LRBs0466/1
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2009 - 2010 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2009 ASSEMBLY BILL 367
April 21, 2010 - Offered by Representatives Hixson and Staskunas.
AB367-ASA1,1,3 1An Act to amend 111.31 (1), 111.31 (2), 111.31 (3) and 111.321; and to create
2111.32 (3g) and 111.333 of the statutes; relating to: employment
3discrimination based on credit history and providing a penalty.
Analysis by the Legislative Reference Bureau
Current law prohibits discrimination in employment on the basis of age, race,
creed, color, disability, marital status, sex, national origin, ancestry, sexual
orientation, arrest record, conviction record, military service, or use or nonuse of a
lawful product off the employer's premises during nonworking hours. Current law
also specifies that employment discrimination because of arrest record includes
requesting an individual to supply information regarding any arrest record, except
when employment depends on the bondability of the individual, and that
employment discrimination because of conviction record does not include refusing to
employ an individual who has been convicted of an offense the circumstances of
which substantially relate to the circumstances of the particular job or who is not
bondable when employment depends on the bondability of the individual.
This substitute amendment prohibits employment discrimination based on
credit history. The substitute amendment specifies, however, that it is not
employment discrimination because of credit history to refuse to employ, admit, or
license, or to bar or terminate from employment, membership, or licensing, any
individual based on the circumstances of the individual's credit history if: 1) those

circumstances are substantially related to the circumstances of the particular job;
2) the individual is not bondable when bondability is required by state or federal law,
administrative regulation, or established business practice of the employer; 3) the
individual is employed, or seeks employment, as an officer or director of a
corporation, a member or manager of a limited liability company, or a partner of a
partnership or a joint venture; in an executive capacity; or in a capacity in which the
individual has the authority to hire or terminate an individual or in which the
individual is authorized to have access to confidential personnel records; or 4) the
individual is employed, or seeks employment, in a position in which the individual
is authorized to have access to any financial account information of a customer or
employee of the employer and the circumstances of the individual's credit history
indicate gross negligence or mismanagement of the individual's personal or
professional finances, except that this exception does not apply if the individual is
employed, or seeks employment in a position in which the only financial account
information of such a customer or employee to which the individual is authorized to
have access is the credit or debit card number of the customer or employee.
Under the substitute amendment, "credit history" means credit account
information bearing on an individual's creditworthiness, credit standing, or credit
capacity that is provided in a consumer report under the federal Fair Credit
Reporting Act (FCRA), which defines "consumer report" as any written, oral, or other
communication by a consumer reporting agency bearing on an individual's
creditworthiness, credit standing, credit capacity, character, general reputation,
personal characteristics, or mode of living, which is used or expected to be used as
a factor in establishing the individual's eligibility for credit, insurance, employment,
or any other purpose allowed under federal law. The FCRA further defines
"consumer reporting agency" as any person who, for monetary fees, dues, or on a
cooperative nonprofit basis, regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other information on
individuals for the purpose of furnishing consumer reports to third parties, and who
uses any means or facility of interstate commerce for the purpose of preparing or
furnishing consumer reports.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB367-ASA1, s. 1 1Section 1. 111.31 (1) of the statutes is amended to read:
AB367-ASA1,3,92 111.31 (1) The legislature finds that the practice of unfair discrimination in
3employment against properly qualified individuals by reason of their age, race,
4creed, color, disability, marital status, sex, national origin, ancestry, sexual
5orientation, arrest record, conviction record, credit history, military service, or use

1or nonuse of lawful products off the employer's premises during nonworking hours
2substantially and adversely affects the general welfare of the state. Employers,
3labor organizations, employment agencies, and licensing agencies that deny
4employment opportunities and discriminate in employment against properly
5qualified individuals solely because of their age, race, creed, color, disability, marital
6status, sex, national origin, ancestry, sexual orientation, arrest record, conviction
7record, credit history, military service, or use or nonuse of lawful products off the
8employer's premises during nonworking hours deprive those individuals of the
9earnings that are necessary to maintain a just and decent standard of living.
AB367-ASA1, s. 2 10Section 2. 111.31 (2) of the statutes is amended to read:
AB367-ASA1,3,2211 111.31 (2) It is the intent of the legislature to protect by law the rights of all
12individuals to obtain gainful employment and to enjoy privileges free from
13employment discrimination because of age, race, creed, color, disability, marital
14status, sex, national origin, ancestry, sexual orientation, arrest record, conviction
15record, credit history, military service, or use or nonuse of lawful products off the
16employer's premises during nonworking hours, and to encourage the full,
17nondiscriminatory utilization of the productive resources of the state to the benefit
18of the state, the family, and all the people of the state. It is the intent of the legislature
19in promulgating this subchapter to encourage employers to evaluate an employee or
20applicant for employment based upon the employee's or applicant's individual
21qualifications of the employee or applicant rather than upon a particular class to
22which the individual may belong.
AB367-ASA1, s. 3 23Section 3. 111.31 (3) of the statutes is amended to read:
AB367-ASA1,4,724 111.31 (3) In the interpretation and application of this subchapter, and
25otherwise, it is declared to be the public policy of the state to encourage and foster

