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CONTACT:
Larry Yellon
(516) 248-8270

New Regulations Allow New York City Process Servers to Continue Service Legal action dropped against DCA

July 20, 2011 (NEW YORK CITY) – Professional process servers in New York City will continue providing quality services to city residents following the settlement of a lawsuit Tuesday, July 19, 2011, with the New York Department of Consumer Affairs (DCA) that had seriously jeopardized their existence.

The agreement, which simplifies record-keeping for licensing, resolves many conflicts that had threatened process servers and agencies from going out of business, said Larry Yellon, president of both the National Association of Professional Process Servers (NAPPS) and the New York State Professional Process Servers Association (NYSPPSA). NYSPPSA is a chartered state association of NAPPS.

“NYSPPSA and DCA now have a shared goal of providing quality services to the legal system and ultimately justice for those who engage the system within city limits,” Yellon said. “We applaud DCA for recognizing the need to amend rules that were confusing and restrictive. The new rules are based on common sense and fairness, and will help agencies and process servers maintain compliance without upending their business practices.”

As part of the settlement, NYSPPSA agrees to drop all legal action against DCA. In late March, NYSPPSA was granted a partial restraining order to allow the two sides to continue negotiations over the new regulations. Prior to the court filing, NYSPPSA and the City had been negotiating in good faith and were making progress ahead of a March 21 deadline. NYSPPSA chose court action only after a request to extend that deadline was denied.

The settlement requires process servers to “conduct their activities within the confines of the new regulations, and notify the city if they fail to carry out their duties in a competent and lawful manner.”

In return, the amended city rules will clarify the record-keeping requirements in the following manner:

• Reporting requirement – Changes 24-hour reporting requirement to within two (2) business days after the last event recorded occurred.
• “Traverse” (contested service) – Modifies the reporting and research obligations for process servers and agencies when reporting the results of a traverse to DCA. The new rule significantly expands both research and reporting timelines and more definitively defines the search process.
• Filing process – The process server and agency only have to keep the file date of the affidavit if they physically filed it.
• Certified mailing – The process server will only have to keep the record number of a certified mailing only if they physically did the certified mailing.
• Record keeping – The amount of time process servers need to keep paper records is reduced from 7 years to 3 years.
• Digital records – The third-party option to maintain digital records have been changed. Now they can be generated at the time of request as long as the records are kept by a third party in a manner that the process server or the agencies are not able to edit them.
• Corrections & edits – The new rule adds a method for licensees to correct typographical errors in or inadvertent omissions from an entry into an electronic format.

Yellon stressed that NAPPS and NYSPPSA members are committed to being accountable, reliable and valuable to legal clients and city regulators. “NAPPS members follow a code of ethics and professional conduct, and as an organization we feel very strongly about the oversight and regulation of our own members,” he said. “This is a win-win for everyone involved.”

TIMELINE OF EVENTS / NYSPPSA vs. CITY OF NEW YORK DCA:

April 2010 – New York City Council passes and Mayor Bloomberg signs law regarding new regulations for Digital Record Keeping for Licensed Process Servers and Agencies; authorizes New York Department of Consumer Affairs (DCA) to promulgate rules.

December 2010 – DCA files new rules and holds initial hearing. New York State Professional Process Servers Association President Larry Yellon testifies in opposition to new rules, saying they go far beyond the intent of the law passed by the council.

February 2011 – NYSPPSA enters into negotiations with DCA seeking amendments to the rules
as proposed.

March 2011 – NYSPPSA files lawsuit seeking to stop implementation of rules as proposed by DCA. New York State Supreme Court, County of New York Justice Cynthia S. Kern grants NYSPPSA a partial injunction prohibiting DCA from implementing or enforcing “that portion of the Regulations which require that the security settings for the converted PDF are set so that no edits or changes may be made to the document.”

May 2011 – DCA publishes proposed amendments to Digital Record Keeping for Licensed Process Servers and Agencies rules.

June 2011 – Hearing on proposed amendments. DCA files “reply memorandum of law.” Oral arguments scheduled for July 20, 2011.

July 19, 2011 – Settlement reached and filed in court.

