§ 2-232c Process Server Trust Fund.

(a) No license under Subchapter 23 of Chapter 2 of Title 20 of the Administrative Code is required of any employee of any city, state or federal department or agency, who is acting within the scope of his employment.

(b) No license under Subchapter 23 shall be required of any attorneys duly admitted to practice in the State of New York.

(c) No license under Subchapter 23 shall be required of any employee of a process server or attorney who does not actually serve process.

(d) The provisions of Subchapter 23 shall only apply to service of process within the City of New York.

§ 2-232a Surety Bond Requirements for Process Server and Process Serving Agencies.

(a) The surety bond required under § 20-406.1 of the Administrative Code shall be paid in full and must be effective for the entire term of the license.

(b) If a process server or process serving agency's surety bond lapses for any reason, the license issued pursuant to § 20-403 of the Administrative Code shall become void for such process server or process serving agency.

§ 2-232b Employee Exemption from Bond.

(a) Any process server seeking exemption from the bond requirement pursuant to § 20-406.1(a) of the Administrative Code because he or she serves process exclusively as an employee of a licensed process serving agency shall furnish to the Department upon application or renewal, a certification from the licensed process serving agency for which he or she works in a form approved by the Commissioner that affirms that

(1) the process server serves process exclusively as an employee of the process serving agency;

(2) the bond that the licensed process server agency has furnished to the commissioner is conditioned upon the process server's compliance with the laws and rules governing the activities of a process server and upon the further conditions set forth in § 20-406.1(a) of the Administrative Code; and

(3) the process serving agency acknowledges that it must notify the Department in writing within five (5) days of the date that the process server ceases to serve process exclusively as an employee of the process serving agency.

(b) The process server or the process serving agency shall provide additional documentation that the Department may seek regarding the process server's employee status.

§ 2-232c Process Server Trust Fund.

(a) Establishment. There is hereby established a Process Server Trust Fund (hereinafter, "the Fund") to provide for the payment of outstanding awards to aggrieved consumers and fines owed to the City. The Fund will be administered by the Comptroller of the City of New York pursuant to Section 93(h) of the Charter.

(b) Participation in the Fund.

(1) To qualify for participation in the Fund, an applicant for a process server license or renewal therefore must submit with such server's application a copy of its completed application to two sureties approved by the Commissioner for the bond required by § 20-406.1 of the Administrative Code of the City of New York and the original copies of the rejection or denial of such application by such sureties. Pursuant to such section, process serving agencies are not eligible to participate in the Fund.

(2) Any process server who qualifies for participation in the fund may participate by submitting with the application for a process server license or renewal thereof a certified check or money order in the amount $1,000, made payable to the New York City Department of Consumer and Worker Protection for depositing the amount in such Fund.

(3) A bonded licensee may participate in the Fund in lieu of continued compliance with the bond requirement of § 20-406.1(a) of such Code by submitting proof that consists of an original copy from the process server's current surety denying renewal and the completed applications and original denials from two additional sureties approved by the Commissioner, and upon submitting to the Department a certified check or money order in the amount of $1,000 made payable to the New York City Department of Consumer and Worker Protection, prior to the expiration or cancellation of the licensee's bond.

(4) The required deposit to be made by applicants to participate in the Fund may not be refundable upon the issuance of a process server license. If the Department denies issuance of a license or renewal thereof, the deposit made by the applicant must be refunded within thirty days after the application for a license or renewal thereof is denied.

(5) Participation in the Fund does not relieve a licensee of any obligation to pay awards or fines imposed by the Department or judgments or arbitration awards rendered against the licensee by a court of competent jurisdiction. If a process server's license is revoked, surrendered or the process server fails to renew its license, and the Fund is invaded to pay an award, fine or judgment that was rendered against such process server pursuant to the provisions of the Code or these rules, no license may be issued or reinstated to such process server unless the amount(s) paid out of the Fund on behalf of such process server is reimbursed by such process server in full.

