S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6789
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 20, 2019
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Judiciary
 
 AN ACT to amend the real property law, in relation to  licensing  tenant
   screening bureaus
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The real property law is amended by adding  a  new  section
 238-a to read as follows:
   §  238-A.  TENANT  SCREENING  BUREAUS;  LICENSING. 1. DEFINITIONS. FOR
 PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL  HAVE  THE  FOLLOWING
 MEANINGS:  (A) "FILE" WHEN USED IN CONNECTION WITH INFORMATION ABOUT ANY
 TENANT OR PROSPECTIVE TENANT MEANS ALL  OF  THE  INFORMATION  ABOUT  THE
 TENANT  OR  PROSPECTIVE TENANT THAT IS RECORDED AND RETAINED BY A TENANT
 SCREENING BUREAU, REGARDLESS OF HOW THE INFORMATION IS STORED.
   (B)  "RESIDENTIAL  PROCEEDING"  MEANS  A  JUDICIAL  OR  ADMINISTRATIVE
 PROCEEDING  THAT  IS  RELATED  TO RESIDENTIAL TENANCY, RENT OR EVICTION,
 REGARDLESS OF THE FORUM  IN  WHICH  SUCH  PROCEEDING  IS  INITIATED  AND
 REGARDLESS  OF  WHETHER  SUCH PROCEEDING IS INITIATED BY A LANDLORD OR A
 TENANT.
   (C) "TENANT SCREENING BUREAU" MEANS A PERSON THAT, FOR A FEE, REGULAR-
 LY ENGAGES IN THE BUSINESS OF ASSEMBLING OR EVALUATING INFORMATION ABOUT
 INDIVIDUALS FOR THE PURPOSE OF FURNISHING TENANT  SCREENING  REPORTS  TO
 THIRD  PARTIES WHERE SUCH REPORTS ARE USED OR ARE INTENDED TO BE USED IN
 CONNECTION WITH THE RENTAL OF RESIDENTIAL REAL PROPERTY LOCATED  IN  THE
 STATE. SUCH TERM SHALL NOT INCLUDE A PERSON WHO OBTAINS A TENANT SCREEN-
 ING  REPORT  AND  PROVIDES  SUCH REPORT OR INFORMATION CONTAINED IN SUCH
 REPORT TO A SUBSIDIARY OR AFFILIATE OF SUCH PERSON.
   (D) "TENANT SCREENING REPORT" MEANS ANY WRITTEN, ORAL OR OTHER  COMMU-
 NICATION  THAT  PURPORTS  TO  CONTAIN  INFORMATION  ABOUT  A RESIDENTIAL
 PROCEEDING INVOLVING TENANT OR PROSPECTIVE TENANT WHO IS THE SUBJECT  OF
 THE  REPORT  AND THAT IS USED OR EXPECTED TO BE USED IN WHOLE OR IN PART
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04898-01-9

