Int. No. 1308-A

By Council Members Menin, Louis, Narcisse, Lee, Salaam, Gennaro and Morano

A Local Law to amend the administrative code of the city of New York, in relation to reforming certain business licensing requirements, and to repeal subchapter 15 of title 20 of such code, relating to licensing locksmiths, subdivision b of section 20-406 of such code, relating to fingerprinting process servers, section 20-406.1 of such code, relating to process server bond requirements, section 20-411 of such code, relating to definitions applicable to electronic or home appliance service dealers, section 20-474.1 of such code, relating to distributor’s licenses, section 20-474.2 of such code, relating to identifying vehicles used by distributors, and subchapter 29 of chapter 2 of title 20 of such code, relating to licensing electronics stores, and to make other technical and conforming amendments in relation thereto

Be it enacted by the Council as follows:

Section 1. Subdivision d of section 17-308 of the administrative code of the city of New York is amended to read as follows:

d. [The fee] No fee shall be charged or collected for issuing a duplicate license, permit or plate when the original has been lost, destroyed or mutilated [shall be: ten dollars].

§ 2. Subdivision a of section 17-328 of the administrative code of the city of New York is amended to read as follows:

a. Each horse licensed pursuant to the provisions of this subchapter shall be assigned an official identification number by the department. Such identification number shall be branded on the hoof of the horse in a manner to be prescribed by the commissioner and shall also be inscribed on a metal tag which shall be attached to the bridle of the horse in a conspicuous place to be specified by the commissioner at all times when the horse is at work. Such tag shall be issued to the owner with the certificate of license. The tag and certificate of license shall be of such form and design and shall contain such information as the commissioner shall prescribe. Duplicate tags [and certificates of license] shall be issued only upon proof of loss of the original and the payment of a fee of two dollars. When a certificate of license is lost, destroyed, or mutilated, a duplicate certificate of license shall be issued free of charge and no fee shall be charged or collected therefor.

§ 3. Section 20-107 of the administrative code of the city of New York is amended by adding a new subdivision d to read as follows:

d. When a license is lost, destroyed, or mutilated, a duplicate license shall be issued free of charge and no fee shall be charged or collected therefor.

§ 4. Section 20-204 of the administrative code of the city of New York, as added by local law number 2 for the year 2000, is amended to read as follows:

§ 20-204 Duplicate licenses. Whenever any license issued under the provisions of this subchapter is defaced, destroyed or lost, the commissioner shall issue a duplicate license to the holder of the defaced, destroyed or lost license [upon the payment of a fee of fifteen dollars], and no fee shall be charged or collected therefor.

§ 5. Sections 20-264, 20-265, and 20-266 of the administrative code of the city of New York, as added by local law number 19 for the year 2007, are redesignated sections 20-263.1, 20-263.2, and 20-263.3, respectively.

§ 6. Subdivision b of section 20-264 of the administrative code of the city of New York, as added by chapter 907 of the laws of 1985, is amended to read as follows:

b. Nothing contained in this subchapter shall be construed to apply to:

1. Pianos, books, magazines, rugs, tapestries, artists' burlaps, painting, sculpture, drawings, etchings [and], engravings, clothing, shoes, footwear, and other apparel;

2. The first purchase or sale in the city of any imported second-hand article;

3. The acceptance or receipt of merchandise which is not second-hand as a return, exchange, or for credit or refund if such merchandise was originally purchased as new merchandise from the person accepting or receiving the same, nor to the resale of such merchandise;

4. The acceptance or receipt of second-hand merchandise as a return, trade-in, exchange, or for credit or refund if such merchandise was originally purchased as new merchandise from the person accepting or receiving the same, nor to the first subsequent sale or exchange of such merchandise to any person other than [an ultimate] a consumer, as defined in section 20-701;

5. The first sale[,] at retail of merchandise which has been rebuilt by the manufacturer or vendor originally manufacturing it, or the licensed agents thereof, and sold as factory rebuilt merchandise; or

6. The purchase or sale of goods if such purchase or sale is conducted solely on the internet.

§ 7. Section 20-266 of the administrative code of the city of New York, as amended by local law number 8 for the year 1995, is amended to read as follows:

§ 20-266 [Bonds; fee] Fee; term; fingerprinting. a. [Each dealer securing a general license shall furnish a bond to the city, with sufficient surety, to be approved by the commissioner in the penal sum of one thousand dollars conditioned for the due observance of the law relating to such dealers.

b.] The fee for licenses shall be as follows: for a general license, a biennial fee of [three hundred forty dollars] $340; for a second-hand automobile dealer's license, a biennial fee of [six hundred dollars] $600.

