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Notwithstanding the provisions of any local law for the stabilization of rents in multiple dwellings or the emergency tenant protection act of nineteen seventy-four, the rents of a unit shall be fully subject to control under such local law cr such act, unless exempt under such local law or such act from control by reason of the cooperative or condominium status of the unit, for the entire period during which the property is receiving tax benefits pursuant to this section for the period any such applicable law or act is in effect, whichever is shorter. Thereafter, such rents shall continue to be subject to such control to the same extent and in the same manner as if this section had never applied thereto, except that such rents shall be decontrolled if [the building contains less than six dwelling units or if]:

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(ii) with respect to units which become subject to the provisions of this section after the effective date of this subparagraph, such tax benefit period as provided in the opening paragraph of this paragraph or applicable law or act shall have expired and either each lease [or] and renewal thereof for such unit for the tenant in residence at the time of such decontrol has included a notice in at least twelve point forming such tenant that the unit shall become subject to such decontrol upon the expiration of such tax benefit period as provided in the opening paragraph of this paragraph or applicable law or act and states the approximate date on which such tax benefit period as provided in the opening paragraph of this paragraph is scheduled to expire; or such unit becomes vacant as provided under subparagraph (i) of this paragraph. § 2. Subparagraph two of paragraph (b) of subdivision seven of section four hundred eighty-nine of such law, as amended by such chapter of the laws of nineteen hundred eighty-five, is amended to read as follows:

(2) Any dwelling unit subject to rent regulation on or before the effective date of this subparagraph as a result of receiving a tax exemption or abatement pursuant to this section [and in a building containing six or more dwelling units] shall [continue to] be subject to such regulation until the occurrence of the first vacancy of such unit after such benefits are no longer being received at which time such [rents] unit shall be deregulated or if each lease [or] and renewal thereof for such unit for the tenant in residence at the time of the expiration of the tax benefit period has included a notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon the expiration of such tax benefit period and states the approximate date on which such tax benefit period is scheduled to expire, such dwelling unit shall be deregulated as of the end of the tax benefit period; unless such unit would have been subject to regulation under the rent stabilization law of nineteen hundred sixty-nine or the emergency tenant protection act of nineteen seventy-four.

§ 3. Subdivision c of section YY51-3.0 of the administrative code of the city of New York, as amended by such chapter of the laws of nineteen hundred eighty-five, ́is amended to read as follows:

c. [Housing accommodations] Dwelling units in a building or structure receiving the [benfits] benefits of section J51-2.5 or section J51-5.0 of this code or article eighteen of the private housing finance law, not owned as a cooperative or as a condominium, except as provided in section three hundred fifty-two-eeee of the general business law and not subject to title Y of the code. Upon the expiration or termination for any reason of the benefits of section J51-2.5 or section J51-5.0 of this code or article eighteen of the private housing finance law [such housing accommodations shall remain] any such dwelling unit shall be subject to this title until the occurrence of the first vacancy of such unit after such benefits are no longer being received or if each lease [or] and renewal thereof for such unit for the tenant in residence at the time of the expiration of the tax benefit period has included a notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon the expiration of such tax benefit period and states the approximate date on which such tax benefit period is scheduled to expire, such dwelling unit shall be deregulated as of the end of the tax benefit period; provided, however, that if such [housing accommodations] dwelling unit would have been subject to this title or the emergency tenant protection act of nineteen seventy-four in the absence of this subdivision, such [housing accommodations] dwelling unit shall, upon the expiration of such benefits, continue to be subject to this title or the emergency tenant protection act of nineteen seventy-four to the same extent and in the same manner as if this subdivision had never applied thereto. [Notwithstanding the foregoing, any

building containing less than six_dwelling units shall be decontrolled upon expiration of such benefits. ] § 4. Section eight of such chapter of the laws of nineteen hundred

eighty-five is amended to read as follows: 8. This act shall take effect immediately and shall be deemed to

have been in full force and effect on and after June nineteenth, nineteen hundred eighty-five; provided that the provisions of this act shall supersede any reversion provisions of section three of chapter three hundred forty-six of the laws of nineteen hundred eighty-four; and provided further that the provisions of [section six] sections six and seven of this act shall apply to any tenant in physical possession of an apartment covered by the provisions of such section, whether or not tax exemption or abatement benefits shall have previously ended, regardless of whether any action or proceeding to evict such tenant is pending and regardless of whether a warrant for eviction of such tenant has been issued and shall also apply to tenancies commencing thereafter and provided further that the legal regulated rent for any unit which is subject to the provisions of such section and which was not covered by the provisions of the rent stabilization law of nineteen hundred sixtynine on the date prior to the effective date of such section shall be the greater of the rent charged on May thirtieth, nineteen hundred eighty-five or the maximum rent which could have been charged if the unit had been continuously subject to the rent stabilization law of nineteen hundred sixty-nine for the entire tenancy of [of] the tenant in Occupancy on the effective date of such section; provided further that the amendment to section YY51-3.0 of the rent stabilization law of nineteen hundred sixty-nine made by section seven of this act shall expire on the same date as such law expires and shall not affect the expiration of such law as provided under section YY51-8.0 of such law.

