BILL NUMBER: AB 943	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Mendoza

                        FEBRUARY 26, 2009

   An act to add Sections 12940.4 and 12940.5 to the Government Code,
relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 943, as introduced, Mendoza. Employment: credit reports.
   Under existing law, it is an unlawful employment practice for an
employer, because of the race, religious creed, color, national
origin, ancestry, physical disability, mental disability, medical
condition, marital status, sex, age, or sexual orientation of a
person, to refuse to hire or employ the person or to refuse to select
the person for a training program leading to employment, or to bar
or to discharge the person from employment or from a training program
leading to employment, or to discriminate against the person in
compensation or in terms, conditions, or privileges of employment.
Existing law, the federal Fair Credit Reporting Act, permits an
employer to obtain a credit report regarding a person if the employer
discloses to the person that a credit report may be obtained by the
employer and the person has authorized the procurement of the credit
report.
   This bill would prohibit an employer, unless based on a bona fide
occupational qualification, from refusing to hire or employ a person,
refusing to select a person for a training program leading to
employment, barring or discharging a person from employment or from a
training program leading to employment, discriminating against a
person in compensation or in terms, conditions, or privileges of
employment, or taking any other adverse employment action against a
person because the person does not authorize the employer to obtain a
credit report regarding the person. The bill would create a
rebuttable presumption of an unlawful employment practice when an
employer takes adverse employment action against a person within 60
days of the person denying authorization for the employer to obtain a
credit report regarding the person.
   This bill would also, commencing on July 1, 2011, require
employers to submit to the Department of Fair Employment and Housing
every 6 months a list of each applicant for employment and each
employee who has applied for a promotion during the 6-month period,
the race and gender of each applicant and employee specified, whether
a credit report was obtained regarding each applicant and employee
specified, and a list of all applicants offered employment and
employees offered promotion during the 6-month period. The bill would
then require the Department of Fair Employment and Housing,
commencing on March 1, 2012, to annually report to the Legislature
for the prior calendar year regarding the use of credit reports by
employers and provide an analysis of whether the use of consumer
credit reports has a disparate impact on employment of persons with
respect to race and gender.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 12940.4 is added to the Government Code, to
read:
   12940.4.  (a) An employer shall, commencing with the first
submission date of July 1, 2011, once per every six months, submit to
the Department of Fair Employment and Housing the following:
   (1) A list of each applicant for employment and each employee who
applied for a promotion during the six-month period.
   (2) The race and gender of each person listed pursuant to
paragraph (1).
   (3) Whether a consumer credit report was obtained regarding each
person listed pursuant to paragraph (1).
   (4) A list of all applicants offered employment and employees
offered a promotion during the six-month period.
   (b) Commencing on March 1, 2012, and not later than March 1 of
each year thereafter, the Department of Fair Employment and Housing
shall annually report to the Legislature for the prior calendar year
regarding the use of consumer credit reports by employers and provide
an analysis of whether the use of consumer credit reports has a
disparate impact on employment of persons with respect to race and
gender. The report shall include, but not be limited to, the
following:
   (1) The number of applicants for employment and employees who
applied for a promotion, categorized by race and gender.
   (2) The number of applicants for employment offered employment and
employees who applied for a promotion offered a promotion,
categorized by race and gender.
   (3) The number of applicants for employment and employees who
applied for a promotion for whom a consumer credit report was
obtained by the employer, categorized by race and gender.
   (4) The number of applicants for employment offered employment and
employees offered a promotion whose consumer credit reports were
obtained by the employer, categorized by race and gender.
   (c) For purposes of this section and Section 12940.5, "consumer
credit report" has the same meaning as provided in subdivision (c) of
Section 1785.3 of the Civil Code.
  SEC. 2.  Section 12940.5 is added to the Government Code, to read:
   12940.5.  (a) Unless based upon a bona fide occupational
qualification, an employer shall not refuse to hire or employ a
person, refuse to select a person for a training program leading to
employment, bar or discharge a person from employment or from a
training program leading to employment, discriminate against a person
in compensation or in terms, conditions, or privileges of
employment, or take any other adverse employment action against a
person because the person does not authorize the employer to obtain a
consumer credit report regarding the person.
   (b) A rebuttable presumption of a violation of subdivision (a) is
created when an employer takes adverse employment action against a
person within 60 days of the person having denied authorization for
the employer to obtain a consumer credit report regarding the person.