Provides for the appeal of disputes between shareholders and boards of directors of residential cooperatives to a hearing officer appointed by the attorney general.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2382
SPONSOR: Gandolfo (MS) 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 share-
holder 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. 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 direc-
tors 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 direc-
tors. 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 subdivi-
sion 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.
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:
S7259 of 2012.- Referred to Corporations, Authorities, and Commissions;
A5838 of 2013/2014 - Held for consideration. in Corporations, Authori-
ties and Commissions;
A1426 of 2015/2016 -Held for consideration in Corporations, Authorities,
and Commissions;
A5472 of 2017/2018 -Referred to Corporations, Authorities, and Commis-
sions;
A4843 of 2019/2020 -Referred to corporations, authorities and commis-
sions;
A.5326 of 2021/2022-Held for consideration in corporations, authorities
and commissions;
A.2768 of 2023/24-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.
STATE OF NEW YORK
________________________________________________________________________
2382
2025-2026 Regular Sessions
IN ASSEMBLY
January 16, 2025
___________
Introduced by M. of A. GANDOLFO -- Multi-Sponsored by -- M. of A.
COLTON, COOK, RA -- read once and referred to the Committee on Corpo-
rations, 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:
1 Section 1. The cooperative corporations law is amended by adding a new
2 section 78 to read as follows:
3 § 78. Disputes to be heard by attorney general; residential cooper-
4 ative. A shareholder in a cooperative corporation which owns residential
5 real property may appeal any decision by such corporation's board of
6 directors to a hearing officer appointed by the attorney general pursu-
7 ant to subdivision eighteen of section sixty-three of the executive law.
8 A hearing upon such appeal shall be heard within sixty days of the
9 filing thereof with the department of law, with notice to the board of
10 directors. The hearing officer shall provide each party an opportunity
11 to be heard and render final determination based on the evidence and
12 testimony presented at the hearing.
13 § 2. Section 63 of the executive law is amended by adding a new subdi-
14 vision 18 to read as follows:
15 18. Establish an appeals process for the determination of disputes
16 between shareholders and the boards of directors of cooperative corpo-
17 rations pursuant to section seventy-eight of the cooperative corpo-
18 rations law. The attorney general shall appoint and empower such hearing
19 officers as shall be necessary to hear and determine such appeals.
20 § 3. This act shall take effect immediately, except that section one
21 of this act shall take effect on the first of January next succeeding
22 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.
LBD04554-01-5
