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A00633 Summary:

BILL NO    A00633 

SAME AS    No same as 

SPONSOR    Gibson (MS)

COSPNSR    Cook

MLTSPNSR   

Amd S89-t, add S89-w, Gen Bus L; amd R3015, CPLR

Relates to process servers, relating to licensing and penalties.
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A00633 Actions:

BILL NO    A00633 

01/09/2013 referred to economic development
12/06/2013 enacting clause stricken
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A00633 Votes:

There are no votes for this bill in this legislative session.
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A00633 Memo:

BILL NUMBER:A633

TITLE OF BILL:  An act to amend the general business law and the civil
practice law and rules, in relation to process servers

PURPOSE  OR  GENERAL  IDEA  OF  BILL:   The purpose of this bill is to
protect parties from  litigation  from  irresponsible  and  at  times,
illegal  service of process and maintain a high level of integrity and
professionalism  in  the  third  party  process  server  industry,  by
requiring process servers to be licensed by the Department of State.

SUMMARY  OF  SPECIFIC PROVISIONS:  This bill would require third party
process servers to obtain a  license  by  October  1,  2010  from  the
Department  of State (DOS).  Licenses would cost $500 and be valid for
two years.

In addition  to  the  submission  of  the  usual  license  application
information,  such  as  business  name,  address and telephone number,
applicants would be required to submit a description of the methods or
practices used to ensure that its employees  act  in  compliance  with
applicable laws in carrying out the service of process.

The  Secretary  of  State  would  be  authorized  to refuse to issue a
license to any applicant found to have been convicted  of  larceny  of
have  failed  to  pay any civil judgment relating to work as a process
server. The Department of State  would  be  authorized  to  revoke  or
suspend a license or to impose a fine upon proof that the licensee has
engaged in violative conduct including fraud or misrepresentation, The
Secretary  would  also  be  authorized  to  perform investigations and
compel the attendance of  witness  and  review  the  licensed  process
server's books and records.

Certain  process  servers  would be required to obtain surety bonding.
The amount of the bond would be between $10,000 and $75,000, depending
on the number of people employed by the licensee. The  bond  would  be
conditioned  on  compliance  with  this article and the payment of all
fines or investigatory costs. Process Servers would also  be  required
to  include the license number issued by the DOS on any advertisement,
letterhead, receipt or other printed matter produced  by  the  process
server.  The  DOS  would  be  required  to  publish  a registry of all
licensed process servers on its website.  submitted in accordance with
Assembly Rule III, Sec 10)

The Attorney General would be authorized to enforce the provisions  of
this  article  by  seeking  an injunction against a violator. The bill
also provides for a civil penalty of between $100 and $10,000 for each
violation.

The bill provides for a private right of action for an  injunction  or
actual  damages  or  one  thousand  dollars, whichever is greater. The
court may, in its discretion, increase the  award  of  damages  to  an
amount not to exceed three times the actual damages up to ten thousand
dollars,  if  the  court  finds  the defendant willfully violated this
article.

JUSTIFICATION:  Notice is a critical part of achieving justice in  the
courts.  Without  proper  service of process, individuals may never be


aware that they are party to litigation and thus, may never get  their
day in court.

While  the  majority  of  those engaged in the business of serving are
honest  and  ethical  in  their  dealings,  there  is  a  minority  of
unscrupulous  actors  who  have engaged in 'sewer service" as has been
documented in recent media reports.  These  reports  have  illustrated
large  scale  fraud by certain actors where individuals never received
notice that consumer cases had  been  filed  against  them  and  as  a
result, they were subjected to default judgments.

For  the  reasons  above,  it is imperative that the State protect the
interests, of its citizens against those process  servers  that  abuse
their privilege of operation.

PRIOR  LEGISLATIVE  HISTORY:    2010:  A.11110  - Referred to Economic
Development/S.7265 - Referred to Consumer Protection, 2011-12: A.491 -
Referred to Economic Development

FISCAL  IMPLICATIONS  FOR  STATE  AND  LOCAL  GOVERNMENTS:     To   be
determined.

