§ 380-b. Permissible dissemination of reports.
(a)A consumer\nreporting agency may furnish a consumer report under the following\ncircumstances and no other:\n (1) In response to the order of a court having jurisdiction to issue\nsuch an order, or\n (2) In accordance with the written instructions of the consumer to\nwhom it relates, or\n * (3) To a person whom it has reason to believe intends to use the\ninformation (i) in connection with a credit transaction involving the\nconsumer on whom the information is to be furnished and involving the\nextension of credit to, or review or collection of an account of, the\nconsumer, or (ii) for employment purposes, or (iii) in connection with\nthe underwriting of insurance involving the consumer, or (iv) in\nconnection with a determination of
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§ 380-b. Permissible dissemination of reports. (a) A consumer\nreporting agency may furnish a consumer report under the following\ncircumstances and no other:\n (1) In response to the order of a court having jurisdiction to issue\nsuch an order, or\n (2) In accordance with the written instructions of the consumer to\nwhom it relates, or\n * (3) To a person whom it has reason to believe intends to use the\ninformation (i) in connection with a credit transaction involving the\nconsumer on whom the information is to be furnished and involving the\nextension of credit to, or review or collection of an account of, the\nconsumer, or (ii) for employment purposes, or (iii) in connection with\nthe underwriting of insurance involving the consumer, or (iv) in\nconnection with a determination of the consumer's eligibility for a\nlicense or other benefit granted by a governmental instrumentality\nrequired by law to consider an applicant's financial responsibility or\nstatus, or (v) to a person in connection with a business transaction\ninvolving the consumer where the user has a legitimate business need for\nsuch information, or (vi) in connection with the rental or lease of a\nresidence.\n * NB Effective until April 18, 2026\n * (3) To a person whom it has reason to believe intends to use the\ninformation (i) in connection with a credit transaction involving the\nconsumer on whom the information is to be furnished and involving the\nextension of credit to, or review or collection of an account of, the\nconsumer, or (ii) for employment purposes, except that a consumer report\nmay be furnished for such purposes only if such report excludes\ninformation that bears on a consumer's credit worthiness, credit\nstanding, credit capacity or credit history and is based on the\nconsumer's financial transactions, except that such information is\npermitted to be disseminated to employers or persons set forth in\nparagraph two of subdivision (d) of this section, or (iii) in connection\nwith the underwriting of insurance involving the consumer, or (iv) in\nconnection with a determination of the consumer's eligibility for a\nlicense or other benefit granted by a governmental instrumentality\nrequired by law to consider an applicant's financial responsibility or\nstatus, or (v) to a person in connection with a business transaction\ninvolving the consumer where the user has a legitimate business need for\nsuch information, or (vi) in connection with the rental or lease of a\nresidence.\n * NB Effective April 18, 2026\n (b) No person shall request a consumer report, other than an\ninvestigative consumer report, in connection with an application made\nafter the effective date of this article, for credit, employment,\ninsurance, or rental or lease of residences, unless the applicant is\nfirst informed in writing or in the same manner in which the application\nis made that (i) a consumer report may be requested in connection with\nsuch application, and (ii) the applicant upon request will be informed\nwhether or not a consumer report was requested, and if such report was\nrequested, informed of the name and address of the consumer reporting\nagency that furnished the report.\n (c) Where the notice provided pursuant to subdivision (b) of this\nsection further indicates that subsequent consumer reports, other than\ninvestigative consumer reports, may be requested or utilized in\nconnection with an update, renewal, or extension of the credit,\nemployment, insurance, or rental or lease of residences for which\napplication was made, no additional notice to the consumer shall be\nrequired at the time such subsequent report is requested.\n * (d) The notice requirements of this section shall not be applicable\nto the update, renewal, or extension of credit, employment, insurance,\nor rental or lease of residences for which initial application was made\nprior to the effective date of this article.\n * NB Effective until April 18, 2026\n * (d) (1) Except as provided in this subdivision, it shall be an\nunlawful discriminatory practice for an employer, labor organization,\nemployment agency or any agent thereof to request or to use for\nemployment purposes the consumer credit history of an applicant for\nemployment or employee, or otherwise discriminate against an applicant\nor employee with regard to hiring, compensation, or the terms,\nconditions or privileges of employment based on the consumer credit\nhistory of the applicant or employee.