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

                                 184--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary  --  recommitted
  to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the real property law, in relation to providing  certif-
  ication and registration requirements for property managers of cooper-
  atives and condominiums

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property law is amended by adding  a  new  article
12-D to read as follows:
                               ARTICLE 12-D
                      RESIDENTIAL REALTY MANAGEMENT
SECTION 448. RESIDENTIAL REALTY MANAGEMENT.
  S  448.  RESIDENTIAL  REALTY  MANAGEMENT.  1. AS USED IN THIS ARTICLE,
UNLESS THE CONTEXT OTHERWISE REQUIRES:
  (A) "CERTIFICATION" SHALL MEAN A DESIGNATION BY THE SECRETARY OF STATE
THAT AN INDIVIDUAL HAS MET THE PREDETERMINED  QUALIFICATIONS  WHICH  ARE
DEEMED  TO  CONSTITUTE  A  LEVEL  OF PROFICIENCY ADEQUATE TO PERFORM THE
DAY-TO-DAY MANAGEMENT AND OPERATION OF REAL PROPERTY USED  FOR  RESIDEN-
TIAL PURPOSES AND OWNED AS A COOPERATIVE OR CONDOMINIUM.
  (B) "PROPERTY MANAGER" SHALL MEAN ANY PERSON WHO, IN RETURN FOR REMUN-
ERATION OR COMPENSATION OF ANY KIND, PERFORMS RESIDENTIAL REALTY MANAGE-
MENT  FOR REAL PROPERTY OWNED AS A CONDOMINIUM OR COOPERATIVE.  PROPERTY
MANAGER SHALL NOT MEAN OR INCLUDE:
  (1) A SHAREHOLDER OR OWNER OF THE COOPERATIVE OR CONDOMINIUM ACTING AS
A PROPERTY MANAGER WITHOUT REMUNERATION OR COMPENSATION OF ANY KIND; OR
  (2) ANY DEVELOPER OR SPONSOR OF A COOPERATIVE  OR  CONDOMINIUM  DURING
THE  PERIOD THAT THE DEVELOPER OR SPONSOR RETAINS CONTROL OF THE COOPER-