EFFECTIVE  DATE:    This  act  shall  take  effect  on the one hundred
eightieth day after it shall have become  a  law;  provided,  however,
that  effective  immediately, the addition, amendment and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date is authorized and directed to be made and completed
on or before such effective date.
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A00633 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                          633

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                      (PREFILED)

                                    January 9, 2013
                                      ___________

       Introduced  by  M.  of  A. GIBSON, COOK -- read once and referred to the
         Committee on Economic Development

       AN ACT to amend the general business law and the civil practice law  and
         rules, in relation to process servers

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

    1    Section 1. Section 89-t of the general business law, as added by chap-
    2  ter 397 of the laws of 1973 and as redesignated by chapter  336  of  the
    3  laws of 1992, is amended to read as follows:
    4    S  89-t.  Definitions.  1.  For  this article, a "process server" is a
    5  person other than an attorney or a party to an action acting on his  own
    6  behalf who:  (a) derives income from the service of papers in an action;
    7  or  (b)  has  effected  service  of  process  in five or more actions or
    8  proceedings in the twelve month period immediately preceding the service
    9  in question. A person who serves interlocutory papers upon  an  attorney
   10  or who serves papers on behalf of a federal, state or local governmental
   11  agency  in  the  course  of  his  employment by such agency shall not be
   12  deemed a process server within the meaning of this article by virtue  of
   13  such  service.   FOR THE PURPOSES OF THIS CHAPTER THE SERVICE OF FIVE OR
   14  MORE PROCESS IN ANY ONE YEAR SHALL BE DEEMED TO CONSTITUTE  DOING  BUSI-
   15  NESS AS A PROCESS SERVER.
   16    2. "DEPARTMENT" SHALL MEAN DEPARTMENT OF STATE.
   17    3. "SECRETARY" SHALL MEAN SECRETARY OF STATE.
   18    S  2. Article 8 of the general business law is amended by adding a new
   19  section 89-w to read as follows:
   20    S 89-W. PROCESS SERVER, LICENSING, PENALTIES.  1.  ISSUANCE,  RENEWAL,
   21  SUSPENSION  AND  REVOCATION OF A LICENSE. ON OR AFTER OCTOBER FIRST, TWO
   22  THOUSAND THIRTEEN, NO PERSON SHALL ACT AS A PROCESS SERVER WITHOUT FIRST
   23  HAVING OBTAINED A LICENSE IN ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS
   24  ARTICLE, AND WITHOUT FIRST BEING IN COMPLIANCE WITH ALL OTHER APPLICABLE
   25  LAWS, RULES AND REGULATIONS.

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01993-01-3
       A. 633                              2

