Appeals Court Nixes New Rules For NYC's X-Rated Businesses

NEW YORK (CBSNewYork/AP) -- A state appeals court has given a green light to the red light district, turning aside New York City's desire to further restrict its racy adult establishments.

The 3-to-2 decision Tuesday came from the New York Supreme Court Appellate Division. The city tried to add new restrictions to a mid-1990s law that drove many adult bookstores, movie houses and strip clubs out of business.

The city claimed the establishments that continued made a sham of rules that say sexually oriented materials or acts must amount to less than 40 percent of a business's space. But the additional restrictions had not yet been enforced because of a lengthy legal battle.

The appeals court said Tuesday the changes are unconstitutional.

The city law office says it's reviewing the ruling.

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