Assembly Bill A4473

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4473
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced  by  M.  of  A.  COOK, STECK -- read once and referred to the
   Committee on Economic Development
 
 AN ACT to amend the general business law and the civil practice law  and
   rules, in relation to process servers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 89-t of the general business law, as added by chap-
 ter 397 of the laws of 1973 and as redesignated by chapter  336  of  the
 laws of 1992, is amended to read as follows:
   §  89-t.  Definitions.  1.  For  this article, a "process server" is a
 person other than an attorney or a party to an action acting on his  own
 behalf who:  (a) derives income from the service of papers in an action;
 or  (b)  has  effected  service  of  process  in five or more actions or
 proceedings in the twelve month period immediately preceding the service
 in question. A person who serves interlocutory papers upon  an  attorney
 or who serves papers on behalf of a federal, state or local governmental
 agency  in  the  course  of  his  employment by such agency shall not be
 deemed a process server within the meaning of this article by virtue  of
 such  service.   FOR THE PURPOSES OF THIS CHAPTER THE SERVICE OF FIVE OR
 MORE PROCESS IN ANY ONE YEAR SHALL BE DEEMED TO CONSTITUTE  DOING  BUSI-
 NESS AS A PROCESS SERVER.
   2. "DEPARTMENT" SHALL MEAN DEPARTMENT OF STATE.
   3. "SECRETARY" SHALL MEAN SECRETARY OF STATE.
   §  2. Article 8 of the general business law is amended by adding a new
 section 89-x to read as follows:
   § 89-X. PROCESS SERVER, LICENSING, PENALTIES.  1.  ISSUANCE,  RENEWAL,
 SUSPENSION  AND  REVOCATION OF A LICENSE. ON OR AFTER OCTOBER FIRST, TWO
 THOUSAND TWENTY-TWO, NO PERSON SHALL ACT AS  A  PROCESS  SERVER  WITHOUT
 FIRST  HAVING  OBTAINED  A  LICENSE IN ACCORDANCE WITH THE PROVISIONS OF
 THIS ARTICLE, AND WITHOUT FIRST  BEING  IN  COMPLIANCE  WITH  ALL  OTHER
 APPLICABLE LAWS, RULES AND REGULATIONS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07802-01-1

 A. 4473                             2
 
   2. (A) ALL LICENSES ISSUED PURSUANT TO THIS ARTICLE SHALL BE VALID FOR
 TWO YEARS UNLESS SOONER SUSPENDED OR REVOKED. THE SECRETARY SHALL ESTAB-
 LISH BY REGULATION THE EXPIRATION DATE OF SUCH LICENSES.
   (B)  THE  FEE  FOR  A LICENSE OR RENEWAL THEREOF SHALL BE FIVE HUNDRED
 DOLLARS.
   3. (A) EACH PERSON APPLYING FOR A PROCESS SERVER  LICENSE  OR  RENEWAL
 THEREOF  SHALL FILE AN APPLICATION IN SUCH FORM AND DETAIL AS THE SECRE-
 TARY MAY PRESCRIBE AND SHALL PAY THE FEE REQUIRED BY THIS SECTION.