    1    2. (A) ALL LICENSES ISSUED PURSUANT TO THIS ARTICLE SHALL BE VALID FOR
    2  TWO YEARS UNLESS SOONER SUSPENDED OR REVOKED. THE SECRETARY SHALL ESTAB-
    3  LISH BY REGULATION THE EXPIRATION DATE OF SUCH LICENSES.
    4    (B)  THE  FEE  FOR  A LICENSE OR RENEWAL THEREOF SHALL BE FIVE HUNDRED
    5  DOLLARS.
    6    3. (A) EACH PERSON APPLYING FOR A PROCESS SERVER  LICENSE  OR  RENEWAL
    7  THEREOF  SHALL FILE AN APPLICATION IN SUCH FORM AND DETAIL AS THE SECRE-
    8  TARY MAY PRESCRIBE AND SHALL PAY THE FEE REQUIRED BY THIS SECTION.
    9    (B) IN ADDITION TO ANY OTHER INFORMATION REQUIRED, THE SECRETARY SHALL
   10  REQUIRE THE FOLLOWING INFORMATION, AND SHALL,  AS  APPROPRIATE,  REQUIRE
   11  SUCH  INFORMATION NOT ONLY OF THE APPLICANT BUT ALSO OF ANY OF ITS PRIN-
   12  CIPALS, PARTNERS, OFFICERS  AND  DIRECTORS,  OR  ANY  PERSON  OR  ENTITY
   13  CONTROLLING AN INTEREST GREATER THAN TEN PERCENT:
   14    (I) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
   15    (II) THE BUSINESS NAME, IF OTHER THAN APPLICANT;
   16    (III)  THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
   17  AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
   18    (IV) THE BUSINESS TELEPHONE OF THE APPLICANT;
   19    (V) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN A PROCESS SERVER;
   20    (VI) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
   21    (A) BEEN CONVICTED OF ANY CRIME OR IS A DEBTOR  ON  ANY  UNPAID  CIVIL
   22  JUDGMENT RELATING TO WORK AS A PROCESS SERVER; AND
   23    (B)  AT  ANY  TIME  IN THE PAST BEEN ISSUED A LICENSE PURSUANT TO THIS
   24  ARTICLE, OR HAS BEEN ISSUED A LICENSE FOR PROCESS SERVING ACTIVITIES  BY
   25  ANY  OTHER STATE OR LOCAL AUTHORITY, AND IF SO, WHETHER SUCH LICENSE WAS
   26  EVER REVOKED OR SUSPENDED;
   27    (VII) A DETAILED DESCRIPTION OF  THE  BUSINESS  PRACTICES  OR  METHODS
   28  USED,  OR  INTENDED  TO  BE  USED,  BY THE APPLICANT TO CONFIRM THAT THE
   29  ACTIONS OF ITS EMPLOYEES ARE IN  COMPLIANCE  WITH  APPLICABLE  LAWS,  IN
   30  PARTICULAR  WITH  REGARD TO EMPLOYEES CARRYING OUT THE NEW YORK REQUIRE-
   31  MENTS OF SERVICE OF PROCESS AS SET FORTH IN THE CIVIL PRACTICE  LAW  AND
   32  RULES;
   33    (VIII)  AN  APPLICANT WHO IS A NON-RESIDENT OF THE STATE SHALL PROVIDE
   34  THE NAME AND ADDRESS OF A REGISTERED AGENT WITHIN THE STATE OR DESIGNATE
   35  THE SECRETARY AS HIS OR HER AGENT UPON WHOM PROCESS OR  OTHER  NOTIFICA-
   36  TION MAY BE SERVED.
   37    4.  IN  DETERMINING WHETHER TO ISSUE OR RENEW A LICENSE, THE SECRETARY
   38  SHALL CONSIDER THE CHARACTER, COMPETENCY AND INTEGRITY OF THE APPLICANT.
   39  THE SECRETARY MAY REFUSE TO ISSUE OR RENEW A LICENSE TO ANY PERSON, FIRM
   40  OR CORPORATION WHOM HE OR SHE FINDS HAS: BEEN  CONVICTED  OF  ANY  CRIME
   41  DEFINED  IN  ARTICLE  ONE HUNDRED FIFTY-FIVE OF THE PENAL LAW OR ARTICLE
   42  TWENTY-TWO-A OF THIS CHAPTER OR FAILED TO PAY ANY FINAL  CIVIL  JUDGMENT
   43  RELATING  TO  WORK AS A PROCESS SERVER, IF SUCH REFUSAL, IN THE JUDGMENT
   44  OF THE SECRETARY, BEST PROMOTES THE INTERESTS  OF  THE  PEOPLE  OF  THIS
   45  STATE.
   46    5.  NOTICE IN WRITING IN THE MANNER AND FORM PRESCRIBED BY THE DEPART-
   47  MENT SHALL BE GIVEN TO THE DEPARTMENT AT ITS OFFICES  IN  ALBANY  WITHIN
   48  TEN  DAYS  OF CHANGES OF NAME OR ADDRESS BY LICENSED PROCESS SERVER. THE
   49  FEE FOR FILING EACH CHANGE OF  NAME  OR  ADDRESS  NOTICE  SHALL  BE  TEN
   50  DOLLARS.
   51    6. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
   52    7.  EACH  PROCESS  SERVER ENGAGED IN SERVING PROCESS SHALL COMMUNICATE
   53  HIS OR HER LICENSE NUMBER UPON THE REQUEST OF ANY INTERESTED PARTY.  ANY
   54  ADVERTISEMENT, LETTERHEAD, RECEIPT OR OTHER PRINTED MATTER OF A LICENSEE
   55  MUST  CONTAIN THE LICENSE NUMBER ASSIGNED TO THE LICENSEE BY THE DEPART-
   56  MENT. SUCH LICENSE NUMBER SHALL BE CLEARLY AND CONSPICUOUSLY DISPLAYED.
       A. 633                              3