[c.] b. The commissioner shall require that applicants for licenses issued pursuant to this subchapter to be second-hand automobile dealers must be fingerprinted for the purpose of securing criminal history records from the state division of criminal justice services. The applicant shall pay a processing fee as required by the state division of criminal justice services. Fingerprints shall be taken of the individual owner if the applicant is a sole proprietorship; the general partners if the applicant is a partnership; and the officers, principals, directors, and stockholders owning more than ten percent of the outstanding stock of the corporation if the applicant is a corporation. Any person required to be fingerprinted hereunder shall furnish to the department three current passport-size photographs of such person. Notwithstanding the foregoing, the commissioner need not require applicants for licenses required under this subchapter to be fingerprinted if criminal history records concerning such applicants are not available from the state division of criminal justice services.

§ 8. Subdivision g of section 20-273 of the administrative code of the city of New York, as added by local law number 149 for the year 2013, is amended to read as follows:

g. Nothing in this section shall be construed to affect or supersede any recordkeeping requirement imposed by or pursuant to any other applicable federal, state or local law, or to require the disclosure of any records in a manner inconsistent with federal, state or local law.

§ 9. Section 20-297.4 of the administrative code of the city of New York, as added by local law number 98 for the year 2021, is amended to read as follows:

§ 20-297.4 Fee[; bond]. a. Before the commissioner may issue a license to establish, maintain or operate an industrial laundry, an applicant shall pay a biennial fee [and furnish a bond] to the commissioner in the amount indicated in the following schedule, depending on the number of persons employed by such applicant:

b. Before the commissioner may issue a license to establish, maintain or operate a business that engages in industrial laundry delivery, an applicant shall pay a biennial fee of $340 [and furnish a bond of $500.

c. An applicant furnishing a bond under this section shall execute such bond with two or more sureties or a duly authorized surety company approved by the commissioner and shall make such bond payable to the people of the city. Such bond shall be conditioned on the following:

1. That such applicant will comply with the provisions of this subchapter; and

2. That such applicant will pay to the city any fine, penalty or other obligation within 30 days of its imposition, or any final judgment recovered by any person dealing or trading with such licensee for the loss or conversion of laundry within 30 days from the entry and filing of such judgment].

§ 10. Subchapter 15 of title 20 of the administrative code of the city of New York is REPEALED and a new subchapter 15 is added to read as follows:

SUBCHAPTER 15

LOCKSMITHS

§ 20-298 Definitions. As used in this subchapter, the following terms have the following meanings:

Locksmith. The term “locksmith” means a person who engages professionally and for compensation in repairing, servicing, installing, inspecting, opening, and closing locks by mechanical, electrical, or electromechanical means, other than with the regular key made for the purpose, without altering, marring or destroying the original condition or effectiveness of such locks or similar devices in any shape or manner.

Locksmith business. The term “locksmith business” means a sole proprietorship, partnership, or commercial entity that provides locksmith services.

§ 20-299 Locksmith business license required. It is unlawful for any person to perform the services of a locksmith unless the person is an owner, employee of, or is otherwise engaged by or operating on behalf of, a locksmith business that is duly licensed pursuant to this subchapter.

§ 20-300 License fee; term. a. There shall be a biennial fee of $100 for a license to conduct a locksmith business.

b. The term of a locksmith business license is 2 years. The commissioner may prescribe the expiration date of such licenses and may prorate the fee required by subdivision a for an applicant who will hold such a license for less than a full term.

§ 20-301 Duties of licensees; employee records; registration. a. Each licensed locksmith business shall take appropriate measures to ensure that all locksmiths and other persons employed or otherwise operating on behalf of such business comply with all applicable requirements of this subchapter and other applicable laws, rules, and regulations.

b. Each licensed locksmith business shall maintain employee records in such manner as the commissioner shall require, and ensure that such business has adequate procedures and safeguards in place to comply with this subchapter and other applicable laws, rules, and regulations. The commissioner may require individual employees of a locksmith business to register with the department.

