(A) The city shall issue a letter of intent to revoke a sexually-oriented business license or a sexually- oriented business employee license if a cause of suspension in § 115.025 of this chapter occurs and the license has been suspended within the preceding 12 months.
(B) The city shall issue a letter of intent to revoke a sexually-oriented business license or, in the case of an employee, a sexually-oriented business employee license, if the officer determines by a preponderance of evidence that:
(1) The licensee has knowingly or recklessly given false or misleading information in the application for the license;
(2) The sexually-oriented business licensee has knowingly or recklessly allowed possession, use, or sale of controlled substances on the premises, or in the case of an employee, the sexually-oriented business employee licensee has knowingly or recklessly engaged in the possession, use or sale of controlled substances on the premises. It shall be a defense to revocation proceedings under this division (B)(2) that such possession, use or sale occurred pursuant to a valid medical prescription;
(3) The sexually-oriented business licensee has knowingly or recklessly allowed prostitution on the premises or, in the case of an employee, the sexually-oriented business employee licensee has engaged in prostitution on any licensed premises;
(4) The sexually-oriented business licensee knowingly or recklessly operated the sexually- oriented business during a period of time when the license was suspended or, in the case of an employee, the sexually-oriented business employee licensee has been employed as a sexually-oriented business employee at a time when the employee’s license was suspended;
(5) The sexually-oriented business licensee committed an act in violation of 18 U.S.C. § 2257, or successor law, in or on the premises, or in the case of an employee, the sexually-oriented business employee licensee committed an act in violation of 18 U.S.C. § 2257, or successor law, in or on the premises; and
(6) The sexually-oriented business licensee has knowingly or recklessly allowed any specified sexual activity to occur in or on the premises or, in the case of an employee, the sexually-oriented business employee licensee has engaged in any specified sexual activity in or on any licensed premises.
(C) The fact that any relevant conviction is being appealed shall have no effect on the revocation of the license.
(D) For the purposes of this section, and for this entire chapter, an act by any employee that constitutes grounds for revocation of that employee’s license shall also be imputed to the sexually- oriented business for purposes of revocation proceedings if the Hearing Officer determines by a preponderance of evidence that an officer, director or general partner, or an employee who managed, supervised or controlled, or participated directly in decisions relating to management or control of the operation of the business, knowingly or recklessly allowed such act to occur on the premises.
(E) (1) When, after the notice and hearing procedure described in § 115.027 of this chapter, the Hearing Officer revokes a license, the revocation shall continue for one year and the licensee shall not be issued a sexually-oriented business license or sexually-oriented business employee license for one year from the date revocation becomes effective, provided that, if the conditions of § 115.027(B) of this chapter are met, a provisional license will be granted pursuant to that section.
(2) If, subsequent to a revocation based solely on division (B)(1) above, the Community Development Department finds that the basis for the revocation has been corrected or abated, the applicant shall be granted a license if at least 90 days have elapsed since the date the revocation became effective. If the license was revoked under divisions (B)(2), (B)(3), (B)(4), (B)(5) or (B)(6) above, an applicant may not be granted another license until at least one year has elapsed.
(Prior Code, § 14.18.100) (Ord. 98-16, passed 4-23-1998; Ord. 05-04, passed 2-3-2005)