NY State Senate Bill 2021-S2131

Senate Bill S2131

Signed By Governor

2021-2022 Legislative Session

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 21, 2021	approval memo.80 signed chap.696
Dec 10, 2021	delivered to governor
Jun 07, 2021	returned to senate passed assembly ordered to third reading rules cal.447 substituted for a6186
Feb 08, 2021	referred to judiciary delivered to assembly passed senate
Feb 02, 2021	ordered to third reading cal.229 print number 2131a
Feb 02, 2021	amend and recommit to rules
Feb 01, 2021	reported and committed to rules
Jan 19, 2021	referred to judiciary

Votes

- Feb 8, 2021 - Floor Vote
  S2131
  
  59
  
  Aye
  
  4
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 8, 2021
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Thomas
      
      Weik
      
      nay (4)
      
      Griffo
      
      Lanza
      
      Oberacker
      
      Tedisco
  Feb 2, 2021 - Rules Committee Vote
  S2131
  
  17
  
  Aye
  
  1
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Feb 2, 2021
      
      aye (17)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Comrie
      
      Gallivan
      
      Gianaris
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mayer
      
      O'Mara
      
      Parker
      
      Savino
      
      Stewart-Cousins
      
      nay (1)
      
      Lanza
      
      aye wr (3)
      
      Griffo
      
      Ortt
      
      Ritchie

Bill Amendments

Original

A (Active)

co-Sponsors

2021-S2131 - Details

Law Section:: Real Property Law
Laws Affected:: Amd §§442-h & 441-c, RP L

2021-S2131 - Summary

Relates to requiring the secretary of state to promulgate regulations requiring real estate brokers to institute standardized operating procedures for the prerequisites prospective homebuyers shall meet prior to receiving any services; allows for a penalty to be imposed on any broker or salesperson who fails to comply with such standardized operating procedures.

2021-S2131 - Sponsor Memo

                                
 
BILL NUMBER: S2131

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to requiring the
secretary of state to promulgate regulations requiring real estate
brokers to institute standardized operating procedures for the prerequi-
sites prospective homebuyers shall meet prior to receiving any services

 
PURPOSE:

This bill aims to eliminate the disparate treatment in real estate sales
by requiring the standardization of operating procedures utilized by
real estate agents.

 
SUMMARY OF PROVISIONS:

Section 1: amends section 442-h of the real property law by adding a new
subdivision 4 directing the secretary of state to promulgate rules and
regulations requiring real estate brokers to institute standardized

operating procedures for the prerequisites prospective homebuyers must
meet prior to receiving any services. Requires real estate brokers to
submit such standardized operating procedures to the department of state
for approval. If any alterations are made subsequent to approval, real
estate brokers shall notify and submit such new procedures within thirty
days. Any salesperson operating under a brokerage license that fails to
adhere to such approved operating procedures shall be subject to the
penalties imposed by section 441-c of this article.

Section 2: amends section 441-c of the real property law to permit the
department of state to revoke or suspend the license of a real estate
broker or salesperson for a violation of subdivision 4 of section 442-h
of real property law.

Section 3: Effective date.

 
JUSTIFICATION:

On November 17, 2019, Newsday, a media outlet based on Long Island,
published the results of a three-year investigation of discrimination by
real estate agents, revealing evidence of widespread separate and
unequal treatment of minority potential homebuyers and minority communi-
ties on Long Island. Newsday utilized paired testing efforts in its
investigation.

In seven tests conducted by Newsday, agents were caught providing
blatantly unequal service to minority prospective homebuyers compared
with their white counterparts. One agent demanded to see identification
of the minority tester, but not the white tester. A minority tester was
required to present proof of preapproval for a mortgage loan before
receiving listings-opposed to the white paired tester. An agent refused
to show listings to a minority tester unless they agreed to sign an
exclusive broker's agreement-shortly before the agent invited the white
tester to view homes without requiring such agreement.

This legislation aims to eliminate the disparate treatment of prospec-
tive homebuyers on the basis of race or other protected characteristic,
as was demonstrated in Newsday's investigation.
 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately

