L.L. 1987/028

By the Vice Chairman (Council Member Vallone), Council Members Greitzer, Albanese, Eisland, Leffler, Spigner, Horwitz, Berman and Dear (By request of the Mayor); also Council Members Messinger, Michels and Alter (amended May 5, 1987) (Ordered, reprinted and laid over)

A Local Law to amend the administrative code of the city of New York, in relation to the licensing and regulation of persons engaged in towing and the disposition of certain vehicles in the custody of the property clerk and to repeal section 10-145 and subdivision 1 of section 14-140 of such code relating to towing activities

Be it enacted by the Council as follows:

Section 1. Declaration of legislative intent and findings. The council finds that the licensing and regulation of the towing industry continues to serve the purpose of protecting the public from overreaching by certain members of the towing industry and from reckless conduct of certain such members which can threaten life and property. The council reaffirms the declaration made in local law number fifty-four for the year nineteen hundred sixty-five that the regulation of the towing of disabled vehicles is necessary to safeguard the public against fraudulent practices by tow truck operators.

The council finds that it has been a persistent and widespread practice of tow truck operators to monitor police radio transmissions to learn of accidents and then to race to accident sites with the intent of securing the towing and repair work. In so doing, speed limits and other traffic regulations are violated, often posing a substantial threat to life and property. The council finds that the most effective way to curb this practice is to authorize only such towing operators actually necessary to respond to an accident to do so. To this end, the provisions of this local law will empower the commissioner of consumer affairs to establish a program under which the police department will summon an authorized towing company to respond to the scene of an accident, where an owner or operator of a vehicle has not made arrangements for removal. The council finds further that in order to discourage tow truck operators from racing to accident sites, it is necessary to prohibit such operators from soliciting at the accident scene and from maintaining in the course of their business radios capable of receiving police signals or messages.

The council finds that the regulation of the towing industry is a more appropriate function for the department of consumer affairs than the police department. Moreover, the power vested in the department of consumer affairs to "padlock" unlicensed businesses and seize the devices used in the operation of those businesses has proven to be an effective deterrent to other unlicensed activities.

The council finds it appropriate at this time to strengthen existing towing laws and to create a more comprehensive regulatory scheme. The provisions of this local law will serve to regulate any towing performed in the city for consideration except where specifically exempted. The council finds that the provisions of this local law will afford greater protection to the public by requiring that, as a prerequisite to licensing, towing companies furnish a surety bond to ensure payment of fines in the event of noncompliance with towing laws and obtain adequate liability insurance, and by authorizing under appropriate circumstances the immediate suspension of a tow truck operator's license.

§ 2. Section four of local law number seventy-five for the year nineteen hundred eighty-five is amended to read as follows:

This local law shall take effect ninety days after its enactment into law and shall expire and be of no further effect two years after its effective date, except with respect to any rights, duties, liabilities, violations, penalties or other obligations arising or occurring thereunder during such period of effectiveness.

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[Consolidated provisions are not included in this Appendix A]