§ 20-302 Prohibition; duties of locksmiths. a. It is unlawful for any person other than a locksmith operating on behalf of a licensed locksmith business to open any lock for which a key or combination may have been lost; or to make any repairs to, or change in, the adjustment or combination of any lock; or to make any original key or any other device to open a lock.

b. Every locksmith shall keep a book in which such locksmith must record (i) the name and address of every person ordering master keys, keys by number, or ordering the opening of a locked item and the date and time such work was done; and (ii) the means the locksmith used to identify any person ordering the opening of a locked item and to verify ownership of a locked item or authorization to order the opening of a locked item. Such book shall be open at all reasonable times for inspection by the commissioner, any departmental inspector, any police officer, or any person duly authorized by the commissioner, in accordance with applicable law and rules and with appropriate notice.

c. Every locksmith who is requested to open a locked item that is located on premises other than where the locksmith business is conducted shall, before opening such locked item, present to the person making such request a copy of the locksmith business license issued pursuant to this subchapter under which such locksmith is authorized to provide locksmith services.

d. Every locksmith shall make a good faith effort to (i) determine the identification of any person requesting the opening of a locked item; and (ii) obtain proof that a person requesting the opening of a locked item is the proper owner of the locked item or is authorized to request that the locked item be unlocked.

e. Every locksmith opening a locked item shall obtain the signature or mark of the person requesting the opening of such locked item on a form to be prescribed by the commissioner. Such form shall state, in such manner as the commissioner shall establish by rule, that the person requesting that an item be opened is authorized to open such item. Such form shall be retained by the locksmith in such manner as the commissioner shall require, and shall be available at all reasonable times for inspection by the commissioner, any departmental inspector, any police officer, or any person duly authorized by the commissioner or any judge of the criminal court, in accordance with applicable law and rules and with appropriate notice.

§ 20-303 Keys to be marked. Every key made by a locksmith shall be stamped with the name and address, or the license number issued by the commissioner, of the locksmith business on whose behalf such locksmith is operating. All master keys shall bear the word “master”, and duplicates shall be made only upon the signed order of the owner of the locks which such keys are designed to operate or such owner’s authorized agent. Master keys shall be made only by a locksmith operating on behalf of a licensed locksmith business.

§ 20-304 License to be displayed. a. Every locksmith business shall display the license issued pursuant to this subchapter in a conspicuous place where it can be readily seen by any person entering the premises where such business is conducted. A locksmith business shall also display its license number on its website to the extent such locksmith business maintains a website.

b. Every locksmith employed by or otherwise operating on behalf of a locksmith business shall prominently display such business’s license number on any working kit or vehicle that such locksmith uses in the course of business.

§ 20-305 Refusal to issue or renew license; suspension; revocation. In addition to any of the powers that may be exercised by the commissioner pursuant to this subchapter or chapter 1 of this title, the commissioner, after notice and an opportunity to be heard, may refuse to issue or renew, or may suspend or revoke, a license required under this subchapter if the applicant or licensee, or any of its principals, officers, directors, or employees, or any person having more than 10 percent ownership of the applicant or licensee has been convicted of a crime which, in the judgment of the commissioner, has a direct relationship to such applicant’s or licensee’s fitness or ability to perform any of the activities for which a license is required under this subchapter or has been convicted of any other crime where, in accordance with article 23-a of the correction law, the commissioner, based on a conviction for such crime, may refuse to issue or renew, or to suspend or revoke, such license. The commissioner, after notice and an opportunity to be heard, may refuse to issue or renew, or may suspend or revoke, a license required under this subchapter if the applicant or licensee, or any of its principals, officers, directors, or employees, or any person having more than 10 percent ownership of the applicant or licensee has violated any provision of this subchapter or the rules promulgated thereunder, or has violated any provision of chapter 5 of this title or the rules promulgated thereunder, on more than 3 occasions in the preceding 2 years.

§ 20-306 Exemptions. An employee of a city, state, or federal agency who is assigned to locksmith work wholly within such agency is exempt from the operation of this subchapter.

