N.Y. General Business Law § 380-b: Permissible dissemination of reports

§ 380-b. Permissible dissemination of reports. (a) A consumer

reporting agency may furnish a consumer report under the following

circumstances and no other:

(1) In response to the order of a court having jurisdiction to issue

such an order, or

(2) In accordance with the written instructions of the consumer to

whom it relates, or

(3) To a person whom it has reason to believe intends to use the

information (i) in connection with a credit transaction involving the

consumer on whom the information is to be furnished and involving the

extension of credit to, or review or collection of an account of, the

consumer, or (ii) for employment purposes, except that a consumer report

may be furnished for such purposes only if such report excludes

information that bears on a consumer's credit worthiness, credit

standing, credit capacity or credit history and is based on the

consumer's financial transactions, except that such information is

permitted to be disseminated to employers or persons set forth in

paragraph two of subdivision (d) of this section, or (iii) in connection

with the underwriting of insurance involving the consumer, or (iv) in

connection with a determination of the consumer's eligibility for a

license or other benefit granted by a governmental instrumentality

required by law to consider an applicant's financial responsibility or

status, or (v) to a person in connection with a business transaction

involving the consumer where the user has a legitimate business need for

such information, or (vi) in connection with the rental or lease of a

residence.

(b) No person shall request a consumer report, other than an

investigative consumer report, in connection with an application made

after the effective date of this article, for credit, employment,

insurance, or rental or lease of residences, unless the applicant is

first informed in writing or in the same manner in which the application

is made that (i) a consumer report may be requested in connection with

such application, and (ii) the applicant upon request will be informed

whether or not a consumer report was requested, and if such report was

requested, informed of the name and address of the consumer reporting

agency that furnished the report.

(c) Where the notice provided pursuant to subdivision (b) of this

section further indicates that subsequent consumer reports, other than

investigative consumer reports, may be requested or utilized in

connection with an update, renewal, or extension of the credit,

employment, insurance, or rental or lease of residences for which

application was made, no additional notice to the consumer shall be

required at the time such subsequent report is requested.

(d) (1) Except as provided in this subdivision, it shall be an

unlawful discriminatory practice for an employer, labor organization,

employment agency or any agent thereof to request or to use for

employment purposes the consumer credit history of an applicant for

employment or employee, or otherwise discriminate against an applicant

or employee with regard to hiring, compensation, or the terms,

conditions or privileges of employment based on the consumer credit

history of the applicant or employee.

(2) Paragraph one of this subdivision shall not apply to:

(i) an employer, or agent thereof, that is required by state or

federal law or by a self-regulatory organization as defined in section

3(a)(26) of the securities exchange act of 1934, as amended to use an

individual's consumer credit history for employment purposes;

(ii) persons applying for positions as or employed as peace officers

or police officers, as such terms are defined in subdivisions

thirty-three and thirty-four of section 1.20 of the criminal procedure

law, respectively, or in a position with a law enforcement or

investigative function in a law enforcement agency;

(iii) persons in a position that is subject to background

investigation by a state agency;

(iv) persons in a position in which an employee is required to be

bonded under state or federal law;

(v) persons in a position in which an employee is required to possess

security clearance under federal law or the law of any state;

(vi) persons in a non-clerical position having regular access to trade

secrets, intelligence information or national security information;

(vii) persons in a position: (A) having signatory authority over third

party funds or assets valued at ten thousand dollars or more; or (B)

that involves a fiduciary responsibility to the employer with the

authority to enter financial agreements valued at ten thousand dollars

or more on behalf of the employer; or

(viii) persons in a position with regular duties that allow the

employee to modify digital security systems established to prevent the

unauthorized use of the employer's or client's networks or databases.

(3) As used in this subdivision the following terms shall have the

following meanings:

(i) "intelligence information" means records and data compiled for the

purpose of criminal investigation or counterterrorism, including records

and data relating to the order or security of a correctional facility,

reports of informants, investigators or other persons, or from any type

of surveillance associated with an identifiable individual, or

investigation or analysis of potential terrorist threats;

(ii) "national security information" means any knowledge relating to

the national defense or foreign relations of the United States,

regardless of its physical form or characteristics, that is owned by,

produced by or for, or is under the control of the United States

government and is defined as such by the United States government and

its agencies and departments; and

(iii) "trade secrets" means information that: (A) derives independent

economic value, actual or potential, from not being generally known to,

and not being readily ascertainable by proper means by other persons who

can obtain economic value from its disclosure or use; (B) is the subject

of efforts that are reasonable under the circumstances to maintain its

secrecy; and (C) can reasonably be said to be the end product of

significant innovation. The term "trade secrets" does not include

general proprietary company information such as handbooks and policies.

The term "regular access to trade secrets" does not include access to or

the use of client, customer or mailing lists.

(4) Nothing in this subdivision shall preclude an employer from

requesting or receiving consumer credit history information pursuant to

a lawful subpoena, court order or law enforcement investigation.

(5) Paragraph one of this subdivision shall not be construed to affect

the obligations of persons required by state or local law relating to

disclosures by public employees of conflicts of interest.

(e) (1) Except as otherwise provided in this subdivision, it shall be

an unlawful discriminatory practice for any state or municipal agency to

request or use for licensing or permitting purposes information

contained in the consumer credit history of an applicant, licensee or

permittee for licensing or permitting purposes.

(2) Paragraph one of this subdivision shall not apply to an agency

required by state or federal law to use an individual's consumer credit

history for licensing or permitting purposes.

(3) Paragraph one of this subdivision shall not be construed to affect

the ability of an agency to consider an applicant's, licensee's,

registrant's or permittee's failure to pay any tax, fine, penalty or fee

for which liability has been admitted by the person liable therefor, or

for which judgment has been entered by a court or administrative

tribunal of competent jurisdiction, or any tax for which a government

agency has issued a warrant, or a lien or levy on property.

(4) Nothing in this subdivision shall preclude a licensing agency from

requesting, receiving, or using consumer credit history information

obtained pursuant to a lawful subpoena, court order or specific law

enforcement investigation.

(f) This section does not annul, alter, affect or exempt any employer,

labor organization, employment agency or any agent thereof subject to

the provisions of this section from complying with any local law,

ordinance or regulation with respect to the use of consumer credit

history for employment purposes except to the extent that those laws are

inconsistent with any provision of this section, and then only to the

extent of such inconsistency. For purposes of this subdivision, a local

law, ordinance or regulation is not inconsistent with this section if

the protection such law or regulation affords an employee or job

applicant is greater than the protection provided by this section.

(g) The notice requirements of this section shall not be applicable to

the update, renewal, or extension of credit, employment, insurance, or

rental or lease of residences for which initial application was made

prior to the effective date of this article.