S T A T E O F N E W Y O R K
________________________________________________________________________
3226
2015-2016 Regular Sessions
I N A S S E M B L Y
January 22, 2015
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Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. GLICK,
PEOPLES-STOKES -- 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07302-01-5
A. 3226 2
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
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.