S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4403

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 22, 2009
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Housing, Construction  and
  Community Development

AN ACT to amend the general business law, in relation to notification of
  cooperative or condominium self-dealing contract termination

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 352-e of the general business  law  is  amended  by
adding a new subdivision 2-d to read as follows:
  2-D.  (A)  FOR THE PURPOSES OF THIS SUBDIVISION THE TERM "SELF-DEALING
CONTRACT" SHALL BE DEFINED AS ANY CONTRACT OR PORTION THEREOF  WHICH  IS
ENTERED INTO AFTER OCTOBER EIGHTH, NINETEEN HUNDRED EIGHTY, AND WHICH:
  (I)  PROVIDES FOR OPERATION, MAINTENANCE, OR MANAGEMENT OF A CONDOMIN-
IUM OR COOPERATIVE ASSOCIATION IN A CONVERSION PROJECT, OR  OF  PROPERTY
SERVING THE CONDOMINIUM OR COOPERATIVE UNIT OWNERS IN SUCH PROJECTS;
  (II) IS BETWEEN SUCH UNIT OWNERS OR SUCH ASSOCIATION AND THE DEVELOPER
OR AN AFFILIATE OF THE DEVELOPER;
  (III)  WAS  ENTERED  INTO WHILE SUCH ASSOCIATION WAS CONTROLLED BY THE
DEVELOPER THROUGH SPECIAL DEVELOPER CONTROL  OR  BECAUSE  THE  DEVELOPER
HELD A MAJORITY OF THE VOTES IN SUCH ASSOCIATION;
  (IV) IS FOR A PERIOD OF MORE THAN THREE YEARS, INCLUDING ANY AUTOMATIC
RENEWAL  PROVISIONS  WHICH  ARE  EXERCISABLE  AT  THE SOLE OPTION OF THE
DEVELOPER OR AN AFFILIATE OF THE DEVELOPER; AND
  (V) MAY NOT BE TERMINATED WITHOUT PENALTY BY SUCH UNIT OWNERS OR  SUCH
ASSOCIATION.
  (B)  IN  THE  CASE OF OFFERINGS OF COOPERATIVES, CONDOMINIUMS OR OTHER
INTERESTS IN REALTY COVERED BY THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHT  OF  THE  CONDOMINIUM AND COOPERATIVE ABUSE RELIEF ACT OF 1980, 15
U.S.C. 3607, THE ATTORNEY GENERAL SHALL REFUSE  TO  ISSUE  A  LETTER  OF
ACCEPTANCE  UNLESS  THE  OFFERING STATEMENT, PROSPECTUS OR PLAN PROVIDES
THAT THE TENANT SHAREHOLDERS OR OWNERS  ENTITLED TO VOTE TO TERMINATE  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00485-01-9
              

S. 4403                             2

SELF-DEALING CONTRACT PURSUANT TO SUCH SECTION TWICE BE NOTIFIED OF SUCH
RIGHT  IN WRITING (I) ONCE WITHIN THIRTY DAYS OF THE DATE THAT THE RIGHT
TO TERMINATE PURSUANT TO SUBSECTION (B) OF SUCH  SECTION  COMMENCES  AND
(II)  SECONDLY  AT LEAST SIX MONTHS PRIOR TO THE DATE THAT SUCH RIGHT TO
TERMINATE WILL EXPIRE.
  S 2. This act shall take effect on the thirtieth day  after  it  shall
have  become a law and shall apply to plans for which letters of accept-
ance are issued on or after such effective date.