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The New York State Professional Process Servers Association (NYSPPSA) works as a unifier in the state to improve the professionalism of our members and communication with the rest of the legal community. For more information about NYSPPSA, visit www.nysppsa.org

The National Association of Professional Process Servers (NAPPS) is a worldwide organization founded on the principles of professionalism and high ethical standards. For more information about NAPPS, visit www.napps.org

SYNOPSIS:

• Currently, the practice of private investigation is not regulated or licensed by the state.
• This bill would regulate and license the practice of private investigation by private investigators.
• This bill would define terms; create the Alabama Private Investigation Board and provide for its membership, meetings, officers, powers, and duties; and would prohibit persons acting as a private investigator without a license, subject to criminal punishment as a Class A misdemeanor.
• Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

A BILL TO BE ENTITLED AN ACT:

Relating to the regulation and the licensure of private investigators unless licensed by this act; to create the Alabama Private Investigation Board to regulate and license private investigators; to provide for the membership, terms, filling of vacancies, powers, including discipline powers, and duties of the commission; to provide for application and licensure of private investigators; to provide penalties; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall be known and may be cited as the “Alabama Private Investigators Licensing and Regulatory Act.”

Section 2. As used in this act, the following terms shall have the following meanings:

(1) FELONY. A criminal offense that is defined and punishable under the laws of this state, or an offense committed outside the State of Alabama, which if committed in this state, would be subject to punishment by death or imprisonment in an Alabama penitentiary; a crime in any other state or a crime against the United States which is designated as a felony; or an offense in any other state, territory, or country punishable by imprisonment for a term exceeding one year.

(2) PRIVATE INVESTIGATION. The investigation by a person or persons for the purpose of obtaining information with reference to any of the following matters:

a. A crime committed or threatened against the United States or any state or territory of the United States, when operating under express written authority of the governmental official responsible for authorizing such investigation.

b. The identity, habits, conduct, movements, whereabouts, affiliations, associations, transactions, reputation, or character of any society, person, or group of persons.

c. The credibility of witnesses or other persons giving testimony in a criminal or civil action.

d. The whereabouts of missing persons, owners of unclaimed property or escheated property, or heirs to estates.

(3) PRIVATE INVESTIGATING. The act of any individual or company engaging in the business of obtaining or furnishing information with reference to any of the following:

a. A crime committed or threatened against the United States or any state or territory of the United States.

b. The identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputations, or character of any person.

c. The location, disposition, or recovery of lost or stolen property.

d. The cause or responsibility for fires, losses, accidents, damages, or injuries to persons or to property.

(4) PRIVATE INVESTIGATOR. a. A person who performs one or more of the private investigation services or private investigating services defined and regulated by this act.

b. A person who, for consideration, advertises as providing or performing private investigation. The term does not include an informant who, on a one time or limited basis, as a result of a unique expertise, ability, or vocation, and who provides information or services while under the direction and control of a licensee of the board, that would otherwise be included in the definition of private investigation.

(5) PRIVATE INVESTIGATOR or INDIVIDUAL LICENSEE. A person who is engaged in private investigating and licensed in accordance with this act.

Section 3. No person shall hold himself or herself out to the public as a private investigator or use any term, title, or abbreviation that expresses, infers, or implies that the person is licensed as a private investigator unless the person at the time holds a valid license to practice private investigating as provided in this act. All applicants shall pass a criminal background check based on criteria established pursuant to Section 4.

Section 4. (a) There is created the Alabama Private Investigation Board. The membership of the board shall reflect the racial, gender, geographic, urban and rural, and economic diversity of the state. The board shall consist of the following members, each of whom shall be a resident of this state, appointed as follows:

(1) Three persons appointed by the Governor who shall have been principally engaged in the activities of private investigation in this state for at least five years prior to the date of their appointment. Initially, the Governor shall appoint two members for a term of two years and one member for a term of three years. Thereafter, successor members shall be appointed for terms of four years each.

(2) One person appointed by the Lieutenant Governor, who shall have been principally engaged in the activities of private investigation in this state for at least five years prior to the date of their appointment. Initially, the Lieutenant Governor shall appoint the member for two years. Thereafter, successor members shall be appointed for terms of four years.

