2013 New York Consolidated Laws
GBS - General Business
Article 39-G - (899-AAA - 899-BBB) DOCUMENT DESTRUCTION CONTRACTORS
899-BBB - Document destruction contractors.

 
    §  899-bbb.  Document  destruction contractors. 1. On or after October
  first, two thousand eight, no person, firm  or  corporation  shall  hold
  himself,  herself  or itself out to be a document destruction contractor
  in New York state without  first  registering  with  the  department  as
  provided in this section.
    2.   Any   person,  firm  or  corporation  seeking  a  certificate  of
  registration as a document destruction contractor shall  file  with  the
  department  an  application  for registration in such form and detail as
  the department shall prescribe, including the following:
    (a) the name and residence address of the applicant;
    (b) the business name, if other than applicant;
    (c) the place, including the city, town or village,  with  the  street
  and number, where the business is to be located;
    (d) the business telephone of the applicant;
    (e)  the  length  of  time  that  the  applicant  has  been a document
  destruction contractor;
    (f) a statement indicating whether the applicant has:
    (i) been convicted of any crime or is a debtor  on  any  unpaid  civil
  judgment relating to work as a document destruction contractor; and
    (ii)  at  any  time in the past been issued a registration pursuant to
  this section, and if so, whether such registration was ever  revoked  or
  suspended;
    (g) satisfactory evidence of good moral character;
    (h)  a  statement  indicating  the  methods  of  document  destruction
  utilized by the applicant;
    (i) a sworn statement by the applicant that the information set  forth
  in the application is current and accurate; and
    (j)  a  complete  set  of two fingerprint cards for each principal and
  officer of the applicant on a standard fingerprint card approved by  the
  division  of  criminal justice services. Such cards shall be retained by
  the department  and  used  solely  for  the  purpose  of  conducting  an
  investigation  pursuant  to  subdivision  twelve  of  this  section.  If
  additional copies of  fingerprints  are  required  the  applicant  shall
  furnish them upon request.
    3.  In  determining  whether  to  issue  or  renew a registration, the
  secretary of state may consider the character, competency and  integrity
  of the applicant.
    4.  The  secretary  of state may refuse to issue a registration to any
  person, firm or corporation whom he or she finds has been  convicted  of
  any  crime,  or failed to pay any final civil judgment, relating to work
  as a document destruction contractor,  if  such  refusal  will,  in  the
  judgment  of  the  secretary of state, best promote the interests of the
  people of this state.
    5. (a) A registration issued or renewed under the provisions  of  this
  section  shall  entitle  a  person  to  act  as  a  registered  document
  destruction contractor in the state of New York  for  a  period  of  two
  years  from  the  effective  date  of the registration. Any registration
  granted under this  section  may  be  renewed  by  the  department  upon
  application  and  payment  of  the  fee  for  such renewal by the holder
  thereof, in such form as the department may prescribe.
    (b) The  secretary  of  state  shall  have  the  authority  to  assign
  staggered  expiration dates for registrations at the time of renewal. If
  the assigned date results in a term that exceeds twenty-four months, the
  applicant shall pay an additional pro-rated adjustment together with the
  regular renewal fee.
    (c) The secretary of  state  shall  issue  each  document  destruction
  contractor a unique registration number.

    6.  (a)  Each  original  application  or  application  for renewal for
  registration as a document destruction contractor shall  be  accompanied
  by a fee of fifty dollars for each biennial registration period.
    (b)  Notice  in  writing  in  the  manner  and  form prescribed by the
  department shall be given to the department at  its  offices  in  Albany
  within  ten  days  of  changes of name or address by registered document
  destruction contractors. The fee for  filing  each  change  of  name  or
  address notice shall be ten dollars.
    (c)  In  the  case of loss, destruction or damage, the department may,
  upon submission of a request in such form and manner as  the  department
  may  prescribe,  issue a duplicate registration upon payment of a fee of
  ten dollars.
    7. The fees established by this section shall not be refundable.
    8. Each document destruction contractor  engaged  in  making  document
  destruction  contracts  shall  exhibit  his  or her certificate upon the
  request of any interested party.