2021-S2131 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2131
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2021
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the real property law,  in  relation  to  requiring  the
   secretary  of  state  to  promulgate regulations requiring real estate
   brokers to institute standardized operating procedures for the prereq-
   uisites prospective homebuyers  shall  meet  prior  to  receiving  any
   services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 442-h of the real property law is amended by adding
 a new subdivision 4 to read as follows:
   4. (A) THE SECRETARY OF STATE SHALL PROMULGATE RULES  AND  REGULATIONS
 REQUIRING REAL ESTATE BROKERS TO INSTITUTE STANDARDIZED OPERATING PROCE-
 DURES  FOR  THE  PREREQUISITES PROSPECTIVE HOMEBUYERS MUST MEET PRIOR TO
 RECEIVING ANY SERVICES. SUCH RULES AND REGULATIONS SHALL INCLUDE BUT NOT
 BE LIMITED TO THE FOLLOWING:
   (I) WHETHER PROSPECTIVE CLIENTS SHALL SHOW IDENTIFICATION;
   (II) WHETHER AN EXCLUSIVE BROKER AGREEMENT IS REQUIRED; AND
   (III) WHETHER PRE-APPROVAL FOR A MORTGAGE LOAN IS REQUIRED.
   (B) REAL ESTATE  BROKERS  SHALL  SUBMIT  SUCH  STANDARDIZED  OPERATING
 PROCEDURES  TO  THE DEPARTMENT OF STATE FOR APPROVAL. IF ANY ALTERATIONS
 ARE MADE SUBSEQUENT TO SUCH APPROVAL, REAL ESTATE BROKERS  SHALL  NOTIFY
 AND  SUBMIT  SUCH  NEW STANDARD OPERATING PROCEDURES WITHIN THIRTY DAYS.
 ANY SALESPERSON OPERATING UNDER A BROKERAGE LICENSE THAT FAILS TO ADHERE
 TO SUCH APPROVED OPERATING PROCEDURES SHALL BE SUBJECT TO THE  PENALTIES
 IMPOSED BY SECTION FOUR HUNDRED FORTY-ONE-C OF THIS ARTICLE.
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty  law,  as amended by chapter 131 of the laws of 2020, is amended to
 read as follows:
   (a) The department of state may revoke the license of  a  real  estate
 broker  or  salesman or suspend the same, for such period as the depart-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06380-01-1

 S. 2131                             2
 
 ment may deem proper, or in lieu thereof may impose a fine not exceeding
 one thousand dollars payable to the department of state, or a  reprimand
 upon  conviction of the licensee of a violation of any provision of this
 article,  OR FOR A VIOLATION OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED
 FORTY-TWO-H OF THIS ARTICLE, or  for  a  material  misstatement  in  the
 application  for  such  license,  or if such licensee has been guilty of
 fraud or fraudulent practices, or for dishonest or misleading  advertis-
 ing,  or  has demonstrated untrustworthiness or incompetency to act as a
 real estate broker or salesman, or for a violation of article fifteen of
 the executive law committed in his or her  capacity  as  a  real  estate
 broker  or  salesman,  as  the case may be. In the case of a real estate
 broker engaged in the business of a tenant relocator,  untrustworthiness
 or  incompetency shall include engaging in any course of conduct includ-
 ing, but not limited to, the interruption or discontinuance of essential
 building service, that interferes with or disturbs the  peace,  comfort,
 repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.

co-Sponsors

2021-S2131A (ACTIVE) - Details

Law Section:: Real Property Law
Laws Affected:: Amd §§442-h & 441-c, RP L

2021-S2131A (ACTIVE) - Summary

2021-S2131A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2131A

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to requiring the
secretary of state to promulgate regulations requiring real estate
brokers to institute standardized operating procedures for the prerequi-
sites prospective homebuyers shall meet prior to receiving any services

 
PURPOSE:

This bill aims to eliminate the disparate treatment in real estate sales
by requiring the standardization of operating procedures utilized by
real estate agents.

 
SUMMARY OF PROVISIONS:

Section 1: amends section 442-h of the real property law by adding a new
subdivision 4 directing the secretary of state, upon notice and a public
hearing, to promulgate rules and regulations requiring real estate

brokers to institute standardized operating procedures for the prerequi-
sites prospective homebuyers must meet prior to receiving any services.
Requires real estate brokers to submit such standardized operating
procedures to the department of state. Requires the Department of Sate
to maintain a file of such standardized operating procedures while the
broker's license is active and for at least five years thereafter. If
any alterations are made to the standardized operating procedures subse-
quent to such submission, real estate brokers shall notify and submit
such new procedures within thirty days. Any salesperson operating under
a brokerage license that fails to adhere to such operating procedures
shall be subject to the penalties imposed by section 441-c of this arti-
cle.

Section 2: amends section 441-c of the real property law to permit the
department of state to revoke or suspend the license of a real estate
broker or salesperson for a violation of subdivision 4 of section 442-h
of real property law.

Section 3: Effective date.

 
JUSTIFICATION:

On November 17, 2019, Newsday, a media outlet based on Long Island,
published the results of a three-year investigation of discrimination by
real estate agents, revealing evidence of widespread separate and
unequal treatment of minority potential homebuyers and minority communi-
ties on Long Island.  Newsday utilized paired testing efforts in its
investigation.