1to the fullest extent practicable the employment of all properly qualified individuals
2regardless of age, race, creed, color, disability, marital status, sex, national origin,
3ancestry, sexual orientation, arrest record, conviction record, credit history, military
4service, or use or nonuse of lawful products off the employer's premises during
5nonworking hours. Nothing in this subsection requires an affirmative action
6program to correct an imbalance in the work force. This subchapter shall be liberally
7construed for the accomplishment of this purpose.
AB367-ASA1, s. 4 8Section 4. 111.32 (3g) of the statutes is created to read:
AB367-ASA1,4,119 111.32 (3g) "Credit history" means credit account information bearing on an
10individual's creditworthiness, credit standing, or credit capacity that is provided in
11a consumer report, as defined in 15 USC 1681a (d).
AB367-ASA1, s. 5 12Section 5. 111.321 of the statutes is amended to read:
AB367-ASA1,4,19 13111.321 Prohibited bases of discrimination. Subject to ss. 111.33 to 111.36,
14no employer, labor organization, employment agency, licensing agency, or other
15person may engage in any act of employment discrimination as specified in s. 111.322
16against any individual on the basis of age, race, creed, color, disability, marital
17status, sex, national origin, ancestry, arrest record, conviction record, credit history,
18military service, or use or nonuse of lawful products off the employer's premises
19during nonworking hours.
AB367-ASA1, s. 6 20Section 6. 111.333 of the statutes is created to read:
AB367-ASA1,4,24 21111.333 Credit history; exceptions and special cases. Notwithstanding
22s. 111.322, it is not employment discrimination because of credit history to refuse to
23employ, admit, or license, or to bar or terminate from employment, membership, or
24licensing, any individual if any of the following applies:
AB367-ASA1,5,2
1(1) The circumstances of the individual's credit history are substantially
2related to the circumstances of the particular job or licensed activity.
AB367-ASA1,5,5 3(2) The individual is not bondable under a standard fidelity bond or an
4equivalent bond when that bondability is required by state or federal law,
5administrative regulation, or established business practice of the employer.
AB367-ASA1,5,11 6(3) The individual is employed, or seeks employment, as an officer or director
7of a corporation, a member or manager of a limited liability company, or a partner
8of a partnership or a joint venture; in an executive capacity; or in a capacity in which
9the individual has the authority to hire, or terminate the employment of, an
10individual or in which the individual is authorized to have access to confidential
11personnel records relating to the employees of the employer.
AB367-ASA1,5,23 12(4) Except as provided in this subsection, the individual is employed, or seeks
13employment, in a position in which the individual is authorized to have access to any
14financial account information of a customer or employee of the employer, including
15any financial account number, social security number, personal identification
16number, access code, security code, password, or any other information that would
17permit access to any financial account of such a customer or employee, and the
18circumstances of the individual's credit history indicate gross negligence or
19mismanagement of the individual's personal or professional finances. This exception
20does not apply to an individual who is employed, or who seeks employment, in a
21position in which the only financial account information of a customer or employee
22of the employer to which the individual is authorized to have access is the credit card
23number or debit card number of the customer or employee.
AB367-ASA1, s. 7 24Section 7. Initial applicability.
AB367-ASA1,6,4
1(1) This act first applies to an employee who is affected by a collective
2bargaining agreement that contains provisions inconsistent with this act on the day
3on which the collective bargaining agreement expires or is extended, modified, or
4renewed, whichever occurs first.
AB367-ASA1, s. 8 5Section 8. Effective date.
AB367-ASA1,6,66 (1) This act takes effect on July 1, 2011.
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