Subchapter 22 - HOME IMPROVEMENT BUSINESS

Section 20-385

Section 20-385

  §  20-385  Legislative  declaration.  It  is  the  purpose of the city
council in  enacting  this  subchapter  to  safeguard  and  protect  the
homeowner  against  abuses and fraudulent practices by licensing persons
engaged in the home improvement, remodeling and repair business.

Section 20-386

Section 20-386

  § 20-386 Definitions. 1. "Persons" means an individual, firm, company,
salesperson, partnership or corporation, trade group or association.
  2.  "Home  improvement"  means  the construction, repair, replacement,
remodeling,   alteration,   conversion,   rehabilitation,    renovation,
modernization, improvement, or addition to any land or building, or that
portion  thereof  which is used or designed to be used as a residence or
dwelling place and shall include but not be limited to the construction,
erection, replacement, or  improvement  of  driveways,  swimming  pools,
terraces,   patios,   landscaping,  fences,  porches,  garages,  fallout
shelters, basements, and other improvements to structures or  upon  land
which  is  adjacent  to  a  dwelling house. "Home improvement" shall not
include (i) the construction of a new home or building or work done by a
contractor in compliance  with  a  guarantee  of  completion  of  a  new
building  project,  (ii)  the sale of goods or materials by a seller who
neither arranges to perform nor performs directly or indirectly any work
or labor in connection with the installation of or  application  of  the
goods or materials, (iii) residences owned by or controlled by the state
or  any municipal subdivision thereof, or (iv) painting or decorating of
a building, residence, home or apartment, when not incidental or related
to home improvement work as herein defined. Without regard to the extent
of affixation, "home improvement" shall also include the installation of
central heating or air conditioning  systems,  central  vacuum  cleaning
systems, storm windows, awnings or communication systems.
  3.  "Building"  means  any  structure  containing  no  more  than four
residences or dwelling units.
  4. "Owner" means any homeowner, cooperative  shareholder,  condominium
unit  owner,  tenant,  or  any other person who orders, contracts for or
purchases the home improvement services of a contractor  or  the  person
entitled  to  the  performance of the work of a contractor pursuant to a
home improvement contract.
  5. "Contractor" means any person or salesperson,  other  than  a  bona
fide  employee  of  the  owner, who owns, operates, maintains, conducts,
controls or transacts a home improvement business and who undertakes  or
offers  to  undertake  or  agrees  to  perform  any  home improvement or
solicits any contract therefor, whether or not such person  is  licensed
or subject to the licensing requirements of this subchapter, and whether
or  not  such person is a prime contractor or subcontractor with respect
to the owner.
  6. "Home improvement contract" means an  agreement,  whether  oral  or
written, or contained in one or more documents, between a contractor and
an  owner  ,  or  contractor  and  a tenant, regardless of the number of
residences or dwelling units contained in  the  building  in  which  the
tenant resides, provided said work is to be performed in, to or upon the
residence or dwelling unit of such tenant, for the performance of a home
improvement  and  includes  all  labor,  services  and  materials  to be
furnished and performed thereunder.
  7.  "Licensee"  means  a  person  permitted  to  engage  in  the  home
improvement business under the provisions of this subchapter.
  8.  "Home  improvement  establishment"  means any shop, establishment,
place or premises where the home improvement business is  transacted  or
carried on.
  9.  "Salesperson"  means  any  individual  who negotiates or offers to
negotiate a home improvement contract with  an  owner,  or  solicits  or
otherwise  endeavors  to  procure  in person a home improvement contract
from an owner on behalf of a  contractor,  or  for  himself  or  herself
should  the  salesperson  be  also  the  contractor, whether or not such
person is licensed or subject to  the  licensing  requirements  of  this
subchapter.

