Ney York AB5389 – Relates to licensure of land leasing agents

Ney York AB5389 -  Relates to licensure of land leasing agents

 

NEW YORK STATE ASSEMBLY
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.


Read More

Leave a Reply

Your email address will not be published. Required fields are marked *