NY State Senate Bill 2021-S285

Archive: Last Bill Status - In Senate Committee Judiciary Committee

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary
Jan 06, 2021	referred to judiciary

co-Sponsors

View additional co-sponsors

2021-S285 (ACTIVE) - Details

See Assembly Version of this Bill:: A3302
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §238-b, RP L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S5407, A6789
2023-2024: S2336

2021-S285 (ACTIVE) - Summary

Relates to licensing tenant screening bureaus; provides that no person shall act as a tenant screening bureau without first obtaining a license from the department of state.

2021-S285 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S285

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the real property law, in relation to licensing tenant
screening bureaus

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would establish a system for licensing tenant screening
bureaus to increase accountability over these businesses.

 
SUMMARY OF PROVISIONS:

Section 1 amends the real property law to add a new section 238-b that
provides for the licensing of tenant screening bureaus.

- Terms are defined and the licensing requirements are laid out

- The duties of a licensed tenant screening bureau are enumerated

- The Secretary of State is given the power to enforce the duties and
requirements of licensed tenant screening bureaus

- Penalties for violating this act are defined and tenants hurt by a
tenant screening bureau are given the right to bring action Section 2
provides the effective date

 
JUSTIFICATION:

The New York State Bar Association (NYSBA) describes Tenant Screening
Bureaus as the middlemen who purchase Housing Court information from the
New York State Office of Court Administration and make it available to
landlords so that they can screen their tenants.

This process has resulted in the creation of a "tenant blacklist" that
private landlords use to deny tenants housing. This practice exacerbates
the existing challenges that come with renting on the free market in New
York. Further, according to the NYSBA, TSB reports are "often inaccu-
rate, incomplete, or misleading - or all three."  These unregulated
entities play fast and loose with information that can make the differ-
ence between housed and homeless for thousands of tenants. According to
the New York Times, more than two hundred thousand housing court cases
were filed against tenants in 2017. If half of the tenants named in
these cases ended up on a tenant blacklist, hundreds of thousands of New
Yorkers could be wrongfully denied a place to live.

Often, TSBs provide a tenant screening report that does not tell the
full story of a case. For example, such a report may leave out vital
information like the outcome of the proceeding and whether or not it was
withdrawn or dismissed. Furthermore, tenant screening reports may
contain information about proceedings that have been subject of an
expungement order. This legislation addresses the lack of existing regu-
lation of TSBs and the reports they produce by creating a system for
regulating them .to ensure that they do not continue to profit from
providing inaccurate information that harms tenants.


Specifically, this legislation would define licensing requirements for
Tenant Screening Bureaus, define their duties including what information
their tenant screening reports may or may not contain, give the Secre-
tary of State enforcement powers, define penalties, and give tenants the
right to bring action against TSBs that harm them.

While New York City has pursued regulation on a local level, it is
important that this minimally-regulated industry be supervised at the
state-level because of the harm unregulated Tenant Screening Bureaus can
cause to prospective tenants regardless of where they live in the state.

 
PRIOR LEGISLATIVE HISTORY:

2019-20: A6789/S5407 Similar legislation has been introduced at the
local level in New York City (Intro 1250-2016 of 2016)

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2021-S285 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    285
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sens. MYRIE, BAILEY, GOUNARDES, HOYLMAN, KRUEGER, RIVERA
   -- 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  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-b to read as follows:
   §  238-B.  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD02021-01-1

 S. 285                              2
 
 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
 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.

 S. 285                              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

 S. 285                              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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S285

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

2021-S285 (ACTIVE) - Details

2021-S285 (ACTIVE) - Summary

2021-S285 (ACTIVE) - Sponsor Memo

2021-S285 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S285

Share this bill

Sponsored By

Zellnor Myrie

Archive: Last Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

Jamaal T. Bailey

Andrew Gounardes

Brad Hoylman-Sigal

Liz Krueger

2021-S285 (ACTIVE) - Details

2021-S285 (ACTIVE) - Summary

2021-S285 (ACTIVE) - Sponsor Memo

2021-S285 (ACTIVE) - Bill Text download pdf

Comments