BILL NUMBER: S5524
SPONSOR: SANDERS
 
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.

Statutes affected:
S5524: 441-b real property law