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

                                                           LBD00275-02-4

S. 184--A                           2

ATIVE OR CONDOMINIUM; PROVIDED THAT THE DEVELOPER OR SPONSOR HAS IN  ITS
EMPLOY OR HAS RETAINED A PROPERTY MANAGER CERTIFIED UNDER THIS ARTICLE.
  (C) "RESIDENTIAL REALTY MANAGEMENT" SHALL MEAN EITHER:
  (1)  THE  PERFORMANCE  OF  PRINCIPAL MANAGERIAL RESPONSIBILITIES FOR A
COOPERATIVE OR CONDOMINIUM; AND THE AUTHORITY FOR  POLICY  OR  FINANCIAL
DECISION  MAKING  FOR  ANY  ONE  OF THE FOLLOWING SERVICES: MAINTENANCE,
SECURITY, ENERGY CONSERVATION, CODE COMPLIANCE, LABOR RELATIONS,  FISCAL
BUDGETARY  RESPONSIBILITIES,  TENANT  RELATIONS, GOVERNMENTAL RELATIONS,
JANITORIAL SERVICES OR ANY OTHER PROVIDED SERVICE; OR
  (2) THE RESPONSIBILITY FOR THE COLLECTION AND  EXPENDITURE  OF  MONIES
FOR  AND ON BEHALF OF SUCH COOPERATIVE OR CONDOMINIUM, ITS OWNERS AND/OR
MANAGING BOARD, UNDER WHATEVER NAME KNOWN.
  2. NO PERSON SHALL PERFORM RESIDENTIAL REALTY MANAGEMENT  UNLESS  SUCH
PERSON  SHALL  HAVE FILED A PROPERTY MANAGER REGISTRATION STATEMENT WITH
THE SECRETARY OF STATE AS REQUIRED BY THIS SECTION AND HAS  BEEN  ISSUED
BY  THE  SECRETARY OF STATE A CERTIFICATE DEMONSTRATING THAT SUCH REGIS-
TRANT HAS SATISFIED ALL THE REQUIREMENTS FOR CERTIFICATION AS A PROPERTY
MANAGER AS SET FORTH BY THIS ARTICLE.
  NO COOPERATIVE OR CONDOMINIUM BOARD SHALL EMPLOY ANY  PERSON  FOR  THE
PURPOSE  OF  PERFORMING RESIDENTIAL REALTY MANAGEMENT UNLESS SUCH PERSON
HAS BEEN CERTIFIED BY THE OFFICE OF THE SECRETARY OF  STATE.  NOR  SHALL
THE  COOPERATIVE  OR  CONDOMINIUM  BOARD  EMPLOY  ANY FIRM, PARTNERSHIP,
CORPORATION OR OTHER ENTITY UNLESS ITS PROPERTY MANAGERS  ARE  CERTIFIED
BY THE OFFICE OF THE SECRETARY OF STATE.
  3.  THE  SECRETARY OF STATE SHALL PROMULGATE THE FORM OF THE REGISTRA-
TION STATEMENT TO BE KNOWN AS THE "PROPERTY MANAGER REGISTRATION  STATE-
MENT."  THE  PROPERTY MANAGER REGISTRATION STATEMENT FORM SHALL REQUIRE,
BUT NEED NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
  (A) THE NAME AND ADDRESS OF THE  PERSON  FILING  THE  REGISTRATION  TO
OBTAIN CERTIFICATION PURSUANT TO THIS ARTICLE;
  (B)  THE NAME AND ADDRESS OF THE CORPORATION, FIRM, ASSOCIATION, PART-
NERSHIP OR OTHER ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
  (C) THE NAME AND ADDRESS OF  ALL  PARTNERS,  OFFICERS,  DIRECTORS  AND
PRINCIPALS  OF SUCH CORPORATION, FIRM, ASSOCIATION, PARTNERSHIP OR OTHER
ENTITY THAT CURRENTLY EMPLOYS THE APPLICANT;
  (D) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
  (1) BEEN CONVICTED OF ANY CRIME INVOLVING FRAUD OR DISHONESTY  OR  HAD
ANY CIVIL JUDGMENTS RELATING TO WORK AS A REAL PROPERTY MANAGER;
  (2)  EVER  HAD A REAL ESTATE BROKER'S LICENSE, AND IF SO, WHETHER SUCH
LICENSE WAS EVER REVOKED OR SUSPENDED;
  (3) AT ANY TIME IN THE PAST BEEN ISSUED A  CERTIFICATION  PURSUANT  TO
THIS  SECTION, AND IF SO, WHETHER SUCH CERTIFICATION WAS EVER REVOKED OR
SUSPENDED;
  (E) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN ENGAGED IN RESIDEN-
TIAL REALTY MANAGEMENT WHERE APPLICABLE AND A LIST OF EACH BUILDING  FOR
WHICH THE REGISTRANT HAS PERFORMED RESIDENTIAL REALTY MANAGEMENT AND THE
DATES AND ADDRESSES THEREOF;
  (F)  THE  NAME  AND  ADDRESS OF THE APPROVED PROPERTY MANAGER TRAINING
PROGRAM THAT THE APPLICANT HAS SATISFACTORILY COMPLETED AND THE DATE  OF
SUCH COMPLETION, IF REQUIRED; AND
  (G) A SWORN STATEMENT BY THE PROPERTY MANAGER THAT THE INFORMATION SET
FORTH IN THE STATEMENT IS CURRENT AND ACCURATE.
  4.  EVERY  CERTIFICATION  ISSUED  PURSUANT  TO  THIS  SECTION SHALL BE
RENEWED AS SET FORTH BY THE SECRETARY OF STATE BUT IN NO EVENT SHALL THE
TERM OF SUCH CERTIFICATION EXCEED TWO  YEARS.  THE  SECRETARY  OF  STATE

