S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5359
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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:
 
   Section  1.   Subdivision 3 of section 441 of the real property law is
 amended by adding a new paragraph (e) to read as follows:
   (E) THE SECRETARY OF STATE SHALL, UPON NOTICE AND  A  PUBLIC  HEARING,
 PROMULGATE  RULES ESTABLISHING THE CONTENT OF THE INSTRUCTION PERTAINING
 TO FAIR HOUSING AND/OR DISCRIMINATION IN THE  SALE  OR  RENTAL  OF  REAL
 PROPERTY  OR  AN  INTEREST IN REAL PROPERTY REQUIRED BY PARAGRAPH (A) OF
 THIS SUBDIVISION. SUCH INSTRUCTION SHALL INCLUDE, BUT NOT BE LIMITED TO,
 COURSES ON: (1)  THE  LEGACY  OF  SEGREGATION,  UNEQUAL  TREATMENT,  AND
 HISTORIC LACK OF ACCESS TO OPPORTUNITY IN HOUSING; (2) UNEQUAL ACCESS TO
 AMENITIES  AND  RESOURCES  ON  THE  BASIS OF RACE, DISABILITY, AND OTHER
 PROTECTED CHARACTERISTICS; (3) FEDERAL, STATE, AND  LOCAL  FAIR  HOUSING
 LAWS; AND (4) ANTI-BIAS TRAINING.
   §  2.  Paragraphs  (b)  and (c) of subdivision 1 of section 441 of the
 real property law, as amended by chapter 183 of the laws  of  2006,  are
 amended and a new paragraph (d) is added to read as follows:
   (b)  Such further information as the department may reasonably require
 shall be furnished by the applicant including sufficient proof of having
 taken and passed a written examination and answered  such  questions  as
 may  be  prepared by the department to enable it to determine the trust-
 worthiness of the applicant if an individual, or of  each  member  of  a
 co-partnership  or  each  member  of a limited liability company or each
 officer of a corporation for whom a license as a broker  is  asked,  and
 his  or  their competency to transact the business of real estate broker
 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
 
 mining  competency,  the  department shall require proof that the person
 being tested to qualify to apply for a broker's license has a fair know-
 ledge of the English language,  a  fair  understanding  of  the  general
 purposes and general legal effect of deeds, mortgages, land contracts of
 sale,  and  leases,  a general and fair understanding of the obligations
 between principal and agent, A GENERAL AND  FAIR  UNDERSTANDING  OF  THE
 LAWS,  RULES  AND  REGULATIONS  PERTAINING TO FAIR HOUSING AND DISCRIMI-
 NATION IN THE SALE OR RENTAL OF REAL PROPERTY OR  AN  INTEREST  IN  REAL
 PROPERTY,  as  well  as of the provisions of this section. The applicant
 must also furnish proof that he has attended for at  least  one  hundred
 [twenty]  FIFTY-TWO  hours  and has successfully completed a real estate
 course or courses approved by the secretary of state as  to  method  and
 content  and supervision which approval may be withdrawn if in the opin-
 ion of the secretary of state said  course  or  courses  are  not  being
 conducted  properly  as  to  method,  content  and supervision, and that
 either the applicant has  actively  participated  in  the  general  real
 estate  brokerage  business as a licensed real estate salesman under the
 supervision of a licensed real estate broker for a period  of  not  less
 than  two  years  or  has  had the equivalent experience in general real
 estate business for a period of at least  three  years,  the  nature  of
 which  experience  shall be established by affidavit duly sworn to under
 oath and/or other and further proof required by the department of state.
 Computer-based and distance-learning courses  may  be  approved  by  the
 department  so  long as providers demonstrate the ability to monitor and
 verify participation by the applicant for  the  specified  time  period.
 Notwithstanding  the  foregoing  authority to approve computer-based and
 distance-learning courses, the department may prescribe  that  specified
 subjects or hours must be presented in a classroom setting.
   (c) In the event the applicant shall be a licensed salesman under this
 article  and  shall  have  submitted  acceptable  proof  pursuant to the
 provisions of either paragraph (d) of subdivision one-A of this  section
 or paragraph (a) of subdivision three of this section of having attended
 and  successfully  completed  [seventy-five]  SEVENTY-SEVEN  hours of an
 approved real estate course or courses, SIX HOURS  OF  WHICH  HAVE  BEEN
 FOCUSED ON FAIR HOUSING AND DISCRIMINATION IN THE SALE OR RENTAL OF REAL
 PROPERTY OR AN INTEREST IN REAL PROPERTY, within eight years of the date
 of  the  application,  the department may accept and credit same against
 the one hundred [twenty] FIFTY-TWO hours required hereunder.
   (D) THE ONE HUNDRED FIFTY-TWO HOURS OF AN APPROVED REAL ESTATE  COURSE
 OR  COURSES  REQUIRED BY PARAGRAPH (B) OF THIS SUBDIVISION SHALL INCLUDE
 INSTRUCTION ON FAIR HOUSING AND DISCRIMINATION IN THE SALE OR RENTAL  OF
 REAL  PROPERTY OR AN INTEREST IN REAL PROPERTY AS DESCRIBED IN PARAGRAPH
 (E) OF SUBDIVISION THREE OF THIS SECTION AND INSTRUCTION ON THE LICENSED
 REAL ESTATE BROKER'S RESPONSIBILITY FOR ENSURING THAT EACH LICENSED REAL
 ESTATE SALESMAN UNDER SUCH BROKER'S SUPERVISION IS  IN  COMPLIANCE  WITH
 HIS  OR HER OBLIGATIONS UNDER APPLICABLE FEDERAL, STATE, AND LOCAL LAWS,
 RULES, AND REGULATIONS PERTAINING TO FAIR HOUSING AND DISCRIMINATION  IN
 THE SALE OR RENTAL OF REAL PROPERTY OR AN INTEREST IN REAL PROPERTY.
   §  3.  Paragraphs (b) and (d) of subdivision 1-A of section 441 of the
 real property law, paragraph (b) as amended by chapter 81 of the laws of
 1995, and paragraph (d) as amended by chapter 183 of the laws  of  2006,
 are amended to read as follows:
   (b) Each applicant for a salesman's license shall provide such further
 information  as the department may reasonably require, appearing at such
 time and place as may be designated by the department, to take a written
 examination and answer such questions as may be prepared by the  depart-

