What's happening
This bill increases penalties and licensing requirements for illegal towing practices in New York City, and enhances enforcement against predatory towing.
Why it matters
Significantly increases financial consequences for illegal towing. The bill raises fines for repeat violations and establishes new misdemeanor penalties, including possible jail time, making illegal towing much riskier and costlier for bad actors.
Dramatically raises bonding and insurance requirements. Towing companies must now provide a $25,000 surety bond (up from $5,000), and this could increase up to $250,000 at the commissioner's discretion, raising the barrier to entry and potentially driving out less scrupulous operators.
Creates new grounds for license suspension or revocation. The amendments authorize license denial, suspension, or revocation for multiple complaints, repeat violations, or certain criminal convictions, enabling faster removal of predatory towers from the market.
Directly targets aggressive and predatory towing tactics. The law explicitly bans “spotting” (using lookouts to target vehicles for towing) and prohibits soliciting services at the scene, addressing common consumer complaints about entrapment and harassment by tow truck operators.
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Who cares
Headline styles
Crack Down on Predatory Towing
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to cities
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Crack Down on Predatory Towing
In Assembly Committee · Cities · Sponsor Ron Kim
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7018
IN SENATE (Prefiled)
January 8, 2020
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in relation to enacting the towing protection enforcement act
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "towing protection enforcement act".
§ 2. Subdivision j of section 19-169.1 of the administrative code of the city of New York, as amended by local law number 41 of the city of New York for the year 2011, is amended to read as follows:
j. (1) Any person who violates this section shall be punished as follows: for the first violation, a fine of five hundred dollars; for the second violation within a period of twelve months of the date of the first violation, a fine of one thousand dollars; and for any additional violations within a period of twenty-four months of the date of a first violation, a fine of [one] two thousand dollars.
(2) In addition to the penalties prescribed by paragraph one of this subdivision, any person who knowingly or willfully violates the provisions of this section or subdivision b of section 20-515 of this code or any rules promulgated thereunder shall be guilty of a misdemeanor punishable by a fine of not less than five hundred dollars or more than three thousand dollars, or by imprisonment for not more than ninety days, or by both such fine and imprisonment.
(3) Any person who knowingly or willfully violates the provisions of this section or subdivision b of section 20-515 of this code or any rules promulgated thereunder who has been found guilty of a violation of any such provisions or such rules two times within a twenty-four month period shall be guilty of a misdemeanor punishable by a fine of not less than one thousand dollars or more than ten thousand dollars, or by imprisonment for not more than six months, or by both such fine and imprisonment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03816-01-9
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§ 3. Subdivisions a and b of section 20-499 of the administrative code of the city of New York, subdivision a as amended and subdivision b as added by local law number 11 of the city of New York for the year 1989, are amended to read as follows:
a. As a condition of the issuance of a license to engage in towing, each applicant shall furnish to the commissioner a surety bond in the sum of [five] twenty-five thousand dollars, payable to the city of New York, executed by the applicant 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 or regulations promulgated hereunder, and upon the further condition that the applicant will pay to the city any fine, penalty or other obligation within thirty days of its imposition, or any final judgment recovered by any person who received towing services from a licensee thereunder and was damaged thereby. The commissioner may in his or her discretion, after a public hearing, five days notice of which shall be published in the City Record, increase the amount of the surety bond required by this section to an amount not to exceed [twenty-five] two hundred fifty thousand dollars. The commissioner may by regulation authorize an applicant to, in lieu of a bond, deposit cash to satisfy the requirements of this section in an amount equal to the sum of the surety bond required by this section.
b. (1) The commissioner may by regulation establish a fund to be administered by the comptroller and authorize an applicant for a license to engage in towing to, in lieu of a bond or cash equivalent, make contributions to such fund to satisfy the requirements of subdivision a of this section. The commissioner may promulgate such rules or regulations as are necessary for the administration of such fund including, but not limited to, regulations setting forth the conditions for participation in the fund, the contributions required to be made to the fund, including the criteria and methodology for determining the appropriate amount of the contributions, and the circumstances under which disbursements will be made from the fund.
(2) Notwithstanding any provisions of titles nineteen and twenty of this code to the contrary, any licensee who prior to the effective date of this paragraph was authorized by the commissioner to make a contribution to the fund established pursuant to paragraph one of this subdivision and who has been found guilty of a violation of sections 19-169.1 and 20-515 of this code two times within a twelve month period shall be required to furnish a surety bond in an amount determined by the commissioner.
