Int. No. 515
By Council Members Koslowitz, Eristoff and Golden (by request of the Mayor); also Council Members Carrion, Eisland, Fisher, Foster, Lasher, Marshall, O'Donovan, Povman, Provenzano, Sabini, Wooten, Abel and Espada.
A Local Law to amend the administrative code of the city of New York, in relation to going out of business sales.
Be it enacted by the Council as follows:
Section 1. Paragraph a of subdivision 1 of section 20-308 of the administrative code of the city of New York is amended to read as follows:
a. Anticipatory to the termination, closing, liquidation, wind-up, discontinuance, removal, conclusion, or abandonment of the business, and advertised in the following phrases and in any other phrase or phrases or like or similar language which reasonably convey to the public that the sale is being conducted for such purpose: "going out of business sale," "closing out sale," "selling out sale," “trustee's sale," "liquidation sale," “executor's sale," administrator's sale," “insolvent sale," "mortgage sale," “adjustor's sale," “receiver's sale," “loss of lease sale," “forced out of business sale," "branch store discontinuance sale," removal sale," "warehouse removal sale."
§2. Paragraph 7 of subdivision b of section 20-310 of the administrative code of the city of New York is amended to read as follows:
7. Any additional information and material as the commissioner may require, including, but not limited to, a sworn statement by the applicant sufficient to ensure compliance with section 20-318 of this subchapter.
§ 3. Subdivision b of section 20-317 of the administrative code of the city of New York is amended, and a new subdivision d is added to such section, to read as follows:
b. [It]Except as otherwise specifically provided in subdivision d of this section, it shall be unlawful to indicate in such advertising, either directly or indirectly, that such sale is held with the approval of the commissioner and no reference shall be made to such license in any form of advertising, promotion or display.
d. The number of the license that is issued for a sale pursuant to section 20-309 of this subchapter and the date on which such licensed sale is authorized to commence shall be clearly and conspicuously disclosed in any advertising for such sale. Such license number shall be clearly and conspicuously identified as a New York City Department of Consumer Affairs license number. Upon commencement of the final thirty day period for which such license is renewed pursuant to section 20-312 of this subchapter, the expiration date of such final thirty day term shall be clearly and conspicuously disclosed in any advertising for such sale.
§4. Section 20-318 of the administrative code of the city of New York is amended to read as follows:
§20-318 Resumption of business. No person shall, upon the conclusion of any sale as defined in paragraph a of subdivision one of section 20-308 of this subchapter, continue to conduct a business or business operation of the same or similar nature [to] as that for the discontinuance of which [such license was issued] a license was required pursuant to section 20-309 of this subchapter at the same premises nor, within one year after the conclusion of such sale, resume such business at such same premises.
§5. Subchapter 16 of chapter 2 of title 20 of the administrative code of the city of New York is amended by adding a new section §20-319.1 to read as follows:
§20-319.1 Penalties. a. Any person who conducts a sale in violation of section 20-309 of this subchapter or who violates the provisions of section 20-318 of this subchapter shall be subject to a civil penalty of no more than one thousand dollars for each day on which such violation occurs.
b. If, after due notice and an opportunity to be heard, any person is found to have violated the provisions of section 20-318 of this subchapter, the commissioner shall also be authorized to order and effectuate the closing to the public for up to sixty consecutive days of any premises at which such person committed such violation.
c. Any person who violates any other provision of this subchapter or any rules promulgated hereunder shall be subject to a civil penalty of no more than five hundred dollars per violation.
§6. This local law shall take effect one hundred twenty days after it shall have become a law, provided, however, that the department of consumer affairs may take any actions necessary prior to such effective date for the implementation of this local law including, but not limited to, the adoption of any necessary rules.