   (B) IN ADDITION TO ANY OTHER INFORMATION REQUIRED, THE SECRETARY SHALL
 REQUIRE THE FOLLOWING INFORMATION, AND SHALL,  AS  APPROPRIATE,  REQUIRE
 SUCH  INFORMATION NOT ONLY OF THE APPLICANT BUT ALSO OF ANY OF ITS PRIN-
 CIPALS, PARTNERS, OFFICERS  AND  DIRECTORS,  OR  ANY  PERSON  OR  ENTITY
 CONTROLLING AN INTEREST GREATER THAN TEN PERCENT:
   (I) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
   (II) THE BUSINESS NAME, IF OTHER THAN APPLICANT;
   (III)  THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
 AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
   (IV) THE BUSINESS TELEPHONE OF THE APPLICANT;
   (V) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN A PROCESS SERVER;
   (VI) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   (A) BEEN CONVICTED OF ANY CRIME OR IS A DEBTOR  ON  ANY  UNPAID  CIVIL
 JUDGMENT RELATING TO WORK AS A PROCESS SERVER; AND
   (B)  AT  ANY  TIME  IN THE PAST BEEN ISSUED A LICENSE PURSUANT TO THIS
 ARTICLE, OR HAS BEEN ISSUED A LICENSE FOR PROCESS SERVING ACTIVITIES  BY
 ANY  OTHER STATE OR LOCAL AUTHORITY, AND IF SO, WHETHER SUCH LICENSE WAS
 EVER REVOKED OR SUSPENDED;
   (VII) A DETAILED DESCRIPTION OF  THE  BUSINESS  PRACTICES  OR  METHODS
 USED,  OR  INTENDED  TO  BE  USED,  BY THE APPLICANT TO CONFIRM THAT THE
 ACTIONS OF ITS EMPLOYEES ARE IN  COMPLIANCE  WITH  APPLICABLE  LAWS,  IN
 PARTICULAR  WITH  REGARD TO EMPLOYEES CARRYING OUT THE NEW YORK REQUIRE-
 MENTS OF SERVICE OF PROCESS AS SET FORTH IN THE CIVIL PRACTICE  LAW  AND
 RULES;
   (VIII)  AN  APPLICANT WHO IS A NON-RESIDENT OF THE STATE SHALL PROVIDE
 THE NAME AND ADDRESS OF A REGISTERED AGENT WITHIN THE STATE OR DESIGNATE
 THE SECRETARY AS HIS OR HER AGENT UPON WHOM PROCESS OR  OTHER  NOTIFICA-
 TION MAY BE SERVED.
   4.  IN  DETERMINING WHETHER TO ISSUE OR RENEW A LICENSE, THE SECRETARY
 SHALL CONSIDER THE CHARACTER, COMPETENCY AND INTEGRITY OF THE APPLICANT.
 THE SECRETARY MAY REFUSE TO ISSUE OR RENEW A LICENSE TO ANY PERSON, FIRM
 OR CORPORATION WHOM HE OR SHE FINDS HAS: BEEN  CONVICTED  OF  ANY  CRIME
 DEFINED  IN  ARTICLE  ONE HUNDRED FIFTY-FIVE OF THE PENAL LAW OR ARTICLE
 TWENTY-TWO-A OF THIS CHAPTER OR FAILED TO PAY ANY FINAL  CIVIL  JUDGMENT
 RELATING  TO  WORK AS A PROCESS SERVER, IF SUCH REFUSAL, IN THE JUDGMENT
 OF THE SECRETARY, BEST PROMOTES THE INTERESTS  OF  THE  PEOPLE  OF  THIS
 STATE.
   5.  NOTICE IN WRITING IN THE MANNER AND FORM PRESCRIBED BY THE DEPART-
 MENT SHALL BE GIVEN TO THE DEPARTMENT AT ITS OFFICES  IN  ALBANY  WITHIN
 TEN  DAYS  OF CHANGES OF NAME OR ADDRESS BY LICENSED PROCESS SERVER. THE
 FEE FOR FILING EACH CHANGE OF  NAME  OR  ADDRESS  NOTICE  SHALL  BE  TEN
 DOLLARS.
   6. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
   7.  EACH  PROCESS  SERVER ENGAGED IN SERVING PROCESS SHALL COMMUNICATE
 HIS OR HER LICENSE NUMBER UPON THE REQUEST OF ANY INTERESTED PARTY.  ANY
 ADVERTISEMENT, LETTERHEAD, RECEIPT OR OTHER PRINTED MATTER OF A LICENSEE
 MUST  CONTAIN THE LICENSE NUMBER ASSIGNED TO THE LICENSEE BY THE DEPART-
 MENT. SUCH LICENSE NUMBER SHALL BE CLEARLY AND CONSPICUOUSLY DISPLAYED.