 A. 6789                             2
 
 FOR THE PURPOSE OF SERVING AS A FACTOR IN DETERMINING A  TENANT'S  OR  A
 PROSPECTIVE TENANT'S SUITABILITY FOR HOUSING.
   2.  LICENSE REQUIRED. NO PERSON SHALL ACT AS A TENANT SCREENING BUREAU
 WITHOUT FIRST HAVING OBTAINED A LICENSE IN ACCORDANCE WITH THIS SECTION.
   3. LICENSE TERM; FEES. (A) A LICENSE PURSUANT TO THIS SECTION SHALL BE
 VALID FOR TWO YEARS UNLESS SOONER SUSPENDED OR REVOKED.
   (B) THE FEE FOR  A  LICENSE  OR  A  RENEWAL  THEREOF  IS  SEVENTY-FIVE
 DOLLARS.
   4. APPLICATION. (A) A PERSON APPLYING FOR A LICENSE OR A RENEWAL THER-
 EOF UNDER THIS SECTION SHALL FILE AN APPLICATION IN SUCH FORM AND DETAIL
 AS THE SECRETARY OF STATE SHALL PRESCRIBE AND SHALL PAY THE FEE REQUIRED
 BY THIS SECTION.
   (B)  THE  SECRETARY  OF STATE SHALL REQUIRE EACH PERSON APPLYING FOR A
 LICENSE UNDER THIS SECTION TO PROVIDE THE FOLLOWING INFORMATION:
   (I) THE NAME, ADDRESS, TELEPHONE NUMBER  AND  E-MAIL  ADDRESS  OF  THE
 APPLICANT;
   (II)  IF  THE  APPLICANT  IS  A  NONRESIDENT  OF  THE STATE, THE NAME,
 ADDRESS, TELEPHONE NUMBER AND E-MAIL ADDRESS OF A  REGISTERED  AGENT  IN
 THE  STATE  UPON  WHOM  PROCESS OR OTHER NOTIFICATION MAY BE SERVED OR A
 DESIGNATION OF THE SECRETARY OF STATE FOR SUCH PURPOSE; AND
   (III) ANY OTHER INFORMATION THE SECRETARY OF STATE DEEMS RELEVANT.
   5.  REQUIRED  AND  PROHIBITED  PRACTICES.  (A)  FOR  EACH  RESIDENTIAL
 PROCEEDING  THAT  IT  REFERS TO, A TENANT SCREENING REPORT SHALL INCLUDE
 ALL OF THE FOLLOWING INFORMATION:
   (I) THE NAMES OF ALL PETITIONERS IN THE RESIDENTIAL PROCEEDING;
   (II) THE NAMES OF ALL RESPONDENTS IN THE RESIDENTIAL PROCEEDING;
   (III) THE NAME AND ADDRESS OF THE FORUM WHERE THE RESIDENTIAL PROCEED-
 ING WAS FILED;
   (IV) THE CLAIMS ALLEGED IN THE PETITION;
   (V) IN THE CASE OF A HOLDOVER PROCEEDING, THE SPECIFIC CLAIM OR  ALLE-
 GATION MADE BY THE PETITIONER AS GROUNDS FOR THE PROCEEDING;
   (VI)  WHETHER  THE RENT FOR THE UNIT THAT WAS THE SUBJECT OF THE RESI-
 DENTIAL PROCEEDING WAS REGULATED BY LAW, AS ALLEGED IN THE PETITION;
   (VII) WHETHER THE  RESPONDENT  FILED  AN  ANSWER  IN  THE  RESIDENTIAL
 PROCEEDING  AND,  IF  SO,  THE  NATURE  OF ANY DEFENSES ASSERTED IN SUCH
 ANSWER;
   (VIII) THE OUTCOME, IF ANY, OF THE  RESIDENTIAL  PROCEEDING,  SUCH  AS
 WHETHER THE PROCEEDING WAS SETTLED, DISCONTINUED, DISMISSED OR WITHDRAWN
 OR  RESULTED  IN  A  POSSESSORY  JUDGMENT FOR LANDLORD OR TENANT OR IN A
 MONEY JUDGMENT FOR LANDLORD OR TENANT;
   (IX) IF A RENT CLAIM MADE IN THE RESIDENTIAL PROCEEDING WAS REDUCED OR
 ABATED, EITHER BY AGREEMENT OF THE PARTIES OR BY COURT ORDER, THE AMOUNT
 OF SUCH REDUCTION OR ABATEMENT;
   (X) THE DATE WHEN INFORMATION ABOUT THE RESIDENTIAL PROCEEDING WILL BE
 PERMANENTLY REMOVED FROM THE FILE OF THE SUBJECT OF SUCH PROCEEDING; AND
   (XI) THE MOST CURRENT STATUS OF THE RESIDENTIAL PROCEEDING.
   (B) NO TENANT SCREENING BUREAU MAY FURNISH A TENANT  SCREENING  REPORT
 CONTAINING ANY INFORMATION ABOUT A RESIDENTIAL PROCEEDING IF:
   (I)  SUCH  PROCEEDING IS THE SUBJECT OF AN EXPUNGEMENT ORDER ISSUED BY
 ANY COURT OF COMPETENT JURISDICTION;
   (II) SUCH REPORT DOES NOT CONTAIN ALL OF THE  INFORMATION  ABOUT  SUCH
 RESIDENTIAL PROCEEDING REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION; OR
   (III)  IF  SUCH REPORT CONTAINS INFORMATION THAT THE TENANT SCREENINGS
 BUREAU KNOW OR SHOULD KNOW IS INACCURATE.