§ 11. Section 20-388 of the administrative code of the city of New York, subdivision 1 as amended by local law number 31 for the year 2020, is amended to read as follows:

§ 20-388 Fees; term. [1. The fee for a license to conduct a home improvement business shall be fifty dollars and for each renewal thereof the fee shall be fifty dollars] a. There shall be a biennial fee of $200 for a license to conduct a home improvement business.

[2. The fee for issuing a duplicate license or for one] When a license is lost, destroyed or mutilated [shall be ten dollars], a duplicate license shall be issued free of charge and no fee shall be charged or collected therefor.

§ 12. The section heading of section 20-406 of the administrative code of the city of New York, as amended by local law number 66 for the year 1989, is amended to read as follows:

§ 20-406 Application[; fingerprinting].

§ 13. Subdivision b of section 20-406 of the administrative code of the city of New York is REPEALED and subdivision c of such section is redesignated subdivision b.

§ 14. Section 20-406.1 of the administrative code of the city of New York is REPEALED.

§ 15. Section 20-406.3 of the administrative code of the city of New York, as added by local law number 7 for the year 2010, subdivision c as amended by local law number 112 for the year 2019, and subdivision d as added by local law number 112 for the year 2019, is amended to read as follows:

§ 20-406.3 Records[, Audits]. a. Every process server and process serving agency licensed under this subchapter shall retain records in compliance with section 89-cc of the New York state general business law for no less than [seven (7)] 7 years of each process served. Such records shall be retained in electronic form. Tampering with any such electronic records shall be prohibited.

b. A process server licensed under this subchapter who engages in the business of serving process exclusively as an employee of a process serving agency licensed under this subchapter shall not be subject to the provisions of subdivision [(a)] a of this section, but shall be required to comply with all other applicable laws.

c. The commissioner [shall] may conduct audits of the information required to be kept pursuant to subdivision a of this section in order to monitor compliance with this subchapter. The commissioner [shall conduct annual audits] may request, as part of any audit of the information required to be kept pursuant to subdivision a, [for at least 20 percent of the] records from any licensed process servers who have certified, pursuant to subdivision d, having served at least one summons, subpoena, notice, citation or other process, directing an appearance or response to a legal action, legal proceeding or administrative proceeding that is subject to the provisions of section 110 of the civil court act, in accordance with applicable law and rules and with appropriate notice.

d. [By February 1, 2020 and every six months thereafter] No later than 12 months after the commissioner issues a process server a license, and every 12 months thereafter, each licensed process server shall submit electronically to the commissioner a certification, in a form to be determined by the commissioner, stating whether the licensed process server has served at least one summons, subpoena, notice, citation or other process, directing an appearance or response to a legal action, legal proceeding or administrative proceeding that is subject to the provisions of section 110 of the civil court act within the immediately prior semi-annual calendar year period.

§ 16. Section 20-410 of the administrative code of the city of New York, as added by local law number 7 for the year 2010, is redesignated section 20-409.4.

§ 17. The heading of subchapter 24 of chapter 2 of title 20 of the administrative code of the city of New York is amended to read as follows:

SUBCHAPTER 24

ELECTRONICS STORES AND ELECTRONIC OR HOME APPLIANCE SERVICE DEALERS

§ 18. Section 20-411 of the administrative code of the city of New York is REPEALED and a new section 20-411 is added to read as follows:

§ 20-411 Definitions. As used in this subchapter, the following terms have the following meanings:

Audio equipment. The term “audio equipment” means any apparatus or equipment that is used for sound reproduction, including but not limited to amplifiers, phonographs, radios, receivers, speakers, compact disc players, tape players, tape recorders, and turntables. The term does not include prerecorded or blank audio recording tapes or records.

Complainant. The term “complainant” means the customer of an electronics store or service dealer who has complained concerning an alleged violation of this subchapter, any rule promulgated pursuant thereto, or any practice engaged in by an electronics store or any of such store’s employees, or a service dealer or any of such dealer’s employees.

Computer equipment. The term “computer equipment” means computers, word processors and any apparatus or equipment that is used for computing or word processing, including but not limited to printers, modems, monitors, keyboards, disk drives, and peripherals. The term does not include disks, diskettes, or computer paper.

Display space. The term “display space” means the area of a retail establishment in which merchandise is publicly displayed and offered for sale and which is generally accessible to customers.

