S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5998--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 21, 2017
                                ___________
 
 Introduced  by  M.  of  A.  KIM,  GOTTFRIED, DINOWITZ, BICHOTTE, WEPRIN,
   MONTESANO, MOSLEY, ORTIZ, CYMBROWITZ, HARRIS,  NIOU,  TITONE,  CRESPO,
   D'URSO,  RIVERA, LAWRENCE, SEPULVEDA, RICHARDSON -- Multi-Sponsored by
   -- M. of A.   DE LA ROSA, HIKIND, HYNDMAN,  NOLAN  --  read  once  and
   referred  to  the  Committee  on  Cities -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to enacting the towing protection enforcement act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "towing protection enforcement act".
   § 2. Subdivision j of section 19-169.1 of the administrative  code  of
 the  city  of New York, as amended by local law number 41 of the city of
 New York for the year 2011, is amended to read as follows:
   j. (1) Any person who violates  this  section  shall  be  punished  as
 follows:    for the first violation, a fine of five hundred dollars; for
 the second violation within a period of twelve months of the date of the
 first violation, a fine of one thousand dollars; and for any  additional
 violations  within a period of twenty-four months of the date of a first
 violation, a fine of [one] TWO thousand dollars.
   (2) IN ADDITION TO THE PENALTIES PRESCRIBED BY PARAGRAPH ONE  OF  THIS
 SUBDIVISION,   ANY  PERSON  WHO  KNOWINGLY  OR  WILLFULLY  VIOLATES  THE
 PROVISIONS OF THIS SECTION OR SUBDIVISION B OF SECTION  20-515  OF  THIS
 CODE  OR ANY RULES PROMULGATED THEREUNDER SHALL BE GUILTY OF A MISDEMEA-
 NOR PUNISHABLE BY A FINE OF NOT LESS THAN FIVE HUNDRED DOLLARS  OR  MORE
 THAN THREE THOUSAND DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN NINETY
 DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT.
   (3)  ANY  PERSON WHO KNOWINGLY OR WILLFULLY VIOLATES THE PROVISIONS OF
 THIS SECTION OR SUBDIVISION B OF SECTION 20-515  OF  THIS  CODE  OR  ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05247-03-7

 A. 5998--A                          2
 
 RULES PROMULGATED THEREUNDER WHO HAS BEEN FOUND GUILTY OF A VIOLATION OF
 ANY  SUCH  PROVISIONS OR SUCH RULES TWO TIMES WITHIN A TWENTY-FOUR MONTH
 PERIOD SHALL BE GUILTY OF A MISDEMEANOR PUNISHABLE BY A FINE OF NOT LESS
 THAN  ONE  THOUSAND  DOLLARS  OR  MORE  THAN TEN THOUSAND DOLLARS, OR BY
 IMPRISONMENT FOR NOT MORE THAN SIX MONTHS, OR  BY  BOTH  SUCH  FINE  AND
 IMPRISONMENT.
   § 3. Subdivisions a and b of section 20-499 of the administrative code
 of  the  city of New York, subdivision a as amended and subdivision b as
 added by local law number 11 of the city of New York for the year  1989,
 are amended to read as follows:
   a.  As  a  condition of the issuance of a license to engage in towing,
 each applicant shall furnish to the commissioner a surety  bond  in  the
 sum  of  [five] TWENTY-FIVE thousand dollars, payable to the city of New
 York, executed by the applicant and a surety approved by the commission-
 er. Such bond shall be conditioned upon the applicant's compliance  with
 the  provisions  of this subchapter and any rules or regulations promul-
 gated hereunder, and upon the further condition that the applicant  will
 pay to the city any fine, penalty or other obligation within thirty days
 of  its  imposition,  or  any final judgment recovered by any person who
 received towing services from a  licensee  thereunder  and  was  damaged
 thereby.  The  commissioner may in his or her discretion, after a public
 hearing, five days notice of  which  shall  be  published  in  the  City
 Record,  increase the amount of the surety bond required by this section
 to an amount not to exceed  [twenty-five]  TWO  HUNDRED  FIFTY  thousand
 dollars.  The  commissioner may by regulation authorize an applicant to,
 in lieu of a bond, deposit cash to  satisfy  the  requirements  of  this
 section  in  an  amount  equal to the sum of the surety bond required by
 this section.
   b. (1) The commissioner may by  regulation  establish  a  fund  to  be
 administered by the comptroller and authorize an applicant for a license
 to  engage  in  towing  to,  in  lieu of a bond or cash equivalent, make
 contributions to such fund to satisfy the requirements of subdivision  a
 of  this  section.  The  commissioner may promulgate such rules or regu-
 lations as are necessary for the administration of such fund  including,
 but not limited to, regulations setting forth the conditions for partic-
 ipation  in the fund, the contributions required to be made to the fund,
 INCLUDING THE CRITERIA AND METHODOLOGY FOR DETERMINING  THE  APPROPRIATE
 AMOUNT OF THE CONTRIBUTIONS, and the circumstances under which disburse-
 ments will be made from the fund.
   (2)  NOTWITHSTANDING  ANY  PROVISIONS OF TITLES NINETEEN AND TWENTY OF
 THIS CODE TO THE CONTRARY, ANY LICENSEE WHO PRIOR TO THE EFFECTIVE  DATE
 OF  THIS PARAGRAPH WAS AUTHORIZED BY THE COMMISSIONER TO MAKE A CONTRIB-
 UTION TO THE FUND ESTABLISHED PURSUANT TO PARAGRAPH ONE OF THIS SUBDIVI-
 SION AND WHO HAS BEEN FOUND GUILTY OF A VIOLATION OF  SECTIONS  19-169.1
 AND  20-515 OF THIS CODE TWO TIMES WITHIN A TWELVE MONTH PERIOD SHALL BE
 REQUIRED TO FURNISH A SURETY BOND IN AN AMOUNT DETERMINED BY THE COMMIS-
 SIONER.
   § 4. Subdivisions e and f of section 20-504 of the administrative code
 of the city of New York, subdivision e as amended by local law number 66
 of the city of New York for the year 1989 and subdivision f as added  by
 local  law  number  28  of  the  city of New York for the year 1987, are
 amended and a new subdivision g is added to read as follows:
   e. the person holding a tow truck operator's license,  or  the  person
 holding  a  license  to  engage in towing or where applicable any of its
 officers, principals, directors or stockholders  owning  more  than  ten
 percent  of  the outstanding stock of the corporation has been convicted

