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.
STATE OF NEW YORK
________________________________________________________________________
3894
2019-2020 Regular Sessions
IN ASSEMBLY
January 31, 2019
___________
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:
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 § 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
24 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.
LBD08421-01-9
A. 3894 2
1 person not licensed pursuant to this article who is deemed to be in
2 violation of section four hundred forty-two-h of this article, and at
3 least ten days prior to the date set for the hearing, notify in writing
4 the holder of such license or such unlicensed person of any charges made
5 and shall afford such licensee or unlicensed person an opportunity to be
6 heard in person or by counsel in reference thereto. Such written notice
7 may be served by delivery of same personally to the licensee, or by
8 mailing same by certified mail to the last known business address of
9 such licensee or unlicensed person, or by any method authorized by the
10 civil practice law and rules. If said licensee be a [salesman] salesper-
11 son, the department shall also notify the broker with whom he or she is
12 associated of the charges by mailing notice by certified mail to the
13 broker's last known business address. The hearing on such charges shall
14 be at such time and place as the department shall prescribe, which
15 place, in the case of any hearing relating to a charge arising out of an
16 alleged violation of section four hundred forty-two-h of this article,
17 shall be within the county wherein the real property in connection with
18 the charge arises is located if it can be arranged at reasonable cost.
19 § 3. Section 442-h of the real property law is amended by adding a new
20 subdivision 4 to read as follows:
21 4. The secretary of state shall publish annually, on or before Decem-
22 ber thirty-first of each year, a list organized by zip code, of all
23 fines, suspensions, and revocations imposed upon licensees for violation
24 of this section.
25 § 4. Paragraph (c) of subdivision 3 of section 442-h of the real prop-
26 erty law, as amended by chapter 505 of the laws of 2001, is amended to
27 read as follows:
28 (c) No rule establishing a cease and desist zone shall be effective
29 for longer than five years. However, the secretary of state may re-adopt
30 the rule to continue the cease and desist zone for additional periods
31 not to exceed five years each. At least ninety days prior to the expi-
32 ration of a cease and desist zone rule, the secretary of state shall
33 hold public hearings within each such cease and desist zone provided it
34 can be arranged at reasonable cost. At least sixty days prior to the
35 expiration of a cease and desist zone, the secretary of state shall
36 report to the legislature whether or not such cease and desist zone is
37 being readopted and the reason for such determination. Whenever a rule
38 establishing a cease and desist zone shall have expired or shall have
39 been repealed, all owner's statements filed with the secretary of state
40 pursuant to that rule shall also expire. However, an owner may file a
41 new statement with the secretary of state if a new rule is adopted
42 establishing a cease and desist zone containing the owner's property.
43 Once the boundaries of a cease and desist zone have been established by
44 rule of the secretary of state, the boundaries may not be changed except
45 by repeal of the existing rule and adoption of a new rule establishing
46 the new boundaries.
47 § 5. This act shall take effect immediately; provided that sections
48 one and two of this act shall take effect on the first of January next
49 succeeding the date on which it shall have become a law; and provided
50 further that the secretary of state is authorized to promulgate any and
51 all rules and regulations and take any other measures necessary to
52 implement this act on its effective date on or before such date.