DCA Subscribe to RSS - DCA

Department of Consumer Affairs
Codified Title: 
Title 6: Department of Consumer Affairs

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose of Rule

 

In October 2014, the City Council passed Local Law 53 of 2014, which requires employers with 20 or more full time employees working in New York City to offer the opportunity to purchase certain pre-tax transportation benefits to those employees. The law is expected to reduce transportation costs to employees, promote a cleaner environment by increasing the use of mass transit or transportation in an eligible commuter highway vehicle and lower payroll taxes for employers.

 

The adopted rules clarify provisions in the law, establish requirements to implement the law and meet its goals, and provide guidance to employers and employees. Specifically, the rule:

 

  • Clarifies the definition of full-time employee;
  • Requires that employees maintain certain documentation demonstrating compliance with the law;
  • Establishes how business size is calculated to determine whether a business is covered under the law; and
  • Clarifies how the law applies to temporary help firms;
  • Permits employers to offer certain transportation benefits at the employers’ expense in lieu of offering employees the opportunity to use pre-tax earnings to purchase qualified transportation fringe benefits.

 

New material is underlined.
[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

 

 

Rule

 

Section 1. Title 6 of the Rules of the City of New York is amended by adding a new chapter 8 to read as follows:

 

 

CHAPTER 8 TRANSPORTATION BENEFITS

           

§8-01 Definitions.

 

As used in this chapter, the following terms have the following meanings:

 

“Chain business” means a group of establishments that share a common owner or principal who owns a majority of each establishment where such establishments (i) engage in the same business or (ii) operate pursuant to franchise agreements with the same franchisor as defined in general business law section 681.

 

“Commuter highway vehicle” means a “commuter highway vehicle” as such term is defined in Section 132(f)(5)(B) of the Internal Revenue Code.

 

“Department” means the Department of Consumer Affairs of the City of New York.

 

“Employee” means an “employee,” “manual worker,” “railroad worker,” “commission salesman,” or “clerical or other worker” as such terms are defined in § 190 of the New York State Labor Law. For the purposes of this chapter, “employee” does not include partners, sole proprietors, independent contractors, or two-percent shareholders of S-corporations.

 

 “Employer” means an “employer” as such term is defined in § 190 of the New York State Labor Law and that employs twenty or more full-time employees in New York City. For the purposes of this chapter, the common owner or principal of a chain business shall be considered the employer of the full-time employees of such chain business.

 

“Full-time employee” means an employee who has worked an average of 30 hours or more per week in the most recent four weeks as of any date of counting, any portion of which was in New York City, for a single employer.

 

“Earnings” shall have the same meaning as the term “gross income” as used in § 132 of the Internal Revenue Code.

 

“Month” means an employer’s regularly established fiscal month.

 

“Temporary help firm” means an employer that recruits, hires and supplies employees to perform work or services for another organization to: (i) support or supplement the other organization’s workforce; (ii) provide assistance in special work situations including, but not limited to, employee absences, skill shortages or seasonal workloads; or (iii) perform special assignments or projects.

 

“Transportation Benefits Law” means Chapter 9 of Title 20 of the Administrative Code of the City of New York.

 

“Transportation fringe benefits” means qualified transportation fringe benefits, other than qualified parking, that may be purchased using pre-tax earnings in accordance with § 132 of the Internal Revenue Code.

 

“Week” means an employer’s regularly established payroll week.

 

§8-02 Determination of Size of Employer.

 

(a)                An employer’s number of full-time employees is determined by calculating the average number of full-time employees for the most recent consecutive three- month period, provided that for an employer that has operated for less than three months, the number of full-time employees is determined by calculating the average number of full-time employees per week for the period of time in which the employer has been in operation.

(b)               Full-time employees at all of an employer’s or a chain business’s locations in New York City shall be counted in determining the number of full-time employees of the employer.

 

§8-03 Temporary Help Firms.

 

(a)                Where a temporary help firm supplies a full-time employee to another organization, the temporary help firm shall be the employer of the full-time employee for purposes of the Transportation Benefits Law and must comply with its provisions, regardless of the size of the other organization.

(b)               To determine the number of hours worked each week by an employee working for a temporary help firm, the employer must aggregate the number of hours worked by the employee in the most recent four weeks at all placements.

 

§8-04 Employee Eligibility.

 

(a)                An employer must offer its full-time employees the opportunity to use pre-tax earnings to purchase transportation fringe benefits by January 1, 2016, or four weeks after such employee’s commencement of employment as a full-time employee of the employer, whichever is later.

(b)               If an employer’s work force is reduced to fewer than 20 full-time employees, the employer must continue to offer the opportunity to use pre-tax earnings to purchase transportation fringe benefits to full-time employees who were employer’s full-time employees before the work force was reduced.