 A. 5998--A                          3
 
 of a crime which, in the judgment of  the  commissioner,  has  a  direct
 relationship  to  such person's fitness or ability to perform any of the
 activities for which a license is required under this subchapter; or has
 been  convicted  of  any  other  crime which, in accordance with article
 twenty-three-a of the correction law, would provide a justification  for
 the  commissioner  to  refuse  to  renew,  or to suspend or revoke, such
 license; [or]
   f. the person holding a tow truck operator's license,  or  the  person
 holding  a license to engage in towing has failed to maintain any of the
 conditions for issuance of such license as provided under this  subchap-
 ter or any rule or regulation promulgated hereunder[.]; OR
   G.  THE  PERSON  HOLDING A TOW TRUCK OPERATOR'S LICENSE, OR THE PERSON
 HOLDING A LICENSE TO ENGAGE IN TOWING IS THE SUBJECT OF  AT  LEAST  FIVE
 SEPARATE  COMPLAINTS WITHIN A ONE YEAR PERIOD TO THE COMMISSIONER OR THE
 POLICE DEPARTMENT FOR FAILURE TO COMPLY WITH THE PROVISIONS  OF  SECTION
 19-169.1 OR SUBDIVISION B OF SECTION 20-515 OF THIS CODE.
   §  5.  Section  20-504.1 of the administrative code of the city of New
 York, as amended by local law number 41 of the city of New York for  the
 year 2011, is amended to read as follows:
   §  20-504.1  Mandatory  suspension or revocation of license.  A. After
 due notice and opportunity to be heard, the commissioner shall refuse to
 renew, or shall suspend or revoke a license required under this subchap-
 ter, upon the occurrence of any one or more of the following conditions:
   [a.] 1. the person holding a license to  engage  in  towing  or  where
 applicable,  any  of  such  licensee's  officers, principals, directors,
 employees, or stockholders owning more than ten percent of the outstand-
 ing stock of the corporation, has been found by the commissioner to have
 unjustifiably refused to release a vehicle  towed  pursuant  to  section
 20-518  or  section 20-519 of this subchapter, to the vehicle's owner or
 the owner's agent. The commissioner shall establish standards concerning
 the sufficiency of proof of ownership of the vehicle and the legality of
 any charges demanded by the licensee for  release  of  the  vehicle.  In
 determining  whether  such refusal is unjustifiable, the commissioner in
 addition to any other relevant fact shall consider such standards;
   [b.] 2. in a two year period, the person holding a license  to  engage
 in  towing or where applicable, any of such licensee's officers, princi-
 pals, directors, employees, or stockholders owning more than ten percent
 of the outstanding stock of the  corporation,  has  been  found  by  the
 commissioner  to  have  committed  in  any  combination  three  or  more
 violations of sections 19-169, [19-169.1  of  this  code  or  any  rules
 promulgated  thereunder,  or sections] 20-507, 20-509, 20-509.1, 20-510,
 20-512, 20-514, 20-515, 20-516,  20-518,  20-519,  20-520,  20-520.1  or
 20-527 of this [subchapter] CODE or any rules promulgated thereunder;
   [c.]  3.  the  person  holding  a license to engage in towing or where
 applicable, any of  such  licensee's  officers,  principals,  directors,
 employees, or stockholders owning more than ten percent of the outstand-
 ing  stock  of the corporation, has been convicted of a misdemeanor or a
 felony relating to auto stripping in  violation  of  article  [165]  ONE
 HUNDRED SIXTY-FIVE of the penal law;
   [d.]  4.  in  a two year period, the person holding a tow truck opera-
 tor's license has been found by the commissioner to  have  committed  in
 any  combination  three or more violations of the provisions of sections
 19-169 [and 19.169.1 of this code and any rules promulgated  thereunder,
 or  sections],  20-510,  20-512, 20-514, 20-515, 20-518, 20-519, 20-520,
 20-520.1 or 20-527 of this [subchapter] CODE or  any  rules  promulgated
 thereunder;

