Adjudicatory Proceedings

RCNY tit. 6, ch. 6, subch. A

in effect

6 RCNY § 6-01 Delegation of Authority.

§ 6-01 Delegation of Authority. (a) Except as otherwise provided in this subchapter, the adjudicatory powers granted to the Commissioner of the Department of Consumer Affairs ("Commissioner") under the New York City Charter, the Administrative Code of the City of New York ("Administrative Code") and New York State law to conduct hearings, issue decisions, impose fines and civil penalties, and order any other relief are hereby delegated to the Office of Administrative Trials and Hearings ("OATH"). (b) Nothing in this rule shall prohibit the Commissioner from exercising powers conferred upon the Commissioner, including, but not limited to: (1) the power to suspend a license, without an adjudication, pursuant to Administrative Code § 20-104(e)(3); (2) the powers with respect to unlicensed activities pursuant to Subdivisions (b)(2), (b)(3), and (b)(4) of Administrative Code § 20-105; and (3) the power to order that a premises be sealed under the Administrative Code or any other City, State or Federal law conferring such power upon the Commissioner. (c) The Department will file the following cases with the adjudicatory body authorized to conduct trials at OATH pursuant to 48 RCNY Chapter 1: (1) all proceedings commenced to enforce a law within the Department's jurisdiction that regulates relationships in the workplace or that confers rights or benefits on workers, including, but not limited to, the Earned Safe and Sick Time Act set forth in Chapter 8 of Title 20 of the Administrative Code, provisions related to Fair Work Practices set forth in Chapter 12 of Title 20 of the Administrative Code, provisions related to mass transit benefits set forth in Chapter 9 of Title 20 of the Administrative Code, provisions related to displaced grocery workers set forth in § 22-507 of the Administrative Code, provisions related to a prevailing wage for building service employees in city leased or financially assisted facilities set forth in § 6-130 of the Administrative Code, or provisions related to a living wage for employees in city financially assisted workplaces set forth in § 6-134 of the Administrative Code, except where such law licenses persons under chapter 2 of title 20 of the Administrative Code; (2) all proceedings in which the Department seeks discretionary revocation, suspension, or denial of a license; (3) all proceedings in which the Department seeks more than one hundred thousand dollars in civil penalties, consumer restitution, other monetary relief, or any combination thereof; (4) all proceedings involving four or more consumers against the same respondent; and (5) all proceedings in which four or more witnesses testify and the Department seeks more than fifty thousand dollars in civil penalties, consumer restitution, other monetary relief, or any combination thereof. (Added City Record 8/22/2016, eff. 8/22/2016; amended City Record 8/22/2017, eff. 9/21/2017; amended City Record 2/10/2021, eff. 3/12/2021; amended City Record 3/3/2023, eff. 4/2/2023)