 A. 5359                             3
 
 ment  to enable it to determine the trustworthiness of the applicant and
 the applicant's competence to  transact  the  business  of  real  estate
 salesman  in  such a manner as to safeguard the interests of the public,
 including the applicant's working knowledge of the basic concepts of law
 pertaining  to  contracts,  real property, agency and this article which
 govern conduct of such business, KNOWLEDGE OF  LAWS,  RULES,  AND  REGU-
 LATIONS  PERTAINING  TO  FAIR  HOUSING AND DISCRIMINATION IN THE SALE OR
 RENTAL OF REAL PROPERTY OR AN INTEREST  IN  REAL  PROPERTY,  mastery  of
 basic skills needed to perform the applicant's duties, working knowledge
 of  the  ethical obligations of a real estate salesman, and knowledge of
 the provisions of the general obligations law pertaining to  performance
 of the applicant's duties.
   (d)  Anything to the contrary herein notwithstanding, on and after the
 effective date of this paragraph, no salesman's license  or  conditional
 license  shall be issued by the department unless the application there-
 for has been accompanied by proof that prior  to  such  application  the
 applicant  has  attended at least [seventy-five] SEVENTY-SEVEN hours and
 successfully completed a real estate course or courses approved  by  the
 secretary  of  state  as  to  method  and content and supervision, which
 approval may be withdrawn if in the opinion of the  secretary  of  state
 said  course or courses are not properly conducted as to method, content
 and supervision. Computer-based and  distance-learning  courses  may  be
 approved  by the department so long as providers demonstrate the ability
 to monitor and verify participation by the applicant for  the  specified
 time  period.  Notwithstanding the foregoing authority to approve compu-
 ter-based and distance-learning courses, the  department  may  prescribe
 that  specified  subjects  or  hours  must  be  presented in a classroom
 setting.
   § 4. Paragraph (c) of subdivision 3 of section 441 of the real proper-
 ty law, as amended by chapter 470 of the laws of  1998,  is  amended  to
 read as follows:
   (c) (I) The secretary of state shall promulgate rules establishing the
 method,  content, setting and supervision requirements of the continuing
 education real estate course or courses provided for in this section. In
 establishing the requirements for the  continuing  education  course  or
 courses,  the  secretary of state shall permit alternatives with respect
 to content and method of presentation in consideration of  the  type  of
 brokerage  practiced  and the availability of the sources of such course
 or courses in different areas of the state. Each course  shall  have  an
 established  curriculum  composed  primarily of real estate practice and
 professional responsibility and ethics  and  properly  prepared  written
 materials  of  the  subject matter which shall be distributed as part of
 the course. It shall be taught by a  qualified  faculty  with  attorneys
 presenting  legal  subjects. Credit shall be awarded on the basis of one
 hour for each sixty minutes of actual attendance and  records  shall  be
 maintained  of  attendance at each session which shall be transmitted to
 the department at the  conclusion  of  the  course.  Computer-based  and
 distance  learning  courses may be approved by the department so long as
 providers demonstrate the ability to monitor and verify participation by
 the licensee for the specified time period.
   (II) THE SECRETARY OF STATE SHALL REQUIRE APPROVED FACULTY TO  SIGN  A
 DOCUMENT  UNDER  OATH,  APPROVED  BY  AND SUBMITTED TO THE DEPARTMENT OF
 STATE, ATTESTING TO COMPLIANCE WITH ALL APPLICABLE STATUTORY AND REGULA-
 TORY REQUIREMENTS PERTAINING  TO  THE  INSTRUCTION  OF  THE  ESTABLISHED
 CURRICULUM. THE SECRETARY OF STATE SHALL PROMULGATE PENALTIES FOR FACUL-
 TY  THAT  FAIL  TO  MEET THE OBLIGATIONS REQUIRED UNDER THIS SECTION AND

 A. 5359                             4
 
 DEPARTMENT OF STATE REGULATIONS  INCLUDING,  BUT  NOT  LIMITED  TO,  THE
 TEMPORARY  SUSPENSION OF THEIR INSTRUCTOR CERTIFICATE FOR THE FIRST SUCH
 FAILURE AND THE REVOCATION  OF  THEIR  INSTRUCTOR  CERTIFICATE  FOR  ANY
 SUBSEQUENT FAILURE.
   §  5.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law.