 

§8-05 Maximum Deductions.

 

Employers must offer full-time employees the opportunity to use the maximum amount of pre-tax earnings permitted under federal law for the purchase of transportation fringe benefits.

 

§8-06 Recordkeeping Requirements.

 

Employers must retain records for two years sufficient to demonstrate (i) that each full-time employee eligible for transportation fringe benefits pursuant to the Transportation Benefits Law and this chapter was offered the opportunity to use pre-tax earnings to purchase transportation fringe benefits in accordance with this chapter and (ii) whether the employee accepted or declined the offer. Employers may use the form provided by the department and available on the department’s website to document compliance.

 

§8-07 Employer-Funded Transportation Benefits.

 

(a)                As an alternative to offering the opportunity to use pre-tax earnings to purchase transportation fringe benefits, an employer may provide at the employer’s expense a transit pass or similar form of payment for transportation on public or privately-owned mass transit or in a commuter highway vehicle.

(b)               If the employer-provided transit pass or similar form of payment is less than the maximum transportation fringe benefit that may be excluded from pre-tax earnings  under federal law, then the employer must offer employees the opportunity to use pre-tax earnings to purchase transportation fringe benefits for an amount equal to the difference between the value of the employer-provided transit pass or similar form of payment and the maximum amount that may be excluded from gross earnings under federal law.

 

§8-08 Financial Hardship Exemption

 

(a)                The department may waive the requirements of the Transportation Benefits Law for an employer if such employer demonstrates to the department’s satisfaction that offering the opportunity to use pre-tax earnings to purchase transportation fringe benefits would be a financial hardship for such employer.

 

(b)               To qualify for a waiver, an employer must present compelling evidence that complying with the Transportation Benefits Law would be impracticable and create a severe financial hardship.

 

§ 2. This rule takes effect on January 1, 2016.

Effective Date: 
Fri, 01/01/2016

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Thursday, November 5, 2015
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Section 20-464(d) of Subchapter 27 of Chapter 2 of Title 20 of the New York City Administrative Code prohibits a general vendor from selling, lending, leasing or transferring his or her general vendor license or interest in the license unless authorized by the Commissioner of the Department of Consumer Affairs. Currently, the laws and rules applicable to general vendors do not specify the circumstances under which the Commissioner may authorize the transfer of a vending license. Section 35-a of Article 4 of Chapter 20 of the New York State General Business Law requires the transfer of a specialized vending license held by a disabled veteran to the spouse, children or guardian of surviving minor children of the vendor in certain circumstances upon the death or disability of the licensee. The proposed rule would provide that transfer of general vending licenses is subject to the same set of standards as the transfer of specialized vending licenses, which currently apply only to disabled veterans . 

New material is underlined.
[Deleted material is in brackets.]

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this Department, unless otherwise specified or unless the context clearly indicates otherwise.

Proposed Rule

 

Subchapter AA of chapter 2 of title 6 of the Rules of the City of New York is amended by adding a new section 2-317 to read as follows:

 

§2-317  Transfer of General Vending Licenses.

(a) Upon the death of a licensed general vendor, the Department shall transfer the license to the surviving spouse, if any, of the general vendor if the spouse informs the Department he or she desires to use the license. If there is no surviving spouse or the surviving spouse elects not to use the license, the Department shall transfer the license to the guardian of a surviving minor child or children of the general vendor, provided the guardian intends to use the license for the support of the minor child or children. The Department shall issue a general vending license to the applicable party in his or her name upon submission to the Department of proof of the conditions upon which the transfer is based. The license shall revert to the Department for reassignment upon the death of the surviving spouse or when:

(1) the surviving spouse remarries;

(2) the youngest minor child of the surviving spouse reaches the age of eighteen; or

(3) the surviving spouse, or the guardian of the minor child or children to whom the license has been transferred, elects not to use the license to vend in the city of New York or abandons the use of the license.

Temporary periods when the surviving spouse or guardian do not vend shall not cause the license to revert to the Department in the absence of other evidence of an intent to abandon the use of the license; however, a period of six months or more in which the holder of the license does not vend shall create a rebuttable presumption that the spouse or guardian has abandoned the use of the license.

 

(b) If a licensed general vendor becomes totally and permanently disabled, he or she may transfer the license to his or her spouse or, if the licensee has no spouse, to an adult child if the child assumes the duty to support the licensee. The Department shall issue a general vending license to the applicable party in his or her name upon submission to the Department of proof of the conditions upon which such transfer is based. The license shall revert to Department when:

(1) the general vendor who held the license immediately before the transfer dies;

(2) the spouse to whom the license has been transferred dies or divorces the general vendor who held the license immediately before the transfer; or

(3) the child to whom the license has been transferred dies or renounces the obligation to support the general vendor who held the license immediately before the transfer.

