS.--As used in the Prospective 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 a prospective employee to a prospective employer, bearing on the prospective employee's creditworthiness, credit standing or credit capacity.

     SECTION 4. USE OF CREDIT INFORMATION IN DECISIONS TO RECRUIT OR INTERVIEW PROHIBITED.--Except as provided in Section 5 of the Prospective Employee Credit Information Privacy Act, a prospective employer shall not fail to or refuse to recruit or interview a prospective employee with respect to employment based on that person's credit information.

     SECTION 5. EXCEPTIONS TO THE PROHIBITION ON THE USE OF CREDIT INFORMATION IN DECISIONS TO RECRUIT OR INTERVIEW.--The prohibition in Section 4 of the Prospective Employee Credit Information Privacy Act does not prevent a prospective employer from using a prospective employee's credit information to make a decision to recruit or interview that person if good credit information is an established bona fide occupational requirement of a particular position or a particular group of the prospective employer's employees. Information regarding a prospective employee's credit information is not a bona fide occupational requirement unless:

          A. that person applies for employment that requires federal deposit insurance corporation clearance;

          B. that person applies for employment at a financial service institution; or

          C. that person applies for employment that requires United States security clearance.

     SECTION 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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