Section 20-387

Section 20-387

  § 20-387 License required. (a) No person shall solicit, canvass, sell,
perform  or  obtain  a  home  improvement  contract  as  a contractor or
salesperson from an owner without a license therefor.
  (b) A license issued pursuant to this subchapter may not be  construed
to  authorize  the  licensee  to  perform any particular type of work or
engage in any kind of business which is reserved to qualified  licensees
under  separate  provisions of state or local law, nor shall any license
or authority other than that which is issued or  permitted  pursuant  to
this subchapter authorize engaging in the home improvement business.

Section 20-388

Section 20-388

  §  20-388  Fees;  term.  1.  The  fee  for a license to conduct a home
improvement business shall be fifty dollars and for each renewal thereof
the fee shall be fifty dollars.
  The fee for a salesperson's license employed  by  a  home  improvement
contractor shall be twenty-five dollars and for each renewal thereof the
fee shall be twenty-five dollars.
  2.  The fee for issuing a duplicate license or for one lost, destroyed
or mutilated shall be ten dollars.

Section 20-389

Section 20-389

  §  20-389  License  not  assignable;  posting required; removal. a. No
license shall be assignable or transferable.
  b. A license issued hereunder shall  at  all  times  be  posted  in  a
conspicuous place in the place of the licensee.
  c.  Every  licensee shall within ten days after a change of control in
ownership, or of management, or of  change  of  address  or  trade  name
notify the commissioner of each change.
  d.  A  duplicate  license  may be issued for one lost or mutilated and
shall bear the word "duplicate" stamped across its face.
  e. Commissioner's  powers.  In  addition  to  the  powers  and  duties
elsewhere  prescribed  in  this  subchapter, the commissioner shall have
power:
  (1) To appoint an adequate number of assistants, inspectors and  other
employees  as  may  be  necessary  to  carry  out the provisions of this
subchapter, to prescribe their duties, and  to  fix  their  compensation
within the amount appropriated therefor;
  (2)  To  examine  the  qualifications  and  fitness  of applicants for
licenses under this subchapter;
  (3) To keep record of all licenses issued, suspended or revoked;
  (4) At any time to require reasonable information of an  applicant  or
licensee, and may require the production of books of accounts, financial
statements,  contracts  or  other  records  which  relate  to  the  home
improvement activity, qualification or compliance with  this  subchapter
by  the licensee provided, however, that said information and production
of records is required of him or her pursuant to  its  regular  business
and functions under this subchapter.

Section 20-390

Section 20-390

  §  20-390 Application; fingerprinting. 1. An application for a license
or renewal  thereof  shall  be  made  to  the  commissioner  on  a  form
prescribed by him or her.
  2. A separate license shall be required for each place of business.
  3.  The  application  shall  be  filed  only  by the actual owner of a
business, shall be in writing, signed and under oath; it  shall  contain
the  office  address  of the business; the name and residence address of
the owner or partner and if a corporation, trade group  or  association,
the  names  and  resident  addresses  of  the  directors  and  principal
officers.
  4. The commissioner may require the names and residence  addresses  of
any  employees  of  an  applicant,  in addition to any other information
which he or she may deem advisable.
  5. Each applicant shall be over eighteen years  of  age  and  of  good
character.
  6.  The commissioner shall require that applicants for licenses issued
pursuant to this subchapter be fingerprinted for the purpose of securing
criminal history records from the state  division  of  criminal  justice
services.  The  applicant  shall pay a processing fee as required by the
state division of criminal justice services. Fingerprints shall be taken
of the individual owner if the applicant is a sole  proprietorship;  the
general  partners  if  the applicant is a partnership; and the officers,
principals, directors, and stockholders owning more than ten percent  of
the  outstanding  stock  of  the  corporation  if  the  applicant  is  a
corporation. Any person required to  be  fingerprinted  hereunder  shall
furnish  to  the  department three current passport-sized photographs of
such person. Notwithstanding the foregoing, the  commissioner  need  not
require  applicants  for  licenses  required under this subchapter to be
fingerprinted if criminal history records concerning such applicants are
not available from the state division of criminal justice services.
  7. Each application for a license to solicit, canvass,  sell,  perform
or  obtain a home improvement contract as a contractor from an owner, or
for renewal thereof, filed on or after the effective date of  the  local
law   which  added  this  subdivision  shall  contain  such  information
prescribed by the commissioner as sufficient to verify  the  applicant's
compliance  with  the  requirements  specified  in  subdivision  four of
section seventy-one-a of the lien law.

