Chapter 1 - LICENSE ENFORCEMENT

Section 20-101

Section 20-101

  § 20-101 Legislative intent. The council finds that for the protection
and  relief  of  the  public  from  deceptive, unfair and unconscionable
practices, for the maintenance of standards of  integrity,  honesty  and
fair  dealing  among  persons  and  organizations  engaging  in licensed
activities, for the protection of the health and safety of the people of
New York city and for other purposes requisite to promoting the  general
welfare,  licensing by the department of consumer affairs is a necessary
and proper mode of regulation with respect to certain trades, businesses
and industries. The council finds further that, in order to  secure  the
above-mentioned  purposes,  and  generally to carry out responsibilities
for supervising and regulating licensed activities,  trades,  businesses
and  industries,  the  commissioner of consumer affairs requires powers,
remedies and sanctions which  are  equitable,  flexible  and  efficient.
Finally,  the  council finds that sanctions and penalties applied by the
commissioner and by the courts for the violation of laws and regulations
by  individuals  and  organizations   engaging   in   various   licensed
activities,  trades,  businesses  and  industries, must be sufficient to
achieve these above-mentioned purposes of licensing.

Section 20-102

Section 20-102

  § 20-102 Definitions. Wherever used in this title:
  a. "Commissioner" shall mean the commissioner of consumer affairs.
  b. "Department" shall mean the department of consumer affairs.
  c. "License" shall mean an authorization by the department of consumer
affairs  to  carry  on various activities within its jurisdiction, which
may take the form of a license, permit, registration,  certification  or
such other form as is designated under law, regulation or rule.
  d.  "Organization"  shall  mean  a  business entity, including but not
limited to  a  corporation,  trust,  estate,  partnership,  cooperative,
association, firm, club or society.
  e. "Person" shall mean a natural person or an organization.
  f.  "Trade  name"  shall mean that name under which an organization or
person solicits,  engages  in,  conducts  or  transacts  a  business  or
activity.

Section 20-103

Section 20-103

  §  20-103  Construction of this chapter and chapter two of this title.
The provisions of this chapter and chapter two of this  title  shall  be
liberally  construed  in  accordance with the legislative declaration of
the city council set forth in section 20-101.

Section 20-104

Section 20-104

  §  20-104 Powers of the commissioner with respect to licensing. a. The
commissioner  shall  have  cognizance  and  control  of  the   granting,
issuance,  transferring,  renewal,  denial,  revocation,  suspension and
cancellation of all licenses issued under  chapter  two  and  under  all
other  laws  conferring such powers upon him or her. The commissioner or
the commissioner's designee shall collect all fees for all such licenses
and permits and shall otherwise enforce the provisions of chapter two.
  b. The commissioner shall, as  he  or  she  determines  necessary  and
appropriate, promulgate, amend and rescind regulations and rules:
  1. to carry out the powers and duties of the department;
  2.   to  prevent  and  remedy  fraud,  misrepresentation,  deceit  and
unconscionable dealing, and to promote fair  trade  practices  by  those
engaging in licensed activities;
  3.  to  require  adequate  disclosure  by  those  engaging in licensed
activities of both the terms and conditions  under  which  they  perform
licensed  activities,  adequate  disclosure  of  the  true names or true
corporate names of licensees,  and  adequate  disclosure  of  applicable
local, state and federal law pertinent to consumers' interests regarding
the conduct of activities licensed under chapter two;
  4.  to  require  that  licensees  keep  such  records as he or she may
determine are necessary or useful  for  carrying  out  the  purposes  of
chapter two and, except as specifically set forth in chapter two, retain
them for three years;
  5.  to  ensure  that all persons and organizations licensed under this
title have made appropriate financial disclosure, and that the  premises
complies with all legal requirements necessary to engage in the licensed
activity;
  6. with respect to licensed activities, to protect the health, safety,
convenience and welfare of the general public; and
  7.  to  ensure  that  those  engaging  in  licensed  activities do not
discriminate against any person on the basis of age, sex,  race,  color,
national  origin,  creed  or  religion  in  violation  of city, state or
federal laws.
  c.  The  commissioner  shall  compile  all   regulations   and   rules
promulgated by the department and maintain a copy thereof, available for
public  inspection  at his or her principal office at such times as that
office shall be open for business.  A  record  of  each  license  issued
indicating  its  kind  and  class,  the license number, the fee received
therefor and such other records as the commissioner may require shall be
kept by the department.
  d. The commissioner or the commissioner's designee shall be authorized
to conduct investigations, to issue subpoenas, to receive  evidence,  to
hear  complaints  regarding  activities for which a license is or may be
required, to take depositions on due notice, to  serve  interrogatories,
to  hold  public and private hearings upon due notice, to take testimony
and to promulgate, amend and modify procedures and  practices  governing
such proceedings.
  e.  (1)  The  commissioner  shall  be  authorized, upon due notice and
hearing, to suspend, revoke or cancel any license issued by him  or  her
in  accordance  with  the  provisions  of  chapter  two and to impose or
institute fines or civil penalties for the violation of (i) any  of  the
provisions  of  chapter  two  of  this  title  and regulations and rules
promulgated under chapter  two  of  this  title  and  (ii)  any  of  the
provisions  of  any  other  law,  rule or regulation, the enforcement of
which is within the jurisdiction of the  department  including  but  not
limited  to  subchapter  one of chapter five of this title (the consumer
protection  law)   subchapter   two   of   chapter   five   (the   truth
in-pricing-law); provided that such violation is committed in the course