(3) One person appointed by the Speaker of the House of Representatives who shall have been principally engaged in the activities of private investigation in this state for at least five years prior to the date of appointment. Initially, the Speaker of the House of Representatives shall appoint the members for two years. Thereafter, successor member shall be appointed for terms of four years.

(4) One person appointed by the Attorney General who shall have been principally engaged in the activities of private investigation in this state for at least five years prior to the date of appointment. Initially, the Attorney General shall appoint the member for two years. Thereafter, successor members shall be appointed for terms of four years.

(5) One person appointed by the Alabama Private Investigators Association who shall have been principally engaged in the activities of private investigation in this state for at least five years prior to the date of appointment. Initially, the Alabama Private Investigators Association shall appoint the member for two years. Thereafter, successor members shall be appointed for terms of four years.

(b) Following the initial appointments, all successor members of the board shall be appointed for a term of four years and shall serve until their successors are appointed and qualified by subscribing to the constitutional oath of office, which shall be filed with the Secretary of State.

(c) Any vacancy occurring on the board shall be filled by the appointing authority of the vacating member for the unexpired term.

(d) No member shall be appointed to succeed himself or herself for more than one full term.

(e) The appointing authority may remove a member of the board for misconduct, incompetency, or willful neglect of duty. The board may recommend to the appointing authority suggested administrative actions that may be taken against a board member for missing an excessive amount of meetings.

(f) Each member of the board shall receive a certificate of appointment from the Governor before entering upon the discharge of the duties of office.

Section 5. (a) The board is declared to be a quasi-judicial body. Absent negligence, wantonness, recklessness, or deliberate misconduct, the members or the employees of the board are granted immunity from civil liability and may not be liable for damages when acting in the performance of their duties under this act.

(b) Board members shall be defended by the Attorney General in regard to any litigation filed against them because of the performance of their duties under this act.

Section 6. At the initial meeting of the board and every four years thereafter, the members of the board shall select from among their members a chair and vice chair who shall be private investigators and who shall each have the power to do all things necessary and proper for carrying out the provisions of this act not inconsistent with this act or the laws of this state.

Section 7. (a) The board may promulgate rules necessary to implement this act and accomplish its objectives subject to the Alabama Administrative Procedure Act.

(b) The board may promulgate and establish cannons of ethics and minimum acceptable professional standards of practice for licensees within any rules that it adopts.

(c) The board shall be entitled to the services of the Attorney General in connection with the affairs of the board.

Section 8. (a) The board shall establish regular and special meetings for the purpose of transacting its business. All members of the board shall be notified of the time and place of each meeting pursuant to the Alabama Open Meeting Act.

(b) A majority of the board shall constitute a quorum at any meeting of the board.

Section 9. (a) Except as otherwise provided in this act, it shall be unlawful for any person to act as a private investigator, without first obtaining a license from the board. For prosecution purposes a violation of this act is classified as a Class A misdemeanor.

(b) All licenses issued to private investigators before the enactment of this act shall continue in effect until their expiration. Each holder of a license may thereafter obtain a renewal of the equivalent license under this act by complying with the terms and conditions for renewal prescribed in this act.

(c) Each licensee licensed in accordance with this act shall designated a physical address where his or her records are to be kept.

Section 10. An application and all information on an application for licensure as a private investigator shall be treated as confidential and shall be filed with the board on forms prescribed by the board. The application shall include all of the following information of the applicant:

(1) His or her full name.

(2) His or her date and place of birth.

(3) All residences during the immediate past five years.

(4) All employment or occupations engaged in during the immediate past five years.

(5) Three sets of classifiable fingerprints.

(6) A list of convictions and pending charges involving a felony or misdemeanor in any jurisdiction.

Section 11. (a) Each individual applicant shall meet the following criteria the he or she:

(1) Is at least 19 years of age.

(2) Is a citizen of the United States or a legally present resident alien.

(3) Has not been declared by any court of competent jurisdiction incompetent by reason of mental defect or disease unless a court of competent jurisdiction has subsequently declared the applicant competent.

