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

                                   491

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced by M. of A. GIBSON -- read once and referred to the Committee
  on Economic Development, Job Creation, Commerce and Industry

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

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

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00174-01-1
              

A. 491                              2

ARTICLE, AND WITHOUT FIRST BEING IN COMPLIANCE WITH ALL OTHER APPLICABLE
LAWS, RULES AND REGULATIONS.
  2. (A) ALL LICENSES ISSUED PURSUANT TO THIS ARTICLE SHALL BE VALID FOR
TWO YEARS UNLESS SOONER SUSPENDED OR REVOKED. THE SECRETARY SHALL ESTAB-
LISH BY REGULATION THE EXPIRATION DATE OF SUCH LICENSES.
  (B)  THE  FEE  FOR  A LICENSE OR RENEWAL THEREOF SHALL BE FIVE HUNDRED
DOLLARS.
  3. (A) EACH PERSON APPLYING FOR A PROCESS SERVER  LICENSE  OR  RENEWAL
THEREOF  SHALL FILE AN APPLICATION IN SUCH FORM AND DETAIL AS THE SECRE-
TARY MAY PRESCRIBE AND SHALL PAY THE FEE REQUIRED BY THIS SECTION.
  (B) IN ADDITION TO ANY OTHER INFORMATION REQUIRED, THE SECRETARY SHALL
REQUIRE THE FOLLOWING INFORMATION, AND SHALL,  AS  APPROPRIATE,  REQUIRE
SUCH  INFORMATION NOT ONLY OF THE APPLICANT BUT ALSO OF ANY OF ITS PRIN-
CIPALS, PARTNERS, OFFICERS  AND  DIRECTORS,  OR  ANY  PERSON  OR  ENTITY
CONTROLLING AN INTEREST GREATER THAN TEN PERCENT:
  (I) THE NAME AND RESIDENCE ADDRESS OF THE APPLICANT;
  (II) THE BUSINESS NAME, IF OTHER THAN APPLICANT;
  (III)  THE PLACE, INCLUDING THE CITY, TOWN OR VILLAGE, WITH THE STREET
AND NUMBER, WHERE THE BUSINESS IS TO BE LOCATED;
  (IV) THE BUSINESS TELEPHONE OF THE APPLICANT;
  (V) THE LENGTH OF TIME THAT THE APPLICANT HAS BEEN A PROCESS SERVER;
  (VI) A STATEMENT INDICATING WHETHER THE APPLICANT HAS:
  (A) BEEN CONVICTED OF ANY CRIME OR IS A DEBTOR  ON  ANY  UNPAID  CIVIL
JUDGMENT RELATING TO WORK AS A PROCESS SERVER; AND