S. 184--A                           3

SHALL  COLLECT  A  FEE  OF FIFTY DOLLARS FOR EACH CERTIFICATION AND EACH
RENEWAL PURSUANT TO THIS SECTION.
  5.  A  CERTIFIED  PROPERTY  MANAGER  SHALL GIVE THE SECRETARY OF STATE
WRITTEN NOTIFICATION WITHIN FORTY-FIVE DAYS OF ANY  MATERIAL  CHANGE  OF
CIRCUMSTANCES  WHICH VARIES FROM THE INFORMATION CONTAINED IN HIS OR HER
SWORN PROPERTY MANAGER REGISTRATION STATEMENT PREVIOUSLY PROVIDED TO THE
SECRETARY OF STATE INCLUDING, BUT NOT LIMITED TO, CHANGES IN EMPLOYMENT,
RETIREMENT, RESIGNATION OR TERMINATION.
  6. THE SECRETARY OF STATE, UPON THE RECEIPT AND REVIEW OF A  SATISFAC-
TORILY  COMPLETED  PROPERTY  MANAGER REGISTRATION STATEMENT, MAY ISSUE A
CERTIFICATION TO ANY APPLICANT WHO HAS:
  (A) (1) SUCCESSFULLY COMPLETED A   PROPERTY MANAGER  TRAINING  PROGRAM
APPROVED BY THE SECRETARY OF STATE WHICH PROVIDES THE APPLICANT WITH THE
REQUISITE  SKILLS,  KNOWLEDGE AND TRAINING NECESSARY TO PERFORM RESIDEN-
TIAL REALTY MANAGEMENT AS DEFINED BY PARAGRAPH (C) OF SUBDIVISION ONE OF
THIS SECTION, OR (2) BEEN GAINFULLY EMPLOYED AS A  PROPERTY  MANAGER  AS
DEFINED IN PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION FOR THE FIVE
YEARS IMMEDIATELY PRECEDING ENACTMENT OF THIS SECTION; AND
  (B)  HAS  MET ANY OTHER CRITERIA ESTABLISHED BY THE SECRETARY OF STATE
IN ORDER TO BE ELIGIBLE TO RECEIVE CERTIFICATION AS A PROPERTY  MANAGER;
OR
  (C)  HAS  DEMONSTRATED,  IN  THE  CASE OF A CERTIFIED PROPERTY MANAGER
APPLYING FOR RECERTIFICATION, THE COMPETENCY AND INTEGRITY  TO  CONTINUE
TO PERFORM THE DUTIES OF A PROPERTY MANAGER AND HAS NOT HAD SUCH CERTIF-
ICATION REVOKED.
  THE  SECRETARY  OF  STATE  MAY  REFUSE   TO ISSUE A CERTIFICATE TO ANY
PERSON WHO HE OR SHE FINDS, AFTER NOTICE AND HEARING, HAS BEEN CONVICTED
OF ANY CRIME INVOLVING FRAUD OR DISHONESTY, OR WHERE REFUSAL WILL IN HIS
OR HER JUDGMENT, BEST PROMOTE THE INTERESTS OF THE PEOPLE OF THIS STATE.
  7. THE SECRETARY OF STATE SHALL ESTABLISH PROCEDURES AND CRITERIA, AND
SHALL PROMULGATE REGULATIONS, FOR: (A) APPROVING OR DISAPPROVING  APPLI-
CATIONS  FOR  CERTIFICATIONS  TO  ACT AS A PROPERTY MANAGER; AND (B) THE
APPROVAL OF AND THE PERIODIC REVIEW OF CERTIFICATION TRAINING  PROGRAMS.
ANY  COMPLAINT  IN  CONNECTION  WITH  AN ACTION TAKEN OR INACTION BY THE
SECRETARY OF STATE PURSUANT TO THIS ARTICLE SHALL BE WITHIN THE  PURVIEW
OF  THE  SECRETARY OF STATE.  IN ESTABLISHING THE PROCEDURES REQUIRED BY
THIS SUBDIVISION, THE SECRETARY OF STATE MAY PROVIDE THAT ANY  ORGANIZA-
TION  WHICH HAS BEEN DESIGNATED BY THE FEDERAL DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT AS AN APPROVED CERTIFICATION TRAINING PROGRAM MAY  ACT
AS SUCH PURSUANT TO THIS ARTICLE.
  8.  THE  SECRETARY  OF  STATE  MAY  REFUSE  TO RENEW, OR MAY REVOKE OR
SUSPEND THE CERTIFICATION OF ANY PROPERTY MANAGER, IF, AFTER NOTICE  AND
HEARING, HE OR SHE FINDS THAT SUCH PROPERTY MANAGER HAS FAILED TO COMPLY
WITH  ANY OF THE REQUIREMENTS IMPOSED BY THE PROVISIONS HEREIN AND IF IN
HIS OR HER JUDGMENT SUCH SUSPENSION OR REVOCATION IS  REASONABLY  NECES-
SARY TO PROTECT THE INTERESTS OF THE PEOPLE OF THIS STATE. THE SECRETARY
OF STATE MAY IN HIS OR HER DISCRETION REINSTATE SUCH CERTIFICATION WHERE
SUCH GROUNDS FOR SUSPENSION OR REVOCATION NO LONGER EXISTS.
  9.  THE  PROVISIONS  OF  THIS  SECTION SHALL NOT APPLY TO ANY PROPERTY
MANAGER OR ANY FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY  AFFILIATE
OF  SUCH  FIRM,  ASSOCIATION, PARTNERSHIP OR ENTITY EMPLOYING A PROPERTY
MANAGER, CONTRACTING WITH A PROPERTY MANAGER OR CONTRACTING TO PROVIDE A
PROPERTY MANAGER, IF ALL THE CONDOMINIUMS OR COOPERATIVES FOR WHICH SUCH
PROPERTY MANAGER, FIRM, ASSOCIATION, PARTNERSHIP, ENTITY AND ANY  AFFIL-
IATE  OF SUCH FIRM, ASSOCIATION, PARTNERSHIP OR ENTITY PERFORMS SERVICES
COMPRISES LESS THAN TWENTY-FIVE RESIDENTIAL UNITS.

