S T A T E   O F   N E W   Y O R K
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                                10594--A

                          I N  A S S E M B L Y

                              June 7, 2016
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Kim, Gott-
  fried, Dinowitz, Bichotte, Weprin) -- read once and  referred  to  the
  Committee  on  Cities  --  committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation to enacting the predatory towing prevention act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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
IMPRISONMENT  FOR  NOT  MORE  THAN  SIX MONTHS, OR BY BOTH SUCH FINE AND
IMPRISONMENT.
  S 2. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15701-03-6

A. 10594--A                         2

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.
  S 3. 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
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]

A. 10594--A                         3

  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.
  S  4.  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:
  S  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  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
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 2 OF SUBDIVISION A OF
THIS SECTION, THE COMMISSIONER, AFTER DUE NOTICE AND OPPORTUNITY  TO  BE

A. 10594--A                         4

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.
  S  5.  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.
  S 6. 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.
  S 7. 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 the problem  of  predatory  towing.  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.
  S 8. 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.
  S 9. This act shall take effect immediately.