 A. 6789                             3
 
   6. POWERS AND DUTIES OF THE SECRETARY OF STATE. (A) THE  SECRETARY  OF
 STATE  SHALL  PROMULGATE  SUCH  RULES  AS ARE NECESSARY TO IMPLEMENT AND
 ENFORCE THIS SECTION.
   (B)  THE  SECRETARY OF STATE HAS THE POWER TO ENFORCE THIS SECTION, TO
 INVESTIGATE ANY VIOLATION THEREOF,  AND  TO  INVESTIGATE  THE  BUSINESS,
 BUSINESS  PRACTICES  AND BUSINESS METHODS OF ANY TENANT SCREENING BUREAU
 IF  THE  SECRETARY  OF  STATE  DETERMINES  THAT  SUCH  INVESTIGATION  IS
 WARRANTED.  A TENANT SCREENING BUREAU THAT RECEIVES A REQUEST FOR INFOR-
 MATION FROM THE SECRETARY OF STATE SHALL SUPPLY THE  REQUESTED  INFORMA-
 TION PROMPTLY IN A MANNER PROVIDED BY RULE.
   (C)  THE SECRETARY OF STATE MAY COMPEL THE ATTENDANCE OF WITNESSES AND
 THE PRODUCTION OF DOCUMENTS.
   (D) THE SECRETARY OF STATE MAY SEEK TO  ENJOIN  A  VIOLATION  OF  THIS
 SECTION  AND  MAY SUSPEND THE ISSUANCE OF ANY TENANT SCREENING REPORT IN
 ORDER TO ENFORCE THIS SECTION.
   7. CIVIL PENALTIES. (A) A PERSON WHO, AFTER NOTICE AND A  HEARING,  IS
 FOUND  TO  HAVE  FURNISHED  ANOTHER  WITH A TENANT SCREENING REPORT THAT
 VIOLATES THIS SECTION IS SUBJECT TO A  CIVIL  PENALTY  OF  FIVE  HUNDRED
 DOLLARS FOR EACH SUCH TENANT SCREENING REPORT FURNISHED.
   (B)  A  PERSON WHO, AFTER NOTICE AND A HEARING, IS FOUND TO HAVE ACTED
 AS A TENANT SCREENING BUREAU WITHOUT A LICENSE IN VIOLATION OF  SUBDIVI-
 SION  TWO OF THIS SECTION IS SUBJECT TO A CIVIL PENALTY OF NOT LESS THAN
 ONE THOUSAND DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS.
   (C) IF A PERSON IS FOUND  TO  HAVE  COMMITTED  REPEATED,  MULTIPLE  OR
 PERSISTENT VIOLATIONS OF ANY PROVISIONS OF THIS SECTION, SUCH PERSON MAY
 BE  RESPONSIBLE FOR ALL OR PART OF THE COST OF THE DEPARTMENT OF STATE'S
 INVESTIGATION.
   (D) EACH PENALTY OR COST SPECIFIED IN THIS SECTION IS IN  ADDITION  TO
 ANY OTHER APPLICABLE PENALTY OR COST SPECIFIED IN THIS SECTION OR IN ANY
 OTHER LAW.
   8. PRIVATE RIGHT OF ACTION. (A) A TENANT OR PROSPECTIVE TENANT WHO HAS
 BEEN  INJURED  BY A VIOLATION OF THIS SECTION, EXCEPT A VIOLATION OF THE
 REQUIREMENT TO OBTAIN A LICENSE PURSUANT  TO  SUBDIVISION  TWO  OF  THIS
 SECTION, MAY INSTITUTE IN SUCH TENANT'S OR PROSPECTIVE TENANT'S OWN NAME
 (I) AN ACTION TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, (II) AN ACTION TO
 RECOVER  THE  GREATER  OF  SUCH  PERSON'S ACTUAL DAMAGES OR FIVE HUNDRED
 DOLLARS OR (III) BOTH SUCH ACTIONS.
   (B) IN AN ACTION FOR DAMAGES UNDER THIS SUBDIVISION, A COURT MAY AWARD
 PUNITIVE DAMAGES IF  SUCH  COURT  FINDS  THAT  THE  DEFENDANT  WILLFULLY
 VIOLATED THIS SECTION.
   (C)  IN ANY ACTION UNDER THIS SUBDIVISION, A COURT SHALL AWARD REASON-
 ABLE ATTORNEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   (D) THE ISSUANCE OF A TENANT SCREENING REPORT THAT THE TENANT  SCREEN-
 ING BUREAU KNEW OR SHOULD HAVE KNOWN CONTAINED INACCURATE INFORMATION OR
 OTHERWISE  VIOLATED  THIS  SECTION CONSTITUTES AN INJURY FOR PURPOSES OF
 THIS SUBDIVISION. THIS PARAGRAPH DOES NOT LIMIT THE TYPES OF OTHER INJU-
 RIES THAT ARE LEGALLY COGNIZABLE UNDER THIS SUBDIVISION.
   (E) A TENANT OR PROSPECTIVE TENANT WHO INSTITUTES AN  ACTION  PURSUANT
 TO  THIS SECTION SHALL PROVIDE NOTICE OF SUCH ACTION TO THE SECRETARY OF
 STATE. THE ATTORNEY GENERAL MAY INTERVENE IN ANY SUCH ACTION  ON  BEHALF
 OF THE STATE.
   (F)  IN  ANY ACTION BROUGHT BY A RESIDENT, FORMER RESIDENT OR PROSPEC-
 TIVE RESIDENT OF THE CITY  INVOLVING  THE  REPORTING  OF  A  RESIDENTIAL
 PROCEEDING,  A  PARTY  WHO  IS FOUND DURING THE COURSE OF SUCH ACTION TO
 HAVE VIOLATED SUBCHAPTER III OF CHAPTER 41 OF TITLE  15  OF  THE  UNITED
 STATE CODE OR ARTICLE TWENTY-FIVE OF THE GENERAL BUSINESS LAW SHALL FILE

 A. 6789                             4
 
 A  COPY  OF SUCH FINDING WITH THE COMMISSIONER WITHIN SIXTY DAYS OF SUCH
 FINDING.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.