Notification of Arrest, Conviction, Civil and Administrative Determinations, Vehicle Crashes, Suspension or Revocation of Driver's License, or Material Change in Information; Addition of New Principal or Employee.
17 RCNY § 2-05
in effect§ 2-05 Notification of Arrest, Conviction, Civil and Administrative Determinations, Vehicle Crashes, Suspension or Revocation of Driver's License, or Material Change in Information; Addition of New Principal or Employee.
(a) (1) An applicant for a license or a licensee and an applicant for exemption from the requirement for a license or an applicant granted such exemption must notify the Commission, within ten (10) business days, of the arrest or criminal conviction after the submission of the application of any principal or any employee or agent or any prospective employee or agent identified on the application, of which the applicant for a license or the licensee had knowledge or should have known, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law.
(2) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any determination by any Federal, State, or Local governmental agency or authority against such licensee or applicant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority.
(3) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any crash that involved a vehicle used in the course of the business of such applicant or licensee. Additionally, such applicant or licensee must provide the Commission with a copy of the Report of Motor Vehicle Accident (MV-104) and any other forms filed with the New York State Department of Motor Vehicles within ten (10) business days from the date by which such applicant or licensee is required to file the forms with such department.
(4) An applicant for a license or a licensee must notify the Commission within ten (10) business days of the suspension or revocation of the driver's license of any person whose job duties include operating a vehicle on behalf of such applicant or licensee.
(5) An applicant for a license or a licensee must notify the Commission within ten (10) business days of any material change as defined in 17 RCNY § 1-01 in the information submitted in an application or disclosure form submitted, pursuant to this chapter.
(6) A licensee must notify the Commission within ten (10) business days of contract closing of any change in the capital stock or ownership in the business of the licensee, including but not limited to a stock transfer or sale of the outstanding shares of the business or sale or merger of such business; provided, however that a business whose equity securities are publicly traded on a national or regional stock or securities exchange must disclose only such stock transfer or sale required to be disclosed by the Securities Exchange Commission or other Federal or State regulatory body. Such notification must include a list of any persons formerly possessing ownership interest in the licensee business who will have any beneficial interest in the current business and a copy of the contract or agreement.
(7) In addition to notification of material change required by any other provision of this chapter, a licensee must provide the Commission with notice of at least ten (10) business days of the proposed addition of a new principal (other than a person or entity that becomes a principal through the acquisition of outstanding shares of a business whose equity securities are registered under Federal and State securities laws and publicly traded on a national or regional stock or security exchange) to the business of such licensee. The Commission may waive or shorten such period upon a showing that there exists a bona fide business requirement therefor. Except where the Commission determines within such period, based upon information available to it, that the addition of such new principal may have a result inimical to the purposes of this chapter, the licensee may add such new principal pending the completion of review by the Commission. The licensee shall be afforded an opportunity to demonstrate to the Commission that the addition of such new principal pending completion of such review would not have a result inimical to the purposes of this chapter. If upon the completion of such review, the Commission determines that such principal lacks good character, honesty, and integrity, the license shall cease to be valid unless such principal divests his or her interest, or discontinues his or her involvement in the business of such licensee, as the case may be, within the time period prescribed by the Commission.
(b) (1) An applicant for registration and a registrant, including a registrant issued a registration after the granting of an exemption from the licensing requirement of Subdivision a of § 16-505 of the Code, must notify the Commission within ten (10) business days of: (i) the addition of a principal to the business of a registrant after the submission of the application for registration or exemption from the licensing requirement, pursuant to this Chapter; (ii) the arrest or criminal conviction of any principal of a Class 2 registrant of which such applicant or registrant had knowledge or should have known, except where such disclosure is protected by Subdivision 16 of Section 296 of Article 15 of the New York State Executive Law; (iii) any determination by any Federal, State, or Local governmental agency or authority against such licensee, registrant or applicant, including but not limited to any judgment, decree, order, finding by or settlement agreement with such governmental agency or authority; (iv) any crash that involved a vehicle used in the course of the business of the applicant for registration or registrant; (v) the suspension or revocation of the driver's license of any person whose job duties include operating a vehicle on behalf of the applicant for registration or registrant; (vi) any other material change in the information submitted pursuant to this subchapter.
(2) For any crash required to be reported pursuant to Subparagraph (iv) of Paragraph (1) of this Subdivision, an applicant for registration or registrant must provide the Commission with a copy of the Report of Motor Vehicle Accident (MV-104) and any other forms filed with the New York State Department of Motor Vehicles within ten (10) business days from the date by which such applicant or registrant is required to file the forms with such department.
(c) Any material change in the information submitted pursuant to 17 RCNY § 2-04(d)(1) or 17 RCNY § 2-04(d)(2) shall be reported to the Commission by such labor union or labor organization or officer, in a signed and notarized writing, within ten (10) business days thereof.
(d) Notification pursuant to Paragraphs (1), (2), (5), (6), and (7) of Subdivision (a) and Subparagraphs (i), (ii) and (vii) of Paragraph (1) of Subdivision (b) of this section must be sworn and notarized and must be signed by all persons participating directly or indirectly in the control of the applicant business and by: the proprietor of an applicant if the applicant is a sole proprietorship; every officer and director and stockholder holding ten (10) percent or more of the outstanding shares of a corporation, if the applicant is a corporation; all the partners, if the applicant is a partnership; the chief operating officer or chief executive officer, irrespective of organizational title and all persons or entities having an ownership interest of ten (10) percent or more if the applicant is any other type of business entity. Notification pursuant to Paragraph (1) of Subdivision (a) of this section must be sworn and notarized and must be signed by the chief operating officer or chief executive officer, irrespective of organizational title, of the applicant or licensee, as the case may be.
(Amended City Record 3/6/2018, eff. 4/5/2018; amended City Record 10/17/2018, eff. 11/16/2018; amended City Record 7/23/2019, eff. 7/23/2019; amended City Record 3/27/2023, eff. 4/26/2023; amended City Record 8/1/2024, eff. 8/31/2024)
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-33021Fetched: 10/24/2026