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§ 11. Any towing car license issued by the police commissioner pursuant to section 10-145 of the administrative code of the city of New York repealed by section three of this local law which is in full force and effect on the effective date of this local law shall continue in full force and effect as if it constituted a license to engage in towing issued by the commissioner of consumer affairs pursuant to the provisions of section 20-498 of such code as added by section ten of this local law, provided that the holder of such towing car license issued by the police commissioner files an application for a new license with the department of consumer affairs within thirty days after such effective date. Such holder of a towing car license issued by the police commissioner shall, on and after the effective date of this local law, be subject to the provisions of section ten of this local law, notwithstanding any rights or privileges afforded to such holder under section 10-145 of such code repealed by section three of this local law and, during the pendency of such application, such towing car license issued by the police commissioner shall remain in full force and effect until such time as the commissioner of consumer affairs either suspends or revokes such towing car license pursuant to the provisions of section 20-504 of such code as added by section ten of this local law, issues a new license or denies the application for such new license. The commissioner of consumer affairs shall refuse to issue to any such holder of a towing car license issued by the police commissioner a new license unless such holder meets all the requirements for issuance set forth in sections 20-498, 20-499, 20-500, 20-501, and 20-502 of such code as added by section ten of this local law and any regulations promulgated thereunder and any other requirements for the issuance of a license to engage in towing set forth in subchapter thirty-one of chapter two of title twenty of such code as added by section ten of this local law or in any regulations promulgated thereunder. The commissioner of consumer affairs may refuse to issue to any such holder of a towing car license issued by the police commissioner a new license if, after due notice and opportunity to be heard, he or she determines that such holder has, on or after the effective date of this local law, engaged in conduct which constitutes a basis for license suspension or revocation as set forth in section 20-504 of such code as added by section ten of this local law or such holder has, before the effective date of this local law, engaged in conduct which would have constituted a basis for license suspension or revocation under section 10-145 of such code repealed by section three of this local law. If a holder of a towing car license issued by the police commissioner fails to file an application for a new license with the commissioner of consumer affairs within thirty days after the effective date of this local law, such towing car license issued by the police commissioner shall become null and void and be of no further effect. Notwithstanding any other provision of law, the license fee for any license to engage in towing issued by the commissioner of consumer affairs pursuant to section 20-498 of such code as added by section ten of this local law to a person who holds a towing car license issued by the police commissioner referred to above shall be reduced by an amount which is equal to the license fee paid to the police department prorated to the unexpired portion of the license term.

§ 12. Any towing car driver's license issued by the police commissioner pursuant to section 10-145 of the administrative code of the city of New York repealed by section three of this local law shall continue in full force and effect as if it constituted a tow truck operator's license issued by the commissioner of consumer affairs pursuant to the provisions of section 20-498 of such code as added by section ten of this local law, provided that the holder of such towing car driver's license issued by the police commissioner files an application for a new license with the commissioner of consumer affairs within thirty days after such effective date. Such holder of a towing car driver's license issued by the police commissioner shall, on and after the effective date of this local law, be subject to the provisions of section ten of this local law, notwithstanding any right or privileges afforded to such holder under section 10-145 of such code repealed by section three of this local law and, during the pendency of such application, such towing car driver's license issued by the police commissioner shall remain in full force and effect until such time as the commissioner of consumer affairs either suspends or revokes such towing car driver's license pursuant to the provisions of sections 20-504 or 20-505 of such code as added by section ten of this local law, issues a new license or denies the application for such new license. The commissioner of consumer affairs shall refuse to issue to any such holder of a towing car driver's license issued by the police commissioner a new license unless such holder meets the requirements for issuance set forth in subdivision b of section 20-498 of such code as added by section ten of this local law and any regulations promulgated thereunder and any other requirements for the issuance of a tow truck operator's license set forth in subchapter thirty-one of chapter two of title twenty of such code as added by section ten of this local law or in any regulations promulgated thereunder. The commissioner of consumer affairs may refuse to issue to any such holder of a towing car driver's license issued by the police commissioner a new license if, after due notice and opportunity to be heard, he or she determines that such holder has, on or after the effective date of this local law, engaged in conduct which constitutes a basis for license suspension or revocation as set forth in sections 20-504 or 20-505 of such code as added by section ten of this local law or such holder has, before the effective date of this local law, engaged in conduct which would have constituted a basis for license suspension or revocation under section 10-145 of such code repealed by section three of this local law. If a holder of a towing car driver's license issued by the police commissioner fails to file an application for a new license with the commissioner of consumer affairs within thirty days after the effective date of this local law, such towing car driver's license issued by the police commissioner shall become null and void and be of no further effect. Notwithstanding any other provision of law, the license fee for any tow truck operator's license issued by the commissioner of consumer affairs pursuant to section 20-498 of such code as added by section ten of this local law to a person who holds a towing car driver's license issued by the police commissioner referred to above shall be reduced by an amount which is equal to the license fee paid to the police department prorated to the unexpired portion of the license term.