 

(c) For purposes of this section, “spouse” includes a domestic partner.

 

(d)  Except as provided for in this section, no general vending license, and no interest in any general vending license, may be sold, lent, leased or transferred.

Subject: 

General Vendor License Transfer Rule Hearing

Location: 
66 John Street, 11th Floor
New York, NY 10038
Contact: 

Mary Cooley at 212-436-0392 or mcooley@dca.nyc.gov

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose of Rule

 

Section 20-105 of the Administrative Code of the City of New York (“Administrative Code”) provides that it shall be unlawful for any person to engage in any trade, business or activity for which a license is required without such license.  Section 20-105(b) of the Administrative Code provides that the Commissioner of the Department of Consumer Affairs (“the Department”) shall be authorized to impose fines, after notice and a hearing, upon any such person of $100 per violation, per day for each and every day during which such person commits such violation.

 

The rule is necessary to establish that if the Department, on notice of violation, charges a business or individual with engaging in unlicensed activity, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the first date of unlicensed activity identified by the Department in the notice through the date of the hearing.  The first date of identified unlicensed activity may be the date of inspection; the date a business or individual entered a contract to conduct unlicensed business; the date a business or individual advertised or offered unlicensed services; or any other date on which activity occurred that demonstrates that unlicensed business took place.

 

In addition, if a decision or order that predates the hearing found that the business or individual engaged in unlicensed activity, or if the business or individual settled earlier charges of unlicensed activity, the rule provides that it shall be presumed that the unlicensed activity continued from the date of the decision, order or settlement through the date of the hearing, unless the settlement specifically provides otherwise. 

 

A business or individual may present credible evidence at the hearing to rebut the presumption of continued unlicensed activity, such as proof of obtaining a license or proof that the unlicensed activity ceased. 

 

The rule will effectuate the legislative intent behind imposing a fine of $100 per day for unlicensed activity without requiring the Department to inspect a business or individual each and every day, which is impracticable.

 

 “Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

New text is underlined; deleted material is in [brackets].

 

Rule

 

Chapter 1 of Title 6 of the Rules of the City of New York is amended by adding a new section 1-19 to read as follows:

 

 §1-19  Presumption of Continued Unlicensed Activity.

 

(a)  Unless otherwise specified in the notice, if the Department, on notice, charges a business or individual with engaging in activity without a license required under Chapter 2 of Title 20 of the New York City Administrative Code or under provisions of state law enforced by the Department, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the date specified by the Department in the notice as the first date of unlicensed activity through the hearing date. 

 

(b)  The first date of unlicensed activity specified by the Department in the notice may be the date of an inspection at which unlicensed activity is identified or any other date on which unlicensed activity first occurred, such as the date the business or individual entered into a contract to conduct business for which a license was required or the first date a business or individual advertised or offered services for which a license was required.

a.

 

(c)  Regardless of the date specified by the Department in the notice, if the Department presents at the hearing a copy of a decision or order from a prior proceeding finding that the business or individual engaged in the same unlicensed activity, or a copy of a settlement from a prior proceeding resolving a charge of the same unlicensed activity, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the date of the decision, order or settlement through the date of the hearing, unless the decision, order or settlement specifically provides otherwise. 

 

(d)  A party may present credible evidence at the hearing to rebut the presumption of continued unlicensed activity, such as written proof that the party obtained a license; receipts or other documentation indicating that merchandise was returned to distributors; written termination of leases or agreements; or photographs demonstrating the discontinuance of the unlicensed activity.

Effective Date: 
Sun, 10/18/2015

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, October 19, 2015
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Local Law 44 of 2015 amended Section 20-271 of Title 20 of the New York City Administrative Code to require secondhand dealers in automobiles operating in New York City to display the total selling price for each automobile offered for sale and the price of specified add-on products and to disclose that the purchase of add-on products is optional.  The law also establishes penalties for lack of compliance with these requirements. The proposed rule is necessary to implement Local Law 44. 

Section 20-270 of the New York City Administrative Code requires dealers who sell both secondhand and new items to post a sign to that effect. Section 20-271, as amended by Local Law 44, requires such dealers to label secondhand articles to inform the public that the items are not new.  To protect consumers, the proposed rule provides examples of language that may be used to describe automobiles, products and parts that are not new.  

New material is underlined.
[Deleted material is in brackets.]

