Texas 2017 - 85th Regular

Texas House Bill HB317 Compare Versions

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11 85R18580 KKR-F
22 By: Canales, Collier H.B. No. 317
33 Substitute the following for H.B. No. 317:
44 By: Villalba C.S.H.B. No. 317
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the consideration by employers of the consumer credit
1010 reports of employees and applicants for employment.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Chapter 52, Labor Code, is amended by adding
1313 Subchapter H to read as follows:
1414 SUBCHAPTER H. CONSIDERATION OF CREDIT REPORT BY EMPLOYER
1515 Sec. 52.081. DEFINITIONS. In this subchapter:
1616 (1) "Adverse employment action" means the denial of
1717 employment or a decision regarding the conditions of employment
1818 that adversely affects an employee or applicant.
1919 (2) "Applicant" means a person who has made an oral or
2020 written application with an employer, or has sent a resume or other
2121 correspondence to an employer, indicating an interest in
2222 employment.
2323 (3) "Consumer reporting agency" means any person that,
2424 for monetary fees or dues or on a cooperative nonprofit basis,
2525 regularly engages in the practice of assembling or evaluating
2626 credit information or other information on individuals for the
2727 purpose of furnishing credit reports to third parties.
2828 (4) "Credit report" means any written, oral, or other
2929 communication of information by a consumer reporting agency that
3030 bears on an individual's creditworthiness, credit standing, credit
3131 capacity, or debts.
3232 (5) "Employee" and "employer" have the meanings
3333 assigned by Section 21.002.
3434 Sec. 52.082. ADVERSE EMPLOYMENT ACTION BY EMPLOYER. An
3535 employer may take an adverse employment action against an employee
3636 or applicant that is based wholly or partly on the employee's or
3737 applicant's credit report only if:
3838 (1) the employer provided to the employee or applicant
3939 a copy of the credit report relied on by the employer together with
4040 written instructions regarding how the employee or applicant, not
4141 later than the second business day after the date the employee or
4242 applicant receives the credit report and instructions, may provide
4343 the employer with information explaining or otherwise addressing
4444 the information in the credit report; and
4545 (2) either:
4646 (A) the employee or applicant has not provided to
4747 the employer the information described by Subdivision (1) within
4848 the time prescribed by that subdivision; or
4949 (B) the employee or applicant provided to the
5050 employer the information described by Subdivision (1) within the
5151 time prescribed by that subdivision and the employer considered
5252 that information before taking the action.
5353 SECTION 2. This Act applies only to an adverse employment
5454 action that is taken by an employer against an employee or applicant
5555 for employment or other employer conduct that occurs on or after
5656 January 1, 2018. Action taken by an employer or other conduct that
5757 occurs before January 1, 2018, is governed by the law in effect
5858 immediately before the effective date of this Act, and the former
5959 law is continued in effect for that purpose.
6060 SECTION 3. This Act takes effect September 1, 2017.