(4) Has not been convicted of a crime of moral turpitude, with the board having the final determination on the interpretation of moral turpitude.

(5) Is of good moral character.

(6) Has passed an examination to be administered twice annually by the board designed to measure knowledge and competence in the investigation field.

(b) A study guide shall be provided to any applicant seeking to obtain an initial or renewal license under this act.

(c) Any investigator currently licensed in the state of Alabama shall not have to meet the initial application requirements of this act, but shall be issued a license upon application.

Section 12. (a) Upon receipt of an application for a license pursuant to this act, nonrefundable, nonprorateable, application fees shall be submitted for the following services:

(1) A request that the Alabama Bureau of Investigation compare the fingerprints submitted with the application to fingerprints filed with the Alabama Bureau of Investigation. On subsequent applications, the Alabama Bureau of Investigation, at the request of the board, shall review its criminal history files based upon the name, date of birth, sex, race, and Social Security number of an applicant whose fingerprints have previously been submitted to the bureau for any new information since the date of the fingerprint comparison, and shall furnish any information thereby derived to the board.

(2) A request to submit the fingerprints to the Federal Bureau of Investigation for a search of its files to determine whether the individuals fingerprinted have any recorded convictions.

(b) After the approval of the application by the board, the board shall issue a license in a form prescribed by the board to qualified applicants upon its receipt of a nonrefundable, nonprorateable, private investigator license fee as set by the board.

(c)(1) If an application for a license is denied, the board shall notify the applicant in writing and shall set forth the grounds for denial. If the grounds are subject to correction by the applicant, the notice shall so state and specify a reasonable period of time within which the applicant shall make the required correction.

(2) The applicant shall be allowed to submit reason for reconsideration to the board within 30 days from the date of receipt of denial.

(d) The board shall issue an 8×10 license to all licensees which must be displayed on a wall of the workplace of the licensee. This license shall be deemed property of the State of Alabama and subject to forfeiture to the state upon revocation.

Section 13. (a) The board shall issue every private investigator licensee an identification card that shall contain the following information of the licensee:

(1) Name.

(2) Photograph.

(3) Physical characteristics.

(4) Private investigators license number.

(5) Expiration date of license.

(b) An identification card, which shall be issued in a credit card size and shall be permanently laminated.

(c) The identification card shall be carried on the person of the licensee when engaged in the activities of the licensee.

Section 14. Making a false statement to the board shall be punishable by a civil penalty not to exceed one thousand dollars ($1,000) and assessment of the maximum application fee.

Section 15. Upon receipt of the application and applicable fees, the board shall conduct an investigation to determine whether the statements made in the application are true.

Section 16. (a) All licenses issued or renewed under this act shall be valid for a period of two years from the date of issuance. The board shall provide each licensee with a renewal application 60 days prior to the expiration of the license.

(b) Each application for renewal shall be reviewed for criminal convictions and civil fraud findings.

(c) An administrative monetary penalty prescribed by the board shall be assessed on any renewal application postmarked after the expiration date of the license.

(d) No renewal application may be accepted more than 30 days after the expiration date of the license or after September 30 of the calendar year.

Section 17. (a) The board may suspend, revoke, or refuse to issue or renew any license issued by it upon finding that the holder or applicant has committed any of the following acts:

(1) A violation of this act or any rule promulgated under this act.

(2) Fraud, deceit, or misrepresentation regarding an application or license.

(3) Knowingly and willfully making a material misstatement in connection with an application for a license or renewal.

(4) A conviction by a court of competent jurisdiction of a felony or a misdemeanor if the board finds that the conviction reflects unfavorably on the fitness for the license.

(5) The commission of any act which would have been cause for refusal to issue the license or registration card had it existed and been known to the board at the time of issuance.

(b) In addition to, or in lieu of, any other lawful disciplinary action under this section, the board may assess a civil penalty not exceeding two thousand dollars ($2,000) for a violation of this act.

(c) A license may be suspended for the remaining license period and renewed during any period in which the license was suspended.

Section 18. (a) No licensee or applicant shall be required to obtain any authorization, permit, or license from, or pay any other fee or post a bond in, any municipality, county, or other political subdivision of this state to engage in any activity regulated under this act.

