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SENATE BILL No. 158

Citations Affected: IC 22-5-6.

Synopsis: Restriction of employer use of consumer reports. Prohibits an employer from using a consumer report for employment purposes unless certain conditions apply. Allows a consumer to bring a civil action against an employer for a violation of this provision. Makes it a Class B infraction for a knowing or intentional violation of this provision.

Effective: July 1, 2010.

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Taylor

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    January 11, 2010, read first time and referred to Committee on Corrections, Criminal, and Civil Matters.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning labor and safety.

SOURCE: IC 22-5-6; (10)IN0158.1.1. -->     SECTION 1. IC 22-5-6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]:
     Chapter 6. Use of Consumer Reports by Employers
    Sec. 1. As used in this chapter, "consumer" means an individual.
    Sec. 2. As used in this chapter, "consumer report" means any written, oral, or other communication of any information that:
        (1) is made by a consumer reporting agency (as defined in IC 27-2-21-6);
        (2) bears on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living; and
        (3) is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing a consumer's eligibility for employment purposes.
    Sec. 3. As used in this chapter, "employer" has the meaning set forth in IC 22-8-1.1-1.

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    Sec. 4. As used in this chapter, "employment purposes" means a consumer report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee.
     Sec. 5. Except as otherwise provided under state or federal law, an employer may not use a consumer report for employment purposes unless the following apply:
        (1) The information contained in the consumer report is substantially job related in that the position that the consumer holds or for which the consumer is applying is a position in which the consumer has, or would have, access to money, other assets, or confidential information.
        (2) The position of the consumer or the position for which the consumer is applying is one (1) or more of the following:
            (A) A managerial position.
            (B) A position with the office of the attorney general.
            (C) A position with a city, town, or county.
            (D) Any law enforcement position.
            (E) A position for which the information contained in the consumer report is required to be:
                (i) disclosed by law; or
                (ii) obtained by the employer under state or federal law.
    Sec. 6. (a) A consumer may bring a civil action against an employer that uses the consumer's consumer report in violation of section 5 of this chapter.
    (b) If an employer violates this chapter, the court may do the following:
        (1) Award:
            (A) damages;
            (B) a civil penalty; and
            (C) court costs and reasonable attorney's fees;
        to the prevailing consumer.
        (2) Enjoin further violation of this chapter.
    Sec. 7. An employer who knowingly and intentionally violates this chapter commits a Class B infraction. However, the offense is a Class A infraction if the employer has a prior unrelated conviction or judgment for an infraction under this section.