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

Proposed Rule

A new Section 2-105 is added to Subchapter K of Chapter 2 of Title 6 of the Rules of the City of New York to read as follows:

§2-105 Labeling of secondhand automobiles and posting of prices for secondhand automobiles

(a)    Labeling of Used Automobiles, Products and Parts.

(1)   All secondhand automobiles, products and parts sold by secondhand automobile dealers operating in New York City that are not new shall be labeled as such.  Easily understood words such as “secondhand,” “used,” “not new,” “demo model,” “pre-owned,” “refurbished” and “recycled” may be used to indicate that an item is not new.

(b)   Total Selling Price Signs.

(1)    The total selling price sign required by section 20-271(b)(1) of the administrative code of the city of New York shall be prominently displayed on the dashboard of the secondhand automobile to which the sign applies, or posted within five feet of the point of display of the secondhand automobile to which the sign applies.  If the dashboard of the secondhand automobile is not visible to the consumer at eye-level or accessible to the consumer, the sign shall be prominently displayed at the point of display of such automobile.

(2)   The total selling price sign shall display the total selling price in lettering that is clear, legible, bold and at least one inch in height.  The sign must clearly indicate the automobile to which the total selling price applies.

(3)   The total selling price sign shall state, in lettering that is clear, legible and at least one-half as high and one-half as broad as the largest print on the sign, that taxes and fees for securing registration and certificate of title are not included in the total selling price.

(c)    Add-On Product Signs.

(1)   Secondhand automobile dealers shall list the total selling price of add-on products, as defined in section 20-271(b)(2) of the administrative code of the city of New York in close proximity to the product description.  If multiple add-on products are grouped together on the same sign, each add-on product must be listed separately, one item per line, with the price of the add-on product located to the right of the product description.  Lettering for the description and the price of the add-on product must be clear, legible and the same size, which must be at least one inch in height. 

(2)   If add-on products are listed individually, the price of the add-on product must be in close proximity to the product description.  Lettering for the description and the price of the add-on product must be clear, legible and the same size, which must be at least one inch in height.

(3)   All signs required by section 20-271(b)(2) of the administrative code of the city of New York shall include the following language in lettering that is clear, legible, bold and capitalized, and at least one-half as high and one-half as broad as the largest print on the sign, but no less than one-quarter inch in height: “YOU ARE NOT REQUIRED TO BUY ANY ADD-ON PRODUCTS IN ORDER TO PURCHASE A CAR AT THE ADVERTISED PRICE.”

(d)   The requirements of subdivisions (b) and (c) of this section shall apply to secondhand automobiles dealers that operate in New York City.

Subject: 

Secondhand Automobile Price Display

Location: 
66 John Street, 11th Floor
New York, NY 10038
Contact: 

Mary Cooley at 212-436-0392 or mcooley@dca.nyc.gov

Download Copy of Proposed Rule (.pdf): 

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Friday, October 9, 2015
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

 

In October 2014, the City Council passed Local Law 53 of 2014, otherwise known as the Mass Transit Benefits Law, which requires employers with 20 or more full time employees to offer certain pre-tax mass transit benefits to their employees. The law is expected to reduce transportation costs to employees, promote a cleaner environment by increasing the use of mass transit and lower payroll taxes for employers.

 

The proposed rules clarify provisions in the Mass Transit Benefits Law, establish requirements to implement the law and meet its goals, and provide guidance to employers and employees. Specifically, the rules:

 

  • Set forth the minimum time an employee must have been employed by the company to qualify for transportation benefits;
  • Require that employees maintain certain documentation demonstrating compliance with the law;
  • Establish how business size is calculated to determine whether a business is covered under the law; and
  • Clarifies how the law applies to temporary help firms.

 

New material is underlined.
[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

 

 

Proposed Rule

 

Section 1. A new chapter 9 of Title 6 of the Rules of the City of New York is added to read as follows:

 

 

CHAPTER 9 MASS TRANSIT BENEFITS

           

§9-01 Definitions.

 

As used in this chapter, the following terms have the following meanings:

 

“Chain business” means any employer that is part of a group of establishments that share a common owner or principal who owns at least thirty percent of each establishment where such establishments (i) engage in the same business or (ii) operate pursuant to franchise agreements with the same franchisor as defined in general business law section 681; provided that the total number of employees of all such establishments is at least twenty.

 

“Transportation fringe benefits” means the pre-tax payroll deduction, authorized pursuant to 26 U.S.C. § 132(a)(5), that employers are required to offer to full-time employees under the Mass Transit Benefits Law for the full-time employee to purchase transit passes or similar forms of payment for transportation on public or privately-owned mass transit to commute to or from a workplace or work location in New York City.

 

“Employee” means an “employee,” “manual worker,” “railroad worker,” “commission salesman,” and “clerical or other worker” as set forth in § 190 of the New York State Labor Law.