(1) If the Department has revoked a process server's license or the licensee has surrendered or failed to renew the license, the Commissioner may require that disbursements be made from the Fund to pay to the City any fine, penalty or other obligation the City imposes relating to the violation of Subchapter 23 of Chapter 2, Title 20 of the Administrative Code of the City of New York and any rules promulgated thereunder or to pay a final outstanding judgment recovered in an action arising out of the violation of the provisions of such subchapter.

(2) No disbursement may be made from the Fund to pay an award, fine or judgment that is rendered against a licensee who has furnished a bond pursuant to the requirements of § 20-406.1(a) of the Administrative Code of the City of New York or against a process server who was not licensed by the Department or a participant in the Fund at the time of the violation.

(3) Disbursement from the Fund may be made at the discretion of the Commissioner or his or her designee, provided, however, that invasion of the fund must be limited to no more than $10,000 for all awards, fines or judgments arising out of a single service of process.

(4) The Commissioner or his or her designee may order that partial payment of awards, fines or judgments be made from the Fund.

(5) Nothing contained herein may be construed to limit the rights and remedies of any party, including the Department, to pursue a cause of action against a process server who is a participant in the Fund.

(6) Nothing contained herein may be construed to provide for the payment of awards or judgments rendered against Fund participants in personal injury actions.

(d) Accounting. The Commissioner must, by January 31 of each year, cause an accounting to be made of all of the Fund's activities during the preceding calendar year.

(Amended City Record 9/23/2022, eff. 10/23/2022)

§ 2-232d Testing.

Every person who applies for a process server license or renewal thereof shall be required to pass an examination prior to being issued a license or renewal. Such examination shall test the applicant or licensee's knowledge regarding proper service of process within the city of New York and familiarity with relevant laws and rules. The fee for this examination will be $75 and is not refundable. An applicant who fails the exam on the first attempt may take the examination a second time without an additional fee. After the second successive failure, the applicant's application or renewal will be denied and he or she must reapply for a process server license.

(a) Duty of individual process server to keep records. Each process server must maintain records of all service made by them in compliance with the provisions of section 89-cc of the New York General Business Law and § 20-406.3 of the Administrative Code of the City of New York, as follows:

(1) Maintenance of records of service. Process servers must maintain records of all service and attempted service by keeping bound paginated volumes or by storing electronic records with a third party contractor.

(i) Bound paginated volumes. Where a process server maintains records in bound paginated volumes, the process server must record each entry separately in chronological order contemporaneous with service or attempted service. The process server must make entries in only one volume at a time, which must contain every attempted and effected service made by the process server, until all of the available space in the volume is filled. A process server who maintains records in bound paginated volumes must also maintain an electronic copy of such volumes by scanning records into an image file that legibly reproduces in all details the original record the process server maintains in bound paginated volumes. Such electronic record must be kept as follows:

(A) the image file must be named with the date of the service or attempted service recorded in the bound paginated volume and the process server's license number, and must be date and time stamped with the date and time that the file was created; and

(B) such scanning must be done within three business days from the last event recorded in the records; and

(I) ensures the authenticity, reliability and integrity of the scanned image file;

(II) permits the efficient retrieval of the scanned image file;

(III) contains a backup support system such that the scanned image file must be capable of being reconstructed if an electronic or computer malfunction or unforeseen incident resulting in the destruction of the system or the information contained therein; and

(D) where the process server stores scanned image files on a portable media device, such portable media device must be labeled with the process server's last name, license number and the date range of the records stored on the device;

(ii) Electronic records with a third party contractor. Where a process server maintains electronic records with a third party contractor, the process server must submit recorded entries in chronological order to such contractor within three business days of service or attempted service. The process server must enter a contract with a contractor pursuant to which such contractor must be required to provide services and perform functions consistent with 6 RCNY § 2-233(c), provided, however, the process server may use the services and functions for electronic record storage that a process serving agency has made available to process servers under a contract with a third party contractor.