    9. Every document destruction contract subject to  the  provisions  of
  this  article,  and  all  amendments  thereto,  shall  be evidenced by a
  writing and shall be signed by all the  parties  to  the  contract.  The
  writing shall contain the contractor's registration number issued by the
  secretary of state pursuant to this article.
    10. No person, firm or corporation shall:
    (a)  present,  or  attempt  to  present,  as  his, her or its own, the
  registration of another;
    (b) knowingly  give  false  evidence  of  a  material  nature  to  the
  department for the purpose of procuring a registration;
    (c)   falsely   represent  themselves  to  be  a  registered  document
  destruction contractor;
    (d) use or attempt to use a registration which has expired;
    (e) offer to perform  or  perform  any  document  destruction  without
  having a current registration as is required under this section; or
    (f)  represent  in  any  manner  that  his,  her  or  its registration
  constitutes an endorsement of the quality of workmanship  or  competency
  of the contractor.
    11. Registrations issued to document destruction contractors shall not
  be transferable or assignable.
    12.  (a)  The  secretary  of  state  shall  promulgate  such rules and
  regulations as are deemed necessary to effectuate the purposes  of  this
  article,  and  shall  provide  written notification of the provisions of
  this article to all document destruction contractors registered pursuant
  to this article.
    (b) The secretary of  state  shall  have  the  power  to  enforce  the
  provisions of this article and upon complaint of any person, or upon the
  secretary's  initiative,  to  investigate  any  violation  thereof or to
  investigate the business, business practices and business methods of any
  person, firm, limited  liability  company,  partnership  or  corporation
  applying  for  or  holding  a  registration  as  a  document destruction
  contractor,  if  in  the  opinion  of  the  secretary  of   state   such
  investigation  is  warranted. Each such applicant or registrant shall be
  obliged,  on  request  of  the  secretary  of  state,  to  supply   such
  information, books, papers or records as may be required concerning his,
  her or its business, business practices or business methods, or proposed
  business  practices  or methods. Failure to comply with a lawful request
  of the secretary shall be a ground for  denying  an  application  for  a
  registration,  or  for  revoking,  suspending,  or  failing  to  renew a
  registration issued under this article.
    (c) The department shall have the  power  to  revoke  or  suspend  any
  registration,  or  in  lieu  thereof  to impose a fine not exceeding one

  thousand dollars payable to the department, or reprimand any  registrant
  or deny an application for a registration or renewal thereof upon proof:
    (i)  that  the  applicant  or  registrant  has  violated  any  of  the
  provisions of this article or  the  rules  and  regulations  promulgated
  pursuant to this article;
    (ii)  that  the applicant or registrant has practiced fraud, deceit or
  misrepresentation;
    (iii)  that  the  applicant  or  registrant  has   made   a   material
  misstatement   in   the  application  for  or  renewal  of  his  or  her
  registration;
    (iv) that the applicant or registrant has demonstrated incompetence or
  untrustworthiness in his or her actions.
    13.  The  department  shall,  before  denying  an  application  for  a
  registration  or  before  revoking  or  suspending  any registration, or
  imposing any fine or reprimand, and at least fifteen days prior  to  the
  date  set  for  the  hearing,  and upon due notice to the complainant or
  objector, notify in writing the applicant for, or  the  holder  of  such
  registration  of  any  charge  made  and  shall afford such applicant or
  registrant an opportunity to  be  heard  in  person  or  by  counsel  in
  reference thereto. Such written notice may be served by delivery of same
  personally  to  the  applicant  or  registrant,  or  by  mailing same by
  registered mail to the last known business address of such applicant  or
  registrant.
    14. The hearing on such charges shall be at such time and place as the
  department  shall  prescribe  and  shall be conducted by such officer or
  person in the department as the secretary of state  may  designate,  who
  shall  have the power to subpoena and bring before the officer or person
  so designated any person in this state, and administer an  oath  to  and
  take testimony of any person or cause his or her deposition to be taken.
