S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5996--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               May 10, 2017
                                ___________
 
 Introduced  by Sens. HAMILTON, GOLDEN -- read twice and ordered printed,
   and when printed to be committed to the Committee on Cities -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05247-04-7

 S. 5996--A                          2
 
 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
 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

 S. 5996--A                          3
 
 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;
   [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. 5996--A                          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.