 A. 4473                             3
 
   8. NO PERSON, FIRM OR CORPORATION SHALL: (A) PRESENT,  OR  ATTEMPT  TO
 PRESENT, AS HIS, HER OR ITS OWN, THE LICENSE NUMBER OF ANOTHER;
   (B)  KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE DEPART-
 MENT FOR THE PURPOSE OF PROCURING A LICENSE;
   (C) FALSELY REPRESENT THEMSELVES TO BE A LICENSED PROCESS SERVER;
   (D) USE OR ATTEMPT TO USE A LICENSE WHICH HAS EXPIRED;
   (E) OFFER TO PERFORM OR PERFORM ANY SERVICE OF PROCESS WITHOUT  HAVING
 A CURRENT LICENSE AS IS REQUIRED UNDER THIS ARTICLE; OR
   (F)  REPRESENT  IN ANY MANNER THAT HIS, HER OR ITS LICENSE CONSTITUTES
 AN ENDORSEMENT OF THE QUALITY OF WORKMANSHIP OR COMPETENCY OF THE  PROC-
 ESS SERVER.
   9.  LICENSES  ISSUED  TO  PROCESS SERVERS SHALL NOT BE TRANSFERABLE OR
 ASSIGNABLE.
   10. THE SECRETARY SHALL ISSUE EACH PROCESS  SERVER  A  UNIQUE  LICENSE
 NUMBER.
   11.  THE  SECRETARY  SHALL  MAINTAIN  AND  PUBLISH  A  REGISTRY OF ALL
 LICENSED PROCESS SERVERS WHICH SHALL  LIST  AND  IDENTIFY  ALL  LICENSED
 PROCESS  SERVERS  DOING BUSINESS IN THIS STATE. THE SECRETARY SHALL MAKE
 THE REGISTRY AVAILABLE ON ITS WEBSITE. (A)  THE  SECRETARY  SHALL  ADOPT
 SUCH  RULES AND REGULATIONS AS HE OR SHE MAY DETERMINE ARE NECESSARY FOR
 THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE,  AND  SHALL  PROVIDE
 WRITTEN  NOTIFICATION  OF  THE PROVISIONS OF THIS ARTICLE TO ALL PROCESS
 SERVERS LICENSED PURSUANT TO THIS ARTICLE;
   (B) IN ADDITION TO ANY OTHER POWERS OF THE SECRETARY, NOT  IN  LIMITA-
 TION  THEREOF,  HE OR SHE SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS
 OF THIS ARTICLE, TO INVESTIGATE ANY VIOLATION  THEREOF,  TO  INVESTIGATE
 THE  BUSINESS,  BUSINESS  PRACTICES  AND BUSINESS METHODS OF ANY PROCESS
 SERVER, AND TO CONDUCT ROUTINE EXAMINATIONS OF THE FINANCIAL SOLVENCY OF
 ANY PROCESS SERVER, IF IN THE OPINION OF THE  SECRETARY,  SUCH  INVESTI-
 GATION  OR  EXAMINATION  IS  WARRANTED.  EACH  PROCESS  SERVER  SHALL BE
 OBLIGED, ON REQUEST OF THE SECRETARY OF STATE, TO SUPPLY  SUCH  INFORMA-
 TION, BOOKS, PAPERS OR RECORDS AS MAY BE REQUIRED CONCERNING HIS, HER OR
 ITS  BUSINESS, BUSINESS PRACTICES OR BUSINESS METHODS, OR PROPOSED BUSI-
 NESS PRACTICES OR METHODS. FAILURE TO COMPLY WITH A  LAWFUL  REQUEST  OF
 THE  SECRETARY  SHALL  BE  A  GROUND  FOR  DENYING  AN APPLICATION FOR A