of  and  is  related to the conduct of the business, trade or occupation
which is required to be licensed pursuant to chapter two of this  title.
Except  to  the  extent  that  dollar  limits are otherwise specifically
provided  such  fines  or  civil penalties shall not exceed five hundred
dollars for each violation.
  (2) The commissioner may arrange for the redress of injuries caused by
such violations, and may  otherwise  provide  for  compliance  with  the
provisions and purposes of chapter two of this title.
  (3)   The   commissioner  or  the  commissioner's  designee  shall  be
authorized to suspend the license of any person pending payment of  such
fine  or civil penalty or pending compliance with any other lawful order
of the department.
  (4) The commissioner shall be authorized to impose  a  fine  or  civil
penalty  or  to  suspend  a license or both for a failure to appear at a
hearing at the department after due notice of such hearing. If a license
has been suspended, it shall be returned  to  the  department  forthwith
upon  receipt  of  the  order  of  suspension.  Failure to surrender the
license shall be grounds for a fine or civil penalty  or  revocation  of
the license.
  (5)  Any  of  the  remedies  provided  for in this section shall be in
addition to any other remedies provided under  any  other  provision  of
law.
  f.  The  commissioner,  upon  due notice and hearing, may require that
persons licensed under chapter two of  this  title  who  have  committed
repeated,  multiple or persistent violations of chapter two or any other
law,  rule  or  regulation  the  enforcement  of  which  is  within  the
jurisdiction  of the department, conspicuously display at their place of
business and in advertisements a notice (of a form, content and size  to
be  specified  by  the  commissioner), which shall describe the person's
record of such violations; provided that, for each time such display  is
required, the commissioner may require that such notice be displayed for
not less than ten nor more than one hundred days.
  g. The commissioner may refuse to issue or renew any license issued in
accordance  with  the  provisions  of  chapter two of this title and may
suspend or revoke any such license, after due notice and opportunity  to
be  heard,  upon  the  occurrence  of  any  one or more of the following
conditions:
  1. Two  or  more  judgments  within  a  two-year  period  against  the
applicant  or licensee for theft of identity as defined in section three
hundred eighty-s of the general business law; or
  2. One criminal conviction against the applicant or licensee for  acts
of  identity  theft  or  unlawful  possession of personal identification
information as defined in article one hundred ninety of the  penal  law;
or
  3.  Two  or  more criminal convictions within a two-year period of any
employees or associates  of  the  applicant  or  licensee  for  acts  of
identity   theft  or  unlawful  possession  of  personal  identification
information as defined in article one hundred ninety of  the  penal  law
that  are  committed  with  the  use  of  the  applicant's or licensee's
equipment, data, technology, or other similar resource. It shall  be  an
affirmative defense that a applicant or licensee did not have reasonable
grounds to believe the proscribed acts were taking place with the use of
the licensee's equipment, data, technology, or other similar resource or
that  the  proscribed  acts  were  not  taking place with the use of the
applicant's or licensee's equipment, data, technology, or other  similar
resource.

