Source: https://www.nysenate.gov/legislation/bills/2017/s8146
Timestamp: 2018-06-18 11:23:07
Document Index: 308386840

Matched Legal Cases: ['§520', '§500', 'Art 68', '§6801', '§6805', '§6801', '§ 1', '§ 2', '§ 3', '§ 4', '§ 5', '§ 6', '§ 7', '§ 9', '§ 10', '§ 11', '§ 12', '§ 13', '§ 14', '§ 15', '§ 16', '§ 17', 'art 70']

NY State Senate Bill S8146
senate Bill S8146
Prohibits for-profit bail bond business; repealer
Get Status Alerts for S8146
Apr 09, 2018 referred to codes
S8146 - Details
Amd §§520.10, 500.10 & 520.30, rpld §500.10 sub 16, CP L; amd Art 68 Art Head, rpld §§6801, 6802, 6803 & 6804, ren §6805 to be §6801, Ins L; amd Gen Bus L, generally
S8146 - Summary
Prohibits any person, partnership, or corporation from engaging in the for-profit bail bond business.
S8146 - Sponsor Memo
BILL NUMBER:  S8146
An act to amend the criminal procedure law, the insurance law and the
general business law, in relation to prohibiting the bail bond
business; and to repeal certain provisions of such laws, relating
To ban commercial bail bonds, bond enforcement agents, and bail bond
§ 1: Removes subdivision 1 of section 520.1 of the Criminal Procedure
Law which lists insurance company bonds as an authorized form of bail.
§ 2: Removes subdivision 16 of the Criminal Procedure Law 500.10,
which defines an insurance company bail bond.
§ 3: Removes references in the Criminal Procedure Law 520.30 to the
character of an insurance company bail bond for a court's
determination of a bail bond's reliability or merit.
§ 4: Strikes reference to Bail Bonds in the Insurance Law, leaving
only reference to charitable bail organizations.
§ 5: Repeals references in Insurance Law to bail bond businesses,
professional bondsmen and their licensing, and premiums or
§ 6: Adds new section 391-u to the General Business Law to explicitly
prohibit the bail bond business and sets violation as a class A
§ 7-8: Removes the General Business Law section 70-a references to
Bail Enforcement Agents as entities to be licensed by the NYS
Department of State and sets a penalty for acting as a Bail
Enforcement Agent as a class B misdemeanor.
§ 9: Removes General Business Law section 71 para.1-a that defines a
bail enforcement agent.
§ 10: Removes General Business Law section 72 references to licensing
of bail enforcement agents and insurance indemnity bonds.
§ 11: Removes General Business Law section 73 reference to the
Secretary of State's authority to investigate a bail enforcement
§ 12: Removes General Business Law section 74 references to licensing
fees and bonding for bail enforcement agents.
§ 13: Repeals General Business Law section 74-a, which describes the
way that a bail enforcement agent shall give notification to take a
§ 14: Removes General Business Law section 80 references to the
display of licenses and certification of bail enforcement agents.
§ 15: Removes General Business Law section 81 references to the
behavior of bail enforcement agents and their employees.
§ 16: Removes General Business Law section 83 reference to the
prohibition of law enforcement officers or act as a bail enforcement
§ 17: Removes General Business Law section 84 references to the
prohibition of a bail enforcement agent's having a badge.  18: States
date of effect as 180 days after becoming law.
Current law allows for-profit lending for bail and private enforcement
of bail bond contracts.
The commercial bail bond industry is a profit-making business that is
entirely based on profiting from people of limited resources who are
the object of the criminal justice process. By their very nature,
these businesses put additional non-judicial and extreme financial
strain upon the accused, their family members and the community. This
unnecessary strain is totally external to the process of a balanced
justice process. Moreover, people without means are the primary
clients of the commercial bail bond business, which violates the civic
equality that is implicitly part of any fair and impartial justice
system. Just as New York State has seen fit to outlaw private prisons
from profiting from the criminal justice system, the State should also
outlaw private companies from profiting from bail and having a
business that is solely based upon adding extra strain and hardship
upon those who are of limited means.