(b) Notwithstanding subsection (a), a municipality, county, or other political subdivision of this state may impose a bona fide occupational tax on a licensee.

Section 19. The board may negotiate and enter into reciprocal agreements with the appropriate officials in other states to permit licensed investigators who meet or exceed the qualifications established in this act to operate across state lines under mutually acceptable terms.

Section 20. The board shall provide a copy of this act and any rules promulgated under this act to the following:

(1) Each licensee, every two years.

(2) Any other person, upon request, for a reasonable fee established by the board.

Section 21. The following acts when committed by an individual licensed as a private investigator in Alabama shall constitute a violation punishable as a Class A misdemeanor:

(1) To knowingly make a material misrepresentation as to the ability of the individual to perform the investigation required by a potential client in order to obtain employment.

(2) To make unsubstantiated monetary charges to a client for services not rendered or transportation not utilized.

(3) To knowingly make a false report to a client in relation to the investigation performed for a client.

(4) To continue an investigation for a client when it becomes obvious to the investigator that a successful completion of an investigation is unlikely without first advising the client and obtaining the approval of the client for continuation of the investigation.

(5) To reveal information obtained for a client during an investigation to another individual except as required by law.

(6) Persons licensed pursuant to this act are required to report any suspected instances of child abuse or neglect and must report their suspicions to local law enforcement or the Department of Human Resources, or both.

Section 22. The Administrative Procedure Act shall govern all matters and procedures respecting the hearing and judicial overview of any contested case.

Section 23. This act does not apply to the following:

(1) An employee of any business or entity that is not primarily engaged in the business of private investigations or private investigating when that employee is performing duties related to his or her employment.

(2) An investigation of the internal affairs of a private business entity investigating a current or prospective employee.

(3) An employee of any business or entity that is not primarily engaged in the business of private investigations or private investigating when that employee is working under a contract for his or her services that his or her employer signed with a third party.

(4) Any person or professional (including without limitation attorneys providing legal services) who is not primarily engaged in the business of private investigations or private investigating, but who in conjunction with his or her business or profession may occasionally perform private investigations or private investigating.

(5) Any business or entity that is not primarily engaged in the business of private investigations or private investigating.

(6) A consumer reporting agency as defined by the Federal Fair Credit Reporting Act.

Section 24. (a) There is created within the board a division of investigation that shall be its official investigative agency.

(b) Each licensee shall provide to the investigative staff all records that pertain to the exact nature of the complaint under investigation and upon issuance of a subpoena.

(c) The board or any executive director of the board may subpoena those persons or documents necessary to any investigation undertaken under this act if other means including, but not limited to, notification by return receipt registered United States mail, have not produced the desired results.

Section 25. (a) Each licensee shall complete eight hours of continuing professional education acceptable to the board in each calendar year.

(b) The board shall make every effort to ensue at least one seminar per year will be held in each congressional district of the state providing an opportunity to fulfill the continuing professional education requirements of this section, which shall include at least one hour per year on ethics.

(c) The board shall promulgate rules necessary to carry out this section.

Section 26. (a) Any person offering private investigator training must first be certified by the board. The board shall ensure that the instructors employed by the training provider possess both the experience and academic credentials to ensure that the curriculum and instruction will be beneficial to those seeking to enter the profession. In order to qualify as a certified trainer or instructor, or both, the trainer shall meet the following criteria:

(1) He or she is 19 years of age.

(2) He or she has had at least three years’ experience satisfactory to the board with an investigative company or proprietary entity or with any federal, United States Military, state, county, or municipal law enforcement agency and relating to the block of instruction.

(3) He or she is personally qualified to conduct the training required by this act and is certified by the board which shall establish standards for the instruction process.

(b) A certified trainer, in his or her discretion, may instruct personally or use a combination of personal, instruction, audio, and visual training aids.

(c) To assist in the implementation of a training program, the certified trainer may use as an assistant trainer one who meets the following requirements:

(1) He or she is 19 years of age.

(2) He or she has had at least one year of experience with an investigative company or any United States Military, state, county, or municipal law enforcement agency.

