Bill Text: NY S03051 | 2011-2012 | General Assembly | Introduced
Bill Title: Provides for the licensing of individuals and companies engaged in the business of residential realty management; imposes a one hundred fifty dollar annual registration fee; further imposes on every residential real property owner a fiduciary responsibility for all funds received or collected on behalf of the owner and tenants of multiple dwellings; grants secretary of state authority to revoke or suspend a license of a residential real property manager; provides for judicial review under an article 78 proceeding for denial, revocation or suspension of such license; directs attorney general to prosecute any criminal actions for violations; sets forth license requirements, fees, penalties for violations and related matters.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-07 - REFERRED TO JUDICIARY [S03051 Detail]
Download: New_York-2011-S03051-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3051 2011-2012 Regular Sessions I N S E N A T E February 7, 2011 ___________ Introduced by Sen. KRUGER -- 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 licensing of resi- dential realty managers 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 MANAGERS 5 SECTION 448. DEFINITIONS. 6 448-A. LICENSE REQUIRED FOR RESIDENTIAL REAL PROPERTY MANAGE- 7 MENT. 8 448-B. REQUIREMENTS FOR A PROFESSIONAL LICENSE AS A RESIDENTIAL 9 REAL PROPERTY MANAGER. 10 448-C. OFFICIAL REGISTRY OF RESIDENTIAL REAL PROPERTY MANAGERS 11 TO BE KEPT BY THE SECRETARY. 12 448-D. ANNUAL REGISTRATION OF RESIDENTIAL REAL PROPERTY MANAG- 13 ERS. 14 448-E. RENEWAL OF LICENSES. 15 448-F. FIDUCIARY CAPACITY OF RESIDENTIAL REAL PROPERTY MANAGERS. 16 448-G. REVOCATION OR SUSPENSION OF LICENSE OF RESIDENTIAL REAL 17 PROPERTY MANAGER. 18 448-H. DENIAL OF LICENSE. 19 448-I. JUDICIAL REVIEW. 20 448-J. PENALTIES FOR VIOLATIONS. 21 448-K. STAY OR SUSPENSION OF SECRETARY'S DETERMINATION. 22 448-L. RULES AND REGULATIONS. 23 S 448. DEFINITIONS. 1. WHENEVER USED IN THIS ARTICLE THE TERM "RESI- 24 DENTIAL REAL PROPERTY MANAGEMENT" SHALL MEAN ONLY THE SUPERVISION OF THE 25 PERFORMANCE AND THE SERVICES TO BE RENDERED WITHIN A MULTIPLE DWELLING, EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06429-01-1 S. 3051 2 1 BY ALL PERSONNEL. SUCH SERVICES REQUIRING SUPERVISION SHALL INCLUDE: 2 MAINTENANCE, TECHNICAL ASSESSMENTS, SECURITY, ENERGY CONSERVATION, CODE 3 COMPLIANCES, LABOR RELATIONS, FISCAL BUDGETARY RESPONSIBILITIES, TENANT 4 RELATIONS, GOVERNMENTAL RELATIONS AND JANITORIAL SERVICES. 5 2. THE TERM "RESIDENTIAL REAL PROPERTY MANAGER" SHALL MEAN A PERSON, 6 FIRM, ASSOCIATION OR CORPORATION, WHO PERFORMS SUPERVISORY RESIDENTIAL 7 REALTY MANAGEMENT SERVICES, EXCEPT THAT SUCH TERM SHALL NOT INCLUDE: (A) 8 ANY REGULARLY SALARIED OFFICER OR EMPLOYEE OF A RESIDENTIAL REAL PROPER- 9 TY MANAGER OR REALTY MANAGER WHO DOES NOT PERFORM RESIDENTIAL REAL PROP- 10 ERTY MANAGEMENT SERVICES OR WHOSE COMPENSATION IS NOT DIRECTLY DEPENDENT 11 UPON THE PERFORMANCE OF RESIDENTIAL REAL PROPERTY MANAGEMENT SERVICES; 12 (B) THE OWNER OF AN OWNER OCCUPIED MULTIPLE DWELLING; (C) ANY TENANT 13 ASSOCIATION; AND (D) ANY OWNER OF A DWELLING OF A MAXIMUM OF SIX UNITS, 14 WHICH SAID OWNER MAINTAINS, REPAIRS, OR OTHERWISE MANAGES HIMSELF OR 15 HERSELF, UNLESS SAID OWNER SHALL CHOOSE TO BECOME LICENSED HEREUNDER. 