2023 New York Laws › GBS - General Business › Article 33 - Franchises › 688 - Investigations.

§  688.  Investigations. 1. Whenever it shall appear to the department
of law, either upon complaint or otherwise, that any person has violated
any provision of this article, the department:
(a) may make such investigations within or outside of this state as it
deems necessary  to  determine  whether  any  person  has  violated  any
provision of this article or any rule or regulation hereunder, or to aid
in  the  enforcement  of this article or in the prescribing of rules and
forms hereunder, and
(b) may require or permit any person to file a statement  in  writing,
under  oath  or  otherwise as the attorney general determines, as to all
the facts and circumstances concerning the matter to be investigated.
2. The costs of all out of state travel and lodging expenses  relating
to  investigations  by  the  department  of  persons  who  appear to the
department to have violated any provision of this article shall be borne
by such persons upon a judicial determination  that  said  persons  have
committed  unlawful and fraudulent acts or practices, as defined in this
article, or so much thereof as is deemed proper by the court.
3. The department is empowered to  subpoena  witnesses,  compel  their
attendance,  examine them under oath before it or a court of record or a
judge or justice thereof, and require the production  of  any  books  or
papers which it deems relevant or material to the inquiry. Such power of
subpoena  and  examination shall not abate or terminate by reason of any
action or proceeding brought by the department under this article.
4. (a) No person is excused from  attending  and  testifying  or  from
producing  a  document  or  record,  in obedience to the subpoena of the
department or in a proceeding  instituted  by  the  department,  on  the
ground  that  the  testimony  or  evidence,  documentary  or  otherwise,
required of him may tend to incriminate him or subject him to penalty or
forfeiture; but a person may not be prosecuted or subjected to a penalty
of forfeiture for or on account of any  transaction,  matter,  or  thing
concerning  which  he is compelled, after validly claiming his privilege
against self-incrimination, to testify or produce evidence,  documentary
or  otherwise,  except  that  the  person  testifying is not exempt from
prosecution  and  punishment  for  perjury  or  contempt  committed   in
testifying. The department shall compel such testimony or the production
of   such   evidence  only  after  notifying  and  consulting  with  any
appropriate local prosecuting authorities.
(b) No person shall be excused from attending such inquiry pursuant to
the mandate of a subpoena, or from producing a paper or  book,  or  from
being  examined  or  required  to  answer  a  question, on the ground of
failure of tender or payment of a witness fee and/or mileage, unless  at
the  time  of  such  appearance  or production, as the case may be, such
witness makes demand for such payment as a condition  precedent  to  the
offering  of testimony or production required by the subpoena and unless
such payment is not thereupon made. The provision for payment of witness
fees and/or mileage shall not apply to any officer,  director,  salesman
or other person in the employ of any person whose conduct or practice is
being investigated.
5.  If  a  person  subpoenaed to attend such inquiry fails to obey the
command of a subpoena without  reasonable  cause,  or  if  a  person  in
attendance upon such inquiry shall without reasonable cause refuse to be
sworn or to be examined or to answer a question or to produce and permit
reasonable  examination  of a book or paper when ordered so to do by the
officer conducting such inquiry, or if a person fails to perform any act
required hereunder to be performed, he shall be  guilty  of  a  class  A
misdemeanor punishable as provided in section six hundred ninety of this
article.
6.  It  shall  be  the  duty  of  all public officers, their deputies,
assistants, subordinates, clerks or employees and all other  persons  to
render  and  furnish  to the department or other designated officer when
requested all information and assistance in their possession  or  within
their  power  with  respect  to  all  matters  being investigated by the
department under this article. Any officer participating in such inquiry
and any person examined  as  a  witness  upon  such  inquiry  who  shall
disclose  to  any  person  other than his attorney or the department the
name of any witness examined or any other information obtained upon such
inquiry except as directed by the department shall be guilty of a  class
A  misdemeanor  punishable  as provided in section six hundred ninety of
this article.