MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5389 SPONSOR: Lifton TITLE OF BILL: An act to amend the general business law, in relation to licensure of land leasing agents PURPOSE: The purpose of this legislation is to apply licensing standards to the practice of land leasing agents in New York State. SUMMARY OF PROVISIONS: Section 210 provides definitions for terms relevant to this act. Section 211 proscribes the basic information to be supplied on a New York State land leasing agent's license application, the terms for a licensing fee and renewal processing fee not to exceed $300, and that no license renewal shall be granted more than six months after the expira- tion of a license. Section 212 mandates that no land leasing agent may operate in New York without a valid license as proscribed by this article, and that all practicing land leasing agents in New York must be licensed within one year of passage of this article. Section 213 authorizes and empowers the Secretary of State to make rules and regulations as necessary for the proper conduct of the business authorized under this article. Section 214 provides that the provisions of this article are separable in the event that a court of competent jurisdiction should determine that any phrase, clause, part, subdivision, paragraph or section is unconstitutional. JUSTIFICATION: Beginning around 2008, natural gas companies began to engage in a self- described "land grab" across upstate New York with the hope of securing leases for shale gas reserves at bargain rates. As few New York landown- ers were familiar with the practices of the land leasing agents, and, indeed, the idea of possessing valuable mineral rights at all, many landowners signed leases with very unfavorable terms. Countless reports of deceptive tactics and untruths advanced by land leasing agents unfor- tunately cloud the leasing experience of many landowners across the state. New Yorkers deserve better protection and deserve to know the truth before signing away their property rights. By licensing land agents in New York, we can institute a degree of accountability and standards within the profession that will serve to better protect New York landowners. LEGISLATIVE HISTORY: 2012: A 10226, referred to Economic Development. 2013-14: A 882, referred to Economic Development. FISCAL IMPLICATIONS: License fees will generate revenue for the state. EFFECTIVE DATE: This act shall take effect on the sixtieth day after it shall have become law.
AB5389 Text:
STATE OF NEW YORK ________________________________________________________________________ 5389 2015-2016 Regular Sessions IN ASSEMBLY February 20, 2015 ___________ Introduced by M. of A. LIFTON -- read once and referred to the Committee on Economic Development AN ACT to amend the general business law, in relation to licensure of land leasing agents The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new article 2 12-A to read as follows: 3 ARTICLE 12-A 4 LAND LEASING AGENT 5 Section 210. Definitions. 6 211. Application for license. 7 212. Doing business without license prohibited. 8 213. Regulations. 9 214. Separability. 10 § 210. Definitions. When used in this article, the following terms 11 shall have the following meanings: 12 1. "Land leasing agent" means any person who is: 13 (a) a certified land leasing agent (commonly referred to as a "land- 14 man"), certified by the American association of professional landmen; 15 (b) a registered land leasing agent, registered with the American 16 association of professional landmen; or 17 (c) a registered land leasing agent, registered with the American 18 association of professional landmen. 19 2. "Secretary" means the secretary of state. 20 3. "Licensee" means a land leasing agent that has been issued a 21 license in accordance with the provisions of this article. 22 § 211. Application for license. 1. Application for a license required 23 under this article shall be in writing, under oath, and in the form 24 prescribed by the secretary, and shall contain the following: 25 (a) The name and address of the applicant; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03967-01-5
A. 5389 2
1 (b) The place or places, including the complete address or addresses
2 where the business is to be conducted;
3 (c) A summary of all relevant experience of the applicant as a land
4 leasing agent and/or the management of funds;
5 (d) Satisfactory evidence of good moral character; and
6 (e) Such further information as the secretary of state may prescribe
7 by rule or regulation.
8 2. Upon original application for a license to practice as a land leas-
9 ing agent, the applicant shall pay an application fee, in such amount as
10 may be determined by the secretary, not to exceed three hundred dollars.
11 Upon application for a license renewal, the licensee shall pay a renewal
12 processing fee in such amount as shall be determined by the secretary,
13 not to exceed three hundred dollars.
14 3. A license granted under the provisions of this article may be
15 renewed by the secretary upon the application therefor by the licensee,
16 in such form as the secretary may prescribe, accompanied by the nonre-
17 fundable renewal processing fee pursuant to subdivision two of this
18 section. In no event shall renewal be granted more than six months after
19 the date of expiration of a license. No individual shall engage in the
20 business of a land leasing agent subject to this article during any
21 period which may exist between the date of expiration of a license and
22 the renewal thereof.
23 § 212. Doing business without license prohibited. No land leasing
24 agent shall operate in the state except as authorized by this article
25 and without first being licensed by the secretary. All land leasing
26 agents practicing in the state on the effective date of this article
27 shall become licensed within one year of such date.
28 § 213. Regulations. The secretary is hereby authorized and empowered
29 to make such rules and regulations necessary for the proper conduct of
30 the profession authorized under this article, and not inconsistent here-
31 with.
32 § 214. Separability. In the event it is determined by a court of
33 competent jurisdiction that any phrase, clause, part, subdivision, para-
34 graph or section, or any of the provisions of this article is unconsti-
35 tutional or otherwise invalid or inoperative, such determination shall
36 not affect the validity or effect of the remaining provisions of this
37 article.
38 § 2. This act shall take effect on the sixtieth day after it shall
39 have become a law; provided, however, that effective immediately, the
40 addition, amendment and/or repeal of any rule or regulation necessary
41 for the implementation of this act on its effective date are authorized
42 and directed to be made and completed on or before such effective date.
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