16 3. THE TERM "SECRETARY" MEANS THE SECRETARY OF STATE. 17 4. THE TERM "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF STATE. 18 5. THE TERM "LICENSEE" SHALL MEAN ANY PERSON, FIRM, ASSOCIATION OR 19 CORPORATION, THAT HAS BEEN GRANTED A LICENSE TO ENGAGE IN RESIDENTIAL 20 REAL PROPERTY MANAGEMENT. 21 6. THE TERM "SUPERVISION" SHALL MEAN THE ADMINISTRATION, MANAGEMENT, 22 DIRECTION AND CONTROL OF THE DAILY OPERATION OF A RESIDENTIAL REAL PROP- 23 ERTY MANAGEMENT OFFICE. 24 S 448-A. LICENSE REQUIRED FOR RESIDENTIAL REAL PROPERTY MANAGEMENT. NO 25 PERSON, FIRM, ASSOCIATION OR CORPORATION SHALL ACT AS A RESIDENTIAL REAL 26 PROPERTY MANAGER IN THIS STATE OR USE THE TITLE "RESIDENTIAL REAL PROP- 27 ERTY MANAGER" WITHOUT HAVING AUTHORITY TO DO SO BY VIRTUE OF A LICENSE 28 ISSUED AND IN FORCE PURSUANT TO THE PROVISIONS OF THIS ARTICLE OR EXEMPT 29 FROM THE LICENSURE REQUIREMENTS OF THIS SECTION. 30 S 448-B. REQUIREMENTS FOR A PROFESSIONAL LICENSE AS A RESIDENTIAL REAL 31 PROPERTY MANAGER. 1. THE SECRETARY MAY ISSUE A LICENSE TO ANY PERSON, 32 FIRM, ASSOCIATION OR CORPORATION WHO HAS COMPLIED WITH THE REQUIREMENTS 33 OF THIS SECTION, AND SUCH REGULATIONS AS THE SECRETARY SHALL PROMULGATE 34 AUTHORIZING SUCH LICENSEE TO ACT AS A RESIDENTIAL REAL PROPERTY MANAGER 35 TO REPRESENT TO THE PUBLIC THAT HE IS A RESIDENTIAL REAL PROPERTY MANAG- 36 ER. 37 2. ANY SUCH LICENSE ISSUED TO A FIRM OR ASSOCIATION SHALL AUTHORIZE 38 ONLY THE MEMBERS THEREOF, NAMED IN SUCH LICENSE AS LICENSEES, TO ACT 39 INDIVIDUALLY AS RESIDENTIAL REAL PROPERTY MANAGERS THEREUNDER; ANY SUCH 40 LICENSE ISSUED TO A CORPORATION SHALL AUTHORIZE ONLY THE OFFICERS AND 41 DIRECTORS THEREOF, NAMED IN SUCH LICENSE AS LICENSEES, TO ACT INDIVID- 42 UALLY AS RESIDENTIAL REAL PROPERTY MANAGERS THEREUNDER. 43 3. EVERY INDIVIDUAL APPLICANT FOR A LICENSE UNDER THIS ARTICLE AND 44 EVERY PROPOSED LICENSEE SHALL: 45 (A) BE EIGHTEEN YEARS OF AGE OR OVER AT THE TIME OF THE ISSUANCE OF 46 SUCH LICENSE; 47 (B) BE A UNITED STATES CITIZEN OR AN ALIEN LAWFULLY ADMITTED FOR 48 PERMANENT RESIDENCE IN THE UNITED STATES; 49 (C) HAVE RECEIVED AN EDUCATION AT AN INSTITUTION APPROVED BY THE 50 SECRETARY AND THE COMMISSIONER OF EDUCATION INCLUDING STUDIES IN THE 51 OPERATIONS (TECHNICAL AND ADMINISTRATIVE), MAINTENANCE, SECURITY, ENERGY 52 CONSERVATION OF MULTIPLE DWELLINGS, THE OPERATION AND MAINTENANCE OF ALL 53 EQUIPMENT, MACHINERY AND FACILITIES OF MULTIPLE DWELLINGS; AND HAVE A 54 KNOWLEDGE AND UNDERSTANDING OF THE BASIC PRINCIPLES OF THE LAW OF AGEN- 55 CY, CONTRACTS, LABOR RELATIONS AND TENANT RELATIONS; S. 3051 3 1 (D) FILE WITH THE DEPARTMENT AT ITS OFFICE IN ALBANY AN APPLICATION 2 FOR THE TYPE OF LICENSE DESIRED, IN