1 | 1 | | 85R18580 KKR-F |
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2 | 2 | | By: Canales, Collier H.B. No. 317 |
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3 | 3 | | Substitute the following for H.B. No. 317: |
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4 | 4 | | By: Villalba C.S.H.B. No. 317 |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the consideration by employers of the consumer credit |
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10 | 10 | | reports of employees and applicants for employment. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Chapter 52, Labor Code, is amended by adding |
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13 | 13 | | Subchapter H to read as follows: |
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14 | 14 | | SUBCHAPTER H. CONSIDERATION OF CREDIT REPORT BY EMPLOYER |
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15 | 15 | | Sec. 52.081. DEFINITIONS. In this subchapter: |
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16 | 16 | | (1) "Adverse employment action" means the denial of |
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17 | 17 | | employment or a decision regarding the conditions of employment |
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18 | 18 | | that adversely affects an employee or applicant. |
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19 | 19 | | (2) "Applicant" means a person who has made an oral or |
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20 | 20 | | written application with an employer, or has sent a resume or other |
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21 | 21 | | correspondence to an employer, indicating an interest in |
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22 | 22 | | employment. |
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23 | 23 | | (3) "Consumer reporting agency" means any person that, |
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24 | 24 | | for monetary fees or dues or on a cooperative nonprofit basis, |
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25 | 25 | | regularly engages in the practice of assembling or evaluating |
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26 | 26 | | credit information or other information on individuals for the |
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27 | 27 | | purpose of furnishing credit reports to third parties. |
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28 | 28 | | (4) "Credit report" means any written, oral, or other |
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29 | 29 | | communication of information by a consumer reporting agency that |
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30 | 30 | | bears on an individual's creditworthiness, credit standing, credit |
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31 | 31 | | capacity, or debts. |
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32 | 32 | | (5) "Employee" and "employer" have the meanings |
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33 | 33 | | assigned by Section 21.002. |
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34 | 34 | | Sec. 52.082. ADVERSE EMPLOYMENT ACTION BY EMPLOYER. An |
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35 | 35 | | employer may take an adverse employment action against an employee |
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36 | 36 | | or applicant that is based wholly or partly on the employee's or |
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37 | 37 | | applicant's credit report only if: |
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38 | 38 | | (1) the employer provided to the employee or applicant |
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39 | 39 | | a copy of the credit report relied on by the employer together with |
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40 | 40 | | written instructions regarding how the employee or applicant, not |
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41 | 41 | | later than the second business day after the date the employee or |
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42 | 42 | | applicant receives the credit report and instructions, may provide |
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43 | 43 | | the employer with information explaining or otherwise addressing |
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44 | 44 | | the information in the credit report; and |
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45 | 45 | | (2) either: |
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46 | 46 | | (A) the employee or applicant has not provided to |
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47 | 47 | | the employer the information described by Subdivision (1) within |
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48 | 48 | | the time prescribed by that subdivision; or |
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49 | 49 | | (B) the employee or applicant provided to the |
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50 | 50 | | employer the information described by Subdivision (1) within the |
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51 | 51 | | time prescribed by that subdivision and the employer considered |
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52 | 52 | | that information before taking the action. |
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53 | 53 | | SECTION 2. This Act applies only to an adverse employment |
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54 | 54 | | action that is taken by an employer against an employee or applicant |
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55 | 55 | | for employment or other employer conduct that occurs on or after |
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56 | 56 | | January 1, 2018. Action taken by an employer or other conduct that |
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57 | 57 | | occurs before January 1, 2018, is governed by the law in effect |
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58 | 58 | | immediately before the effective date of this Act, and the former |
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59 | 59 | | law is continued in effect for that purpose. |
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60 | 60 | | SECTION 3. This Act takes effect September 1, 2017. |
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