Bill Text: NY S07766 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to the registration of real estate appraisal management companies by the department of state.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-05-12 - REFERRED TO FINANCE [S07766 Detail]
Download: New_York-2015-S07766-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7766 IN SENATE May 12, 2016 ___________ Introduced by Sen. FARLEY -- (at request of the Department of State) -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the executive law, in relation to the registration of real estate appraisal management companies by the department of state The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The executive law is amended by adding a new article 6-H to 2 read as follows: 3 ARTICLE 6-H 4 REAL ESTATE APPRAISAL MANAGEMENT COMPANIES 5 Section 160-aaaa. Definitions. 6 160-bbbb. Registration requirement. 7 160-cccc. Exemptions. 8 160-dddd. Forms. 9 160-eeee. Denial of registration. 10 160-ffff. Expiration of license. 11 160-gggg. Fees. 12 160-hhhh. Owner requirements. 13 160-iiii. Controlling persons. 14 160-jjjj. Employee requirements. 15 160-kkkk. Restrictions. 16 160-llll. Recordkeeping. 17 160-mmmm. Appraiser independence; unlawful acts. 18 160-nnnn. Mandatory reporting. 19 160-oooo. Unprofessional conduct. 20 160-pppp. Alteration of appraisal reports. 21 160-qqqq. Enforcement. 22 160-rrrr. Disciplinary hearings. 23 160-ssss. Power to suspend a license. 24 160-tttt. Investigation. 25 160-uuuu. Rulemaking authority. 26 160-vvvv. Violations. 27 160-wwww. Severability. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14323-01-6S. 7766 2 1 160-xxxx. Judicial review. 2 § 160-aaaa. Definitions. For the purposes of this article: 3 1. "Appraisal" or "real estate appraisal" means an analysis, opinion 4 or conclusion relating to the nature, quality, value or utility of spec- 5 ified interests in, or aspects of, identified real estate. An appraisal 6 may be classified by subject matter into either a valuation or an analy- 7 sis. 8 2. "Appraisal management company" or "AMC" means an individual or 9 business entity that: 10 (a) provides appraisal management services to creditors or to second- 11 ary mortgage market participants, including affiliates; 12 (b) provides such services in connection with valuing a consumer's 13 real property as a security for consumer credit transactions secured by 14 a consumer's principal dwelling; and 15 (c) within a given year, oversees an appraisal panel of more than 16 fifteen appraisers working in New York or twenty-five or more appraisers 17 working in two or more states. 18 An AMC shall not include a department or division of an entity that 19 provides appraisal management services only to that entity. 20 3. "Appraisal management services" means to directly or indirectly 21 provide any of the following services on behalf of a lender, financial 22 institution, client, or any other person in connection with valuing a 23 consumer's principal dwelling as security for a consumer credit trans- 24 action or incorporating such transactions into securitizations: 25 (a) administer an appraiser panel; 26 (b) recruit, retain or select appraisers; 27 (c) qualify, verify licensing or certification and negotiate fees and 28 service level expectations with persons who are part of an appraiser 29 panel; 30 (d) contract with appraisers to perform appraisal assignments; 31 (e) receive an order for an appraisal from one person, and deliver the 32 order for the appraisal to an appraiser that is part of an appraiser 33 panel for completion; 34 (f) manage the process of having an appraisal performed, including 35 providing administrative duties, such as receiving appraisal orders and 36 reports, submitting completed appraisal reports to creditors and under- 37 writers for services provided, and reimbursing appraisers for services 38 performed; 39 (g) track and determine the status of orders for appraisals; 40 (h) conduct quality control of a completed appraisal prior to the 41 delivery of the appraisal to the person that ordered the appraisal; 42 (i) provide a completed appraisal performed by an appraiser to one or 43 more clients; or 44 (j) compensate appraisers for services rendered. 45 An individual who hires an appraiser solely for his or her own 46 purposes, shall not be deemed an appraisal management company. 47 4. "Appraiser" means a person licensed or certified pursuant to arti- 48 cle six-E of this chapter, or credentialed in another state. 49 5. "Appraiser panel" means a network, list or roster of licensed or 50 certified appraisers approved by the appraisal management company to 51 perform appraisals as independent contractors of the appraisal manage- 52 ment company. 