§ 2-375 Tow Truck Industry Trust Fund.
RCNY § 2-375
(a)The Tow Truck Industry Trust Fund (hereinafter, "The Fund") is established to provide for the payment of outstanding awards to aggrieved consumers and fines owed to the Department. The Fund shall be administered by the Comptroller of the City of New York pursuant to Section 93(j) of the Charter.
(b)Participation in the Fund.
(1)Those licensed to engage in the business of towing may elect to participate in the Fund in lieu of furnishing a bond or its cash equivalent as required by § 20-499 of Chapter 2 of Title 20 of the Administrative Code of the City of New York.
(2)Any tow truck company license applicant who elects to participate in the Fund must submit to the Department a check in the amount of two hundred dollars, made payable to the New York City Department of Consumer Affairs, prior to the issuance of the license to engage in the business of towing and prior to the expiration or cancellation date of the licensee's bond.
(3)The Commissioner may, from time to time, amend this regulation to require such additional contributions by participants in the Fund as the Commissioner determines to be necessary to maintain an amount in the Fund which is adequate to fulfill its purposes and to counteract depletion of the fund resulting from payments out of the Fund pursuant to subdivision (c) hereof.
(4)Fund participants may discontinue their participation in the Fund at any time by filing a bond pursuant to the Tow Truck Law Bond Requirement. No participant will be entitled to a refund of any monies contributed to the Fund unless the Fund is dissolved by the Commissioner. All such refunds will be disbursed in accordance with regulations promulgated by the Commissioner and in effect at the time of such dissolution.
(5)Participation in the Fund does not relieve a licensee of any obligation to pay awards and/or fines imposed by the Department or judgments and/or arbitration awards rendered against a licensee by a court of competent jurisdiction. In the event that a company's license is revoked, surrendered or the company fails to renew its license, and the Fund is invaded to pay an award, fine or judgment that was rendered against such company pursuant to the provisions herein, no license shall be issued or reinstated to such company owner or to any tow truck company in which such company owner is an officer, shareholder, partner or principal, unless the amount(s) paid out of the Fund on behalf of such company is reimbursed by such company in full.
(6)In the event that a tow truck company's license is revoked, surrendered or the company fails to renew its license and the Fund invaded to pay an award, fine or judgment that was rendered against such company pursuant to the provisions herein, the Commissioner or his or her designee shall have discretion to exclude such company owner or any tow truck company in which such company owner is a principal, from future participation in the Fund. The Commissioner or his or her designee may, in his or her discretion, require such tow truck company to comply with the Tow Truck Law Bond requirement.
(c)Invasion of the Fund.
(7)Nothing contained herein shall be construed to provide for the payment of awards or judgments tendered against Fund participants in personal injury actions.
(d)Accounting. The Commissioner shall, by January 31 of each year, cause an accounting to be made of all the Fund's activities during the preceding calendar year.
