S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         2582

                              2011-2012 Regular Sessions

                                 I N  A S S E M B L Y

                                   January 19, 2011
                                      ___________

       Introduced  by  M.  of  A.  GABRYSZAK  -- Multi-Sponsored by -- M. of A.
         CROUCH, HOOPER -- read once and referred 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

       A. 2582                             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;

       A. 2582                             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.

       A. 2582                             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.

       A. 2582                             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

       A. 2582                             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,

       A. 2582                             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.