S8146 - Bill Text download pdf
AN ACT to amend the criminal procedure law, the insurance  law  and  the
general  business  law, in relation to prohibiting the bail bond busi-
ness; and to repeal certain provisions of such laws, relating thereto
Section  1.  Subdivision 1 of section 520.10 of the criminal procedure
law, paragraph (i) as amended by chapter 457 of the  laws  of  2005,  is
1. The only authorized forms of bail are the following:
(b) [An insurance company bail bond.
(c)] A secured surety bond.
[(d)] (C) A secured appearance bond.
[(e)] (D) A partially secured surety bond.
[(f)] (E) A partially secured appearance bond.
[(g)] (F) An unsecured surety bond.
[(h)] (G) An unsecured appearance bond.
[(i)]  (H)  Credit  card  or  similar  device; provided, however, that
notwithstanding any other provision of law, any person posting  bail  by
credit  card  or similar device also may be required to pay a reasonable
administrative fee. The amount of such administrative fee and  the  time
and  manner of its payment shall be in accordance with the system estab-
lished pursuant to subdivision four of section 150.30 of this chapter or
paragraph (j) of subdivision two of section two hundred  twelve  of  the
judiciary law, as appropriate.
S 2. Subdivision 16 of section 500.10 of the criminal procedure law is
REPEALED  and subdivisions 17, 18, 19 and 20 are renumbered subdivisions
S 3. Paragraph (a) of subdivision 1 of section 520.30 of the  criminal
procedure law, as amended by chapter 384 of the laws of 1984, is amended
LBD14856-01-8
S. 8146                             2
(a)  The background, character and reputation of any obligor[, and, in
the case of an insurance company bail bond, the  qualifications  of  the
surety-obligor and its executing agent]; and
S 4. The article heading of article 68 of the insurance law is amended
[BAIL BONDS] CHARITABLE BAIL ORGANIZATIONS
S  5.  Sections  6801,  6802,  6803  and 6804 of the insurance law are
REPEALED and section 6805 is renumbered section 6801.
S 6. The general business law is amended by adding a new section 391-u
S 391-U. PROHIBIT THE BAIL BOND BUSINESS.  1.  FOR  PURPOSES  OF  THIS
SECTION  "BAIL  BOND  BUSINESS"  SHALL  MEAN ANY PERSON, PARTNERSHIP, OR
CORPORATION ENGAGED FOR PROFIT IN THE BUSINESS OF FURNISHING BAIL, OR TO
OTHERWISE FOR COMPENSATION OR OTHER CONSIDERATION FURNISH BAIL OR  FUNDS
OR PROPERTY TO SERVE AS BAIL OR MAKE BONDS OR ENTER INTO UNDERTAKINGS AS
SURETY  FOR  THE APPEARANCE OF PERSONS CHARGED WITH ANY CRIMINAL OFFENSE
OR VIOLATION OF LAW OR ORDINANCE  PUNISHABLE  BY  FINE  OR  IMPRISONMENT
BEFORE ANY COURT OF THIS STATE, OR SECURING THE PAYMENT OF FINES IMPOSED
AND OF COSTS ASSESSED BY SUCH COURTS UPON FINAL DISPOSITION THEREOF. THE
BUSINESS  OF  BAIL  BONDSMAN SHALL BE LIMITED TO THE ACTS, TRANSACTIONS,
AND UNDERTAKINGS DESCRIBED IN THIS SUBDIVISION.