SUCH FORM AND DETAIL AS THE DEPART- 3 MENT SHALL PRESCRIBE, SETTING FORTH THE FOLLOWING: (I) THE NAME AND 4 ADDRESS OF THE APPLICANT, AND IF AN INDIVIDUAL THE NAME UNDER WHICH HE 5 INTENDS TO CONDUCT BUSINESS; IF THE APPLICANT BE A FIRM OR ASSOCIATION 6 THE NAME AND RESIDENCE ADDRESS OF EACH MEMBER THEREOF AND THE NAME UNDER 7 WHICH THE BUSINESS IS TO BE CONDUCTED; OR, IF THE APPLICANT BE A CORPO- 8 RATION, THE NAME OF THE CORPORATION AND THE NAME AND RESIDENCE ADDRESS 9 OF EACH OF ITS OFFICERS; AND (II) THE PLACE OR PLACES, INCLUDING THE 10 CITY, TOWN OR VILLAGE, WITH THE STREET AND NUMBER, WHERE THE BUSINESS IS 11 TO BE CONDUCTED; AND 12 (E) FURNISH THE DEPARTMENT WITH SUCH FURTHER INFORMATION AS IT MAY 13 REQUIRE INCLUDING SUFFICIENT PROOF OF HAVING TAKEN AND PASSED A WRITTEN 14 EXAMINATION AND ANSWERED SUCH QUESTIONS AS MAY BE PREPARED OR CAUSED TO 15 HAVE BEEN PREPARED BY THE DEPARTMENT TO ENABLE IT TO DETERMINE THE 16 WORTHINESS OF THE APPLICANT IF AN INDIVIDUAL, OR OF EACH MEMBER OF A 17 FIRM OR ASSOCIATION OR OF EACH OFFICER OF A CORPORATION FOR WHOM A 18 LICENSE AS RESIDENTIAL REAL PROPERTY MANAGER IS REQUESTED. SUCH EXAMINA- 19 TION SHALL BE HELD AT SUCH TIMES AND AT SUCH PLACES AS THE SECRETARY 20 SHALL DETERMINE. EVERY INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAMINA- 21 TION SHALL, AT THE TIME OF APPLYING THEREFOR, PAY A FEE OF FIFTY DOLLARS 22 TO THE DEPARTMENT, OR AT THE DISCRETION OF THE SECRETARY, DIRECTLY TO 23 ANY ORGANIZATION THAT IS UNDER CONTRACT WITH THE SECRETARY TO PROVIDE 24 EXAMINATION SERVICES, AN EXAMINATION FEE OF AN AMOUNT WHICH IS THE ACTU- 25 AL DOCUMENTED ADMINISTRATIVE COST OF CONDUCTING SAID QUALIFYING EXAMINA- 26 TION, AS CERTIFIED BY THE SECRETARY. THE EXAMINATION FEE REPRESENTS AN 27 ADMINISTRATIVE EXPENSE AND IS NONREFUNDABLE. 28 4. THE SECRETARY SHALL HAVE THE POWER TO WAIVE SUCH WRITTEN EXAMINA- 29 TION FOR ANY INDIVIDUAL SEEKING TO BE NAMED A LICENSEE WHO HAS BEEN 30 EMPLOYED, FULL-TIME, IN THE PROVISION AND SUPERVISION OF SERVICES WITHIN 31 A MULTIPLE DWELLING, INCLUDING TECHNICAL AND ADMINISTRATIVE SERVICES, 32 MAINTENANCE, SECURITY, ENERGY CONSERVATION, CODE COMPLIANCE, LABOR 33 RELATIONS, FISCAL BUDGETARY RESPONSIBILITIES, TENANT RELATIONS, GOVERN- 34 MENTAL RELATIONS AND JANITORIAL SERVICES FOR TWO YEARS PRECEDING THE 35 EFFECTIVE DATE OF THIS SECTION; PROVIDED, HOWEVER, THAT UPON APPLICATION 36 FOR RENEWAL OF A REAL PROPERTY MANAGER'S LICENSE, ANY APPLICANT FOR WHOM 37 A WRITTEN EXAMINATION HAS BEEN WAIVED, SHALL, PRIOR TO THE RENEWAL OF 38 HIS OR HER LICENSE, FURNISH THE DEPARTMENT WITH PROOF OF HAVING RECEIVED 39 AN EDUCATION OF THE KIND SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION THREE 40 OF THIS SECTION. 41 5. EACH APPLICATION FOR A RESIDENTIAL REAL PROPERTY MANAGER'S LICENSE 42 UNDER THIS ARTICLE SHALL BE SUBSCRIBED BY THE APPLICANT; OR IF MADE BY A 43 FIRM OR ASSOCIATION IT SHALL BE SUBSCRIBED BY A MEMBER THEREOF, OR IF 44 MADE BY A CORPORATION IT SHALL BE SUBSCRIBED BY AN OFFICER THEREOF. EACH 45 APPLICATION SHALL CONTAIN AN AFFIRMATION BY THE PERSON SO SUBSCRIBING 46 THAT THE STATEMENTS THEREIN ARE TRUE UNDER THE PENALTIES OF PERJURY. AN 47 APPLICATION FOR A LICENSE SHALL BE ACCOMPANIED BY THE APPROPRIATE 48 LICENSE FEE, AS HEREINAFTER PRESCRIBED BY THIS ARTICLE. 