BILL NUMBER:  S5654

 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serve alcoholic beverages has been revoked.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"
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 :

2014 - S. 7261 - Committed to Rules
2016/2016 S. 1338 - Advanced to 3" Reading in 2015, and remained in
Cities Committee in 2016

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Ninety days after it shall have become a law.