* § 1038. Violations, penalties and procedures. 1. Any model
management company that has failed to comply with the registration
requirements of section one thousand thirty-two of this article shall be
deemed to have violated this article.

2. Any model management company that has failed to comply within the
time specified by law with an order issued by the commissioner to comply
with the registration requirements of section one thousand thirty-two of
this article shall be deemed to have violated this article.

3. (a) The commissioner may impose a civil penalty upon a model
management company that has been deemed to have violated this article,
for no more than three thousand dollars for the initial violation, and
for no more than five thousand dollars for a second or subsequent
violation.

(b) The order imposing such civil penalty may be served personally or
by certified mail at the last known mailing address of the person being
served. Such order shall be in writing and shall describe the nature of
the violation, including reference to the provisions of subdivisions
one, two and three of this section alleged to have been violated.

4. An order issued under this section shall be final and not subject
to review by any court or agency unless a review is had pursuant to
section one hundred one of this chapter. Provided that no proceeding for
administrative or judicial review as provided in this chapter shall then
be pending and the time for initiation of such proceeding shall have
expired, the commissioner may file with the county clerk of the county
where the person against whom the penalty has been imposed has a place
of business the order of the commissioner or the decision of the
industrial board of appeals containing the amount of the civil penalty.
The filing of such order or decision shall have the full force and
effect of a judgment duly docketed in the office of such clerk. The
order or decision may be enforced by and in the name of the commissioner
in the same manner, and with like effect, as that prescribed by the
civil practice law and rules for the enforcement of a money judgment.

5. If any model management company has failed to comply within twenty
days of an order by the commissioner to register or renew registration,
the commissioner may seek to enjoin such unlawful activity, pursuant to
the civil practice law and rules.

6. The attorney general may bring and maintain an action in a court of
competent jurisdiction to enforce the provisions of this article when
the attorney general has determined there is reasonable cause to believe
that a model management company has engaged in repeated fraudulent or
illegal acts or otherwise demonstrates persistent fraud or illegality in
the carrying on, conducting, or transacting of business.

7. (a) A model who is aggrieved by a violation of this article may
file a complaint with the commissioner within six years after the acts
alleged to have violated this article occurred. The commissioner shall
prescribe the form of the complaint, which shall include, at a minimum:

(i) the name and mailing address of the model and of the person or
entity alleged to have violated this article;

(ii) a statement detailing the terms of the model's contract,
including a copy of such contract if available;

(iii) the model's occupation;

(iv) a statement detailing the alleged violations of this article; and

(v) a signed affirmation that all facts alleged in the complaint are
true.

(b) (i) Within twenty days of receiving a complaint alleging a
violation of this article, the commissioner shall send the person or
entity named in the complaint a written notice of complaint. The
commissioner shall send such notice by certified mail and shall bear the
cost of sending such notice.

(ii) Notice shall include:

(1) a copy of the complaint;

(2) materials of remedies available to the model for the violations of
said article by the person or entity named in the complaint;

(3) materials informing the person or entity that twenty days after
receiving the notice of complaint, the person or entity identified in
the complaint must answer; and

(4) materials informing the person or entity that failure to respond
to the complaint will create a rebuttable presumption in any civil
action commenced pursuant to this article that such person or entity
committed the violations alleged in the complaint.

(c) The response shall include:

(i) a written statement that the model has been paid in full and proof
of such payment; or

(ii) a written statement that the model has not been paid in full and
the reasons for the failure to provide such payment.

(d) (i) Within twenty days of receiving the written response, the
commissioner shall send the model a copy of:

(1) the response;

(2) any enclosures submitted to the commissioner with the response;
and

(3) any other information about the status of the complaint.

(ii) If the commissioner receives no response from the person or
entity alleged to have violated this article to the notice of complaint
within the time provided by this subdivision, then there shall be a
rebuttable presumption that such person or entity committed the
violations alleged in the complaint. The commissioner shall mail a
notice of non-response to both the model and the person or entity named
in the complaint by regular mail and shall include with such notice
proof that the commissioner previously mailed the notice of complaint to
the person or entity named in the complaint by certified mail.

8. An aggrieved model may bring and maintain an action in a court of
competent jurisdiction to enforce the provisions of sections one
thousand thirty-four and one thousand thirty-five of this article. A
model management company that violates these sections shall be liable
for actual damages to any model that has suffered damages due to such
violation, reasonable attorneys' fees and costs, and, unless the
employer proves a good faith basis to believe that its actions were in
compliance with the law, an additional amount as liquidated damages in
an amount of no more than one hundred percent of the total amount of
actual damages, except such liquidated damages may be up to three
hundred percent if found that the actions were willful.

* NB Effective June 19, 2025