L.L. 1997/029

Enactment date: 5/16/1997

Int. No. 955

By Council Members Koslowitz, Eisland, Lasher and Perez; also Council Members Harrison and Povman (Read and referred to the Committee on Consumer Affairs) (Preconsidered on April 18, 1997)

A Local Law to amend the administrative code of the city of New York, in relation to newsstands and to repeal the first paragraph of subdivision h of section 20-231 of such code.

Be it enacted by the Council as follows:

Section 1. Declaration of legislative findings and intent. The Council hereby finds and declares that the present procedures for the licensing of newsstands are inefficient and do not operate well in conjunction with procedures for the placement of other structures and objects on the City's sidewalks. In addition, the current method of regulating newsstands does not provide sufficient controls to address all of the concerns they present, including public safety and pedestrian traffic. A new approach needs to be formulated so that newsstands can adequately serve the public without, among other things, overcrowding the City's sidewalks and threatening pedestrian safety. An interagency Streetscape Task Force has examined the issue of structures and objects on the City's sidewalks and has developed a comprehensive plan to improve their crowded and often unsightly appearance. One of the key provisions of this plan is for the Department of Transportation to offer a single franchise for the design, construction, installation, and maintenance of a variety of structures and objects on the City's sidewalks, including newsstands, at no cost to the City (the "coordinated street furniture franchise"). The Department of Transportation would determine, pursuant to siting criteria and a consultative process with elected officials and community boards, and in consultation with the franchisee, the order in which and location where such newsstands would be built by such franchisee. The franchisee would be able to sell advertising space on such newsstands, and the City would receive a share of the gross revenue generated by such advertising or a fixed, guaranteed minimum annual amount, whichever is greater.

As for the operation of new newsstand sites built by such franchisee, other than those built to replace an existing newsstand, a competitive system would be used to select the operator thereof. In this competitive system, preferences will be granted to all persons who currently receive legislative preferences for the grant of newsstand licenses pursuant to New York City Administrative Code § 20-230(a): disabled veterans; persons with disabilities as currently defined by the Department of Consumer Affairs; veterans who are not disabled; and persons over the age of sixty-two. Persons who fall into categories receiving preferences pursuant to New York City Administrative Code § 20-230(a) will continue to receive preferences; however, if at the end of the five year period during which current newsstand operators will remain in their newsstands or in newsstands built to replace those newsstands, a competitive system is implemented to select the operators of those newsstands or replacement newsstands, preferences will be granted to current newsstand licensees only until the date on which a competitive system is used to select an operator for a newsstand built by the selected franchisee to replace such licensee's newsstand, or until the date on which such licensee successfully bids for operation of a newsstand, whichever occurs first.

The Council finds that current newsstand operators who have built and operated newsstands under the current licensing law should not, at least at this time, be put into this competitive system. However, there should be a moratorium on the issuance of newsstand licenses by the Department of Consumer Affairs and the City should receive revenues for the use of its sidewalks by newsstands. Therefore, pursuant to a determination made by the Department of Transportation regarding a particular newsstand location, persons who are newsstand licensees as of the effective date of this local law will be given the opportunity to become concessionaires at the site of the newsstands they have already built. As for the operation of newsstands built by such franchisee to replace existing newsstands, persons who are newsstand licensees as of the effective date of this local law who are operating existing newsstands pursuant to such licenses or who have been granted concessions to operate such existing newsstands will be given the opportunity to become concessionaires at the site of the newsstand built by such franchisee to replace such licensees' existing newsstands.

Thus, for a period of five years after the effective date of this local law, persons who are newsstand licensees as of the effective date of this local law shall be able either to continue to operate their existing newsstands as licensees or concessionaires, or to operate newsstands built by the franchisee to replace their existing newsstands as concessionaires; provided, however, that nothing shall limit the Commissioner of Consumer Affairs' authority to revoke or suspend a newsstand license during such five year period, and nothing shall limit the Commissioner of the Department of Transportation's authority to terminate a newsstand concession during such five year period. The five years shall be calculated as the amount of time spent, in any combination, after the effective date of this local law, as either a licensee or a concessionaire of an existing newsstand site, or as a concessionaire of a newsstand built by the selected franchisee to replace such licensee's existing newsstand.