Electronic goods. The term “electronic goods” means any of the following types of merchandise:

1. Audio equipment;

2. Calculators;

3. Photographic equipment;

4. Video equipment; or

5. Computer equipment.

Electronic or home appliance. The term “electronic or home appliance” means any electronic goods, or any appliance, that is commonly used in a household, including, but not limited to, televisions, radios, stereo systems, compact disc players, home computer systems, tablet computers, video game systems, telephones, telephone answering machines, satellite dishes, cameras, calculators, video recorders or players, camcorders or other portable video recording devices, cassette recorders or players, facsimile machines, portable photocopiers, air conditioners, clothes washing machines, clothes dryers, dishwashers, food freezers, refrigerators, stoves, ranges, ovens, microwave ovens, or sewing machines.

Electronics store. The term “electronics store” means a commercial establishment that sells or offers for sale to the public electronic goods.

Person. The term “person” means an individual, firm, partnership, trust, association, corporation, limited liability company, or other similar business organization.

Photographic equipment. The term “photographic equipment” means any apparatus or equipment that is used for the taking, developing, or enlarging of photographs or moving pictures, including but not limited to cameras, video cameras, camera cases, lenses, tripods, and developing equipment. The term does not include film or film processing.

Repair service or repair servicing. The terms “repair service” and “repair servicing” mean the installation, maintenance, repair, replacement, testing, inspection, or modification for compensation, for other consideration, or under a warranty, of electronic goods or electronic or home appliances.

Service dealer. The term “service dealer” means a person who within the city of New York:

1. Advertises that such person performs repair service on electronic goods, or electronic or home appliances, or makes public statements reasonably calculated to lead an ordinary consumer to believe that such person performs such repair service;

2. Solicits or bills a customer for repair service on electronic goods, or electronic or home appliances;

3. Sells service contracts or maintenance agreements for the performance of repair service on electronic goods, or electronic or home appliances and accepts requests for such repair service under such service contracts or maintenance agreements;

4. Accepts requests for repair service or receives electronic goods or electronic or home appliances for the performance of repair service; or

5. Provides, as part of a sales transaction, repair service, including repair service performed by the seller, subcontractor, or other service repairer, provided that the term “service dealer” includes a manufacturer of electronic goods or electronic or home appliances only when such manufacturer acting as a retailer engages in any of the activities described in this definition.

Service repairer. The term “service repairer” means a person who performs repair service on electronic goods or electronic or home appliances.

Video equipment. The term “video equipment” means televisions and any apparatus or equipment used in the process of producing images on a television set or electronic viewing screen, including but not limited to video disc players, video game units or consoles, video players and video recorders. The term does not include prerecorded video discs and tapes, blank video tapes, or video game cartridges or discs.

§ 19. Section 20-412 of the administrative code of the city of New York, subdivision 1 as amended by local law number 39 for the year 1992 and subdivision 2 as added by local law number 66 for the year 1989, is amended to read as follows:

§ 20-412 License required[; fingerprinting]. [1.] a. No person shall maintain or operate an electronics store unless duly licensed pursuant to this subchapter.

b. No person shall [represent or hold himself or herself out] claim or advertise to be, or engage in business as, a service dealer, unless duly licensed pursuant to this subchapter.

[2. The commissioner shall require that applicants for licenses issued pursuant to this subchapter be fingerprinted for the purpose of securing criminal history records from the state division of criminal justice services. The applicant shall pay a processing fee as required by the state division of criminal justice services. Fingerprints shall be taken of the individual owner if the applicant is a sole proprietorship; the general partners if the applicant is a partnership; and the officers, principals, directors, and stockholders owning more than ten percent of the outstanding stock of the corporation if the applicant is a corporation. Any person required to be fingerprinted hereunder shall furnish to the department three current passport-size photographs of such person. Notwithstanding the foregoing, the commissioner need not require applicants for licenses required under this subchapter to be fingerprinted if criminal history records concerning such applicants are not available from the state division of criminal justice services.]

c. Notwithstanding subdivisions a and b of this section, a person that maintains or operates an electronics store and claims or advertises to be, or engages in business as, a service dealer shall be required to obtain only the license required by such subdivision a or such subdivision b.