  A  subpoena  issued  under  this section shall be regulated by the civil
  practice law and  rules.  Such  officer  or  person  in  the  department
  designated  to  take  such testimony shall not be bound by common law or
  statutory  rules  of  evidence  or  by  technical  or  formal  rules  of
  procedure.
    15.  In  the event that the department shall deny the application for,
  or revoke or suspend any  such  registration,  or  impose  any  fine  or
  reprimand,  its determination shall be in writing and officially signed.
  The original of such determinations, when so signed, shall be  filed  in
  the  office  of the department and copies thereof shall be mailed to the
  applicant or registrant and to the complainant  within  two  days  after
  such filing.
    16.  The  department,  acting  by  the  office or person designated to
  conduct the hearing pursuant to subdivision fourteen of this section  or
  by  such  other  officer or person in the department as the secretary of
  state may designate, shall have the power to suspend the registration of
  any registrant who has been convicted in this state or any  other  state
  or  territory  of  a  felony  or  of  any  misdemeanor  for a period not
  exceeding thirty days pending a hearing and a determination  of  charges
  made  against him or her. If such hearing is adjourned at the request of
  the registrant, or by reason of any act or omission by him or her or  on
  his  or  her behalf, such suspension may be continued for the additional
  period of such adjournment.
    17. The action of the department in granting or refusing to  grant  or
  to  renew a registration under this article or in revoking or suspending
  or refusing to revoke or suspend such a  registration  or  imposing  any
  fine  or reprimand shall be subject to review by a proceeding instituted
  under article seventy-eight of the civil practice law and rules  at  the
  instance  of  the  applicant  for  such  registration,  the  holder of a

  registration so revoked, suspended, fined or reprimanded or  the  person
  aggrieved.
    18.  The  department  shall  maintain  and  publish  a registry of all
  registered  document  destruction  contractors,  which  shall  list  and
  identify   on   a  county  by  county  basis,  all  registered  document
  destruction contractors doing business in  this  state.  The  department
  shall  make  the registry available on its website. Copies of the roster
  shall be made available  upon  request  and  payment  of  a  fee  to  be
  determined by the secretary of state and approved by the director of the
  division of the budget.
    19.  (a)  Any  person, firm or corporation that operates as a document
  destruction contractor without being registered shall be required to pay
  a civil penalty  in  the  sum  of  one  thousand  dollars  per  document
  destruction contract entered into in violation of this section. However,
  any  such person, firm or corporation against whom such penalty has been
  assessed may avoid all but five  hundred  dollars  of  such  penalty  by
  obtaining  a  registration  as  required  by this section, provided that
  application for such registration is made not more than ten  days  after
  the  imposition  of such penalty and the document destruction contractor
  has never received a prior fine for failure to register in New  York  or
  in any other state that requires registration.
    (b)  A document destruction contractor may not maintain a civil action
  to recover payment  for  work  under  a  document  destruction  contract
  performed  if  such  contractor is not registered as required under this
  section.
    20.  Whenever  there  shall  be  a  violation  of  this  section,   an
  application  may  be  made  by  the  attorney general in the name of the
  people  of  the  state  of  New  York  to  a  court  or  justice  having
  jurisdiction  by  a  special proceeding to issue an injunction, and upon
  notice to the defendant of  not  less  than  five  days,  to  enjoin  or
  restrain  the  continuance  of such violation; and if it shall appear to
  the satisfaction of the court or justice  that  the  defendant  has,  in
  fact,  violated  this section, an injunction may be issued by such court
  or justice, enjoining and restraining  any  further  violation,  without
  requiring  proof  that  any person has, in fact, been injured or damaged
  thereby. In any such proceeding, the court may make  allowances  to  the
  attorney  general  as  provided  in  paragraph six of subdivision (a) of
  section eighty-three hundred three of the civil practice law and  rules,
  and   direct   restitution.   In   connection  with  any  such  proposed
  application, the attorney general is authorized to take proof and make a
  determination of the relevant facts and to issue subpoenas in accordance
  with the civil practice law and rules.