2. IT SHALL BE UNLAWFUL FOR ANY PERSON, PARTNERSHIP, OR CORPORATION TO
ENGAGE IN THE BAIL BOND BUSINESS AS DEFINED IN SUBDIVISION ONE  OF  THIS
3.  ANY  PERSON, PARTNERSHIP, OR CORPORATION WHO VIOLATES THIS SECTION
SHALL BE GUILTY OF A CLASS A MISDEMEANOR PUNISHABLE BY  A  FINE  NOT  TO
EXCEED  FIVE  HUNDRED  DOLLARS,  OR BY IMPRISONMENT OF NOT MORE THAN ONE
S 7. The article heading of article 7 of the general business law,  as
amended  by  chapter  562  of  the  laws  of 2000, is amended to read as
PRIVATE INVESTIGATORS[, BAIL ENFORCEMENT
AGENTS] AND WATCH, GUARD AND PATROL AGENCIES
S 8. Section 70-a of the general business law, as added by chapter 115
S 70-a. [Bail enforcement agents and watch]  WATCH,  guard  or  patrol
agencies.    1.  The  department  of state shall have the power to issue
separate licenses to [bail enforcement agents and to]  watch,  guard  or
patrol  agencies. Nothing in this article shall prevent a private inves-
tigator licensed hereunder from performing  the  services  of  a  watch,
guard  or  patrol  agency [or bail enforcement agent] as defined in this
article; however, a watch, guard or patrol agency [or  bail  enforcement
agent] may not perform the services of a private investigator as defined
corporation  shall engage in the business of [bail enforcement agents or
the business of] watch, guard or patrol agency, or advertise his,  their
or  its  business to be that of [bail enforcement agent or] watch, guard
or patrol agency, notwithstanding the name or title used  in  describing
such  agency  or  notwithstanding  the  fact  that  other  functions and
services may also be performed for fee, hire or reward,  without  having
first obtained from the department of state a license so to do, as here-
inafter provided, for each bureau, agency, sub-agency, office and branch
office  to  be  owned,  conducted, managed or maintained by such person,
firm, company, partnership, limited liability company or corporation for
the conduct of such business.
S. 8146                             3
3. Any person, firm, company, partnership or corporation who  violates
S  9. Subdivisions 1-a and 4 of section 71 of the general business law
S 10. The opening paragraph of section 72 of the general business law,
as amended by chapter 562 of the laws of 2000, is  amended  to  read  as
Application  for  licenses.  Any  person,  firm,  partnership, limited
liability company or corporation intending to conduct  the  business  of
private  investigator[, business of bail enforcement agent] or the busi-
ness of watch, guard or patrol agency, and any  person,  firm,  partner-
ship,  limited liability company or corporation intending to conduct the
business of furnishing or supplying information as to the personal char-
acter of any person or firm, or as to the character or kind of the busi-
ness and occupation of any person, firm or corporation, society or asso-
ciation or any person or group of persons, or intending to own, conduct,
manage or maintain a bureau or agency for the above mentioned  purposes,
or  while  engaged in other lawful business activities also intending to
engage in any one or more of the activities set forth in section  seven-
ty-one  of  this  article except exclusively as to the financial rating,
standing, and credit responsibility  of  persons,  firms,  companies  or
corporations  or  as  to personal habits and financial responsibility of
applicants for [insurance indemnity bonds or] commercial  credit  or  of
claimants under insurance policies shall, for each such bureau or agency
and for each and every sub-agency, office and branch office to be owned,
conducted,  managed  or  maintained  by  such person, firm, partnership,
limited liability company or corporation for the conduct of  such  busi-
ness,  file  in the office of the department of state a written applica-
tion, on forms provided by the department  containing  such  information
and documentation, including fingerprints, as the secretary of state may
require by rule and regulation.
S  11.  Subdivision  1  of  section 73 of the general business law, as
amended by chapter 562 of the laws  of  2000,  is  amended  to  read  as
1.  The  secretary  of  state  shall  have  the  power  to enforce the
provisions of this article and article seven-A of this chapter and  upon
complaint  of  any  person, or on his own initiative, to investigate any
violation thereof or to investigate the business, business practices and
business methods of any person, firm, limited liability  company,  part-
nership  or  corporation  applying for or holding a license as a private
investigator[, bail enforcement agent] or watch, guard or patrol agency,
if in the opinion of  the  secretary  of  state  such  investigation  is
warranted.  Each such applicant or licensee shall be obliged, on request
of the secretary of state, to supply such information, books, papers  or
records  as may be required concerning his, their or its business, busi-
ness practices or business methods, or proposed  business  practices  or
methods. Failure to comply with a lawful request of secretary shall be a
suspending, or failing to renew a license issued under this article.
