Bill Text: NY S09080 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the registration of real estate appraisal management companies or an individual or business entity that provides appraisal management services to creditors or to secondary mortgage market participants including affiliates by the department of state.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2018-12-28 - SIGNED CHAP.517 [S09080 Detail]
Download: New_York-2017-S09080-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9080 IN SENATE June 15, 2018 ___________ Introduced by Sen. HAMILTON -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the executive law, in relation to 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 required. 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. Rule-making authority. 26 160-vvvv. Violations. 27 160-wwww. Severability. 28 160-xxxx. Judicial review. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14549-09-8S. 9080 2 1 § 160-aaaa. Definitions. As used in this article, the following terms 2 shall have the following meanings: 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 security for consumer credit transactions secured by a 14 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 state or twenty-five or more 17 appraisers working in two or more states. An AMC shall not include a 18 department or division of an entity that provides appraisal management 19 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 or verify licensing or certification and negotiate fees 28 and 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. 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. 9080 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: 12 (a) an owner, officer or director of an appraisal management company, 13 or an individual who holds an ownership interest of ten percent or more 14 of such company; 15 (b) an individual employed, appointed or authorized by an appraisal 16 management company that has the authority to enter into a contractual 17 relationship with other persons for the performance of appraisal manage- 18 ment services and has the authority to enter into agreements with 19 appraisers for the performance of appraisals; or 20 (c) an individual who possesses, directly or indirectly, the power to 21 direct or cause the direction of the management or policies of an 22 appraisal management 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 New York state law. 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 such mortgage-backed security. 48 § 160-bbbb. Registration required. It shall be unlawful for a person 49 to, directly or indirectly, engage or attempt to engage in business as 50 an appraisal management company, or to advertise or hold oneself out as 51 engaging in or conducting business as an appraisal management company 52 without first obtaining a certificate of registration issued by the 53 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. 9080 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, any state agency or authori- 4 ty, or any political subdivision of the state that 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 such certificate of registra- 11 tion based upon lack of good moral character which may include, but is 12 not limited to, any of the grounds enumerated in this article. For the 13 purposes of this article, a non-substantive ground for denial, revoca- 14 tion, or surrender of an appraiser's license should not be construed as 15 an automatic prohibition. 16 § 160-ffff. Expiration of license. A certificate of registration 17 granted by the department pursuant to this article shall be valid for a 18 period of two years from the date upon which it is issued. 19 § 160-gggg. Fees. 1. The department shall collect a fee of two hundred 20 fifty dollars for a certificate of registration issued or reissued under 21 the provisions of this article. Additionally, the department shall 22 assess twenty-five dollars for each appraiser added to an appraisal 23 management company's appraiser panel. 24 2. The department shall collect from each appraisal management company 25 seeking to be registered, the amount determined by the appraisal subcom- 26 mittee to be a national registry fee for each appraiser, that performs 27 appraisal services within New York on the appraiser panel of an 28 appraisal management company pursuant to Section 1109(a)(4) of the 29 federal Financial Institutions Reform, Recovery, and Enforcement Act of 30 1989 as amended by the Dodd-Frank Wall Street Reform and Consumer 31 Protection Act of 2010. The department may transmit the annual registry 32 fee to the appraisal subcommittee. The department shall provide its 33 roster of appraisal management companies to the appraisal subcommittee. 34 These transmittals shall occur at least annually. 35 3. Except for changes made on a renewal application, appraisal manage- 36 ment companies shall provide the department with notice of a change in 37 the appraisal management's principal address. Change of address notifi- 38 cations shall be accompanied by a fee of ten dollars. 39 4. Except for changes made on a renewal application, the department 40 shall collect a fee of ten dollars for changing a name on a certificate 41 of registration. 