\n (2) Paragraph one of this subdivision shall not apply to:\n (i) an employer, or agent thereof, that is required by state or\nfederal law or by a self-regulatory organization as defined in section\n3(a)(26) of the securities exchange act of 1934, as amended to use an\nindividual's consumer credit history for employment purposes;\n (ii) persons applying for positions as or employed as peace officers\nor police officers, as such terms are defined in subdivisions\nthirty-three and thirty-four of section 1.20 of the criminal procedure\nlaw, respectively, or in a position with a law enforcement or\ninvestigative function in a law enforcement agency;\n (iii) persons in a position that is subject to background\ninvestigation by a state agency, provided, however, that the appointing\nagency may not use consumer credit history information for employment\npurposes unless the position is an appointed position in which a high\ndegree of public trust, as defined by the commission in rules, has been\nreposed.\n (iv) persons in a position in which an employee is required to be\nbonded under state or federal law;\n (v) persons in a position in which an employee is required to possess\nsecurity clearance under federal law or the law of any state;\n (vi) persons in a non-clerical position having regular access to trade\nsecrets, intelligence information or national security information;\n (vii) persons in a position: (A) having signatory authority over third\nparty funds or assets valued at ten thousand dollars or more; or (B)\nthat involves a fiduciary responsibility to the employer with the\nauthority to enter financial agreements valued at ten thousand dollars\nor more on behalf of the employer; or\n (viii) persons in a position with regular duties that allow the\nemployee to modify digital security systems established to prevent the\nunauthorized use of the employer's or client's networks or databases.\n (3) As used in this subdivision the following terms shall have the\nfollowing meanings:\n (i) "intelligence information" means records and data compiled for the\npurpose of criminal investigation or counterterrorism, including records\nand data relating to the order or security of a correctional facility,\nreports of informants, investigators or other persons, or from any type\nof surveillance associated with an identifiable individual, or\ninvestigation or analysis of potential terrorist threats;\n (ii) "national security information" means any knowledge relating to\nthe national defense or foreign relations of the United States,\nregardless of its physical form or characteristics, that is owned by,\nproduced by or for, or is under the control of the United States\ngovernment and is defined as such by the United States government and\nits agencies and departments; and\n (iii) "trade secrets" means information that: (A) derives independent\neconomic value, actual or potential, from not being generally known to,\nand not being readily ascertainable by proper means by other persons who\ncan obtain economic value from its disclosure or use; (B) is the subject\nof efforts that are reasonable under the circumstances to maintain its\nsecrecy; and (C) can reasonably be said to be the end product of\nsignificant innovation. The term "trade secrets" does not include\ngeneral proprietary company information such as handbooks and policies.\nThe term "regular access to trade secrets" does not include access to or\nthe use of client, customer or mailing lists.\n (4) Nothing in this subdivision shall preclude an employer from\nrequesting or receiving consumer credit history information pursuant to\na lawful subpoena, court order or law enforcement investigation.\n (5) Paragraph one of this subdivision shall not be construed to affect\nthe obligations of persons required by state or local law relating to\ndisclosures by public employees of conflicts of interest.\n * NB Effective April 18, 2026\n * (e) (1) Except as otherwise provided in this subdivision, it shall\nbe an unlawful discriminatory practice for any state or municipal agency\nto request or use for licensing or permitting purposes information\ncontained in the consumer credit history of an applicant, licensee or\npermittee for licensing or permitting purposes.\n (2) Paragraph one of this subdivision shall not apply to an agency\nrequired by state or federal law to use an individual's consumer credit\nhistory for licensing or permitting purposes.\n (3) Paragraph one of this subdivision shall not be construed to affect\nthe ability of an agency to consider an applicant's, licensee's,\nregistrant's or permittee's failure to pay any tax, fine, penalty or fee\nfor which liability has been admitted by the person liable therefor, or\nfor which judgment has been entered by a court or administrative\ntribunal of competent jurisdiction, or any tax for which a government\nagency has issued a warrant, or a lien or levy on property.\n (4) Nothing in this subdivision shall preclude a licensing agency from\nrequesting, receiving, or using consumer credit history information\nobtained pursuant to a lawful subpoena, court order or specific law\nenforcement investigation.\n * NB Effective April 18, 2026\n * (f) This section does not annul, alter, affect or exempt any\nemployer, labor organization, employment agency or any agent thereof\nsubject to the provisions of this section from complying with any local\nlaw, ordinance or regulation with respect to the use of consumer credit\nhistory for employment purposes except to the extent that those laws are\ninconsistent with any provision of this section, and then only to the\nextent of such inconsistency. For purposes of this subdivision, a local\nlaw, ordinance or regulation is not inconsistent with this section if\nthe protection such law or regulation affords an employee or job\napplicant is greater than the protection provided by this section.\n * NB Effective April 18, 2026\n * (g) The notice requirements of this section shall not be applicable\nto the update, renewal, or extension of credit, employment, insurance,\nor rental or lease of residences for which initial application was made\nprior to the effective date of this article.\n * NB Effective April 18, 2026\n