NY State Senate Bill 2019-S631

Senate Bill S631

2019-2020 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
Jan 08, 2020	referred to corporations, authorities and commissions
Jan 09, 2019	referred to corporations, authorities and commissions

2019-S631 (ACTIVE) - Details

See Assembly Version of this Bill:: A4843
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:: 2011-2012: S7259
2013-2014: S4626, A5838
2015-2016: S99, A1426
2017-2018: S637, A5472
2021-2022: A5326
2023-2024: A2768

2019-S631 (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.

2019-S631 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S631

SPONSOR: BOYLE
 
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 corpo-
rations 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 hear-
ing.

Section 2 amends executive law § 63 by adding a new subdivision 17 to
require that the Attorney General establish an appeals process for the
determination of disputes between shareholders and the boards of direc-
tors 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:

2015-16: Referred to Corporations Committee
2013-14: Referred to Corporations Committee S.7259/2012
01/04/17 REFERRED TO CORPORATIONS,AUTHORITIES AND COMMISSIONS
01/03/18 REFERRED TO CORPORATIONS,AUTHORITIES AND COMMISSIONS

 
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.

2019-S631 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    631
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 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:
   § 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  SEVENTEEN  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.
   § 2. Section 63 of the executive law is amended by adding a new subdi-
 vision 17 to read as follows:
   17. 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.
   §  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.
                                                            LBD04372-01-9

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