LBD14856-01-8
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(a) The background, character and reputation of any obligor[, and, in
the case of an insurance company bail bond, the qualifications of the
surety-obligor and its executing agent]; and
§ 4. The article heading of article 68 of the insurance law is amended
to read as follows:
[BAIL BONDS] CHARITABLE BAIL ORGANIZATIONS
§ 5. Sections 6801, 6802, 6803 and 6804 of the insurance law are
REPEALED and section 6805 is renumbered section 6801.
§ 6. The general business law is amended by adding a new section 391-u
to read as follows:
§ 391-U. PROHIBIT THE BAIL BOND BUSINESS. 1. FOR PURPOSES OF THIS
SECTION "BAIL BOND BUSINESS" SHALL MEAN ANY PERSON, PARTNERSHIP, OR
CORPORATION ENGAGED FOR PROFIT IN THE BUSINESS OF FURNISHING BAIL, OR TO
OTHERWISE FOR COMPENSATION OR OTHER CONSIDERATION FURNISH BAIL OR FUNDS
OR PROPERTY TO SERVE AS BAIL OR MAKE BONDS OR ENTER INTO UNDERTAKINGS AS
SURETY FOR THE APPEARANCE OF PERSONS CHARGED WITH ANY CRIMINAL OFFENSE
OR VIOLATION OF LAW OR ORDINANCE PUNISHABLE BY FINE OR IMPRISONMENT
BEFORE ANY COURT OF THIS STATE, OR SECURING THE PAYMENT OF FINES IMPOSED
AND OF COSTS ASSESSED BY SUCH COURTS UPON FINAL DISPOSITION THEREOF. THE
BUSINESS OF BAIL BONDSMAN SHALL BE LIMITED TO THE ACTS, TRANSACTIONS,
AND UNDERTAKINGS DESCRIBED IN THIS SUBDIVISION.
2. IT SHALL BE UNLAWFUL FOR ANY PERSON, PARTNERSHIP, OR CORPORATION TO
ENGAGE IN THE BAIL BOND BUSINESS AS DEFINED IN SUBDIVISION ONE OF THIS
SECTION.
3. ANY PERSON, PARTNERSHIP, OR CORPORATION WHO VIOLATES THIS SECTION
SHALL BE GUILTY OF A CLASS A MISDEMEANOR PUNISHABLE BY A FINE NOT TO
EXCEED FIVE HUNDRED DOLLARS, OR BY IMPRISONMENT OF NOT MORE THAN ONE
YEAR, OR BY BOTH SUCH FINE AND IMPRISONMENT.
§ 7. The article heading of article 7 of the general business law, as
amended by chapter 562 of the laws of 2000, is amended to read as
follows:
PRIVATE INVESTIGATORS[, BAIL ENFORCEMENT
AGENTS] AND WATCH, GUARD AND PATROL AGENCIES
§ 8. Section 70-a of the general business law, as added by chapter 115
of the laws of 2015, is amended to read as follows:
§ 70-a. [Bail enforcement agents and watch] WATCH, guard or patrol
agencies. 1. The department of state shall have the power to issue
separate licenses to [bail enforcement agents and to] watch, guard or
patrol agencies. Nothing in this article shall prevent a private inves-
tigator licensed hereunder from performing the services of a watch,
guard or patrol agency [or bail enforcement agent] as defined in this
article; however, a watch, guard or patrol agency [or bail enforcement
agent] may not perform the services of a private investigator as defined
in this article.
2. No person, firm, company, partnership, limited liability company or
corporation shall engage in the business of [bail enforcement agents or
the business of] watch, guard or patrol agency, or advertise his, their
or its business to be that of [bail enforcement agent or] watch, guard
or patrol agency, notwithstanding the name or title used in describing
such agency or notwithstanding the fact that other functions and
services may also be performed for fee, hire or reward, without having
first obtained from the department of state a license so to do, as here-
inafter provided, for each bureau, agency, sub-agency, office and branch
office to be owned, conducted, managed or maintained by such person,
firm, company, partnership, limited liability company or corporation for
the conduct of such business.
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3. Any person, firm, company, partnership or corporation who violates
any provision of this section shall be guilty of a class B misdemeanor.
§ 9. Subdivisions 1-a and 4 of section 71 of the general business law
are REPEALED.
