Bill Text: NY A03226 | 2015-2016 | General Assembly | Introduced

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Bill Title: Increases the fine that may be imposed for violations of real estate licensing laws and provides for procedures in connection with violations involving nonsolicitation orders and cease and desist zones; provides for publication of violations; directs the secretary of state to hold public hearings within cease and desist zones prior to their expiration and report to the legislature on the decision of whether or not to readopt the rule and reasons for such decision.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2016-01-06 - referred to judiciary [A03226 Detail]

Download: New_York-2015-A03226-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3226
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 22, 2015
                                      ___________
       Introduced  by  M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. GLICK,
         PEOPLES-STOKES -- read once and referred to the Committee on Judiciary
       AN ACT to amend the real property law, in relation to fines  and  proce-
         dures  in connection with misconduct by real estate brokers and sales-
         persons
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (a) of subdivision 1 of section 441-c of the real
    2  property  law,  as amended by chapter 81 of the laws of 1995, is amended
    3  to read as follows:
    4    (a) The department of state may revoke the license of  a  real  estate
    5  broker  or  salesman or suspend the same, for such period as the depart-
    6  ment may deem proper, or in lieu  thereof  may  impose  a  [fine]  CIVIL
    7  PENALTY  not exceeding [one] TWO thousand dollars payable to the depart-
    8  ment of state, or a reprimand upon  conviction  of  the  licensee  of  a
    9  violation  of any provision of this article, or for a material misstate-
   10  ment in the application for such license, or if such licensee  has  been
   11  guilty  of fraud or fraudulent practices, or for dishonest or misleading
   12  advertising, or has demonstrated untrustworthiness  or  incompetency  to
   13  act as a real estate broker or salesman, as the case may be. In the case
   14  of  a  real estate broker engaged in the business of a tenant relocator,
   15  untrustworthiness or incompetency shall include engaging in  any  course
   16  of conduct including, but not limited to, the interruption or discontin-
   17  uance  of  essential  building service, that interferes with or disturbs
   18  the peace, comfort, repose and quiet enjoyment of a tenant.
   19    S 2. Subdivision 2 of section 441-e  of  the  real  property  law,  as
   20  amended  by  chapter  505  of  the  laws  of 2001, is amended to read as
   21  follows:
   22    2. Revocation, suspension, reprimands, fines. The department of  state
   23  shall, before revoking or suspending any license or imposing any fine or
   24  reprimand  on  the  holder  thereof or before imposing any fine upon any
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07302-01-5
       A. 3226                             2
    1  person not licensed pursuant to this article who  is  deemed  to  be  in
    2  violation  of  section  four hundred forty-two-h of this article, and at
    3  least ten days prior to the date set for the hearing, notify in  writing
    4  the holder of such license or such unlicensed person of any charges made
    5  and shall afford such licensee or unlicensed person an opportunity to be
    6  heard  in person or by counsel in reference thereto. Such written notice
    7  may be served by delivery of same personally  to  the  licensee,  or  by
    8  mailing  same  by  certified  mail to the last known business address of
    9  such licensee or unlicensed person, or by any method authorized  by  the
   10  civil practice law and rules. If said licensee be a [salesman] SALESPER-
   11  SON,  the department shall also notify the broker with whom he OR SHE is
   12  associated of the charges by mailing notice by  certified  mail  to  the
   13  broker's  last known business address. The hearing on such charges shall
   14  be at such time and place  as  the  department  shall  prescribe,  WHICH
   15  PLACE, IN THE CASE OF ANY HEARING RELATING TO A CHARGE ARISING OUT OF AN
   16  ALLEGED  VIOLATION  OF SECTION FOUR HUNDRED FORTY-TWO-H OF THIS ARTICLE,
   17  SHALL BE WITHIN THE COUNTY WHEREIN THE REAL PROPERTY IN CONNECTION  WITH
   18  THE CHARGE ARISES IS LOCATED IF IT CAN BE ARRANGED AT REASONABLE COST.
   19    S 3. Section 442-h of the real property law is amended by adding a new
   20  subdivision 4 to read as follows:
   21    4.  THE SECRETARY OF STATE SHALL PUBLISH ANNUALLY, ON OR BEFORE DECEM-
   22  BER THIRTY-FIRST OF EACH YEAR, A LIST ORGANIZED  BY  ZIP  CODE,  OF  ALL
   23  FINES, SUSPENSIONS, AND REVOCATIONS IMPOSED UPON LICENSEES FOR VIOLATION
   24  OF THIS SECTION.
   25    S 4. Paragraph (c) of subdivision 3 of section 442-h of the real prop-
   26  erty  law,  as amended by chapter 505 of the laws of 2001, is amended to
   27  read as follows:
   28    (c) No rule establishing a cease and desist zone  shall  be  effective
   29  for longer than five years. However, the secretary of state may re-adopt
   30  the  rule  to  continue the cease and desist zone for additional periods
   31  not to exceed five years each.  AT LEAST NINETY DAYS PRIOR TO THE  EXPI-
   32  RATION  OF  A  CEASE  AND DESIST ZONE RULE, THE SECRETARY OF STATE SHALL
   33  HOLD PUBLIC HEARINGS WITHIN EACH SUCH CEASE AND DESIST ZONE PROVIDED  IT
   34  CAN  BE  ARRANGED  AT REASONABLE COST.  AT LEAST SIXTY DAYS PRIOR TO THE
   35  EXPIRATION OF A CEASE AND DESIST ZONE,  THE  SECRETARY  OF  STATE  SHALL
   36  REPORT  TO  THE LEGISLATURE WHETHER OR NOT SUCH CEASE AND DESIST ZONE IS
   37  BEING READOPTED AND THE REASON FOR SUCH DETERMINATION. Whenever  a  rule
   38  establishing  a  cease  and desist zone shall have expired or shall have
   39  been repealed, all owner's statements filed with the secretary of  state
   40  pursuant  to  that  rule shall also expire. However, an owner may file a
   41  new statement with the secretary of state  if  a  new  rule  is  adopted
   42  establishing  a  cease  and desist zone containing the owner's property.
   43  Once the boundaries of a cease and desist zone have been established  by
   44  rule of the secretary of state, the boundaries may not be changed except
   45  by  repeal  of the existing rule and adoption of a new rule establishing
   46  the new boundaries.
   47    S 5. This act shall take effect immediately;  provided  that  sections
   48  one  and  two of this act shall take effect on the first of January next
   49  succeeding the date on which it shall have become a  law;  and  provided
   50  further  that the secretary of state is authorized to promulgate any and
   51  all rules and regulations and  take  any  other  measures  necessary  to
   52  implement this act on its effective date on or before such date.