Bill Text: NY S00198 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires residential real property managers or any firm employing a property manager, contracting with a property manager or contracting to provide a property manager to file a registration statement with the secretary of state and to be certified from an approved certifying organization.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-04-29 - PRINT NUMBER 198A [S00198 Detail]

Download: New_York-2015-S00198-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          198
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 7, 2015
                                      ___________
       Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary
       AN ACT to amend the real property law, in relation to providing  certif-
         ication and registration requirements for property managers of cooper-
         atives and condominiums
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The real property law is amended by adding  a  new  article
    2  12-D to read as follows:
    3                                 ARTICLE 12-D
    4                        RESIDENTIAL REALTY MANAGEMENT
    5  SECTION 448. RESIDENTIAL REALTY MANAGEMENT.
    6    S  448.  RESIDENTIAL  REALTY  MANAGEMENT.  1. AS USED IN THIS ARTICLE,
    7  UNLESS THE CONTEXT OTHERWISE REQUIRES:
    8    (A) "CERTIFICATION" SHALL MEAN A DESIGNATION BY THE SECRETARY OF STATE
    9  THAT AN INDIVIDUAL HAS MET THE PREDETERMINED  QUALIFICATIONS  WHICH  ARE
   10  DEEMED  TO  CONSTITUTE  A  LEVEL  OF PROFICIENCY ADEQUATE TO PERFORM THE
   11  DAY-TO-DAY MANAGEMENT AND OPERATION OF REAL PROPERTY USED  FOR  RESIDEN-
   12  TIAL PURPOSES AND OWNED AS A COOPERATIVE OR CONDOMINIUM.
   13    (B) "PROPERTY MANAGER" SHALL MEAN ANY PERSON WHO, IN RETURN FOR REMUN-
   14  ERATION OR COMPENSATION OF ANY KIND, PERFORMS RESIDENTIAL REALTY MANAGE-
   15  MENT  FOR REAL PROPERTY OWNED AS A CONDOMINIUM OR COOPERATIVE.  PROPERTY
   16  MANAGER SHALL NOT MEAN OR INCLUDE:
   17    (1) A SHAREHOLDER OR OWNER OF THE COOPERATIVE OR CONDOMINIUM ACTING AS
   18  A PROPERTY MANAGER WITHOUT REMUNERATION OR COMPENSATION OF ANY KIND; OR
   19    (2) ANY DEVELOPER OR SPONSOR OF A COOPERATIVE  OR  CONDOMINIUM  DURING
   20  THE  PERIOD THAT THE DEVELOPER OR SPONSOR RETAINS CONTROL OF THE COOPER-
   21  ATIVE OR CONDOMINIUM; PROVIDED THAT THE DEVELOPER OR SPONSOR HAS IN  ITS
   22  EMPLOY OR HAS RETAINED A PROPERTY MANAGER CERTIFIED UNDER THIS ARTICLE.
   23    (C) "RESIDENTIAL REALTY MANAGEMENT" SHALL MEAN EITHER:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01234-01-5