6 RCNY § 6-02 Recommended Decisions.

§ 6-02 Recommended Decisions. (a) OATH shall issue a recommended decision in the following cases: (1) all proceedings heard by the adjudicatory body authorized to conduct trials at OATH pursuant to 48 RCNY Chapter 1; and (2) all violations of the following statutes and of rules or regulations promulgated pursuant to such statutes: Article 13-F of the New York State Public Health Law; Article 11 of the New York State General Business Law; Article 5 of the New York State General Business Law; and Sections 192, 192-a, 192-b, and 192-c of Article 16 of the New York State Agriculture and Markets Law. (b) Upon issuance of OATH's recommended decision in the matter, the Commissioner or the Commissioner's authorized designee may adopt, reverse, or modify that recommended decision. Where the Commissioner or the Commissioner's authorized designee determines that the record in the underlying proceeding has not, in whole or in part, been fully developed, he or she may send the case or claim back for development of a complete record. If the Commissioner or Commissioner's authorized designee sends back a case or claim to OATH, OATH shall issue a recommended decision at the conclusion of the additional proceedings. (c) For all cases requiring a recommended decision pursuant to subdivision a of this section, the petition or summons must include a statement notifying the respondent that OATH will issue a recommended decision that the Commissioner or the Commissioner's authorized designee may adopt, reverse, modify, or send back to OATH in whole or in part for further proceedings. (d) Within thirty (30) days of the issuance of the recommended decision, any party to the proceeding may submit to the Commissioner by regular mail, email, or delivery to the Department at its main office, a written argument setting forth the reasons why the Commissioner should adopt, reverse, or modify the decision, or send the decision, in whole or in part, back to OATH for additional proceedings. The Commissioner may prescribe one or more forms to be used for submission of such argument, which may include a specific email and office address. The Commissioner or the Commissioner's authorized designee will consider any challenge made by any party provided that the party timely made its objection known to OATH and that the grounds for such challenge are limited to those set forth to OATH. (e) Not less than seventy-five (75) days after the issuance of the recommended decision, the Commissioner or the Commissioner's authorized designee will issue a written decision affirming, reversing or modifying the recommended decision, or remanding the matter back to OATH for further proceedings. Except as provided in subdivision f of this section, or with respect to written decisions that send back any part of a matter to OATH for additional proceedings, the Commissioner's decision adopting, reversing, or modifying the recommended decision shall constitute a final agency determination. The written decision from the Commissioner or the Commissioner's authorized designee will be based on a review of the recommended decision and may consider the trial record from OATH, written arguments submitted to the Department pursuant to subdivision d of this section, any motion papers or other written submissions filed at OATH, and any other OATH decisions bearing on the merits of the case. (f) If the Commissioner or the Commissioner's authorized designee adopts a recommended decision issued by OATH for a finding of default, and thereafter OATH finds sufficient grounds to vacate the default, the default and the Commissioner's original decision shall be vacated and a new hearing shall be allowed on all of the charges in the original notice of violation. The recommended decision resulting from such hearing will be subject to the provisions of this section. (g) Whenever the interests of justice so require, the Commissioner or the Commissioner's authorized designee may reopen, vacate, or modify any final determination, provided that such action may only be taken prior to the commencement of a judicial proceeding to review such determination. Notwithstanding the preceding sentence of this subdivision, after the commencement of a judicial proceeding to review such determination, the Commissioner or the Commissioner's authorized designee may reopen, vacate, or modify any final determination upon the consent of the parties or judicial order. (Added City Record 8/22/2016, eff. 8/22/2016; amended City Record 2/10/2021, eff. 3/12/2021; amended City Record 3/3/2023, eff. 4/2/2023)