S 12. Paragraphs (a) and (b) of subdivision 1 of  section  74  of  the
general  business  law,  as  amended by chapter 562 of the laws of 2000,
paragraph (b) as further amended by section 104 of part A of chapter  62
(a)  The  application  shall  be  accompanied by a non-refundable fee,
payable to the department of state for the use of the  state,  for  each
certificate  of license, as hereinbelow enumerated, issued to the appli-
S. 8146                             4
cant, if the applicant be an individual, of four hundred dollars  for  a
license  as private investigator [or bail enforcement agent] or a fee of
three hundred dollars for a license as watch, guard or patrol agency, or
if  the  applicant  be a firm, partnership, limited liability company or
corporation, a fee of five hundred dollars  for  a  license  as  private
investigator  [or  bail  enforcement  agent]  or  a  fee of four hundred
dollars for a license as watch, guard or patrol agency.
(b) When the application shall have been  examined  and  such  further
inquiry  and  investigation  made  as  the secretary of state shall deem
proper, and when the secretary of state shall be satisfied therefrom  of
the  good  character, competency and integrity of such applicant, or, if
the applicant be a firm or partnership, the individual members  thereof,
or  if  the  applicant  be  a  limited liability company, the individual
members thereof, or if the applicant be a  corporation,  the  president,
secretary,  treasurer  and all other officers and all directors thereof,
and each stockholder owning ten per centum or more of the  stock  and  a
period  to ten days from the date of the filing of the application shall
have passed, the department of state shall issue  and  deliver  to  such
applicant  a certificate of license to conduct such business and to own,
conduct or maintain a  bureau,  agency,  sub-agency,  office  or  branch
office  for  the conduct of such business on the premises stated in such
application upon the applicant's executing, delivering and filing in the
office of such department a surety company bond in the sum of ten  thou-
sand  dollars;  provided  however, that [an applicant for a license as a
bail enforcement agent shall execute, deliver and file with  the  office
of  such  department  a  surety  company bond in the sum of five hundred
thousand dollars, conditioned for the faithful  and  honest  conduct  of
such  business by such applicant, which surety bond must be written by a
company recognized and  approved  by  the  superintendent  of  financial
services  of  the  state,  and  approved by the department of state with
respect to its form,  manner  of  execution  and  sufficiency  provided,
further,  however,]  before  a  license  is issued to a non-resident the
applicant must file with the secretary of state a written consent to the
jurisdiction of the courts of New York (i) in any case or cases  arising
from  any contract for the performance of private investigative services
as private investigator[, bail enforcement agent]  or  watch,  guard  or
patrol  agency,  made  within the state or to be performed, wholly or in
part, within the state or in any way connected with the conduct of busi-
ness within the state, and (ii) in any case or cases  arising  from  any
tort  occurring  within  the  state  or occurring in connection with the
business of the licensee within the state. The license as private inves-
tigator[, bail enforcement agent]  or  watch,  guard  or  patrol  agency
granted  pursuant  to this article shall last for a period of two years,
but shall be revocable at all times by the department of state for cause
shown. Such bond shall be taken in the name of the people of  the  state
of  New  York,  and  any  person  injured by the violation of any of the
provisions of this article or by the wilful, malicious and wrongful  act
of the principal or employee may bring an action against such principal,
employee  or  both  on  said  bond  in  his  own name to recover damages
suffered by reason of such wilful, malicious and wrongful act.  In  each
and  every  suit, or prosecution arising out of this article, the agency
of any employee as to the employment and as to acting in the  course  of
his employment, shall be presumed. The license certificate shall be in a
form  to  be  prescribed by the secretary of state and shall specify the
full name of the applicant, the location  of  the  principal  office  or
place  of  business  and the location of the bureau, agency, sub-agency,
S. 8146                             5
office or branch office for which the license is  issued,  the  date  on
which  it  is issued, the date on which it will expire and the names and
residences of the applicant or applicants filing the statement  required
by  section seventy-two of this article upon which the license is issued
and in the event of a change  of  any  such  address  or  residence  the
department  of  state  shall  be duly notified in writing of such change
within twenty-four hours thereafter, and failure to give such  notifica-
tion  shall be sufficient cause for revocation of such license.  No such
license as private investigator[,  bail  enforcement  agent]  or  watch,
guard  or  patrol  agency  shall  be issued to a person under the age of
S 13. Section 74-a of the general business law is REPEALED.