53 6. "Appraisal review" means the act or process of developing and 54 communicating an opinion about the quality of another appraiser's work 55 that was performed as part of an appraisal assignment. Appraisal reviewsS. 7766 3 1 must be performed by a person who is certified as a real estate 2 appraiser pursuant to article six-E of this chapter. 3 7. "Board" means the state board of real estate appraisal which shall 4 advise the department, as necessary, on implementation of, and enforce- 5 ment of this article. 6 8. "Competent appraiser" means an appraiser that satisfies each 7 provision of the competency rule of the uniform standards of profes- 8 sional appraisal practice for a specific appraisal assignment or valu- 9 ation service that the appraiser has received, or may receive, from an 10 appraisal management company. 11 9. "Controlling person" means a person that holds ten percent or more 12 of the company and is: 13 (a) an owner, officer or director of an appraisal management company; 14 (b) an individual employed, appointed or authorized by an appraisal 15 management company that has the authority to enter into a contractual 16 relationship with other persons for the performance of appraisal manage- 17 ment services and has the authority to enter into agreements with 18 appraisers for the performance of appraisals; 19 (c) an individual who possesses, directly or indirectly, the power to 20 direct or cause the direction of the management or policies of an 21 appraisal management company; or 22 (d) a person holding ten percent or more of the company. 23 10. "Department" means the New York state department of state. 24 11. "Hybrid firm or entity" means an entity that hires both real 25 estate appraisers as employees to perform appraisals of real property, 26 and engage independent contractors to perform such appraisals. A hybrid 27 firm or entity shall be treated as an AMC for purposes of state regis- 28 tration if it oversees more than fifteen real estate appraisers complet- 29 ing valuation services in an individual state or twenty-five or more 30 real estate appraisers in two or more states within a given year. The 31 numerical calculation for a hybrid firm or entity should only include 32 real estate appraisers engaged as independent contractors. 33 12. "Person" means an individual, partnership, corporation, or any 34 other entity recognized under the laws of this state. 35 13. "Real estate" means an identified parcel or tract of land, includ- 36 ing improvements, if any. 37 14. "Real property" means the interest, benefits, and rights inherent 38 in the ownership of real estate. 39 15. "Uniform Standards of Professional Appraisal Practice" or "USPAP" 40 means the appraisal standards promulgated by the appraisal standards 41 board of the appraisal foundation. 42 16. "Secondary mortgage market participant" means a guarantor or 43 insurer of mortgage-backed securities, or an underwriter or issuer of 44 mortgage-backed securities. Secondary mortgage market participant only 45 includes an individual investor in a mortgage-backed security if that 46 investor also serves in the capacity of a guarantor, insurer, underwrit- 47 er, or issuer for the mortgage-backed security. 48 § 160-bbbb. Registration requirement. It shall be unlawful for a 49 person to, directly or indirectly, engage or attempt to engage in busi- 50 ness as an appraisal management company, or to advertise or hold oneself 51 out as engaging in or conducting business as an appraisal management 52 company without first obtaining a certificate of registration issued by 53 the department under the provisions of this article. 54 § 160-cccc. Exemptions. The provisions of this article shall not apply 55 to any person that exclusively employs appraisers for the performance of 56 appraisals or to any appraisal management company that is a wholly-ownedS. 7766 4 1 subsidiary of a financial institution, which is regulated by the federal 2 financial institution regulatory agency. The registration provisions of 3 this article shall not apply to the state, or of any political subdivi- 4 sion of the state which employs appraisers. 5 § 160-dddd. Forms. An applicant for a certificate of registration as 6 an appraisal management company shall submit an application on such 7 forms as prescribed by the department. 8 § 160-eeee. Denial of registration. The department may investigate the 9 good character of applicants for a certificate of registration under 10 this article and may deny the issuance of a certificate of registration 11 based upon lack of good character which may include, but is not limited 12 to, any of the grounds enumerated in this article. 