§ 5. This act shall take effect on the same date as such chapter of the laws of nineteen hundred eighty-five takes effect.

SPECIAL NOTE. -Notwithstanding that Chapters 288 and 289 of the Laws of 1985 amend subdivision c of section YY51-3.0 of the former Administrative Code of the City of New York, it is the determination of the Legislative Bill Drafting Commission, pursuant to the provisions of bill section 14 of Chapter 907 of the Laws of 1985 to juxtapose such subdivision, as subdivision c of section 26-504 to the Unconsolidated Law entitled "The Administrative Code of the City of New York", as enacted by such Chapter 907 of the Laws of 1985.

CHAPTER 290

AN ACT to amend the civil practice law and rules, in relation to personal service upon a state agency

Became a law June 30, 1985, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section three hundred seven of the civil practice law and rules is amended to read as follows:

§ 307. Personal service upon the state. 1. Personal service upon the state shall be made by delivering the summons to an assistant attorneygeneral at an office of the attorney-general or to the attorney-general within the state.

2. In the event any provision of law shall also require personal service upon a specified officer of a state agency to effect service on such agency, personal service shall then also be made by delivering the summons to such officer or to the chief executive officer of such agency or to a person designated by such chief executive officer to receive service. The chief executive officer of every such agency shall designate at least one person, in addition to himself, to accept service on EXPLANATION-Matter in italics is new; matter in brackets [] is old law

term state

behalf of the agency. For purposes of this subdivision the agency shall be deemed to refer to any agency, board, bureau, commission, division, tribunal or other entity which constitutes the state for purposes of service under subdivision one of this section.

$ 2. This act shall take effect on the first day of November next succeeding the date on which it shall have become a law.

CHAPTER 291

AN ACT to amend the education law, in relation to providing for boards of cooperative educational services to participate in the implementation of the state plan for integrating the arts into education

Became a law June 30, 1985, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision four of section nineteen hundred fifty of the education law is amended by adding a new paragraph CC to read as follows:

cc. Provide for activities and services pertaining to the arts at the request of one or more school districts. Such activities and services shall be eligible for aid and shall include, but not be limited to, programs with, and performances by, artists or organizations approved by the commissioner of education. Boards of cooperative educational services are authorized to enter into contracts with one or more school districts, or boards of cooperative educational services.

§ 2. This act shall take effect on the first day of July next succeeding the date on which it shall have become a law.

CHAPTER 292

AN ACT to amend the insurance law, in relation to including within the purposes of the medical malpractice insurance association the provision of malpractice insurance to dentists, podiatrists and certified nurse-midwives and extending the period during which such association shall provide such insurance until June thirtieth, nineteen hundred eighty-seven

Became a law June 30, 1985, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subsection (b) of section five thousand five hundred one of the insurance law is amended to read as follows:

to

(b) "Medical malpractice insurance" means insurance against legal liability of the insured, and against loss, damage, or expense incident a claim of such liability arising out of the death or injury of any person due to medical, dental, podiatric, certified nurse-midwifery or hospital malpractice by any licensed physician, dentist, podiatrist, certified nurse-midwife or hospital.

§ 2. Subsection (c) of section five thousand five hundred two of such law, as amended by chapter nine hundred fifty-five of the laws of nineteen hundred eighty-four, is amended to read as follows:

(c) The purpose of the association is to provide, for the period July first, nineteen hundred seventy-five through June thirtieth, nineteen hundred [eighty-six] eighty-seven, a market for medical malpractice insurance pursuant to this article and subject to regulation pursuant section two thousand three hundred seventeen of this chapter.

to

§ 3. Subsection (d) of section five thousand five hundred two of such law is amended to read as follows:

(d) The association shall not begin or resume after suspension its underwriting operations for physicians, dentists, podiatrists, certified nurse-midwives or for hospitals respectively, until the superintendent, after consultation with the commissioner of health, has determined that medical malpractice insurance is not readily available for physicians, dentists, podiatrists, certified nurse-midwives or for hospitals, as the case may be, in the voluntary market and has approved or promulgated the association's plan of operation. If the superintendent determines during such period that insurance is readily available for physicians, dentists, podiatrists, certified nurse-midwives or for hospitals, as the case may be, in the voluntary market, the association shall thereupon suspend its underwriting operations for the respective category.

4. Subsection (c) of section five thousand five hundred five of such law is amended to read as follows:

(c) The association's rates, rating plans, rating rules and rating classifications may provide for premium discounts for physicians, dentists, certified nurse-midwives or podiatrists commencing practice or conducting a limited practice as set forth in the plan of operation.

