Senate Bill S8181

                                 BILL NUMBER:  S8181

 TITLE OF BILL :

An act to amend the administrative code of the city of New York, in
relation to the licensing of cabarets

 PURPOSE OF BILL :

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

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends Subdivision (a) of Section 20-360 of the
Administrative Code of the City of New York by including language
authorizing the Commissioner of the New York City Department of
Consumer Affairs to impose fines of up to $10,000 for violations of
the cabaret licensing rules by establishments not holding a valid
cabaret license, as well as allows the Commissioner to consider past
violations of this kind in reviewing applications for a new cabaret
license.

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.