42 5. In lieu of the fee set forth in subdivision one of this section, 43 the department shall collect a fee of three hundred fifty dollars to 44 reissue a certificate of registration under this article which was 45 submitted after the expiration of the immediately preceding registration 46 term. 47 § 160-hhhh. Owner requirements. An appraisal management company apply- 48 ing for a certificate of registration shall not be owned in whole or in 49 part, directly or indirectly, by a person who has had a license, regis- 50 tration or certificate to act as a real estate appraiser denied, 51 revoked, or surrendered in lieu of pending discipline in any state or by 52 a person holding ten percent or more of the company where that person 53 has had a license, registration or certificate to act as a real estate 54 appraiser denied, revoked, or surrendered in lieu of possible discipline 55 in any state.S. 9080 5 1 § 160-iiii. Controlling persons. 1. Each appraisal management company 2 applying for a certificate of registration shall designate one control- 3 ling person who shall be the main contact for all communication between 4 the department and the appraisal management company. Such designated 5 controlling person shall never have had a license or certificate to act 6 as an appraiser denied, revoked, or surrendered in lieu of possible 7 discipline in any state and shall be of good moral character, as deter- 8 mined by the department. Applicants shall cooperate with any such back- 9 ground investigation conducted by the department. 10 2. Each person that owns more than ten percent of an appraisal manage- 11 ment company shall be of good moral character, as determined by the 12 department. Applicants shall cooperate with any such background inves- 13 tigation conducted by the department. 14 3. Each appraisal management company applying for a certificate of 15 registration shall certify to the department that it has reviewed each 16 entity that owns more than ten percent of the appraisal management 17 company and that no entity that owns more than ten percent of the 18 appraisal management company is more than ten percent owned by any 19 person that has had a license or certificate to act as an appraiser 20 denied, revoked, or surrendered in lieu of a pending revocation. 21 § 160-jjjj. Employee requirements. 1. An appraisal management company 22 that applies for a certificate of registration shall not knowingly 23 employ, utilize, or engage, for any real estate appraisal, valuation 24 service or appraisal review assignment, a person who has had a license 25 or certificate to act as an appraiser in this state or in any other 26 state denied, revoked, or surrendered in lieu of possible discipline, 27 unless such license has been reinstated. 28 2. Prior to placing an assignment for an appraisal or valuation 29 service with an appraiser on the appraiser panel of an appraisal manage- 30 ment company, the appraisal management company shall verify that the 31 appraiser receiving the assignment is a competent appraiser as defined 32 by the USPAP Competency Rule with regards to geographic area and the 33 type of property being appraised. An appraiser is deemed part of an 34 appraisal management company panel as of the earliest date on which: (a) 35 the appraisal management company accepts the appraiser for consideration 36 for future appraisal assignments in covered transactions or for second- 37 ary mortgage market participants in connection with covered trans- 38 actions; or (b) engages the appraiser to perform one or more appraisals 39 on behalf of a creditor for a covered transaction or secondary mortgage 40 market participant in connection with covered transactions. 41 3. An appraisal management company may not hire, employ or engage, or 42 in any way contract with or pay a person who is not licensed or certi- 43 fied as a real estate appraiser by the department pursuant to article 44 six-E of this chapter, unless the work being performed is a comparative 45 market analysis for the purpose of or intention to list or sell real 46 estate. 47 4. An appraiser shall be considered part of an appraisal management 48 company's appraiser panel until: (a) the appraisal management company 49 sends a written notice to such appraiser removing such appraiser with an 50 explanation; or (b) receives a written notice from such appraiser asking 51 to be removed or of the death or incapacity of such appraiser. 52 § 160-kkkk. Restrictions. An appraisal management company that applies 53 for a certificate of registration shall not knowingly: 54 1. Employ any person in a position in which the person has the respon- 55 sibility to order appraisals or valuation services or to review 56 completed appraisals who has had a license, registration or certificateS. 9080 6 1 to act as an appraiser in this state or in any other state, denied, 2 revoked, or surrendered in lieu of a pending revocation, unless such 3 license has been reinstated; 4 2. Enter into any independent contractor arrangement, whether in 5 verbal, written, or by other form, with any person who has had a 6 license, registration or certificate to act as an appraiser in this 7 state or in any other state, denied, revoked, or surrendered in lieu of 8 a pending revocation, unless such license has been reinstated; and 9 3. Enter into any contract, agreement, or other business relationship, 10 whether in verbal, written, or other form, with any entity that employs, 11 has entered into an independent contract arrangement, or has entered 12 into any contract, agreement, or other business relationship, whether in 13 verbal, written, or any other form, with any person who has ever had a 14 license, registration or certificate to act as an appraiser in this 15 state or in any other state, denied, revoked, or surrendered in lieu of 16 a pending revocation, unless such license has been reinstated. 