§ 20. Section 20-415 of the administrative code of the city of New York, as added by local law number 80 for the year 2021, is amended to read as follows:

§ 20-415 Penalties. a. Any person who violates any provision of this subchapter or any rules promulgated pursuant to this subchapter shall be subject to a civil penalty of: (i) [one hundred seventy-five dollars] not more than $175 for the first violation; (ii) [three hundred dollars] not more than $300 for the second violation; and (iii) [five hundred dollars] not more than $500 for the third and any subsequent violation.

b. Notwithstanding subdivision a of this section, a person shall be subject to a civil penalty of zero dollars for a first violation of [subdivision 6] subdivision a, b, c, or i of section 20-417 of this subchapter or any rule or regulation promulgated thereunder if such person proves to the satisfaction of the department, within [thirty] 30 days of the issuance of the notice of violation and prior to the commencement of an adjudication of the violation, that the violation has been cured. The submission of proof of a cure, if accepted by the department as proof that the violation has been cured, shall be deemed an admission of liability for all purposes. The option of presenting proof that the violation has been cured shall be offered as part of any settlement offer made by the department to a person who has received, for the first time, a notice of violation of [subdivision 6] subdivision a, b, c, or i of section 20-417 of this subchapter or any rule or regulation promulgated thereunder. The department shall permit such proof to be submitted electronically or in person. A person may seek review, in the [department's administrative tribunal] office of administrative trials and hearings or an applicable tribunal in accordance with subdivision h of section 2203 of the charter, of the determination that the person has not submitted proof of a cure within [fifteen] 15 days of receiving written notification of such determination.

c. Notwithstanding subdivision a of this section, the civil penalty for a violation of subdivision [7] j of section 20-417 or any rule promulgated pursuant thereto shall be [five hundred dollars] not more than $500.

d. Notwithstanding any other provision of this section, a person shall be subject to a civil penalty of zero dollars for a first violation of subdivision c of section 20-417 or any rule or regulation promulgated thereunder. The notice of violation for such first-time violation shall inform the respondent of the provision of law or rule that the department believes the respondent has violated, describe the condition or activity that is the basis for the notice of violation, and advise the respondent that the law authorizes civil penalties for such violation and that subsequent violations may result in the imposition of such civil penalties. Any person who violates subdivision c of section 20-417 or any rule or regulation promulgated thereunder shall be subject to a civil penalty of $175 for a second violation and a civil penalty of $300 for a third or subsequent violation.

§ 21. Subchapter 24 of chapter 2 of title 20 of the administrative code of the city of New York is amended by adding a new section 20-416 to read as follows:

§ 20-416 Transferability. No license issued under this subchapter shall be transferred or assigned to any person or used by any person other than the licensee to whom it was issued.

§ 22. Section 20-417 of the administrative code of the city of New York, subdivisions 6 and 7 of such section as added by local law number 80 for the year 2021, is amended to read as follows:

§ 20-417 Duties of licensees. [1.] a. Posting of license. Every person licensed under this subchapter shall conspicuously post such person’s license in the licensee’s place of business.

b. Display of selling price. 1. All merchandise sold, exposed for sale, or offered for sale at retail by a person licensed under this subchapter shall have conspicuously displayed, at the point of exposure or offering for sale, the total selling price exclusive of tax by means of a stamp, tag, or label attached to the item, or a sign at the point of display which indicates the item to which the price refers. Such information shall be plainly visible without the assistance of store personnel.

2. The required described in paragraph 1 of this subdivision does not apply to merchandise displayed in a store window.

c. Receipts. A person licensed under this subchapter shall provide a receipt for every retail purchase if the amount of such purchase is $20 or more. Such person must provide a receipt upon request for any retail purchase if the amount of such purchase is between $5 and $20. Such receipt shall contain:

1. The amount of money paid for each item;

2. The total amount of money paid in the transaction, including a separate statement of tax;

3. The date of the purchase;

4. The name and address of the electronics store as listed on the license;

5. The license number of the licensee; and

6. A full description of each item purchased, including the type, color, and size; the style or model number and year; and the brand name and manufacturer's name.

d. Invoice. All work done by a service dealer shall be recorded on an invoice which shall contain the license number and such other detail as may be required by [regulations] rules promulgated by the commissioner. The invoice shall fully, separately and clearly describe all service work performed, all parts supplied, the date or dates thereof, and all charges made and the computations thereof. One copy of the invoice shall be delivered to the customer and one copy shall be retained by the service dealer for a period of at least three years from the date of such delivery.