Section 20-391

Section 20-391

  §  20-391  Rules and regulations. The commissioner may make such rules
and regulations not inconsistent with the provisions of this subchapter,
as may be necessary with respect to the form and content of applications
for licenses, the reception thereof, the investigation  and  examination
of applicants and their qualifications, and the other matters incidental
or  appropriate  to  his  or her powers and duties as prescribed by this
subchapter and for the proper  administration  and  enforcement  of  the
provisions of this subchapter, and to amend or repeal any such rules and
regulations.

Section 20-392

Section 20-392

  §  20-392  Fines;  issuance,  renewal,  suspension  and  revocation of
license.  a. The commissioner shall have the power to impose a fine  not
to  exceed one thousand dollars upon a licensee and/or suspend or revoke
a license or deny an application  for  the  issuance  or  renewal  of  a
license for any one or more of the following causes:
  1. Fraud, misrepresentation, or bribery in securing a license.
  2.  The  making  of any false statement as to a material matter in any
application for a license.
  3. The person or  the  management  personnel  of  the  contractor  are
untrustworthy or not of good character.
  4. The business transactions of the contractor have been or are marked
by a practice of failure to timely perform or complete its contracts, or
the  manipulation of assets or accounts, or by fraud or bad faith, or is
marked by an unwholesome method or practice of solicitation of  business
from owners.
  5. Failure to display the license as provided in this subchapter.
  6.  Failure  to comply with any demand or requirement lawfully made by
the commissioner.
  7. When an agent or employee of a licensee has been guilty of  an  act
of  omission,  fraud, or misrepresentation and the licensee has approved
or had knowledge thereof.
  8. Violation of any provision  of  this  subchapter  or  any  rule  or
regulation  adopted hereunder or for performing or attempting to perform
any act prohibited by this subchapter.
  9. Violation of any provision of subchapters  one,  two  or  three  of
title  twenty-six  or subchapter one of title twenty-seven of this code,
or any rule adopted  thereunder  or  for  performing  or  attempting  to
perform  any  act  prohibited  by  such  subchapters,  provided that the
commissioner shall suspend or revoke the license  of  any  licensee  who
continues  to  work  in  violation of a stop-work notice or order issued
pursuant to section 26-118 of this code.
  b. In addition to any of the powers  that  may  be  exercised  by  the
commissioner  pursuant to this subchapter and chapter one of this title,
the commissioner, after notice and  an  opportunity  to  be  heard,  may
refuse  to  issue or renew, or may suspend or revoke, a license required
under this subchapter if the  applicant  or  licensee,  or  any  of  its
principals,  officers  or  directors,  or any of its 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 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 issue or  renew,  or  to
suspend or revoke, such license.