13 § 160-ffff. Expiration of license. A certificate of registration 14 granted by the department pursuant to this article shall be valid for a 15 period of two years from the date upon which it is issued. 16 § 160-gggg. Fees. 1. The department shall collect a fee of two hundred 17 fifty dollars for a certificate of registration issued or reissued under 18 the provisions of this article. Additionally, the department shall 19 assess twenty-five dollars for each appraiser added to an appraisal 20 management company's appraiser panel. 21 2. The department shall collect from each appraisal management company 22 seeking to be registered, the amount determined by the appraisal subcom- 23 mittee to be a national registry fee for each appraiser on the appraiser 24 panel of an appraisal management company pursuant to section 1109(a)(4) 25 of the Financial Institutions Reform, Recovery, and Enforcement Act of 26 1989 as amended by the Dodd-Frank Wall Street Reform and Consumer 27 Protection Act. The department may transmit the annual registry fee to 28 the appraisal subcommittee. The department shall provide its roster of 29 appraisal management companies to the appraisal subcommittee. These 30 transmittals shall occur at least annually. 31 3. Except for changes made on a renewal application, appraisal manage- 32 ment companies shall provide the department with notice of a change in 33 the appraisal management company's principal address. Change of address 34 notifications shall be accompanied by a fee of ten dollars. 35 4. Except for changes made on a renewal application, the department 36 shall collect a fee of ten dollars for changing a name on a certificate 37 of registration. 38 5. In lieu of the fee set forth in subdivision one of this section, 39 the department shall collect a fee of three hundred fifty dollars to 40 reissue a certificate of registration under this article which was 41 submitted after the expiration of the immediately preceding registration 42 term. 43 § 160-hhhh. Owner requirements. An appraisal management company apply- 44 ing for a certificate of registration shall not be owned in whole or in 45 part, directly or indirectly, by a person who has had a license, regis- 46 tration or certificate to act as a real estate appraiser denied, 47 revoked, or surrendered in lieu of pending discipline in any state or by 48 a person holding ten percent or more of the company where that person 49 has had a license, registration or certificate to act as a real estate 50 appraiser denied, revoked, or surrendered in lieu of possible discipline 51 in any state. 52 § 160-iiii. Controlling persons. 1. Each appraisal management company 53 applying for a certificate of registration shall designate one control- 54 ling person who shall be the main contact for all communication between 55 the department and the appraisal management company. The designated 56 controlling person shall never have had a license or certificate to actS. 7766 5 1 as an appraiser denied, revoked, or surrendered in lieu of possible 2 discipline in any state and shall be of good moral character, as deter- 3 mined by the department. Applicants shall cooperate with any such back- 4 ground investigation conducted by the department. 5 2. Each person that owns more than ten percent of an appraisal manage- 6 ment company shall be of good moral character, as determined by the 7 department. Applicants shall cooperate with any such background investi- 8 gation conducted by the department. 9 3. Each appraisal management company applying for a certificate of 10 registration shall certify to the department that it has reviewed each 11 entity that owns more than ten percent of the appraisal management 12 company and that no entity that owns more than ten percent of the 13 appraisal management company is more than ten percent owned by any 14 person that has had a license or certificate to act as an appraiser 15 refused, denied, cancelled, revoked, or surrendered in lieu of a pending 16 revocation. 17 § 160-jjjj. Employee requirements. 1. An appraisal management company 18 that applies for a certificate of registration shall not knowingly 19 employ, utilize, or engage, for any real estate appraisal, valuation 20 service or appraisal review assignment a person who has had a license or 21 certificate to act as an appraiser in this state or in any other state 22 denied, revoked, or surrendered in lieu of possible discipline. 