49 6. (A) A LICENSE ISSUED OR REISSUED UNDER THE PROVISIONS OF THIS ARTI- 50 CLE SHALL ENTITLE THE PERSON, FIRM, ASSOCIATION OR CORPORATION TO ACT AS 51 A RESIDENTIAL REAL PROPERTY MANAGER IN THIS STATE UP TO AND INCLUDING 52 THE THIRTIETH DAY OF NOVEMBER OF THE YEAR IN WHICH THE LICENSE BY ITS 53 TERMS EXPIRES. 54 (B) FROM AND AFTER THE DATE WHEN THIS SUBDIVISION SHALL TAKE EFFECT, 55 THE TERM FOR WHICH A LICENSE SHALL BE ISSUED OR REISSUED SHALL BE A 56 PERIOD OF TWO YEARS. S. 3051 4 1 7. (A) THE FEE FOR A LICENSE ISSUED OR REISSUED UNDER THE PROVISIONS 2 OF THIS ARTICLE ENTITLING A PERSON, FIRM, ASSOCIATION OR CORPORATION TO 3 ACT AS A RESIDENTIAL REAL PROPERTY MANAGER SHALL BE ONE HUNDRED FIFTY 4 DOLLARS. SUCH LICENSE FEE SHALL BE SUBJECT TO A BIANNUAL INCREASE OF TEN 5 PERCENT, WHERE SUCH INCREASE SHALL BE DEEMED NECESSARY AT THE DISCRETION 6 OF THE SECRETARY. 7 (B) IF THE LICENSE BE FOR A FIRM, ASSOCIATION OR CORPORATION, THE 8 LICENSE ISSUED TO IT SHALL ENTITLE THE PRESIDENT THEREOF TO ACT AS A 9 RESIDENTIAL REAL PROPERTY MANAGER. FOR EACH OTHER MEMBER OF THE FIRM OR 10 ASSOCIATION, OR OTHER OFFICER OF THE CORPORATION WHO SHALL DESIRE TO ACT 11 AS RESIDENTIAL REAL PROPERTY MANAGER ON BEHALF OF SUCH FIRM, ASSOCIATION 12 OR CORPORATION, THE FEE FOR THEIR LICENSE, SHALL BE THE SAME AS THE FEE 13 REQUIRED BY THIS SUBDIVISION. 14 S 448-C. OFFICIAL REGISTRY OF RESIDENTIAL REAL PROPERTY MANAGERS TO BE 15 KEPT BY THE SECRETARY. IT SHALL BE THE DUTY OF THE SECRETARY TO ENTER IN 16 A BOUND BOOK OR VOLUME TO BE KEPT BY HIM OR HER FOR THAT PURPOSE A LIST 17 OF ALL RESIDENTIAL REAL PROPERTY MANAGERS, WHICH SHALL BE KNOWN AND 18 DESIGNATED AS AND IS HEREBY MADE THE "OFFICIAL REGISTER OF RESIDENTIAL 19 REAL PROPERTY MANAGERS LICENSED IN THE STATE OF NEW YORK". THE SAID 20 "OFFICIAL REGISTER OF RESIDENTIAL REAL PROPERTY MANAGERS LICENSED IN THE 21 STATE OF NEW YORK" IS HEREBY DECLARED TO BE A PUBLIC RECORD AND PRESUMP- 22 TIVE EVIDENCE THAT THE INDIVIDUALS NAMED THEREIN ARE LICENSED TO PRAC- 23 TICE RESIDENTIAL REAL PROPERTY MANAGEMENT IN THIS STATE. 24 S 448-D. ANNUAL REGISTRATION OF RESIDENTIAL REAL PROPERTY MANAGERS. 1. 25 A RESIDENTIAL REAL PROPERTY MANAGER, OR SUB-LICENSEES THEREOF, LICENSED 26 AFTER THE ENACTMENT OF THIS SECTION SHALL FILE A REGISTRATION STATEMENT 27 WITHIN SIXTY DAYS OF THE DATE OF LICENSURE. 28 2. RESIDENTIAL REAL PROPERTY MANAGERS AND SUB-LICENSEES THEREOF SHALL 29 REGISTER ANNUALLY ON THE DATES PRESCRIBED BY THE SECRETARY. IN THE 30 EVENT OF A CHANGE IN INFORMATION PREVIOUSLY SUBMITTED, RESIDENTIAL REAL 31 PROPERTY MANAGERS, AND LICENSEES THEREOF, SHALL FILE AN AMENDED STATE- 32 MENT WITHIN THIRTY DAYS OF SUCH CHANGE. 