Enhances penalties for violations by cabarets in the city of New York

Section 2 amends Subdivision (a) of Section 20-361 of the Administrative Code of the City of New York by adding a new Paragraph 8, which allows for the rejection of an application for a cabaret license based upon a determination by the pertinent community board that the issuance or-renewal of a license would have a negative impact upon the surrounding community of an establishment.

Section 3 amends Subdivision (a) of Section 20-369 of the Administrative Code of the City of New York by providing that the New York City Department of Consumer Affairs shall suspend a cabaret license for a period of sixty days upon a violation of the cabaret license rules, as well as be authorized to wage a line of up to $10,000 against the violating establishment and/or its officers, principals, directors, agents or employees, or its stockholders in the case of a closely held corporation.

Section 4 establishes the effective date.

Justification

New York City establishments holding cabaret licenses are those that serve food and/or alcohol, as well as offer dancing for patrons within their walls, e.g., nightclubs throughout the City. It is often the case that these nightclubs bring a negative impact upon the quality of life for residents who live in surrounding areas. Increases in noise and crime are often reported. For example. Roosevelt Avenue in Queens has become a thoroughfare filled with raucous behavior once the night falls. Making matters worse, many establishments operating as nightclubs after the sun sets are those who do not possess a requisite cabaret license that allows dancing on their premises.

While enforcement of the cabaret license rules by the New York City Department of Consumer Affairs and the New York City Police Department has been lacking in some neighborhoods, the existing penalties for violations of these rules are also too low. For instance, many fines are capped at $1,000 per violation, plausibly lending credit to the notion that it is cost effective for business owner to risk such a fine when profits for a night far exceed this occasional 'cost of doing business.'

This legislation takes a multipronged approach to improving the current state of the cabaret license rules, by allowing the Department of Consumer Affairs to issue a line of up to $10,000 upon a cabaret license holder for each violation of the rules, which may be levied upon not just a corporate entity, but also officers, directors, shareholders, agents and employees of a violating business. The legislation also mandates a license suspension of sixty days for a violation of the cabaret license rules, which are found in the Administrative Code of the City of New York. For entities acting as a cabaret without the requisite license to do so, the legislation would similarly allow a tine of up to $10,000 against these establishments, as well as allow the Department to take these violations into account if the entity later applies for a lawful cabaret license. Finally. the legislation allows the Department to reject an application for a new cabaret license or a renewal, if the community board overseeing the location in which the establishment does business determines that an issuance would have a negative impact upon the surrounding neighborhood.

Prior legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.