 LICENSE, OR FOR REVOKING, SUSPENDING, OR  FAILING  TO  RENEW  A  LICENSE
 ISSUED UNDER THIS ARTICLE;
   (C)  THE  DEPARTMENT  SHALL  HAVE  THE  POWER TO REVOKE OR SUSPEND ANY
 LICENSE, OR IN LIEU THEREOF TO IMPOSE A FINE NOT LESS THAN  ONE  HUNDRED
 DOLLARS  NOR  MORE  THAN TWO THOUSAND DOLLARS PER VIOLATION OR INSTANCE,
 PAYABLE TO THE DEPARTMENT, OR REPRIMAND ANY LICENSEE OR DENY AN APPLICA-
 TION FOR A LICENSE OR RENEWAL THEREOF UPON PROOF:
   (I) THAT THE APPLICANT OR LICENSEE HAS VIOLATED ANY OF THE  PROVISIONS
 OF  THIS  ARTICLE  OR  THE RULES AND REGULATIONS PROMULGATED PURSUANT TO
 THIS ARTICLE;
   (II) THAT THE APPLICANT OR LICENSEE HAS  PRACTICED  FRAUD,  DECEIT  OR
 MISREPRESENTATION;
   (III)  THAT THE APPLICANT OR LICENSEE HAS MADE A MATERIAL MISSTATEMENT
 IN THE APPLICATION FOR OR RENEWAL OF HIS OR HER LICENSE; OR
   (IV) THAT THE APPLICANT OR LICENSEE HAS DEMONSTRATED  INCOMPETENCE  OR
 UNTRUSTWORTHINESS IN HIS OR HER ACTIONS.
   12.  THE  DEPARTMENT SHALL BEFORE DENYING AN APPLICATION FOR A LICENSE
 OR BEFORE REVOKING OR SUSPENDING ANY LICENSE, OR IMPOSING  ANY  FINE  OR
 REPRIMAND, AND AT LEAST FIFTEEN DAYS PRIOR TO THE DATE SET FOR THE HEAR-
 ING, AND UPON DUE NOTICE TO THE COMPLAINANT OR OBJECTOR, NOTIFY IN WRIT-
 ING THE APPLICANT, OR THE HOLDER OF SUCH LICENSE, OF ANY CHARGE MADE AND

 A. 4473                             4
 
 SHALL  AFFORD  SUCH  APPLICANT OR LICENSEE AN OPPORTUNITY TO BE HEARD IN
 PERSON OR BY COUNSEL IN REFERENCE THERETO. SUCH WRITTEN  NOTICE  MAY  BE
 SERVED  PERSONALLY TO THE APPLICANT OR LICENSEE, OR BY CERTIFIED MAIL TO
 THE LAST KNOWN BUSINESS ADDRESS OF SUCH APPLICANT OR LICENSEE.
   13. THE HEARING ON SUCH CHARGES SHALL BE AT SUCH TIME AND PLACE AS THE
 DEPARTMENT  SHALL  PRESCRIBE  AND  SHALL BE CONDUCTED BY SUCH OFFICER OR
 PERSON IN THE DEPARTMENT AS THE SECRETARY MAY DESIGNATE, WHO SHALL  HAVE
 THE  POWER TO SUBPOENA AND BRING BEFORE THE OFFICER, OR PERSON SO DESIG-
 NATED, ANY PERSON IN THIS STATE AND  ADMINISTER  AN  OATH  TO  AND  TAKE
 TESTIMONY  OF  ANY  PERSON OR CAUSE HIS OR HER DEPOSITION TO BE TAKEN. A
 SUBPOENA ISSUED UNDER THIS SECTION SHALL BE REGULATED BY THE CIVIL PRAC-
 TICE LAW AND RULES. SUCH OFFICER OR PERSON IN  THE DEPARTMENT DESIGNATED
 TO TAKE SUCH TESTIMONY SHALL NOT BE BOUND BY  COMMON  LAW  OR  STATUTORY
 RULES OF EVIDENCE OR BY TECHNICAL OR FORMAL RULES OF PROCEDURE.