33 3. THE SECRETARY SHALL PRESCRIBE THE CONTENT OF, AND FORM IN WHICH, 34 SUCH REGISTRY OF RESIDENTIAL REAL PROPERTY MANAGERS AND LICENSEES THERE- 35 OF SHALL BE MAINTAINED AND THE PROCEDURES FOR PUBLIC ACCESS THERETO, AND 36 MAY PROMULGATE ALL OTHER RULES AND REGULATIONS DEEMED NECESSARY AND 37 APPROPRIATE TO IMPLEMENT AND ENFORCE THE PROVISIONS OF THIS SECTION. 38 4. THE ANNUAL REGISTRATION FEE SHALL BE ONE HUNDRED FIFTY DOLLARS. 39 S 448-E. RENEWAL OF LICENSES. 1. ANY LICENSE GRANTED UNDER THE 40 PROVISIONS OF THIS ARTICLE MAY BE RENEWED BY THE DEPARTMENT UPON APPLI- 41 CATION THEREFOR BY THE HOLDER THEREOF, IN SUCH FORM AS THE DEPARTMENT 42 MAY PRESCRIBE, AND PAYMENT OF THE FEE FOR SUCH LICENSE. IN THE CASE OF 43 APPLICATION FOR RENEWAL OF LICENSE, THE DEPARTMENT MAY DISPENSE WITH THE 44 REQUIREMENT OF SUCH STATEMENTS AS IT DEEMS UNNECESSARY IN VIEW OF THOSE 45 CONTAINED IN THE ORIGINAL APPLICATION FOR LICENSE. 46 2. A RENEWAL PERIOD WITHIN THE MEANING OF THIS ARTICLE IS CONSIDERED 47 TO BE TWO YEARS FROM THE DATE OF EXPIRATION OF A PREVIOUSLY ISSUED 48 LICENSE. 49 3. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION FOUR OF SECTION FOUR 50 HUNDRED FORTY-EIGHT-B OF THIS ARTICLE, THE DEPARTMENT SHALL REQUIRE ANY 51 APPLICANT, WHO DOES NOT APPLY FOR RENEWAL OF LICENSE WITHIN SUCH PERIOD, 52 TO QUALIFY BY PASSING THE WRITTEN EXAMINATION AS PROVIDED HEREIN. THE 53 DEPARTMENT MAY REQUIRE ANY LICENSEE WHO DOES NOT PASS THE WRITTEN EXAM- 54 INATION, AND WHO CANNOT REASONABLY PROVE TO THE SATISFACTION OF THE 55 DEPARTMENT, THAT HE CAN MEET THE COMPETENCY REQUIREMENT, TO PASS THE 56 WRITTEN EXAMINATION BEFORE A RENEWAL OF LICENSE SHALL BE GRANTED. S. 3051 5 1 S 448-F. FIDUCIARY CAPACITY OF RESIDENTIAL REAL PROPERTY MANAGERS. 2 EVERY RESIDENTIAL REAL PROPERTY MANAGER IN THIS STATE SHALL HAVE A FIDU- 3 CIARY RESPONSIBILITY FOR ALL FUNDS RECEIVED OR COLLECTED ON BEHALF OF 4 THE OWNER AND THE TENANTS OF MULTIPLE DWELLINGS AND SHALL NOT, WITHOUT 5 THE EXPRESS CONSENT OF SUCH OWNERS OR TENANTS, COMMINGLE ANY SUCH FUNDS 6 WITH HIS OR HER OWN FUNDS OR WITH FUNDS HELD BY HIM OR HER. 7 S 448-G. REVOCATION OR SUSPENSION OF LICENSE OF RESIDENTIAL REAL PROP- 8 ERTY MANAGER. 1. THE SECRETARY MAY REFUSE TO RENEW, REVOKE, OR MAY 9 SUSPEND, FOR A PERIOD HE OR SHE DETERMINES, THE LICENSE OF ANY RESIDEN- 10 TIAL REAL PROPERTY MANAGER, IF, AFTER NOTICE AND HEARING, HE OR SHE 11 DETERMINES THAT THE LICENSEE HAS: 12 (A) VIOLATED ANY PROVISION OF THIS ARTICLE OR VIOLATED ANY LAW IN THE 13 COURSE OF HIS OR HER DEALINGS IN SUCH CAPACITY; 14 (B) MADE A MATERIAL MISSTATEMENT IN THE APPLICATION FOR SUCH LICENSE; 15 (C) BEEN GUILTY OF FRAUDULENT OR DISHONEST PRACTICES; OR 16 (D) DEMONSTRATED HIS OR HER INCOMPETENCE TO ACT IN SUCH CAPACITY BY 17 ENGAGING IN ANY COURSE OF CONDUCT WHICH INCLUDES, BUT IS NOT LIMITED TO, 18 CAUSING THE INTERRUPTION OR DISCONTINUANCE OF ESSENTIAL SERVICES, INTER- 19 FERING WITH OR DISTURBING THE PEACE, COMFORT, REPOSE AND QUIET ENJOYMENT 20 OF A TENANT OR TENANTS. 