6 RCNY § 6-03 Pre-Hearing Disposition of Violations.

§ 6-03 Pre-Hearing Disposition of Violations. Any person who receives a notice of violation and a pleading letter from the Department may respond in the following ways: (a) Payment of the fine prior to the hearing. Any person who receives an Offer of Settlement prior to the hearing date may plead guilty and pay the fine listed in the letter either by mail, online, or in person. (1) By Mail. Any person may pay the fine as shown on the Offer of Settlement by sending a check or money order (not cash) payable to the "Department of Consumer Affairs" in the amount of the fine specified in the letter. The payment must be received by the Department prior to the hearing date. (2) In person. Any person may pay the fine in person at the Department of Consumer Affairs during the Department's normal business hours. (b) Opportunity to Cure. (1) Any person charged with a first-time violation of any of the mandates set forth in paragraphs (5) or (6) of this subsection will not be subject to a civil penalty if such person proves to the satisfaction of the Department, within thirty 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. (2) A person seeking to submit proof of a cure must submit a certification in a form approved by the Department. The Department may require submission of such other information, including documentary evidence, reasonably necessary to prove that the violation was cured within thirty days of the issuance of the notice of violation. (3) The submission of proof of a cure will constitute an admission of liability for all purposes. (4) If the proof that a violation has been cured is not satisfactory, the Department will provide the person who presented the proof with a written notice within five days of receipt that the proof was not satisfactory. A person may seek review of this determination at OATH within fifteen days of receiving written notification that the submitted proof is not satisfactory. (5) The Department has made available on its website a list of provisions of the Administrative Code for which the opportunity to cure a first-time violation is available. The following provisions of Title 6 of the Rules of the City of New York constitute the mandates for which the opportunity to cure a first-time violation is available: Citation Description 6 RCNY § 1-03(a) requiring the posting of a sign that includes instructions on contacting the Department to file a complaint about a licensed business 6 RCNY § 1-05 requiring a licensee to include such licensee's license number in advertisements and other printed and electronic matters 6 RCNY § 2-66(a) requiring newsstands to comply with display restrictions 6 RCNY § 2-66(b) requiring newsstands to comply with advertising restrictions 6 RCNY § 2-70.2(g) Sale or offer of improper items in a stoop line stand 6 RCNY § 2-161(g)(1) requiring that parking lots and garages have separate entrances and exits, with the main entrance clearly designated with illuminated signs marked "entrance" and "exit" 6 RCNY § 2-161(g)(2)(i) requiring parking lots and garages to post a rate sign 6 RCNY § 2-161(g)(2)(iv) requiring parking lots and garages to post a rate sign at the location for payment of charges 6 RCNY § 2-161(g)(2)(v) requiring that parking lot and garage auxiliary signs contain equally sized letters and numbers 6 RCNY § 2-161(g)(2)(vi) requiring that parking lots and garages post a sign stating: the business hours; the licensed capacity; and the minimum number of bicycle parking spaces 6 RCNY § 2-161(g)(2)(viii) requiring parking lots and garages to post a rate sign about bicycle parking 6 RCNY § 2-161(g)(3)(i) requiring that the parking garage and lot sign required by 6 RCNY § 2-161(g)(2) is illuminated, clearly visible and readable 6 RCNY § 2-161(g)(3)(ii) requiring parking lots and garages to post a Manhattan residents sign 6 RCNY § 2-161(h)(1) requiring the posting of a sign that the garage is at full capacity for car parking 6 RCNY § 2-161(h)(2) requiring the posting of a sign that the garage is at full capacity for bicycle parking 6 RCNY § 2-161(u) requiring that parking lots and garages with waivers under § 20-327.1 of Subchapter 17 of Chapter 2 of Title 20 of the Administrative Code of the City of New York post a sign that bicycle parking is not required by law 6 RCNY § 2-211(h) requiring that a sightseeing bus post a sign on the windshield and near the entrance door of such bus that designates the departure time and destination of such bus 6 RCNY § 2-253 requiring that electronic or home appliance service dealers post sign stating the service dealer identity, the cash policy, and written estimates 6 RCNY § 2-275(c) requiring dealers of products for the disabled to post a sign summarizing provisions of the New York City Products for the Disabled Law 6 RCNY § 2-424 requiring pedicabs to follow certain restrictions on advertisements 6 RCNY § 2-425 requiring certain signage on pedicabs 6 RCNY § 2-433 requiring that car washes maintain a log documenting complaints of damage to vehicles 6 RCNY § 3-12 requiring labeling declarations required by Subchapter A of 6 RCNY Chapter 3 to be written in English 6 RCNY § 3-24(c) scale is not located between the buyer and seller 6 RCNY § 3-24(f)(2) requiring stores with weighing and measuring devices for customer use to post a sign informing customers that they may reweigh products using such weighing or measuring device or devices 6 RCNY § 3-60 requiring certain signage for selling prepackaged meats 6 RCNY § 4-55 requiring display of signs for out of order petroleum pumps 6 RCNY § 4-63 requiring display of signs for petroleum pumps 6 RCNY § 4-131(a)(1) business fails to prominently and conspicuously display price list sign, or price list sign is not displayed at point at which orders are placed or payment is made, or lettering on sign is less than 1 inch 6 RCNY § 4-131(a)(4)(i) requiring retail laundries to post a notice giving the name and contact information of the person or persons to whom complaints and claims for refunds may be made 6 RCNY § 4-131(a)(4)(ii) requiring retail laundries to post an out-of-order sign on non-functioning machines 6 RCNY § 4-142 requiring amusement arcades and gaming cafes to post a sign describing age restrictions during certain hours of operation 6 RCNY § 5-24 requiring that a business that accepts credit cards post a list of limitations that such business puts on credit card usage at or near the entrance of the business and in all advertising indicating that credit cards are accepted 6 RCNY § 5-37 requiring the posting of refund policies 6 RCNY § 5-40(e) prohibiting a sign stating that a business is not liable for its negligence if such a statement is invalid under law 6 RCNY § 5-66(c) requiring that tax preparers post a sign: stating his or her name, address, telephone number and qualifications; stating that the preparer and taxpayer must sign every tax return; stating how fees are calculated; stating that the tax preparer or their agency will not represent the taxpayer in an audit, if true; and stating that the tax preparer is not licensed by the state board of public accounting or the New York state bar, or both, if true 6 RCNY § 5-70 requirements for retail service establishments 6 RCNY § 5-113 calculation and Display of Price Per Measure 6 RCNY § 5-114 requiring certain consumer commodities to be labeled 6 RCNY § 5-115 requirements for multiple pricing 6 RCNY § 5-191 sign size requirements for redemption of beverage containers 6 RCNY § 5-192 content of sign for redemption of beverage containers 6 RCNY § 5-194 substitute signs for redemption of beverage containers 6 RCNY § 5-195 requiring signage at businesses that sell beverages for off-premises consumption in beverage containers that are covered by title ten of article twenty-seven of the Environmental Conservation Law of the State of New York to be placed within a certain distance of cash registers or to be visible to consumers from any specific vantage point 6 RCNY § 5-222(b) requiring collateral loan brokers to place signage relating to pawn tickets 6 RCNY § 5-222(d) requiring collateral loan brokers to place certain signage with a reproduction of the pawn ticket 6 RCNY § 5-250 requiring the posting of signs by employment agencies 6 RCNY § 5-251 requiring the display of a license by an employment agency 6 RCNY § 5-265 requiring the posting of signs about tenant screening reports, pursuant to § 20-809 of the Administrative Code of the City of New York 6 RCNY § 5-290(a) requiring car rental businesses to comply with reservation requirements 6 RCNY § 5-290(d) requiring car rental businesses to post a sign about certain rights 24 RCNY § 6-19 requiring posting of a letter grade on mobile food vending cart. (6) The following provisions of New York State law constitute the mandates for which the opportunity to cure a first-time violation is available: (i) Section 188 of Article 11 of the New York General Business Law, requiring the posting of copies of certain provisions of law. (Added City Record 8/22/2016, eff. 8/22/2016; amended City Record 4/26/2018, eff. 5/26/2018; amended City Record 6/20/2018, eff. 7/20/2018; amended City Record 2/27/2019, eff. 3/29/2019; amended City Record 2/24/2020, eff. 3/25/2020; amended City Record 11/26/2021, eff. 12/26/2021; amended City Record 12/20/2021, eff. 1/19/2022; amended City Record 3/11/2022, eff. 4/10/2022; amended City Record 1/6/2023, eff. 2/5/2023; amended City Record 5/24/2024, eff. 6/23/2024; amended City Record 10/9/2024, eff. 11/8/2024)

