Relates to purposes of licensing by the department of consumer affairs in the city of New York, includes businesses offering certain adult entertainment within the definition of "cabaret"

Summary of provisions

Section 1: Amends the Administrative Code of the City of New York section 20-359 (3) which relates to the regulation of "cabaret" establishments. This provision creates a new Class B Cabaret license. Such establishments that do not serve alcoholic beverages, but provide entertainment or amusement that is lewd or indecent in nature or which permits the exposure for view any private parts of the human body must obtain a Class B cabaret license. Currently these establishments that are not licensed by the State Liquor Authority and cannot be supervised by the City of New York.

Section 2: Adds a new Administrative Code of the City of New York section 20-359.1 that authorizes the NYC Department of Consumer Affairs to issue licenses for those that conduct activities as outlined in definition of those establishments that need a Class B license. Such Class B establishments are subject to all of the public safety safeguards that are required of Class A Cabarets. Such safeguards include, placing licensed safety guards at all entrances and exits, ensuring that all entrances and exits have surveillance equipment, requiring that such Class B cabarets can only operate during the same business hours as Class A cabarets (they must be closed from 4 AM until 8 AM) and that such establishment is in compliance with all health, fire, buildings, zoning, water, gas and electricity safety requirements.

In addition, if there is a pattern of illegal activity, bodily injury or criminal activity occurring at such Class B Cabaret, the NYC Consumer Affairs Department may close down such an establishment. In addition, before a Class B Cabaret license can be issued, the local Community Board must, within five days of receipt of such application by the Department of Consumer Affairs, receive notice that such application has been fielded. Further, such Community Board may, within 45 days of receipt of such notice, provide public comment or information it possesses regarding the proposed applicant. Such information shall be used by the Board in granting or denying such Class B Cabaret license.

Justification

In densely populated and developed communities, like those that make up New York City, certain types of businesses bring with them issues that can disturb the well being of the community. Strip clubs are one such type of possibly disruptive business. These kinds of clubs, if run irresponsibly, can become problematic, bringing drunkenness, lewd behavior, and violence to a neighborhood. For this reason, many municipalities, including New York City, place zoning

restrictions on these kinds. of businesses. Unfortunately, this has created a situation in which certain communities are disproportionately affected by the presence of more than several strip clubs, adult entertainment establishments, because of how they are zoned.

These communities have found that one way to prevent irresponsible club owners from continuing to operate in their neighborhoods has been through the process of granting or renewing liquor licenses. Existing regulations give local community boards the ability to weigh in on whether they think a business should receive or keep their license to sell alcohol. Clubs seeking to be licensed by the State Liquor Authority must meet certain requirements to show that they are responsibly run, and the ability to sell alcohol places certain restrictions on these clubs, such as limiting the hours of operation and preventing strip clubs from having dancers who are fully nude. If community boards can show that clubs have been run irresponsibly or are vectors or centers of criminal activity, they can get the State Liquor Authority to deny license renewals to clubs. By using this tool, many communities in New York City have been successful in getting poorly run and dangerous adult entertainment businesses shut down.

Unfortunately, certain irresponsible owners have thought up of a way to skirt community and regulatory oversight. As long as a club does not sell alcohol, and does not have a policy of allowing their patrons to dance, the only license they need to receive to open that business is a license to sell food or drink from the New York City Department of Health and Mental Hygiene. These owners open up "juice bars", strip clubs running at all hours of the night. As noted before, because they don't serve alcohol, the dancers can now strip down completely as well. Currently communities in New York City are powerless to even comment on the damage that such business can cause to the community. This legislation seeks to remedy this situation.

This legislation would mandate that clubs that have nude dancing and other sexually graphic entertainments that don't sell alcohol, and thus escape community review and regulatory oversight by the State Liquor Authority, must apply for a new type of Cabaret license from the NYC Department of Consumer Affairs. Currently, businesses that allow their patrons to dance must apply for cabaret licenses, regardless of whether they serve alcohol or not. In order to get a cabaret license, businesses must demonstrate the safety of the space they are using, as well as fulfill certain security requirements like having video surveillance of entrances and exits. In addition, the Department of Consumer Affairs must inform local community boards of any new cabaret license applications and give them the opportunity to comment on such applications. The new cabaret license created by this legislation would place all the same requirements on applicants. In addition, both new and renewal applications for this kind of cabaret license would have to be sent to the local community board for comment.

This legislation will make sure that irresponsible club owners in New York City cannot escape community and regulatory oversight. It is crucially important that we take action to prevent problematic

businesses from being able to open and destroy the quality of life of the surrounding neighborhoods.

Legislative history

New bill.

Fiscal implications

None.

Effective date

Ninety days after it shall have become a law.