N.Y. Comp. Codes R. & Regs. tit. 19, § 1210.18
(g) If the Department of State elects not to attempt to resolve the complaint on an informal basis, or if any attempts to resolve the complaint on an informal basis are unsuccessful, in whole or in part, the Department of State shall resolve the complaint by administrative hearing conducted by the Department of State's Office of Administrative Hearings pursuant to the State Administrative Procedure Act and Part 400 of this Title. The decision resolving the complaint following an administrative hearing shall be made by the administrative law judge who conducted the hearing, shall be in writing, and shall provide the reasons for the decision. If the complaining party prevails, in whole or in part, the decision of the administrative law judge shall:
(1) direct compensation to the complaining party in such amount as the administrative law judge shall determine to be appropriate, which amount shall include, but shall not necessarily be limited to:
(2) apportion liability between two or more parties, where appropriate. If appropriate, a portion of liability may be attributed to the complaining party, in which case the compensation awarded to the complaining party shall be adjusted accordingly.
The amount of compensation awarded to a complaining party shall not be limited by the amount(s) in the deposit account(s) evidenced by the acceptable deposit account control agreement(s), the amount(s) of the acceptable letter(s) of credit, or the amount(s) of the acceptable surety bond(s) provided by the responding party or parties determined to be liable. A copy of the decision of the administrative law judge shall be provided to each complaining party and each responding party. The decision of the administrative law judge shall be final and binding when issued unless an appeal is taken pursuant to subdivision (h) of this section.
(h) Any party may appeal the decision of the administrative law judge to the Secretary of State within 30 calendar days of such party's receipt of a copy of the decision. Such an appeal shall be made by filing with the Secretary of State, and serving on the other party or parties, a written memorandum of appeal stating the appellant's arguments and setting forth specifically the questions of procedure, fact, law or policy to which exceptions are taken, identifying the part or parts of the administrative law judge's decision and order to which objection is made, specifically designating the portions of the record relied upon, and stating the grounds for exceptions. A party upon whom an adverse party has served a memorandum of appeal may, within 30 calendar days after such service, file and serve a memorandum in opposition to appeal, a memorandum of cross- appeal, or both. A party upon whom an adverse party has served a memorandum of cross-appeal may, within 15 calendar days of such service, file and serve a memorandum in opposition to cross-appeal. The failure of any party to serve a memorandum in opposition to appeal or memorandum in opposition to cross-appeal shall not be deemed a waiver or admission. The record on appeal shall consist of the complaint, the response or responses to the complaint, evidentiary exhibits from the hearing, the transcript of the hearing, the memorandum of appeal, the memorandum or memoranda in opposition to appeal, any memorandum or memoranda of cross-appeal, and any memorandum or memoranda in opposition to cross-appeal. The Secretary of State or his or her designee may, in his or her discretion, stay the effective date of the decision of the administrative law judge pending the appeal. The Secretary of State or his or her designee may, in his or her discretion, direct that there shall be oral argument on the appeal. Unless so directed, there shall be no oral argument. The Secretary of State or his or her designee shall, based solely on the record on appeal (and oral argument, if any) make a written decision and order which shall:
(3) remand the matter to the administrative judge for additional proceedings.
Any decision and order superseding the decision of the administrative law judge shall include a statement as to why the Secretary of State, or his or her designee, has not confirmed the decision of the administrative law judge. A decision and order of the Secretary of State, or his or her designee, which confirms the decision of the administrative law judge or supersedes the decision of the administrative law judge shall be final and binding unless a party makes a timely application for judicial review pursuant to article 78 of the Civil Practice Law and Rules.
(k) Each person or business entity who applies for, receives, or retains any certification under article 21-B, and each person or business entity who applies for, receives, or retains a renewal of any such certification, shall be deemed to agree:
(n) Nothing in this section shall preclude any party from requesting the Department of State to attempt to resolve a dispute on an informal basis prior to the filing of a complaint under this section, and nothing in this section shall preclude the Department of State from attempting to resolve a dispute on an informal basis prior to the filing of a complaint under this section; provided, however, that:
(2) the period of time, as set forth in subdivision (b) of this section, within which a complaint must be filed shall not be extended by reason of any party making any such request or by reason of the Department of State making any such attempt.
During the course of any such informal pre-complaint dispute resolution process, one or more employees of the Department of State may participate in telephone calls to or from, or meetings with, any party or parties, with or without the participation by or presence of the other party or parties, and the Department of State may conduct such other investigation into the merits of the dispute as the Department of State may deem appropriate; however, no administrative law judge who may subsequently hear the matter shall participate in any such telephone call or meeting or any such investigation.