§ 10. The opening paragraph of section 72 of the general business law,
as amended by chapter 562 of the laws of 2000, is amended to read as
follows:
Application for licenses. Any person, firm, partnership, limited
liability company or corporation intending to conduct the business of
private investigator[, business of bail enforcement agent] or the busi-
ness of watch, guard or patrol agency, and any person, firm, partner-
ship, limited liability company or corporation intending to conduct the
business of furnishing or supplying information as to the personal char-
acter of any person or firm, or as to the character or kind of the busi-
ness and occupation of any person, firm or corporation, society or asso-
ciation or any person or group of persons, or intending to own, conduct,
manage or maintain a bureau or agency for the above mentioned purposes,
or while engaged in other lawful business activities also intending to
engage in any one or more of the activities set forth in section seven-
ty-one of this article except exclusively as to the financial rating,
standing, and credit responsibility of persons, firms, companies or
corporations or as to personal habits and financial responsibility of
applicants for [insurance indemnity bonds or] commercial credit or of
claimants under insurance policies shall, for each such bureau or agency
and for each and every sub-agency, office and branch office to be owned,
conducted, managed or maintained by such person, firm, partnership,
limited liability company or corporation for the conduct of such busi-
ness, file in the office of the department of state a written applica-
tion, on forms provided by the department containing such information
and documentation, including fingerprints, as the secretary of state may
require by rule and regulation.
§ 11. Subdivision 1 of section 73 of the general business law, as
amended by chapter 562 of the laws of 2000, is amended to read as
follows:
1. The secretary of state shall have the power to enforce the
provisions of this article and article seven-A of this chapter and upon
complaint of any person, or on his own initiative, to investigate any
violation thereof or to investigate the business, business practices and
business methods of any person, firm, limited liability company, part-
nership or corporation applying for or holding a license as a private
investigator[, bail enforcement agent] or watch, guard or patrol agency,
if in the opinion of the secretary of state such investigation is
warranted. Each such applicant or licensee shall be obliged, on request
of the secretary of state, to supply such information, books, papers or
records as may be required concerning his, their or its business, busi-
ness practices or business methods, or proposed business practices or
methods. Failure to comply with a lawful request of 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.
§ 12. Paragraphs (a) and (b) of subdivision 1 of section 74 of the
general business law, as amended by chapter 562 of the laws of 2000,
paragraph (b) as further amended by section 104 of part A of chapter 62
of the laws of 2011, are amended to read as follows:
(a) The application shall be accompanied by a non-refundable fee,
payable to the department of state for the use of the state, for each
certificate of license, as hereinbelow enumerated, issued to the appli-
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cant, if the applicant be an individual, of four hundred dollars for a
license as private investigator [or bail enforcement agent] or a fee of
three hundred dollars for a license as watch, guard or patrol agency, or
if the applicant be a firm, partnership, limited liability company or
corporation, a fee of five hundred dollars for a license as private
investigator [or bail enforcement agent] or a fee of four hundred
dollars for a license as watch, guard or patrol agency.
(b) When the application shall have been examined and such further
inquiry and investigation made as the secretary of state shall deem
proper, and when the secretary of state shall be satisfied therefrom of
the good character, competency and integrity of such applicant, or, if
the applicant be a firm or partnership, the individual members thereof,
or if the applicant be a limited liability company, the individual
members thereof, or if the applicant be a corporation, the president,
secretary, treasurer and all other officers and all directors thereof,
and each stockholder owning ten per centum or more of the stock and a
period to ten days from the date of the filing of the application shall
have passed, the department of state shall issue and deliver to such
applicant a certificate of license to conduct such business and to own,
conduct or maintain a bureau, agency, sub-agency, office or branch
office for the conduct of such business on the premises stated in such
application upon the applicant's executing, delivering and filing in the
office of such department a surety company bond in the sum of ten thou-
sand dollars; provided however, that [an applicant for a license as a
bail enforcement agent shall execute, deliver and file with the office
of such department a surety company bond in the sum of five hundred
thousand dollars, conditioned for the faithful and honest conduct of
such business by such applicant, which surety bond must be written by a
company recognized and approved by the superintendent of financial
services of the state, and approved by the department of state with
respect to its form, manner of execution and sufficiency provided,