    1    8. NO PERSON, FIRM OR CORPORATION SHALL: (A) PRESENT,  OR  ATTEMPT  TO
    2  PRESENT, AS HIS, HER OR ITS OWN, THE LICENSE NUMBER OF ANOTHER;
    3    (B)  KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE DEPART-
    4  MENT FOR THE PURPOSE OF PROCURING A LICENSE;
    5    (C) FALSELY REPRESENT THEMSELVES TO BE A LICENSED PROCESS SERVER;
    6    (D) USE OR ATTEMPT TO USE A LICENSE WHICH HAS EXPIRED;
    7    (E) OFFER TO PERFORM OR PERFORM ANY SERVICE OF PROCESS WITHOUT  HAVING
    8  A CURRENT LICENSE AS IS REQUIRED UNDER THIS ARTICLE; OR
    9    (F)  REPRESENT  IN ANY MANNER THAT HIS, HER OR ITS LICENSE CONSTITUTES
   10  AN ENDORSEMENT OF THE QUALITY OF WORKMANSHIP OR COMPETENCY OF THE  PROC-
   11  ESS SERVER.
   12    9.  LICENSES  ISSUED  TO  PROCESS SERVERS SHALL NOT BE TRANSFERABLE OR
   13  ASSIGNABLE.
   14    10. THE SECRETARY SHALL ISSUE EACH PROCESS  SERVER  A  UNIQUE  LICENSE
   15  NUMBER.
   16    11.  THE  SECRETARY  SHALL  MAINTAIN  AND  PUBLISH  A  REGISTRY OF ALL
   17  LICENSED PROCESS SERVERS WHICH SHALL  LIST  AND  IDENTIFY  ALL  LICENSED
   18  PROCESS  SERVERS  DOING BUSINESS IN THIS STATE. THE SECRETARY SHALL MAKE
   19  THE REGISTRY AVAILABLE ON ITS WEBSITE. (A)  THE  SECRETARY  SHALL  ADOPT
   20  SUCH  RULES AND REGULATIONS AS HE OR SHE MAY DETERMINE ARE NECESSARY FOR
   21  THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE,  AND  SHALL  PROVIDE
   22  WRITTEN  NOTIFICATION  OF  THE PROVISIONS OF THIS ARTICLE TO ALL PROCESS
   23  SERVERS LICENSED PURSUANT TO THIS ARTICLE;
   24    (B) IN ADDITION TO ANY OTHER POWERS OF THE SECRETARY, NOT  IN  LIMITA-
   25  TION  THEREOF,  HE OR SHE SHALL HAVE THE POWER TO ENFORCE THE PROVISIONS
   26  OF THIS ARTICLE, TO INVESTIGATE ANY VIOLATION  THEREOF,  TO  INVESTIGATE
   27  THE  BUSINESS,  BUSINESS  PRACTICES  AND BUSINESS METHODS OF ANY PROCESS
   28  SERVER, AND TO CONDUCT ROUTINE EXAMINATIONS OF THE FINANCIAL SOLVENCY OF
   29  ANY PROCESS SERVER, IF IN THE OPINION OF THE  SECRETARY,  SUCH  INVESTI-
   30  GATION  OR  EXAMINATION  IS  WARRANTED.  EACH  PROCESS  SERVER  SHALL BE
   31  OBLIGED, ON REQUEST OF THE SECRETARY OF STATE, TO SUPPLY  SUCH  INFORMA-
   32  TION, BOOKS, PAPERS OR RECORDS AS MAY BE REQUIRED CONCERNING HIS, HER OR
   33  ITS  BUSINESS, BUSINESS PRACTICES OR BUSINESS METHODS, OR PROPOSED BUSI-
   34  NESS PRACTICES OR METHODS. FAILURE TO COMPLY WITH A  LAWFUL  REQUEST  OF
   35  THE  SECRETARY  SHALL  BE  A  GROUND  FOR  DENYING  AN APPLICATION FOR A
   36  LICENSE, OR FOR REVOKING, SUSPENDING, OR  FAILING  TO  RENEW  A  LICENSE
   37  ISSUED UNDER THIS ARTICLE;
   38    (C)  THE  DEPARTMENT  SHALL  HAVE  THE  POWER TO REVOKE OR SUSPEND ANY
   39  LICENSE, OR IN LIEU THEREOF TO IMPOSE A FINE NOT LESS THAN  ONE  HUNDRED
   40  DOLLARS  NOR  MORE  THAN TWO THOUSAND DOLLARS PER VIOLATION OR INSTANCE,
   41  PAYABLE TO THE DEPARTMENT, OR REPRIMAND ANY LICENSEE OR DENY AN APPLICA-
   42  TION FOR A LICENSE OR RENEWAL THEREOF UPON PROOF:
   43    (I) THAT THE APPLICANT OR LICENSEE HAS VIOLATED ANY OF THE  PROVISIONS
   44  OF  THIS  ARTICLE  OR  THE RULES AND REGULATIONS PROMULGATED PURSUANT TO
   45  THIS ARTICLE;
   46    (II) THAT THE APPLICANT OR LICENSEE HAS  PRACTICED  FRAUD,  DECEIT  OR
   47  MISREPRESENTATION;
   48    (III)  THAT THE APPLICANT OR LICENSEE HAS MADE A MATERIAL MISSTATEMENT
   49  IN THE APPLICATION FOR OR RENEWAL OF HIS OR HER LICENSE; OR
   50    (IV) THAT THE APPLICANT OR LICENSEE HAS DEMONSTRATED  INCOMPETENCE  OR
   51  UNTRUSTWORTHINESS IN HIS OR HER ACTIONS.
   52    12.  THE  DEPARTMENT SHALL BEFORE DENYING AN APPLICATION FOR A LICENSE
   53  OR BEFORE REVOKING OR SUSPENDING ANY LICENSE, OR IMPOSING  ANY  FINE  OR
   54  REPRIMAND, AND AT LEAST FIFTEEN DAYS PRIOR TO THE DATE SET FOR THE HEAR-
   55  ING, AND UPON DUE NOTICE TO THE COMPLAINANT OR OBJECTOR, NOTIFY IN WRIT-
   56  ING THE APPLICANT, OR THE HOLDER OF SUCH LICENSE, OF ANY CHARGE MADE AND
       A. 633                              4

