NY State Senate Bill 2023-S3559

Archive: Last Bill Status - In Senate Committee Cities 1 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
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Delivered to Governor
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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to cities 1
Feb 01, 2023	referred to cities 1

2023-S3559 (ACTIVE) - Details

Current Committee:: Senate Cities 1
Law Section:: New York City Administrative Code
Laws Affected:: Amd §§19-169.1, 20-499, 20-504, 20-504.1, 20-510 & 20-515, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5996
2019-2020: S7018
2021-2022: S1610
2025-2026: S4793

2023-S3559 (ACTIVE) - Summary

Enacts the towing protection enforcement act; updates laws that regulate the towing of vehicles, including adding provisions thereto to prevent predatory towing of vehicles within the City of New York.

2023-S3559 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3559

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York, in
relation to enacting the towing protection enforcement act

 
PURPOSE OR GENERAL IDEA OF BILL:

To update the New York City laws that regulate the towing of vehicles,
including adding provisions thereto to prevent predatory towing of vehi-
cles within the City of New York

 
SUMMARY OF SPECIFIC PROVISIONS:

Section One of the bill:

Names this act as the "Towing Protection Enforcement Act"

Section Two of the bill:

*Imposes a criminal penalty for any tow truck operator who knowingly and
willfully violates certain sections of the Administrative Code relating
to the towing of a vehicle from private property.

*Increases the penalty if there is a second violation within a 24 month
time period.

Section two of the bill:

*Increases bonding requirements to $25,000 and $250,000.

*Requires any licensee who is currently paying into the fund and who is
found in violation of §§ 19-169.1 or the. Administrative Code ("Code")
to furnish a bond in an amount determined by the commissioner.

*Authorizes the commissioner to develop criteria for determining the
appropriate amount of cash contribution into the fund (the current
amount is $200).

Section three authorizes the commissioner to refuse the renew, suspend
or revoke a license of any operator who within a one year period,
receives five or more complaints for failing to obtain the consent of
the property owner before towing, or soliciting or offering inducements.

Section four requires the commissioner to refuse to renew, suspend or
revoke the license of any operator who within a one-year period commit-
ted two or more violations of soliciting or offering inducements at or
near the scene of the towing.

Section five prohibits an operator from using spotters or spotting tech-
niques, or from towing an improperly parked vehicle from private proper-
ty without the written consent of the owner or manager of the property,
as required in § 19.169.1 of the Code.

Section six amends 5 20-515 to include soliciting or offering inducement
at or near the scene of the towing of any improperly parked vehicle on
private property pursuant to.
Section seven requires the tow advisory board to conduct hearings in
each New York City borough on the problem of predatory towing and, in
consultation with the interagency advisory council, to make recommenda-
tions on how to combat this problem, including how to improve enforce-
ment of the current towing laws.

Section eight sets forth a severability clause.

Section nine provides that this act shall take effect immediately.

 
JUSTIFICATION:

In 2014, the Legal Aid Society, the New York City Department of Consumer
Affairs, and Assembly member Ron Kim worked together to prevent illegal
and predatory towing that resulted in over $30 million in fines and
restitution for consumers. In May of 2016, NBC New York's Investigative
Team reported more predatory towing in New York City that has left more
consumers feeling exploited without any recourse.

The current City laws protecting consumers against illegal towing has
not been updated since 1989. The new legislation will not only update
the law but also strengthen the ability of New York City Department of
Consumer Affairs to enforce against predatory towing.

 
PRIOR LEGISLATIVE HISTORY:

2022 REFERRED TO SENATE CITIES 1

2022 referred to assembly cities

2021 SENATE THIRD READING

2021 referred to assembly cities

2020 REFERRED TO SENATE CITIES

2019-20 referred to assembly cities

 
FISCAL IMPLICATIONS:

Minimal. Any costs associated with the conducting of hearings by the tow
advisory board.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S3559 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3559
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05245-01-3
 S. 3559                             2

 
 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
 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
 S. 3559                             3
 
 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;
   [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
 S. 3559                             4
 
 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.

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Senate Bill S3559

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Archive: Last Bill Status - In Senate Committee Cities 1 Committee

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2023-S3559 (ACTIVE) - Details

2023-S3559 (ACTIVE) - Summary

2023-S3559 (ACTIVE) - Sponsor Memo

2023-S3559 (ACTIVE) - Bill Text download pdf

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Sponsored By

James Sanders Jr.

Archive: Last Bill Status - In Senate Committee Cities 1 Committee

Actions

2023-S3559 (ACTIVE) - Details

2023-S3559 (ACTIVE) - Summary

2023-S3559 (ACTIVE) - Sponsor Memo

2023-S3559 (ACTIVE) - Bill Text download pdf

Comments