       S. 198                              2
    1    (1)  THE  PERFORMANCE  OF  PRINCIPAL MANAGERIAL RESPONSIBILITIES FOR A
    2  COOPERATIVE OR CONDOMINIUM; AND THE AUTHORITY FOR  POLICY  OR  FINANCIAL
    3  DECISION  MAKING  FOR  ANY  ONE  OF THE FOLLOWING SERVICES: MAINTENANCE,
    4  SECURITY, ENERGY CONSERVATION, CODE COMPLIANCE, LABOR RELATIONS,  FISCAL
    5  BUDGETARY  RESPONSIBILITIES,  TENANT  RELATIONS, GOVERNMENTAL RELATIONS,
    6  JANITORIAL SERVICES OR ANY OTHER PROVIDED SERVICE; OR
    7    (2) THE RESPONSIBILITY FOR THE COLLECTION AND  EXPENDITURE  OF  MONIES
    8  FOR  AND ON BEHALF OF SUCH COOPERATIVE OR CONDOMINIUM, ITS OWNERS AND/OR
    9  MANAGING BOARD, UNDER WHATEVER NAME KNOWN.
   10    2. NO PERSON SHALL PERFORM RESIDENTIAL REALTY MANAGEMENT  UNLESS  SUCH
   11  PERSON  SHALL  HAVE FILED A PROPERTY MANAGER REGISTRATION STATEMENT WITH
   12  THE SECRETARY OF STATE AS REQUIRED BY THIS SECTION AND HAS  BEEN  ISSUED
   13  BY  THE  SECRETARY OF STATE A CERTIFICATE DEMONSTRATING THAT SUCH REGIS-
   14  TRANT HAS SATISFIED ALL THE REQUIREMENTS FOR CERTIFICATION AS A PROPERTY
   15  MANAGER AS SET FORTH BY THIS ARTICLE.
   16    NO COOPERATIVE OR CONDOMINIUM BOARD SHALL EMPLOY ANY  PERSON  FOR  THE
   17  PURPOSE  OF  PERFORMING RESIDENTIAL REALTY MANAGEMENT UNLESS SUCH PERSON
   18  HAS BEEN CERTIFIED BY THE OFFICE OF THE SECRETARY OF  STATE.  NOR  SHALL
   19  THE  COOPERATIVE  OR  CONDOMINIUM  BOARD  EMPLOY  ANY FIRM, PARTNERSHIP,
   20  CORPORATION OR OTHER ENTITY UNLESS ITS PROPERTY MANAGERS  ARE  CERTIFIED
   21  BY THE OFFICE OF THE SECRETARY OF STATE.
   22    3.  THE  SECRETARY OF STATE SHALL PROMULGATE THE FORM OF THE REGISTRA-
   23  TION STATEMENT TO BE KNOWN AS THE "PROPERTY MANAGER REGISTRATION  STATE-
   24  MENT."  THE  PROPERTY MANAGER REGISTRATION STATEMENT FORM SHALL REQUIRE,
   25  BUT NEED NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
   26    (A) THE NAME AND ADDRESS OF THE  PERSON  FILING  THE  REGISTRATION  TO
   27  OBTAIN CERTIFICATION PURSUANT TO THIS ARTICLE;
   28    (B)  THE NAME AND ADDRESS OF THE CORPORATION, FIRM, ASSOCIATION, PART-
   29  NERSHIP OR OTHER ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
   30    (C) THE NAME AND ADDRESS OF  ALL  PARTNERS,  OFFICERS,  DIRECTORS  AND
   31  PRINCIPALS  OF SUCH CORPORATION, FIRM, ASSOCIATION, PARTNERSHIP OR OTHER
   32  ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
   33    (D) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   34    (1) BEEN CONVICTED OF ANY CRIME INVOLVING FRAUD OR DISHONESTY  OR  HAD
   35  ANY CIVIL JUDGMENTS RELATING TO WORK AS A REAL PROPERTY MANAGER;
   36    (2)  EVER  HAD A REAL ESTATE BROKER'S LICENSE, AND IF SO, WHETHER SUCH
   37  LICENSE WAS EVER REVOKED OR SUSPENDED;
   38    (3) AT ANY TIME IN THE PAST BEEN ISSUED A  CERTIFICATION  PURSUANT  TO
   39  THIS  SECTION, AND IF SO, WHETHER SUCH CERTIFICATION WAS EVER REVOKED OR
   40  SUSPENDED;
   41    (E) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN ENGAGED IN RESIDEN-