6 RCNY § 6-04 Settlement Agreements.

§ 6-04 Settlement Agreements. (a) Any respondent entering into a settlement agreement with the Department must comply with the terms of the settlement agreement. (b) Unless the terms of a settlement agreement provide otherwise, a settlement agreement shall constitute a plea of guilty to the charges in the notice of violation. A settlement agreement shall have the force of a final order of the Commissioner. In addition to any penalties for a breach set forth in the settlement agreement, failure of a respondent to comply with the terms of a settlement agreement, in whole or in part, will subject the respondent to a civil penalty of up to five hundred dollars. (Added City Record 8/22/2016, eff. 8/22/2016)

6 RCNY § 6-05 Orders of the Commissioner.

§ 6-05 Orders of the Commissioner. Failure of a respondent to comply with an order of the Commissioner will subject the respondent to sanctions, including a civil penalty of up to five hundred dollars and suspension or revocation of any and all licenses held by respondent. (Added City Record 8/22/2016, eff. 8/22/2016)

6 RCNY § 6-06 Assigning and Docketing Final Decisions or Orders.

§ 6-06 Assigning and Docketing Final Decisions or Orders. If a final decision or order authorizes restitution, imposes an award of monetary damages, or provides equitable relief to a consumer or worker, the consumer or worker may request that the Department assign the final decision or order, or the portion of it that awards such restitution, monetary damages, or equitable relief, to the consumer or worker. To make such a request, the consumer or worker must complete the form available on the Department's website and submit the form to the Department by mail or email within 180 days of the date on which the final decision or order was issued; provided, however, that the deadline to submit such a request shall be tolled while a judicial proceeding challenging the final decision or order is pending. (Added City Record 7/13/2021, eff. 8/12/2021)

6 RCNY § 6-07 Default Judgments.

§ 6-07 Default Judgments. A Respondent may, within 30 days of receiving notice from the Department that a final default judgment has been issued against the Respondent and that the Department intends to enter and docket that judgment, both (a) request a stay of the default judgment for good cause shown, and (b) either request a new hearing at OATH or plead guilty to the charges in the default judgment. To make such a request, the Respondent must complete the form available on the Department's website and submit the form to the Department by mail or email. Before submitting such a request, however, the Respondent must first move to vacate the default judgment at OATH pursuant to 48 RCNY § 1-45 or 48 RCNY § 6-21, or any successor rule thereto. (Added City Record 7/13/2021, eff. 8/12/2021)

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-20024Fetched: 10/24/2026