   14.  IN  THE EVENT THAT THE DEPARTMENT SHALL DENY THE APPLICATION FOR,
 OR REVOKE OR SUSPEND ANY SUCH LICENSE, OR IMPOSE ANY FINE OR  REPRIMAND,
 ITS  DETERMINATION  SHALL  BE  IN  WRITING  AND  OFFICIALLY  SIGNED. THE
 ORIGINAL OF SUCH DETERMINATIONS, WHEN SO SIGNED, SHALL BE FILED  IN  THE
 OFFICE  OF  THE  DEPARTMENT  AND  COPIES  THEREOF SHALL BE MAILED TO THE
 APPLICANT OR LICENSEE AND TO THE COMPLAINANT WITHIN TWO DAYS AFTER  SUCH
 FILING.
   15.  THE  DEPARTMENT,  ACTING  BY  THE  OFFICE OR PERSON DESIGNATED TO
 CONDUCT THE HEARING PURSUANT TO SUBDIVISION THIRTEEN OF THIS SECTION  OR
 BY  SUCH  OTHER  OFFICER OR PERSON IN THE DEPARTMENT AS THE SECRETARY OF
 STATE MAY DESIGNATE, SHALL HAVE THE POWER TO SUSPEND THE LICENSE OF  ANY
 LICENSEE  WHO  HAS  BEEN  CONVICTED  IN THIS STATE OR ANY OTHER STATE OR
 TERRITORY OF A FELONY OR OF ANY MISDEMEANOR FOR A PERIOD  NOT  EXCEEDING
 THIRTY  DAYS  PENDING  A  HEARING  AND  A  DETERMINATION OF CHARGES MADE
 AGAINST HIM OR HER. IF SUCH HEARING IS ADJOURNED AT THE REQUEST  OF  THE
 LICENSEE, OR BY REASON OF ANY ACT OR OMISSION BY HIM OR HER OR ON HIS OR
 HER  BEHALF,  SUCH SUSPENSION MAY BE CONTINUED FOR THE ADDITIONAL PERIOD
 OF SUCH ADJOURNMENT.
   16. THE ACTION OF THE DEPARTMENT IN GRANTING OR REFUSING TO  GRANT  OR
 TO  RENEW  A  LICENSE UNDER THIS ARTICLE OR IN REVOKING OR SUSPENDING OR
 REFUSING TO REVOKE OR SUSPEND SUCH A LICENSE OR  IMPOSING  ANY  FINE  OR
 REPRIMAND  SHALL  BE  SUBJECT TO REVIEW BY A PROCEEDING INSTITUTED UNDER
 ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND  RULES  AT  THE
 INSTANCE  OF  THE APPLICANT FOR SUCH LICENSE, THE HOLDER OF A LICENSE SO
 REVOKED, SUSPENDED, FINED OR REPRIMANDED.
   17. FOR THE PURPOSE OF THIS ARTICLE, LICENSEES MAY BE HELD RESPONSIBLE
 FOR STATEMENTS, REPRESENTATIONS, PROMISES OR ACTS OF THEIR EMPLOYEES  OR
 THEIR  AGENTS  WITHIN  THE  SCOPE OF THEIR AUTHORITY; PROVIDED, HOWEVER,
 THAT LICENSEES SHALL NOT BE HELD RESPONSIBLE FOR STATEMENTS, REPRESENTA-
 TIONS, PROMISES OR ACTS WHICH ARE  CONTRARY  TO  INSTRUCTIONS  OR  WHICH
 CONSTITUTE  GROSS  NEGLIGENCE  OR  INTENTIONAL TORTS UNLESS SPECIFICALLY
 AUTHORIZED BY THE LICENSEE. (A) ANY PERSON,  FIRM  OR  CORPORATION  THAT
 OPERATES  AS A PROCESS SERVER WITHOUT A LICENSE SHALL BE REQUIRED TO PAY
 A CIVIL PENALTY TO THE DEPARTMENT OF NOT MORE THAN FIVE HUNDRED  DOLLARS
 PER ATTEMPT TO SERVE PROCESS IN VIOLATION OF THIS SECTION;
   (B)  IN  ADDITION TO ANY OTHER PENALTIES, IF A PERSON IS FOUND TO HAVE
 COMMITTED REPEATED, MULTIPLE OR PERSISTENT VIOLATIONS OF  ANY  PROVISION
 OF  THIS  ARTICLE,  SUCH  PERSON  MAY BE RESPONSIBLE FOR THE COST OF THE
 DEPARTMENT'S INVESTIGATION.