23 2. Prior to placing an assignment for an appraisal or valuation 24 service with an appraiser on the appraiser panel of an appraisal manage- 25 ment company, the appraisal management company shall verify that the 26 appraiser receiving the assignment is a competent appraiser as defined 27 by the USPAP competency rule with regards to geographic area and the 28 type of property being appraised. An appraiser is deemed part of an 29 appraisal management company panel as of the earliest date on which: (a) 30 the appraisal management company accepts the appraiser for consideration 31 for future appraisal assignments in a covered transaction or for second- 32 ary mortgage market participants in connection with covered trans- 33 actions; or (b) engages the appraiser to perform one or more appraisals 34 on behalf of a creditor for a covered transaction or secondary mortgage 35 market participant in connection with covered transactions. 36 3. An appraisal management company may not hire, employ or engage, or 37 in any way contract with or pay a person who is not licensed or certi- 38 fied as a real estate appraiser by the department pursuant to article 39 six-E of this chapter, unless the work being performed is a comparative 40 market analysis for the purpose of or intention to list or sell real 41 estate. 42 4. An appraiser shall be considered part of an appraisal management 43 company's appraiser panel until: (a) the appraisal management company 44 sends a written notice to the appraiser removing the appraiser with an 45 explanation; or (b) written notice is received from the appraiser asking 46 to be removed or a notice of the death or incapacity of the appraiser. 47 § 160-kkkk. Restrictions. An appraisal management company that applies 48 for a certificate of registration shall not knowingly: 49 1. Employ any person in a position in which the person has the respon- 50 sibility to order or review completed appraisals or valuation services 51 who has had a license, registration or certificate to act as an 52 appraiser in this state or in any other state, refused, denied, 53 cancelled, revoked, or surrendered in lieu of a pending revocation; 54 2. Enter into any independent contractor arrangement, whether in 55 verbal, written, or by other form, with any person who has had a 56 license, registration or certificate to act as an appraiser in thisS. 7766 6 1 state or in any other state, refused, denied, cancelled, revoked, or 2 surrendered in lieu of a pending revocation; and 3 3. Enter into any contract, agreement, or other business relationship, 4 whether in verbal, written, or any other form, with any entity that 5 employs, has entered into an independent contract arrangement, or has 6 entered into any contract, agreement, or other business relationship, 7 whether in verbal, written, or any other form, with any person who has 8 ever had a license, registration or certificate to act as an appraiser 9 in this state or in any other state, refused, denied, cancelled, revoked 10 or surrendered in lieu of a pending revocation. 11 § 160-llll. Recordkeeping. Each appraisal management company shall 12 maintain a detailed record of each service request that it receives and 13 the real estate appraiser that performs the appraisal for the appraisal 14 management company. Records shall be maintained for a period of at least 15 five years after an appraisal is completed or two years after final 16 disposition of a judicial proceeding related to the assignment, whichev- 17 er period expires later. Appraisal management companies shall make 18 records available to the department upon request. Appraisal management 19 companies shall also allow the department to examine the books and 20 records of the appraisal management company and require it to submit 21 reports, information and documents upon request. Appraisal management 22 companies shall also allow the department to verify that the appraisers 23 on the panel hold a valid license or certification. 24 § 160-mmmm. Appraiser independence; unlawful acts. Each appraisal 25 management company shall ensure that real estate appraisals are 26 conducted independently and free from inappropriate influence and coer- 27 cion. Notwithstanding any other provision of this article, it shall be 28 unlawful for any employee, director, officer, or agent of an appraisal 29 management company registered in this state pursuant to this article to: 30 1. Compensate, coerce, extort, collude, instruct, induce, bribe, or 31 intimidate, or attempt to compensate, coerce, extort, collude, instruct, 32 induce, bribe, or intimidate a person, firm or other entity conducting 33 or involved in an appraisal for the purpose of causing the appraised 34 value assigned under the appraisal or other valuation services to the 35 property to be based on any factor other than the independent judgment 36 of the appraiser; 37 2. Mischaracterize the appraised value of a property in conjunction 38 