| 1 | 1 | | 84R13877 JSC-D |
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| 2 | 2 | | By: Fletcher H.B. No. 3964 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the consideration by employers of the consumer credit |
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| 8 | 8 | | reports or other credit information of applicants for employment |
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| 9 | 9 | | who are recently returned veterans. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Chapter 52, Labor Code, is amended by adding |
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| 12 | 12 | | Subchapter H to read as follows: |
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| 13 | 13 | | SUBCHAPTER H. CONSIDERATION OF CONSUMER CREDIT REPORTS OF CERTAIN |
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| 14 | 14 | | VETERANS |
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| 15 | 15 | | Sec. 52.081. DEFINITIONS. In this subchapter: |
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| 16 | 16 | | (1) "Applicant" means a person who has made an oral or |
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| 17 | 17 | | written application with an employer, or has sent a resume or other |
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| 18 | 18 | | correspondence to an employer, indicating an interest in |
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| 19 | 19 | | employment. |
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| 20 | 20 | | (2) "Commission" means the Texas Workforce |
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| 21 | 21 | | Commission. |
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| 22 | 22 | | (3) "Consumer" means an individual whose credit |
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| 23 | 23 | | information is used or whose credit score is computed. |
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| 24 | 24 | | (4) "Consumer reporting agency" means any person that, |
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| 25 | 25 | | for monetary fees or dues or on a cooperative nonprofit basis, |
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| 26 | 26 | | regularly engages in the practice of assembling or evaluating |
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| 27 | 27 | | consumer credit information or other information on consumers for |
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| 28 | 28 | | the purpose of furnishing consumer reports to third parties. |
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| 29 | 29 | | (5) "Credit information" means any credit-related |
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| 30 | 30 | | information derived from a credit report or found in a credit |
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| 31 | 31 | | report. The term does not include information that is not |
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| 32 | 32 | | credit-related, regardless of whether that information is |
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| 33 | 33 | | contained in a credit report. |
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| 34 | 34 | | (6) "Credit report" means any written, oral, or other |
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| 35 | 35 | | communication of information by a consumer reporting agency that |
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| 36 | 36 | | bears on a consumer's creditworthiness, credit standing, or credit |
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| 37 | 37 | | capacity. |
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| 38 | 38 | | (7) "Employer" has the meaning assigned by Section |
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| 39 | 39 | | 21.002. |
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| 40 | 40 | | (8) "Recently returned veteran" means a veteran who |
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| 41 | 41 | | was honorably discharged not more than two years before the date of |
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| 42 | 42 | | an employment application. |
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| 43 | 43 | | (9) "Veteran" has the meaning assigned by 38 U.S.C. |
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| 44 | 44 | | Section 101(2). |
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| 45 | 45 | | Sec. 52.082. RULES. The commission may adopt rules as |
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| 46 | 46 | | necessary to implement this subchapter. |
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| 47 | 47 | | Sec. 52.083. CONSIDERATION OF RECENTLY RETURNED VETERAN'S |
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| 48 | 48 | | CREDIT INFORMATION PROHIBITED. In making an employment decision |
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| 49 | 49 | | regarding an applicant who is a recently returned veteran, an |
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| 50 | 50 | | employer may not consider the applicant's credit report or other |
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| 51 | 51 | | credit information. |
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| 52 | 52 | | SECTION 2. This Act applies only to an adverse employment |
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| 53 | 53 | | action that is taken by an employer against an applicant for |
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| 54 | 54 | | employment on or after January 1, 2016. Action taken by an employer |
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| 55 | 55 | | that occurs before January 1, 2016, is governed by the law in effect |
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| 56 | 56 | | immediately before the effective date of this Act, and the former |
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| 57 | 57 | | law is continued in effect for that purpose. |
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| 58 | 58 | | SECTION 3. This Act takes effect September 1, 2015. |
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