S 14. Section 80 of the general business law, as  amended  by  chapter
562 of the laws of 2000, is amended to read as follows:
S  80.  License certificates, pocket cards or badges. Upon the issuing
of a license as hereinbefore provided  the  department  of  state  shall
issue  to each person, partner, member of a limited liability company or
officer of a corporation making  and  filing  a  statement  required  by
section  seventy-two  of  this  article  a  pocket card of such size and
design as the department  of  state  may  prescribe,  which  card  shall
contain  a  photograph of the licensee, the name and business address of
the licensee and the imprint or impress of the seal of the department of
state which pocket card shall be evidence of due authorization  pursuant
to  the  terms of this article. All persons to whom such license certif-
icates or pocket cards shall have been issued shall be  responsible  for
the  safe  keeping of the same, and shall not lend, enable, let or allow
any other person to have, hold, use or display such certificate or pock-
et card; and any person so parting with such a  license  certificate  or
pocket  card  or  displaying  the  same  without authority, or who shall
display any license certificate or pocket card purporting  to  authorize
the  holder  thereof to act as a private investigator[, bail enforcement
agent or] watch, guard or patrol agency, unless the same shall have been
duly issued pursuant to the provisions of this article, shall be  guilty
of  a misdemeanor. Failure to comply with the provisions of this section
shall be sufficient cause for revocation of such license, and  all  such
certificates  or  pocket  cards  shall  be returned to the department of
state within seventy-two hours after the  holder  thereof  has  received
notice  in  writing  of the expiration or revocation of such license. It
shall be unlawful for a holder of a license or anyone else  to  distrib-
ute,  possess,  use  or  display  any  license certificate, pocket card,
badge, shield or any other indicia of a license status pursuant to  this
article  except as set forth in this article. Any person who is a licen-
see hereunder or an officer or authorized employee of any other  person,
firm,  limited liability company or corporation, whether or not licensed
hereunder, while performing the services of a watchman, guard or private
patrolman, may wear on his outer clothing a rectangular metal  or  woven
insignia  approved  by the department of state, which insignia shall not
be  larger  than  three  inches  high  nor  four  inches  wide  with  an
inscription thereon containing the word "watchman", "guard", "patrol" or
"special service" and the name of such licensee or employer. It shall be
unlawful for any employer, whether or not licensed hereunder, to wear or
distribute  to his, their or its employees any employment identification
except as authorized in this article and approved by  the  secretary  of
state. Any person violating any provision of this section shall be guil-
S. 8146                             6
S  15.  Subdivision  1  of  section 81 of the general business law, as
amended by section 14 of part LL of chapter 56 of the laws of  2010,  is
1. The holder of any license certificate issued pursuant to this arti-
cle  may employ to assist him in his work of private detective or inves-
tigator [or bail enforcement agent] as described in section  seventy-one
of  this  article and in the conduct of such business as many persons as
he may deem necessary, and shall at all times during such employment  be
legally  responsible  for  the  good conduct in the business of each and
every person so employed.  No holder of any  unexpired  license  certif-
icate  issued  pursuant  to  this  article  shall  knowingly  employ  in
connection with his or its business  in  any  capacity  whatsoever,  any
person  who has been convicted of a felony or any of the offenses speci-
fied in subdivision two of section seventy-four of this article, and who
has not subsequent to such conviction received executive pardon therefor
removing this disability, or received a certificate of relief from disa-
bilities or a certificate of good conduct pursuant  to  article  twenty-
three  of the correction law to remove the disability under this section
because of such a conviction, or any person whose private  detective  or
investigator's license [or bail enforcement agent's license] was revoked
or application for such license was denied by the department of state or
by the authorities of any other state or territory because of conviction
of  any  of  such  offenses.  Should  the holder of an unexpired license
certificate falsely state or represent that a person is or has  been  in
his  employ,  such  false statement or misrepresentation shall be suffi-
cient cause for the revocation of such license. Any person falsely stat-
ing or representing that he is or has been a detective or employed by  a
detective  agency [or that he is or has been a bail enforcement agent or
employed by a bail enforcement agency] shall be guilty of a misdemeanor.
