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
A BILL TO BE ENTITLED
AN ACT
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.