Texas 2017 - 85th Regular

Texas House Bill HB334 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R1778 KKR-F
2	2	By: Collier H.B. No. 334
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the consideration by employers of the consumer credit
8	8	reports or other credit information of employees and applicants for
9	9	employment; providing civil and administrative penalties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 52, Labor Code, is amended by adding
12	12	Subchapter H to read as follows:
13	13	SUBCHAPTER H. CONSIDERATION OF CONSUMER CREDIT REPORTS
14	14	Sec. 52.081. DEFINITIONS. In this subchapter:
15	15	(1) "Applicant" means a person who has made an oral or
16	16	written application with an employer, or has sent a resume or other
17	17	correspondence to an employer, indicating an interest in
18	18	employment.
19	19	(2) "Commission" means the Texas Workforce
20	20	Commission.
21	21	(3) "Consumer" means an individual whose credit
22	22	information is used or whose credit score is computed.
23	23	(4) "Consumer reporting agency" means any person that,
24	24	for monetary fees or dues or on a cooperative nonprofit basis,
25	25	regularly engages in the practice of assembling or evaluating
26	26	consumer credit information or other information on consumers for
27	27	the purpose of furnishing consumer reports to third parties.
28	28	(5) "Credit information" means any credit-related
29	29	information derived from a credit report or found in a credit
30	30	report. The term does not include information that is not
31	31	credit-related, regardless of whether that information is
32	32	contained in a credit report.
33	33	(6) "Credit report" means any written, oral, or other
34	34	communication of information by a consumer reporting agency that
35	35	bears on a consumer's creditworthiness, credit standing, or credit
36	36	capacity.
37	37	(7) "Employee" and "employer" have the meanings
38	38	assigned by Section 21.002.
39	39	Sec. 52.082. RULES. The commission may adopt rules as
40	40	necessary to implement this subchapter.
41	41	Sec. 52.083. EFFECT ON OTHER LAW. This subchapter does not
42	42	limit or affect the rights, remedies, or procedures available to an
43	43	individual who alleges an unlawful employment practice prohibited
44	44	under federal law, another state law, or an order or ordinance of a
45	45	political subdivision of this state.
46	46	Sec. 52.084. PROHIBITED ACTS BY EMPLOYER. An employer may
47	47	not:
48	48	(1) directly or indirectly require, request, suggest,
49	49	or cause an employee or applicant, as a condition of employment, to:
50	50	(A) submit a credit report or other credit
51	51	information; or
52	52	(B) authorize the employer's access to the
53	53	employee's or applicant's credit report or other credit
54	54	information;
55	55	(2) use, accept, refer to, or inquire concerning the
56	56	employee's or applicant's credit report or other credit
57	57	information; or
58	58	(3) discharge, discipline, discriminate against, or
59	59	deny employment or promotion to an employee or applicant:
60	60	(A) on the basis of the employee's or applicant's
61	61	credit report or other credit information; or
62	62	(B) because the employee or applicant:
63	63	(i) refuses, declines, or fails to submit a
64	64	credit report or other credit information; or
65	65	(ii) refuses, declines, or fails to
66	66	authorize the employer access to the employee's or applicant's
67	67	credit report or other credit information.
68	68	Sec. 52.085. RETALIATION AND COERCION PROHIBITED. (a) An
69	69	employer may not discriminate against an employee or applicant
70	70	because the individual:
71	71	(1) opposes any act or practice prohibited by this
72	72	subchapter;
73	73	(2) makes or files a charge in connection with an act
74	74	or practice prohibited by this subchapter; or
75	75	(3) assists, testifies, or participates in any manner
76	76	in an investigation, proceeding, or hearing conducted under this
77	77	subchapter.
78	78	(b) An employer may not coerce, intimidate, threaten, or
79	79	interfere with an employee or applicant in the exercise or
80	80	enjoyment of, or because the employee or applicant for employment
81	81	has exercised, enjoyed, assisted, or encouraged the exercise or
82	82	enjoyment of, a right granted or protected by this subchapter.
83	83	Sec. 52.086. ADMINISTRATIVE PENALTY. (a) An employer
84	84	commits an administrative violation if the employer violates this
85	85	subchapter.
86	86	(b) The penalty for a violation under this section may not
87	87	exceed $9,000. In assessing a penalty under this section, the
88	88	commission shall consider:
89	89	(1) prior violations of this subchapter by the
90	90	employer;
91	91	(2) the severity of the violation; and
92	92	(3) any other factor the commission determines to be
93	93	relevant.
