BILL NUMBER: S6874a

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend the real property law, in relation to the power to
revoke or suspend the license of a real estate broker or salesman

 
PURPOSE:

This bill gives the Department of State greater discretion in disciplin-
ing a real estate broker or salesman found to violate provisions of the
state Human Rights Law.

 
SUMMARY OF PROVISIONS:

Section one amends section 441-c of the Real Property Law by giving the
Department of Sate the discretion to fine, suspend or revoke the license
of a real estate agent or broker who commits a violation of Article 15
of the Executive Law in his or her capacity as an agent or broker.

              

 
JUSTIFICATION:

Article 15 of the Executive Law, known as the New York State Human
Rights Law, prohibits housing discrimination on the basis of a protected
characteristic, including race, creed, national origin, sex, age, disa-
bility, marital status, military status, family status, sexual orien-
tation or gender identity. Real estate brokers and agents are bound by
this law, but a troubling investigation by Newsday unveiled widespread
violations within the industry. Through paired testing, the investi-
gation showed that minorities were being segregated by agents and
brokers, as they tended to steer these clients towards communities with
minority populations. It also revealed that some agents were requiring
minority clients to provide additional proof of income or financing
before they would show these clients homes in particular neighborhoods.
The same proof was not required of their white counterparts. The
evidence suggested that 40% of brokers and agents involved in the inves-
tigation subjected minority clients to disparate treatment, in compar-
ison to white clients.

Homeownership is the cornerstone of the American Dream, and real estate
agents and brokers play a significant role in this momentous part of
their client's lives. Discrimination and segregation have no place in
our modern society, and certainly have no place within the real estate
and housing industry.

The Department of State currently has the ability to fine, suspend or
revoke the license of a real estate agent or broker for a list of
enumerated offenses and qualities, including untrustworthiness.  Howev-
er, the Department does not specifically have the ability to fine,
suspend or revoke the license of an agent for discriminating in their
capacity as an agent or broker. This legislation will extend such
authority to the Department in order to deter future behaviors and to
ensure the Department has the authority to appropriately punish any
agent or broker engaged in this type of conduct.

 
LEGISLATIVE HISTORY:

New Legislation.
 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.