with a consumer credit transaction; 39 3. Seek to influence an appraiser or otherwise to encourage a targeted 40 value in order to facilitate the making or pricing of a consumer credit 41 transaction; 42 4. Withhold or threaten to withhold timely payment for an appraisal 43 report or for other valuation services rendered with the appraisal 44 report or services that are provided in accordance with the contract 45 between parties; 46 5. Withhold or threaten to withhold future business, or to demote or 47 terminate an appraiser without just cause; 48 6. Expressly or implicitly promise future business, promotions, or 49 increased compensation for an appraiser in exchange for the real estate 50 appraiser inflating or deflating his or her appraised value of real 51 property; 52 7. Require a real estate appraiser to indemnify an appraisal manage- 53 ment company or hold an appraisal management company harmless for any 54 liability, damage, losses, or claims arising out of the services 55 performed by the appraisal management company, and not the services 56 performed by the appraiser;S. 7766 7 1 8. Condition the request for an appraisal or the payment of an earned 2 fee, salary or bonus, on the opinion, conclusion, or valuation to be 3 reached, or on a preliminary estimate or opinion requested from an 4 appraiser; 5 9. Request that an appraiser provide an estimated, predetermined, or 6 desired valuation in an appraisal report, or provide estimated values or 7 comparable sales at any time prior to the appraiser's completion of an 8 appraisal; 9 10. Provide to an appraiser an anticipated, estimated, encouraged, or 10 desired value for a subject property or a proposed or target amount to 11 be loaned to the borrower, except that a copy of the sales contract for 12 purchase transactions may be provided; or 13 11. Provide to an appraiser, or any entity or person related to the 14 appraiser, stock or any other financial or non-financial benefits. 15 Nothing herein shall be construed as prohibiting the appraisal manage- 16 ment company from asking an appraiser to consider additional, appropri- 17 ate property information, including: additional comparable properties to 18 make or support an appraisal; provide further detail, substantiation, or 19 explanation for the appraiser's value conclusion; or correct errors in 20 the appraisal report. 21 § 160-nnnn. Mandatory reporting. An appraisal management company that 22 has a reasonable basis to believe an appraiser within the appraisal 23 management company's appraisal panel is failing to comply with the 24 uniform standards of professional appraisal practice, is violating 25 applicable laws, or is otherwise engaging in unethical or unprofessional 26 conduct shall immediately refer the matter to the department. 27 § 160-oooo. Unprofessional conduct. 1. Appraisal management companies 28 shall not engage in unprofessional conduct including, but not limited to 29 the following: 30 (a) Requiring an appraiser to modify any aspect of an appraisal report 31 or valuation service report, unless such modifications are necessary 32 according to USPAP; 33 (b) Requiring an appraiser to prepare an appraisal report or valuation 34 service report if the appraiser, in the appraiser's professional judge- 35 ment, believes the appraiser does not have the necessary expertise for 36 the specific geographic and/or specific type area; 37 (c) Requiring an appraiser to prepare an appraisal report or valuation 38 service under a time frame that the appraiser believes, in the 39 appraiser's professional judgement, does not afford the appraiser the 40 ability to meet all the relevant legal and professional obligations 41 including USPAP requirements; 42 (d) Prohibiting or inhibiting communication between the appraiser and 43 the lender, a real estate licensee, or any other person from whom the 44 appraiser, in the appraiser's professional judgement is relevant; 45 (e) Requiring the appraiser to do anything that does not comply with 46 USPAP, or any assignment conditions and certifications required by the 47 client; 48 (f) Making any portion of the appraiser's fee or the appraisal manage- 49 ment company's fee contingent upon a favorable outcome, including, but 50 not limited to, the closing of a loan, requiring a specific dollar 51 amount be achieved by the appraiser in the appraisal report, making 52 requests for the purpose of facilitating a mortgage loan transaction, 53 setting a broker price opinion, or setting any other real property price 54 or value estimation that does not qualify as an appraisal; or 55 (g) Each appraisal management company operating in this state shall 56 make payment to an appraiser for the completion of an appraisal or valu-S. 7766 8 1 ation assignment within fourteen days of the date on which the appraiser 2 transmits or otherwise provides the completed appraisal or valuation 3 services to the appraisal management company or its assignee. 