BILL NUMBER: AB 943	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 3, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 9, 2009
	AMENDED IN SENATE  JULY 9, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Mendoza
   (Coauthors: Assembly Members Eng, Ma, and Portantino)

                        FEBRUARY 26, 2009

   An act to add Chapter 3.6 (commencing with Section 1024.5) to Part
2 of Division 2 of the Labor Code, relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 943, Mendoza. Employment: credit reports.
   The federal Fair Credit Reporting Act (FCRA) and the state
Consumer Credit Reporting Agencies Act define and regulate consumer
credit reports and authorize the use of consumer credit reports for
employment purposes, pursuant to specified requirements. The FCRA
provides that it does not preempt state law, except as specifically
provided or to the extent that state laws are inconsistent with its
provisions.
   Existing federal and state law specify the procedures that an
employer is required to follow before requesting a report and if
adverse action is taken based on the report. Under existing law, an
employer may request a credit report for employment purposes so long
as he or she provides written notice of the request to the person for
whom the report is sought. Existing law requires that the written
notice inform the person for whom the consumer credit report was
sought of the source of the report and contain space for the person
to request a copy of the report. Existing law further requires an
employer, whenever he or she bases an adverse employment decision on
information contained in a consumer credit report, to advise the
person for whom the report was sought that an adverse action was
taken based upon information contained in the report and provide the
person with the name and address of the consumer credit agency making
the report.
   This bill would prohibit an employer, with the exception of
certain financial institutions, from obtaining a consumer credit
report for employment purposes unless the information is (1)
substantially job-related, meaning that the position of the person
for whom the report is sought has access to money, other assets, or
confidential information, and (2) the position of the person for
which the person is sought is a position in the state Department of
Justice, a managerial position, a position in a city, county, or both
city and county, that of a sworn peace officer or other law
enforcement position, or a position for which the information
contained in the report is required to be disclosed by law or to be
obtained by the employer.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 3.6 (commencing with Section 1024.5) is added
to Part 2 of Division 2 of the Labor Code, to read:
      CHAPTER 3.6.  EMPLOYER USE OF CONSUMER CREDIT REPORTS


   1024.5.  (a) An employer shall not use a consumer credit report
for employment purposes unless the following criteria are satisfied:
   (1) The information contained in the report is substantially
job-related, meaning that the position of the person for whom the
report is sought has access to money, other assets, or confidential
information.
   (2) The position of the person for whom the report is sought is
any of the following:
   (A) A managerial position.
   (B) A position in the state Department of Justice.
   (C) A position in a city, county, or both city and county.
   (D) That of a sworn peace officer or other law enforcement
position.
   (E) A position for which the information contained in the report
is required to be disclosed by law or to be obtained by the employer.

   (b) This section does not apply to a person or business subject to
Sections 6801 to 6809, inclusive, of Title 15 of the United States
Code and state and federal statutes or regulations implementing those
sections if the person or business is subject to compliance
oversight by a state or federal regulatory agency with respect to
those laws.