S. 184--A                           4

  10. ANY PROPERTY MANAGER OR ANY FIRM, ASSOCIATION, PARTNERSHIP, CORPO-
RATION OR OTHER ENTITY, OTHER THAN A COOPERATIVE OR  CONDOMINIUM  BOARD,
EMPLOYING  A  PROPERTY  MANAGER,  CONTRACTING WITH A PROPERTY MANAGER OR
CONTRACTING TO PROVIDE A PROPERTY MANAGER THAT FAILS TO COMPLY WITH  THE
REQUIREMENTS  OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY NOT TO
EXCEED ONE THOUSAND DOLLARS FOR A FIRST  VIOLATION,  TWO  THOUSAND  FIVE
HUNDRED  DOLLARS FOR A SECOND VIOLATION, AND FIVE THOUSAND DOLLARS FOR A
THIRD OR SUBSEQUENT VIOLATION.
  ANY COOPERATIVE OR CONDOMINIUM BOARD WHICH KNOWINGLY HIRES AN UNREGIS-
TERED PROPERTY MANAGER MAY BE LIABLE FOR A CIVIL PENALTY NOT  TO  EXCEED
ONE THOUSAND DOLLARS.
  11.  ALL  MONIES COLLECTED WHILE PERFORMING RESIDENTIAL REALTY MANAGE-
MENT SHALL BE SEGREGATED AND SEPARATE ACCOUNTS SHALL BE  MAINTAINED  FOR
EACH  CONDOMINIUM  OR  COOPERATIVE  BEING MANAGED. ANY VIOLATION OF THIS
PROVISION SHALL CONSTITUTE A MISDEMEANOR PUNISHABLE BY  A  FINE  NOT  TO
EXCEED FIVE THOUSAND DOLLARS.
  12.  WHEN  A  PROPERTY  MANAGER  CEASES  TO PERFORM RESIDENTIAL REALTY
MANAGEMENT SERVICES FOR  A  COOPERATIVE  OR  CONDOMINIUM,  THE  PROPERTY
MANAGER  WITHIN  TEN  BUSINESS  DAYS  SHALL BE REQUIRED TO TURN OVER ALL
BUILDING RECORDS AND ALL FUNDS, WHICH HAVE BEEN PLACED INTO HIS  OR  HER
CARE  OR  ARE IN HIS OR HER POSSESSION, TO THE BOARD OF DIRECTORS OF THE
COOPERATIVE OR BOARD OF MANAGERS OF THE CONDOMINIUM OR  THEIR  DESIGNEE.
NEVERTHELESS,  SUCH  FUNDS  AND/OR RECORDS REQUIRING BANK RECONCILIATION
SHALL BE TURNED OVER WITHIN FORTY-FIVE DAYS OF TERMINATION.
  13.  THE  ATTORNEY  GENERAL  SHALL  HAVE  THE  POWER  TO  ENFORCE  THE
PROVISIONS OF THIS ARTICLE.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law, except that any rules and regulations  necessary  for
the  timely  implementation  of  this act on its effective date shall be
promulgated on or before such date; provided, however, that  subdivision
2  of  section  448 of the real property law, as added by section one of
this act, shall take effect January 1, 2015.