(2) Content of records of service. Each record of service and attempted service must include, at a minimum, the following information:

(i) name of the process server, which will be entered as last name, first name, provided, however, that where a process server keeps records in bound paginated volumes, the name of such process server may be entered on the first page of each bound paginated volume, rather than each record;

(ii) the license number of the process server, which will be specified as a seven-digit number, where the first number must be zero if the process server's license number is less than seven digits, provided, however, that where a process server keeps records in bound paginated volumes, the license number of such process server may be entered on the first page of each bound paginated volume, rather than each record;

(iii) the name and license number of the process serving agency from whom the process served was received, or, if not received from a process serving agency, of such other person or firm from whom the process served was received;

(iv) whether service was effected, as indicated by a Y for yes or N for no;

(v) the title of the action or proceeding or a reasonable abbreviation thereof;

(vi) the name of the intended recipient of the process, which must be entered in two data fields such that the first data field is the last name of the intended recipient, or, if not a natural person, the name of the entity, and the second data field is the first name of the intended recipient if a natural person;

(vii) the name of the individual to whom process was delivered, which must be entered in two data fields such that the first data field is the last name of the individual, and the second data field is the first name of the individual;

(viii) the date that service was attempted or effected, which must be entered as MM/DD/YYYY;

(ix) the time service was attempted or effected, which must be entered as military time;

(x) the address where service was attempted or effected, which must be entered as three different fields such that one field will be for the street address and any apartment, suite, or room number, the second field will be for the city or borough, and the third field will be for the ZIP code;

(xi) the nature of the papers served;

(xii) the court in which the action has been commenced, which must be entered as either Civil Court NYC, Civil Supreme, Criminal, Housing (L/T), or District Court, followed by the county of the court, the judicial department if appellate, or the federal district;

(xiii) the full index number, which must be entered with all information necessary to identify the case, such as XXXXX/XX, unless the case is a Civil Local matter, in which case, it will include the prefix of CV, CC, LT, MI, NC, RE, SC, or TS;

(xiv) if service was effected pursuant to subdivisions (1) through (3) of CPLR § 308, a description of the person served which must consist of seven fields, including sex, color of skin, hair color, approximate age, height, weight, and any other identifying features provided by the process server;

(xv) the type of service delivery, which must be entered as a P for personal delivery service, an S for substituted service, a C for conspicuous service delivery, a CO for corporate service, a PA for partnership service, and a V for VTL service;

(xvi) if service was effected pursuant to subdivision (4) of CPLR § 308 or subdivision (1) of RPAPL § 735, a description of the door and the area adjacent including the color and composition of hallway walls, color and composition of hallway floor or doorstep, and location of premises in relation to stairs, elevator or entranceway;

(xvii) if service is effected pursuant to RPAPL § 735(1) using registered or certified mail, the postal receipt number of registered or certified mail; and

(xviii) if an affidavit of service is filed with the court by the process server, the record shall include the date of such filing.

(b) Duty of licensed process serving agencies to keep records. Every process serving agency must keep complete and accurate records for each individual process server to whom it assigns or distributes process to be served. Such records must be kept in a searchable manner that permits ready identification of (i) the daily activity of each such individual process server and (ii) any or all process assigned or distributed for service by the name of the person or entity from whom the process serving agency received such papers for service.

(1) Maintenance of records. Process serving agencies must maintain electronic records by copying records to an electronic records management system or by submitting records to a third party contractor.

(i) Electronic records management system. If the process serving agency elects to store records itself rather than through a third party contractor, it must save the record to an electronic records management system within three business days from the last event recorded in the record. Such electronic records management system must maintain electronic records, including the required records described in 6 RCNY § 2-233(b)(2), in a manner that:

(A) ensures the authenticity, reliability and integrity of the electronic records;

(B) permits the efficient retrieval of electronic records;

(C) contains a backup support system such that the electronic records must be capable of being reconstructed if an electronic or computer malfunction or unforeseen incident results in the destruction of the system or the information contained therein.

(ii) Third party contractor. Where a process serving agency maintains its records with a third party contractor, the process serving agency must submit records to such contractor within three business days from the last event recorded in the record. The process serving agency must enter into a contract with such contractor pursuant to which such contractor must be required to provide services and perform functions consistent with 6 RCNY § 2-233(c).