further, however,] before a license is issued to a non-resident the
applicant must file with the secretary of state a written consent to the
jurisdiction of the courts of New York (i) in any case or cases arising
from any contract for the performance of private investigative services
as private investigator[, bail enforcement agent] or watch, guard or
patrol agency, made within the state or to be performed, wholly or in
part, within the state or in any way connected with the conduct of busi-
ness within the state, and (ii) in any case or cases arising from any
tort occurring within the state or occurring in connection with the
business of the licensee within the state. The license as private inves-
tigator[, bail enforcement agent] or watch, guard or patrol agency
granted pursuant to this article shall last for a period of two years,
but shall be revocable at all times by the department of state for cause
shown. Such bond shall be taken in the name of the people of the state
of New York, and any person injured by the violation of any of the
provisions of this article or by the wilful, malicious and wrongful act
of the principal or employee may bring an action against such principal,
employee or both on said bond in his own name to recover damages
suffered by reason of such wilful, malicious and wrongful act. In each
and every suit, or prosecution arising out of this article, the agency
of any employee as to the employment and as to acting in the course of
his employment, shall be presumed. The license certificate shall be in a
form to be prescribed by the secretary of state and shall specify the
full name of the applicant, the location of the principal office or
place of business and the location of the bureau, agency, sub-agency,
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office or branch office for which the license is issued, the date on
which it is issued, the date on which it will expire and the names and
residences of the applicant or applicants filing the statement required
by section seventy-two of this article upon which the license is issued
and in the event of a change of any such address or residence the
department of state shall be duly notified in writing of such change
within twenty-four hours thereafter, and failure to give such notifica-
tion shall be sufficient cause for revocation of such license. No such
license as private investigator[, bail enforcement agent] or watch,
guard or patrol agency shall be issued to a person under the age of
twenty-five years.
§ 13. Section 74-a of the general business law is REPEALED.
§ 14. Section 80 of the general business law, as amended by chapter
562 of the laws of 2000, is amended to read as follows:
§ 80. License certificates, pocket cards or badges. Upon the issuing
of a license as hereinbefore provided the department of state shall
issue to each person, partner, member of a limited liability company or
officer of a corporation making and filing a statement required by
section seventy-two of this article a pocket card of such size and
design as the department of state may prescribe, which card shall
contain a photograph of the licensee, the name and business address of
the licensee and the imprint or impress of the seal of the department of
state which pocket card shall be evidence of due authorization pursuant
to the terms of this article. All persons to whom such license certif-
icates or pocket cards shall have been issued shall be responsible for
the safe keeping of the same, and shall not lend, enable, let or allow
any other person to have, hold, use or display such certificate or pock-
et card; and any person so parting with such a license certificate or
pocket card or displaying the same without authority, or who shall
display any license certificate or pocket card purporting to authorize
the holder thereof to act as a private investigator[, bail enforcement
agent or] watch, guard or patrol agency, unless the same shall have been
duly issued pursuant to the provisions of this article, shall be guilty
of a misdemeanor. Failure to comply with the provisions of this section
shall be sufficient cause for revocation of such license, and all such
certificates or pocket cards shall be returned to the department of
state within seventy-two hours after the holder thereof has received
notice in writing of the expiration or revocation of such license. It
shall be unlawful for a holder of a license or anyone else to distrib-
ute, possess, use or display any license certificate, pocket card,
badge, shield or any other indicia of a license status pursuant to this
article except as set forth in this article. Any person who is a licen-
see hereunder or an officer or authorized employee of any other person,
firm, limited liability company or corporation, whether or not licensed
hereunder, while performing the services of a watchman, guard or private
patrolman, may wear on his outer clothing a rectangular metal or woven
insignia approved by the department of state, which insignia shall not
be larger than three inches high nor four inches wide with an
inscription thereon containing the word "watchman", "guard", "patrol" or
"special service" and the name of such licensee or employer. It shall be
unlawful for any employer, whether or not licensed hereunder, to wear or
distribute to his, their or its employees any employment identification
except as authorized in this article and approved by the secretary of
state. Any person violating any provision of this section shall be guil-
ty of a misdemeanor.