Section 20-105

Section 20-105

  §  20-105  Additional  powers  of  the  commissioner  with  respect to
unlicensed activities. a. It shall be unlawful for any  person  required
to  be licensed pursuant to the provisions of chapter two or pursuant to
provisions of state law enforced by the  department  to  engage  in  any
trade, business or activity for which a license is required without such
license.
  b.  In  addition  to  the  enforcement procedures set forth in section
20-106 of this chapter, the commissioner  after  notice  and  a  hearing
shall be authorized:
  1.  to  impose  fines upon any person in violation of subdivision a of
this section of one hundred dollars per violation per day for  each  and
every day during which such person violates such subdivision.
  2.  to  order any person in violation of subdivision a of this section
immediately to discontinue such activity at the premises on  which  such
activity is occurring.
  3.  to order that such premises on which such activity is occurring be
sealed,  provided  that  such  premises  are  primarily  used  for  such
activity.
  4.  to  order  that any devices, items or goods sold, offered for sale
available for public use or utilized in the operation of a business  and
relating  to  such  activity for which a license is required but has not
been obtained pursuant  to  the  provisions  of  chapter  two  shall  be
removed, sealed or otherwise made inoperable.
  c.  Orders  of  the  commissioner  issued pursuant to this subdivision
shall be posted at the premises on which unlicensed activity  occurs  in
violation of this section.
  d.  Orders of the commissioner issued pursuant to paragraph two, three
or four of subdivision b of this section shall be stayed with respect to
any person who, prior to service of the notice provided in subdivision b
of this section, had submitted a full and complete application in proper
form and accompanied by the requisite fee for a license or  the  renewal
of a license while such application is pending.
  e. Ten days after the posting of an order issued pursuant to paragraph
two, three or four of subdivision b of this section and upon the written
directive  of the commissioner, officers and employees of the department
and officers of the New York city police department  are  authorized  to
act upon and enforce such orders.
  f.  Any  devices, items or goods removed pursuant to the provisions of
subdivision b of this section shall be stored  in  a  garage,  pound  or
other place of safety and the owner or other person lawfully entitled to
the  possession  of  such  devices,  items, or goods may be charged with
reasonable costs for removal and storage payable prior to the release of
such devices, items or goods to such owner or such other person.
  g. The commissioner shall order that any  premises  which  are  sealed
pursuant  to  this section shall be unsealed and that any devices, items
or goods removed, sealed or otherwise made inoperable pursuant  to  this
section shall be released, unsealed or made operable upon:
  1.  payment  of  all  outstanding  fines  and all reasonable costs for
removal and storage, and
  2. presentation of proof that a license has  been  obtained  for  such
activity or, if such person or premises are for any reason ineligible to
obtain  a  license,  proof  satisfactory  to  the commissioner that such
premises, devices, items or goods will not be used in violation of  this
section.
  h.  It shall be a misdemeanor for any person to remove the seal on any
premises or remove the seal or make operable any devices, items or goods
sealed or otherwise made inoperable in accordance with an order  of  the
commissioner.

  i. The owner or other person lawfully entitled to reclaim the devices,
items  or  goods  removed  pursuant  to  this section shall reclaim such
devices, items or goods. If such owner or such  other  person  does  not
reclaim  such  devices,  items  or  goods  within  ninety  days of their
removal,  such  devices,  items  or goods shall be subject to forfeiture
upon notice and judicial determination in accordance with provisions  of
law.  Upon  forfeiture  the department shall, upon a public notice of at
least five days, sell such forfeited devices, items or goods  at  public
sale.  The  net  proceeds  of  such  sale, after deduction of the lawful
expenses incurred, shall be paid into the general fund of the city.
  j. In the event that any removal made pursuant to this  section  shall
include  any  perishable  items,  goods or food products which cannot be
retained in custody without such items, goods or food products  becoming
unwholesome,  putrid,  decomposed  or  unfit  in  any  way,  they may be
delivered to the commissioner of health for disposition pursuant to  the
provisions of section 17-323 of this code.
  k.  The  provisions of this section shall not be construed to apply to
general  vendors  required  to  be  licensed  pursuant   to   subchapter
twenty-seven of chapter two of this title.