In seven tests conducted by Newsday, agents were caught providing
blatantly unequal service to minority prospective homebuyers compared
with their white counterparts. One agent demanded to see identification
of the minority tester, but not the white tester. A minority tester was
required to present proof of preapproval for a mortgage loan before
receiving listings-opposed to the white paired tester. An agent refused
to show listings to a minority tester unless they agreed to sign an
exclusive broker's agreement-shortly before the agent invited the white
tester to view homes without requiring such agreement.
This legislation aims to eliminate the disparate treatment of prospec-
tive homebuyers on the basis of race or other protected characteristic,
as was demonstrated in Newsday's investigation.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately

2021-S2131A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2131--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2021
                                ___________
 
 Introduced  by Sens. SKOUFIS, KAVANAGH, THOMAS -- read twice and ordered
   printed, and when printed to be committed to the Committee on  Judici-
   ary  --  reported  favorably  from said committee and committed to the
   Committee on Rules --  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 the
   secretary of state to promulgate  regulations  requiring  real  estate
   brokers to institute standardized operating procedures for the prereq-
   uisites  prospective  homebuyers  shall  meet  prior  to receiving any
   services
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 442-h of the real property law is amended by adding
 a new subdivision 4 to read as follows:
   4. (A) THE SECRETARY OF STATE, UPON NOTICE AND A PUBLIC HEARING, SHALL
 PROMULGATE RULES AND REGULATIONS REQUIRING REAL ESTATE BROKERS TO INSTI-
 TUTE STANDARDIZED OPERATING PROCEDURES FOR THE PREREQUISITES PROSPECTIVE
 HOMEBUYERS  MUST  MEET  PRIOR  TO RECEIVING ANY SERVICES. SUCH RULES AND
 REGULATIONS SHALL INCLUDE BUT NOT BE LIMITED TO THE FOLLOWING:
   (I) WHETHER PROSPECTIVE CLIENTS SHALL SHOW IDENTIFICATION;
   (II) WHETHER AN EXCLUSIVE BROKER AGREEMENT IS REQUIRED; AND
   (III) WHETHER PRE-APPROVAL FOR A MORTGAGE LOAN IS REQUIRED.
   (B) REAL ESTATE  BROKERS  SHALL  SUBMIT  SUCH  STANDARDIZED  OPERATING
 PROCEDURES  TO THE DEPARTMENT OF STATE AND THE DEPARTMENT OF STATE SHALL
 MAINTAIN A FILE OF SUCH  STANDARDIZED  OPERATING  PROCEDURES  WHILE  THE
 BROKER'S  LICENSE  IS  ACTIVE AND FOR AT LEAST FIVE YEARS THEREAFTER. IF
 ANY ALTERATIONS ARE MADE TO THE STANDARDIZED OPERATING PROCEDURES SUBSE-
 QUENT TO SUCH SUBMISSION, REAL ESTATE BROKERS SHALL  NOTIFY  AND  SUBMIT
 SUCH  NEW  STANDARD OPERATING PROCEDURES WITHIN THIRTY DAYS.  ANY SALES-
 PERSON OPERATING UNDER A BROKERAGE LICENSE THAT FAILS TO ADHERE TO  SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06380-02-1

 S. 2131--A                          2
 
 OPERATING  PROCEDURES  SHALL  BE  SUBJECT  TO  THE  PENALTIES IMPOSED BY
 SECTION FOUR HUNDRED FORTY-ONE-C OF THIS ARTICLE.
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty  law,  as amended by chapter 131 of the laws of 2020, is amended to
 read as follows:
   (a) The department of state may revoke the license of  a  real  estate
 broker  or  salesman or suspend the same, for such period as the depart-
 ment may deem proper, or in lieu thereof may impose a fine not exceeding
 one thousand dollars payable to the department of state, or a  reprimand
 upon  conviction of the licensee of a violation of any provision of this
 article, OR FOR A VIOLATION OF SUBDIVISION FOUR OF SECTION FOUR  HUNDRED
 FORTY-TWO-H  OF  THIS  ARTICLE,  or  for  a material misstatement in the
 application for such license, or if such licensee  has  been  guilty  of
 fraud  or fraudulent practices, or for dishonest or misleading advertis-
 ing, or has demonstrated untrustworthiness or incompetency to act  as  a
 real estate broker or salesman, or for a violation of article fifteen of
 the  executive  law  committed  in  his or her capacity as a real estate
 broker or salesman, as the case may be. In the case  of  a  real  estate
 broker  engaged in the business of a tenant relocator, untrustworthiness
 or incompetency shall include engaging in any course of conduct  includ-
 ing, but not limited to, the interruption or discontinuance of essential
 building  service,  that interferes with or disturbs the peace, comfort,
 repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.

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Senate Bill S2131

Share this bill

Sponsored By

James Skoufis

Archive: Last Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

Brian Kavanagh

Kevin Thomas

2021-S2131 - Details

2021-S2131 - Summary

2021-S2131 - Sponsor Memo

2021-S2131 - Bill Text download pdf

co-Sponsors

Brian Kavanagh

Kevin Thomas

Alessandra Biaggi

James Gaughran

2021-S2131A (ACTIVE) - Details

2021-S2131A (ACTIVE) - Summary

2021-S2131A (ACTIVE) - Sponsor Memo

2021-S2131A (ACTIVE) - Bill Text download pdf

Comments