(2) Required records. Process serving agencies must maintain, at a minimum, the following records:

(i) An electronic file that legibly reproduces the original record of service or attempted service containing all of the individual process server's records maintained pursuant to 6 RCNY § 2-233(a) of this rule for each day on which the individual process server attempted or effected service of the process assigned or distributed to the individual process server by the process serving agency;

(ii) A copy of every routing sheet, work order or other written instruction given to the individual process server;

(iii) Copies of any notes, memoranda or other writings submitted by the individual process server containing information related to the attempted or effected service of process assigned by the process serving agency;

(iv) A copy of every affidavit of service signed by the individual process server for service assigned by the process serving agency;

(v) If an affidavit of service is filed with the court by the process serving agency, the record must also include the date of such filing.

(c) Storage of records with a third party contractor. Where a process server or process serving agency uses a third party contractor to maintain records consistent with 6 RCNY § 2-233(a)(1)(ii) or 6 RCNY § 2-233(b)(1)(ii), respectively, such process server or process serving agency must enter a contract with such contractor pursuant to which such contractor must be required to provide services and perform functions that include, but are not limited to:

(1) maintain a daily backup of all submitted data, and ensure all data is available for review upon request of any and all interested parties;

(2) maintain the original electronic record submitted by the process server unaltered for a period of not less than seven years;

(3) prohibit the process server, the process serving agency, or any person to alter the original record;

(4) maintain the records in a manner that will permit retrieval by the DCWP license number of the process server, the DCWP license number of the process serving agency that has distributed the process for service, the name of the plaintiff or petitioner, the name of the defendant or respondent, the docket number (if any), the name of the person to whom process is delivered and a unique file identifier of the process being served;

(5) maintain the records in a manner that will ensure that their integrity is adequate for admissibility in a judicial proceeding under the rules of evidence applicable in the state of New York;

(6) provide a backup support system such that the electronic records must be capable of being reconstructed if an electronic or computer malfunction or unforeseen incident results in the destruction of the system or the information contained therein;

(7) produce upon request by the Department, a copy of the electronic records, or any reasonably described part involved, certified to be true and accurate;

(8) produce to the Department upon request an MS Excel spreadsheet of the electronic records containing the fields and data format set forth in 6 RCNY § 2-233(a)(2).

(d) Integrity of records. Corrections to bound paginated volumes and electronic records with a third party contractor must be made only as follows:

(1) Bound paginated volumes. A process server may make corrections in bound paginated volumes only by drawing a straight line through the inaccurate entry and clearly printing the accurate information directly above the inaccurate entry. All other methods of correction, including but not limited to erasing, opaquing, obliterating or redacting, are prohibited.

(2) Electronic records with a third party contractor. A process server and process serving agency must ensure that permissions pertaining to electronic records submitted to a third party contractor will be secured so that the data cannot be deleted upon submission to such contractor. No process server or process serving agency may tamper with data or properties of any electronic record kept pursuant to this section after a file is made by modifying, amending, deleting, rearranging or in any other way altering any such data or properties including, but not limited to, using a meta data scrubber or similar device or program. If a typographical error has occurred or if data contained in the process server or process serving agency's record was accidentally omitted from the electronic data entry, the process server or process serving agency must promptly make an amendment to their records of service with the third party contractor. A process server who attempted or effected process may make other corrective amendment, or supplement (such as concerning filing or additional mailing), to the record of service with the third party contractor. Any amendment must be made by creating a new entry in which the original record must be identified by reference in italics within the new entry.

(e) Retention and production of records.

(1) Process servers and process serving agencies must retain all records required to be maintained pursuant to this section for a period of seven years from the date of service. Where a process server is employed as a process server by any person, a copy of such records must also be maintained by such person at such person's principal office for the same period;

(2) Upon request by the Department, process servers and process serving agencies must produce a copy of any record they are required to maintain pursuant to this section, or any reasonably described part involved, certified to be true and accurate;

(3) Except where a process server maintains records in bound paginated volumes, process servers must produce, upon request by the Department, the information required to be maintained pursuant to 6 RCNY § 2-233(a)(2) as an MS Excel spreadsheet in a format provided by the Department on its website;

(4) Upon request by the Department, process serving agencies must produce the information required to be maintained pursuant to 6 RCNY § 2-233(a)(2) as an MS Excel spreadsheet in a format provided by the Department on its website.