Section 20-106

Section 20-106

  §  20-106  Judicial  enforcement.  a. Except as otherwise specifically
provided in chapter two of this title,  or  in  subdivision  b  of  this
section,  any  person,  whether  or not he or she holds a license issued
under chapter two, who violates any provision  of  chapter  two  or  any
regulation  or rule promulgated under it shall, upon conviction thereof,
be punished for each violation by a fine of not  less  than  twenty-five
dollars  nor  more  than  five  hundred  dollars, or by imprisonment not
exceeding fifteen days, or both; and any such person  shall  be  subject
also  to  a  civil  penalty  in  the sum of one hundred dollars for each
violation, to be recovered in a civil action.
  b. Any person who engages without a license therefor  in  an  activity
for  which a license is required by any provision of chapter two, shall,
upon conviction thereof, be subject to the following sanctions:
  1. If he or she has never held a license for such activity, he or  she
shall  be  subject  to  a fine of not less than twenty-five dollars, nor
more than five hundred dollars, or by imprisonment not exceeding fifteen
days, or both; and any such person shall be subject also to the  payment
of  a  civil  penalty  in the sum of the greater of twice the applicable
license fee or one hundred dollars, to be recovered in a civil action.
  2. If he or she has never held a license for such  activity,  and  has
been  convicted  once previously for engaging in such activity without a
license, or if he or she has held such license and his  or  her  license
has  lapsed  prior  to  such  person's  perfecting  an application for a
renewal, he or she shall be subject to a  fine  of  not  less  than  one
hundred  dollars  nor more than one thousand dollars, or by imprisonment
not exceeding thirty days, or both; and he or she shall be subject  also
to  civil penalty in the sum of one thousand dollars, to be recovered in
a civil action.
  3. If such person has held such a license, but his or her license  has
been  suspended  or  revoked,  or  he  or  she has twice previously been
convicted of engaging in such activity without  a  license,  he  or  she
shall be subject to a fine of not less than two hundred dollars nor more
than  two thousand dollars, or by imprisonment not exceeding sixty days,
or both; and he or she shall be subject also to a civil penalty  in  the
sum of two thousand dollars, to be recovered in a civil action.
  c.  Every  manager or proprietor of a business required to be licensed
under chapter two who consents to, causes or  allows  that  business  to
operate  without  a  license  and  every  person  aiding such unlicensed
business and every owner or lessee of any building,  part  of  building,
grounds,  room  or  place,  who  leases  or  lets  the  premises for the
operation of any unlicensed business or assents  that  the  premises  be
used  for  any  such purpose, is in violation of this title and shall be
subject to a penalty of one hundred dollars per day for every day during
which  the  unlicensed  business  operates.  This   penalty   shall   be
prosecuted, sued for and recovered in the name of the city.
  d.  The  corporation  counsel  is  authorized  to  bring an injunction
proceeding to restrain or enjoin any violation of this title.