§ 4. Subdivisions e and f of section 20-504 of the administrative code of the city of New York, subdivision e as amended by local law number 66 of the city of New York for the year 1989 and subdivision f as added by local law number 28 of the city of New York for the year 1987, are amended and a new subdivision g is added to read as follows:
e. the person holding a tow truck operator's license, or the person holding a license to engage in towing or where applicable any of its officers, principals, directors or 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
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the commissioner to refuse to renew, or to suspend or revoke, such license; [or]
f. the person holding a tow truck operator's license, or the person holding a license to engage in towing has failed to maintain any of the conditions for issuance of such license as provided under this subchapter or any rule or regulation promulgated hereunder[.]; or
g. the person holding a tow truck operator's license, or the person holding a license to engage in towing is the subject of at least five separate complaints within a one year period to the commissioner or the police department for failure to comply with the provisions of section 19-169.1 or subdivision b of section 20-515 of this code.
§ 5. Section 20-504.1 of the administrative code of the city of New York, as amended by local law number 41 of the city of New York for the year 2011, is amended to read as follows:
§ 20-504.1 Mandatory suspension or revocation of license. a. After due notice and opportunity to be heard, the commissioner shall refuse to renew, or shall suspend or revoke a license required under this subchapter, upon the occurrence of any one or more of the following conditions:
[a.] 1. the person holding a license to engage in towing or where applicable, any of such licensee's officers, principals, directors, employees, or stockholders owning more than ten percent of the outstanding stock of the corporation, has been found by the commissioner to have unjustifiably refused to release a vehicle towed pursuant to section 20-518 or section 20-519 of this subchapter, to the vehicle's owner or the owner's agent. The commissioner shall establish standards concerning the sufficiency of proof of ownership of the vehicle and the legality of any charges demanded by the licensee for release of the vehicle. In determining whether such refusal is unjustifiable, the commissioner in addition to any other relevant fact shall consider such standards;
[b.] 2. in a two year period, the person holding a license to engage in towing or where applicable, any of such licensee's officers, principals, directors, employees, or stockholders owning more than ten percent of the outstanding stock of the corporation, has been found by the commissioner to have committed in any combination three or more violations of sections 19-169, [19-169.1 of this code or any rules promulgated thereunder, or sections] 20-507, 20-509, 20-509.1, 20-510, 20-512, 20-514, 20-515, 20-516, 20-518, 20-519, 20-520, 20-520.1 or 20-527 of this [subchapter] code or any rules promulgated thereunder;
[c.] 3. the person holding a license to engage in towing or where applicable, any of such licensee's officers, principals, directors, employees, or stockholders owning more than ten percent of the outstanding stock of the corporation, has been convicted of a misdemeanor or a felony relating to auto stripping in violation of article [165] one hundred sixty-five of the penal law;
[d.] 4. in a two year period, the person holding a tow truck operator's license has been found by the commissioner to have committed in any combination three or more violations of the provisions of sections 19-169 [and 19.169.1 of this code and any rules promulgated thereunder, or sections], 20-510, 20-512, 20-514, 20-515, 20-518, 20-519, 20-520, 20-520.1 or 20-527 of this [subchapter] code or any rules promulgated thereunder;
[e.] 5. the person holding a tow truck operator's license has been found to have operated any motor vehicle in violation of section eleven hundred ninety-two of the vehicle and traffic law during the license term, or has been found to have operated a tow truck in violation of section eleven hundred eighty-two of the vehicle and traffic law.
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b. Notwithstanding the provisions of paragraph two of subdivision a of this section, the commissioner, after due notice and opportunity to be heard, shall refuse to renew, or shall suspend or revoke a license required under this subchapter upon a finding that, in a one year period, the person holding a license to engage in towing or where applicable, any of such licensee's officers, principals, directors, employees, or stockholders owning more than ten percent of the outstanding stock of the corporation, committed any combination of two or more violations of section 19-169.1 or subdivision b of section 20-515 of this code.