17 § 160-llll. Recordkeeping. Each appraisal management company shall 18 maintain a detailed record of each service request that it receives and 19 the real estate appraiser that performs such appraisal for the appraisal 20 management company. Records shall be maintained for a period of at least 21 five years after such appraisal is completed or two years after final 22 disposition of a judicial proceeding related to such assignment, which- 23 ever period expires later. Appraisal management companies shall make 24 records available to the department upon request. Appraisal management 25 companies shall also allow the department to examine the books and 26 records of the appraisal management company and require it to submit 27 reports, information and documents upon request. Appraisal management 28 companies shall also allow the department to verify that the appraisers 29 on such panel hold a valid license or certification. 30 § 160-mmmm. Appraiser independence; unlawful acts. Each appraisal 31 management company shall ensure that real estate appraisals are 32 conducted independently and free from inappropriate influence and coer- 33 cion. Notwithstanding any other provision of this article, it shall be 34 unlawful for any employee, director, officer, or agent of an appraisal 35 management company registered in this state pursuant to this article to: 36 1. Compensate, coerce, extort, collude, instruct, induce, bribe, or 37 intimidate, or attempt to compensate, coerce, extort, collude, instruct, 38 induce, bribe, or intimidate a person, firm or other entity conducting 39 or involved in an appraisal for the purpose of causing the appraised 40 value assigned under the appraisal or other valuation services to the 41 property to be based on any factor other than the independent judgment 42 of the appraiser; 43 2. Mischaracterize the appraised value of a property in conjunction 44 with a consumer credit transaction; 45 3. Seek to influence an appraiser or otherwise to encourage a targeted 46 value in order to facilitate the making or pricing of a consumer credit 47 transaction; 48 4. Act without just cause to withhold or threaten to withhold timely 49 payment for an appraisal report or for other valuation services rendered 50 with such appraisal report or services provided in accordance with the 51 contract between parties; 52 5. Act without just cause to withhold or threaten to withhold future 53 business, or to demote or terminate an appraiser without just cause; 54 6. Expressly or implicitly promise future business, promotions, or 55 increased compensation for an appraiser in exchange for the real estateS. 9080 7 1 appraiser inflating or deflating his or her appraised value of real 2 property; 3 7. Require a real estate appraiser to indemnify an appraisal manage- 4 ment company or hold an appraisal management company harmless for any 5 liability, damage, losses, or claims arising out of the services 6 performed by such appraisal management company, and not the services 7 performed by the appraiser; 8 8. Condition the request for an appraisal or the payment of an earned 9 fee, salary or bonus, on the opinion, conclusion, or valuation to be 10 reached, or on a preliminary estimate or opinion requested from an 11 appraiser; 12 9. Request that an appraiser provide an estimated, predetermined, or 13 desired valuation in an appraisal report, or provide estimated values or 14 comparable sales at any time prior to the appraiser's completion of an 15 appraisal; 16 10. Provide to an appraiser an anticipated, estimated, encouraged, or 17 desired value for a subject property or a proposed or target amount to 18 be loaned to the borrower, except that a copy of the sales contract for 19 purchase transactions may be provided; or 20 11. Provide to an appraiser, or any entity or person related to the 21 appraiser, stock or any other financial or non-financial benefits in 22 exchange for appraising property in a manner other than that which is 23 within the independent opinion of the appraiser. 24 Nothing in this section shall be construed as prohibiting the 25 appraisal management company from asking an appraiser to consider addi- 26 tional, appropriate property information, including: additional compa- 27 rable properties to make or support an appraisal; provide further 28 detail, substantiation, or explanation for the appraiser's value conclu- 29 sion; or correct errors in the appraisal report. 30 § 160-nnnn. Mandatory reporting. An appraisal management company that 31 has a reasonable basis to believe an appraiser within the appraisal 32 management company's appraisal panel is failing to comply with the 33 uniform standards of professional appraisal practice, is violating 34 applicable laws, or is otherwise engaging in unethical or unprofessional 35 conduct shall immediately refer such matter to the department. 36 § 160-oooo. Unprofessional conduct. 