   42  TIAL REALTY MANAGEMENT WHERE APPLICABLE AND A LIST OF EACH BUILDING  FOR
   43  WHICH THE REGISTRANT HAS PERFORMED RESIDENTIAL REALTY MANAGEMENT AND THE
   44  DATES AND ADDRESSES THEREOF;
   45    (F)  THE  NAME  AND  ADDRESS OF THE APPROVED PROPERTY MANAGER TRAINING
   46  PROGRAM THAT THE APPLICANT HAS SATISFACTORILY COMPLETED AND THE DATE  OF
   47  SUCH COMPLETION, IF REQUIRED; AND
   48    (G) A SWORN STATEMENT BY THE PROPERTY MANAGER THAT THE INFORMATION SET
   49  FORTH IN THE STATEMENT IS CURRENT AND ACCURATE.
   50    4.  EVERY  CERTIFICATION  ISSUED  PURSUANT  TO  THIS  SECTION SHALL BE
   51  RENEWED AS SET FORTH BY THE SECRETARY OF STATE BUT IN NO EVENT SHALL THE
   52  TERM OF SUCH CERTIFICATION EXCEED TWO  YEARS.  THE  SECRETARY  OF  STATE
   53  SHALL  COLLECT  A  FEE  OF FIFTY DOLLARS FOR EACH CERTIFICATION AND EACH
   54  RENEWAL PURSUANT TO THIS SECTION.
   55    5. A CERTIFIED PROPERTY MANAGER SHALL  GIVE  THE  SECRETARY  OF  STATE
   56  WRITTEN  NOTIFICATION  WITHIN  FORTY-FIVE DAYS OF ANY MATERIAL CHANGE OF
       S. 198                              3
    1  CIRCUMSTANCES WHICH VARIES FROM THE INFORMATION CONTAINED IN HIS OR  HER
    2  SWORN PROPERTY MANAGER REGISTRATION STATEMENT PREVIOUSLY PROVIDED TO THE
    3  SECRETARY OF STATE INCLUDING, BUT NOT LIMITED TO, CHANGES IN EMPLOYMENT,
    4  RETIREMENT, RESIGNATION OR TERMINATION.
    5    6.  THE SECRETARY OF STATE, UPON THE RECEIPT AND REVIEW OF A SATISFAC-
    6  TORILY COMPLETED PROPERTY MANAGER REGISTRATION STATEMENT,  MAY  ISSUE  A
    7  CERTIFICATION TO ANY APPLICANT WHO HAS:
    8    (A)  (1)  SUCCESSFULLY COMPLETED A   PROPERTY MANAGER TRAINING PROGRAM
    9  APPROVED BY THE SECRETARY OF STATE WHICH PROVIDES THE APPLICANT WITH THE
   10  REQUISITE SKILLS, KNOWLEDGE AND TRAINING NECESSARY TO  PERFORM  RESIDEN-
   11  TIAL REALTY MANAGEMENT AS DEFINED BY PARAGRAPH (C) OF SUBDIVISION ONE OF
   12  THIS  SECTION,  OR  (2) BEEN GAINFULLY EMPLOYED AS A PROPERTY MANAGER AS
   13  DEFINED IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION FOR THE FIVE
   14  YEARS IMMEDIATELY PRECEDING ENACTMENT OF THIS SECTION; AND
   15    (B) HAS MET ANY OTHER CRITERIA ESTABLISHED BY THE SECRETARY  OF  STATE
   16  IN  ORDER TO BE ELIGIBLE TO RECEIVE CERTIFICATION AS A PROPERTY MANAGER;
   17  OR
   18    (C) HAS DEMONSTRATED, IN THE CASE  OF  A  CERTIFIED  PROPERTY  MANAGER
   19  APPLYING  FOR  RECERTIFICATION, THE COMPETENCY AND INTEGRITY TO CONTINUE
   20  TO PERFORM THE DUTIES OF A PROPERTY MANAGER AND HAS NOT HAD SUCH CERTIF-
   21  ICATION REVOKED.
   22    THE SECRETARY OF STATE MAY REFUSE   TO  ISSUE  A  CERTIFICATE  TO  ANY
   23  PERSON WHO HE OR SHE FINDS, AFTER NOTICE AND HEARING, HAS BEEN CONVICTED
   24  OF ANY CRIME INVOLVING FRAUD OR DISHONESTY, OR WHERE REFUSAL WILL IN HIS
   25  OR HER JUDGMENT, BEST PROMOTE THE INTERESTS OF THE PEOPLE OF THIS STATE.
   26    7. THE SECRETARY OF STATE SHALL ESTABLISH PROCEDURES AND CRITERIA, AND
   27  SHALL  PROMULGATE REGULATIONS, FOR: (A) APPROVING OR DISAPPROVING APPLI-
   28  CATIONS FOR CERTIFICATIONS TO ACT AS A PROPERTY  MANAGER;  AND  (B)  THE
   29  APPROVAL  OF AND THE PERIODIC REVIEW OF CERTIFICATION TRAINING PROGRAMS.
   30  ANY COMPLAINT IN CONNECTION WITH AN ACTION  TAKEN  OR  INACTION  BY  THE
   31  SECRETARY  OF STATE PURSUANT TO THIS ARTICLE SHALL BE WITHIN THE PURVIEW
   32  OF THE SECRETARY OF STATE.  IN ESTABLISHING THE PROCEDURES  REQUIRED  BY
   33  THIS  SUBDIVISION, THE SECRETARY OF STATE MAY PROVIDE THAT ANY ORGANIZA-
   34  TION WHICH HAS BEEN DESIGNATED BY THE FEDERAL DEPARTMENT OF HOUSING  AND
   35  URBAN  DEVELOPMENT AS AN APPROVED CERTIFICATION TRAINING PROGRAM MAY ACT
