Senate Bill S2874

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2874
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend  the  not-for-profit corporation law and the business
   corporation law, in relation to cooperative purchase applications

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The not-for-profit corporation law is amended by adding a
 new section 519-b to read as follows:
 § 519-B. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION, UPON RECEIVING AN APPLICATION FROM A PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT  OF  SUCH APPLICATION WITHIN TWENTY-ONE DAYS AND TO
 INCLUDE IN SUCH  ACKNOWLEDGEMENT  OF  RECEIPT  WHETHER  THE  APPLICATION
 SUBMITTED FULLY SATISFIES THE REQUIREMENTS THEREFOR, THE WAY OR WAYS THE
 SUBMITTED APPLICATION IS INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECES-
 SARY TO EFFECTUATE CONSIDERATION OF THE APPLICATION.
   (D)  THE  PROCESSES ESTABLISHED PURSUANT TO THIS SECTION SHALL FURTHER
 REQUIRE THAT, FOLLOWING THE SUBMISSION OF A  COMPLETED  APPLICATION  AND
 ALL  ADDITIONAL  MATERIALS  REQUESTED IN THE ACKNOWLEDGEMENT OF RECEIPT,
 THE BOARD OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER  OR  THEIR
 AGENT  THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05016-01-1

 S. 2874                             2
 
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   §  2.  The business corporation law is amended by adding a new section
 728 to read as follows:
 § 728. RESIDENTIAL COOPERATIVE CORPORATIONS; OWNERSHIP INTERESTS.
   (A) ANY RESIDENTIAL COOPERATIVE CORPORATION INCORPORATED  PURSUANT  TO
 THIS  CHAPTER,  SHALL  ESTABLISH  UNIFORM  PROCESSES FOR APPLYING TO AND
 CONSIDERING APPLICATIONS FOR THE PURCHASE OF CERTIFICATES  OF  STOCK,  A
 PROPRIETARY  LEASE  OR  OTHER  EVIDENCE OF AN OWNERSHIP INTEREST IN SUCH
 RESIDENTIAL COOPERATIVE CORPORATION.
   (B) WRITTEN NOTICE OF SUCH PROCESSES SHALL BE MADE  AVAILABLE  TO  ANY
 PROSPECTIVE PURCHASERS AND PROSPECTIVE SELLERS, OR THEIR RESPECTIVE REAL
 ESTATE AGENTS, PROMPTLY UPON REQUEST.
   (C)  AT A MINIMUM, SUCH PROCESSES SHALL REQUIRE THE COOPERATIVE CORPO-
 RATION UPON RECEIVING AN APPLICATION FROM A  PROSPECTIVE  PURCHASER,  TO
 ACKNOWLEDGE  RECEIPT OF SUCH APPLICATION AND TO INCLUDE IN SUCH ACKNOWL-
 EDGEMENT OF RECEIPT WHETHER THE APPLICATION  SUBMITTED  FULLY  SATISFIES
 THE  REQUIREMENTS THEREFOR, THE WAY OR WAYS THE SUBMITTED APPLICATION IS
 INCOMPLETE, AND ANY ADDITIONAL MATERIALS NECESSARY TO EFFECTUATE CONSID-
 ERATION OF THE APPLICATION.
   (D) THE PROCESSES ESTABLISHED PURSUANT TO THIS SECTION  SHALL  FURTHER
 REQUIRE  THAT,  FOLLOWING  THE SUBMISSION OF A COMPLETED APPLICATION AND
 ALL ADDITIONAL MATERIALS REQUESTED IN THE  ACKNOWLEDGEMENT  OF  RECEIPT,
 THE  BOARD  OF DIRECTORS SHALL NOTIFY THE PROSPECTIVE PURCHASER OR THEIR
 AGENT THAT THE APPLICATION IS COMPLETE. SUCH NOTICE SHALL STATE BY  WHAT
 DATE REVIEW OF THE APPLICATION WILL BE COMPLETE AND WHEN THE PROSPECTIVE
 PURCHASER OR THEIR AGENT WILL BE NOTIFIED WHETHER CONSENT TO THE SALE IS
 GRANTED OR DENIED.
   (E) WRITTEN NOTICE THAT CONSENT TO THE SALE HAS BEEN GRANTED OR DENIED
 SHALL  BE PROVIDED TO THE PROSPECTIVE PURCHASER NO MORE THAN NINETY DAYS
 AFTER THE SUBMISSION OF A COMPLETED APPLICATION. IN THE EVENT A SALE  IS
 DENIED, SUCH NOTICE SHALL STATE THE REASON FOR THE DENIAL. IF NO WRITTEN
 NOTICE  IS  PROVIDED  WITHIN  NINETY  DAYS, CONSENT TO THE SALE SHALL BE
 GRANTED.
   (F) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHTS  OR
 REMEDIES PROVIDED BY ANY OTHER PROVISION OF LAW.
   § 3. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.