Section 20-393

Section 20-393

  § 20-393 Prohibited acts. The following acts are prohibited:
  1.  Deviation  from or disregard of the plans or specifications or any
terms and conditions agreed to under a home improvement contract in  any
material respect without the written consent of the owner;
  2.  Making  any  substantial  misrepresentation in the solicitation or
procurement of a home improvement contract, or making any false  promise
of character likely to influence, persuade or induce;
  3.  Any  fraud  in the execution of, or in the material alteration of,
any contract, mortgage, promissory note or other document incident to  a
home improvement transaction;
  4. Acting as an agent for any owner or any finance or mortgage company
to  arrange for or to obtain an extension of credit which is used to pay
for an owner's obligations under a home improvement contract, unless the
instrument  evidencing   such   owner's   indebtedness   complies   with
subdivision  b  of section 433.2 of title sixteen of the code of federal
regulations and the licensee complies with section 771-a of the  general
business law;
  5.  Directly  or  indirectly  publishing any advertisement relating to
home  improvements  which  contains  an  assertion,  representation   or
statement  of  fact  which  is false, deceptive, or misleading, provided
that any advertisement which is subject to and complies  with  the  then
existing  rules,  regulations  or guides of the federal trade commission
shall not be deemed false, deceptive or  misleading;  or  by  any  means
advertising   or  purporting  to  offer  the  general  public  any  home
improvement work with  the  intent  not  to  accept  contracts  for  the
particular  work  or  at the price which is advertised or offered to the
public;
  6. Wilful or deliberate  disregard  and  violation  of  the  building,
sanitary, fire and health laws of this city;
  7.  Failure  to  notify  the  commissioner of any change or control in
ownership, management or business name or location;
  8. Conducting a home improvement business in any name other  than  the
one in which the contractor is licensed;
  9.  Wilful  failure to comply with any order, demand, rule, regulation
or requirement made by the commissioner pursuant to provisions  of  this
subchapter;
  10.  As  part  of  or in connection with the inducement to make a home
improvement contract, no person shall promise or offer to pay credit, or
allow to a buyer any compensation or reward for  the  procurement  of  a
home improvement contract with others;
  11.  Failing  to  perform  work under a home improvement contract in a
skillful and competent manner;
  12. Procuring a certificate of completion from an owner prior  to  the
actual  completion  of  performance  by  the  contractor  under  a  home
improvement contract;
  13. Including any provision or clause in a home  improvement  contract
whereby the owner waives or is barred from asserting any rights, claims,
defenses  or remedies available to an owner under this subchapter or any
rules promulgated pursuant thereto;
  14. Failing to comply with subdivision four of  section  seventy-one-a
of the lien law;
  15.  a.  No  salesperson  may  concurrently  represent  more  than one
contractor  in  the  solicitation  or  negotiation  of  any   one   home
improvement  contract  from  an  owner. The use of a contract form which
fails to disclose a named contractor principal, whether for the  purpose
of  offering  the contract to various contractors other than the one the
salesperson purported to  represent  in  negotiation  or  otherwise,  is

prohibited.   No  salesperson  may  be  authorized  to  select  a  prime
contractor on behalf of the owner.
  b.  No  salesperson  shall accept or pay any compensation of any kind,
for or on account of a home improvement transaction,  from  or  for  any
person  other than the contractor whom he or she represents with respect
to the transaction.
  16. a. As a part of or in connection with the inducement to enter  any
home  improvement  contract,  no  person  shall promise or offer to pay,
credit,  or  allow  to  any  owner,  compensation  or  reward  for   the
procurement or placing of home improvements business with others.
  b.  No  contractor or salesperson shall offer, deliver, pay, credit or
allow to the owner any gift, bonus award or merchandise, trading stamps,
or cash loan as an inducement to enter a home improvement contract.
  c. A contractor or salesperson may give tangible items to  prospective
customers  for advertising or sales promotion purposes where the gift is
not conditioned upon obtaining a contract  for  home  improvement  work;
provided no such item shall exceed a cost value of two dollars and fifty
cents  and no owner and/or other person shall receive more than one such
item in connection with any one transaction.
  17. Notwithstanding any other provisions of this  section,  no  person
licensed under this subchapter shall, in connection with any home repair
or  home  improvement,  act  as  an  agent for, or advertise, promote or
arrange for the services of a lender or its affiliate to secure  a  home
loan or a home improvement loan for or on behalf of an owner.
  18.  No  contractor  shall receive payment from the proceeds of a home
improvement loan except by an instrument payable solely to the  borrower
or  at  the election of the borrower, through a third party escrow agent
in accordance with terms established in a written  agreement  signed  by
the borrower, the lender and the contractor prior to disbursement.