   36  AS SUCH PURSUANT TO THIS ARTICLE.
   37    8. THE SECRETARY OF STATE MAY  REFUSE  TO  RENEW,  OR  MAY  REVOKE  OR
   38  SUSPEND  THE CERTIFICATION OF ANY PROPERTY MANAGER, IF, AFTER NOTICE AND
   39  HEARING, HE OR SHE FINDS THAT SUCH PROPERTY MANAGER HAS FAILED TO COMPLY
   40  WITH ANY OF THE REQUIREMENTS IMPOSED BY THE PROVISIONS HEREIN AND IF  IN
   41  HIS  OR  HER JUDGMENT SUCH SUSPENSION OR REVOCATION IS REASONABLY NECES-
   42  SARY TO PROTECT THE INTERESTS OF THE PEOPLE OF THIS STATE. THE SECRETARY
   43  OF STATE MAY IN HIS OR HER DISCRETION REINSTATE SUCH CERTIFICATION WHERE
   44  SUCH GROUNDS FOR SUSPENSION OR REVOCATION NO LONGER EXISTS.
   45    9. THE PROVISIONS OF THIS SECTION SHALL  NOT  APPLY  TO  ANY  PROPERTY
   46  MANAGER  OR ANY FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY AFFILIATE
   47  OF SUCH FIRM, ASSOCIATION, PARTNERSHIP OR ENTITY  EMPLOYING  A  PROPERTY
   48  MANAGER, CONTRACTING WITH A PROPERTY MANAGER OR CONTRACTING TO PROVIDE A
   49  PROPERTY MANAGER, IF ALL THE CONDOMINIUMS OR COOPERATIVES FOR WHICH SUCH
   50  PROPERTY  MANAGER, FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY AFFIL-
   51  IATE OF SUCH FIRM, ASSOCIATION, PARTNERSHIP OR ENTITY PERFORMS  SERVICES
   52  COMPRISES LESS THAN TWENTY-FIVE RESIDENTIAL UNITS.
   53    10. ANY PROPERTY MANAGER OR ANY FIRM, ASSOCIATION, PARTNERSHIP, CORPO-
   54  RATION  OR  OTHER ENTITY, OTHER THAN A COOPERATIVE OR CONDOMINIUM BOARD,
   55  EMPLOYING A PROPERTY MANAGER, CONTRACTING WITH  A  PROPERTY  MANAGER  OR
   56  CONTRACTING  TO PROVIDE A PROPERTY MANAGER THAT FAILS TO COMPLY WITH THE
       S. 198                              4
    1  REQUIREMENTS OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY NOT  TO
    2  EXCEED  ONE  THOUSAND  DOLLARS  FOR A FIRST VIOLATION, TWO THOUSAND FIVE
    3  HUNDRED DOLLARS FOR A SECOND VIOLATION, AND FIVE THOUSAND DOLLARS FOR  A
    4  THIRD OR SUBSEQUENT VIOLATION.
    5    ANY COOPERATIVE OR CONDOMINIUM BOARD WHICH KNOWINGLY HIRES AN UNREGIS-
    6  TERED  PROPERTY  MANAGER MAY BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED
    7  ONE THOUSAND DOLLARS.
    8    11. ALL MONIES COLLECTED WHILE PERFORMING RESIDENTIAL  REALTY  MANAGE-
    9  MENT  SHALL  BE SEGREGATED AND SEPARATE ACCOUNTS SHALL BE MAINTAINED FOR
   10  EACH CONDOMINIUM OR COOPERATIVE BEING MANAGED.  ANY  VIOLATION  OF  THIS
   11  PROVISION  SHALL  CONSTITUTE  A  MISDEMEANOR PUNISHABLE BY A FINE NOT TO
   12  EXCEED FIVE THOUSAND DOLLARS.
   13    12. WHEN A PROPERTY  MANAGER  CEASES  TO  PERFORM  RESIDENTIAL  REALTY
   14  MANAGEMENT  SERVICES  FOR  A  COOPERATIVE  OR  CONDOMINIUM, THE PROPERTY
   15  MANAGER WITHIN TEN BUSINESS DAYS SHALL BE  REQUIRED  TO  TURN  OVER  ALL
   16  BUILDING  RECORDS  AND ALL FUNDS, WHICH HAVE BEEN PLACED INTO HIS OR HER
   17  CARE OR ARE IN HIS OR HER POSSESSION, TO THE BOARD OF DIRECTORS  OF  THE
   18  COOPERATIVE  OR  BOARD OF MANAGERS OF THE CONDOMINIUM OR THEIR DESIGNEE.
   19  NEVERTHELESS, SUCH FUNDS AND/OR RECORDS  REQUIRING  BANK  RECONCILIATION
   20  SHALL BE TURNED OVER WITHIN FORTY-FIVE DAYS OF TERMINATION.
   21    13.  THE  ATTORNEY  GENERAL  SHALL  HAVE  THE  POWER  TO  ENFORCE  THE
   22  PROVISIONS OF THIS ARTICLE.
   23    S 2. This act shall take effect on the ninetieth day  after  it  shall
   24  have  become  a law, except that any rules and regulations necessary for
   25  the timely implementation of this act on its  effective  date  shall  be
   26  promulgated  on or before such date; provided, however, that subdivision
   27  2 of section 448 of the real property law, as added by  section  one  of
   28  this act, shall take effect January 1, 2016.