  (B)  AT  ANY  TIME  IN THE PAST BEEN ISSUED A LICENSE PURSUANT TO THIS
ARTICLE, OR HAS BEEN ISSUED A LICENSE FOR PROCESS SERVING ACTIVITIES  BY
ANY  OTHER STATE OR LOCAL AUTHORITY, AND IF SO, WHETHER SUCH LICENSE WAS
EVER REVOKED OR SUSPENDED;
  (VII) A DETAILED DESCRIPTION OF  THE  BUSINESS  PRACTICES  OR  METHODS
USED,  OR  INTENDED  TO  BE  USED,  BY THE APPLICANT TO CONFIRM THAT THE
ACTIONS OF ITS EMPLOYEES ARE IN  COMPLIANCE  WITH  APPLICABLE  LAWS,  IN
PARTICULAR  WITH  REGARD TO EMPLOYEES CARRYING OUT THE NEW YORK REQUIRE-
MENTS OF SERVICE OF PROCESS AS SET FORTH IN THE CIVIL PRACTICE  LAW  AND
RULES;
  (VIII)  AN  APPLICANT WHO IS A NON-RESIDENT OF THE STATE SHALL PROVIDE
THE NAME AND ADDRESS OF A REGISTERED AGENT WITHIN THE STATE OR DESIGNATE
THE SECRETARY AS HIS OR HER AGENT UPON WHOM PROCESS OR  OTHER  NOTIFICA-
TION MAY BE SERVED.
  4.  IN  DETERMINING WHETHER TO ISSUE OR RENEW A LICENSE, THE SECRETARY
SHALL CONSIDER THE CHARACTER, COMPETENCY AND INTEGRITY OF THE APPLICANT.
THE SECRETARY MAY REFUSE TO ISSUE OR RENEW A LICENSE TO ANY PERSON, FIRM
OR CORPORATION WHOM HE OR SHE FINDS HAS: BEEN  CONVICTED  OF  ANY  CRIME
DEFINED  IN  ARTICLE  ONE HUNDRED FIFTY-FIVE OF THE PENAL LAW OR ARTICLE
TWENTY-TWO-A OF THIS CHAPTER OR FAILED TO PAY ANY FINAL  CIVIL  JUDGMENT
RELATING  TO  WORK AS A PROCESS SERVER, IF SUCH REFUSAL, IN THE JUDGMENT
OF THE SECRETARY, BEST PROMOTES THE INTERESTS  OF  THE  PEOPLE  OF  THIS
STATE.
  5.  NOTICE IN WRITING IN THE MANNER AND FORM PRESCRIBED BY THE DEPART-
MENT SHALL BE GIVEN TO THE DEPARTMENT AT ITS OFFICES  IN  ALBANY  WITHIN
TEN  DAYS  OF CHANGES OF NAME OR ADDRESS BY LICENSED PROCESS SERVER. THE
FEE FOR FILING EACH CHANGE OF  NAME  OR  ADDRESS  NOTICE  SHALL  BE  TEN
DOLLARS.
  6. THE FEES ESTABLISHED BY THIS SECTION SHALL NOT BE REFUNDABLE.
  7.  EACH  PROCESS  SERVER ENGAGED IN SERVING PROCESS SHALL COMMUNICATE
HIS OR HER LICENSE NUMBER UPON THE REQUEST OF ANY INTERESTED PARTY.  ANY
ADVERTISEMENT, LETTERHEAD, RECEIPT OR OTHER PRINTED MATTER OF A LICENSEE

