When the city’s Department of Consumer Affairs found itself facing a budget gap, it didn’t cut expenses — it hired additional inspectors to slap more fines on small businesses, according to documents and officials.
In 2011, DCA Commissioner Jonathan Mintz hired 14 new inspectors, who doubled agency revenue by doling out more petty fines.
“It will bring in an additional $1.6 million in revenue in the new fiscal year,” Mintz told the City Council at the time.
“These staff additions will enable DCA to focus on undercover inspections of employment agencies and immigrant-service providers, as well as [make] additional focused inspections of tobacco dealers.”
His projections were right on the money.
The number of violations more than doubled from 10,964 in 2010 to 24,176 in 2012.
Most of the fines were lower than those handed out earlier, meaning business owners were paying more frequently for smaller offenses.
Fines averaged $966 between 2002 and 2009, and $697 after 2011.
But while the ticket blitz may have helped to get rid of some of the agency’s black ink, critics said the move had a more detrimental effect — punishing small businesses.
In June, Public Advocate Bill de Blasio, now the leading contender for mayor, called for Mintz’s resignation after learning the agency had been using a quota system to fine businesses, a charge Mintz has denied.
“Reports of internal DCA documents and interviews with employees in recent days have brought to light a ‘25 percent threshold,’ meaning inspectors are expected to issue one violation for every four businesses they inspect,” according to a public-advocate study.
“Those same accounts confirm agency staff pressured administrative law judges to rule against small businesses’ appeals.”
Fines ranged from $25 for failing to display prices to $10,000 for purposeful use of a condemned gas-station pump.
“Small businesses have enough challenges without contrived obstacles,” said Councilmember Debi Rose.
A DCA official noted that the fines are set by the council, not the agency.
The council has introduced 38 new laws since 2008 that the agency has had to enforce.
The DCA has more than doubled the fines to vendors of realistic-looking toy guns, cigarette retailers and tow-truck companies.
“Protecting New Yorkers during difficult economic times is a stronger public priority than ever, said DCA spokeswoman Abigail Lootens. “Which is why Consumer Affairs aggressively holds businesses accountable.’’