What's happening
This bill establishes a paired testing program and compliance fee to detect and penalize housing discrimination by real estate professionals in New York.
Why it matters
Creates a proactive enforcement mechanism. by requiring the state to conduct "paired testing," which uses testers of different backgrounds (e.g., race, disability status) with otherwise identical qualifications to uncover discriminatory practices by real estate professionals.
Introduces meaningful financial and professional consequences. for real estate brokers and salespeople found guilty of discrimination, including fines (the amount set by the Division of Human Rights) and possible license suspension or revocation—raising the stakes for compliance.
Establishes a dedicated funding stream. (the Paired Testing Program Fund) that pools fines, compliance fees, and other contributions to support ongoing anti-discrimination testing and enforcement, ensuring the program's sustainability.
Mandates a new compliance fee for real estate licenses. the amount to be set by the Division of Human Rights—which directly supports anti-discrimination efforts, potentially raising the cost of doing business for real estate professionals but aiming to deter discriminatory conduct.
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Who cares
Headline styles
Test for Housing Discrimination
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Test Real Estate for Discrimination
In Assembly Committee · Judiciary · Sponsor Kimberly Jean-Pierre
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7024
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. SANDERS -- 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 establishing a paired testing program and a compliance fee; and to amend the state finance law, in relation to establishing the paired testing program fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property law is amended by adding a new section 441-g to read as follows:
§ 441-g. Paired testing program. 1. For the purpose of this section, "paired testing" shall mean a test in which two testers assume the role of applicants with equivalent social and economic characteristics who differ only in terms of the characteristic being tested for discrimination, such as but not limited to, race, disability status, or marital status.
2. The commissioner of the division of human rights shall develop a paired testing program to determine if any real estate broker, real estate salesperson or employee or agent thereof are using unlawful discriminatory practices as defined in paragraph (c) of subdivision five of section two hundred ninety-six of the executive law.
3. (a) Any real estate broker, real estate salesperson or employee or agent thereof found using unlawful discriminatory practices as defined in paragraph (c) of subdivision five of section two hundred ninety-six of the executive law shall be subject to a fine in an amount to be determined by the commissioner of the division of human rights.
(b) In addition to any fine imposed pursuant to paragraph (a) of this subdivision a real estate broker or real estate salesperson licensed pursuant to this article may have his or her license revoked or suspended pursuant to section four hundred forty-one-c of this article.
4. Monies collected from any fine imposed pursuant to subdivision three of this section shall be deposited in the paired testing program
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14438-01-9
S. 7024 2
fund established pursuant to section ninety-nine-hh of the state finance law.
5. Such fines as described in subdivision three of this section shall be in addition to any other fine or penalty pursuant to law.
6. The commissioner of the division of human rights is authorized to promulgate rules and regulations to carry out the administration of the paired testing program as set forth in this section.
§ 2. The state finance law is amended by adding a new section 99-hh to read as follows:
§ 99-hh. Paired testing program fund. 1. There is hereby established in the joint custody of the state comptroller and the commissioner of taxation and finance in consultation with the commissioner of the division of human rights, a fund to be known as the "paired testing program fund".
2. The paired testing program fund shall consist of all fines and forfeitures collected pursuant to section four hundred forty-one-g of the real property law, compliance fees collected pursuant to subdivision one-B of section four hundred forty-one-b of the real property law and all other moneys appropriated, credited or transferred thereto from any other fund or source pursuant to law. Nothing contained in this section shall prevent the state from receiving grants, gifts or bequests for the purposes of the fund as defined in this section and depositing them into the fund according to law.
3. The commissioner of the division of human rights shall use monies in the fund for the administration of the paired testing program established pursuant to section four hundred forty-one-g of the real property law.
§ 3. Section 441-b of the real property law is amended by adding a new subdivision 1-B to read as follows:
1-B. In addition to the fee for a license issued or reissued under the provisions of this article entitling a person, co-partnership, limited liability company or corporation to act as a real estate broker or entitling a person to act as a real estate salesman there shall be a compliance fee in an amount to be determined by the commissioner of the division of human rights. Notwithstanding any provision of law to the contrary all such compliance fees collected shall be deposited into the paired testing program fund established pursuant to section ninety-ninehh of the state finance law.
§ 4. This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to establishing a paired testing program and a compliance fee; and to amend the state finance law, in relation to establishing the paired testing program fund
Purpose of the bill
The purpose of this bill is to establish a paired testing program and a compliance fee to prevent housing discrimination.
Summary of provisions
Section 1: Definition. Paired testing program. For the purpose of this section, "paired testing" shall mean a test in which two testers assume the role of applicants with equivalent social and economic character- istics who differ only in terms of the characteristic being tested for discrimination, such as but not limited to race, disability status, or marital status. * The commissioner of the division of human rights shall develop a paired testing program to determine if any real estate broker, real estate salesperson or employee or agent thereof are using unlawful discriminatory practices. * Any real estate broker, real estate sales- person or employee or agent thereof found using unlawful discriminatory practices shall be subject to a fine. * Monies collected from any fine imposed shall be deposited in the paired testing program fund. * Such fines as described in this section shall be in addition to any other fine or penalty pursuant to law.
Section 2: Establishes the Paired Testing Program Fund. Section 3: Compliance fee.
Section 4: Effective date.
Justification
Even though the Fair Housing Act was passed more than 50 years ago, New York State still has a problem with housing discrimination. Newsday finished a three-year investigation in 2019 and concluded that African- American home buyers were being steered to black neighborhoods.
New York State established a fair housing enforcement program in 2016, using paired testing, to prevent housing discrimination. An investi- gation by Newsday found that the State didn't conduct any further paired testing after the first round of tests. This bill would impose a fee on real estate agents to fund a paired testing program and provides for penalties to real estate agents who are found to be discriminating against clients. The New York Times Editorial Board calls imposing such a fee to fund a paired testing program in "The Jim Crow South? No, Long Island Today" on November 21, 2019.
Prior legislative history
New bill.
Fiscal implications
None
Effective date
This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/ or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.