Section 20-227.1. A

Any person found to be operating an unlicensed sidewalk
  cafe shall be liable for a civil penalty of at least two hundred and not
  more  than  one  thousand  dollars for the first violation, at least two
  hundred and not more than  one  thousand  dollars  for  each  additional
  violation  occurring  on the same day; and at least five hundred and not
  more than two  thousand  dollars  for  the  second  violation  and  each
  subsequent  violation  at  the  same place of business within a two-year
  period. For purposes of this section, any  violation  for  operating  an
  unlicensed  sidewalk cafe shall be included in determining the number of
  violations by any  subsequent  license  holder  at  the  same  place  of
  business  unless  the  subsequent license holder provides the department
  with adequate documentation demonstrating that  the  subsequent  license
  holder  acquired  the  premises  or  business  through  an  arm's length
  transaction as defined in subdivision f of this  section  and  that  the
  sale or lease was not conducted, in whole or in part, for the purpose of
  permitting the original license holder to avoid the effect of violations
  on the premises.
    b.  Any  holder  of a license found to be operating a sidewalk cafe in
  violation of this subchapter, the terms and conditions of  such  license
  and/or  a  revocable  consent  or  rules promulgated by the commissioner
  pursuant to this subchapter, shall be liable for a civil penalty  of  at
  least  two  hundred and not more than one thousand dollars for the first
  violation, at least two hundred and not more than one  thousand  dollars
  for  each  additional  violation occurring on the same day; and at least
  five hundred and not more than  two  thousand  dollars  for  the  second
  violation,  and  at  least  one thousand and not more than four thousand
  dollars for each subsequent violation at  the  same  place  of  business
  within  a  two-year period. In addition, for a third violation occurring
  on a different day and all subsequent violations occurring on  different
  days  at the same place of business within a two-year period, any person
  licensed to operate a sidewalk cafe at such place of business  shall  be
  subject  to suspension or revocation of his or her sidewalk cafe license
  for such place of business. For  purposes  of  this  section,  any  such
  violation by any license holder at a place of business shall be included
  in determining the number of violations by any subsequent license holder
  at  the  same  place  of  business  unless the subsequent license holder
  provides the department with adequate documentation  demonstrating  that
  the  subsequent license holder acquired the premises or business through
  an arm's length transaction as defined in subdivision f of this  section
  and  that  the sale or lease was not conducted, in whole or in part, for
  the purpose of permitting the  original  license  holder  to  avoid  the
  effect  of  violations on the premises. A sidewalk cafe license shall be
  suspended or revoked at the same hearing at  which  a  person  is  found
  liable  for a third violation or subsequent violations at the same place
  of business within a two-year period.
    c. A proceeding to recover any civil penalty  authorized  pursuant  to
  the provisions of subdivisions a or b of this section shall be commenced
  by  service  of  a  notice of violation which shall be returnable to the
  adjudication division of the department. Such  notice  shall  contain  a
  statement   that  any  hearing  for  a  third  violation  or  subsequent
  violations of this subchapter, the terms and  conditions  of  a  license
  and/or  a  revocable  consent  or  rules promulgated by the commissioner
  under this subchapter at the same place of business  within  a  two-year
  period  shall also constitute a hearing for the suspension or revocation
  of a license.
    d. The penalties provided by subdivisions a  and  b  of  this  section
  shall be in addition to any other penalty imposed by any other provision
  of law or rule promulgated thereunder.

    e.  In addition to any other enforcement procedures authorized by this
  subchapter or any other provision of law or rule, the commissioner after
  notice and a hearing shall be authorized to order that any sidewalk cafe
  and the restaurant of which it is a portion be sealed for a  period  not
  to  exceed  thirty  consecutive  days.  Such notice may be included with
  notice of any hearing for a second violation for operating an unlicensed
  sidewalk cafe as provided in subdivision a of this section, or  a  third
  violation  of  this  subchapter,  the  terms and conditions of a license
  and/or a revocable consent or rules promulgated by the commissioner,  as
  provided  in  subdivision  b  of  this  section.  For  purposes  of this
  subdivision, any such  violations  at  a  place  of  business  shall  be
  included  in  determining  the  number  of  violations by any subsequent
  license holder at the same  place  of  business  unless  the  subsequent
  license  holder  provides  the  department  with  adequate documentation
  demonstrating that the subsequent license holder acquired  the  premises
  or   business   through  an  arm's  length  transaction  as  defined  in
  subdivision f of this section  and  that  the  sale  or  lease  was  not
  conducted,  in  whole  or  in  part,  for  the purpose of permitting the
  original license holder  to  avoid  the  effect  of  violations  on  the
  premises.  The procedures provided for in subdivisions c and e through j
  of section 20-105  of  this  title  shall  apply  to  an  order  by  the
  commissioner  for sealing of a sidewalk cafe and the restaurant of which
  it is a portion.
    f. For purposes of this section, "arm's length  transaction"  means  a
  sale  of  a fee or all undivided interests in real property, or lease of
  any part thereof, or a sale  of  a  business,  in  good  faith  and  for
  valuable consideration, that reflects the fair market value of such real
  property or lease, or business, in the open market, between two informed
  and   willing   parties,  where  neither  is  under  any  compulsion  to
  participate in the transaction, unaffected  by  any  unusual  conditions
  indicating  a reasonable possibility that the sale or lease was made for
  the purpose of permitting the original licensee to avoid the  effect  of
  violations  on  the  premises.  The  following  sales or leases shall be
  presumed  not  to  be  arm's   length   transactions   unless   adequate
  documentation  is  provided demonstrating that the sale or lease was not
  conducted, in whole or in  part,  for  the  purpose  of  permitting  the
  original licensee to avoid the effect of violations on the premises:
    (1) a sale between relatives;
    (2) a sale between related companies or partners in a business; or
    (3)  a  sale  or  lease  affected by other facts or circumstances that
  would indicate that the sale or lease is entered into  for  the  primary
  purpose  of  permitting  the  original  licensee  to avoid the effect of
  violations on the premises,
    g. Notwithstanding the provisions of  subdivisions  a  or  b  of  this
  section,  the  suspension  or  revocation  of a license for a subsequent
  offense shall be waived if, upon the submission of  satisfactory  proof,
  the commissioner determines that the person or persons who committed the
  violations  which  are  the basis for the suspension or revocation acted
  against the licensee's will in committing such violations.