Subchapter 23 - PROCESS SERVERS

Section 20-403

Section 20-403

  §  20-403  License  required.  a.  Process server license. It shall be
unlawful for any person to do business as, be employed as or perform the
services of a process server without a license therefor.
  b. Process serving agency  license.  It  shall  be  unlawful  for  any
process  serving  agency  to  assign or distribute process to individual
process servers for actual service in the city of  New  York  without  a
license therefore.

Section 20-404

Section 20-404

  §  20-404  Definition.  a. A process server is a person engaged in the
business of serving or one who purports  to  serve  or  one  who  serves
personally  or  by  substituted  service  upon  any person, corporation,
governmental or political subdivision or agency,  a  summons,  subpoena,
notice,  citation  or other process, directing an appearance or response
to a legal action, legal proceeding or administrative proceedings.
  b.  A  process  serving  agency  is  any  person,  firm,  partnership,
association  or  corporation, other than an attorney or law firm located
in this state, or city marshal,  who  maintains  an  office,  bureau  or
agency,  the  purpose  of  which  is  to assign or distribute process to
individual process servers for actual service in the city of New York.
  c. For the purposes of this subchapter the service  of  five  or  more
process  in any one year shall be deemed to constitute doing business as
a process server.

Section 20-405

Section 20-405

  §  20-405  Exceptions.  a. The provisions of this subchapter shall not
apply to any employee of  any  city,  state  or  federal  department  or
agency, who is acting within the scope of his or her employment.
  b. The provisions of this subchapter shall not apply to attorneys duly
admitted to practice law in the state of New York.

Section 20-406

Section 20-406

  §  20-406  Application;  fingerprinting.  a. An application for such a
license or renewal thereof shall be made to the commissioner on  a  form
prescribed by him or her.
  b.  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.
  c. Each such applicant for a process server license or renewal thereof
shall  be  required  to  pass  an   examination   satisfactorily.   Such
examination shall be under the supervision of the commissioner and shall
test the knowledge of the applicant concerning proper service of process
within  the  city  of  New  York  and familiarity with relevant laws and
rules.

Section 20-406.1

Section 20-406.1

  20-406.1 Bond required. a. As a condition of the issuance of a process
server  license,  each  applicant  for such license or a renewal thereof
shall furnish  to  the  commissioner  a  surety  bond  executed  by  the
applicant in the sum of ten thousand dollars, payable to the city of New
York,  and  a  surety  approved  by the commissioner. Such bond shall be
conditioned upon the applicant's compliance with the provisions of  this
subchapter  and  any  rules promulgated thereunder, and upon the further
condition that the applicant will pay (i) to the city any fine,  penalty
or  other  obligation  the  city imposes relating to a violation of this
subchapter and any rules promulgated thereunder, and (ii) to a plaintiff
any final judgment recovered in an action arising out of  the  violation
of  any  of  the provisions of this subchapter within thirty days of its
imposition. If an applicant  is  unable  to  obtain  a  surety  bond  as
required  by  this section, and upon the provision of proof satisfactory
to the commissioner of such inability, the individual applicant may,  in
lieu  of  furnishing  such  bond,  deposit an amount of no less than one
thousand dollars in a fund to be established by the commissioner to  pay
(i)  to  the city any fine, penalty or other obligation the city imposes
relating to a violation of this subchapter  and  any  rules  promulgated
thereunder,  and  (ii) to a plaintiff any final judgment recovered in an
action arising out of the violation of any of  the  provisions  of  this
subchapter within thirty days of its imposition.
  b.  A process server licensed under this subchapter who engages in the
business of serving process exclusively as  an  employee  of  a  process
serving  agency  licensed under this subchapter shall not be required to
furnish a surety bond.
  c. As a condition of the issuance of a process serving agency license,
each applicant for such license or a renewal thereof  shall  furnish  to
the  commissioner  a  surety  bond  in  the  sum of one hundred thousand
dollars executed by the applicant payable to the city of New York, and a
surety approved by the commissioner. Such bond shall be conditioned upon
the applicant's compliance with the provisions of  this  subchapter  and
any  rules  promulgated  thereunder, and upon the further condition that
the applicant will pay (i) to  the  city  any  fine,  penalty  or  other
obligation  the  city imposes relating to a violation of this subchapter
and any rules promulgated thereunder, and (ii) to a plaintiff any  final
judgment  recovered  in an action arising out of the violation of any of
the provisions of this subchapter within thirty days of its imposition.