4 2. It shall be unlawful for an appraisal management company to: 5 (a) Knowingly fail to compensate an appraiser at a rate that is 6 reasonable and customary for appraisal or other valuation services being 7 performed in the market area of the property being appraised without the 8 services of an appraisal management company; 9 (b) Knowingly include any fees for appraisal management services that 10 are performed by the appraisal management company for a lender, client, 11 or other person in the amount that it charges the lender, client, or 12 other person for the actual completion of an appraisal or valuation 13 service by an appraiser that is part of the appraiser panel of the 14 appraisal management company; 15 (c) Knowingly fail to separate any and all fees charged to a client by 16 the appraisal management company for the actual completion of an 17 appraisal by an appraiser from the fees charged to a lender, client, or 18 any other person by an appraisal management company for appraisal 19 management services; 20 (d) Knowingly prohibit an appraiser from recording the fee that the 21 appraiser was paid by the appraisal management company for the perform- 22 ance of the appraisal within the appraisal report that is submitted by 23 the appraiser to the appraisal management company; 24 (e) Knowingly fail to separately state the fees paid to an appraiser 25 for appraisal services and the fees charged by the appraisal management 26 company for services associated with the management of the appraisal 27 process to the client, borrower and any other payer. Appraisal manage- 28 ment companies shall provide a copy of the appraiser's invoice with a 29 copy of any appraisal report submitted to a client or a client's repre- 30 sentative; 31 (f) Allow the removal or taking out of rotation an appraiser from an 32 appraiser panel, without prior written notice to such appraiser with 33 just cause; or 34 (g) Obtain, use, or pay for a second or subsequent appraisal or order- 35 ing an automated valuation model or any other valuation service in 36 connection with a mortgage financing transaction unless there is a 37 reasonable basis to believe that the initial appraisal was flawed or 38 tainted and such basis is clearly and appropriately noted in the loan 39 file, or unless such appraisal or automated valuation model is done 40 pursuant to a bona fide pre or post-funding appraisal review or quality 41 control process. 42 § 160-pppp. Alteration of appraisal reports. An appraisal management 43 company shall not alter, modify, or otherwise change a completed 44 appraisal or valuation service report submitted by an appraiser by 45 removing the appraiser's signature or seal or by adding information to, 46 or removing information from, the report with an intent to change the 47 valuation conclusion. An appraisal management company shall not require 48 an appraiser to provide the appraisal management company with the 49 appraiser's digital signature or seal. 50 § 160-qqqq. Enforcement. The department may revoke or suspend the 51 license of an appraisal management company, or in lieu thereof may 52 impose a fine, per violation, not to exceed twenty-five thousand dollars 53 if the department finds that the licensee has violated any provision of 54 this article, or for a material misstatement in the application for such 55 license, or if such licensee has been guilty of fraud or fraudulent 56 practices, or for dishonest or misleading advertising, or has demon-S. 7766 9 1 strated untrustworthiness or incompetency to act as an appraisal manage- 2 ment company, or has violated any provision of this article or a regu- 3 lation promulgated thereunder. The department shall report any such 4 violations by appraisal management companies to the appraisal subcommit- 5 tee. 6 § 160-rrrr. Disciplinary hearings. The department shall, before revok- 7 ing or suspending any license or imposing any fine or reprimand on the 8 holder thereof, and at least ten days prior to the date set for the 9 hearing, notify, in writing, the holder of such license of any charges 10 made and shall afford such licensee an opportunity to be heard in person 11 or by counsel in reference thereto. Such written notice may be served by 12 personal delivery to the licensee, or by certified mail to the last 13 known business address of such licensee or unlicensed person, or by any 14 method authorized by the civil practice laws and rules. The hearing on 15 such charges shall be at such time and place as the department shall 16 prescribe. 