NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A844A
SPONSOR: Jean-Pierre TITLE OF BILL:
An act to amend the real property law, in relation to requiring real
estate brokers to receive training in cultural competency
PURPOSE OR GENERAL IDEA OF BILL:
To ensure that real estate brokers receive adequate training in cultural
competency prior to obtaining broker licenses, as well as for renewal
licenses.
SUMMARY OF PROVISIONS:
Section 1 amends Section 441 of the real property law to provide that
the department of state shall require proof that a person being tested
to qualify for a broker's license has taken a class on cultural compe-
tency training.
Section 2 amends section 441 of the real property law, as amended by
chapter 320 of the laws of 2016, to require at least two hours of
cultural competency training, for a renewal license to be issued.
Section 3 amends section 441 of the real property law, as amended by
chapter 392 of the laws of 2019, to require at least two hours of
cultural competency training, for a renewal license to be issued.
Section 4 sets out the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
A recent investigation published by Newsday revealed compelling evidence
of widespread discrimination against potential homebuyers of color on
Long Island. Newsday employed testers to engage with real estate brokers
and salespersons, and it was revealed that forty percent of the tests
yielded results suggesting that brokers subjected minority testers to
disparate treatment compared to white testers.
Long Island has long been segregated with pockets of wealth and pockets
of poverty, and Newsday's investigation makes clear that certain brokers
and salespersons have been engaging in bad faith, discriminatory prac-
tices. This bill will attempt to begin addressing this issue by mandat-
ing comprehensive cultural competency training for anyone seeking to
obtain a broker license, as well as for those seeking to renew those
very same licenses.
PRIOR LEGISLATIVE HISTORY:
2019-20: A9933/S7851
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
On the one hundred twentieth day, provided, however, that if chapter 392
of the laws of 2019 shall not have taken effect on or before such date
then section three of this act shall take effect on the same date and in
the same manner as such chapter of the laws of 2019 takes effect.
STATE OF NEW YORK
________________________________________________________________________
844--A
2021-2022 Regular Sessions
IN ASSEMBLY(Prefiled)
January 6, 2021
___________
Introduced by M. of A. JEAN-PIERRE, RAMOS -- read once and referred to
the Committee on Judiciary -- reported and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the real property law, in relation to requiring real
estate brokers to receive training in cultural competency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 1 of section 441 of the real
2 property law, as amended by chapter 183 of the laws of 2006, is amended
3 to read as follows:
4 (b) Such further information as the department may reasonably require
5 shall be furnished by the applicant including sufficient proof of having
6 taken and passed a written examination and answered such questions as
7 may be prepared by the department to enable it to determine the trust-
8 worthiness of the applicant if an individual, or of each member of a
9 co-partnership or each member of a limited liability company or each
10 officer of a corporation for whom a license as a broker is asked, and
11 his, her or their competency to transact the business of real estate
12 broker in such a manner as to safeguard the interests of the public. In
13 determining competency, the department shall require proof that the
14 person being tested to qualify to apply for a broker's license has a
15 fair knowledge of the English language, a fair understanding of the
16 general purposes and general legal effect of deeds, mortgages, land
17 contracts of sale, and leases, a general and fair understanding of the
18 obligations between principal and agent, has taken a class on cultural
19 competency training, as well as of the provisions of this section. The
20 applicant must also furnish proof that he or she has attended for at
21 least one hundred twenty hours and has successfully completed a real
22 estate course or courses approved by the secretary of state as to method
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03801-02-1
A. 844--A 2
1 and content and supervision which approval may be withdrawn if in the
2 opinion of the secretary of state said course or courses are not being
3 conducted properly as to method, content and supervision, and that
4 either the applicant has actively participated in the general real
5 estate brokerage business as a licensed real estate salesman under the
6 supervision of a licensed real estate broker for a period of not less
7 than two years or has had the equivalent experience in general real
8 estate business for a period of at least three years, the nature of
9 which experience shall be established by affidavit duly sworn to under
10 oath and/or other and further proof required by the department of state.
11 Computer-based and distance-learning courses may be approved by the
12 department so long as providers demonstrate the ability to monitor and
13 verify participation by the applicant for the specified time period.
14 Notwithstanding the foregoing authority to approve computer-based and
15 distance-learning courses, the department may prescribe that specified
16 subjects or hours must be presented in a classroom setting.