S 16. The opening paragraph of section 83 of the general business law,
as amended by chapter 127 of the laws of 2015, is  amended  to  read  as
Nothing  in  this  article  shall  apply  to  any detective or officer
belonging to the police force of the state, or any county, city, town or
village thereof, appointed or elected by due authority of law, or to any
person in the employ of any police force or  police  department  of  the
state,  or of any county, city, town or village thereof while engaged in
the performance of their official  duties;  nor  to  any  person,  firm,
limited  liability  company,  partnership, corporation, or any bureau or
agency, whose business is exclusively the furnishing of  information  as
to  the  business  and  financial standing, and credit responsibility of
persons, firms, or corporations, or as to the personal habits and finan-
cial responsibility of applicants  for  insurance,  indemnity  bonds  or
commercial  credit  or of claimants under insurance policies, nor to any
person licensed as a certified public accountant while  engaged  in  the
practice  of public accountancy as defined in article one hundred forty-
nine of the education law or any firm, limited liability company,  part-
nership  or corporation registered as a certified public accounting firm
by the commissioner of education  while  performing  services  regulated
under  article one hundred forty-nine of the education law or Part 70 of
the regulations of the commissioner of  education;  and  whose  business
does  not  embrace  other activities described in section seventy-one of
this article; or whose business is licensed by the commissioner of labor
under the provisions of section twenty-four-a or subdivision three-b  of
section  fifty  of  the  workers'  compensation law or whose business is
S. 8146                             7
compensation law in the state insurance fund;  nor  to  any  corporation
duly  authorized by the state to operate a central burglar or fire alarm
protection business; nor to any person while engaged in the business  of
adjuster for an insurance company nor to any public adjuster licensed by
the  superintendent of financial services under the insurance law nor to
any person regularly employed as special agent,  detective  or  investi-
gator exclusively by one employer in connection with the affairs of that
employer  only nor to any charitable or philanthropic society or associ-
ation duly incorporated under the laws of the state and which is  organ-
ized  and maintained for the public good and not for private profit, nor
shall anything in this article contained be construed to affect  in  any
way  attorneys  or  counselors  at  law in the regular practice of their
profession, but such exemption shall not enure to  the  benefit  of  any
employee  or  representative of such attorney or counselor at law who is
not employed solely, exclusively and regularly by such attorney or coun-
selor at law. No person, firm, limited liability  company,  partnership,
corporation or any bureau or agency exempted hereunder from the applica-
tion  of this article shall perform any manner of private investigator[,
bail enforcement agent] or watch, guard  or  patrol  agency  service  as
described  in section seventy-one of this article, for any other person,
firm, limited liability company,  partnership,  corporation,  bureau  or
agency  whether for fee, hire, reward, other compensation, remuneration,
or consideration or as an accommodation without fee, reward or remunera-
tion or by a reciprocal arrangement whereby such services are  exchanged
on request of parties thereto.  The commission of a single act prohibit-
ed by this article shall constitute a violation thereof.