17 § 160-ssss. Power to suspend a license. In cases where the health, 18 safety, or welfare of the public is endangered, the department shall 19 have the authority to immediately suspend a license pending a hearing 20 before an administrative law judge. 21 § 160-tttt. Investigation. 1. The department shall have the power to 22 enforce the provisions of this article and upon complaint of any person, 23 or on its own initiative, to investigate any violation thereof or to 24 investigate the business, business practices and business methods of an 25 appraisal management company, if in the opinion of the department such 26 investigation is warranted. Each such applicant or licensee shall be 27 obliged, on request of the department, to supply such information as may 28 be required concerning his or its business, business practices or busi- 29 ness methods, or proposed business practices or methods. 30 2. For the purpose of enforcing the provisions of this article, and in 31 making investigations relating to any violation thereof, and for the 32 purpose of investigating the character, competency and integrity of the 33 applicants or licensees hereunder, and for the purpose of investigating 34 the business, business practices and business methods of any applicant 35 or licensee, or of the officers or agents thereof, the department of 36 state, acting by such officer or person in the department as the secre- 37 tary of state may designate, shall have the power to subpoena and bring 38 before the officer or person so designated any person in this state and 39 require the production of any books, records or papers which he deems 40 relevant to the inquiry and administer an oath to and take testimony of 41 any person or cause his or her deposition to be taken, except that any 42 applicant or licensee or officer or agent thereof shall not be entitled 43 to fees and/or mileage. A subpoena issued under this section shall be 44 regulated by the civil practice law and rules. Any person, duly subpoe- 45 naed, who fails to obey such subpoena without reasonable cause or with- 46 out such cause refuses to be examined or to answer any legal or perti- 47 nent question as to the character or qualification of such applicant or 48 licensee or such applicant's or licensee's business, business practices 49 and methods or such violations, shall be guilty of a misdemeanor. The 50 testimony of witnesses in any investigative proceeding shall be under 51 oath, which the secretary of state or one of his or her deputies, or a 52 subordinate of the department designated by the secretary of state, may 53 administer. Willful false swearing in any such proceeding shall be 54 perjury. 55 § 160-uuuu. Rulemaking authority. The department may adopt rules not 56 inconsistent with the provisions of this chapter which may be reasonablyS. 7766 10 1 necessary to implement, administer, and enforce the provisions of this 2 article. 3 § 160-vvvv. Violations. 1. Any person or company who fails to obtain a 4 certificate of registration required by this article shall be guilty of 5 a misdemeanor. 6 2. Criminal actions for failure to obtain a certificate of registra- 7 tion shall be prosecuted by the attorney general, or his or her deputy, 8 in the name of the people of the state, and in any such prosecution the 9 attorney general, or his or her deputy, shall exercise all the powers 10 and perform all the duties which the district attorney would otherwise 11 be authorized to exercise or to perform therein. 12 § 160-wwww. Severability. Should the courts of this state declare any 13 provision of this article unconstitutional, or unauthorized, or in 14 conflict with any other section or provision of this article, such deci- 15 sion shall affect only the section or provision so declared to be uncon- 16 stitutional or unauthorized and shall not affect any other section or 17 part of this article. 18 § 160-xxxx. Judicial review. The actions of the department in granting 19 or refusing to grant or to renew a license under this article or in 20 revoking or suspending such a license or imposing any fine or reprimand 21 on the holder thereof or refusing to revoke or suspend such a license or 22 impose any fine or reprimand shall be subject to review by a proceeding 23 brought under and pursuant to article seventy-eight of the civil prac- 24 tice law and rules at the instance of the applicant for such license, 25 the holder of a license is so revoked, suspended, fined, or reprimanded 26 or the person aggrieved. 27 § 2. This act shall take effect on the one hundred twentieth day after 28 it shall have become a law.