(d) A certified trainer may be an employee of a private investigative or propriety agency or, if not, employed by an agency as a company under this act.

(e) The certified trainer shall certify that he or she has successfully completed the training and shall submit the certification to the board.

(f) The training program, fees, and requirements shall be established by rules promulgated by the board.

Section 27. No action taken under this act shall preclude prosecution under any other law of this state.

Section 28. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Amendment 621, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, because the bill defines a new crime or amends the definition of an existing crime.

Section 29. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

“The New Hampshire League of Investigators (NHLI) is proud to announce that House Bill 651, a bill relative to regulation of private investigation agencies and security services (The NH PI Bill) passed both the House and Senate on June 2nd and is on the way to the Governor for signature.

The bill was the result of years of hard work dating back to 2004/2005 by the members of NHLI, the NH Department of Safety, (especially Assistant Commissioner Earl M. Sweeney who did yeoman’s work along side NHLI members), and other municipal and private agencies. We would also like to acknowledge all the New England states PI associations (NECOSIA) and NALI for their input and letters supporting the bill and to Kitty Hailey, CLI, CFE (http://www.kittyhailey.com/ ) who authored a great letter for the House and Senate committees.

NHLI members attended every work session and hearing, networked with their Representatives and Senators and did everything to assist in getting the bill through.

A special thank you goes to State Representative Jordan Ulery who authored the original 2005 bill and the current bill and steered it through the process. Representative Ulery is a licensed private investigator and and member of the NHLI.

Highlights of the bill include:

• The creation of an advisory board with three positions to be filled by NH licensed PIs.
• Replaces the term “detective agencies” with “private investigative agencies.”
• Brings bail enforcement agencies and agents under the law.
• Excludes certain professionals from the law.
• Makes performing covered services without a license either a misdemeanor of felony depending on the circumstances. Fines are to be determined at a later date.
• Adds certifications from the National Association of Legal Investigators (NALI) or the American Society of Industrial Security (ASIS) as a requirement for some applicants.
• Licenses employees of agencies individually and issues them ID cards.
• For those obtaining an “armed” license defines training for both handgun and shotgun.
• Protects license holders when reporting crimes in good faith.”

The link to the bill is: http://www.gencourt.state.nh.us/legislation/2010/HB0651.html

Alan

Alan Tate
Licensed Professional Investigator
METRO Investigation
PO Box 850309
Boston MA 02185-0309

OFC 617-773-4641
FAX 617-472-7968

MA License P-726
NH License 55091

President, Licensed Private Detectives Association of Massachusetts, 2000-2001 and 2007-2008
Director, New Hampshire League of Investigators
Legislative Chair, NHLI
President, New England Council of State Investigator Associations, 2007

Member:
Licensed Private Detectives Association of Rhode Island
Vermont Association of Investigators and Security Service
Maine Licensed Private Investigators Association
Investigative & Security Professionals for Legislative Action
National Council of Investigation and Security Services

The newly passed bill requires all process servers serving process in New York City adhere to the following:

• Obtain a license from the Department of Consumer Affairs (DCA)  and pass an examination on the New York Rules of Civil Procedure;
• Log all service attempts when serving papers with an electronic system (such as a GPS system);
• Maintain records and electronic service logs for a period of seven years;
• Independent process servers must obtain a $10,000 surety bond;
• Process serving companies must obtain a $100,000 surety bond with the city to guarantee compliance with the regulations;
• Provide a statement of employee rights and employer responsibilities to every process server under their employ; and
• Maintain signed documents that employees understand these rights and responsibilities.

The new NYC legislation (Int 0006-2010, Version A) reads as follows:

A Local Law to amend the administrative code of the city of New York, in relation to process servers.

Be it enacted by the Council as follows:

Section 1.  Section 20-403 of the administrative code of the city of New York is amended to read as follows:

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.

§2. Section 20-404 of the administrative code of the city of New York is amended to read as follows:

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.

§3. Section 20-406 of the administrative code of the city of New York is amended by adding a new subdivision c to read as follows:

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.