Four years and three months after the effective date of this local law, the Commissioner of the Department of Transportation shall submit a report to the Council on the effectiveness of the newsstand concession program and the Mayor shall then submit a proposal as to the future operation of those newsstands which have continued to be operated by persons who are newsstand licensees as of the effective date of this local law. If the proposal is accepted or if the Council fails to act upon it within sixty days, it will take effect. If the Council rejects such proposal and fails to enact its own alternative, the Commissioner of the Department of Transportation may seek approval from the franchise and concession review committee for the continuation or renewal of concessions covering such newsstands and for the granting of concessions to such licensees who have continued to operate such newsstands as licensees. If such approval is not sought or not obtained, the Department of Consumer Affairs will reissue newsstand licenses to former newsstand licensees who had become concessionaires at such newsstands and will renew newsstand licenses that had continued to be held by such licensees.

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[Consolidated provisions are not included in this Appendix A]

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§ 7. Four years and three months after the effective date of this local law, the department of transportation shall submit to the city council a report which shall include a comparison of the operation of those newsstands which have been competitively bid to those which have continued to be operated by former licensees who have become concessionaires at such former licensee's newsstand or at replacement stands installed and maintained pursuant to a franchise granted pursuant to chapter fourteen of the city charter. Such report shall compare the two types of newsstand operation with regard to revenue generated, turnover, amount of time in and out of operation, and any other factors which may be useful in determining the extent to which the newsstand operations are serving as adequate conduits for the dissemination of newspapers and periodicals, and shall explain any variables to which any of the information contained therein is subject. No later than thirty days after the submission of such report to the council, the mayor shall submit a proposal for the future operation of those newsstands which have continued to be operated by licensees or former licensees who have become concessionaires at such former licensees' newsstands or at replacement stands installed and maintained pursuant to a franchise granted pursuant to chapter fourteen of the city charter, after the date which is five years from the effective date of this local law. Within sixty days after the first stated meeting of the council following the receipt of such proposal, the council may approve, modify or reject the proposal by means of any appropriate legislative action. In the event the council fails to act with respect to the proposal within such sixty day period, the proposal shall be deemed to have been approved by the council.

§ 8. No newsstand which has continued to be operated by a licensee or former licensee who has become a concessionaire at such former licensee's newsstand or at a replacement stand installed and maintained pursuant to a franchise granted pursuant to chapter fourteen of the city charter, shall be the subject of an agreement entered into pursuant to a request for proposals, the term of which commences on a date which is more than five years after the effective date of this local law, unless (i) the mayor shall have recommended such action with regard to all newsstands operated by such licensees or former licensees in the proposal required pursuant to section seven of this local law and (ii) the council shall have approved such proposal pursuant to such section. Provided, however that the prohibition contained in this section shall not apply if such licensee or former licensee has (i) declined to enter into a concession agreement in the case of a licensee, or declined a continuation or renewal of a concession agreement covering such newsstand or replacement stand in the case of a former licensee, (ii) declined the renewal or reissuance of such operator's license proffered by the department of consumer affairs in accordance with section nine of this local law, or (iii) such person has been determined to be unfit to operate a newsstand as a concessionaire or licensee.

§ 9. If the council rejects the mayor's proposal in accordance with section seven of this local law, the department of transportation may seek to obtain approval for the continuation or renewal of concessions covering newsstands operated by former newsstand licensees at such former licensees' newsstands or at replacement stands installed and maintained pursuant to a franchise granted pursuant to chapter fourteen of the city charter, and for the granting of concessions to newsstand licensees who have continued to operate newsstands as licensees. If the department of transportation does not seek such approval or approvals, or such approval or approvals are not obtained, the department of transportation shall inform the department of consumer affairs, and, notwithstanding the provisions. contained in subdivisions d and f of section 20-229 of subchapter seven of chapter two of title twenty of the administrative code of the city of New York as added by section three of this local law, the department of consumer affairs shall reissue newsstand licenses to such former licensees for the locations at which they are operating such newsstands and shall renew newsstand licenses that continue to be held by licensees at an annual fee of five hundred thirty-eight dollars. Such reissued and renewed licenses shall be subject to all of the requirements of subchapter seven of title twenty of the administrative code relating to newsstands as amended by this local law, provided, however, that such licenses shall not be subject to cancellation as provided in subparagraph b of paragraph one of subdivision f of section 20-229 of such code as added by section three of this local law.

§ 10. Nothing contained herein shall affect the concessions granted by the department of transportation pursuant to section three hundred seventy-four of the city charter to operate newsstands installed and maintained pursuant to a franchise granted pursuant to chapter fourteen of the city charter where such newsstands do not replace existing newsstands.

§ 11. This local law shall take effect immediately.