A. 491                              3

MUST  CONTAIN THE LICENSE NUMBER ASSIGNED TO THE LICENSEE BY THE DEPART-
MENT. SUCH LICENSE NUMBER SHALL BE CLEARLY AND CONSPICUOUSLY DISPLAYED.
  8.  NO  PERSON,  FIRM OR CORPORATION SHALL: (A) PRESENT, OR ATTEMPT TO
PRESENT, AS HIS, HER OR ITS OWN, THE LICENSE NUMBER OF ANOTHER;
  (B) KNOWINGLY GIVE FALSE EVIDENCE OF A MATERIAL NATURE TO THE  DEPART-
MENT FOR THE PURPOSE OF PROCURING A LICENSE;
  (C) FALSELY REPRESENT THEMSELVES TO BE A LICENSED PROCESS SERVER;
  (D) USE OR ATTEMPT TO USE A LICENSE WHICH HAS EXPIRED;
  (E)  OFFER TO PERFORM OR PERFORM ANY SERVICE OF PROCESS WITHOUT HAVING
A CURRENT LICENSE AS IS REQUIRED UNDER THIS ARTICLE; OR
  (F) REPRESENT IN ANY MANNER THAT HIS, HER OR ITS  LICENSE  CONSTITUTES
AN  ENDORSEMENT OF THE QUALITY OF WORKMANSHIP OR COMPETENCY OF THE PROC-
ESS SERVER.
  9. LICENSES ISSUED TO PROCESS SERVERS SHALL  NOT  BE  TRANSFERABLE  OR
ASSIGNABLE.
  10.  THE  SECRETARY  SHALL  ISSUE EACH PROCESS SERVER A UNIQUE LICENSE
NUMBER.
  11. THE SECRETARY  SHALL  MAINTAIN  AND  PUBLISH  A  REGISTRY  OF  ALL
LICENSED  PROCESS  SERVERS  WHICH  SHALL LIST AND IDENTIFY, ALL LICENSED
PROCESS SERVERS DOING BUSINESS IN THIS STATE. THE SECRETARY  SHALL  MAKE
THE  REGISTRY  AVAILABLE  ON  ITS WEBSITE. (A) THE SECRETARY SHALL ADOPT
SUCH RULES AND REGULATIONS AS HE OR SHE MAY DETERMINE ARE NECESSARY  FOR
THE  ADMINISTRATION  AND  ENFORCEMENT OF THIS ARTICLE, AND SHALL PROVIDE
WRITTEN NOTIFICATION OF THE PROVISIONS OF THIS ARTICLE  TO  ALL  PROCESS
SERVERS LICENSED PURSUANT TO THIS ARTICLE;
  (B)  IN  ADDITION TO ANY OTHER POWERS OF THE SECRETARY, NOT IN LIMITA-
TION THEREOF, HE OR SHE SHALL HAVE THE POWER TO ENFORCE  THE  PROVISIONS
OF  THIS  ARTICLE,  TO INVESTIGATE ANY VIOLATION THEREOF, TO INVESTIGATE
THE BUSINESS, BUSINESS PRACTICES AND BUSINESS  METHODS  OF  ANY  PROCESS
SERVER, AND TO CONDUCT ROUTINE EXAMINATIONS OF THE FINANCIAL SOLVENCY OF
ANY  PROCESS  SERVER,  IF IN THE OPINION OF THE SECRETARY, SUCH INVESTI-
GATION OR  EXAMINATION  IS  WARRANTED.  EACH  PROCESS  SERVER  SHALL  BE
OBLIGED,  ON  REQUEST OF THE SECRETARY OF STATE, TO SUPPLY SUCH INFORMA-
TION, BOOKS, PAPERS OR RECORDS AS MAY BE REQUIRED CONCERNING HIS, HER OR
ITS BUSINESS, BUSINESS PRACTICES OR BUSINESS METHODS, OR PROPOSED  BUSI-
NESS  PRACTICES  OR  METHODS. FAILURE TO COMPLY WITH A LAWFUL REQUEST OF
THE SECRETARY SHALL BE  A  GROUND  FOR  DENYING  AN  APPLICATION  FOR  A
LICENSE,  OR  FOR  REVOKING,  SUSPENDING,  OR FAILING TO RENEW A LICENSE
ISSUED UNDER THIS ARTICLE;
  (C) THE DEPARTMENT SHALL HAVE THE  POWER  TO  REVOKE  OR  SUSPEND  ANY
LICENSE,  OR  IN LIEU THEREOF TO IMPOSE A FINE NOT LESS THAN ONE HUNDRED
DOLLARS NOR MORE THAN TWO THOUSAND DOLLARS PER  VIOLATION  OR  INSTANCE,
PAYABLE TO THE DEPARTMENT, OR REPRIMAND ANY LICENSEE OR DENY AN APPLICA-
TION FOR A LICENSE OR RENEWAL THEREOF UPON PROOF:
  (I)  THAT THE APPLICANT OR LICENSEE HAS VIOLATED ANY OF THE PROVISIONS
OF THIS ARTICLE OR THE RULES AND  REGULATIONS  PROMULGATED  PURSUANT  TO
THIS ARTICLE;
  (II)  THAT  THE  APPLICANT  OR LICENSEE HAS PRACTICED FRAUD, DECEIT OR
MISREPRESENTATION;
  (III) THAT THE APPLICANT OR LICENSEE HAS MADE A MATERIAL  MISSTATEMENT
IN THE APPLICATION FOR OR RENEWAL OF HIS OR HER LICENSE; OR
  (IV)  THAT  THE APPLICANT OR LICENSEE HAS DEMONSTRATED INCOMPETENCE OR
UNTRUSTWORTHINESS IN HIS OR HER ACTIONS.
  12. THE DEPARTMENT SHALL BEFORE DENYING AN APPLICATION FOR  A  LICENSE
OR  BEFORE  REVOKING  OR SUSPENDING ANY LICENSE, OR IMPOSING ANY FINE OR
REPRIMAND, AND AT LEAST FIFTEEN DAYS PRIOR TO THE DATE SET FOR THE HEAR-