§4. Subchapter 23 of chapter 2 of title 20 of the administrative code of the city of New York is amended by adding new sections, 20-406.1, 20-406.2, 20-406.3 and 20-406.4 to read as follows:

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.

§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.

§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.

§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 service of process in the city of New York.

§5. Section 20-409 of the administrative code of the city of New York is amended by adding a new subdivision c to read as follows:

c. Upon application for renewal of a license issued pursuant to this subchapter, applicants 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.

§6. Subchapter 23 of chapter 2 of title 20 of the administrative code of the city of New York is amended by adding new sections 20-409.1 and 20-409.2 to read as follows:

§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.

§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.

§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.

§ 7. Subchapter 23 of chapter 2 of title 20 of the administrative code of the city of New York is amended by adding a new section 20-410 to read as follows:

§ 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.

§8. This local law shall take effect one hundred eighty days after enactment provided, however that the commissioner of consumer affairs shall take all actions necessary for its implementation, including the promulgation of rules, prior to such effective date and except that section 20-410 shall take effect sixty days after the adoption of rules promulgated pursuant to such section.

This article is posted courtesy IRBseach, LLC.

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• Submit to a background check
• Pass a licensing exam
• Meeting continuing education requirements
• Carry professional liability insurance

Besides individual investigators, the law also requires licensing for private investigator agencies, some employees and trainers.

The Missouri Division of Professional Registration has begun receiving and approving license applications since Feb. 1, but says there are potentially hundreds of unlicensed investigators who have still not applied for a private investigator license.

“Private investigators in Missouri need to know they face consequences if they continue to practice without a state license,” says Douglas Mitchell, vice-chairman of the State Board of Private Investigator Examiners and an investigator from Warrensburg. “At the same time, we understand this is a significant transition for these professionals.  Those applicants who have questions should contact the board immediately to ensure a smooth process for bringing them into compliance.”

Mitchell says private investigators will benefit from the new regulations, which will for the first time bring testing, oversight and accountability to the industry.

The new licensing requirements are defined in Chapter 324.1100 through 324.1148 of the Missouri Revised Statutes. The board has also written regulations for enforcement, found in 20 CSR 2234.

An application form is available from the board’s Web site, pr.mo.gov. Applications are also available by calling the board office at (573) 522-7744.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals.The department’s seven divisions work to maintain consumer confidence by examining and monitoring industries and professions and by establishing coherent and evolving policies. DIFP works to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.

This article was written by L. Scott Harrell and is posted courtesy IRBseach, LLC.

IRBsearch offers The Most information, The Best data sources, and The Fastest delivery for locating people, businesses, and their assets. With one click you can search billions of records in just a fraction of a second.

To view and use this great system, go to Legislation Tracking

This is a live system that is updated daily. You will now be able to stay on top of the ever-changing legislation that occurs in your state and around the country. Just click on the interactive map to choose the state with which you are concerned.

What we have created on the ISPLA website is a first for the investigative and security professions and has never before been provided by any other professional organization. The ISPLA website is the definitive location for up-to-the-minute legislative activity. For a limited time only, the state and federal legislative tracking system will be available free of charge to all who visit the ISPLA website. In the future, this system will be accessible only to members.

ISPLA continues to move forward and be proactive. In the past few months, ISPLA representatives have been speaking and working with members of Congress and regulatory agencies on important issues that impact your businesses. At this time, bills and regulatory issues are proliferating. Issues of continuing education, identity theft, social security number access, and more, are all continually evolving; and ISPLA is monitoring what is happening across the country. We are available to assist you at the state level as well.

In the coming weeks, ISPLA representatives will be meeting individually with key members of Congress and their staff on critical issues involving our profession. To date, ISPLA representatives have made personal contact with over 300 members of Congress.

It is imperative that we not wait to act until legislation has been proposed that will adversely affect our ability to do business. Business as usual in these trying times is not the answer. Being proactive and building relationships is the name of the game. Having a political action committee is as well. We are the first national association representing investigators and security professionals to form a federal PAC. If you want more information on how you can help your profession in both the state and national arenas, go to the ISPLA website now: www.ispla.org

Support your profession by joining ISPLA.