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