Section 20-394

Section 20-394

  § 20-394 Waiver. No acts, agreements or statements of an owner under a
home improvement contract shall constitute a waiver of any provisions of
this subchapter intended for the benefit or protection of the owner.

Section 20-394.1

Section 20-394.1

  § 20-394.1 Right of owner to cancel. A licensee shall furnish a notice
to  the  owner  that, in addition to any other right to revoke an offer,
the owner may cancel a home improvement contract until midnight  of  the
third  business  day  after  the  day  on  which the owner has signed an
agreement or offer to  purchase  relating  to  such  contract  or  until
midnight  of  the  third  business  day after the day on which the owner
receives the notice of his or her  right  to  cancel,  whichever  occurs
later.  Cancellation occurs when written notice of cancellation is given
to the home improvement contractor. Notice of cancellation, if given  by
mail,  shall  be  deemed  given  when  deposited  in  a mailbox properly
addressed  and  postage  prepaid.  Notice  of  cancellation   shall   be
sufficient if it indicates the intention of the owner not to be bound by
such  home  improvement  contract  or offer to purchase relating to such
contract. Notwithstanding the foregoing, this paragraph shall not  apply
to  a  transaction  in which the owner has initiated the contact and the
home improvement is needed to meet a bona fide emergency of  the  owner,
and  the owner furnishes the home improvement contractor with a separate
dated  and  signed  personal  statement  in  the   owner's   handwriting
describing  the  situation  requiring  immediate  remedy  and  expressly
acknowledging and waiving the  right  to  cancel  the  home  improvement
contract within three business days.

Section 20-395

Section 20-395

  §  20-395  Duty  to furnish estimate. A home improvement contractor or
any  salesperson,  employee  or   agent   of   such   contractor   shall
affirmatively  disclose that an estimate in writing of the materials and
labor necessary for a specific home improvement job is available to  any
consumer.  Upon  request,  such contractor shall make and furnish to the
consumer such  estimate.  A  reasonable  fee  may  be  charged  for  the
estimate,  which  fee  shall  be  disclosed to the consumer prior to the
furnishing of the estimate and shall be itemized and  reflected  in  the
total estimated contract price.

Section 20-396

Section 20-396

  §   20-396   False  or  fraudulent  representation;  damages.  a.  Any
contractor, canvasser or seller of home improvements who shall knowingly
make any false or fraudulent representations or statements or who  makes
or  causes any such statements to be made in respect to the character of
any sale, or the party authorizing the  same,  or  as  to  the  quality,
condition,  or  value  of  any  property offered by him or her for sale,
shall be deemed guilty of a misdemeanor, and, upon  conviction  thereof,
shall  be  punished  by imprisonment not exceeding one year or by a fine
not exceeding one thousand dollars.
  b. Any person who is induced to  contract  for  home  improvements  in
reliance  on false or fraudulent representations or statements knowingly
made, may sue and recover  from  such  home  improvement  contractor  or
solicitor  a  penalty of five hundred dollars in addition to any damages
sustained by him or her by reason of such statements or  representations
made by the contractor or by his or her agents or employees.

Section 20-397

Section 20-397

  §  20-397 Exceptions. No contractor's license shall be required in the
following instances:
  1. An individual who performs labor or services for a  contractor  for
wages or salary.
  2.  A  plumber,  electrician, architect, professional engineer, or any
other such person who is  required  by  state  or  city  law  to  attain
standards  of  competency or experience as a prerequisite to engaging in
such craft or profession, or any person required to be licensed pursuant
to article six-D of the general business law to engage in  the  business
of installing, servicing, or maintaining security or fire alarm systems,
and  who is acting exclusively within the scope of the craft, profession
or business for which he or she is currently licensed pursuant  to  such
other law.
  3.  Any retail clerk, clerical, administrative, or other employee of a
licensed contractor,  as  to  a  transaction  on  the  premises  of  the
contractor.
  4. This subchapter shall not apply to or affect the validity of a home
improvement  contract  otherwise  within  the purview of this subchapter
which is made prior to October first, nineteen hundred sixty-eight.
  5. Any home improvement, where the aggregate contract  price  for  all
labor  materials  and other items is less than two hundred dollars. This
exemption does not apply where the work is only  part  of  a  larger  or
major   operation,  whether  undertaken  by  the  same  or  a  different
contractor, or in which a division of the operation is made in contracts
of amounts less than two hundred dollars for the purpose of  evasion  of
this provision or otherwise.