Section 20-107

Section 20-107

  * § 20-107 Applications; filing fee; license fee. All applications for
licenses  shall  be  made  to  the  commissioner  or  the commissioner's
designee in such form and detail  as  shall  be  prescribed.  Except  as
specifically  provided  in  chapter two, every application shall include
the license fee for the full license term. If the license is not issued,
the lesser of fifty dollars or one-half of  the  amount  of  the  annual
license  fee  shall  be  retained  by the department as a non-returnable
filing fee. In the event a license is issued  for  less  than  the  full
license  term,  the applicable fee shall be decreased proportionately to
the nearest half year, except that in no case shall the fee be less than
the fee for one-half year. Where a two year license is surrendered for a
reason other than suspension or revocation and less than one year of the
license term has expired, the licensee may apply  for  a  refund  of  an
amount equal to one year's license fee. Except as otherwise specifically
provided  for  in  chapter  two,  reference to fees, license fees or any
other word of similar import shall be deemed to be the license  fee  for
one  year.  Notwithstanding  any inconsistent provision of this section,
whenever the commissioner increases or decreases the term of a  type  of
license  pursuant  to  section  20-108 of this chapter, the fee for such
license shall be increased or decreased proportionately and  the  amount
of  refund  due  upon surrender of such license before the expiration of
the term for a reason other  than  suspension  or  revocation  shall  be
prorated to the unexpired term.
  * NB Effective until April 16, 2014
  * §  20-107 Applications; filing fee; license fee. a. All applications
for licenses shall be made to the  commissioner  or  the  commissioner's
designee in such form and detail as shall be prescribed.
  b.  Every  application  for  a  license  or the renewal of an existing
license shall provide an opportunity for the applicant to  indicate  the
language  in which he or she would prefer that inspections in connection
with such license be conducted. Nothing  in  this  subdivision  nor  any
failure  to  comply  with  such  preference  shall be construed so as to
create a  cause  of  action  or  constitute  a  defense  in  any  legal,
administrative, or other proceeding.
  c.  Except  as specifically provided in chapter two, every application
shall include the license fee for the full license term. If the  license
is  not issued, the lesser of fifty dollars or one-half of the amount of
the annual license  fee  shall  be  retained  by  the  department  as  a
non-returnable  filing  fee.  In  the event a license is issued for less
than the full license  term,  the  applicable  fee  shall  be  decreased
proportionately  to  the nearest half year, except that in no case shall
the fee be less than the fee for one-half year. Where a two year license
is surrendered for a reason other than suspension or revocation and less
than one year of the license term has expired, the  licensee  may  apply
for  a  refund  of  an amount equal to one year's license fee. Except as
otherwise specifically provided for in chapter two, reference  to  fees,
license  fees  or any other word of similar import shall be deemed to be
the license fee for one year. Notwithstanding any inconsistent provision
of this section, whenever the commissioner increases  or  decreases  the
term  of  a  type of license pursuant to section 20-108 of this chapter,
the fee for such license shall be increased or decreased proportionately
and the amount of refund due upon surrender of such license  before  the
expiration  of the term for a reason other than suspension or revocation
shall be prorated to the unexpired term.
  * NB Effective April 16, 2014

Section 20-108

Section 20-108

  §  20-108  License  terms.  a.  The  commissioner  shall  establish by
regulation the expiration date of licenses issued  pursuant  to  chapter
two.
  b.  Licenses  issued  pursuant  to chapter two shall be for a two-year
term  unless  otherwise  specifically  provided  for  in  chapter   two;
provided, however, that whenever the commissioner changes the expiration
date  of a type of license pursuant to subdivision a of this section, he
or she may also increase or decrease the term of such type of license by
rule to the extent necessary to effectuate the change.

Section 20-109

Section 20-109

  § 20-109 Transferability. No license issued under chapter two shall be
assignable or transferable unless otherwise specifically provided by law
or regulation or rule issued by the commissioner.

Section 20-110

Section 20-110

  §   20-110   Change  of  corporate  ownership.  Where  any  person  or
organization becomes the beneficial owner of ten percent or more of  the
stock of an organization to which a license has been granted pursuant to
chapter  two,  if such person or organization previously did not hold at
least a ten percent interest, such license shall immediately become void
unless prior written approval of the commissioner or the  commissioner's
designee is obtained.

Section 20-111

Section 20-111

  § 20-111 Change in a partnership. Any license issued under chapter two
shall  immediately  become  void upon the addition or termination of any
general partner or upon the dissolution of a  partnership  unless  prior
written  approval  of the commissioner or the commissioner's designee is
obtained.

Section 20-112

Section 20-112

  § 20-112 Address of licensed activity. Except as specifically provided
in  chapter  two,  a  license  shall  be  valid  only  for  the location
designated upon the application therefor, except in the case of licenses
issued for activities which in their nature are carried out at large and
not at a fixed place of business. No license shall be  issued  for  more
than  one  location.  Licensees  shall, at least ten days prior thereto,
notify the commissioner or the commissioner's designee by registered  or
certified  mail,  or  personal  service, of any change of address of the
licensed premises or of the residence of the licensee.

Section 20-113

Section 20-113

  § 20-113 Trade name. A license issued under chapter two shall be valid
only   for  activities  conducted  under  the  name  of  the  person  or
organization to whom such license was issued or  under  the  trade  name
stated  in  the  application  therefor;  if a licensed activity is to be
conducted under a trade name, the  application  must  state  that  trade
name.  No  license  shall be issued for more than one trade name, and no
licensed activity may be carried out under  more  than  one  such  name;
provided,  however, that if a person or organization was engaged in bona
fide licensed activities under more than one  such  trade  name  or  was
issued  a  license  to  conduct  licensed activities under more than one
trade name prior to June fifth, nineteen hundred seventy-three, a single
license shall be issued for such trade names. Licensees shall notify the
commissioner or the commissioner's designee of any change of trade  name
at  least  ten  days  before  such change becomes effective, and no such
change may  take  place  without  the  prior  written  approval  of  the
commissioner or the commissioner's designee.

