Section 17-339. License

a. It shall be unlawful for any operator to assume
  control or store the medical records of any medical  facility  which  is
  discontinuing  operation  without  a  license  issued  by the department
  therefor.
    b. The commissioner shall have cognizance and control of the granting,
  issuance, transferring,  renewal,  denial,  revocation,  suspension  and
  cancellation  of  all licenses issued to operators to store and preserve
  medical records.
    c. All licenses issued pursuant to this section shall be valid for one
  year unless sooner suspended or revoked.
    d. Commissioner may impose reasonable fees for  the  license  provided
  for herein.
    e.  Each operator applying for a license or renewal thereof shall file
  an application in such form and detail as the commissioner may prescribe
  and shall pay the fee required by this  section.  In  addition  to  such
  information  required by the commissioner, any application for a license
  or renewal thereof shall contain information which will demonstrate  the
  operator's  ability  to  properly  maintain  and  store  medical records
  pursuant to the state approved plan.
    f. The New York city department of records  and  information  services
  shall  investigate,  inspect  and monitor the operations of the operator
  and  shall  recommend  to  the  commissioner  the  granting,   issuance,
  transferring, renewal, denial, cancellation, revocation or suspension of
  the license of an operator.
    g.  The  commissioner  may revoke or suspend a license and/or impose a
  penalty not exceeding five hundred dollars on a licensee and/or deny  an
  application for a license if, after notice and hearing, the commissioner
  finds that a licensee or applicant has:
    1. made a material misstatement or misrepresentation on an application
  for a license or renewal; or
    2.  violated  any  provision of this section or any rule or regulation
  promulgated pursuant to the provisions of this section; or
    3. failed or refused to  pay  any  penalty  imposed  pursuant  to  the
  provisions of this section; or
    4. failed to properly maintain medical records or to make such records
  available as provided by law.