Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050.
The council hereby finds that the fulton fish market, the center of New York's wholesale seafood industry located in lower Manhattan, has for decades been corruptly influenced by organized crime; that organized crime's corrupting influence over certain functions in the market, including the unloading and loading functions, has resulted in the commission of numerous crimes and wrongful acts there, including but not limited to physical violence or threats of violence, property damage, and thefts; that organized crime's corrupting influence over the market has fostered and sustained a cartel that has forced seafood suppliers and truckers to use particular unloading crews at fixed prices in an anticompetitive scheme that has been censured by a federal judge; that organized crime's corrupting influence has resulted in retailers parking on city streets and city property nevertheless having to pay high fees to private loading crews whose principal function has been to provide "security" for those vehicles and their contents while retailers have purchased fish in the crime-ridden market area; and that these corrupting influences have further resulted in higher prices for wholesale seafood than would otherwise have to be paid in the absence of this activity. The council further finds that despite the repeated efforts of law enforcement to prosecute crimes there and the presence of a court-appointed administrator for the market, the problem of organized crime corruption in the market has persisted. The council further finds that the market's businesses, including wholesalers, seafood deliverers, unloaders and loaders, have not been effectively regulated by the city in the past under existing laws and regulations governing public markets, even though they often operate on city property, albeit without leases, licenses and registration. The council further finds that, in the absence of an effective regulatory scheme, wholesalers have established a "gray market" in tenancies at rates in excess of those being paid to the city and have thus deprived the public of its rightful return on city property, and further, that unscrupulous businesses have taken advantage of this absence of regulation to engage in fraudulent practices, such as the creation of "phantom wholesalers" whose businesses disappear from the market before payment can be obtained from them for seafood they have received from suppliers, and that such practices have discouraged suppliers from utilizing the market area The council therefore finds and declares that in order to provide for the more efficient and orderly conduct of business in the market area, to ensure that any such activities are lawfully conducted, to promote the economic vitality of the market and to protect the public interest, it is necessary for the commissioner of small business services to have expanded authority to license and/or register businesses in the market area and to regulate the conduct of such businesses. In particular, the council finds that, in order to achieve these objectives, the commissioner of small business services should be authorized to issue requests for licensing proposals to provide unloading and loading services in the market area and, at his or her discretion, issue one or more unloading and loading licenses based on the review and evaluation of responses received pursuant to such requests. In the event that no appropriate responses are received to such requests, the commissioner should be authorized to arrange for the department of small business services itself to perform unloading or loading services or to arrange that they be performed by a contractor or a designee of the department. The council recognizes that complaints have been made about the conduct of seafood distribution activities outside the market area and finds further that the conditions which have given rise to corruption in the market area can exist in other areas where there are wholesale seafood businesses or concentrations of such businesses. The council also recognizes that representatives of such businesses have threatened to move their operations elsewhere and that some may relocate to other parts of the city. The council thus finds and declares that it is also necessary for the commissioner of small business services to have authority to regulate seafood distribution in areas of the city outside the market area in which such seafood businesses may concentrate. Application of this chapter will enhance the city's ability to address organized crime corruption and to protect consumers and the many honest business persons who do business in or with the market or at other seafood distribution areas. It is thus the council's intent to empower the city to have greater regulatory authority over the conduct business in the market and in other seafood distribution areas.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050.
For the purposes of this chapter, the following terms shall have the following meanings:
a. "Applicant" shall mean, if a business entity submitting a response to a request for licensing proposals, an application for a temporary license or a registration application, the entity itself and all the principals thereof; if an individual submitting an application for a photo identification card, such individual.
b. "Business entity" shall mean a sole proprietorship, partnership, corporation, or other entity established under law and authorized to conduct business within the state of New York.
c. "Commissioner" shall mean the commissioner of small business services.
d. "Department" shall mean the New York city department of small business services.
e. "Designee of the department" shall mean the department of citywide administrative services and, with respect to loading services or the direction of traffic within the market area, the department of transportation.
