NY State Senate Bill 2011-S7259

Senate Bill S7259

2011-2012 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 02, 2012	referred to corporations, authorities and commissions

2011-S7259 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Cooperative Corporations Law
Laws Affected:: Add §78, Coop Corps L; amd §63, Exec L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S4626
2015-2016: S99
2017-2018: S637
2019-2020: S631

2011-S7259 (ACTIVE) - Summary

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

2011-S7259 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7259

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:
New bill.

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.

2011-S7259 (ACTIVE) - Bill Text download pdf

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

                                  7259

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen. JOHNSON -- 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15641-01-2

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