S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4604

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 5, 2009
                               ___________

Introduced  by M. of A. JAFFEE, WALKER, HOYT, RAIA -- Multi-Sponsored by
  -- M. of A. BRENNAN, GOTTFRIED, McKEVITT -- read once and referred  to
  the  Committee  on  Economic  Development,  Job Creation, Commerce and
  Industry

AN ACT to amend the general business law and the administrative code  of
  the  city  of  New York, in relation to requiring certain retailers to
  implement security measures when offering "doorbuster type sales"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
390-d to read as follows:
  S  390-D.  DOORBUSTER TYPE SALES; SECURITY MEASURES. 1. THE PROVISIONS
OF THIS SECTION SHALL APPLY TO ANY  CORPORATION,  ASSOCIATION,  PARTNER-
SHIP, LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, OR OTHER
LEGAL  ENTITY  WHICH  OPERATES A RETAIL PREMISES OF OVER NINETY THOUSAND
SQUARE FEET OF RETAIL SPACE OR ANY OF THE ABOVE WHICH OPERATES  A  CHAIN
OF RETAIL PREMISES OF SIX OR MORE.
  2.  FOR  THE PURPOSES OF THIS SECTION, THE TERM "DOORBUSTER TYPE SALE"
SHALL MEAN AND INCLUDE THE ADVERTISED SALE OF ITEMS OR HIGH DEMAND ITEMS
FOR A SPECIFIC DEFINED PERIOD OF TIME WHICH SHALL BE LESS THAN  SEVENTY-
TWO  HOURS  WHERE  SUCH  ITEM OR ITEMS ARE OFFERED IN A LIMITED QUANTITY
INTENDED TO ATTRACT HIGHER THAN AVERAGE CUSTOMER TRAFFIC.
  3. ANY RETAILER WHICH CONDUCTS A DOORBUSTER TYPE SALE SHALL  INSTITUTE
AND PROVIDE THE SECURITY PRECAUTIONS AND PROCEDURES WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO THE FOLLOWING:
  A. EMPLOY AN ADEQUATE NUMBER OF STAFF TO MONITOR, ASSIST AND CONTROL A
REASONABLY ESTIMATED NUMBER OF CUSTOMERS;
  B.  HAVE  STAFF  WORKING  OUTSIDE ON THE LINE BEFORE THE DOORS OPEN TO
KEEP AN EYE ON POTENTIALLY DISRUPTIVE CUSTOMERS;
  C. PROVIDE ALL STAFF WITH ADEQUATE TRAINING, SPECIFICALLY RELATING  TO
CROWD CONTROL AND STORE SAFETY AND SALES PROCEDURES;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06121-01-9
              