f. "Fulton fish market distribution area" or "market area" shall mean the area beginning at the point where the westerly street line of Water Street intersects the southerly street line of Maiden Lane; thence easterly along the southerly street line of Maiden Lane as extended to the east river U.S. pierhead line; thence northerly along the east river U.S. pierhead line to the northerly street line of Robert Wagner Sr. place as extended; thence westerly along the northerly street line of Robert Wagner Sr. place to the prolongation of the westerly street line of pearl street; thence southerly along the westerly street line of Pearl Street to the southerly street line of Fulton Street; thence easterly along the southerly street line of Fulton Street to the westerly street line of Water Street; thence southerly along the westerly street line of Water Street to the point of beginning.
g. "Loader" shall mean an individual who performs loading services.
h. "Loading business" shall mean any business entity that, for a payment, provides loading services.
i. "Loading services" shall mean services performed by a loader and provided by a loading business for a purchaser of seafood, including parking such purchaser's vehicle, moving such vehicle when necessary for traffic control, loading seafood onto such vehicle, and ensuring the security of such vehicle and the seafood loaded thereon; provided, however, that the term shall not mean the loading of seafood onto the vehicle of a purchaser when such loading is performed by an employee of a wholesaler by delivering seafood from such wholesaler to the vehicle of the purchaser thereof or by an employee of such purchaser.
j. "License" shall mean an unloading business license or a loading business license issued by the commissioner authorizing the conduct of such business in the market area.
k. "Market manager" shall mean a person designated by the commissioner to supervise operations in the market area or a seafood distribution area designated by the commissioner pursuant to section 22-222 of this chapter and to maintain and distribute a list of wholesalers pursuant to subdivision a of such section. Such supervision shall include, without limitation: implementation of rules promulgated pursuant to this chapter and the authority to enforce violations of any provision of this chapter or the rules promulgated thereunder; supervision of department staff employed in the market area; response to complaints relating to the operation of businesses in the market area; examination of documents required to be maintained by a licensee or registrant pursuant to this chapter; referrals, where appropriate, to any law enforcement, investigative or prosecutorial agency of matters occurring within the market area; and such other functions and duties as the commissioner may assign consistent with the provisions of this chapter.
l. "Principal" shall mean, of a sole proprietorship, the proprietor; of a corporation, every officer, director and stockholder holding ten percent or more of the outstanding shares of the corporations; of a partnership, all the partners; if another type of business entity, the chief operating officer or chief executive officer, irrespective of organizational title, and all persons or entities having an ownership interest of ten percent or more; and with respect to all business entities, all other persons participating directly or indirectly in the control of such business entity. Where a partner or stockholder holding ten percent or more of the outstanding shares of a corporation is itself a partnership or a corporation, a "principal" shall also include the partners of such partnership or the officers, directors and stockholders holding ten percent or more of the outstanding shares of such corporation, as is appropriate. For the purposes of this chapter (1) an individual shall be considered to hold stock in a corporation where such stock is owned directly or indirectly by or for (i) such individual; (ii) the spouse or domestic partner of such individual (other than a spouse who is legally separated from such individual pursuant to a judicial decree or an agreement cognizable under the laws of the state in which such individual is domiciled); (iii) the children, grandchildren and parents of such individual; (iv) a partnership in which such individual is a partner in proportion to the partnership interest of such individual; and (v) a corporation in which any of such individual, the spouse, domestic partner, children, grandchildren or parents of such individual in the aggregate own fifty percent or more in value of the stock of such corporation; (2) a partnership shall be considered to hold stock in a corporation where such stock is owned, directly or indirectly, by or for a partner in such partnership; and (3) a corporation shall be considered to hold stock in a corporation that is an applicant as defined in this section where such corporation holds fifty percent or more in value of the stock of a third corporation that holds stock in the applicant corporation.
m. "Seafood" shall mean fish, seafood or consumables derived therefrom.
n. "Seafood delivery business" or "seafood deliverer" shall mean any business entity, that, for payment, delivers seafood from wholesalers in the market area by truck or other vehicle to retail establishments or other wholesalers.
o. "Stand permit" shall mean an occupancy permit granted by the commissioner subject to such conditions as the commissioner shall prescribe authorizing use of city property by a wholesaler for the placement of seafood in an area extending into a city street.
p. "Unloader" shall mean an individual who performs unloading services.
q. "Unloading business" shall mean any business entity that, for a payment, provides unloading services.
r. "Unloading services" shall mean the unloading of seafood from a truck or other vehicle in which such seafood has been transported from suppliers and the delivery thereof to wholesalers or the transfer thereof to other trucks or vehicles for transport to other locations.
s. "Wholesaler" or "wholesale seafood business" shall mean any business entity which sells or offers for sale seafood for resale to the public, whether or not such business entity also sells or offers for sale seafood directly to the public; except that "wholesaler" shall not include any such entity that is primarily engaged in the sale of seafood that has been processed and packaged by another business for sale to consumers in such packaged form.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050, L.L. 1996/059 and L.L. 1998/027.
