What's happening
This bill allows shareholders in residential cooperatives to appeal board decisions to a hearing officer appointed by the attorney general.
Why it matters
Creates an independent appeals process for co-op shareholders. By enabling appeals to a hearing officer appointed by the Attorney General, the bill provides shareholders with a neutral venue outside of the board’s internal decision-making, potentially increasing fairness and reducing board overreach.
Imposes a clear and timely resolution timeline. The bill requires that hearings must be held within 60 days of an appeal’s filing, aiming to prevent drawn-out disputes and offering shareholders a more predictable process.
Empowers the Attorney General’s office with oversight and resources. The Attorney General must establish and manage the appeals system, including appointing sufficient hearing officers, which could lead to more consistent standards in handling co-op disputes statewide.
May alter the balance of power within co-ops. By introducing state oversight, the bill could deter arbitrary or discriminatory decisions by co-op boards, giving shareholders greater leverage and legal recourse in conflicts with their boards.
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Who cares
Headline styles
Co-op Dispute Appeal Process
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Co-op Owners Appeal Decisions
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Andrew R. Garbarino
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
631
2019-2020 Regular Sessions
IN SENATE (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 Assembly, 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 cooperative. 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 pursuant 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 subdivision 17 to read as follows:
17. Establish an appeals process for the determination of disputes between shareholders and the boards of directors of cooperative corporations pursuant to section seventy-eight of the cooperative corporations 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
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.