Section 20-398

Section 20-398

  §  20-398  Power  to  investigate. If the commissioner upon reasonable
cause should believe that any licensee or any other person has  violated
any of the provisions of this subchapter or any other law, relating to a
home  improvement  business, he or she shall have the power to make such
investigation as he or she shall  deem  necessary,  and  to  the  extent
necessary  for  this purpose, he or she may examine such licensee or any
other persons and shall have the power to compel the production  of  all
relevant books, records, accounts, documents or other records.

Section 20-399

Section 20-399

  §  20-399 Hearings on charges; decision. No license shall be suspended
or revoked nor fine imposed until after a hearing had before an  officer
or  employee  of  the  department  designated  for  such  purpose by the
commissioner upon notice to the licensee  of  at  least  ten  days.  The
notice  shall  be served either personally or by first-class mail to the
licensee at his or her last known address and shall state the  date  and
place  of  the  hearing and set forth the ground or grounds constituting
the charges against the licensee. The licensee shall be heard in his  or
her defense either in person or by counsel and may produce witnesses and
testify in his or her behalf. A stenographic or electronic record of the
hearing  shall  be made and preserved. The hearing may be adjourned from
time to time. The person conducting the hearing  shall  make  a  written
report  of  his or her findings and a recommendation to the commissioner
for a decision. The commissioner shall  review  such  findings  and  the
recommendation  and,  after  due  deliberation,  shall  issue  an  order
accepting, modifying or rejecting such recommendation and dismissing the
charges or suspending or revoking the license. For the purpose  of  this
subchapter,   the  commissioner  or  any  officer  or  employee  of  the
department  designated  by  him  or  her  may  administer  oaths,   take
testimony,  subpoena  witnesses  and  compel  the  production  of books,
papers, records  and  documents  deemed  pertinent  to  the  subject  of
investigation.

Section 20-400

Section 20-400

  §   20-400   Judicial  review.  The  action  of  the  commissioner  in
suspending, revoking or refusing to issue or  renew  a  license  may  be
reviewed   by  a  proceeding  brought  under  and  pursuant  to  article
seventy-eight of the civil practice law and rules.

Section 20-401

Section 20-401

  §  20-401  Violations  and  penalties. 1. a. Any person who shall own,
conduct or  operate  a  home  improvement  business  without  a  license
therefor  or  who  shall knowingly violate any of the provisions of this
subchapter or any rules promulgated thereunder, with  the  exception  of
violations  referred  to in section 20-396 of this subchapter, or having
had his or her license suspended or revoked shall continue to engage  in
such  business,  shall  be guilty of a misdemeanor, and upon conviction,
shall be punishable by imprisonment for not more than six months, or  by
a  fine  of  not  more  than one thousand dollars, or both such fine and
imprisonment, and  each  such  violation  shall  be  deemed  a  separate
offense.
  b.  In  addition  to  the  penalties  provided  by paragraph a of this
subdivision and those provided by sections 20-105 and 20-106 of  chapter
one of this title, any person who violates any of the provisions of this
subchapter  shall  be liable for a penalty of not more than one thousand
dollars for each such violation.
  2. The corporation counsel may bring an action in the name of the city
to  restrain  or  prevent  any  violation  of  this  subchapter  or  any
continuance of any such violation.
  3.  Where  any  violation of this subchapter is found to be willful or
where such violation has posed a threat to the health or safety  of  the
owner,  the commissioner may order the contractor to pay to the owner an
amount which shall not exceed three  times  the  actual  amount  of  any
damages sustained by the owner as a result of such violations.