Section 20-114

Section 20-114

  §  20-114  Inspection; display of license. a. All licensed vehicles or
places of business shall be regularly  inspected,  and  reports  thereof
shall be made to the commissioner.
  b.  All licensees shall conspicuously post on their premises, licenses
issued under chapter two and said licenses shall be  accessible  at  all
times for inspection by any interested person. Licensees having no fixed
place  of  business shall exhibit their licenses upon the request of any
interested person.

Section 20-115

Section 20-115

  § 20-115 Bonds. Except as specifically provided in chapter two, a bond
may  be required for any licensed activity in a form and amount approved
by the commissioner for the due observance of the provisions of  chapter
two  and  the  laws,  regulations  and  rules  governing  the conduct of
licensed activities. The amount of the bond shall be established by  the
commissioner  after  a public hearing, five-day notice of which shall be
published in the City Record.

Section 20-116

Section 20-116

  §  20-116  Advertising.  a.  Any  person required to be licensed under
chapter two or pursuant to provisions  of  state  law  enforced  by  the
department  to carry on a trade, occupation or business activity, who is
not so licensed may not advertise the availability of goods and services
related to the  carrying  on  of  such  trade,  occupation  or  business
activity   in   any  print  publication  or  broadcast  media  having  a
circulation or audience within the city.
  b. The commissioner after notice and hearing shall  be  authorized  to
impose   civil   penalties  upon  any  person  found  to  have  violated
subdivision a of this section. Such penalties shall be levied  for  each
broadcast of such advertisement and shall be not less than fifty dollars
nor  more  than  two  hundred  fifty  dollars  for  each violation. Such
penalties for printed advertisements shall be determined  based  on  the
period  of  time  the  publication  in  which  the advertisement appears
remains current. The current period shall be  determined  as  that  time
when  a  publication is initially offered for sale until the period when
the next dated publication is offered for sale. In no  case  shall  this
period be less than twenty-four hours. If the current period is:
  daily, such penalty shall be not less than fifty dollars nor more than
one hundred dollars per day;
  weekly,  such penalty shall be not less than two hundred fifty dollars
nor more than three hundred fifty dollars per week;
  greater than one week and not more than one month, such penalty  shall
be  not less than three hundred fifty dollars nor more than five hundred
dollars;
  greater than one month, such penalty  shall  be  not  less  than  five
hundred dollars nor more than one thousand dollars.
  Such  civil  penalties  may  be recovered in a civil action before any
court having jurisdiction of such actions.
  c. The commissioner shall promulgate regulations  requiring  that  any
person  required  to  be  licensed  under  this  title  or  pursuant  to
provisions of state law enforced by the department shall  state  in  all
print  advertising  with  respect  to such licensed activity the license
number, and that the activity is licensed by the department.

Section 20-117.

Section 20-117.