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§ 15. Subdivision 1 of section 81 of the general business law, as
amended by section 14 of part LL of chapter 56 of the laws of 2010, is
amended to read as follows:
1. The holder of any license certificate issued pursuant to this arti-
cle may employ to assist him in his work of private detective or inves-
tigator [or bail enforcement agent] as described in section seventy-one
of this article and in the conduct of such business as many persons as
he may deem necessary, and shall at all times during such employment be
legally responsible for the good conduct in the business of each and
every person so employed. No holder of any unexpired license certif-
icate issued pursuant to this article shall knowingly employ in
connection with his or its business in any capacity whatsoever, any
person who has been convicted of a felony or any of the offenses speci-
fied in subdivision two of section seventy-four of this article, and who
has not subsequent to such conviction received executive pardon therefor
removing this disability, or received a certificate of relief from disa-
bilities or a certificate of good conduct pursuant to article twenty-
three of the correction law to remove the disability under this section
because of such a conviction, or any person whose private detective or
investigator's license [or bail enforcement agent's license] was revoked
or application for such license was denied by the department of state or
by the authorities of any other state or territory because of conviction
of any of such offenses. Should the holder of an unexpired license
certificate falsely state or represent that a person is or has been in
his employ, such false statement or misrepresentation shall be suffi-
cient cause for the revocation of such license. Any person falsely stat-
ing or representing that he is or has been a detective or employed by a
detective agency [or that he is or has been a bail enforcement agent or
employed by a bail enforcement agency] shall be guilty of a misdemeanor.
§ 16. The opening paragraph of section 83 of the general business law,
as amended by chapter 127 of the laws of 2015, is amended to read as
follows:
Nothing in this article shall apply to any detective or officer
belonging to the police force of the state, or any county, city, town or
village thereof, appointed or elected by due authority of law, or to any
person in the employ of any police force or police department of the
state, or of any county, city, town or village thereof while engaged in
the performance of their official duties; nor to any person, firm,
limited liability company, partnership, corporation, or any bureau or
agency, whose business is exclusively the furnishing of information as
to the business and financial standing, and credit responsibility of
persons, firms, or corporations, or as to the personal habits and finan-
cial responsibility of applicants for insurance, indemnity bonds or
commercial credit or of claimants under insurance policies, nor to any
person licensed as a certified public accountant while engaged in the
practice of public accountancy as defined in article one hundred forty-
nine of the education law or any firm, limited liability company, part-
nership or corporation registered as a certified public accounting firm
by the commissioner of education while performing services regulated
under article one hundred forty-nine of the education law or Part 70 of
the regulations of the commissioner of education; and whose business
does not embrace other activities described in section seventy-one of
this article; or whose business is licensed by the commissioner of labor
under the provisions of section twenty-four-a or subdivision three-b of
section fifty of the workers' compensation law or whose business is
representing employers or groups of employers insured under the workers'
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compensation law in the state insurance fund; nor to any corporation
duly authorized by the state to operate a central burglar or fire alarm
protection business; nor to any person while engaged in the business of
adjuster for an insurance company nor to any public adjuster licensed by
the superintendent of financial services under the insurance law nor to
any person regularly employed as special agent, detective or investi-
gator exclusively by one employer in connection with the affairs of that
employer only nor to any charitable or philanthropic society or associ-
ation duly incorporated under the laws of the state and which is organ-
ized and maintained for the public good and not for private profit, nor
shall anything in this article contained be construed to affect in any
way attorneys or counselors at law in the regular practice of their
profession, but such exemption shall not enure to the benefit of any
employee or representative of such attorney or counselor at law who is
not employed solely, exclusively and regularly by such attorney or coun-
selor at law. No person, firm, limited liability company, partnership,
corporation or any bureau or agency exempted hereunder from the applica-
tion of this article shall perform any manner of private investigator[,
bail enforcement agent] or watch, guard or patrol agency service as
described in section seventy-one of this article, for any other person,
firm, limited liability company, partnership, corporation, bureau or
agency whether for fee, hire, reward, other compensation, remuneration,
or consideration or as an accommodation without fee, reward or remunera-
tion or by a reciprocal arrangement whereby such services are exchanged
on request of parties thereto. The commission of a single act prohibit-
ed by this article shall constitute a violation thereof.