A. 4604                             2

  D.  DEVELOP  AND  INSTITUTE  STORE  POLICIES  AND PROCEDURES WHICH ARE
DESIGNED TO PROMOTE THE FAIR AND ORDERLY SALES  OF  PRODUCTS  WHICH  ARE
BEING  OFFERED  AT  A  REDUCED  SALE PRICE INCLUDING, BUT NOT LIMITED TO
SECURED, MARKED WAITING AREAS  OUTSIDE  THE  RETAIL  PREMISES,  A  FIRST
COME-FIRST  SERVED  OR  LOTTERY  NUMBER ISSUE SYSTEM FOR GOODS WHICH ARE
LIMITED IN QUANTITY; PLACEMENT OF  CERTAIN  LIMITED  QUANTITY  ITEMS  IN
RESTRICTED  AREAS WHICH ARE SECURED BY STAFF AND/OR OTHER SECURITY MEAS-
URES SO AS TO ALLOW FOR THE ORDERLY DISTRIBUTION OF SUCH ITEMS BY  SALES
ASSOCIATES ACCORDING TO SET POLICIES AND PROCEDURES;
  E. PUBLISH AND POST NOTICE OF STORE POLICIES REGARDING ANY SYSTEM USED
TO DETERMINE CUSTOMER PREFERENCE FOR LIMITED QUANTITY ITEMS; AND
  F.  COORDINATE  WITH  ANY LOCAL AUTHORITIES OR AGENCIES WHEN IT CAN BE
REASONABLY ANTICIPATED THAT ANY SUCH SALE MAY  POSE  A  RISK  TO  PUBLIC
HEALTH, SAFETY OR ORDER.
  4.  ANY VIOLATION OF ANY PROVISION OF THIS SECTION SHALL BE SUBJECT TO
A FINE OF ONE THOUSAND DOLLARS PER DAY OF NON-AVAILABILITY OF DOORBUSTER
PROCEDURES FOR LACK OF A DEMONSTRABLE PLAN FOR A  FIRST  VIOLATION,  AND
ONE HUNDRED THOUSAND DOLLARS FOR ANY SUBSEQUENT VIOLATION.
  5.  THE  ATTORNEY  GENERAL  OF  THE  STATE  OF NEW YORK SHALL HAVE THE
AUTHORITY TO ENFORCE THE PROVISIONS OF THIS SECTION.
  S 2. Section 581 of the general business law is amended  by  adding  a
new subdivision (h) to read as follows:
  (H)  THE TERM "DOORBUSTER TYPE SALE" SHALL MEAN AND INCLUDE THE ADVER-
TISED SALE OF ITEMS OR HIGH DEMAND ITEMS FOR A SPECIFIC  DEFINED  PERIOD
OF  TIME  WHICH  SHALL BE LESS THAN SEVENTY-TWO HOURS WHERE SUCH ITEM OR
ITEMS ARE OFFERED IN A LIMITED QUANTITY INTENDED TO ATTRACT HIGHER  THAN
AVERAGE CUSTOMER TRAFFIC.
  S  3.  Subdivision  (b) of section 583 of the general business law, as
added by chapter 435 of the laws of 1968, is amended to read as follows:
  (b) If the application is for a "closing out sale",  "DOORBUSTER  TYPE
SALE"  or  a "defunct business sale," it shall be filed at least fifteen
days prior to the date on which such sale is to commence.
  S 4. Subdivision (d) of section 583 of the  general  business  law  is
amended by adding a new paragraph 11-a to read as follows:
  (11-A)  IF THE APPLICATION IS FOR A "DOORBUSTER TYPE SALE", THE APPLI-
CANT SHALL PROVE IT HAS TAKEN THE NECESSARY SECURITY PRECAUTIONS  BEFORE
BEING GRANTED A LICENSE TO HOLD A SALE.
  S 5. Section 20-308 of the administrative code of the city of New York
is amended by adding a new subdivision 3 to read as follows:
  3. "DOORBUSTER TYPE SALE". THE ADVERTISED SALE OF ITEMS OR HIGH DEMAND
ITEMS  FOR  A  SPECIFIC  DEFINED PERIOD OF TIME WHICH SHALL BE LESS THAN
SEVENTY-TWO HOURS WHERE SUCH ITEM OR ITEMS  ARE  OFFERED  IN  A  LIMITED
QUANTITY INTENDED TO ATTRACT HIGHER THAN AVERAGE CUSTOMER TRAFFIC.
  S 6. Section 20-309 of the administrative code of the city of New York
is amended to read as follows:
  S  20-309  License required. 1. It shall be unlawful for any person to
publish or conduct any sale of the type herein defined without a license
therefor and a license issued pursuant to this  subchapter  for  a  sale
advertised  as a "branch store discontinuance sale" shall apply only to,
and the sale shall be conducted only at,  the  premises  of  the  branch
which is being discontinued.
  2.  THE  PROVISIONS  OF  THIS  SECTION SHALL APPLY TO ANY CORPORATION,
ASSOCIATION, PARTNERSHIP, LIMITED LIABILITY COMPANY,  LIMITED  LIABILITY
PARTNERSHIP,  OR  OTHER LEGAL ENTITY WHICH OPERATES A RETAIL PREMISES OF
OVER NINETY THOUSAND SQUARE FEET OF RETAIL SPACE OR  ANY  OF  THE  ABOVE
WHICH OPERATES A CHAIN OF RETAIL PREMISES OF SIX OR MORE.

