Bill Text: NY A08951 | 2011-2012 | General Assembly | Introduced

---

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 1-0)

Status: (Introduced - Dead) 2012-01-04 - referred to judiciary [A08951 Detail]

Download: New_York-2011-A08951-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8951
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 4, 2012
                                      ___________
       Introduced by M. of A. WEPRIN -- 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
   25  person  not  licensed  pursuant  to  this article who is deemed to be in
   26  violation of section four hundred forty-two-h of this  article,  and  at
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00346-01-1
       A. 8951                             2
    1  least  ten days prior to the date set for the hearing, notify in writing
    2  the holder of such license or such unlicensed person of any charges made
    3  and shall afford such licensee or unlicensed person an opportunity to be
    4  heard  in person or by counsel in reference thereto. Such written notice
    5  may be served by delivery of same personally  to  the  licensee,  or  by
    6  mailing  same  by  certified  mail to the last known business address of
    7  such licensee or unlicensed person, or by any method authorized  by  the
    8  civil practice law and rules. If said licensee be a [salesman] SALESPER-
    9  SON,  the department shall also notify the broker with whom he OR SHE is
   10  associated of the charges by mailing notice by  certified  mail  to  the
   11  broker's  last known business address. The hearing on such charges shall
   12  be at such time and place  as  the  department  shall  prescribe,  WHICH
   13  PLACE, IN THE CASE OF ANY HEARING RELATING TO A CHARGE ARISING OUT OF AN
   14  ALLEGED  VIOLATION  OF SECTION FOUR HUNDRED FORTY-TWO-H OF THIS ARTICLE,
   15  SHALL BE WITHIN THE COUNTY WHEREIN THE REAL PROPERTY IN CONNECTION  WITH
   16  THE CHARGE ARISES IS LOCATED IF IT CAN BE ARRANGED AT REASONABLE COST.
   17    S 3. Section 442-h of the real property law is amended by adding a new
   18  subdivision 4 to read as follows:
   19    4.  THE SECRETARY OF STATE SHALL PUBLISH ANNUALLY, ON OR BEFORE DECEM-
   20  BER THIRTY-FIRST OF EACH YEAR, A LIST ORGANIZED  BY  ZIP  CODE,  OF  ALL
   21  FINES, SUSPENSIONS, AND REVOCATIONS IMPOSED UPON LICENSEES FOR VIOLATION
   22  OF THIS SECTION.
   23    S 4. Paragraph (c) of subdivision 3 of section 442-h of the real prop-
   24  erty  law,  as amended by chapter 505 of the laws of 2001, is amended to
   25  read as follows:
   26    (c) No rule establishing a cease and desist zone  shall  be  effective
   27  for longer than five years. However, the secretary of state may re-adopt
   28  the  rule  to  continue the cease and desist zone for additional periods
   29  not to exceed five years each.  AT LEAST NINETY DAYS PRIOR TO THE  EXPI-
   30  RATION  OF  A  CEASE  AND DESIST ZONE RULE, THE SECRETARY OF STATE SHALL
   31  HOLD PUBLIC HEARINGS WITHIN EACH SUCH CEASE AND DESIST ZONE PROVIDED  IT
   32  CAN  BE  ARRANGED  AT REASONABLE COST.  AT LEAST SIXTY DAYS PRIOR TO THE
   33  EXPIRATION OF A CEASE AND DESIST ZONE,  THE  SECRETARY  OF  STATE  SHALL
   34  REPORT  TO  THE LEGISLATURE WHETHER OR NOT SUCH CEASE AND DESIST ZONE IS
   35  BEING READOPTED AND THE REASON FOR SUCH DETERMINATION. Whenever  a  rule
   36  establishing  a  cease  and desist zone shall have expired or shall have
   37  been repealed, all owner's statements filed with the secretary of  state
   38  pursuant  to  that  rule shall also expire. However, an owner may file a
   39  new statement with the secretary of state  if  a  new  rule  is  adopted
   40  establishing  a  cease  and desist zone containing the owner's property.
   41  Once the boundaries of a cease and desist zone have been established  by
   42  rule of the secretary of state, the boundaries may not be changed except
   43  by  repeal  of the existing rule and adoption of a new rule establishing
   44  the new boundaries.
   45    S 5. This act shall take effect immediately;  provided  that  sections
   46  one  and  two of this act shall take effect on the first of January next
   47  succeeding the date on which it shall have become a  law;  and  provided
   48  further  that the secretary of state is authorized to promulgate any and
   49  all rules and regulations and  take  any  other  measures  necessary  to
   50  implement this act on its effective date on or before such date.