A. 491                              4

ING, AND UPON DUE NOTICE TO THE COMPLAINANT OR OBJECTOR, NOTIFY IN WRIT-
ING THE APPLICANT, OR THE HOLDER OF SUCH LICENSE, OF ANY CHARGE MADE AND
SHALL AFFORD SUCH APPLICANT OR LICENSEE AN OPPORTUNITY TO  BE  HEARD  IN
PERSON  OR  BY  COUNSEL IN REFERENCE THERETO. SUCH WRITTEN NOTICE MAY BE
SERVED PERSONALLY TO THE APPLICANT OR LICENSEE, OR BY CERTIFIED MAIL  TO
THE LAST KNOWN BUSINESS ADDRESS OF SUCH APPLICANT OR LICENSEE.
  13. THE HEARING ON SUCH CHARGES SHALL BE AT SUCH TIME AND PLACE AS THE
DEPARTMENT  SHALL  PRESCRIBE  AND  SHALL BE CONDUCTED BY SUCH OFFICER OR
PERSON IN THE DEPARTMENT AS THE SECRETARY MAY DESIGNATE, WHO SHALL  HAVE
THE  POWER TO SUBPOENA AND BRING BEFORE THE OFFICER, OR PERSON SO DESIG-
NATED, ANY PERSON IN THIS STATE AND  ADMINISTER  AN  OATH  TO  AND  TAKE
TESTIMONY  OF  ANY  PERSON OR CAUSE HIS OR HER DEPOSITION TO BE TAKEN. A
SUBPOENA ISSUED UNDER THIS SECTION SHALL BE REGULATED BY THE CIVIL PRAC-
TICE LAW AND RULES. SUCH OFFICER OR PERSON IN  THE DEPARTMENT DESIGNATED
TO TAKE SUCH TESTIMONY SHALL NOT BE BOUND BY  COMMON  LAW  OR  STATUTORY
RULES OF EVIDENCE OR BY TECHNICAL OR FORMAL RULES OF PROCEDURE.
  14.  IN  THE EVENT THAT THE DEPARTMENT SHALL DENY THE APPLICATION FOR,
OR REVOKE OR SUSPEND ANY SUCH LICENSE, OR IMPOSE ANY FINE OR  REPRIMAND,
ITS  DETERMINATION  SHALL  BE  IN  WRITING  AND  OFFICIALLY  SIGNED. THE
ORIGINAL OF SUCH DETERMINATIONS, WHEN SO SIGNED, SHALL BE FILED  IN  THE
OFFICE  OF  THE  DEPARTMENT  AND  COPIES  THEREOF SHALL BE MAILED TO THE
APPLICANT OR LICENSEE AND TO THE COMPLAINANT WITHIN TWO DAYS AFTER  SUCH
FILING.
  15.  THE  DEPARTMENT,  ACTING  BY  THE  OFFICE OR PERSON DESIGNATED TO
CONDUCT THE HEARING PURSUANT TO SUBDIVISION THIRTEEN OF THIS SECTION  OR
BY  SUCH  OTHER  OFFICER OR PERSON IN THE DEPARTMENT AS THE SECRETARY OF
STATE MAY DESIGNATE, SHALL HAVE THE POWER TO SUSPEND THE LICENSE OF  ANY
