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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration by employers of the consumer credit |
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reports of employees and applicants for employment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 52, Labor Code, is amended by adding |
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Subchapter H to read as follows: |
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SUBCHAPTER H. CONSIDERATION OF CREDIT REPORT BY EMPLOYER |
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Sec. 52.081. DEFINITIONS. In this subchapter: |
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(1) "Adverse employment action" means the denial of |
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employment or a decision regarding the conditions of employment |
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that adversely affects an employee or applicant. |
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(2) "Applicant" means a person who has made an oral or |
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written application with an employer, or has sent a resume or other |
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correspondence to an employer, indicating an interest in |
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employment. |
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(3) "Consumer reporting agency" means any person that, |
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for monetary fees or dues or on a cooperative nonprofit basis, |
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regularly engages in the practice of assembling or evaluating |
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credit information or other information on individuals for the |
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purpose of furnishing credit reports to third parties. |
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(4) "Credit report" means any written, oral, or other |
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communication of information by a consumer reporting agency that |
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bears on an individual's creditworthiness, credit standing, credit |
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capacity, or debts. |
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(5) "Employee" and "employer" have the meanings |
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assigned by Section 21.002. |
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Sec. 52.082. ADVERSE EMPLOYMENT ACTION BY EMPLOYER. An |
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employer may take an adverse employment action against an employee |
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or applicant that is based wholly or partly on the employee's or |
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applicant's credit report only if: |
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(1) the employer provided to the employee or applicant |
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a copy of the credit report relied on by the employer together with |
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written instructions regarding how the employee or applicant, not |
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later than the second business day after the date the employee or |
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applicant receives the credit report and instructions, may provide |
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the employer with information explaining or otherwise addressing |
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the information in the credit report; and |
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(2) either: |
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(A) the employee or applicant has not provided to |
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the employer the information described by Subdivision (1) within |
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the time prescribed by that subdivision; or |
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(B) the employee or applicant provided to the |
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employer the information described by Subdivision (1) within the |
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time prescribed by that subdivision and the employer considered |
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that information before taking the action. |
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SECTION 2. This Act applies only to an adverse employment |
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action that is taken by an employer against an employee or applicant |
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for employment or other employer conduct that occurs on or after |
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January 1, 2018. Action taken by an employer or other conduct that |
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occurs before January 1, 2018, is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |