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:

  Section 1. Paragraph (a) of subdivision 1 of section 441-c of the real
property law, as amended by chapter 81 of the laws of 1995,  is  amended
to read as follows:
  (a)  The  department  of state may revoke the license of a real estate
broker or salesman or suspend the same, for such period as  the  depart-
ment  may  deem  proper,  or  in  lieu thereof may impose a [fine] CIVIL
PENALTY not exceeding [one] TWO thousand dollars payable to the  depart-
ment  of  state,  or  a  reprimand  upon conviction of the licensee of a
violation of any provision of this article, or for a material  misstate-
ment  in  the application for such license, or if such licensee has been
guilty of fraud or fraudulent practices, or for dishonest or  misleading
advertising,  or  has  demonstrated untrustworthiness or incompetency to
act as a real estate broker or salesman, as the case may be. In the case
of a real estate broker engaged in the business of a  tenant  relocator,
untrustworthiness  or  incompetency shall include engaging in any course
of conduct including, but not limited to, the interruption or discontin-
uance of essential building service, that interferes  with  or  disturbs
the peace, comfort, repose and quiet enjoyment of a tenant.
  S  2.  Subdivision  2  of  section  441-e of the real property law, as
amended by chapter 505 of the laws  of  2001,  is  amended  to  read  as
follows:
  2.  Revocation, suspension, reprimands, fines. The department of state
shall, before revoking or suspending any license or imposing any fine or
reprimand on the holder thereof or before imposing  any  fine  upon  any
person  not  licensed  pursuant  to  this article who is deemed to be in
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

least  ten days prior to the date set for the hearing, notify in writing
the holder of such license or such unlicensed person of any charges made
and shall afford such licensee or unlicensed person an opportunity to be
heard  in person or by counsel in reference thereto. Such written notice
may be served by delivery of same personally  to  the  licensee,  or  by
mailing  same  by  certified  mail to the last known business address of
such licensee or unlicensed person, or by any method authorized  by  the
civil practice law and rules. If said licensee be a [salesman] SALESPER-
SON,  the department shall also notify the broker with whom he OR SHE is
associated of the charges by mailing notice by  certified  mail  to  the
broker's  last known business address. The hearing on such charges shall
be at such time and place  as  the  department  shall  prescribe,  WHICH
PLACE, IN THE CASE OF ANY HEARING RELATING TO A CHARGE ARISING OUT OF AN
ALLEGED  VIOLATION  OF SECTION FOUR HUNDRED FORTY-TWO-H OF THIS ARTICLE,
SHALL BE WITHIN THE COUNTY WHEREIN THE REAL PROPERTY IN CONNECTION  WITH
THE CHARGE ARISES IS LOCATED IF IT CAN BE ARRANGED AT REASONABLE COST.
  S 3. Section 442-h of the real property law is amended by adding a new
subdivision 4 to read as follows:
  4.  THE SECRETARY OF STATE SHALL PUBLISH ANNUALLY, ON OR BEFORE DECEM-
BER THIRTY-FIRST OF EACH YEAR, A LIST ORGANIZED  BY  ZIP  CODE,  OF  ALL
FINES, SUSPENSIONS, AND REVOCATIONS IMPOSED UPON LICENSEES FOR VIOLATION
OF THIS SECTION.
  S 4. Paragraph (c) of subdivision 3 of section 442-h of the real prop-
erty  law,  as amended by chapter 505 of the laws of 2001, is amended to
read as follows:
  (c) No rule establishing a cease and desist zone  shall  be  effective
for longer than five years. However, the secretary of state may re-adopt
the  rule  to  continue the cease and desist zone for additional periods
not to exceed five years each.  AT LEAST NINETY DAYS PRIOR TO THE  EXPI-
RATION  OF  A  CEASE  AND DESIST ZONE RULE, THE SECRETARY OF STATE SHALL
HOLD PUBLIC HEARINGS WITHIN EACH SUCH CEASE AND DESIST ZONE PROVIDED  IT
CAN  BE  ARRANGED  AT REASONABLE COST.  AT LEAST SIXTY DAYS PRIOR TO THE
EXPIRATION OF A CEASE AND DESIST ZONE,  THE  SECRETARY  OF  STATE  SHALL
REPORT  TO  THE LEGISLATURE WHETHER OR NOT SUCH CEASE AND DESIST ZONE IS
BEING READOPTED AND THE REASON FOR SUCH DETERMINATION. Whenever  a  rule
establishing  a  cease  and desist zone shall have expired or shall have
been repealed, all owner's statements filed with the secretary of  state
pursuant  to  that  rule shall also expire. However, an owner may file a
new statement with the secretary of state  if  a  new  rule  is  adopted
establishing  a  cease  and desist zone containing the owner's property.
Once the boundaries of a cease and desist zone have been established  by
rule of the secretary of state, the boundaries may not be changed except
by  repeal  of the existing rule and adoption of a new rule establishing
the new boundaries.
  S 5. This act shall take effect immediately;  provided  that  sections
one  and  two of this act shall take effect on the first of January next
succeeding the date on which it shall have become a  law;  and  provided
further  that the secretary of state is authorized to promulgate any and
all rules and regulations and  take  any  other  measures  necessary  to
implement this act on its effective date on or before such date.