LICENSEE  WHO  HAS  BEEN  CONVICTED  IN THIS STATE OR ANY OTHER STATE OR
TERRITORY OF A FELONY OR OF ANY MISDEMEANOR FOR A PERIOD  NOT  EXCEEDING
THIRTY  DAYS  PENDING  A  HEARING  AND  A  DETERMINATION OF CHARGES MADE
AGAINST HIM OR HER. IF SUCH HEARING IS ADJOURNED AT THE REQUEST  OF  THE
LICENSEE, OR BY REASON OF ANY ACT OR OMISSION BY HIM OR HER OR ON HIS OR
HER  BEHALF,  SUCH SUSPENSION MAY BE CONTINUED FOR THE ADDITIONAL PERIOD
OF SUCH ADJOURNMENT.
  16. THE ACTION OF THE DEPARTMENT IN GRANTING OR REFUSING TO  GRANT  OR
TO  RENEW  A  LICENSE UNDER THIS ARTICLE OR IN REVOKING OR SUSPENDING OR
REFUSING TO REVOKE OR SUSPEND SUCH A LICENSE OR  IMPOSING  ANY  FINE  OR
REPRIMAND  SHALL  BE  SUBJECT TO REVIEW BY A PROCEEDING INSTITUTED UNDER
ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND  RULES  AT  THE
INSTANCE  OF  THE APPLICANT FOR SUCH LICENSE, THE HOLDER OF A LICENSE SO
REVOKED, SUSPENDED, FINED OR REPRIMANDED.
  17. FOR THE PURPOSE OF THIS ARTICLE, LICENSEES MAY BE HELD RESPONSIBLE
FOR STATEMENTS, REPRESENTATIONS, PROMISES OR ACTS OF THEIR EMPLOYEES  OR
THEIR  AGENTS  WITHIN  THE  SCOPE OF THEIR AUTHORITY; PROVIDED, HOWEVER,
THAT LICENSEES SHALL NOT BE HELD RESPONSIBLE FOR STATEMENTS, REPRESENTA-
TIONS, PROMISES OR ACTS WHICH ARE  CONTRARY  TO  INSTRUCTIONS  OR  WHICH
CONSTITUTE  GROSS  NEGLIGENCE  OR  INTENTIONAL TORTS UNLESS SPECIFICALLY
AUTHORIZED BY THE LICENSEE. (A) ANY PERSON,  FIRM  OR  CORPORATION  THAT
OPERATES  AS A PROCESS SERVER WITHOUT A LICENSE SHALL BE REQUIRED TO PAY
A CIVIL PENALTY TO THE DEPARTMENT OF NOT MORE THAN FIVE HUNDRED  DOLLARS
PER ATTEMPT TO SERVE PROCESS IN VIOLATION OF THIS SECTION;
  (B)  IN  ADDITION TO ANY OTHER PENALTIES, IF A PERSON IS FOUND TO HAVE
COMMITTED REPEATED, MULTIPLE OR PERSISTENT VIOLATIONS OF  ANY  PROVISION
OF  THIS  ARTICLE,  SUCH  PERSON  MAY BE RESPONSIBLE FOR THE COST OF THE
DEPARTMENT'S INVESTIGATION.