Section 20-401.1

Section 20-401.1

  §  20-401.1  Violations  for  operating  without  a  license; seizure;
forfeiture. a. 1. For purposes of this section, the term  "owner"  shall
mean  an  owner  as  defined  in section one hundred twenty-eight and in
subdivision three of section three hundred eighty-eight of  the  vehicle
and traffic law.
  2.  For  purposes  of this section, the term "security interest" shall
mean a security interest as defined in  subdivision  k  of  section  two
thousand one hundred one of the vehicle and traffic law.
  3.  For purposes of this section, the term "unlicensed activity" shall
mean the conduct of  any  activity  for  which  a  license  is  required
pursuant  to subdivision a of section 20-387 of this subchapter, without
such license.
  b. Any police  officer  or  authorized  officer  or  employee  of  the
department,  upon  service  on  the  owner or operator of a vehicle of a
notice of violation for engaging in unlicensed  activity,  may  seize  a
vehicle  which such police officer or authorized officer or employee has
reasonable cause to believe  is  being  used  in  connection  with  such
violation.  Any  vehicle  seized  pursuant  to this subdivision shall be
delivered into the  custody  of  the  department  or  other  appropriate
agency.  The  commissioner  shall  hold  a  hearing  to  adjudicate  the
violation underlying the seizure within five  business  days  after  the
date  of  seizure and shall render his or her determination within three
business days after the conclusion of the  hearing.  Such  determination
shall  also include a finding as to whether or not such vehicle was used
in connection with such violation.
  c. An owner may  obtain  release  of  a  vehicle  seized  pursuant  to
subdivision  b of this section prior to the hearing provided for in such
subdivision, if such owner has not previously been found to have engaged
in unlicensed activity within a five-year period prior to the  violation
resulting  in such seizure. The vehicle shall be released to an eligible
owner upon the posting of an all cash bond in a form satisfactory to the
commissioner in an amount sufficient to cover the maximum fines or civil
penalties which may be imposed for the violation underlying the  seizure
and all reasonable costs for removal and storage of such vehicle.
  d.  After adjudication of the violation underlying the seizure, if the
commissioner finds that the vehicle has not been used in connection with
unlicensed activity, the department shall promptly release such  vehicle
upon written demand of its owner.
  e.  After adjudication of the violation underlying the seizure, if the
commissioner finds that the vehicle has been  used  in  connection  with
unlicensed  activity  then:  (i)  if  the  vehicle  is  not  subject  to
forfeiture pursuant to paragraph one of subdivision g of  this  section,
the  department  shall  release such vehicle to an owner upon payment of
all applicable fines and civil penalties and  all  reasonable  costs  of
removal  and  storage;  or  (ii) if the vehicle is subject to forfeiture
pursuant to  paragraph  one  of  subdivision  g  of  this  section,  the
department  may  release  such  vehicle  to an owner upon payment of all
applicable fines and civil penalties and all reasonable costs of removal
and storage, or may commence a forfeiture action within ten  days  after
the owner's written demand for such vehicle.
  f.  Any vehicle that has not been claimed by the owner within ten days
after adjudication by the commissioner of the violation  underlying  the
seizure  shall be deemed by the department to be abandoned. Such vehicle
shall be disposed of  by  the  department  pursuant  to  section  twelve
hundred twenty-four of the vehicle and traffic law.
  g.  1. In addition to any other fine, penalty or sanction provided for
in section 20-401 of this code, a vehicle seized pursuant to subdivision
b of this section, and all rights, title and interest therein  shall  be