§ 6. The opening paragraph of section 20-510 of the administrative code of the city of New York is designated subdivision a and a new subdivision b is added to read as follows:
b. A tow truck operator is forbidden from using spotters or spotting techniques, such as waiting and targeting drivers at parking lots, to tow vehicles on private or commercial property and must obtain the written consent of the owner or manager of the private or commercial property to conduct towing pursuant to section 19-169.1 of this code.
§ 7. Subdivision b of section 20-515 of the administrative code of the city of New York, as amended by local law number 94 of the city of New York for the year 1997, is amended to read as follows:
b. soliciting or offering any inducements or making representations: (i) at the scene of a vehicular accident for the towing of any vehicle involved in an accident, (ii) at or near the scene of the removal of a vehicle pursuant to section 19-169.1 of this code, or (iii) for the performance of any repairs on any vehicle involved in an accident except as may be reasonable and necessary at the scene of an accident for the towing of an accident vehicle on a segment of the arterial highways by an arterial tow permittee who has been authorized by the commissioner of transportation or the police commissioner to provide tow service on such segment.
§ 8. Within one hundred eighty days after the effective date of this act, the tow advisory board, established pursuant to section 20-526 of the administrative code of the city of New York, shall conduct at least one public hearing in each borough of the city of New York to solicit and receive public comments on towing issues. Upon completion of the hearings, the tow advisory board, in consultation with the interagency advisory council, shall make recommendations to address this growing problem including how to improve enforcement of section 19-169.1 of such administrative code and the laws or rules prohibiting the soliciting or making representations at or near the scene of the towing or removal of a vehicle by a tow truck operator.
§ 9. Severability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judgment shall have been rendered.
§ 10. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, in relation to enacting the towing protection enforcement act
Purpose or general idea of bill
To update the New York City laws that regulate the towing of vehicles, including adding provisions thereto to prevent predatory towing of vehi- cles within the City of New York
Summary of specific provisions
Section One of the bill:
Names this act as the "Towing Protection Enforcement Act"
Section Two of the bill:
*Imposes a criminal penalty for any tow truck operator who knowingly and willfully violates certain sections of the Administrative Code relating to the towing of a vehicle from private property.
*Increases the penalty if there is a second violation within a 24 month time period.
Section two of the bill:
*Increases bonding requirements to $25,000 and $250,000.
*Requires any licensee who is currently paying into the fund and who is found in violation of §§ 19-169.1 or the. Administrative Code ("Code") to furnish a bond in an amount determined by the commissioner.
*Authorizes the commissioner to develop criteria for determining the appropriate amount of cash contribution into the fund (the current amount is $200).
Section three authorizes the commissioner to refuse the renew, suspend or revoke a license of any operator who within a one year period, receives five or more complaints for failing to obtain the consent of the property owner before towing, or soliciting or offering inducements.
Section four requires the commissioner to refuse to renew, suspend or revoke the license of any operator who within a one-year period commit- ted two or more violations of soliciting or offering inducements at or near the scene of the towing.
Section five prohibits an operator from using spotters or spotting tech- niques, or from towing an improperly parked vehicle from private proper- ty without the written consent of the owner or manager of the property, as required in § 19.169.1 of the Code.
Section six amends § 20-515 to include soliciting or offering inducement at or near the scene of the towing of any improperly parked vehicle on private property pursuant to.
Section seven requires the tow advisory board to conduct hearings in each New York City borough on the problem of predatory towing and, in consultation with the interagency advisory council, to make recommenda- tions on how to combat this problem, including how to improve enforce- ment of the current towing laws.
Section eight sets forth a severability clause.
Section nine provides that this act shall take effect immediately.
Justification
In 2014, the Legal Aid Society, the New York City Department of Consumer Affairs, and Assembly member Ron Kim worked together to prevent illegal and predatory towing that resulted in over $30 million in fines and restitution for consumers. In May of 2016, NBC New York's Investigative Team reported more predatory towing in New York City that has left more consumers feeling exploited without any recourse.
The current City laws protecting consumers against illegal towing has not been updated since 1989. The new legislation will not only update the law but also strengthen the ability of New York City Department of Consumer Affairs to enforce against predatory towing.
Prior legislative history
02/21/2017 referred to cities 06/05/2017 amend (t) and recommit to cities 06/05/2017 print number 5998a 01/09/2018 referred to cities
Fiscal implications
Minimal. Any costs associated with the conducting of hearings by the tow advisory board.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.