NY State Senate Bill 2023-S2336

Current Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
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Delivered to Governor
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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to judiciary
Jan 19, 2023	referred to judiciary

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2023-S2336 (ACTIVE) - Details

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
2021-2022: S285

2023-S2336 (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.

2023-S2336 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2336

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 which
provides for the licensing of tenant screening bureaus and defines
terms. It requires a license to act as a tenant screening bureau, which
will be valid for two years.. and the duties of a licensed tenant. The
Secretary of State is given the power to enforce the provisions within
this section, and investigate business practices and methods of any
tenant screening bureau.

Section 2 provides the effective date.

 
JUSTIFICATION:

The New York State Bar Association (NYSBA) describes Tenant Screening
Bureaus (TSB) 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 limes, 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
TSBs, define their duties including what information their tenant
screening reports may or may not contain, give the Secretary 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 TSBs can cause to prospec-
tive tenants regardless of where they live in the state.

 
PRIOR LEGISLATIVE HISTORY:

S285 of 2021-22: Referred to Judiciary.

S5407 of 2019-20: Referred to Judiciary.

 
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.

2023-S2336 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2336
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sens.  MYRIE, BAILEY, GOUNARDES, HOYLMAN-SIGAL, 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
 PROCEEDING  INVOLVING TENANT OR PROSPECTIVE TENANT WHO IS THE SUBJECT OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01322-01-3

 S. 2336                             2
 
 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. 2336                             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. 2336                             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.

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Senate Bill S2336

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

2023-S2336 (ACTIVE) - Details

2023-S2336 (ACTIVE) - Summary

2023-S2336 (ACTIVE) - Sponsor Memo

2023-S2336 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2336

Share this bill

Sponsored By

Zellnor Myrie

Current Bill Status - In Senate Committee Judiciary Committee

co-Sponsors

Jamaal T. Bailey

Andrew Gounardes

Brad Hoylman-Sigal

Liz Krueger

2023-S2336 (ACTIVE) - Details

2023-S2336 (ACTIVE) - Summary

2023-S2336 (ACTIVE) - Sponsor Memo

2023-S2336 (ACTIVE) - Bill Text download pdf

Comments