 

 “Employer” means “employer” as set forth in § 190 of the New York State Labor Law that employs twenty or more full-time employees in New York City.

 

“Full-time employee” means an “employee,” “manual worker,” “railroad worker,” “commission salesman,” and “clerical or other worker” as set forth in § 190 of the New York State Labor Law who has worked an average of 30 hours or more per week in the most recent four weeks, any portion of which was in New York City, for a single employer.

 

“Mass Transit Benefits Law” means Chapter 9 of Title 20 of the Administrative Code of the City of New York as amended from time to time and in effect.

 

“Month” has the meaning set forth in § 190(8) of the New York State Labor Law.

 

“Temporary help firm” means an employer that recruits, hires and supplies employees to perform work or services for another organization to: (i) support or supplement the other organization’s workforce; (ii) provide assistance in special work situations including, but not limited to, employee absences, skill shortages or seasonal workloads; or (iii) perform special assignments or projects.

 

            “Week” has the meaning set forth in § 190(8) of the Labor law.

 

§9-02 Qualified Transportation Fringe Benefits

 

For purposes of the Mass Transit Benefits Law, “qualified transportation fringe benefits” means transportation fringe benefits as defined in § 9-01 of this chapter.

 

§9-03 Full-time Employees and Determination of Size of Employer.

 

(a)                For purposes of the Mass Transit Benefits Law, a “full-time employee” means full-time employee as defined in § 9-01 of this chapter, including the requirement in that definition that an employee must work an average of 30 hours or more per week during a four week period before he or she qualifies as a “full-time employee.”

(b)               An employer’s number of full-time employees is determined by calculating the average number of full-time employees for the most recent consecutive three- month period, provided that for an employer that has operated for less than three months, the number of full-time employees is determined by calculating the average number of full-time employees per week for the period of time in which the employer has been in operation.

(c)                Full-time employees at all of an employer’s or a chain business’s locations in New York City shall be counted in determining the number of full-time employees of the employer.

 

§9-04 Temporary Help Firms.

 

(a)                Where a temporary help firm supplies a full-time employee to another organization, the temporary help firm shall be the employer of the full-time employee for purposes of the Mass Transit Benefits Law and must comply with its provisions, regardless of the size of the other organization.

(b)               To determine the number of hours worked each week by an employee working for a temporary help firm, the employer must aggregate the number of hours worked by the employee in the most recent four weeks at all placements.

 

§9-05 Employee Eligibility.

 

(a)                An employer must provide transportation fringe benefits to full-time employees by January 1, 2016, or four weeks after employment as a full-time employee with employer, whichever is later.

(b)               An employer is not required to provide transportation fringe benefits to a full-time employee who works remotely and does not commute to a physical office or work site in New York City.

(c)                If an employer’s work force is reduced to fewer than 20 full-time employees, the full-time employees using pre-tax earnings to purchase transportation fringe benefits before the work force was reduced must continue to be provided with the opportunity to use pre-tax earnings to purchase transportation fringe benefits for the duration of their employment as a full-time employee.

 

 

§9-06 Maximum Deductions.

 

Employers must offer full-time employees the maximum amount permitted for pre-tax deductions for transportation fringe benefits as are available under federal law.

 

§9-07 Recordkeeping Requirements.

 

Employers must retain records for two years sufficient to demonstrate that (i) each full-time employee eligible for transportation fringe benefits pursuant to the Mass Transit Benefits Law and this Chapter was offered the opportunity to use pre-tax earnings to purchase transportation fringe benefits to the extent permitted under federal law and (ii) whether the employee accepted or declined the offer. Employers may use the form provided by the Department and available on the Department’s website to document compliance.

 

§9-08 Employer-Funded Transit Benefits.

 

(a)                As an alternative to providing the opportunity to purchase pre-tax transportation fringe benefits, an employer may provide at the employer’s expense a transit pass or similar form of payment for transportation on public or privately-owned mass transit to commute to or from a workplace or work location in New York City.

(b)               If the employer-provided transit pass or similar form of payment is less than the maximum qualified transportation fringe benefit allowed under federal law, then the employer must offer employees the opportunity to make up the difference in pre-tax payroll deductions.

Subject: 

Mass Transit Benefits Rules

Location: 
66 John Street, 11th Floor
New York, NY 10038
Contact: 

Mary Cooley at mcooley@dca.nyc.gov or 212-436-0392

Download Copy of Proposed Rule (.pdf): 

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose of Rule

 

Section 2-57(c) of Title 6 of the Rules of the City of New York, Chapter 2, subchapter F, sets forth the insurance requirements that must be satisfied by a sidewalk café licensee throughout the term of its license.  This rule is amended to clarify the insurance requirements and bring them, including by raising the minimum amounts of coverage, into conformity with city-wide standards. 