S  17.  Subdivision  1  of  section 84 of the general business law, as
amended by chapter 84 of the  laws  of  2001,  is  amended  to  read  as
1. It is unlawful for the holder of a license, issued under this arti-
cle,  or  for  any employee of such licensee, knowingly to commit any of
the following acts within or without the state of New York:  to  incite,
encourage,  or  aid  in the incitement or encouragement of any person or
persons who have become a party to  any  strike,  to  do  unlawful  acts
against the person or property of any one, or to incite, stir up, create
or  aid  in  the  inciting  of  discontent  or dissatisfaction among the
employees of any person, firm, limited liability company or  corporation
with the intention of having them strike; to interfere or prevent lawful
and  peaceful  picketing during strikes; to interfere with, restrain, or
coerce employees in the exercise of their right to form, join or  assist
any labor organization of their own choosing; to interfere or hinder the
lawful  or  peaceful collective bargaining between employees and employ-
ers; to pay, offer, or give any money, gratuity,  favor,  consideration,
or  other  thing of value, directly or indirectly, to any person for any
verbal or written report of the lawful activities of  employees  in  the
exercise  of  their right of self-organization, to form, join, or assist
labor organizations and to bargain collectively through  representatives
of  their own choosing; to advertise for, recruit, furnish or replace or
offer to furnish or replace for hire or reward, within  or  without  the
state  of  New  York,  any  help  or  labor, skilled or unskilled, or to
furnish or offer to furnish armed guards, other than armed guards there-
tofore regularly employed for the protection of  payrolls,  property  or
premises,  for  service  upon property which is being operated in antic-
ipation of or during the course or existence of  a  strike,  or  furnish
armed  guards  upon the highways, for persons involved in labor disputes
or to furnish or offer to furnish to  employers  or  their  agents,  any
S. 8146                             8
arms,  munitions,  tear gas implements, or any other weapons; or to send
letters or literature to employers offering to eliminate labor unions or
distribute or circulate any list of members of a labor organization,  or
to  advise  any  person  of  the  membership of an individual in a labor
organization for the express purpose of preventing those  so  listed  or
named  from  obtaining  or retaining employment. The violation of any of
the provisions of this section shall constitute a misdemeanor and  shall
be  punishable  by  a fine of not less than five hundred dollars, or one
year's imprisonment or both. It is unlawful for the holder of a  license
to  collect  or  offer  or  attempt to collect or directly or indirectly
engage in the business of collecting of debts or  claims  of  any  kind,
excepting  that  the  taking  possession,  on  behalf of a secured party
having the right to do so under section 9--609 of the uniform commercial
code, of property in the possession of a debtor who has defaulted in the
performance of a security agreement secured by such property, shall  not
be considered a violation of this section and excepting further that the
secretary  of  state  may  grant  exemption from this prohibition in the
collection of debts to licensees who  are  principally  engaged  in  the
business  of  credit  investigation and credit reporting. It is unlawful
for the holder of a license to furnish or perform any services described
in subdivisions one and two of section seventy-one of this article on  a
contingent  or  percentage  basis or to make or enter into any agreement
for furnishing services of any kind or character, by the terms or condi-
tions of which agreement the compensation to be paid for  such  services
to  the  holder  of a license is partially or wholly contingent or based
upon a percentage of the  amount  of  money  or  property  recovered  or
dependent  in any way upon the result achieved. It shall be unlawful for
a holder of a license to use, display, cause to be printed  or  distrib-
uted, cards, letter-heads, circulars, brochures or any other advertising
material  or  advertisement  in which any name or indicia of the license
status of the licensee is set forth in any manner other  than  the  name
under which the licensee is duly licensed. It is unlawful for a licensed
private investigator [or bail enforcement agent] to own, have or possess
or  in  any manner to wear, exhibit or display, a shield or badge of any
material, kind, nature or description, in the performance of any of  the
activities  as  private  investigator  [or  bail  enforcement agent], as
distinguished from watch, guard or patrol agency,  under  this  article.
It  is unlawful for a licensed private investigator [or bail enforcement
agent] to issue to any person employed by  such  licensee,  a  badge  or
shield  of any material, kind, nature or description, and it is unlawful
for any person employed by such licensee to possess, carry or display  a
badge  or  shield  of any description provided that any licensed private
investigator [or bail enforcement agent] who also engages in  the  busi-
ness  of  watch,  guard  or patrol agency may possess, use or display or
issue to employees in the conduct of such business, a rectangular  metal
or  woven  insignia to be worn on the outer clothing and approved by the
department of state, which insignia shall not be larger than three inch-
es high or four inches wide with an inscription thereon  containing  the
word  "watchman", "guard", "patrol" or "special service" and the name of
the licensee. It shall be unlawful for any licensee to publish or  cause
to  be  published any advertisement, letter-head, circular, statement or
phrase of any sort which suggests  that  the  licensee  is  an  official
police  or  investigative  agency or any other agency instrumentality of
the state of New York or any of its political subdivisions. It shall  be
unlawful  for  any licensee to make any statement which would reasonably
cause another person to believe that the licensee is a police officer or
S. 8146                             9
official investigator of the state of New York or any of  its  political
subdivisions.  It  shall  be unlawful for a licensee to offer, by radio,
television, newspaper advertisement or any other means of communication,
to  perform  services  at any location which is merely the location of a
telephone answer service unless full disclosure of that fact is made  in