Relates to licensing by the department of consumer affairs in the city of New York; includes businesses offering certain adult entertainment within the definition of "cabaret".
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9829
SPONSOR: Crespo TITLE OF BILL: An act to amend the administrative code of the city of
New York, in relation to the licensing of establishments providing adult
entertainment
PURPOSE: The purpose of this bill is to bring into the regulatory
framework those adult entertainment establishments in the City of New
York that have lewd or indecent entertainment performed or condoned but
which do not have licenses to sell alcoholic beverages or which such
license to serve alcoholic beverages has been revoked.
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' estab-
lishments. This provision creates a new Class B Cabaret license. Such
establishments that do not serve alcoholic beverages, but provide enter-
tainment 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 defi-
nition 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 cabaret 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 drunken-
ness, lewd behavior, and violence to a neighborhood. For this reason,
many municipalities, including New York C:ty, place zoning restrictions
on these kinds. of businesses. Unfortunately, this has created a situ-
ation 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 cub
owners from continuing to operate in their neighborhoods has been
through the process of granting or renew liquor licenses Existing regu-
lations give local community boards the ability to weigh in on whether
they think a business should receive or keep their license to sell alco-
hol. 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 enter-
tainment 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 s 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 wet. 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 end 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 applica-
tions 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 applica-
tions 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 busi-
nesses 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 steal have become a law.
