S T A T E O F N E W Y O R K
________________________________________________________________________
6822
2017-2018 Regular Sessions
I N A S S E M B L Y
March 21, 2017
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Introduced by M. of A. HUNTER -- read once and referred to the Committee
on Housing
AN ACT to amend the multiple dwelling law and the limited liability
company law, in relation to liability and penalties for illegal
conversion
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The multiple dwelling law is amended by adding a new
section 170-b to read as follows:
§ 170-B. ILLEGAL CONVERSION. 1. FOR THE PURPOSES OF THIS SECTION, AN
ILLEGAL CONVERSION SHALL MEAN ANY CHANGE IN THE STRUCTURAL PARTS OR
EXISTING FACILITIES OF ANY BUILDING, INCLUDING, BUT NOT LIMITED TO, THE
SUBDIVISION OF ROOMS, OR ERECTION OR DEMOLITION OF WALLS, OR THE MOVING
OF ANY BUILDING FROM ONE LOCATION OR POSITION TO ANOTHER, IN VIOLATION
OF ANY STATE OR LOCAL LAW, ORDINANCE, CODE OR RULE OR REGULATION RELAT-
ING TO REAL PROPERTY, BUILDINGS OR MULTIPLE DWELLINGS.
2. A PERSON OR ENTITY WHO IS FOUND TO HAVE VIOLATED THE PROVISIONS OF
SUBDIVISION ONE OF THIS SECTION SHALL BE COMPELLED TO REMIT TO THE
DEPARTMENT OF TAXATION AND FINANCE THE TOTAL OF ALL TAX CREDITS AND/OR
REBATES RECEIVED IN THE CALENDAR YEAR IN WHICH SUCH PERSON OR ENTITY IS
FOUND TO HAVE COMMITTED SUCH VIOLATION WITHIN THIRTY DAYS AFTER NOTICE
OF THE VIOLATION. IN ADDITION, SUCH DEPARTMENT SHALL FORWARD TO THE
INTERNAL REVENUE SERVICE THE NAME AND ADDRESS OF ANY PERSON OR ENTITY
THAT HAS BEEN FOUND TO HAVE VIOLATED THE PROVISIONS OF SUBDIVISION ONE
OF THIS SECTION.
3. IN THE CASE OF AN ILLEGAL CONVERSION AUTHORIZED OR UNDERTAKEN BY A
LIMITED LIABILITY CORPORATION, THE ATTORNEY GENERAL MAY, IN HIS OR HER
DISCRETION, APPLY TO THE SUPREME COURT OF THE COUNTY IN WHICH THE REAL
PROPERTY THAT IS SUBJECT OF SUCH ILLEGAL CONVERSION LIES, FOR JUDICIALLY
DECREED DISSOLUTION PURSUANT TO SECTION SEVEN HUNDRED TWO OF THE LIMITED
LIABILITY COMPANY LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09595-01-7
A. 6822 2
4. FOR EACH DAY THAT SUCH PAYMENT TO THE DEPARTMENT OF TAXATION AND
FINANCE IS DELINQUENT, INTEREST SHALL ACCRUE TO BE PAID BY SUCH VIOLA-
TOR. FAILURE TO REMIT PURSUANT TO SUBDIVISION TWO OF THIS SECTION TO THE
DEPARTMENT OF TAXATION AND FINANCE ON THE TOTAL AMOUNT SHALL RESULT IN A
LATE PAYMENT PENALTY IN THE AMOUNT OF ONE PERCENT PER DAY UNTIL THE
PAYMENT IS MADE.
§ 2. Section 702 of the limited liability company law is amended to
read as follows:
§ 702. Judicial dissolution. 1. On application by or for a member,
the supreme court in the judicial district in which the office of the
limited liability company is located may decree dissolution of a limited
liability company whenever it is not reasonably practicable to carry on
the business in conformity with the articles of organization or operat-
ing agreement. A certified copy of the order of dissolution shall be
filed by the applicant with the department of state within thirty days
of its issuance.
2. ON APPLICATION BY THE ATTORNEY GENERAL, THE SUPREME COURT IN THE
JUDICIAL DISTRICT IN WHICH THE OFFICE OF THE LIMITED LIABILITY COMPANY
IS LOCATED MAY DECREE DISSOLUTION OF A LIMITED LIABILITY COMPANY WHENEV-
ER SUCH COMPANY IS FOUND TO HAVE VIOLATED THE PROVISIONS OF SECTION ONE
HUNDRED SEVENTY-B OF THE MULTIPLE DWELLING LAW.
§ 3. This act shall take effect on the ninetieth day after it shall
have become a law.