17 § 2. Paragraph (a) of subdivision 3 of section 441 of the real proper-
18 ty law, as amended by chapter 320 of the laws of 2016, is amended to
19 read as follows:
20 (a) No renewal license shall be issued any licensee under this article
21 for any license period commencing November first, nineteen hundred nine-
22 ty-five unless such licensee shall have within the two year period imme-
23 diately preceding such renewal attended at least twenty-two and one-half
24 hours which shall include at least two hours of cultural competency
25 training, at least three hours of instruction pertaining to fair housing
26 and/or discrimination in the sale or rental of real property or an
27 interest in real property, at least one hour of instruction pertaining
28 to the law of agency except in the case of the initial two-year licens-
29 ing term for real estate salespersons, two hours of agency related
30 instruction must be completed, and successfully completed a continuing
31 education real estate course or courses approved by the secretary of
32 state as to method, content and supervision, which approval may be with-
33 drawn if in the opinion of the secretary of state such course or courses
34 are not being conducted properly as to method, content and supervision.
35 For those individuals licensed pursuant to subdivision six of section
36 four hundred forty-two-g of this article, in the individual's initial
37 license term, at least eleven hours of the required twenty-two and one-
38 half hours of continuing education shall be completed during the first
39 year of the term. Of those eleven hours, three hours shall pertain to
40 applicable New York state statutes and regulations governing the prac-
41 tice of real estate brokers and salespersons. To establish compliance
42 with the continuing education requirements imposed by this section,
43 licensees shall provide an affidavit, in a form acceptable to the
44 department of state, establishing the nature of the continuing education
45 acquired and shall provide such further proof as required by the depart-
46 ment of state. The provisions of this paragraph shall not apply to any
47 licensed real estate broker who is engaged full time in the real estate
48 business and who has been licensed under this article prior to July
49 first, two thousand eight for at least fifteen consecutive years imme-
50 diately preceding such renewal.
51 § 3. Paragraph (a) of subdivision 3 of section 441 of the real proper-
52 ty law, as amended by chapter 392 of the laws of 2019, is amended to
53 read as follows:
54 (a) No renewal license shall be issued any licensee under this article
55 for any license period commencing November first, nineteen hundred nine-
56 ty-five unless such licensee shall have within the two year period imme-
A. 844--A 3
1 diately preceding such renewal attended at least twenty-two and one-half
2 hours which shall include at least two hours of cultural competency
3 training, at least three hours of instruction pertaining to fair housing
4 and/or discrimination in the sale or rental of real property or an
5 interest in real property, at least two and one-half hours of instruc-
6 tion pertaining to ethical business practices, at least one hour of
7 instruction pertaining to recent legal matters governing the practice of
8 real estate brokers and salespersons in New York which may include stat-
9 utes, laws, regulations, rules, codes, department of state opinions and
10 decisions, and court decisions and at least one hour of instruction
11 pertaining to the law of agency except in the case of the initial two-
12 year licensing term for real estate salespersons, two hours of agency
13 related instruction must be completed, and successfully completed a
14 continuing education real estate course or courses approved by the
15 secretary of state as to method, content and supervision, which approval
16 may be withdrawn if in the opinion of the secretary of state such course
17 or courses are not being conducted properly as to method, content and
18 supervision. For those individuals licensed pursuant to subdivision six
19 of section four hundred forty-two-g of this article, in the individual's
20 initial license term, at least eleven hours of the required twenty-two
21 and one-half hours of continuing education shall be completed during the
22 first year of the term. Of those eleven hours, three hours shall pertain
23 to applicable New York state statutes and regulations governing the
24 practice of real estate brokers and salespersons. To establish compli-
25 ance with the continuing education requirements imposed by this section,
26 licensees shall provide an affidavit, in a form acceptable to the
27 department of state, establishing the nature of the continuing education
28 acquired and shall provide such further proof as required by the depart-
29 ment of state.
30 § 4. This act shall take effect on the one hundred twentieth day after
31 it shall have become a law; provided, however, that if chapter 392 of
32 the laws of 2019 shall not have taken effect on or before such date then
33 section three of this act shall take effect on the same date and in the
34 same manner as such chapter of the laws of 2019 takes effect.
