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A05359 Summary:

BILL NOA05359
 
SAME ASSAME AS S02132-B
 
SPONSORCruz
 
COSPNSR
 
MLTSPNSR
 
Amd §441, RP L
 
Increases the required training for real estate brokers and real estate salespeople relating to fair housing laws and housing discrimination.
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A05359 Actions:

BILL NOA05359
 
02/16/2021referred to judiciary
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A05359 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5359
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 16, 2021
                                       ___________
 
        Introduced  by  M. of A. CRUZ -- read once and referred to the Committee
          on Judiciary
 
        AN ACT to amend  the  real  property  law,  in  relation  to  increasing
          required  training for real estate brokers and real estate salespeople
          to prevent discrimination
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.   Subdivision 3 of section 441 of the real property law is
     2  amended by adding a new paragraph (e) to read as follows:
     3    (e) The secretary of state shall, upon notice and  a  public  hearing,
     4  promulgate  rules establishing the content of the instruction pertaining
     5  to fair housing and/or discrimination in the  sale  or  rental  of  real
     6  property  or  an  interest in real property required by paragraph (a) of
     7  this subdivision. Such instruction shall include, but not be limited to,
     8  courses on: (1)  the  legacy  of  segregation,  unequal  treatment,  and
     9  historic lack of access to opportunity in housing; (2) unequal access to
    10  amenities  and  resources  on  the  basis of race, disability, and other
    11  protected characteristics; (3) federal, state, and  local  fair  housing
    12  laws; and (4) anti-bias training.
    13    §  2.  Paragraphs  (b)  and (c) of subdivision 1 of section 441 of the
    14  real property law, as amended by chapter 183 of the laws  of  2006,  are
    15  amended and a new paragraph (d) is added to read as follows:
    16    (b)  Such further information as the department may reasonably require
    17  shall be furnished by the applicant including sufficient proof of having
    18  taken and passed a written examination and answered  such  questions  as
    19  may  be  prepared by the department to enable it to determine the trust-
    20  worthiness of the applicant if an individual, or of  each  member  of  a
    21  co-partnership  or  each  member  of a limited liability company or each
    22  officer of a corporation for whom a license as a broker  is  asked,  and
    23  his  or  their competency to transact the business of real estate broker
    24  in such a manner as to safeguard the interests of the public. In  deter-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06385-04-1

        A. 5359                             2
 
     1  mining  competency,  the  department shall require proof that the person
     2  being tested to qualify to apply for a broker's license has a fair know-
     3  ledge of the English language,  a  fair  understanding  of  the  general
     4  purposes and general legal effect of deeds, mortgages, land contracts of
     5  sale,  and  leases,  a general and fair understanding of the obligations
     6  between principal and agent, a general and  fair  understanding  of  the
     7  laws,  rules  and  regulations  pertaining to fair housing and discrimi-
     8  nation in the sale or rental of real property or  an  interest  in  real
     9  property,  as  well  as of the provisions of this section. The applicant
    10  must also furnish proof that he has attended for at  least  one  hundred
    11  [twenty]  fifty-two  hours  and has successfully completed a real estate
    12  course or courses approved by the secretary of state as  to  method  and
    13  content  and supervision which approval may be withdrawn if in the opin-
    14  ion of the secretary of state said  course  or  courses  are  not  being
    15  conducted  properly  as  to  method,  content  and supervision, and that
    16  either the applicant has  actively  participated  in  the  general  real
    17  estate  brokerage  business as a licensed real estate salesman under the
    18  supervision of a licensed real estate broker for a period  of  not  less
    19  than  two  years  or  has  had the equivalent experience in general real
    20  estate business for a period of at least  three  years,  the  nature  of
    21  which  experience  shall be established by affidavit duly sworn to under
    22  oath and/or other and further proof required by the department of state.
    23  Computer-based and distance-learning courses  may  be  approved  by  the
    24  department  so  long as providers demonstrate the ability to monitor and
    25  verify participation by the applicant for  the  specified  time  period.
    26  Notwithstanding  the  foregoing  authority to approve computer-based and
    27  distance-learning courses, the department may prescribe  that  specified
    28  subjects or hours must be presented in a classroom setting.
    29    (c) In the event the applicant shall be a licensed salesman under this
    30  article  and  shall  have  submitted  acceptable  proof  pursuant to the
    31  provisions of either paragraph (d) of subdivision one-A of this  section
    32  or paragraph (a) of subdivision three of this section of having attended
    33  and  successfully  completed  [seventy-five]  seventy-seven  hours of an
    34  approved real estate course or courses, six hours  of  which  have  been
    35  focused on fair housing and discrimination in the sale or rental of real
    36  property or an interest in real property, within eight years of the date
    37  of  the  application,  the department may accept and credit same against
    38  the one hundred [twenty] fifty-two hours required hereunder.
    39    (d) The one hundred fifty-two hours of an approved real estate  course
    40  or  courses  required by paragraph (b) of this subdivision shall include
    41  instruction on fair housing and discrimination in the sale or rental  of
    42  real  property or an interest in real property as described in paragraph
    43  (e) of subdivision three of this section and instruction on the licensed
    44  real estate broker's responsibility for ensuring that each licensed real
    45  estate salesman under such broker's supervision is  in  compliance  with
    46  his  or her obligations under applicable federal, state, and local laws,
    47  rules, and regulations pertaining to fair housing and discrimination  in
    48  the sale or rental of real property or an interest in real property.
    49    §  3.  Paragraphs (b) and (d) of subdivision 1-A of section 441 of the
    50  real property law, paragraph (b) as amended by chapter 81 of the laws of
    51  1995, and paragraph (d) as amended by chapter 183 of the laws  of  2006,
    52  are amended to read as follows:
    53    (b) Each applicant for a salesman's license shall provide such further
    54  information  as the department may reasonably require, appearing at such
    55  time and place as may be designated by the department, to take a written
    56  examination and answer such questions as may be prepared by the  depart-

