Bill Text: NY A01048 | 2011-2012 | General Assembly | Introduced

---

Bill Title: Increases the fine that may be imposed for violations of real estate licensing laws and provides for procedures in connection with violations involving nonsolicitation orders and cease and desist zones; provides for publication of violations; directs the secretary of state to hold public hearings within cease and desist zones prior to their expiration and report to the legislature on the decision of whether or not to readopt the rule and reasons for such decision.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-12 - enacting clause stricken [A01048 Detail]

Download: New_York-2011-A01048-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1048
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by M. of A. PHEFFER -- read once and referred to the Commit-
         tee 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:
    1    Section 1. Paragraph (a) of subdivision 1 of section 441-c of the real
    2  property  law,  as amended by chapter 81 of the laws of 1995, is amended
    3  to read as follows:
    4    (a) The department of state may revoke the license of  a  real  estate
    5  broker  or  salesman or suspend the same, for such period as the depart-
    6  ment may deem proper, or in lieu  thereof  may  impose  a  [fine]  CIVIL
    7  PENALTY  not exceeding [one] TWO thousand dollars payable to the depart-
    8  ment of state, or a reprimand upon  conviction  of  the  licensee  of  a
    9  violation  of any provision of this article, or for a material misstate-
   10  ment in the application for such license, or if such licensee  has  been
   11  guilty  of fraud or fraudulent practices, or for dishonest or misleading
   12  advertising, or has demonstrated untrustworthiness  or  incompetency  to
   13  act as a real estate broker or salesman, as the case may be. In the case
   14  of  a  real estate broker engaged in the business of a tenant relocator,
   15  untrustworthiness or incompetency shall include engaging in  any  course
   16  of conduct including, but not limited to, the interruption or discontin-
   17  uance  of  essential  building service, that interferes with or disturbs
   18  the peace, comfort, repose and quiet enjoyment of a tenant.
   19    S 2. Subdivision 2 of section 441-e  of  the  real  property  law,  as
   20  amended  by  chapter  505  of  the  laws  of 2001, is amended to read as
   21  follows:
   22    2. Revocation, suspension, reprimands, fines. The department of  state
   23  shall, before revoking or suspending any license or imposing any fine or
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00346-01-1
       A. 1048                             2
    1  reprimand  on  the  holder  thereof or before imposing any fine upon any
    2  person not licensed pursuant to this article who  is  deemed  to  be  in
    3  violation  of  section  four hundred forty-two-h of this article, and at
    4  least  ten days prior to the date set for the hearing, notify in writing
    5  the holder of such license or such unlicensed person of any charges made
    6  and shall afford such licensee or unlicensed person an opportunity to be
    7  heard in person or by counsel in reference thereto. Such written  notice
    8  may  be  served  by  delivery  of same personally to the licensee, or by
    9  mailing same by certified mail to the last  known  business  address  of
   10  such  licensee  or unlicensed person, or by any method authorized by the
   11  civil practice law and rules. If said licensee be a [salesman] SALESPER-
   12  SON, the department shall also notify the broker with whom he OR SHE  is
   13  associated  of  the  charges  by mailing notice by certified mail to the
   14  broker's last known business address. The hearing on such charges  shall
   15  be  at  such  time  and  place  as the department shall prescribe, WHICH
   16  PLACE, IN THE CASE OF ANY HEARING RELATING TO A CHARGE ARISING OUT OF AN
   17  ALLEGED VIOLATION OF SECTION FOUR HUNDRED FORTY-TWO-H OF  THIS  ARTICLE,
   18  SHALL  BE WITHIN THE COUNTY WHEREIN THE REAL PROPERTY IN CONNECTION WITH
   19  THE CHARGE ARISES IS LOCATED IF IT CAN BE ARRANGED AT REASONABLE COST.
   20    S 3. Section 442-h of the real property law is amended by adding a new
   21  subdivision 4 to read as follows:
   22    4. THE SECRETARY OF STATE SHALL PUBLISH ANNUALLY, ON OR BEFORE  DECEM-
   23  BER  THIRTY-FIRST  OF  EACH  YEAR,  A LIST ORGANIZED BY ZIP CODE, OF ALL
   24  FINES, SUSPENSIONS, AND REVOCATIONS IMPOSED UPON LICENSEES FOR VIOLATION
   25  OF THIS SECTION.
   26    S 4. Paragraph (c) of subdivision 3 of section 442-h of the real prop-
   27  erty law, as amended by chapter 505 of the laws of 2001, is  amended  to
   28  read as follows:
   29    (c)  No  rule  establishing a cease and desist zone shall be effective
   30  for longer than five years. However, the secretary of state may re-adopt
   31  the rule to continue the cease and desist zone  for  additional  periods
   32  not  to exceed five years each.  AT LEAST NINETY DAYS PRIOR TO THE EXPI-
   33  RATION OF A CEASE AND DESIST ZONE RULE, THE  SECRETARY  OF  STATE  SHALL
   34  HOLD  PUBLIC HEARINGS WITHIN EACH SUCH CEASE AND DESIST ZONE PROVIDED IT
   35  CAN BE ARRANGED AT REASONABLE COST.  AT LEAST SIXTY DAYS  PRIOR  TO  THE
   36  EXPIRATION  OF  A  CEASE  AND  DESIST ZONE, THE SECRETARY OF STATE SHALL
   37  REPORT TO THE LEGISLATURE WHETHER OR NOT SUCH CEASE AND DESIST  ZONE  IS
   38  BEING  READOPTED  AND THE REASON FOR SUCH DETERMINATION. Whenever a rule
   39  establishing a cease and desist zone shall have expired  or  shall  have
   40  been  repealed, all owner's statements filed with the secretary of state
   41  pursuant to that rule shall also expire. However, an owner  may  file  a
   42  new  statement  with  the  secretary  of  state if a new rule is adopted
   43  establishing a cease and desist zone containing  the  owner's  property.
   44  Once  the boundaries of a cease and desist zone have been established by
   45  rule of the secretary of state, the boundaries may not be changed except
   46  by repeal of the existing rule and adoption of a new  rule  establishing
   47  the new boundaries.
   48    S  5.  This  act shall take effect immediately; provided that sections
   49  one and two of this act shall take effect on the first of  January  next
   50  succeeding  the  date  on which it shall have become a law; and provided
   51  further that the secretary of state is authorized to promulgate any  and
   52  all  rules  and  regulations  and  take  any other measures necessary to
   53  implement this act on its effective date on or before such date.