[2. The] e. Replaced parts. A service dealer shall return all replaced parts to the customer, except such parts as may be exempted from this requirement by regulations of the commissioner and except such parts as the service dealer requires for return to the manufacturer or distributor under a warranty arrangement.

[3. The] f. Estimates. A service dealer shall comply with regulations promulgated by the commissioner setting forth requirements for estimates or the making of such estimates and shall inform the customer as to the cost thereof prior to rendering same.

[4.] g. Remuneration of employees. A service dealer shall not make the remuneration, salary, wage, or other compensation of any employee, partner, officer or member contingent or dependent upon, or in any manner determined by the value, price, quantity or type of parts replaced, upon any apparatus serviced or repaired by any person required to be licensed by this subchapter.

[5. A service dealer shall maintain such additional records as are required by regulations adopted by the commissioner to carry out the provisions of this subchapter. Such records shall be open and available for reasonable inspection by the commissioner or other law enforcement officials, and shall be kept for a period of three years.

6.] h. Informational signage. A service dealer shall display in the area where electronic and home appliances are accepted for repair a sign that contains the identity of the service dealer, informs the customer of the customer's right to a written estimate of all repairs and indicates that no repair work may be done without the customer's authorization, in addition to any other information required by the commissioner. The commissioner shall promulgate such [regulations] rules as the commissioner determines necessary and appropriate for the proper implementation and enforcement of this subdivision.

[7.] i. Insurance. A [licensee] service dealer shall at all times carry insurance which in the opinion of the commissioner is adequate to protect the public. The commissioner shall promulgate such [regulations] rules as the commissioner determines necessary and appropriate for the proper implementation and enforcement of this subdivision.

j. Records. Every person licensed to maintain or operate an electronics store, or to engage in business as a service dealer, shall maintain such records, ledgers, receipts, bills, and such other written records as the commissioner may prescribe by rule. Such records shall be made available for inspection by the commissioner upon request at either the licensee’s place of business or at the offices of the department, in accordance with applicable law and rules and with appropriate notice.

§ 23. Section 20-422 of the administrative code of the city of New York, subdivision 3 of such section as amended by local law number 39 for the year 1992, is amended to read as follows:

§ 20-422 Powers and duties of the commissioner. [1.] a. In addition to any other powers of the commissioner, and not in limitation thereof, the commissioner shall have the power to enforce the provisions of this subchapter, to investigate any violation thereof, and to investigate the business, business practices and business methods of any person who is or may be subject to this subchapter, if in the opinion of the commissioner, such investigation is warranted. Each person shall be obliged upon the request of the commissioner, to supply such information as may be required concerning the business, business practices or business methods or the proposed business practices or business methods.

[2.] b. For the purpose of enforcing the provisions of this subchapter and in conducting investigations relating to any violation thereof, and for the purpose of investigating the character, competence and integrity of any person who is or may be subject to this subchapter, and the business, business practices and business methods thereof, the commissioner, or commissioner's designee shall have the power to compel the attendance of witnesses and the production of books and records, in accordance with the provisions of the civil practice law and rules. However, no information supplied by any person at the request of the commissioner concerning his or her business, business practices or business methods, or proposed business practices or methods shall be disclosed, except as may be necessary for the purpose of enforcing the provisions of this subchapter.

[3.] c. The commissioner may establish and properly equip an electronic or home appliance laboratory for the purpose of testing the competence and integrity of licensed service dealers, whenever complaints against such licensees would indicate the necessity or advisability for such testing, and such laboratory may be further used in the necessary investigations that may be conducted by the commissioner in connection with the proper administration and enforcement of the provisions of this subchapter and the rules adopted thereunder.

d. The commissioner shall have the authority to enforce the provisions of this subchapter and chapter 1 of this title with respect to all sales and advertising activities of an electronics store, including such activities not relating to electronic goods or to merchandise described in any rules of the commissioner promulgated under this subchapter.