A market business in the fulton fish market distribution area as such term is defined in section 22-251 of this code shall be subject to the provisions governing market businesses in chapter 1-B of this title.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1997/028.
a. The market manager shall issue photo identification cards to those principals, employees and agents of any business licensed pursuant to this chapter who perform any function directly related to the handling or transportation of seafood within or from the market area. Such cards shall be termed class A photo identification cards and shall be issued subject to the provisions set forth in section 22-216 of this chapter and the fee for such card established by the commissioner by rule pursuant to section 22-223 of this chapter. Such cards shall be displayed so as to be readily visible to others during the hours of market operation, as designated by the market manager.
b. (i) In addition to the identification cards issued pursuant to subdivision a of this section, the market manager shall issue photo identification cards to those principals and employees of any business entity registered pursuant to this chapter and also to any agent of such registrant, other person or business entity who performs any function directly related to the handling and transportation of seafood within or from the market area. Such identification cards shall be termed class B photo identification cards and shall be issued subject to such requirements and fees as the commissioner shall promulgate by rule pursuant to section 22-223 of this chapter. Such cards shall be displayed so as to be readily visible to others during the hours of market operation designated by the market manager.
(ii) Notwithstanding any provision of this subdivision, the commissioner may, when there is reasonable cause to believe that an applicant for a class B photo identification card lacks good character, honesty and integrity, require that such applicant be fingerprinted and provide to the commissioner the information set forth in subdivision a of section 22-216 of this chapter. The commissioner may thereafter, after notice and opportunity to be heard, refuse to issue a photo identification card for the reasons set forth in subdivision b of such section.
(iii) If at any time subsequent to the issuance of a class B photo identification card, there is reasonable cause to believe that the holder thereof does not possess good character, honesty and integrity, the commissioner may require such person to be fingerprinted and to provide the background information required by subdivision a of section 22-216 of this chapter and may, after notice and opportunity for a hearing, revoke such class B photo identification card for the reasons set forth in subdivision b of such section.
c. The market manager may, where appropriate, issue a provisional photo identification card to an employee or agent of a licensee or registrant who has submitted the information and fee required by this chapter or any rules promulgated thereunder. A photo identification card issued pursuant to this paragraph shall be valid until the commissioner has either issued or denied a permanent identification card, unless such provisional card has been revoked or suspended prior thereto in accordance with the procedures set forth in this chapter. The market manager, may, in his or her discretion, also make provision for temporary identification cards, which shall be valid for a period not to exceed six weeks, to be issued to persons employed by unloaders, loaders, wholesalers and seafood deliverers on a seasonal or other temporary basis.
d. A photo identification card issued pursuant to this section shall bear a photograph of the person to whom it was issued and such other identifying information as may be specified by the commissioner.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050.
a. It shall be unlawful to conduct an unloading business or otherwise provide unloading services in the fulton fish market distribution area without having first obtained an unloading business license from the commissioner pursuant to the provisions of this section. An unloading business license shall not be transferable.
b. The commissioner shall issue a request for licensing proposals and shall, at his or her discretion, issue one or more unloading business licenses based upon the review and evaluation of responses received pursuant to such request. Such request for proposals shall solicit information regarding the qualifications of proposers, their proposed methods of unloading, the labor and equipment they propose to utilize in the unloading operation, rates proposed to be charged to wholesalers, procedures proposed to be used to comply with sanitary requirements, and any other information relating to performance standards, responsibility and service that the commissioner deems appropriate. A proposal in response to a request for licensing proposals issued pursuant to this section shall be submitted on behalf of a business entity by all the principals thereof on a form bearing the signatures of all such principals.