subject to forfeiture to the city upon notice and judicial determination
thereof  if the owner of such vehicle has been found liable at least two
times within a five-year period for engaging in unlicensed activity, and
each  of  those determinations have included findings that a vehicle was
used in connection with such violations.
  2. A forfeiture action pursuant to this subdivision shall be commenced
by the filing of a summons with a notice or a summons and  complaint  in
accordance  with  the  civil  practice  law and rules. Such summons with
notice or a summons and complaint shall be served in accordance with the
civil practice law and rules on all owners of the subject vehicle listed
in the records maintained by the department of motor  vehicles,  or  for
vehicles  not  registered  in  the  state  of  New  York, in the records
maintained by the state of registration. A vehicle which is the  subject
of  such  action  shall remain in the custody of the department or other
appropriate agency pending the final  determination  of  the  forfeiture
action.
  3.  Notice  of the institution of the forfeiture action shall be given
by first-class mail to all persons holding a security interest  in  such
vehicle, if such security interest has been filed with the department of
motor  vehicles  pursuant  to the provisions of title ten of the vehicle
and traffic law, at the  address  set  forth  in  the  records  of  such
department, or for vehicles not registered in the state of New York, all
persons  holding  a  security  interest in such vehicle if such security
interest has been filed with the state of registration and which persons
are made known by such state to the department, at the address  provided
by such state of registration.
  4.  Any  owner  who receives notice of the institution of a forfeiture
action who claims an interest in the vehicle subject to  forfeiture  may
assert  a  claim  in  such  action  for  the  recovery of the vehicle or
satisfaction of the owner's interest in such vehicle. Any person with  a
security interest in such vehicle who receives notice of the institution
of  the forfeiture action who claims an interest in such vehicle subject
to forfeiture may assert a claim in such action for satisfaction of such
person's security interest in such vehicle.
  5. Forfeiture pursuant to this subdivision shall be  made  subject  to
the  interest of a person who claims an interest in the vehicle pursuant
to paragraph four of this subdivision,  where  such  person  establishes
that:  (i) the use of the vehicle for the conduct that was the basis for
the seizure of the  vehicle  occurred  without  the  knowledge  of  such
person,  or  if  such person had knowledge of such use, that such person
did not consent to such use by doing all that could reasonably have been
done to prevent such use, and that such person did not knowingly  obtain
such  interest  in  the vehicle in order to avoid the forfeiture of such
vehicle, or (ii) that the conduct that was the basis  for  such  seizure
was  committed by any person other than such person claiming an interest
in the vehicle, while such vehicle was unlawfully in the possession of a
person who acquired possession thereof in violation of the criminal laws
of the United States or any state.
  6. The department or agency  having  custody  of  the  vehicle,  after
judicial  determination  of forfeiture, shall, at its discretion, either
(i) retain such vehicle for the official use of the  city;  or  (ii)  by
public  notice  of  at  least  five days, sell such forfeited vehicle at
public sale. The net proceeds of any such sale shall be  paid  into  the
general fund of the city.
  7.  In  any  forfeiture action commenced pursuant to this subdivision,
where the court awards a  sum  of  money  to  one  or  more  persons  in
satisfaction  of  such  person's  interest in the forfeited vehicle, the
total amount awarded to satisfy such interest  or  interests  shall  not

exceed  the  amount  of  the  net  proceeds of the sale of the forfeited
vehicle after deduction of the lawful expenses  incurred  by  the  city,
including reasonable costs of removal and storage of the vehicle between
the time of seizure and the date of sale.

Section 20-402

Section 20-402

  §  20-402  Official  acts  used  as evidence. The official acts of the
commissioner and the department shall be prima  facie  evidence  of  the
facts  therein  and  shall be entitled to be received in evidence in all
actions at law and other legal proceedings in any court  or  before  any
agency, board, body or officer.

Section 20-402.1

Section 20-402.1

  §  20-402.1  Education and outreach. The department shall instruct and
conduct public education on the consumer protection provisions  of  this
subchapter, and the necessary licenses and permits that home improvement
contractors  must  obtain  to  perform certain types of home improvement
work, including but not limited to plumbing work,  electrical  work  and
the  raising,  lifting,  elevating or moving of a home or building. Such
instruction and public education shall be provided to  home  improvement
contractors, homeowners and members of the public at least semiannually.