  §   20-117.  Licensee  disclosure  of  security  breach;  notification
requirements.
  a. Definitions. For the purposes of this section,
  1. The term "personal identifying information" shall mean any person's
date  of  birth,  social  security  number,  driver's  license   number,
non-driver  photo identification card number, financial services account
number or code, savings account number or code, checking account  number
or code, brokerage account number or code, credit card account number or
code,  debit  card  number  or  code, automated teller machine number or
code, personal identification number,  mother's  maiden  name,  computer
system password, electronic signature or unique biometric data that is a
fingerprint, voice print, retinal image or iris image of another person.
This  term  shall  apply to all such data, notwithstanding the method by
which such information is maintained.
  2. The term "breach of security" shall mean unauthorized possession of
personal  identifying  information  that   compromises   the   security,
confidentiality   or  integrity  of  such  information.  Good  faith  or
inadvertent possession of any personal  identifying  information  by  an
employee  or  agent  of  the licensee for the legitimate purposes of the
business of the licensee shall not constitute a breach of security.
  b. Any person required to be licensed pursuant to chapter two of  this
title,   or  pursuant  to  provisions  of  state  law  enforced  by  the
department, that owns or leases data that includes personal  identifying
information  and  any person required to be licensed pursuant to chapter
two of this title, or pursuant to provisions of state  law  enforced  by
the  department,  that  maintains  but  does  not own data that includes
personal identifying  information  shall  immediately  disclose  to  the
department and to the police department any breach of security following
discovery  by  a  supervisor  or manager, or following notification to a
supervisor or manager, of  such  breach  if  such  personal  identifying
information   is  reasonably  believed  to  have  been  acquired  by  an
unauthorized person.
  c.  Subsequent  to  compliance  with  the  provisions  set  forth   in
subdivision  b  of  this  section,  any  person  required to be licensed
pursuant to chapter two of this title,  or  pursuant  to  provisions  of
state  law  enforced  by  the  department, that owns or leases data that
includes personal identifying information shall disclose, in  accordance
with  the  procedures  set  forth  in subdivision e of this section, any
breach of security following discovery by a supervisor  or  manager,  or
following notification to a supervisor or manager, of such breach to any
person  whose  personal  identifying  information  was, or is reasonably
believed to have been, acquired by an unauthorized person.
  d.  Subsequent  to  compliance  with  the  provisions  set  forth   in
subdivision  b  of  this  section,  any  person  required to be licensed
pursuant to chapter two of this title,  or  pursuant  to  provisions  of
state  law  enforced  by the department, that maintains but does not own
data that includes personal identifying information shall  disclose,  in
accordance  with  the  procedures  set  forth  in  subdivision e of this
section, any breach of security following discovery by a  supervisor  or
manager,  or  following notification to a supervisor or manager, of such
breach to the owner, lessor or licensor of  the  data  if  the  personal
identifying  information  was,  or  is reasonably believed to have been,
acquired by an unauthorized person.
  e. The disclosures required by subdivisions c and d  of  this  section
shall  be  made  as soon as practicable by a method reasonable under the
circumstances.  Provided  said  method  is  not  inconsistent  with  the
legitimate  needs  of  law  enforcement  or  any  other investigative or
protective measures necessary to restore the reasonable integrity of the

data system, disclosure shall be made by at least one of  the  following
means:
  1.  Written notice to the individual at his or her last known address;
or
  2. Verbal notification to the individual by telephonic  communication;
or
  3.  Electronic notification to the individual at his or her last known
e-mail address.
  f. Should disclosure pursuant to  paragraphs  one,  two  or  three  of
subdivision  e be impracticable or inappropriate given the circumstances
of the breach and the identity of the victim, such disclosure  shall  be
made  by a mechanism of the licensee's choosing, provided such mechanism
is reasonably targeted to the individual  in  a  manner  that  does  not
further  compromise  the integrity of the personal information disclosed
and has been approved, or is in compliance with  rules  promulgated,  by
the Commissioner.
  g.  Any person required to be licensed pursuant to chapter two of this
title,  or  pursuant  to  provisions  of  state  law  enforced  by   the
department,  that  discards  any  records  of  an  individual's personal
identifying information shall do so in  a  manner  intended  to  prevent
retrieval of the information contained therein or thereon.
  h.  Any person required to be licensed pursuant to chapter two of this
title,  or  pursuant  to  provisions  of  state  law  enforced  by   the
department,  who  shall  violate  any of the provisions of this section,
upon conviction thereof, shall be punishable by a fine of not more  than
five  hundred  dollars ($500) and shall be liable for a civil penalty of
one hundred dollars ($100) for each violation.

Section 20-118

Section 20-118

  §  20-118  Notifications  regarding  identity theft. Any person, firm,
partnership, corporation or association required to  be  licensed  under
chapter  two,  or  pursuant  to  provisions of state law enforced by the
department, shall immediately notify the department upon the  occurrence
of  a  judgment  against  such person, firm, partnership, corporation or
association for theft of identity; a conviction of  such  person,  firm,
partnership,  corporation  or  association  of  an  offense specified in
subdivision g of section 20-104 of this chapter; or a conviction of  the
person's,   firm's,   partnership's,   corporation's   or  association's
employees  or  associates  for  acts  of  identity  theft  or   unlawful
possession  of personal identification information as defined in article
one hundred ninety of the penal law that are committed with the  use  of
the  person's,  firm's,  partnership's,  corporation's  or association's
equipment, data, technology, or other similar resource.