94	94	Sec. 52.087. CIVIL ACTION BY EMPLOYEE OR APPLICANT. (a) An
95	95	employee or applicant aggrieved by a violation of this subchapter
96	96	may bring a civil action to enforce rights protected by this
97	97	subchapter, including an action for appropriate injunctive relief,
98	98	in the district court in the county in which the alleged violation
99	99	occurred or in which the alleged violator's residence or principal
100	100	place of business is located.
101	101	(b) An action under this section must be brought not later
102	102	than the third anniversary of the date of the violation.
103	103	(c) The employer of an employee or applicant who prevails in
104	104	a civil action under this section is liable to the affected employee
105	105	or applicant for damages equal to the amount of any wages, salary,
106	106	employment benefits, or other compensation denied or lost to the
107	107	employee or applicant by reason of the violation or, if wages,
108	108	salary, employment benefits, or other compensation has not been
109	109	denied or lost, any actual monetary losses sustained by the
110	110	employee or applicant as a direct result of the violation.
111	111	(d) An employer described by Subsection (c) is also liable
112	112	for equitable relief as appropriate, including employment,
113	113	reinstatement, and promotion.
114	114	(e) In addition to any judgment awarded to an employee or
115	115	applicant, the court may require the employer to pay reasonable
116	116	attorney's fees, reasonable expert witness fees, and other costs.
117	117	Sec. 52.088. CIVIL ACTION BY COMMISSION. (a) The
118	118	commission may bring an action to restrain violations of this
119	119	subchapter.
120	120	(b) In an action brought under this section, the court may:
121	121	(1) issue a temporary or permanent restraining order
122	122	or injunction to require compliance with this subchapter; and
123	123	(2) order any equitable relief as appropriate,
124	124	including employment, reinstatement, and promotion.
125	125	Sec. 52.089. NONAPPLICABILITY. (a) This subchapter does
126	126	not apply to:
127	127	(1) an employee in or an applicant for:
128	128	(A) a position for which disclosure or
129	129	consideration of a credit report or other credit information is
130	130	required by law or by a self-regulated industry organization;
131	131	(B) a position as a peace officer as defined by
132	132	Article 2.12, Code of Criminal Procedure;
133	133	(C) a position that requires a surety or other
134	134	type of bond;
135	135	(D) a position that requires federal or state
136	136	security clearance;
137	137	(E) a position that is nonclerical and that has
138	138	regular access to trade secrets, intelligence information, or
139	139	national security information;
140	140	(F) a managerial position which involves setting
141	141	the direction or control of a business or a division, unit or agency
142	142	of a business, and that has financial responsibility over an
143	143	employer's funds or assets worth at least $10,000; or
144	144	(G) a managerial position that:
145	145	(i) involves setting the direction or
146	146	control of a business or a division, unit or agency of a business,
147	147	and that involves digital security systems, including controlling
148	148	access to all parts of an employer's computer system; and
149	149	(ii) does not include all members in an
150	150	employer's information technology department or a person who has
151	151	access to a computer system or network available to employees
152	152	generally; or
153	153	(2) an employer engaged in financial services.
154	154	(b) The exemptions provided by Subsection (a)(1) apply only
155	155	to the specific position that an employee is in or for which an
156	156	applicant applies and not the employee or the applicant generally.
157	157	An employer or industry as a whole is not exempt from the
158	158	requirements of this subchapter.
159	159	(c) For purposes of this section:
160	160	(1) "Employer engaged in financial services" means:
161	161	(A) a bank, savings and loan association or
162	162	savings bank, credit union, or other depository institution or its
163	163	subsidiaries or affiliates;
164	164	(B) a mortgage banker or residential mortgage
165	165	loan company;
166	166	(C) a securities firm or registered financial
167	167	advisory firm;
168	168	(D) a regulated loan company; or
169	169	(E) an insurance company or insurance agency.
170	170	(2) "Trade secret" means:
171	171	(A) confidential or proprietary business
172	172	information; or
173	173	(B) information, including a formula, pattern,
174	174	compilation, program, device, method, technique, or process that:
175	175	(i) derives independent economic value,
176	176	actual or potential, from not being generally known to, and not
177	177	being readily ascertainable by proper means by, other persons who
178	178	could obtain economic value from the disclosure or use of the
179	179	information; and
180	180	(ii) is the subject of efforts that are
181	181	reasonable under the circumstances to maintain its secrecy.
182	182	SECTION 2. This Act applies only to an adverse employment
183	183	action that is taken by an employer against an employee or applicant
184	184	for employment or other employer conduct that occurs on or after
185	185	January 1, 2018. Action taken by an employer or other conduct that
186	186	occurs before January 1, 2018, is governed by the law in effect
187	187	immediately before the effective date of this Act, and the former
188	188	law is continued in effect for that purpose.
189	189	SECTION 3. This Act takes effect September 1, 2017.