    1  SHALL  AFFORD  SUCH  APPLICANT OR LICENSEE AN OPPORTUNITY TO BE HEARD IN
    2  PERSON OR BY COUNSEL IN REFERENCE THERETO. SUCH WRITTEN  NOTICE  MAY  BE
    3  SERVED  PERSONALLY TO THE APPLICANT OR LICENSEE, OR BY CERTIFIED MAIL TO
    4  THE LAST KNOWN BUSINESS ADDRESS OF SUCH APPLICANT OR LICENSEE.
    5    13. THE HEARING ON SUCH CHARGES SHALL BE AT SUCH TIME AND PLACE AS THE
    6  DEPARTMENT  SHALL  PRESCRIBE  AND  SHALL BE CONDUCTED BY SUCH OFFICER OR
    7  PERSON IN THE DEPARTMENT AS THE SECRETARY MAY DESIGNATE, WHO SHALL  HAVE
    8  THE  POWER TO SUBPOENA AND BRING BEFORE THE OFFICER, OR PERSON SO DESIG-
    9  NATED, ANY PERSON IN THIS STATE AND  ADMINISTER  AN  OATH  TO  AND  TAKE
   10  TESTIMONY  OF  ANY  PERSON OR CAUSE HIS OR HER DEPOSITION TO BE TAKEN. A
   11  SUBPOENA ISSUED UNDER THIS SECTION SHALL BE REGULATED BY THE CIVIL PRAC-
   12  TICE LAW AND RULES. SUCH OFFICER OR PERSON IN  THE DEPARTMENT DESIGNATED
   13  TO TAKE SUCH TESTIMONY SHALL NOT BE BOUND BY  COMMON  LAW  OR  STATUTORY
   14  RULES OF EVIDENCE OR BY TECHNICAL OR FORMAL RULES OF PROCEDURE.
   15    14.  IN  THE EVENT THAT THE DEPARTMENT SHALL DENY THE APPLICATION FOR,
   16  OR REVOKE OR SUSPEND ANY SUCH LICENSE, OR IMPOSE ANY FINE OR  REPRIMAND,
   17  ITS  DETERMINATION  SHALL  BE  IN  WRITING  AND  OFFICIALLY  SIGNED. THE
   18  ORIGINAL OF SUCH DETERMINATIONS, WHEN SO SIGNED, SHALL BE FILED  IN  THE
   19  OFFICE  OF  THE  DEPARTMENT  AND  COPIES  THEREOF SHALL BE MAILED TO THE
   20  APPLICANT OR LICENSEE AND TO THE COMPLAINANT WITHIN TWO DAYS AFTER  SUCH
   21  FILING.
   22    15.  THE  DEPARTMENT,  ACTING  BY  THE  OFFICE OR PERSON DESIGNATED TO
   23  CONDUCT THE HEARING PURSUANT TO SUBDIVISION THIRTEEN OF THIS SECTION  OR
   24  BY  SUCH  OTHER  OFFICER OR PERSON IN THE DEPARTMENT AS THE SECRETARY OF
   25  STATE MAY DESIGNATE, SHALL HAVE THE POWER TO SUSPEND THE LICENSE OF  ANY
   26  LICENSEE  WHO  HAS  BEEN  CONVICTED  IN THIS STATE OR ANY OTHER STATE OR
   27  TERRITORY OF A FELONY OR OF ANY MISDEMEANOR FOR A PERIOD  NOT  EXCEEDING
   28  THIRTY  DAYS  PENDING  A  HEARING  AND  A  DETERMINATION OF CHARGES MADE