 

     Specifically, the amendments:

 

  • Clarify the A.M. Best or Standard & Poor’s rating the issuing insurance company must satisfy;

 

  • Raise the minimum amounts of coverage to one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

 

  • Clarify that the coverage must at least be as broad as provided in the most recently issued edition of Insurance Services (“ISO”) Form CG 001 and that it be “occurrence” rather than “claims-made”;

 

  • Clarify that the coverage for the City of New York as an Additional Insured must be as broad as provided in the most recent edition of the ISO Form CG 2026;

 

  • Require that the coverage meet the requirements of the rule and the terms of the licensee’s revocable consent agreement;

 

  • Require that the licensee provide to the Department an endorsement(s) naming the City of New York as an Additional Insured and proof of the insurance by submission of a certificate of insurance in a form satisfactory to the Department; and

 

  • Require that the endorsement and certificate of insurance satisfy the requirements of the rule and the terms of the licensee’s revocable consent agreement, clarify the information that must be included, and require a sworn statement in a form prescribed by the Department from a licensed insurer or broker certifying that the certificate of insurance is accurate in all material aspects.

New text is underlined; deleted material is in [brackets].

 

Rule

 

Subdivision (c) of section 2-57 of Title 6 of the Rules of the City of New York is amended to read as follows:

 

(c) [Every licensee must secure and maintain throughout the term of the license liability insurance issued by a company duly authorized to do business in the State of New York, insuring the licensee and the city of New York and to hold them harmless from and against any claim, injury, or damage caused or alleged to be caused by or as a result of the construction, operation or use of the sidewalk café and any structure hereby authorized in the following amounts:] Insurance Requirements.

(1) [For bodily injury including death, in (i) the minimum amount of $100,000 for any one (1) person and (ii) the minimum amount of $300,000 for any one (1) accident; and] Every licensee must secure and maintain throughout the term of the license commercial general liability (“CGL”) insurance, which shall:

(i) be issued by a company that may lawfully issue the CGL policy.  The company must have an A.M. Best rating of at least A-/VII or a Standard and Poor’s rating of at least A;

(ii) insure both the licensee and the City of New York and protect them from any claims for injury (including death) or property damage that may arise from or allegedly arises from construction, operation or use of the sidewalk café and any structure hereby authorized;

(iii) provide coverage of at least one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

(iv) provide coverage at least as broad as that provided in the most recently issued edition of Insurance Services Office (“ISO”) Form CG 001 and be “occurrence” based rather than “claims-made”; and

(v) name the City of New York as an Additional Insured with coverage at least as broad as the most recent edition ISO Form CG 2026.

(2) [for property damage in the minimum amount of $25,000.] Failure to maintain insurance coverage in [the foregoing amounts] complete conformity with this rule and the terms of licensee’s revocable consent agreement shall cause the immediate revocation of the license.

(3) Every licensee shall provide the endorsement(s) naming the City as an Additional Insured and proof of CGL insurance by submission of a certificate of insurance in a form satisfactory to the Department that:

(i) satisfies the requirements of this rule and the terms of licensee’s revocable consent agreement;

(ii) identifies the insurance company that issued such insurance policy, the policy number, limit(s) of insurance, and expiration date; and

(iii) is accompanied by a sworn statement in a form prescribed by the Department from a licensed insurance broker or agent certifying that the certificate of insurance is accurate in all material respects.

 

 

Effective Date: 
Fri, 10/02/2015

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, August 10, 2015
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Section 2-57(c) of Title 6 of the Rules of the City of New York, Chapter 2, subchapter F, sets forth the insurance requirements that must be satisfied by a sidewalk café licensee throughout the term of its license.  The Department of Consumer Affairs proposes amendments to clarify the requirements and bring them into line with city-wide standards, including by raising the minimum amounts of coverage.  Specifically, the proposed amendments:

  • Clarify the A.M. Best or Standard & Poor’s rating the issuing insurance company must satisfy;

 

  • Raise the minimum amounts of coverage to one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

 

  • Clarify that the coverage must at least be as broad as provided in the most recently issued edition of Insurance Services (“ISO”) Form CG 001 and that it be “occurrence” rather than “claims-made”;

 

  • Clarify that the coverage for the City of New York as an Additional Insured must be as broad as provided in the most recent edition of the ISO Form CG 2026;

 

  • Require that the coverage meet the requirements of the rule and the terms of the licensee’s revocable consent agreement;

 

  • Require that the licensee provide to the Department an endorsement(s) naming the City of New York as an Additional Insured and proof of the insurance by submission of a certificate of insurance in a form satisfactory to the Department; and

 

  • Require that the endorsement and certificate of insurance satisfy the requirements of the rule and the terms of the licensee’s revocable consent agreement, clarify the information that must be included, and require a sworn statement in a form prescribed by the Department from a licensed insurer or broker certifying that the certificate of insurance is accurate in all material aspects.

