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.