21 2. BEFORE REVOKING OR SUSPENDING THE LICENSE OF ANY RESIDENTIAL REAL 22 PROPERTY MANAGER, THE SECRETARY SHALL GIVE NOTICE TO THE LICENSEE AND 23 SHALL HOLD, OR CAUSE TO BE HELD, A HEARING. THE HEARING SHALL BE HELD 24 NOT LESS THAN TEN DAYS AFTER THE GIVING OF SUCH NOTICE, AT SUCH TIME AND 25 PLACE AS THE DEPARTMENT SHALL PRESCRIBE. 26 3. THE REVOCATION OR SUSPENSION OF ANY RESIDENTIAL REAL PROPERTY 27 MANAGER'S LICENSE SHALL TERMINATE FORTHWITH THE LICENSE OF THE RESIDEN- 28 TIAL REAL PROPERTY MANAGER, AND IN THE CASE OF A FIRM, ASSOCIATION OR 29 CORPORATION, SHALL TERMINATE FORTHWITH THE AUTHORITY CONFERRED THEREBY 30 UPON ALL LICENSEES. 31 4. (A) NO PERSON WHOSE LICENSE HAS BEEN REVOKED SHALL BE ENTITLED TO 32 OBTAIN ANY LICENSE OF THE KIND WHICH WAS SO REVOKED FOR A PERIOD OF ONE 33 YEAR AFTER SUCH REVOCATION, OR, IF SUCH REVOCATION IS JUDICIALLY 34 REVIEWED, FOR ONE YEAR AFTER THE FINAL DETERMINATION THEREOF AFFIRMING 35 THE ACTION OF THE SECRETARY IN REVOKING SUCH LICENSE. 36 (B) IF ANY SUCH LICENSE HELD BY A FIRM, ASSOCIATION OR CORPORATION, IS 37 REVOKED, NO MEMBER OF SUCH FIRM OR ASSOCIATION, AND NO OFFICER OR DIREC- 38 TOR OF SUCH CORPORATION, SHALL BE ENTITLED TO OBTAIN ANY LICENSE OF THE 39 KIND WHICH WAS SO REVOKED, OR TO BE NAMED AS A LICENSEE IN ANY SUCH 40 LICENSE, FOR THE SAME PERIOD OF TIME, UNLESS THE SECRETARY DETERMINES, 41 AFTER NOTICE AND HEARING, THAT SUCH MEMBER, OFFICER OR DIRECTOR WAS NOT 42 PERSONALLY AT FAULT IN THE MATTER ON ACCOUNT OF WHICH SUCH LICENSE WAS 43 REVOKED. 44 S 448-H. DENIAL OF LICENSE. 1. THE DEPARTMENT SHALL, BEFORE MAKING A 45 FINAL DETERMINATION TO DENY AN APPLICATION FOR A LICENSE, NOTIFY THE 46 APPLICANT IN WRITING OF THE REASONS FOR SUCH PROPOSED DENIAL AND SHALL 47 AFFORD THE APPLICANT AN OPPORTUNITY TO BE HEARD IN PERSON OR BY COUNSEL 48 PRIOR TO DENIAL OF THE APPLICATION. SUCH NOTIFICATION SHALL BE SERVED IN 49 ANY MANNER AUTHORIZED BY THE CIVIL PRACTICE LAW AND RULES. 50 2. IF A HEARING IS REQUESTED, SUCH HEARING SHALL BE HELD AT SUCH TIME 51 AND PLACE AS THE DEPARTMENT SHALL PRESCRIBE. IF THE APPLICANT FAILS TO 52 MAKE A WRITTEN REQUEST FOR A HEARING WITHIN THIRTY DAYS AFTER RECEIPT OF 53 SUCH NOTIFICATION, THEN THE NOTIFICATION OF DENIAL SHALL BECOME THE 54 FINAL DETERMINATION OF THE DEPARTMENT. 55 3. (A) THE DEPARTMENT, ACTING BY SUCH OFFICER OR PERSON IN THE DEPART- 56 MENT AS THE SECRETARY MAY DESIGNATE, SHALL HAVE THE POWER TO SUBPOENA S. 3051 6 1 AND BRING BEFORE THE OFFICER OR PERSON SO DESIGNATED ANY PERSON IN THIS 2 STATE, AND ADMINISTER AN OATH TO AND TAKE TESTIMONY OF ANY PERSON OR 3 CAUSE HIS OR HER DEPOSITION TO BE TAKEN. A SUBPOENA ISSUED UNDER THIS 4 SECTION SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND RULES. 5 (B) IF, AFTER SUCH HEARING, THE APPLICATION IS DENIED, WRITTEN NOTICE 6 OF SUCH DENIAL SHALL BE SERVED UPON THE APPLICANT IN ANY MANNER AUTHOR- 7 IZED BY THE CIVIL PRACTICE LAW AND RULES. 8 (C) DENIAL OF A LICENSE UNDER THIS SECTION SHALL IN NO WAY AFFECT AN 9 APPLICANT'S RIGHT TO REAPPLY. 