Section 20-406.2

Section 20-406.2

  § 20-406.2 Responsibilities of process serving agencies. Every process
serving agency licensed under this subchapter shall:
  a. Comply with all applicable state and federal laws;
  b.  Be  legally  responsible for any failure to act in accordance with
the laws and rules governing service of process by each  process  server
to whom it has distributed, assigned or delivered process for service;
  c.  Provide  to  each process server employed by such agency a written
statement indicating the rights of such employee and the obligations  of
the  process  serving  agency  under  city,  state and federal law. Such
statement of rights and obligations shall include, but  not  be  limited
to,  a  general  description of employee rights and employer obligations
pursuant to laws regarding minimum wage, overtime  and  hours  of  work,
record   keeping,   social  security  payments,  unemployment  insurance
coverage, disability insurance coverage and workers' compensation;
  d. Keep on file in its principal place of business  for  a  period  of
three  (3) years a statement for each employee, signed by such employee,
indicating that the employee read and understood the statement of rights
and obligations such employee received pursuant to  subdivision  (c)  of
this section.

Section 20-406.3

Section 20-406.3

  §  20-406.3  Records,  Audits.  a.  Every  process  server and process
serving agency licensed under this subchapter shall  retain  records  in
compliance with section 89-cc of the New York state general business law
for  no  less  than seven (7) years of each process served. Such records
shall be retained in electronic form. Tampering with any such electronic
records shall be prohibited.
  b. A process server licensed under this subchapter who engages in  the
business  of  serving  process  exclusively  as an employee of a process
serving agency licensed under this subchapter shall not  be  subject  to
the provisions of subdivision (a) of this section, but shall be required
to comply with all other applicable laws.
  c.  The commissioner may conduct audits of the information required to
be kept pursuant to subdivision (a) of this section in order to  monitor
compliance with this subchapter.

Section 20-406.4

Section 20-406.4

  §  20-406.4  Educational  materials.  The  commissioner  shall develop
educational materials to be provided to all process servers and  process
serving agencies licensed under this subchapter. Such materials shall at
a  minimum  identify  the laws and regulations pertaining to services of
process in the city of New York.

Section 20-407

Section 20-407

  §  20-407  Fee;  term.  The  biennial  license  fee to be paid by such
persons shall be three hundred forty dollars.

Section 20-408

Section 20-408

  §  20-408  Rules  and  regulations.  The  commissioner  may  make  and
promulgate such rules and regulations as he or she  may  deem  necessary
for the proper implementation and enforcement of this subchapter.

Section 20-409

Section 20-409

  § 20-409 Issuance, renewal, suspension and revocation of a license. a.
A  license  issued  hereunder may be suspended or revoked or its renewal
denied by the commissioner at any time for the failure of  the  licensee
to  comply  with  any  rule,  regulation  or  order  promulgated  by the
commissioner.
  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.
  c.  Upon  application for renewal of a license issued pursuant to this
subchapter, applicant subject to subdivision (a) of section 20-406.3  of
this  subchapter  shall  certify  in  writing compliance with the record
keeping provisions of such section.

Section 20-409.1

Section 20-409.1

  §  20-409.1 Violations and penalties. Any person who, after notice and
hearing shall be  found  guilty  of  violating  any  provision  of  this
subchapter,  shall  be  punished  in  accordance  with the provisions of
chapter one of this title and shall be subject to a penalty of not  less
than  seven  hundred dollars nor more than one thousand dollars for each
violation.

Section 20-409.2

Section 20-409.2

  § 20-409.2 Civil Cause of Action. Any person injured by the failure of
a  process server to act in accordance with the laws and rules governing
service of process in New York  state,  including  this  subchapter  and
regulations promulgated thereunder, shall have a cause of action against
such  process  server  and  process serving agency, which distributed or
assigned process for service, in any court of competent jurisdiction for
any or all of the following relief:
  a. compensatory and punitive damages, provided that  punitive  damages
shall only be awarded in the case of willful failure to serve process;
  b. injunctive and declaratory relief;
  c. attorneys' fees and costs; and
  d. such other relief as a court may deem appropriate.

Section 20-409.3

Section 20-409.3

  §  20-409.3  Reporting.  Twenty-four  months  after the local law that
added this section becomes effective, the commissioner  shall  submit  a
report  to  the  speaker  of  the council regarding the effectiveness of
these provisions on effectuating proper service and improving  oversight
over  the  process  service  industry.  Such report shall include, among
other things, the results of audits the commissioner  has  completed  of
process  servers  and  process  serving  agencies, including information
regarding their compliance with the provisions of this subchapter.

Section 20-410

Section 20-410

  * §  20-410  Electronic  record  of service. A process server licensed
pursuant to  this  subchapter  shall  carry  at  all  times  during  the
commission  of  his  or  her licensed activities and operate at the time
process is served or attempted an electronic device that uses  a  global
positioning  system,  wi-fi  device  or  other  such  technology  as the
Commissioner by rule shall prescribe  to  electronically  establish  and
record the time, date, and location of service or attempted service. All
records  created  by  such  electronic  device shall be maintained in an
electronic database by the process server, or if such process server  is
acting  exclusively  as  an employee of a process service agency, by the
process service agency, for seven (7) years from the date such record is
created.
  * NB Effective 60 days after adoption of rules promulgated pursuant to
local law 7 of 2010
  * NB There are 2 § 20-410's