Bill Text: CA AB943 | 2009-2010 | Regular Session | Enrolled
Bill Title: Employment: credit reports.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB943 Detail]
Download: California-2009-AB943-Enrolled.html
BILL NUMBER: AB 943 ENROLLED BILL TEXT PASSED THE SENATE SEPTEMBER 3, 2009 PASSED THE ASSEMBLY SEPTEMBER 9, 2009 AMENDED IN SENATE JULY 9, 2009 AMENDED IN ASSEMBLY APRIL 14, 2009 INTRODUCED BY Assembly Member Mendoza (Coauthors: Assembly Members Eng, Ma, and Portantino) FEBRUARY 26, 2009 An act to add Chapter 3.6 (commencing with Section 1024.5) to Part 2 of Division 2 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST AB 943, Mendoza. Employment: credit reports. The federal Fair Credit Reporting Act (FCRA) and the state Consumer Credit Reporting Agencies Act define and regulate consumer credit reports and authorize the use of consumer credit reports for employment purposes, pursuant to specified requirements. The FCRA provides that it does not preempt state law, except as specifically provided or to the extent that state laws are inconsistent with its provisions. Existing federal and state law specify the procedures that an employer is required to follow before requesting a report and if adverse action is taken based on the report. Under existing law, an employer may request a credit report for employment purposes so long as he or she provides written notice of the request to the person for whom the report is sought. Existing law requires that the written notice inform the person for whom the consumer credit report was sought of the source of the report and contain space for the person to request a copy of the report. Existing law further requires an employer, whenever he or she bases an adverse employment decision on information contained in a consumer credit report, to advise the person for whom the report was sought that an adverse action was taken based upon information contained in the report and provide the person with the name and address of the consumer credit agency making the report. This bill would prohibit an employer, with the exception of certain financial institutions, from obtaining a consumer credit report for employment purposes unless the information is (1) substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information, and (2) the position of the person for which the person is sought is a position in the state Department of Justice, a managerial position, a position in a city, county, or both city and county, that of a sworn peace officer or other law enforcement position, or a position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Chapter 3.6 (commencing with Section 1024.5) is added to Part 2 of Division 2 of the Labor Code, to read: CHAPTER 3.6. EMPLOYER USE OF CONSUMER CREDIT REPORTS 1024.5. (a) An employer shall not use a consumer credit report for employment purposes unless the following criteria are satisfied: (1) The information contained in the report is substantially job-related, meaning that the position of the person for whom the report is sought has access to money, other assets, or confidential information. (2) The position of the person for whom the report is sought is any of the following: (A) A managerial position. (B) A position in the state Department of Justice. (C) A position in a city, county, or both city and county. (D) That of a sworn peace officer or other law enforcement position. (E) A position for which the information contained in the report is required to be disclosed by law or to be obtained by the employer. (b) This section does not apply to a person or business subject to Sections 6801 to 6809, inclusive, of Title 15 of the United States Code and state and federal statutes or regulations implementing those sections if the person or business is subject to compliance oversight by a state or federal regulatory agency with respect to those laws.