Bill Text: TX HB317 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to the consideration by employers of the consumer credit reports of employees and applicants for employment.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-05-01 - Considered in Calendars [HB317 Detail]
Download: Texas-2017-HB317-Comm_Sub.html
| 85R18580 KKR-F | |||
| By: Canales, Collier | H.B. No. 317 | ||
| Substitute the following for H.B. No. 317: | |||
| By: Villalba | C.S.H.B. No. 317 | ||
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| relating to the consideration by employers of the consumer credit | ||
| reports of employees and applicants for employment. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 52, Labor Code, is amended by adding | ||
| Subchapter H to read as follows: | ||
| SUBCHAPTER H. CONSIDERATION OF CREDIT REPORT BY EMPLOYER | ||
| Sec. 52.081. DEFINITIONS. In this subchapter: | ||
| (1) "Adverse employment action" means the denial of | ||
| employment or a decision regarding the conditions of employment | ||
| that adversely affects an employee or applicant. | ||
| (2) "Applicant" means a person who has made an oral or | ||
| written application with an employer, or has sent a resume or other | ||
| correspondence to an employer, indicating an interest in | ||
| employment. | ||
| (3) "Consumer reporting agency" means any person that, | ||
| for monetary fees or dues or on a cooperative nonprofit basis, | ||
| regularly engages in the practice of assembling or evaluating | ||
| credit information or other information on individuals for the | ||
| purpose of furnishing credit reports to third parties. | ||
| (4) "Credit report" means any written, oral, or other | ||
| communication of information by a consumer reporting agency that | ||
| bears on an individual's creditworthiness, credit standing, credit | ||
| capacity, or debts. | ||
| (5) "Employee" and "employer" have the meanings | ||
| assigned by Section 21.002. | ||
| Sec. 52.082. ADVERSE EMPLOYMENT ACTION BY EMPLOYER. An | ||
| employer may take an adverse employment action against an employee | ||
| or applicant that is based wholly or partly on the employee's or | ||
| applicant's credit report only if: | ||
| (1) the employer provided to the employee or applicant | ||
| a copy of the credit report relied on by the employer together with | ||
| written instructions regarding how the employee or applicant, not | ||
| later than the second business day after the date the employee or | ||
| applicant receives the credit report and instructions, may provide | ||
| the employer with information explaining or otherwise addressing | ||
| the information in the credit report; and | ||
| (2) either: | ||
| (A) the employee or applicant has not provided to | ||
| the employer the information described by Subdivision (1) within | ||
| the time prescribed by that subdivision; or | ||
| (B) the employee or applicant provided to the | ||
| employer the information described by Subdivision (1) within the | ||
| time prescribed by that subdivision and the employer considered | ||
| that information before taking the action. | ||
| SECTION 2. This Act applies only to an adverse employment | ||
| action that is taken by an employer against an employee or applicant | ||
| for employment or other employer conduct that occurs on or after | ||
| January 1, 2018. Action taken by an employer or other conduct that | ||
| occurs before January 1, 2018, is governed by the law in effect | ||
| immediately before the effective date of this Act, and the former | ||
| law is continued in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2017. | ||