c. A license issued pursuant to this section shall state the name, address and telephone number of the licensee and the names and business addresses of all principals of such licensee. A copy of such license shall be presented by the unloading business to any wholesaler upon request.
d. A license issued pursuant to this section shall also contain conditions that:
(i) specify the maximum rates to be charged to wholesalers;
(ii) specify the standard and level of performance of unloading and customer service which shall be maintained throughout the term of the license to ensure the continuing efficient unloading of seafood in the market area;
(iii) require that the unloading business obtain a performance bond or such other guarantee of performance that the commissioner determines is appropriate and sufficient to cover any cost incurred by the city in providing or performing unloading services pursuant to section 22-208 of this chapter due to revocation of the license or default in the performance of the conditions specified in the license and specify the amount of such performance bond or guarantee; and
(iv) prescribe any other appropriate requirements relating to performance standards, customer service, security of performance, the use of city property, or such other matters as the commissioner deems appropriate and necessary to effectuate the purposes of this chapter.
e. An unloading business licensed pursuant to this section may not charge more for the provision of unloading services that the maximum rate set forth in the license without the written permission of the commissioner, nor may an unloading business or any principal, employee or agent thereof request or accept any other fees or gratuities for performing unloading services.
f. No unloading business licensee, shall, by contract or otherwise, assign or delegate to or engage any other business entity to provide the unloading services specified in the license, whether upon an emergency or any other basis, unless the commissioner has provided specific written authorization therefor.
g. (i) The commissioner shall be authorized, upon due notice and opportunity for a hearing, to suspend or revoke a license issued pursuant to this section based upon a determination that there has been a default in the performance of the conditions specified in such license or for reasons set forth in sections 22-217 or 22-218 of this chapter. The commissioner shall also be authorized to pursue other remedies for a default in the performance of the conditions specified in the license, including but not limited to, reimbursement for any expenses incurred by the department in performing or providing unloading services in the market area.
(ii) In the event of such suspension or revocation, or when the commissioner determines that additional unloading services are required because a licensee has discontinued unloading operations in the market area or the existing unloading business or businesses are for other reasons unable to provide adequate or sufficient unloading services in the market area, the commissioner may, as he or she deems appropriate, issue a new license to one or more business entities which responded to the most recent request for licensing proposals, issue a new request for licensing proposals pursuant to this section or arrange for the department, a designee of the department or an entity under contract to the department to provide unloading services in the market area. A new license issued pursuant to a request for licensing proposals shall be valid for the remainder of the term of the original license. The commissioner may also solicit expressions of interest from business entities in providing unloading services on a temporary basis and may issue a temporary license or licenses to provide unloading services in the market area to the most qualified of such entities in a situation where the suspension or revocation of a license or the discontinuance of unloading operations by a licensee has created a shortage of unloading services in the market area or the existing unloading business or businesses are for other reasons unable to provide adequate or sufficient unloading services. A temporary license issued pursuant to this subdivision shall be valid for a period of up to one year, provided that such license shall not extend beyond the remainder of the term of the original license. The fee for such temporary license shall be prorated to the term of the original license.
h. Prior to the expiration of the term of a license issued pursuant to this section, the commissioner shall issue a new request for licensing proposals pursuant to subdivision b of this section. Where the term of such license has been extended for an additional period pursuant to section 22-213 of this chapter, the new request for licensing proposals shall be issued prior to the expiration of such period.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050.
The commissioner may establish by rule such measures as he or she deems appropriate and necessary to ensure the orderly and lawful unloading of seafood in the fulton fish market distribution area, including but not limited to: (i) a procedure for determining the order in which trucks or other vehicles are unloaded; (ii) designation of waiting areas for trucks that enter the fulton fish market distribution area; (iii) designation of unloading areas in the fulton fish market distribution area and, in the event such designated unloading area is located on property belonging to the city, the charging of a fee for the use of such property by an unloading business; (iv) designation of hours for the unloading of seafood in the fulton fish market distribution area; (v) documentation requirements for the delivery and receipt of seafood; (vi) requirements for the disposal of waste and other sanitary measures; (vii) provisions prescribing maintenance and availability of records for inspection by the commissioner or the market manager; and (viii) appropriate insurance and bonding requirements.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1995/050.
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