A. 491                              5

  18. (A) AS A CONDITION OF OBTAINING A LICENSE PURSUANT TO  THIS  ARTI-
CLE,  EVERY  PROCESS  SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND
EMPLOYS BETWEEN ONE AND FOUR INDIVIDUALS ENGAGED IN THE SERVICE OF PROC-
ESS SHALL OBTAIN AND CONTINUE IN FULL FORCE AND EFFECT A BOND,  CONTRACT
OF INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF TEN THOU-
SAND DOLLARS TO BE FILED WITH THE SECRETARY;
  (B)  AS  A  CONDITION TO OBTAINING A LICENSE PURSUANT TO THIS ARTICLE,
EVERY PROCESS SERVER APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS
BETWEEN FIVE AND NINE INDIVIDUALS ENGAGED  IN  THE  SERVICE  OF  PROCESS
SHALL  OBTAIN  AND CONTINUE IN FULL FORCE AND EFFECT A BOND, CONTRACT OF
INDEMNITY, OR IRREVOCABLE LETTER OF CREDIT IN THE AMOUNT OF  TWENTY-FIVE
THOUSAND DOLLARS TO BE FILED WITH THE SECRETARY A CONDITION TO OBTAINING
A  LICENSE  PURSUANT TO THIS ARTICLE, EVERY PROCESS SERVER APPLICANT WHO
IS APPLYING FOR A LICENSE AND EMPLOYS BETWEEN TEN AND TWENTY INDIVIDUALS
ENGAGED IN THE SERVICE OF PROCESS SHALL  OBTAIN  AND  CONTINUE  IN  FULL
FORCE AND EFFECT A BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE LETTER OF
CREDIT  IN  THE  AMOUNT  OF  FIFTY THOUSAND DOLLARS TO BE FILED WITH THE
SECRETARY;
  (C) AS A CONDITION TO OBTAINING A LICENSE PURSUANT  TO  THIS  ARTICLE,
EVERY PROCESS APPLICANT WHO IS APPLYING FOR A LICENSE AND EMPLOYS TWENTY
OR  MORE  INDIVIDUALS ENGAGED IN THE SERVICE OF PROCESS SHALL OBTAIN AND
CONTINUE IN FULL FORCE AND EFFECT A  BOND,  CONTRACT  OF  INDEMNITY,  OR
IRREVOCABLE  LETTER  OF  CREDIT,  IN THE AMOUNT OF SEVENTY-FIVE THOUSAND
DOLLARS TO BE FILED WITH THE SECRETARY;
  (D) SUCH SURETY BOND, CONTRACT OF INDEMNITY, OR IRREVOCABLE LETTER  OF
CREDIT  SHALL  BE  CONDITIONED  THAT THE APPLICANT WILL COMPLY WITH THIS
ARTICLE, ARTICLE TWENTY-NINE-H, AND ARTICLE TWENTY-NINE-HH OF THIS CHAP-
TER AND PAY ALL CIVIL PENALTIES, FINES, OR OTHER OBLIGATIONS IMPOSED  BY
THE  SECRETARY  OR  A  COURT  OF LAW, INVESTIGATORY COSTS REQUIRED TO BE
PAID, OR ANY FINAL JUDGMENT AGAINST THE LICENSEE PURSUANT TO SUCH  ARTI-
CLES;
  (E)  THE TOTAL LIABILITY IMPOSED ON THE SURETY BOND UNDER THIS SECTION
FOR ALL BREACHES OF THE BOND CONDITION IS LIMITED TO THE FACE AMOUNT  OF
THE  BOND.  SUCH  LIABILITY  IS  LIMITED TO THE AMOUNT OF THE PENALTY OR
INVESTIGATORY COSTS. IN NO EVENT WILL THE SURETY ON A BOND BE LIABLE FOR
TOTAL CLAIMS IN EXCESS OF THE BOND AMOUNT, REGARDLESS OF THE  NUMBER  OR
NATURE  OF  CLAIMS MADE AGAINST THE BOND OR THE NUMBER OF YEARS THE BOND
REMAINED IN FORCE;
  (F) ANY SURETY ISSUING A BOND PURSUANT TO THIS SECTION AND ANY  LICEN-
SEE  SHALL  BE  REQUIRED  TO PROVIDE THIRTY DAYS NOTICE TO THE SECRETARY
PRIOR TO THE EFFECTIVE DATE OF CANCELLATION OF THE BOND. THE FAILURE  TO
MAINTAIN  SUCH A BOND SHALL OPERATE TO REVOKE THE LICENSE OF THE PROCESS
SERVER UPON NOTICE AND HEARING.
  19. (A) WHEREVER THERE SHALL BE A VIOLATION OF THIS ARTICLE, AN APPLI-
CATION MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE  OF
THE  STATE  OF  NEW  YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A
SPECIAL PROCEEDING TO ISSUE  AN  INJUNCTION,  AND  UPON  NOTICE  TO  THE
DEFENDANT  OF NOT LESS THAN FIVE DAYS, TO ENJOIN OR RESTRAIN THE CONTIN-
UANCE OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE  SATISFACTION  OF
THE  COURT  OR  JUSTICE  THAT  THE DEFENDANT HAS, IN FACT, VIOLATED THIS
SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT  ANY
PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-