10 S 448-I. JUDICIAL REVIEW. THE ACTION OF THE DEPARTMENT IN GRANTING OR 11 REFUSING TO GRANT OR TO RENEW A LICENSE UNDER THIS ARTICLE, OR IN REVOK- 12 ING OR SUSPENDING SUCH A LICENSE, OR IMPOSING ANY FINE OR REPRIMAND ON 13 THE HOLDER THEREOF OR REFUSING TO REVOKE OR SUSPEND SUCH LICENSE OR 14 IMPOSE ANY FINE OR REPRIMAND SHALL BE SUBJECT TO REVIEW BY A PROCEEDING 15 BROUGHT UNDER AND PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC- 16 TICE LAW AND RULES AT THE INSTANCE OF THE APPLICANT FOR SUCH LICENSE, 17 THE HOLDER OF A LICENSE SO REVOKED OR SUSPENDED, THE PERSON FINED OR 18 REPRIMANDED OR THE PERSON AGGRIEVED. 19 S 448-J. PENALTIES FOR VIOLATIONS. 1. THE SECRETARY, IN LIEU OF REVOK- 20 ING OR SUSPENDING THE LICENSE OF A LICENSEE IN ACCORDANCE WITH THE 21 PROVISIONS OF THIS SECTION, MAY IN ANY ONE PROCEEDING BY ORDER, REQUIRE 22 THE LICENSEE TO PAY TO THE PEOPLE OF THIS STATE, A PENALTY IN A SUM NOT 23 EXCEEDING FIVE HUNDRED DOLLARS FOR EACH OFFENSE, AND A PENALTY IN A SUM 24 NOT EXCEEDING TWENTY-FIVE HUNDRED DOLLARS IN THE AGGREGATE FOR ALL 25 OFFENSES. 26 2. ANY PERSON, FIRM, ASSOCIATION OR CORPORATION VIOLATING ANY 27 PROVISION OF THIS ARTICLE SHALL BE GUILTY OF A MISDEMEANOR. THE COMMIS- 28 SION OF A SINGLE ACT PROHIBITED BY THIS ARTICLE SHALL CONSTITUTE A 29 VIOLATION HEREOF. 30 3. CRIMINAL ACTIONS FOR VIOLATIONS OF THIS ARTICLE SHALL BE PROSECUTED 31 BY THE ATTORNEY GENERAL, OR HIS OR HER DEPUTY, IN THE NAME OF THE PEOPLE 32 OF THE STATE, AND IN ANY SUCH PROSECUTION THE ATTORNEY GENERAL, OR HIS 33 OR HER DEPUTY, SHALL EXERCISE ALL THE POWERS AND PERFORM ALL THE DUTIES 34 WHICH THE DISTRICT ATTORNEY WOULD OTHERWISE BE AUTHORIZED TO EXERCISE OR 35 TO PERFORM THEREIN. THE ATTORNEY GENERAL SHALL, UPON A CONVICTION FOR A 36 VIOLATION OF ANY PROVISION OF THIS ARTICLE, AND WITHIN TEN DAYS THERE- 37 AFTER, MAKE AND FILE WITH THE SECRETARY A DETAILED REPORT SHOWING THE 38 DATE OF SUCH CONVICTION, THE NAME OF THE PERSON CONVICTED AND THE EXACT 39 NATURE OF THE CHARGE. 40 4. IN CASE THE OFFENDER SHALL HAVE RECEIVED ANY SUM OF MONEY AS 41 COMPENSATION OR PROFIT BY OR IN CONSEQUENCE OF HIS OR HER VIOLATION OF 42 ANY PROVISION OF THIS ARTICLE, HE OR SHE SHALL ALSO BE LIABLE TO A 43 PENALTY OF NOT LESS THAN THE AMOUNT OF THE SUM OF MONEY RECEIVED BY HIM 44 OR HER AS SUCH COMPENSATION OR PROFIT AND NOT MORE THAN THREE TIMES THE 45 SUM SO RECEIVED BY HIM OR HER, AS MAY BE DETERMINED BY THE COURT, WHICH 46 PENALTY MAY BE SUED FOR AND RECOVERED BY ANY PERSON AGGRIEVED AND FOR 47 HIS OR HER USE AND BENEFIT, IN ANY COURT OF COMPETENT JURISDICTION. 48 5. THE SECRETARY SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS OF 49 THIS ARTICLE AND UPON COMPLAINT OF ANY PERSON, OR ON HIS OR HER OWN 50 INITIATIVE, TO INVESTIGATE THE BUSINESS, BUSINESS PRACTICES AND BUSINESS 51 METHODS OF ANY PERSON, FIRM, ASSOCIATION OR CORPORATION APPLYING FOR OR 52 HOLDING A LICENSE AS A RESIDENTIAL REALTY MANAGER OR REALTY MANAGER, IF 53 IN HIS OR HER OPINION SUCH INVESTIGATION WARRANTED. EACH SUCH APPLICANT 54 OR LICENSEE SHALL BE OBLIGED, ON REQUEST OF THE SECRETARY TO SUPPLY SUCH 55 INFORMATION AS MAY BE REQUIRED CONCERNING HIS OR HER OR ITS BUSINESS, S. 3051 7 1 BUSINESS PRACTICES OR BUSINESS METHODS, OR PROPOSED BUSINESS PRACTICES 2 OR METHODS. 