1. Appraisal management companies 37 shall not engage in unprofessional conduct including, but not limited to 38 the following: 39 (a) Requiring an appraiser to modify any aspect of an appraisal report 40 or valuation service report, unless such modifications are appropriate 41 according to USPAP; 42 (b) Requiring an appraiser to prepare an appraisal report or valuation 43 service report if such appraiser, in their professional judgment, 44 believes they don't have the necessary expertise for the specific 45 geographic and or specific area type; 46 (c) Requiring an appraiser to prepare an appraisal report or valuation 47 service under a time frame that such appraiser believes, in their 48 professional judgment, does not afford such appraiser the ability to 49 meet all the relevant legal and professional obligations including USPAP 50 requirements. Notwithstanding the foregoing provisions of this para- 51 graph, all appraisal reports should be completed within a reasonable 52 timeframe and appraisers may not unnecessarily delay completing 53 appraisal assignments; 54 (d) Prohibiting or inhibiting communication between the appraiser and 55 the lender, a real estate licensee, or any other person from whom such 56 appraiser, in their professional judgment is relevant;S. 9080 8 1 (e) Requiring the appraiser to do anything that does not comply with 2 USPAP, or any assignment conditions and certifications required by the 3 client; 4 (f) Making any portion of the appraiser's fee or the appraisal manage- 5 ment company's fee contingent upon a favorable outcome, including, but 6 not limited to, the closing of a loan, requiring a specific dollar 7 amount be achieved by such appraiser in the appraisal report, making 8 requests for the purpose of facilitating a mortgage loan transaction, 9 setting a broker price opinion, or setting any other real property price 10 or value estimation that does not qualify as an appraisal; or 11 (g) Each appraisal management company operating in this state shall 12 make payment to an appraiser for the completion of an appraisal or valu- 13 ation assignment within thirty days of the date on which such appraiser 14 transmits or otherwise provides the completed appraisal or valuation 15 services to the appraisal management company or its assignee; 16 2. It shall be unlawful for an appraisal management company to: 17 (a) Knowingly fail to compensate an appraiser at a rate that is 18 reasonable and customary for appraisal or other valuation services being 19 performed in the market area of the property being appraised without the 20 services of an appraisal management company in a manner that is either 21 inconsistent with, or would violate section 1639(e) of the federal Truth 22 in Lending Act (15 USC §1639(e)); 23 (b) Knowingly include any fees for appraisal management services that 24 are performed by the appraisal management company for a lender, client, 25 or other person in the amount that it charges the lender, client, or 26 other person for the actual completion of an appraisal or valuation 27 service by an appraiser that is part of the appraiser panel of the 28 appraisal management company; 29 (c) Knowingly fail to separate any and all fees charged to a client by 30 the appraisal management company for the actual completion of an 31 appraisal by an appraiser from the fees charged to a lender, client, or 32 any other person by an appraisal management company for appraisal 33 management services; 34 (d) Knowingly prohibit an appraiser from recording the fee that such 35 appraiser was paid by the appraisal management company for the perform- 36 ance of the appraisal within the appraisal report that is submitted by 37 such appraiser to the appraisal management company; 38 (e) Knowingly fail to separately state the fees paid to an appraiser 39 for appraisal services and the fees charged by the appraisal management 40 company for services associated with the management of the appraisal 41 process to the client, borrower and any other payer. Appraisal manage- 42 ment companies shall provide a copy of the appraiser's invoice with a 43 copy of any appraisal report submitted to a client or a client's repre- 44 sentative; 45 (f) Knowingly allow the removal from rotation of an appraiser from an 46 appraiser panel, without prior written notice to such appraiser with 47 just cause; or 48 (g) Knowingly obtain, use, or pay for a second or subsequent appraisal 49 or the ordering of an automated valuation model or any other valuation 50 service in connection with a mortgage financing transaction unless there 51 is a reasonable basis to believe that the initial appraisal was flawed 52 or tainted and such basis is clearly and appropriately noted in the loan 53 file, or unless such appraisal or automated valuation model is done 54 pursuant to a bona fide pre- or post-funding appraisal review or quality 55 control process. Nothing in this paragraph shall prohibit an AMC from 56 obtaining additional appraisals if required by a lending program, or ifS. 9080 9 1 such additional appraisals are required by applicable local, state, or 2 federal law. 3 § 160-pppp. Alteration of appraisal reports. An appraisal management 4 company shall not alter, modify, or otherwise change a completed 5 appraisal or valuation service report submitted by an appraiser by 6 removing such appraiser's signature or seal or by adding information to, 7 or removing information from such report with intent to change the valu- 8 ation conclusion. An appraisal management company shall not require an 9 appraiser to provide such appraisal management company with such 10 appraiser's digital signature or seal. 11 § 160-qqqq. Enforcement. The department may revoke or suspend the 12 license of an appraisal management company, or in lieu thereof may 13 impose a fine, per violation, not to exceed twenty-five thousand dollars 14 if the department finds that the licensee has made a material misstate- 15 ment in the application for such license, or if such licensee has been 16 found guilty of fraud or fraudulent practices, or for dishonest or 17 misleading advertising, or has demonstrated untrustworthiness or incom- 18 petency to act as an appraisal management company, or has violated any 19 provision of this article or a regulation promulgated thereunder. The 20 department shall report any such violations by appraisal management 21 companies to the appraisal subcommittee. 