 A. 5998--A                          4
 
   [e.]  5.  the  person  holding a tow truck operator's license has been
 found to have operated any motor vehicle in violation of section  eleven
 hundred  ninety-two  of  the  vehicle and traffic law during the license
 term, or has been found to have operated a tow  truck  in  violation  of
 section eleven hundred eighty-two of the vehicle and traffic law.
   B. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH TWO OF SUBDIVISION A OF
 THIS  SECTION,  THE COMMISSIONER, AFTER DUE NOTICE AND OPPORTUNITY TO BE
 HEARD, SHALL REFUSE TO RENEW, OR  SHALL  SUSPEND  OR  REVOKE  A  LICENSE
 REQUIRED  UNDER THIS SUBCHAPTER UPON A FINDING THAT, IN A ONE YEAR PERI-
 OD, THE PERSON HOLDING A LICENSE TO ENGAGE IN TOWING OR  WHERE  APPLICA-
 BLE,  ANY OF SUCH LICENSEE'S OFFICERS, PRINCIPALS, DIRECTORS, EMPLOYEES,
 OR STOCKHOLDERS OWNING MORE THAN TEN PERCENT OF THE OUTSTANDING STOCK OF
 THE CORPORATION, COMMITTED ANY COMBINATION OF TWO OR MORE VIOLATIONS  OF
 SECTION 19-169.1 OR SUBDIVISION B OF SECTION 20-515 OF THIS CODE.
   §  6.  The  opening  paragraph of section 20-510 of the administrative
 code of the city of New York is  designated  subdivision  a  and  a  new
 subdivision b is added to read as follows:
   B.  A  TOW TRUCK OPERATOR IS FORBIDDEN FROM USING SPOTTERS OR SPOTTING
 TECHNIQUES, SUCH AS WAITING AND TARGETING DRIVERS AT  PARKING  LOTS,  TO
 TOW VEHICLES ON PRIVATE OR COMMERCIAL PROPERTY AND MUST OBTAIN THE WRIT-
 TEN CONSENT OF THE OWNER OR MANAGER OF THE PRIVATE OR COMMERCIAL PROPER-
 TY TO CONDUCT TOWING PURSUANT TO SECTION 19-169.1 OF THIS CODE.
   § 7. Subdivision b of section 20-515 of the administrative code of the
 city  of  New York, as amended by local law number 94 of the city of New
 York for the year 1997, is amended to read as follows:
   b. soliciting or offering any inducements or  making  representations:
 (I)  at  the scene of a vehicular accident for the towing of any vehicle
 involved in an accident, (II) AT OR NEAR THE SCENE OF THE REMOVAL  OF  A
 VEHICLE  PURSUANT  TO  SECTION  19-169.1  OF THIS CODE, or (III) for the
 performance of any repairs on any vehicle involved in an accident except
 as may be reasonable and necessary at the scene of an accident  for  the
 towing  of  an accident vehicle on a segment of the arterial highways by
 an arterial tow permittee who has been authorized by the commissioner of
 transportation or the police commissioner to provide tow service on such
 segment.
   § 8. Within one hundred eighty days after the effective date  of  this
 act,  the  tow advisory board, established pursuant to section 20-526 of
 the administrative code of the city of New York, shall conduct at  least
 one  public  hearing  in each borough of the city of New York to solicit
 and receive public comments on towing issues.  Upon  completion  of  the
 hearings,  the  tow advisory board, in consultation with the interagency
 advisory council, shall make recommendations  to  address  this  growing
 problem including how to improve enforcement of section 19-169.1 of such
 administrative  code and the laws or rules prohibiting the soliciting or
 making representations at or near the scene of the towing or removal  of
 a vehicle by a tow truck operator.
   § 9. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid and after exhaustion of  all  further  judicial  review,  the
 judgment  shall  not affect, impair or invalidate the remainder thereof,
 but shall be confined in its operation to the  clause,  sentence,  para-
 graph,  section or part of this act directly involved in the controversy
 in which the judgment shall have been rendered.
   § 10. This act shall take effect immediately.