A. 4604                             3

  3.  FOR  THE PURPOSES OF THIS SECTION, THE TERM "DOORBUSTER TYPE SALE"
SHALL MEAN AND INCLUDE THE ADVERTISED SALE OF ITEMS OR HIGH DEMAND ITEMS
FOR A SPECIFIC DEFINED PERIOD OF TIME WHICH SHALL BE LESS THAN  SEVENTY-
TWO  HOURS  WHERE  SUCH  ITEM OR ITEMS ARE OFFERED IN A LIMITED QUANTITY
INTENDED TO ATTRACT HIGHER THAN AVERAGE CUSTOMER TRAFFIC.
  4.  ANY RETAILER WHICH CONDUCTS A DOORBUSTER TYPE SALE SHALL INSTITUTE
AND PROVIDE THE SECURITY PRECAUTIONS AND PROCEDURES WHICH SHALL INCLUDE,
BUT NOT BE LIMITED TO THE FOLLOWING:
  A. EMPLOY AN ADEQUATE NUMBER OF STAFF TO MONITOR, ASSIST AND CONTROL A
REASONABLY ESTIMATED NUMBER OF CUSTOMERS;
  B. HAVE STAFF WORKING OUTSIDE ON THE LINE BEFORE  THE  DOORS  OPEN  TO
KEEP AN EYE ON POTENTIALLY DISRUPTIVE CUSTOMERS;
  C.  PROVIDE ALL STAFF WITH ADEQUATE TRAINING, SPECIFICALLY RELATING TO
CROWD CONTROL AND STORE SAFETY AND SALES PROCEDURES;
  D. DEVELOP AND INSTITUTE  STORE  POLICIES  AND  PROCEDURES  WHICH  ARE
DESIGNED  TO  PROMOTE  THE  FAIR AND ORDERLY SALES OF PRODUCTS WHICH ARE
BEING OFFERED AT A REDUCED SALE PRICE  INCLUDING,  BUT  NOT  LIMITED  TO
SECURED,  MARKED  WAITING  AREAS  OUTSIDE  THE  RETAIL PREMISES, A FIRST
COME-FIRST SERVED OR LOTTERY NUMBER ISSUE SYSTEM  FOR  GOODS  WHICH  ARE
LIMITED  IN  QUANTITY;  PLACEMENT  OF  CERTAIN LIMITED QUANTITY ITEMS IN
RESTRICTED AREAS WHICH ARE SECURED BY STAFF AND/OR OTHER SECURITY  MEAS-
URES  SO AS TO ALLOW FOR THE ORDERLY DISTRIBUTION OF SUCH ITEMS BY SALES
ASSOCIATES ACCORDING TO SET POLICIES AND PROCEDURES;
  E. PUBLISH AND POST NOTICE OF STORE POLICIES REGARDING ANY SYSTEM USED
TO DETERMINE CUSTOMER PREFERENCE FOR LIMITED QUANTITY ITEMS; AND
  F. COORDINATE WITH ANY LOCAL AUTHORITIES OR AGENCIES WHEN  IT  CAN  BE
REASONABLY  ANTICIPATED  THAT  ANY  SUCH  SALE MAY POSE A RISK TO PUBLIC
HEALTH, SAFETY OR ORDER.
  5. ANY VIOLATION OF ANY PROVISION OF THIS SECTION SHALL BE SUBJECT  TO
A FINE OF ONE THOUSAND DOLLARS PER DAY OF NON-AVAILABILITY OF DOORBUSTER
PROCEDURES  FOR  LACK  OF A DEMONSTRABLE PLAN FOR A FIRST VIOLATION, AND
ONE HUNDRED THOUSAND DOLLARS FOR ANY SUBSEQUENT VIOLATION.
  6. THE ATTORNEY GENERAL OF THE  STATE  OF  NEW  YORK  SHALL  HAVE  THE
AUTHORITY TO ENFORCE THE PROVISIONS OF THIS SECTION.
  S 6. Paragraph 6 of subdivision b of section 20-310 of the administra-
tive  code of the city of New York is amended and a new paragraph 6-a is
added to read as follows:
  6. Where and from whom such stock was purchased or acquired;  and,  if
not purchased, the manner of such acquisition[.];
  6-A. IF THE APPLICATION IS FOR A "DOORBUSTER TYPE SALE", THE APPLICANT
SHALL PROVE IT HAS TAKEN THE NECESSARY SECURITY PRECAUTIONS BEFORE BEING
GRANTED A LICENSE TO HOLD A SALE; AND
  S  7.  This  act shall take effect on the ninetieth day after it shall
have become a law.