§ 17. Subdivision 1 of section 84 of the general business law, as
amended by chapter 84 of the laws of 2001, is amended to read as
follows:
1. It is unlawful for the holder of a license, issued under this arti-
cle, or for any employee of such licensee, knowingly to commit any of
the following acts within or without the state of New York: to incite,
encourage, or aid in the incitement or encouragement of any person or
persons who have become a party to any strike, to do unlawful acts
against the person or property of any one, or to incite, stir up, create
or aid in the inciting of discontent or dissatisfaction among the
employees of any person, firm, limited liability company or corporation
with the intention of having them strike; to interfere or prevent lawful
and peaceful picketing during strikes; to interfere with, restrain, or
coerce employees in the exercise of their right to form, join or assist
any labor organization of their own choosing; to interfere or hinder the
lawful or peaceful collective bargaining between employees and employ-
ers; to pay, offer, or give any money, gratuity, favor, consideration,
or other thing of value, directly or indirectly, to any person for any
verbal or written report of the lawful activities of employees in the
exercise of their right of self-organization, to form, join, or assist
labor organizations and to bargain collectively through representatives
of their own choosing; to advertise for, recruit, furnish or replace or
offer to furnish or replace for hire or reward, within or without the
state of New York, any help or labor, skilled or unskilled, or to
furnish or offer to furnish armed guards, other than armed guards there-
tofore regularly employed for the protection of payrolls, property or
premises, for service upon property which is being operated in antic-
ipation of or during the course or existence of a strike, or furnish
armed guards upon the highways, for persons involved in labor disputes
or to furnish or offer to furnish to employers or their agents, any
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arms, munitions, tear gas implements, or any other weapons; or to send
letters or literature to employers offering to eliminate labor unions or
distribute or circulate any list of members of a labor organization, or
to advise any person of the membership of an individual in a labor
organization for the express purpose of preventing those so listed or
named from obtaining or retaining employment. The violation of any of
the provisions of this section shall constitute a misdemeanor and shall
be punishable by a fine of not less than five hundred dollars, or one
year's imprisonment or both. It is unlawful for the holder of a license
to collect or offer or attempt to collect or directly or indirectly
engage in the business of collecting of debts or claims of any kind,
excepting that the taking possession, on behalf of a secured party
having the right to do so under section 9--609 of the uniform commercial
code, of property in the possession of a debtor who has defaulted in the
performance of a security agreement secured by such property, shall not
be considered a violation of this section and excepting further that the
secretary of state may grant exemption from this prohibition in the
collection of debts to licensees who are principally engaged in the
business of credit investigation and credit reporting. It is unlawful
for the holder of a license to furnish or perform any services described
in subdivisions one and two of section seventy-one of this article on a
contingent or percentage basis or to make or enter into any agreement
for furnishing services of any kind or character, by the terms or condi-
tions of which agreement the compensation to be paid for such services
to the holder of a license is partially or wholly contingent or based
upon a percentage of the amount of money or property recovered or
dependent in any way upon the result achieved. It shall be unlawful for
a holder of a license to use, display, cause to be printed or distrib-
uted, cards, letter-heads, circulars, brochures or any other advertising
material or advertisement in which any name or indicia of the license
status of the licensee is set forth in any manner other than the name
under which the licensee is duly licensed. It is unlawful for a licensed
private investigator [or bail enforcement agent] to own, have or possess
or in any manner to wear, exhibit or display, a shield or badge of any
material, kind, nature or description, in the performance of any of the
activities as private investigator [or bail enforcement agent], as
distinguished from watch, guard or patrol agency, under this article.
It is unlawful for a licensed private investigator [or bail enforcement
agent] to issue to any person employed by such licensee, a badge or
shield of any material, kind, nature or description, and it is unlawful
for any person employed by such licensee to possess, carry or display a
badge or shield of any description provided that any licensed private
investigator [or bail enforcement agent] who also engages in the busi-
ness of watch, guard or patrol agency may possess, use or display or
issue to employees in the conduct of such business, a rectangular metal
or woven insignia to be worn on the outer clothing and approved by the
department of state, which insignia shall not be larger than three inch-
es high or four inches wide with an inscription thereon containing the
word "watchman", "guard", "patrol" or "special service" and the name of
the licensee. It shall be unlawful for any licensee to publish or cause
to be published any advertisement, letter-head, circular, statement or
phrase of any sort which suggests that the licensee is an official
police or investigative agency or any other agency instrumentality of
the state of New York or any of its political subdivisions. It shall be
unlawful for any licensee to make any statement which would reasonably
cause another person to believe that the licensee is a police officer or
A. 10394 9
official investigator of the state of New York or any of its political
subdivisions. It shall be unlawful for a licensee to offer, by radio,
television, newspaper advertisement or any other means of communication,
to perform services at any location which is merely the location of a
telephone answer service unless full disclosure of that fact is made in
the advertisement.
§ 18. This act shall take effect on the one hundred eightieth day
after it shall have become a law.