§ 13. Any person authorized by the police commissioner to remove vehicles suspected of having been stolen or abandoned pursuant to subdivision 1 of section 14-140 of the administrative code of the city of New York repealed by section seven of this local law who on the effective date of this local law is listed on a rotation list maintained by the police department pursuant to subdivision 1 of section 14-140 of such code repealed by section seven of this local law and continues to be so authorized shall on and after the effective date of this local law continue to be so authorized as if such person had been authorized by the commissioner of consumer affairs to participate in the rotation tow program pursuant to section 20-519 of such code as added by section ten of this local law, provided that such person files an application to participate in such rotation tow program with the department of consumer affairs within thirty days after such effective date. Such person shall, on and after the effective date of this local law, be subject to the provisions of section 20-519 of such code as added by section ten of this local law, notwithstanding any rights or privileges afforded to such person under section 10-145 of such code repealed by section three of this local law or subdivision 1 of section 14-140 of such code repealed by section seven of this local law and, during the pendency of such application, such person shall be authorized to remove vehicles pursuant to such section 20-519 of such code until such time as the commissioner of consumer affairs disqualifies such person from participating in the rotation tow program pursuant to subdivision f of section 20-519 of such code as added by section ten of this local law or denies such application for participation in such program. The commissioner of consumer affairs shall deny an application for participation in the rotation tow program submitted by any person authorized by the police commissioner to remove vehicles suspected of having been stolen and abandoned unless such person meets all the requirements for participation in such program set forth in section 20-519 of such code as added by section ten of this local law and regulations promulgated pursuant to such section 20-519. The commissioner of consumer affairs shall deny an application for participation in the rotation tow program submitted by any person authorized by the police commissioner to remove such vehicles if, after due notice and opportunity to be heard, he or she determines that such person has, on or after the effective date of this local law, engaged in conduct which constitutes a basis for disqualification from participation in such program pursuant to subdivision f of section 20-519 of such code as added by section ten of this local law or such person has, before the effective date of this local law, engaged in conduct which would have constituted a basis for suspending or revoking authorization to remove vehicles suspected of having been stolen or abandoned pursuant to the regulations promulgated under subdivision 1 of section 14-140 of such code repealed by section seven of this local law. If a person authorized by the police commissioner to remove vehicles suspected of having been stolen or abandoned fails to file an application to participate in such rotation tow program with the department of consumer affairs within thirty days after the effective date of this local law, such person's authorization by the police department shall become null and void and be of no further effect.

§ 14. No action or proceeding, civil or criminal, pending at the time when this local law shall take effect, brought by or against the city or the police department or any officer of such department, shall be affected or abated by the adoption of this local law or by anything contained herein; but all such actions or proceedings may be continued notwithstanding that certain functions, powers and duties of the police department or any officer thereof have by this local law been assigned or transferred to the department of consumer affairs; and such actions and proceedings may be prosecuted or defended by the commissioner of consumer affairs or the officer to which such functions, powers and duties have been assigned or transferred by this local law.

§ 15. This local law shall take effect two hundred and seventy days after its enactment into law provided that the department of consumer affairs may promulgate on or after the date of enactment of this local law any rules or regulations necessary for the implementation of the provisions of this local law and may take any other actions necessary for the administration of this local law.

§ 16. No later than the forty-fifth day after the date of enactment of this local law the commissioner of consumer affairs shall submit a written report to the council on his plan for implementing the regulatory authority concerning the licensing, inspection, enforcement, adjudication of violations and administration over the tow truck industry, as provided in § 20-498 of the administrative code of the city of New York as added by § 10 of this local law. The commissioner shall submit a copy of the final regulations promulgated pursuant to this local law to the council as soon thereafter as is expeditiously possible.

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