Texas 2019 - 86th Regular

Texas House Bill HB144 Compare Versions

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

Old	New	Differences
1	1	86R1086 KKR-F
2	2	By: Canales H.B. No. 144
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 of employees and applicants for employment.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 52, Labor Code, is amended by adding
11	11	Subchapter H to read as follows:
12	12	SUBCHAPTER H. CONSIDERATION OF CREDIT REPORT BY EMPLOYER
13	13	Sec. 52.081. DEFINITIONS. In this subchapter:
14	14	(1) "Adverse employment action" means the denial of
15	15	employment or a decision regarding the conditions of employment
16	16	that adversely affects an employee or applicant.
17	17	(2) "Applicant" means a person who has made an oral or
18	18	written application with an employer, or has sent a resume or other
19	19	correspondence to an employer, indicating an interest in
20	20	employment.
21	21	(3) "Consumer reporting agency" means any person that,
22	22	for monetary fees or dues or on a cooperative nonprofit basis,
23	23	regularly engages in the practice of assembling or evaluating
24	24	credit information or other information on individuals for the
25	25	purpose of furnishing credit reports to third parties.
26	26	(4) "Credit report" means any written, oral, or other
27	27	communication of information by a consumer reporting agency that
28	28	bears on an individual's creditworthiness, credit standing, credit
29	29	capacity, or debts.
30	30	(5) "Employee" and "employer" have the meanings
31	31	assigned by Section 21.002.
32	32	Sec. 52.082. ADVERSE EMPLOYMENT ACTION BY EMPLOYER. An
33	33	employer may not take an adverse employment action against an
34	34	employee or applicant that is based wholly or partly on the
35	35	employee's or applicant's credit report unless:
36	36	(1) the employer provided to the employee or applicant
37	37	a copy of the credit report relied on by the employer together with
38	38	written instructions regarding how the employee or applicant, not
39	39	later than the second business day after the date the employee or
40	40	applicant receives the credit report and instructions, may provide
41	41	the employer with information explaining or otherwise addressing
42	42	the information in the credit report; and
43	43	(2) either:
44	44	(A) the employee or applicant has not provided to
45	45	the employer the information described by Subdivision (1) within
46	46	the time prescribed by that subdivision; or
47	47	(B) the employee or applicant provided to the
48	48	employer the information described by Subdivision (1) within the
49	49	time prescribed by that subdivision and the employer considered
50	50	that information before taking the action.
51	51	SECTION 2. This Act applies only to an adverse employment
52	52	action that is taken by an employer against an employee or applicant
53	53	for employment or other employer conduct that occurs on or after
54	54	January 1, 2020. Action taken by an employer or other conduct that
55	55	occurs before January 1, 2020, is governed by the law in effect
56	56	immediately before the effective date of this Act, and the former
57	57	law is continued in effect for that purpose.
58	58	SECTION 3. This Act takes effect September 1, 2019.