Section 17-314.1. Transferability  


Latest version.
  • a.  No  license, permit or plate issued
      under this subchapter shall be assignable or transferable.
        b. No vehicle or pushcart used to vend food in a public place shall be
      assignable or transferable with a license, permit or plate that has been
      issued under this subchapter attached thereto.
        c. A transfer in violation of this section shall  be  deemed  to  have
      occurred  where,  if  a  corporation  is the permittee, there has been a
      change in fifty percent or  more  of  the  ownership  interest  in  such
      corporation  from the ownership interest existing on the date the permit
      was issued, or where the permittee is a limited liability company, where
      there has been the addition of any member, and where the permittee is  a
      partnership,   where  there  has  been  the  addition  of  any  partner.
      Furthermore,  any  such  transfer  in  an  exclusive  distributor  or  a
      manufacturer who has been issued more than one temporary permit pursuant
      to  item  (B)  of  clause (ii) of subparagraph (a) of paragraph three of
      subdivision f of section 17-307 of this subchapter shall result  in  the
      automatic  revocation of all such additional temporary permits issued to
      such persons pursuant to such provision.
        d. Notwithstanding the provisions in subdivisions a, b and c  of  this
      section:
        1.  the  commissioner may, in his or her discretion, transfer a permit
      to  a  dependent  husband,  wife,  domestic  partner  or  child  of   an
      incapacitated  or  deceased  person  to whom the permit was issued under
      this subchapter;
        2. an exclusive distributor or a manufacturer who has been issued more
      than one temporary permit  pursuant  to  item  (B)  of  clause  (ii)  of
      subparagraph  (a)  of paragraph three of subdivision f of section 17-307
      of this subchapter may  lease  a  vehicle  or  pushcart  owned  by  such
      exclusive  distributor or manufacturer with such exclusive distributor's
      or manufacturer's temporary permit attached thereto to a person licensed
      as a food vendor pursuant to  this  subchapter  if  (a)  such  exclusive
      distributor  or  manufacturer files with the department the bill of sale
      or other proof of ownership for such vehicle or  pushcart  with  a  duly
      issued sales tax receipt attached thereto; (b) such lease agreement sets
      forth the food product which may be primarily sold using such vehicle or
      pushcart;  and  (c)  such lease agreement is approved by the department,
      provided, however, that if such  lease  agreement  is  not  approved  or
      disapproved  within  thirty  calendar days after such lease agreement is
      filed with the department, such lease agreement shall be  deemed  to  be
      approved  by  the  department.  The  commissioner shall promulgate rules
      establishing the standards by which the department shall  evaluate  such
      lease  agreements  and  such standards shall include, but not be limited
      to, requirements that such lease agreements contain fair and  reasonable
      terms  based upon such factors as the cost of purchasing and maintaining
      such pushcart or vehicle and that the terms of such lease agreement  are
      the  result  of an arm's length negotiation between the parties thereto.
      Subleasing of any such vehicle  or  pushcart  owned  by  such  exclusive
      distributor   or  manufacturer  with  such  exclusive  distributor's  or
      manufacturer's temporary permit attached thereto is strictly prohibited.
      Authorized officers and employees of the department  of  small  business
      services and the department of investigation may assist the commissioner
      and the department in effectuating the provisions of this paragraph. Any
      violation or violations of the provisions of this paragraph or any rules
      promulgated  hereunder by an exclusive distributor or a manufacturer who
      has been issued more than one temporary permit pursuant to item  (B)  of
      clause  (ii)  of subparagraph (a) of paragraph three of subdivision f of
      section 17-307 of this subchapter may be the  basis  for  suspension  or
    
      revocation of all of the permits issued to such exclusive distributor or
      manufacturer pursuant to this subchapter.