senate Bill S4626

2013-2014 Legislative Session

Provides for the appeal of disputes between shareholders and boards of directors of residential cooperative corporations to a hearing officer appointed by the attorney general

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Apr 16, 2013 referred to corporations, authorities and commissions

S4626 - Bill Details

See Assembly Version of this Bill:
A5838
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Cooperative Corporations Law
Laws Affected:
Add §78, Coop Corps L; amd §63, Exec L
Versions Introduced in 2011-2012 Legislative Session:
S7259

S4626 - Bill Texts

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Provides for the appeal of disputes between shareholders and boards of directors of residential cooperatives to a hearing officer appointed by the attorney general.

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BILL NUMBER:S4626

TITLE OF BILL: An act to amend the cooperative corporations law and
the executive law, in relation to providing for the resolution of
disputes between the board of directors of residential cooperative
corporations and a shareholder to be determined by a hearing officer
appointed by the attorney general

PURPOSE: To provide for the appeal of disputes between shareholders
and boards of directors of residential cooperative corporations to a
neutral hearing officer appointed by the attorney general.

SUMMARY OF PROVISIONS: Section 1 of the bill adds a new section 78 to
the cooperative corporations law to provide that a shareholder in a
cooperative corporation which owns residential real property may
appeal any decision by such corporation's board of directors to a
hearing officer appointed by the attorney general. This section
further provides that a hearing upon appeal shall be heard within
sixty days, and that the hearing officer shall provide each party an
opportunity to be heard and render final determination based on the
evidence and testimony presented at the hearing.

Section 2 amends executive law § 63 by adding a new subdivision 16 to
require that the Attorney General establish an appeals process for the
determination of disputes between shareholders and the boards of
directors of cooperative corporations.

Section 3 provides the effective date

JUSTIFICATION: There have been numerous complaints by shareholders of
cooperative corporations recently in connection with unreasonable
actions taken by cooperative boards of directors. Presently,
shareholders are bound by the decision of the board without a right to
appeal to a neutral party. This bill would correct this situation by
providing shareholders with an opportunity to appeal a determination
of the board to a neutral hearing officer appointed by the attorney
general.

LEGISLATIVE HISTORY: S.7259/2012

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately, except that
section one of this act shall take effect on the first of January next
succeeding the date on which it shall have become a law.

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

                                  4626

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 16, 2013
                               ___________

Introduced  by  Sen.  BOYLE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT to amend the cooperative corporations law and the executive law,
  in relation to providing for the resolution of  disputes  between  the
  board  of  directors  of  residential  cooperative  corporations and a
  shareholder to be determined by a hearing  officer  appointed  by  the
  attorney general

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

  Section 1. The cooperative corporations law is amended by adding a new
section 78 to read as follows:
  S 78. DISPUTES TO BE HEARD BY ATTORNEY  GENERAL;  RESIDENTIAL  COOPER-
ATIVE. A SHAREHOLDER IN A COOPERATIVE CORPORATION WHICH OWNS RESIDENTIAL
REAL  PROPERTY  MAY  APPEAL  ANY DECISION BY SUCH CORPORATION'S BOARD OF
DIRECTORS TO A HEARING OFFICER APPOINTED BY THE ATTORNEY GENERAL  PURSU-
ANT  TO SUBDIVISION SIXTEEN OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW.
A HEARING UPON SUCH APPEAL SHALL BE  HEARD  WITHIN  SIXTY  DAYS  OF  THE
FILING  THEREOF  WITH THE DEPARTMENT OF LAW, WITH NOTICE TO THE BOARD OF
DIRECTORS. THE HEARING OFFICER SHALL PROVIDE EACH PARTY  AN  OPPORTUNITY
TO  BE  HEARD  AND  RENDER FINAL DETERMINATION BASED ON THE EVIDENCE AND
TESTIMONY PRESENTED AT THE HEARING.
  S 2. Section 63 of the executive law is amended by adding a new subdi-
vision 16 to read as follows:
  16. ESTABLISH AN APPEALS PROCESS FOR  THE  DETERMINATION  OF  DISPUTES
BETWEEN  SHAREHOLDERS  AND THE BOARDS OF DIRECTORS OF COOPERATIVE CORPO-
RATIONS PURSUANT TO SECTION  SEVENTY-EIGHT  OF  THE  COOPERATIVE  CORPO-
RATIONS LAW. THE ATTORNEY GENERAL SHALL APPOINT AND EMPOWER SUCH HEARING
OFFICERS AS SHALL BE NECESSARY TO HEAR AND DETERMINE SUCH APPEALS.
  S  3.  This act shall take effect immediately, except that section one
of this act shall take effect on the first of  January  next  succeeding
the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09440-01-3

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