   18. (A) AS A CONDITION OF OBTAINING A LICENSE PURSUANT TO  THIS  ARTI-
 CLE,  EVERY  PROCESS  SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND
 EMPLOYS BETWEEN ONE AND FOUR INDIVIDUALS ENGAGED IN THE SERVICE OF PROC-

 A. 4473                             5

 ESS SHALL OBTAIN AND CONTINUE IN FULL FORCE AND EFFECT A BOND,  CONTRACT
 OF INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF TEN THOU-
 SAND DOLLARS TO BE FILED WITH THE SECRETARY;
   (B)  AS  A  CONDITION TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
 EVERY PROCESS SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS
 BETWEEN FIVE AND NINE INDIVIDUALS ENGAGED  IN  THE  SERVICE  OF  PROCESS
 SHALL  OBTAIN  AND CONTINUE IN FULL FORCE AND EFFECT A BOND, CONTRACT OF
 INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF  TWENTY-FIVE
 THOUSAND  DOLLARS  TO  BE  FILED  WITH  THE  SECRETARY AS A CONDITION TO
 OBTAINING A LICENSE PURSUANT  TO  THIS  ARTICLE,  EVERY  PROCESS  SERVER
 APPLICANT  WHO  IS  APPLYING  FOR  A LICENSE AND EMPLOYS BETWEEN TEN AND
 TWENTY INDIVIDUALS ENGAGED IN THE SERVICE OF PROCESS  SHALL  OBTAIN  AND
 CONTINUE  IN  FULL  FORCE  AND  EFFECT A BOND, CONTRACT OF INDEMNITY, OR
 IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF FIFTY THOUSAND DOLLARS  TO
 BE FILED WITH THE SECRETARY;
   (C)  AS  A  CONDITION TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
 EVERY PROCESS APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS TWENTY
 OR MORE INDIVIDUALS ENGAGED IN THE SERVICE OF PROCESS SHALL  OBTAIN  AND
 CONTINUE  IN  FULL  FORCE  AND  EFFECT A BOND, CONTRACT OF INDEMNITY, OR
 IRREVOCABLE LETTER OF CREDIT, IN THE  AMOUNT  OF  SEVENTY-FIVE  THOUSAND
 DOLLARS TO BE FILED WITH THE SECRETARY;
   (D)  SUCH SURETY BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE LETTER OF
 CREDIT SHALL BE CONDITIONED THAT THE APPLICANT  WILL  COMPLY  WITH  THIS
 ARTICLE, ARTICLE TWENTY-NINE-H, AND ARTICLE TWENTY-NINE-HH OF THIS CHAP-
 TER  AND PAY ALL CIVIL PENALTIES, FINES, OR OTHER OBLIGATIONS IMPOSED BY
 THE SECRETARY OR A COURT OF LAW,  INVESTIGATORY  COSTS  REQUIRED  TO  BE
 PAID,  OR ANY FINAL JUDGMENT AGAINST THE LICENSEE PURSUANT TO SUCH ARTI-
 CLES;
   (E) THE TOTAL LIABILITY IMPOSED ON THE SURETY BOND UNDER THIS  SECTION
 FOR  ALL BREACHES OF THE BOND CONDITION IS LIMITED TO THE FACE AMOUNT OF
 THE BOND. SUCH LIABILITY IS LIMITED TO THE  AMOUNT  OF  THE  PENALTY  OR
 INVESTIGATORY COSTS. IN NO EVENT WILL THE SURETY ON A BOND BE LIABLE FOR
 TOTAL  CLAIMS  IN EXCESS OF THE BOND AMOUNT, REGARDLESS OF THE NUMBER OR
 NATURE OF CLAIMS MADE AGAINST THE BOND OR THE NUMBER OF YEARS  THE  BOND
 REMAINED IN FORCE;
   (F)  ANY SURETY ISSUING A BOND PURSUANT TO THIS SECTION AND ANY LICEN-
 SEE SHALL BE REQUIRED TO PROVIDE THIRTY DAYS  NOTICE  TO  THE  SECRETARY
 PRIOR  TO THE EFFECTIVE DATE OF CANCELLATION OF THE BOND. THE FAILURE TO
 MAINTAIN SUCH A BOND SHALL OPERATE TO REVOKE THE LICENSE OF THE  PROCESS
 SERVER UPON NOTICE AND HEARING.