   29  AGAINST HIM OR HER. IF SUCH HEARING IS ADJOURNED AT THE REQUEST  OF  THE
   30  LICENSEE, OR BY REASON OF ANY ACT OR OMISSION BY HIM OR HER OR ON HIS OR
   31  HER  BEHALF,  SUCH SUSPENSION MAY BE CONTINUED FOR THE ADDITIONAL PERIOD
   32  OF SUCH ADJOURNMENT.
   33    16. THE ACTION OF THE DEPARTMENT IN GRANTING OR REFUSING TO  GRANT  OR
   34  TO  RENEW  A  LICENSE UNDER THIS ARTICLE OR IN REVOKING OR SUSPENDING OR
   35  REFUSING TO REVOKE OR SUSPEND SUCH A LICENSE OR  IMPOSING  ANY  FINE  OR
   36  REPRIMAND  SHALL  BE  SUBJECT TO REVIEW BY A PROCEEDING INSTITUTED UNDER
   37  ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND  RULES  AT  THE
   38  INSTANCE  OF  THE APPLICANT FOR SUCH LICENSE, THE HOLDER OF A LICENSE SO
   39  REVOKED, SUSPENDED, FINED OR REPRIMANDED.
   40    17. FOR THE PURPOSE OF THIS ARTICLE, LICENSEES MAY BE HELD RESPONSIBLE
   41  FOR STATEMENTS, REPRESENTATIONS, PROMISES OR ACTS OF THEIR EMPLOYEES  OR
   42  THEIR  AGENTS  WITHIN  THE  SCOPE OF THEIR AUTHORITY; PROVIDED, HOWEVER,
   43  THAT LICENSEES SHALL NOT BE HELD RESPONSIBLE FOR STATEMENTS, REPRESENTA-
   44  TIONS, PROMISES OR ACTS WHICH ARE  CONTRARY  TO  INSTRUCTIONS  OR  WHICH
   45  CONSTITUTE  GROSS  NEGLIGENCE  OR  INTENTIONAL TORTS UNLESS SPECIFICALLY
   46  AUTHORIZED BY THE LICENSEE. (A) ANY PERSON,  FIRM  OR  CORPORATION  THAT
   47  OPERATES  AS A PROCESS SERVER WITHOUT A LICENSE SHALL BE REQUIRED TO PAY
   48  A CIVIL PENALTY TO THE DEPARTMENT OF NOT MORE THAN FIVE HUNDRED  DOLLARS
   49  PER ATTEMPT TO SERVE PROCESS IN VIOLATION OF THIS SECTION;
   50    (B)  IN  ADDITION TO ANY OTHER PENALTIES, IF A PERSON IS FOUND TO HAVE
   51  COMMITTED REPEATED, MULTIPLE OR PERSISTENT VIOLATIONS OF  ANY  PROVISION
   52  OF  THIS  ARTICLE,  SUCH  PERSON  MAY BE RESPONSIBLE FOR THE COST OF THE
   53  DEPARTMENT'S INVESTIGATION.
   54    18. (A) AS A CONDITION OF OBTAINING A LICENSE PURSUANT TO  THIS  ARTI-
   55  CLE,  EVERY  PROCESS  SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND
   56  EMPLOYS BETWEEN ONE AND FOUR INDIVIDUALS ENGAGED IN THE SERVICE OF PROC-
       A. 633                              5

