S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7831
 
                             I N  S E N A T E
 
                             January 12, 2022
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the private housing finance law, in relation to  author-
   izing additional supervision and regulation of mutual companies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivisions 10, 11, 12, 13 and 14 of section 32-a  of  the
 private  housing finance law, as added by a chapter of the laws of 2021,
 amending the private housing finance law relating to  authorizing  addi-
 tional  supervision  and regulation of limited-profit housing companies,
 as proposed in legislative bills  numbers  S.  7079  and  A.  7637,  are
 amended to read as follows:
   10.  Require  every  voting member of a board of directors of a MUTUAL
 company subject to the provisions of this article, elected or  appointed
 for a term beginning on or after the effective date of this subdivision,
 to  complete, within the first year of his or her term and at least once
 every three years thereafter, a minimum of two  hours  of  training,  in
 person  or  virtually, as the commissioner or supervising agency, as the
 case may be, may deem appropriate on the financial  oversight,  account-
 ability and fiduciary responsibilities of a board member; and to require
 every  voting member of a board of directors of a MUTUAL company subject
 to the provisions of this article,  elected  or  appointed  for  a  term
 beginning  before  the  effective  date of this subdivision, to complete
 such training within one year of the effective date of this  subdivision
 and at least once every three years thereafter.
   11.  Require  every  voting member of a board of directors of a MUTUAL
 company subject to the provisions of this article, elected or  appointed
 for a term beginning on or after the effective date of this subdivision,
 to  complete, within the first year of his or her term and at least once
 every three years thereafter, in addition to the  training  required  by
 subdivision  ten of this section, a training course, in person or virtu-
 ally, as the commissioner or supervising agency, as  the  case  be,  may
 deem  appropriate, to acquaint him or her with the powers, functions and
 duties of a board of directors  of  a  MUTUAL  company  subject  to  the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11105-02-2
 S. 7831                             2
 
 provisions  of  this  article, as well as the powers and duties of other
 governing and administrative authorities affecting such  companies;  and
 to  require  every  voting  member  of  a board of directors of a MUTUAL
 company  subject to the provisions of this article, elected or appointed
 for a term beginning before the effective date of this  subdivision,  to
 complete  such  training  within  one year of the effective date of this
 subdivision and at least once every three years thereafter.
   12. Require each member of a board of directors of  a  MUTUAL  company
 subject to the provisions of this article to demonstrate compliance with
 the  requirements  set  forth  in  subdivisions  ten  and eleven of this
 section by filing a certificate of completion of such course or  courses
 on  a  form  to  be  promulgated by the commissioner. Such form shall be
 filed with the secretary of the [housing corporation] MUTUAL COMPANY and
 maintained by the secretary as a corporate record and distributed  annu-
 ally  to  the  shareholders and upon the filing of any director with the
 MUTUAL company of the intention to seek  re-election  to  the  position.
 Sixty  days  prior  to any scheduled election of members of the board of
 directors, the secretary of the [housing] MUTUAL company  shall  furnish
 the  commissioner or the supervising authority, as the case may be, with
 a list of all incumbent  directors  indicating  which  individuals  have
 submitted  certificates  required  in this subdivision.   Such course or
 courses shall be provided by the commissioner or supervising agency,  as
 the  case  may  be,  at no cost to the trainee or the board to which the
 trainee has been elected.
   13. Develop the curricula used for training required  by  subdivisions
 ten  and  eleven of this section for which the supervising agency or the
 commissioner may request and shall receive the cooperation  and  assist-
 ance  from  any  departments, divisions, boards, bureaus, commissions or
 agencies of the state and political subdivisions thereof  in  developing
 such  curricula.  These  curricula  may  be offered together as a single
 course or separately. The training  required  by  this  section  may  be
 offered by providers approved by the commissioner or supervising agency,
 as  the  case  may be. In approving other providers for these trainings,
 the commissioner  or  supervising  agency  shall  consider  a  potential
 provider's  understanding  of cooperative homeownership; laws, rules and
 regulations affecting MUTUAL companies subject to the provisions of this
 article; and the fiduciary responsibilities of the board of  a  residen-
 tial  cooperative, as well as the experience of the provider in deliver-
 ing such training.
   14. Hold such meeting or meetings,  in  person  or  virtually  as  the
 commissioner  or  supervisory  agency  shall  deem appropriate, with the
 board of a MUTUAL company on the financial oversight, accountability and
 fiduciary responsibilities of such  board;  the  powers,  functions  and
 duties  of  such board; and the powers and duties of other governing and
 administrative authorities affecting such company.
   § 2. This act shall take effect on the  same  date  and  in  the  same
 manner  as  a  chapter of the laws of 2021, amending the private housing
 finance law relating to authorizing  additional  supervision  and  regu-
 lation  of  limited-profit housing companies, as proposed in legislative
 bills numbers S. 7079 and A. 7637, takes effect.