§ 8-11-7 GRANTING, DENIAL, REVOCATION AND SUSPENSION; APPEAL.
   (A)   Upon receipt of a complete application for a sexually oriented business operator, manager, adult services provider or employee permit, payment of the required fees and completion of photograph and fingerprinting requirements under this article, the City Clerk shall issue to the applicant a temporary permit. The issuance of a temporary permit does not waive any right of city to revoke, deny or suspend for any defect, omission or misrepresentation in the application.
   (B)   Within 30 calendar days after the application for a sexually oriented business operator, manager, adult services provider or employee permit is filed with the city, the City Clerk shall, based on the recommendations of the Chief of Police, Zoning Administrator and Building Official, notify such applicant by prepaid first class certified mail, return receipt requested, whether the permit will be granted, denied or renewed. Failure by the City Clerk to issue such notice upon expiration of this time period shall be deemed as issuance of the permit.
   (C)   The City Clerk shall grant the permit or renewal application thereof if all requirements for the application have been completed, unless:
      (1)   The applicant is under 18 years of age;
      (2)   The application contains incomplete information to justify the issuance of a permit;
      (3)   The required application has not been paid;
      (4)   The applicant has made false, misleading or fraudulent statements of material fact in the application;
      (5)   The building, structure, equipment or location proposed by the applicant for the sexually oriented business does not comply with the requirements pursuant to this article, and other health, fire, building, safety, development standards and zoning provisions enacted by the city; or
      (6)   The applicant is delinquent in payment to the city of taxes, fees, fines or penalties assessed against or imposed upon the applicant in relation to sexually oriented businesses
   (D)   In the case of the granting of a sexually oriented business operator permit, the permit shall state on its face the name of the licensee, the expiration date and the address of the sexually oriented business. The permit shall be posted in a conspicuous place at or near the entrance.
   (E)   The City Clerk shall suspend a permit for a period of 10 working days if a licensee is not in compliance with this article.
   (F)   The City Clerk shall revoke a permit pursuant to this article if the licensee:
      (1)   Has failed to come within compliance of any provision in this article within 10 working days from the last day of the suspension as provided in division (E) above;
      (2)   Is convicted of 3 or more violations of this article in any 12-month period;
      (3)   Is convicted or pleads guilty or no contest to offenses stated in Vol. I, § 8-11-5(F)(8); or
      (4)   Is determined to have filed inaccurate information in the application.
   (G)   If the City Clerk determines that grounds exist for denial, suspension or revocation of a permit, the City Clerk shall notify the applicant by prepaid first class certified mail, return receipt requested, including the grounds for such action. The grounds shall make reference to the applicable sections and divisions of this article which have not been complied with or have been violated. The applicant may respond to the City Clerk within 10 working days in writing setting forth a statement as to why the permit should not be denied, suspended or revoked. The statement may also request a hearing. If a response is not received by the City Clerk in the time stated, the denial, suspension or revocation shall be final and the City Clerk shall send written notice to the applicant within 5 working days after expiration of the period for submitting a response by prepaid first class certified mail, return receipt requested.
   (H)   Within 5 working days after receipt of response, the City Clerk shall either:
      (1)   Withdraw the denial, suspension or revocation determination, and will so notify the applicant as in the manner proscribed above; or
      (2)   Schedule a hearing, a hearing officer designated by the City Manager and so notify the applicant in the manner noted above, including the date, time and place of the hearing. If the City Clerk fails to send a timely notification, the permit shall be deemed to continue as valid until the annual renewal date. The hearing will be conducted informally. All parties shall have a right to offer testimonial, documentary and tangible evidence bearing on the issues. Each party may also be represented by an Arizona licensed attorney of their own choosing at their own expense, and shall have the right to confront and cross-examine witnesses. Although the Arizona rules of evidence will not apply at this hearing, any relevant evidence as determined by the hearing officer may be admitted that is the sort of evidence persons are accustomed to rely in the conduct of serious affairs. The hearing shall be scheduled not less than 15 nor more than 20 working days after receipt by the City Clerk of the request for a hearing. The applicant shall have the burden of proving by a preponderance of the evidence that the denial, suspension or revocation was arbitrary or capricious and was an abuse of discretion.
   (I)   The hearing officer shall render a written decision within 5 working days after completion of the hearing and shall notify the applicant of the determination by prepaid first class certified mail, return receipt requested. The decision shall be final at the end of 5 working days after it is mailed and shall constitute final administrative review. The applicant may continue to function under the permit pending receipt of the final decision of the hearing officer.
   (J)   The hearing officer's decision may be appealed to the Pinal Superior Court by special action or other appropriate procedure within 35 calendar days after mailing of the written decision to the applicant. If a licensee pursues a judicial appeal from a final administrative action, the licensee may continue to function under the permit pending completion of the judicial review.
(Am. Ord. 1296, passed 5-1-2007)