   19. (A) WHEREVER THERE SHALL BE A VIOLATION OF THIS ARTICLE, AN APPLI-
 CATION  MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
 THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
 SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
 DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE  CONTIN-
 UANCE  OF  SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
 THE COURT OR JUSTICE THAT THE DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS
 SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
 AND  RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY
 PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED  THEREBY.  IN  ANY  SUCH
 PROCEEDING,  THE  COURT  MAY  MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
 PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE
 HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
 TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
 SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT LESS
 THAN ONE HUNDRED DOLLARS NOR MORE THAN TEN  THOUSAND  DOLLARS  FOR  EACH

 A. 4473                             6
 
 VIOLATION.  IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTOR-
 NEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF  THE
 RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
 TICE LAW AND RULES;
   (B) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
 ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
 FUL  ACT  OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR
 ONE THOUSAND DOLLARS, WHICHEVER IS GREATER, OR BOTH  SUCH  ACTIONS.  THE
 COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT
 NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TEN THOUSAND DOLLARS,
 IF THE COURT FINDS THE DEFENDANT WILLFULLY VIOLATED THIS ARTICLE. IN THE
 CASE  OF  ANY  SUCCESSFUL ACTION TO ENFORCE THE FOREGOING LIABILITY, THE
 COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER WITH REASONABLE  ATTOR-
 NEY'S FEES.
   20.  (A)  THIS  ARTICLE  SHALL APPLY TO ALL PROCESS SERVERS, PROVIDED,
 HOWEVER, THAT A POLITICAL SUBDIVISION MAY IMPOSE OTHER REQUIREMENTS THAT
 ARE IN ADDITION TO THE MINIMUM STANDARDS SET FORTH IN THIS ARTICLE.
   (B) THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TO LIMIT  IN
 ANY WAY THE AUTHORITY OF A POLITICAL SUBDIVISION TO ENACT, IMPLEMENT AND
 CONTINUE TO ENFORCE LOCAL LAWS AND REGULATIONS GOVERNING PROCESS SERVERS
 THAT  WERE  IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, OR TO
 ENACT, IMPLEMENT AND ENFORCE ANY AMENDMENTS THERETO AFTER THE  EFFECTIVE
 DATE OF THIS SECTION.
   § 3. Subdivision (e) of rule 3015 of the civil practice law and rules,
 as  amended  by  chapter  693 of the laws of 2019, is amended to read as
 follows:
   (e) License to do business. Where  the  plaintiff's  cause  of  action
 against  a  consumer  arises  from the plaintiff's conduct of a business
 which is required by state or local law to be licensed by the department
 of consumer affairs of the city of New York, the Suffolk county  depart-
 ment  of consumer affairs, the county of Rockland, the county of Putnam,
 the county of Westchester, or the Nassau county department  of  consumer
 affairs, OR THE DEPARTMENT OF STATE PURSUANT TO SECTION EIGHTY-NINE-U OF
 THE  GENERAL  BUSINESS  LAW,  the complaint shall allege, as part of the
 cause of action, that  plaintiff  was  duly  licensed  at  the  time  of
 services rendered and shall contain the name and number, if any, of such
 license and the governmental agency which issued such license. The fail-
 ure  of  the  plaintiff  to comply with this subdivision will permit the
 defendant to move for dismissal pursuant to paragraph seven of  subdivi-
 sion (a) of rule thirty-two hundred eleven of this chapter.
   § 4. This act shall take effect on the one hundred eightieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.