New material is underlined.

[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

Proposed Rule

Subdivision (c) of section 2-57 of Title 6 of the Rules of the City of New York is amended to read as follows:

 

(c) [Every licensee must secure and maintain throughout the term of the license liability insurance issued by a company duly authorized to do business in the State of New York, insuring the licensee and the city of New York and to hold them harmless from and against any claim, injury, or damage caused or alleged to be caused by or as a result of the construction, operation or use of the sidewalk café and any structure hereby authorized in the following amounts:] Insurance Requirements.

(1) [For bodily injury including death, in (i) the minimum amount of $100,000 for any one (1) person and (ii) the minimum amount of $300,000 for any one (1) accident; and] Every licensee must secure and maintain throughout the term of the license commercial general liability (“CGL”) insurance, which shall:

(i) be issued by a company that may lawfully issue the CGL policy.  The company must have an A.M. Best rating of at least A-/VII or a Standard and Poor’s rating of at least A;

(ii) insure both the licensee and the City of New York and protect them from any claims for injury (including death) or property damage that may arise from or allegedly arises from construction, operation or use of the sidewalk café and any structure hereby authorized;

(iii) provide coverage of at least one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate;

(iv) provide coverage at least as broad as that provided in the most recently issued edition of Insurance Services Office (“ISO”) Form CG 001 and be “occurrence” based rather than “claims-made”; and

(v) name the City of New York as an Additional Insured with coverage at least as broad as the most recent edition ISO Form CG 2026.

(2) [for property damage in the minimum amount of $25,000.] Failure to maintain insurance coverage in [the foregoing amounts] complete conformity with this rule and the terms of licensee’s revocable consent agreement shall cause the immediate revocation of the license.

(3) Every licensee shall provide the endorsement(s) naming the City as an Additional Insured and proof of CGL insurance by submission of a certificate of insurance in a form satisfactory to the Department that:

(i) satisfies the requirements of this rule and the terms of licensee’s revocable consent agreement;

(ii) identifies the insurance company that issued such insurance policy, the policy number, limit(s) of insurance, and expiration date; and

(iii) is accompanied by a sworn statement in a form prescribed by the Department from a licensed insurance broker or agent certifying that the certificate of insurance is accurate in all material respects.

Subject: 

Sidewalk Cafe Insurance Rule

Location: 
66 John Street, 11th Floor
New York, NY 10038
Contact: 

Mary Cooley at 212-436-0392 or mcooley@dca.nyc.gov

Download Copy of Proposed Rule (.pdf): 

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose of Rule

 

Section 2203 of the New York City Charter authorizes the Commissioner to enforce laws prohibiting deceptive trade practices and, upon notice and hearing, to impose civil penalties for the violation of such laws.  Section 2203(h)(3) of the Charter provides that no act or practice shall be deemed a deceptive trade practice unless it has been declared as such, and described with reasonable particularity in a law or rule promulgated by the Commissioner. 

 

Pursuant to subchapter 11 of Chapter 2 of Title 20 of the New York City Administrative Code, the Department regulates the sale of used automobiles and licenses used automobile dealers.  The Federal Trade Commission has promulgated 16 C.F.R. 455.2, which requires used car dealers to prominently display a Buyer’s Guide before offering any used automobile for sale.  The rule would makes a seller’s failure to display the Buyer’s Guide a deceptive trade practice for purposes of section 20-701 of the Administrative Code.

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of the Department, unless otherwise specified or unless the context clearly indicates otherwise.

 

New text is underlined; deleted material is in [brackets].

 

 

 

Rule

 

Chapter 5 of Title 6 of the Rules of the City of New York is amended to add a new Section 5-75 to read as follows:

 

  §5-75  Used Car Buyer’s Guide. 

  (a)  It shall be a deceptive trade practice for purposes of section 20-701 of the administrative code for any seller to sell or offer to sell any used automobile without posting a Buyer’s Guide as required under section 455.2 of title 16 of the code of federal regulations.    