A. 491                              6

TION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A VIOLATION OF THIS
SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  LESS
THAN  ONE  HUNDRED  DOLLARS  NOR MORE THAN TEN THOUSAND DOLLARS FOR EACH
VIOLATION.  IN CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTOR-
NEY GENERAL IS AUTHORIZED TO TAKE PROOF AND MAKE A DETERMINATION OF  THE
RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
TICE LAW AND RULES;
  (B) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
ARTICLE MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
FUL  ACT  OR PRACTICE, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES OR
ONE THOUSAND DOLLARS, WHICHEVER IS GREATER, OR BOTH  SUCH  ACTIONS.  THE
COURT MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN AMOUNT
NOT TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TEN THOUSAND DOLLARS,
IF THE COURT FINDS THE DEFENDANT WILLFULLY VIOLATED THIS ARTICLE. IN THE
CASE  OF  ANY  SUCCESSFUL ACTION TO ENFORCE THE FOREGOING LIABILITY, THE
COURT MAY AWARD THE COSTS OF THE ACTION TOGETHER WITH REASONABLE  ATTOR-
NEY'S FEES;
  20.  (A)  THIS  ARTICLE  SHALL APPLY TO ALL PROCESS SERVERS, PROVIDED,
HOWEVER, THAT A POLITICAL SUBDIVISION MAY IMPOSE OTHER REQUIREMENTS THAT
ARE IN ADDITION TO THE MINIMUM STANDARDS SET FORTH IN THIS ARTICLE.
  (B) THE PROVISIONS OF THIS ARTICLE SHALL NOT BE CONSTRUED TO LIMIT  IN
ANY WAY THE AUTHORITY OF A POLITICAL SUBDIVISION TO ENACT, IMPLEMENT AND
CONTINUE TO ENFORCE LOCAL LAWS AND REGULATIONS GOVERNING PROCESS SERVERS
THAT  WERE  IN EFFECT PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE, OR TO
ENACT, IMPLEMENT AND ENFORCE ANY AMENDMENTS THERETO AFTER THE  EFFECTIVE
DATE OF THIS ARTICLE.
  S 3. Subdivision (e) of rule 3015 of the civil practice law and rules,
as  amended  by  chapter  465 of the laws of 1996, is amended to read as
follows:
  (e) License to do business. Where  the  plaintiff's  cause  of  action
against  a  consumer  arises  from the plaintiff's conduct of a business
which is required by state or local law to be licensed by the department
of consumer affairs of the city of New York, the Suffolk county  depart-
ment  of consumer affairs, the Westchester county department of consumer
affairs/weight-measures, the county of Rockland, the  county  of  Putnam
[or], the Nassau county department of consumer affairs OR THE DEPARTMENT
OF  STATE PURSUANT TO SECTION EIGHTY-NINE-W OF THE GENERAL BUSINESS LAW,
the complaint shall allege, as part of the cause of action, that  plain-
tiff  is duly licensed and shall contain the name and number, if any, of
such license and the governmental  agency  which  issued  such  license;
provided,  however,  that where the plaintiff does not have a license at
the commencement of  the  action  the  plaintiff  may,  subject  to  the
provisions of rule thirty hundred twenty-five of this article, amend the
complaint  with the name and number of an after-acquired license and the
name of the governmental agency which issued such license  or  move  for
leave  to  amend  the  complaint in accordance with such provisions. The
failure of the plaintiff to comply with this subdivision will permit the
defendant to move for dismissal pursuant to paragraph seven of  subdivi-
sion (a) of rule thirty-two hundred eleven of this chapter.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its effective  date  are
authorized  and  directed  to  be  made  and completed on or before such
effective date.