    1  ESS SHALL OBTAIN AND CONTINUE IN FULL FORCE AND EFFECT A BOND,  CONTRACT
    2  OF INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF TEN THOU-
    3  SAND DOLLARS TO BE FILED WITH THE SECRETARY;
    4    (B)  AS  A  CONDITION TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
    5  EVERY PROCESS SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS
    6  BETWEEN FIVE AND NINE INDIVIDUALS ENGAGED  IN  THE  SERVICE  OF  PROCESS
    7  SHALL  OBTAIN  AND CONTINUE IN FULL FORCE AND EFFECT A BOND, CONTRACT OF
    8  INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF  TWENTY-FIVE
    9  THOUSAND  DOLLARS  TO  BE  FILED  WITH  THE  SECRETARY AS A CONDITION TO
   10  OBTAINING A LICENSE PURSUANT  TO  THIS  ARTICLE,  EVERY  PROCESS  SERVER
   11  APPLICANT  WHO  IS  APPLYING  FOR  A LICENSE AND EMPLOYS BETWEEN TEN AND
   12  TWENTY INDIVIDUALS ENGAGED IN THE SERVICE OF PROCESS  SHALL  OBTAIN  AND
   13  CONTINUE  IN  FULL  FORCE  AND  EFFECT A BOND, CONTRACT OF INDEMNITY, OR
   14  IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF FIFTY THOUSAND DOLLARS  TO
   15  BE FILED WITH THE SECRETARY;
   16    (C)  AS  A  CONDITION TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
   17  EVERY PROCESS APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS TWENTY
   18  OR MORE INDIVIDUALS ENGAGED IN THE SERVICE OF PROCESS SHALL  OBTAIN  AND
   19  CONTINUE  IN  FULL  FORCE  AND  EFFECT A BOND, CONTRACT OF INDEMNITY, OR
   20  IRREVOCABLE LETTER OF CREDIT, IN THE  AMOUNT  OF  SEVENTY-FIVE  THOUSAND
   21  DOLLARS TO BE FILED WITH THE SECRETARY;
   22    (D)  SUCH SURETY BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE LETTER OF
   23  CREDIT SHALL BE CONDITIONED THAT THE APPLICANT  WILL  COMPLY  WITH  THIS
   24  ARTICLE, ARTICLE TWENTY-NINE-H, AND ARTICLE TWENTY-NINE-HH OF THIS CHAP-
   25  TER  AND PAY ALL CIVIL PENALTIES, FINES, OR OTHER OBLIGATIONS IMPOSED BY
   26  THE SECRETARY OR A COURT OF LAW,  INVESTIGATORY  COSTS  REQUIRED  TO  BE
   27  PAID,  OR ANY FINAL JUDGMENT AGAINST THE LICENSEE PURSUANT TO SUCH ARTI-
   28  CLES;
   29    (E) THE TOTAL LIABILITY IMPOSED ON THE SURETY BOND UNDER THIS  SECTION
   30  FOR  ALL BREACHES OF THE BOND CONDITION IS LIMITED TO THE FACE AMOUNT OF
   31  THE BOND. SUCH LIABILITY IS LIMITED TO THE  AMOUNT  OF  THE  PENALTY  OR
   32  INVESTIGATORY COSTS. IN NO EVENT WILL THE SURETY ON A BOND BE LIABLE FOR
   33  TOTAL  CLAIMS  IN EXCESS OF THE BOND AMOUNT, REGARDLESS OF THE NUMBER OR
   34  NATURE OF CLAIMS MADE AGAINST THE BOND OR THE NUMBER OF YEARS  THE  BOND
   35  REMAINED IN FORCE;
   36    (F)  ANY SURETY ISSUING A BOND PURSUANT TO THIS SECTION AND ANY LICEN-
   37  SEE SHALL BE REQUIRED TO PROVIDE THIRTY DAYS  NOTICE  TO  THE  SECRETARY
   38  PRIOR  TO THE EFFECTIVE DATE OF CANCELLATION OF THE BOND. THE FAILURE TO
   39  MAINTAIN SUCH A BOND SHALL OPERATE TO REVOKE THE LICENSE OF THE  PROCESS
   40  SERVER UPON NOTICE AND HEARING.
   41    19. (A) WHEREVER THERE SHALL BE A VIOLATION OF THIS ARTICLE, AN APPLI-
   42  CATION  MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
   43  THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
   44  SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
   45  DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE  CONTIN-
   46  UANCE  OF  SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF
   47  THE COURT OR JUSTICE THAT THE DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS
   48  SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
   49  AND  RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT ANY
   50  PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED  THEREBY.  IN  ANY  SUCH
   51  PROCEEDING,  THE  COURT  MAY  MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
   52  PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE
   53  HUNDRED  THREE  OF THE CIVIL PRACTICE LAW AND RULES, AND DIRECT RESTITU-
   54  TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
   55  SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT LESS
   56  THAN ONE HUNDRED DOLLARS NOR MORE THAN TEN  THOUSAND  DOLLARS  FOR  EACH
       A. 633                              6