§ 5. Subsection (a) of section five thousand five hundred six of such law is amended to read as follows:

(a) Any licensed physician, dentist, podiatrist, certified nursemidwife or hospital is entitled to apply to the association for coverage pursuant to this article. Application may be made directly to the association by the applicant, in which event no service fee shall be charged. If the applicant authorizes a broker or agent to make the application, the only charge for such service shall be a service fee as limited by the plan of operation and in compliance with the procedure established in subsections (c) and (d) of section two thousand one hundred nineteen of this chapter.

§ 6. This act shall take effect immediately.

CHAPTER 293

AN ACT to amend chapter five hundred fifty-five of the laws of nineteen hundred eighty-two, amending the general business law and the administrative code of the city of New York relating to conversion of rental residential property to cooperative or condominium ownership in the city of New York; and chapter four hundred two of the laws of nineteen hundred eighty-three, amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westchester and Rockland, in relation to their period of effectiveness Became a law June 30, 1985, with the approval of the Governor. Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section ten of chapter five hundred fifty-five of the laws of nineteen hundred eighty-two, amending the general business law and the administrative code of the city of New York relating to conversion of rental residential property to cooperative or condominium ownership in the city of New York, is amended to read as follows:

§ 10. This act shall take effect immediately; provided, that the provisions of sections one, two and nine of this act shall remain in full force and effect only until [July first] and including June fifth, nineteen hundred [eighty-five] eighty-seven; provided further that the provisions of section three of this act shall remain in full force and effect only so long as the public emergency requiring the regulation and control of residential rents and evictions continues as provided in subdivision three of section one of the local emergency housing rent control act; provided further that the provisions of sections four, five, six and seven of this act shall expire in accordance with the provisions of section YY51-8.0 of the administrative code of the city of New York as such section of the administrative code is, from time to time, EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

amended; provided further that the provisions of section YY51-6.0 of the administrative code of the city of New York, as amended by this act, which the New York City Department of Housing Preservation and Development must find are contained in the code of the real estate industry stabilization association of such city in order to approve it, shall be deemed contained therein as of the effective date of this act; and provided further that any plan accepted for filing by the department of law on or before the effective date of this act shall continue to be governed by the provisions of section three hundred fifty-two-eeee of the general business law as they had existed immediately prior to the effective date of this act.

§ 2. Section four of chapter four hundred two of the laws of nineteen hundred eighty-three, amending the general business law relating to conversion of rental residential property to cooperative or condominium ownership in certain municipalities in the counties of Nassau, Westchester and Rockland, is amended to read as follows:

§ 4. This act shall take effect immediately; provided, that the provisions of sections one and three of this act shall remain in full force and effect only until [July first] and including June fifth, nineteen hundred [eighty-five] eighty-seven; and provided further that any plan accepted for filing by the department of law on or before the effective date of this act shall continue to be governed by the provisions of section three hundred fifty-two-eee of the general business law as they had existed immediately prior to the effective date of this act.

§ 3. Regardless of the date on which it shall have become a law, any provision of a chapter of the laws of nineteen hundred eighty-five which amends section three hundred fifty-two-eee or three hundred fifty-twoeeee of the general business law shall be subject to the provisions of sections two and three of this act and shall remain in effect in accordance therewith, unless such chapter specifically excludes itself from the provisions of this act.

§ 4. This act shall take effect immediately.

CHAPTER 294

AN ACT to amend the public health law, the civil practice law and rules, the education law, the insurance law, and the judiciary law, in relation to medical and dental malpractice, making an appropriation therefor and providing for the repeal of certain provisions added by this act upon their expiration

Became a law July 2, 1985, with the approval of the Governor. Passed on message of necessity pursuant to Article III, section 14 of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Legislative findings and declaration. The legislature hereby finds and declares that a comprehensive reform of the medical and dental malpractice adjudication system is necessary in order to ensure the continued availability and affordability of quality health services in New York state. Escalating malpractice insurance premiums discourage physicians and dentists from initiating or continuing their practice in New York and contribute to the rising cost of health care as premium costs are passed along to the health care consumer. The legislature finds, therefore, that steps must be taken to reduce the cost of malpractice insurance and to restrain associated health care costs, while assuring the availability of compensation for persons injured as a result of malpractice. By expediting case resolution, discouraging frivolous claims and defenses, moderating attorney contingency fees, limiting the opportunity for double recoveries, and requiring the periodic payment of large future awards, the legislature intends to reduce the escalating cost of malpractice insurance and to improve the adjudication of malpractice claims. The legislature further finds that hospitals must enhance their efforts to reduce medical and dental malpractice through the establishment of medical and dental malpractice prevention programs and through greater scrutiny of physicians and dentists prior to granting hospital privileges and that increased resources should be devoted

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