22 § 160-rrrr. Disciplinary hearings. The department shall, before revok- 23 ing or suspending any license or imposing any fine or reprimand on the 24 holder thereof, and at least twenty days prior to the date set for the 25 hearing, notify, in writing, the holder of such license of any charges 26 made and shall afford such licensee an opportunity to be heard in person 27 or by counsel in reference thereto. Such written notice may be served 28 by personal delivery to the licensee, or by certified mail to the last 29 known business address of such licensee or unlicensed person, or by any 30 method authorized by the civil practice law and rules. The hearing on 31 such charges shall be at such time and place as the department shall 32 prescribe. 33 § 160-ssss. Power to suspend a license. In cases where the health, 34 safety, or welfare of the public is endangered, the department shall 35 have the authority to immediately suspend a license pending a hearing 36 before an administrative law judge. 37 § 160-tttt. Investigation. The department shall have the power to 38 enforce the provisions of this article and upon complaint of any person, 39 or on its own initiative, to investigate any violation thereof or to 40 investigate the business, business practices and business methods of an 41 appraisal management company, if in the opinion of the department such 42 investigation is warranted. Each such applicant or licensee shall be 43 obliged, on request of the department, to supply such information as may 44 be required concerning his or its business, business practices or busi- 45 ness methods, or proposed business practices or methods. 46 For the purpose of enforcing the provisions of this article, and in 47 making investigations relating to any violation thereof, and for the 48 purpose of investigating the character, competency and integrity of the 49 applicants or licensees hereunder, and for the purpose of investigating 50 the business, business practices and business methods of any applicant 51 or licensee, or of the officers or agents thereof, the department, 52 acting by such officer or person in the department as the secretary of 53 state may designate, shall have the power to subpoena and bring before 54 the officer or person so designated any person in this state and require 55 the production of any books, records or papers which he deems relevant 56 to the inquiry and administer an oath to and take testimony of anyS. 9080 10 1 person or cause his or her deposition to be taken, except that any 2 applicant or licensee or officer or agent thereof shall not be entitled 3 to fees and/or mileage. A subpoena issued under this section shall be 4 regulated by the civil practice law and rules. 5 § 160-uuuu. Rule-making authority. The department may adopt rules not 6 inconsistent with the provisions of this chapter which may be reasonably 7 necessary to implement, administer, and enforce the provisions of this 8 chapter. 9 § 160-vvvv. Violations. 1. Any person or company who fails to obtain a 10 certificate of registration required pursuant to this article shall be 11 guilty of a misdemeanor. 12 2. Criminal actions for failure to obtain a certificate of registra- 13 tion may also be prosecuted by the attorney general, or his or her depu- 14 ty, in the name of the people of the state, and in any such prosecution 15 the attorney general, or his or her deputy, may exercise all the powers 16 and perform all the duties the district attorney is otherwise authorized 17 to exercise or to perform therein. 18 § 160-wwww. Severability. Should the courts of this state declare any 19 provision of this article unconstitutional, or unauthorized, or in 20 conflict with any other section or provision of this article, such deci- 21 sion shall affect only such section or provision so declared to be 22 unconstitutional or unauthorized and shall not affect any other section 23 or part of this article. 24 § 160-xxxx. Judicial review. The actions of the department in granting 25 or refusing to grant or to renew a license under this article or in 26 revoking or suspending such a license or imposing any fine or reprimand 27 on the holder thereof or refusing to revoke or suspend such a license or 28 impose any fine or reprimand shall be subject to review by a proceeding 29 brought under and pursuant to article seventy-eight of the civil prac- 30 tice law and rules at the instance of the applicant for such license, 31 the holder of a license so revoked, suspended, fined, or reprimanded or 32 the person aggrieved. 33 § 2. This act shall take effect on the one hundred twentieth day after 34 it shall have become a law; provided, however, that the department of 35 state is authorized to propose, adopt, amend and/or repeal any rule or 36 regulation necessary for the implementation of this act immediately.