3 6. FOR THE PURPOSE OF ENFORCING THE PROVISIONS OF THIS ARTICLE AND IN 4 MAKING INVESTIGATIONS RELATING TO ANY VIOLATION THEREOF, AND FOR THE 5 PURPOSE OF INVESTIGATING THE CHARACTER, COMPETENCY AND INTEGRITY OF THE 6 APPLICANTS OR LICENSEES HEREUNDER, AND FOR THE PURPOSE OF INVESTIGATING 7 THE BUSINESS, BUSINESS PRACTICES AND BUSINESS METHODS OF ANY APPLICANT 8 OR LICENSEE, OR OF THE OFFICERS OR AGENTS THEREOF, THE SECRETARY SHALL 9 HAVE THE POWER TO SUBPOENA AND BRING BEFORE THE OFFICER OR PERSON SO 10 DESIGNATED ANY PERSON IN THIS STATE AND REQUIRE THE PRODUCTION OF ANY 11 BOOKS OR PAPERS WHICH HE DEEMS RELEVANT TO THE INQUIRY, AND ADMINISTER 12 AN OATH TO AND TAKE TESTIMONY OF ANY PERSON OR CAUSE HIS OR HER DEPOSI- 13 TION TO BE TAKEN WITH THE SAME FEES AND MILEAGE AND IN THE SAME MANNER 14 AS PRESCRIBED BY LAW FOR CIVIL CASES IN A COURT OF RECORD, EXCEPT THAT 15 ANY APPLICANT OR LICENSEE OR OFFICER OR AGENT THEREOF SHALL NOT BE ENTI- 16 TLED TO SUCH FEES AND/OR MILEAGE. ANY PERSON, DULY SUBPOENAED, WHO FAILS 17 TO OBEY SUCH SUBPOENA WITHOUT REASONABLE CAUSE OR WITHOUT SUCH CAUSE 18 REFUSES TO BE EXAMINED OR TO ANSWER ANY LEGAL OR PERTINENT QUESTION AS 19 TO THE CHARACTER OR QUALIFICATION OF SUCH APPLICANT OR LICENSEE OR SUCH 20 APPLICANT'S OR LICENSEE'S BUSINESS, BUSINESS PRACTICES AND METHODS OF 21 SUCH VIOLATIONS, SHALL BE GUILTY OF A MISDEMEANOR. 22 7. IN ANY CRIMINAL PROCEEDING BEFORE ANY COURT, MAGISTRATE OR GRAND 23 JURY, OR UPON ANY INVESTIGATION BEFORE THE DEPARTMENT FOR A VIOLATION OF 24 ANY OF THE PROVISIONS OF THIS SECTION, THE COURT, MAGISTRATE OR GRAND 25 JURY, OR THE SECRETARY, HIS OR HER DEPUTY OR OTHER OFFICER CONDUCTING 26 THE INVESTIGATION, MAY CONFER IMMUNITY, IN ACCORDANCE WITH THE 27 PROVISIONS OF THE CRIMINAL PROCEDURE LAW. 28 S 448-K. STAY OR SUSPENSION OF SECRETARY'S DETERMINATION. THE 29 COMMENCEMENT OF AN ARTICLE SEVENTY-EIGHT PROCEEDING UNDER THE CIVIL 30 PRACTICE LAW AND RULES, TO REVIEW THE ACTION OF THE SECRETARY IN GRANT- 31 ING OR REFUSING TO GRANT, OR IN RENEWING OR REFUSING TO RENEW A LICENSE 32 UNDER THIS ARTICLE, OR IN REVOKING OR SUSPENDING SUCH LICENSE, OR IMPOS- 33 ING ANY FINE OR REPRIMAND SHALL STAY SUCH ACTION OF THE SECRETARY FOR A 34 PERIOD OF THIRTY DAYS. SUCH STAY SHALL NOT BE EXTENDED FOR A LONGER 35 PERIOD UNLESS THE COURT SHALL DETERMINE, AFTER A PRELIMINARY HEARING, 36 THAT A STAY OF THE SECRETARY'S ACTION PENDING THE FINAL DETERMINATION OF 37 FURTHER ORDER OF THE COURT WILL NOT UNDULY INJURE THE INTERESTS OF THE 38 PEOPLE OF THE STATE. THE DEPARTMENT MUST BE GIVEN AT LEAST FORTY-EIGHT 39 HOURS NOTICE PRIOR TO SAID PRELIMINARY HEARING. 40 S 448-L. RULES AND REGULATIONS. THE SECRETARY MAY PROMULGATE RULES AND 41 REGULATIONS NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS ARTICLE. 42 S 2. This act shall take effect on the first of January next succeed- 43 ing the date on which it shall have become a law.