§ 24. Section 20-424 of the administrative code of the city of New York, subdivision 2 of such section as amended by local law number 39 for the year 1992, is amended to read as follows:

§ 20-424 Exceptions. This subchapter shall not apply to any of the following:

1. the government of the United States or any department or agency thereof;

2. any school, public or private, offering as part of a vocational education program, courses and training in repair service and the instructors and teachers thereof; provided the exclusion granted herein shall be applicable only to repair service rendered in and as part of a regularly constituted vocational education program and when such repair service is not offered to the public for compensation or other consideration;

3. any store that does not provide repair services and that uses less than 20 percent of its display space, as measured by linear feet and not by square feet, for the display of electronic goods; or

4. any store that does not provide repair services and that displays fewer than 30 items that are electronic goods in its display space.

§ 25. Subdivision d of section 20-454 of the administrative code of the city of New York is amended to read as follows:

d. [The fee] No fee shall be charged or collected for issuing a duplicate license when the original has been lost, destroyed or mutilated [shall be ten dollars].

§ 26. Subdivision a of section 20-472 of the administrative code of the city of New York, as amended by local law number 63 for the year 1990, is amended to read as follows:

a. Any person who violates the provisions of [sections] section 20-453 [and 20-474.1 of this subchapter] shall be guilty of a violation punishable by a fine of $250. [In addition, any police officer may seize any vehicle used to transport goods to a general vendor, along with the goods contained therein, where the driver is required to but cannot produce evidence of a distributor's license. Any vehicle and goods so seized may be subject to forfeiture upon notice and judicial determination. If a forfeiture proceeding is not commenced, the owner or other person lawfully entitled to possession of such vehicle and goods may be charged with the reasonable cost for removal and storage payable prior to the release of such vehicle and goods, unless the charge of unlicensed distributing has been dismissed.]

§ 27. Sections 20-474.1 and 20-474.2 of the administrative code of the city of New York are REPEALED.

§ 28. Section 20-474.3 of the administrative code of the city of New York, as amended by local law number 122 for the year 2025, is amended to read as follows:

§ 20-474.3 Failure to produce license; presumptive evidence of unlicensed activity. [a.] In any action or proceeding, failure by a general vendor who is required to be licensed pursuant to the provisions of this subchapter to exhibit upon demand a general vendor's license in accordance with the provisions of this subchapter to any police officer or authorized officer or employee of the department or other city agency shall be presumptive evidence that such general vendor is not duly licensed.

[b. In any action or proceeding, failure by any person who is required to obtain a distributor's license pursuant to the provisions of this subchapter, or failure by the driver of such person, to exhibit upon demand a distributor's license in accordance with the provisions of this subchapter to any police officer or authorized officer or employee of the department or other city agency shall be presumptive evidence that such person is not duly licensed.]

§ 29. Subchapter 29 of chapter 2 of title 20 of the administrative code of the administrative code of the city of New York is REPEALED.

§ 30. Subdivision b of section 20-497 of the administrative code of the city of New York, as amended by local law number 51 for the year 1991, is amended to read as follows:

b. There shall be a biennial fee for a license to engage in towing and for each tow truck in excess of [one] 1 operated pursuant to such license. Such fee for a license to engage in towing shall be [six hundred dollars] $600 and such fee for each tow truck in excess of [one] 1 shall be [six hundred dollars] $600. There shall be a biennial fee for a tow truck operator's license. The fee for such tow truck operator’s license shall be [twenty dollars] $20. In the event of the loss, mutilation or destruction of any license issued hereunder, the licensee may file such statement and proof of facts as the commissioner shall require, [with a fee of fifteen dollars per license,] at the department, and the department shall issue a duplicate or substitute license without charging or collecting any fee therefor.

§ 31. Notwithstanding any other provision of this local law, any person who, on the date preceding the effective date of this local law, holds a license to maintain and operate an electronics store pursuant to subchapter 29 of chapter 2 of title 20 of the administrative code of the city of New York, shall be deemed, on and after such effective date, to hold a license pursuant to subchapter 24 of chapter 2 of title 20 of such code, as amended by sections seventeen through twenty-four of this local law, until the expiration date of the license issued pursuant to such subchapter 29, provided that, on the date preceding the effective date of this local law, such licensee is in good standing with the department of consumer and worker protection.

§ 32. This local law takes effect 270 days after it becomes law, except that: (i) section ten of this local law takes effect May 31, 2027; and (ii) the commissioner of consumer and worker protection shall take such measures as are necessary for the implementation of this local law, including the promulgation of rules, before such date.SA/NAW

LS #18592

11/3/2025 8:07 PM