Bill S4626-2013

Provides for the appeal of disputes between shareholders and boards of directors of residential cooperative corporations to a hearing officer appointed by the attorney general

Provides for the appeal of disputes between shareholders and boards of directors of residential cooperatives to a hearing officer appointed by the attorney general.

Details

Actions

  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Apr 16, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

BILL NUMBER:S4626

TITLE OF BILL: An act to amend the cooperative corporations law and the executive law, in relation to providing for the resolution of disputes between the board of directors of residential cooperative corporations and a shareholder to be determined by a hearing officer appointed by the attorney general

PURPOSE: To provide for the appeal of disputes between shareholders and boards of directors of residential cooperative corporations to a neutral hearing officer appointed by the attorney general.

SUMMARY OF PROVISIONS: Section 1 of the bill adds a new section 78 to the cooperative corporations law to provide that a shareholder in a cooperative corporation which owns residential real property may appeal any decision by such corporation's board of directors to a hearing officer appointed by the attorney general. This section further provides that a hearing upon appeal shall be heard within sixty days, and that the hearing officer shall provide each party an opportunity to be heard and render final determination based on the evidence and testimony presented at the hearing.

Section 2 amends executive law § 63 by adding a new subdivision 16 to require that the Attorney General establish an appeals process for the determination of disputes between shareholders and the boards of directors of cooperative corporations.

Section 3 provides the effective date

JUSTIFICATION: There have been numerous complaints by shareholders of cooperative corporations recently in connection with unreasonable actions taken by cooperative boards of directors. Presently, shareholders are bound by the decision of the board without a right to appeal to a neutral party. This bill would correct this situation by providing shareholders with an opportunity to appeal a determination of the board to a neutral hearing officer appointed by the attorney general.

LEGISLATIVE HISTORY: S.7259/2012

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately, except that section one of this act shall take effect on the first of January next succeeding the date on which it shall have become a law.


Text

STATE OF NEW YORK ________________________________________________________________________ 4626 2013-2014 Regular Sessions IN SENATE April 16, 2013 ___________
Introduced by Sen. BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the cooperative corporations law and the executive law, in relation to providing for the resolution of disputes between the board of directors of residential cooperative corporations and a shareholder to be determined by a hearing officer appointed by the attorney general THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The cooperative corporations law is amended by adding a new section 78 to read as follows: S 78. DISPUTES TO BE HEARD BY ATTORNEY GENERAL; RESIDENTIAL COOPER- ATIVE. A SHAREHOLDER IN A COOPERATIVE CORPORATION WHICH OWNS RESIDENTIAL REAL PROPERTY MAY APPEAL ANY DECISION BY SUCH CORPORATION'S BOARD OF DIRECTORS TO A HEARING OFFICER APPOINTED BY THE ATTORNEY GENERAL PURSU- ANT TO SUBDIVISION SIXTEEN OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW. A HEARING UPON SUCH APPEAL SHALL BE HEARD WITHIN SIXTY DAYS OF THE FILING THEREOF WITH THE DEPARTMENT OF LAW, WITH NOTICE TO THE BOARD OF DIRECTORS. THE HEARING OFFICER SHALL PROVIDE EACH PARTY AN OPPORTUNITY TO BE HEARD AND RENDER FINAL DETERMINATION BASED ON THE EVIDENCE AND TESTIMONY PRESENTED AT THE HEARING. S 2. Section 63 of the executive law is amended by adding a new subdi- vision 16 to read as follows: 16. ESTABLISH AN APPEALS PROCESS FOR THE DETERMINATION OF DISPUTES BETWEEN SHAREHOLDERS AND THE BOARDS OF DIRECTORS OF COOPERATIVE CORPO- RATIONS PURSUANT TO SECTION SEVENTY-EIGHT OF THE COOPERATIVE CORPO- RATIONS LAW. THE ATTORNEY GENERAL SHALL APPOINT AND EMPOWER SUCH HEARING OFFICERS AS SHALL BE NECESSARY TO HEAR AND DETERMINE SUCH APPEALS. S 3. This act shall take effect immediately, except that section one of this act shall take effect on the first of January next succeeding the date on which it shall have become a law.

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