Effective Date: 
Sun, 07/12/2015

Proposed Rules: Closed to Comments

Agency:
Comment By: 
Monday, June 22, 2015
Proposed Rules Content: 

Statement of Basis and Purpose of Proposed Rule

Section 20-105 of the Administrative Code of the City of New York (“Administrative Code”) provides that it shall be unlawful for any person to engage in any trade, business or activity for which a license is required without such license.  Section 20-105(b) of the Administrative Code provides that the Commissioner of the Department of Consumer Affairs (“the Department”) shall be authorized to impose fines, after notice and a hearing, upon any such person of $100 per violation, per day for each and every day during which such person commits such violation.  

The proposed rule is necessary to establish that if the Department, on notice of violation, charges a business or individual with engaging in unlicensed activity, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the first date of unlicensed activity identified by the Department in the notice through the date of the hearing.  The first date of identified unlicensed activity may be the date of inspection; the date a business or individual entered a contract to conduct unlicensed business; the date a business or individual advertised or offered unlicensed services; or any other date on which activity occurred that demonstrates that unlicensed business took place.

In addition, if a decision or order that predates the hearing found that the business or individual engaged in unlicensed activity, or if the business or individual settled earlier charges of unlicensed activity, the proposed rule provides that it shall be presumed that the unlicensed activity continued from the date of the decision, order or settlement through the date of the hearing, unless the settlement specifically provides otherwise. 

A business or individual may present credible evidence at the hearing to rebut the presumption of continued unlicensed activity, such as proof of obtaining a license or proof that the unlicensed activity ceased.  

The proposed rule will effectuate the legislative intent behind imposing a fine of $100 per day for unlicensed activity without requiring the Department to inspect a business or individual each and every day, which is impracticable.

 “Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

New text is underlined; deleted material is in [brackets].

Proposed Rule

Chapter 1 of Title 6 of the Rules of the City of New York is amended by adding a new section 1-19 to read as follows:

  §1-19  Presumption of Continued Unlicensed Activity.

  (a)  Unless otherwise specified in the notice, if the Department, on notice, charges a business or individual with engaging in activity without a license required under Chapter 2 of Title 20 of the New York City Administrative Code or under provisions of state law enforced by the Department, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the date specified by the Department in the notice as the first date of unlicensed activity through the hearing date. 

  (b)  The first date of unlicensed activity specified by the Department in the notice may be the date of an inspection at which unlicensed activity is identified or any other date on which unlicensed activity first occurred, such as the date the business or individual entered into a contract to conduct business for which a license was required or the first date a business or individual advertised or offered services for which a license was required.

a.

  (c)  Regardless of the date specified by the Department in the notice, if the Department presents at the hearing a copy of a decision or order from a prior proceeding finding that the business or individual engaged in the same unlicensed activity, or a copy of a settlement from a prior proceeding resolving a charge of the same unlicensed activity, there shall be a rebuttable presumption that the unlicensed activity continued every day, without interruption, from the date of the decision, order or settlement through the date of the hearing, unless the decision, order or settlement specifically provides otherwise. 

  (d)  A party may present credible evidence at the hearing to rebut the presumption of continued unlicensed activity, such as written proof that the party obtained a license; receipts or other documentation indicating that merchandise was returned to distributors; written termination of leases or agreements; or photographs demonstrating the discontinuance of the unlicensed activity.

Subject: 

Unlicensed Activity Rule

Location: 
66 John Street, 11th Floor
New York, NY 10038
Contact: 

Mary Cooley at 212-436-0392 and mcooley@dca.nyc.gov

Adopted Rules: Closed to Comments

Adopted Rules Content: 

Statement of Basis and Purpose

 

Section 2-224(c) of Title 6 of the Rules of the City of New York authorizes the Commissioner of the Department of Consumer Affairs to pay out funds from the Fund.  The proposed rule would increase the limit from $20,000 to $25,000 on the amount that Department can pay out from the Fund for all awards, fines and judgments arising out of a single home improvement contract.   This increase is necessary because the current limit is insufficient to cover judgments to aggrieved consumers.  In the last 5 years, 287 restitution judgments were paid from the Fund.  Approximately 35% of these cases involved awards in excess of $20,000.  The balance in the Fund is sufficient to cover the proposed increase.

 

New material is underlined.
[Deleted material is in brackets.]

 

“Shall” and “must” denote mandatory requirements and may be used interchangeably in the rules of this department, unless otherwise specified or unless the context clearly indicates otherwise.

 

Rule

 

Paragraph (3) of subdivision (c) of Section 2-224 of Subchapter V of Chapter 2 of Title 6 of the Rules of the City of New York is amended to read as follows:

 

(3) Disbursements from the Fund will be made at the discretion of the Commissioner or his or her designee [, provided, however, that invasion of the Fund] and shall be limited to no more than twenty-five thousand dollars for all awards, fines and judgments arising out of a single home improvement contract.

Effective Date: 
Fri, 06/19/2015

Pages