        A. 5359                             3
 
     1  ment  to enable it to determine the trustworthiness of the applicant and
     2  the applicant's competence to  transact  the  business  of  real  estate
     3  salesman  in  such a manner as to safeguard the interests of the public,
     4  including the applicant's working knowledge of the basic concepts of law
     5  pertaining  to  contracts,  real property, agency and this article which
     6  govern conduct of such business, knowledge of  laws,  rules,  and  regu-
     7  lations  pertaining  to  fair  housing and discrimination in the sale or
     8  rental of real property or an interest  in  real  property,  mastery  of
     9  basic skills needed to perform the applicant's duties, working knowledge
    10  of  the  ethical obligations of a real estate salesman, and knowledge of
    11  the provisions of the general obligations law pertaining to  performance
    12  of the applicant's duties.
    13    (d)  Anything to the contrary herein notwithstanding, on and after the
    14  effective date of this paragraph, no salesman's license  or  conditional
    15  license  shall be issued by the department unless the application there-
    16  for has been accompanied by proof that prior  to  such  application  the
    17  applicant  has  attended at least [seventy-five] seventy-seven hours and
    18  successfully completed a real estate course or courses approved  by  the
    19  secretary  of  state  as  to  method  and content and supervision, which
    20  approval may be withdrawn if in the opinion of the  secretary  of  state
    21  said  course or courses are not properly conducted as to method, content
    22  and supervision. Computer-based and  distance-learning  courses  may  be
    23  approved  by the department so long as providers demonstrate the ability
    24  to monitor and verify participation by the applicant for  the  specified
    25  time  period.  Notwithstanding the foregoing authority to approve compu-
    26  ter-based and distance-learning courses, the  department  may  prescribe
    27  that  specified  subjects  or  hours  must  be  presented in a classroom
    28  setting.
    29    § 4. Paragraph (c) of subdivision 3 of section 441 of the real proper-
    30  ty law, as amended by chapter 470 of the laws of  1998,  is  amended  to
    31  read as follows:
    32    (c) (i) The secretary of state shall promulgate rules establishing the
    33  method,  content, setting and supervision requirements of the continuing
    34  education real estate course or courses provided for in this section. In
    35  establishing the requirements for the  continuing  education  course  or
    36  courses,  the  secretary of state shall permit alternatives with respect
    37  to content and method of presentation in consideration of  the  type  of
    38  brokerage  practiced  and the availability of the sources of such course
    39  or courses in different areas of the state. Each course  shall  have  an
    40  established  curriculum  composed  primarily of real estate practice and
    41  professional responsibility and ethics  and  properly  prepared  written
    42  materials  of  the  subject matter which shall be distributed as part of
    43  the course. It shall be taught by a  qualified  faculty  with  attorneys
    44  presenting  legal  subjects. Credit shall be awarded on the basis of one
    45  hour for each sixty minutes of actual attendance and  records  shall  be
    46  maintained  of  attendance at each session which shall be transmitted to
    47  the department at the  conclusion  of  the  course.  Computer-based  and
    48  distance  learning  courses may be approved by the department so long as
    49  providers demonstrate the ability to monitor and verify participation by
    50  the licensee for the specified time period.
    51    (ii) The secretary of state shall require approved faculty to  sign  a
    52  document  under  oath,  approved  by  and submitted to the department of
    53  state, attesting to compliance with all applicable statutory and regula-
    54  tory requirements pertaining  to  the  instruction  of  the  established
    55  curriculum. The secretary of state shall promulgate penalties for facul-
    56  ty  that  fail  to  meet the obligations required under this section and

        A. 5359                             4
 
     1  department of state regulations  including,  but  not  limited  to,  the
     2  temporary  suspension of their instructor certificate for the first such
     3  failure and the revocation  of  their  instructor  certificate  for  any
     4  subsequent failure.
     5    §  5.  This act shall take effect on the first of July next succeeding
     6  the date on which it shall have become a law.
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