    1  VIOLATION.  IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTOR-
    2  NEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF  THE
    3  RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
    4  TICE LAW AND RULES;
    5    (B) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
    6  ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
    7  FUL  ACT  OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR
    8  ONE THOUSAND DOLLARS, WHICHEVER IS GREATER, OR BOTH  SUCH  ACTIONS.  THE
    9  COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT
   10  NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TEN THOUSAND DOLLARS,
   11  IF THE COURT FINDS THE DEFENDANT WILLFULLY VIOLATED THIS ARTICLE. IN THE
   12  CASE  OF  ANY  SUCCESSFUL ACTION TO ENFORCE THE FOREGOING LIABILITY, THE
   13  COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER WITH REASONABLE  ATTOR-
   14  NEY'S FEES.
   15    20.  (A)  THIS  ARTICLE  SHALL APPLY TO ALL PROCESS SERVERS, PROVIDED,
   16  HOWEVER, THAT A POLITICAL SUBDIVISION MAY IMPOSE OTHER REQUIREMENTS THAT
   17  ARE IN ADDITION TO THE MINIMUM STANDARDS SET FORTH IN THIS ARTICLE.
   18    (B) THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TO LIMIT  IN
   19  ANY WAY THE AUTHORITY OF A POLITICAL SUBDIVISION TO ENACT, IMPLEMENT AND
   20  CONTINUE TO ENFORCE LOCAL LAWS AND REGULATIONS GOVERNING PROCESS SERVERS
   21  THAT  WERE  IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, OR TO
   22  ENACT, IMPLEMENT AND ENFORCE ANY AMENDMENTS THERETO AFTER THE  EFFECTIVE
   23  DATE OF THIS SECTION.
   24    S 3. Subdivision (e) of rule 3015 of the civil practice law and rules,
   25  as  amended  by  chapter  458 of the laws of 2012, is amended to read as
   26  follows:
   27    (e) License to do business. Where  the  plaintiff's  cause  of  action
   28  against  a  consumer  arises  from the plaintiff's conduct of a business
   29  which is required by state or local law to be licensed by the department
   30  of consumer affairs of the city of New York, the Suffolk county  depart-
   31  ment  of consumer affairs, the Westchester county department of consumer
   32  affairs/weight-measures, the county of Rockland, the  county  of  Putnam
   33  [or], the Nassau county department of consumer affairs OR THE DEPARTMENT
   34  OF  STATE PURSUANT TO SECTION EIGHTY-NINE-W OF THE GENERAL BUSINESS LAW,
   35  the complaint shall allege, as part of the cause of action, that  plain-
   36  tiff  was  duly  licensed  at  the  time  of services rendered and shall
   37  contain the name and number, if any, of such  license  and  the  govern-
   38  mental  agency  which issued such license; provided, however, that where
   39  the plaintiff does not have a license at the commencement of the  action
   40  the  plaintiff  may,  subject  to  the provisions of rule thirty hundred
   41  twenty-five of this article, amend  the  complaint  with  the  name  and
   42  number  of  an after-acquired license or the previously held license, as
   43  the case may be, and the name of the governmental  agency  which  issued
   44  such license or move for leave to amend the complaint in accordance with
   45  such provisions. The failure of the plaintiff to comply with this subdi-
   46  vision will permit the defendant to move for dismissal pursuant to para-
   47  graph seven of subdivision (a) of rule thirty-two hundred eleven of this
   48  chapter.
   49    S 4. This act shall take effect on the one hundred eightieth day after
   50  it shall have become a law; provided, however, that effective immediate-
   51  ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
   52  necessary for the implementation of this act on its effective  date  are
   53  authorized  and  directed  to  be  made  and completed on or before such
   54  effective date.
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