A. Suspension Within Specified Time: The town 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 as provided in section 3-5-13 of this chapter occurs and the license has been suspended within the preceding twelve (12) months.
B. Evidence Of Violations: The town 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 given false or misleading information in the application for the license.
2. The sexually oriented business licensee has knowingly 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 engaged in the possession, use or sale of controlled substances on the premises. It shall be a defense to revocation proceedings under this subsection that such possession, use or sale occurred pursuant to a valid medical prescription.
3. The sexually oriented business licensee has knowingly 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 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 United States Code section 2257, 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 United States Code section 2257, in or on the premises.
6. The sexually oriented business licensee has knowingly 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. Appeal No Effect: The fact that any relevant conviction is being appealed shall have no effect on the revocation of the license.
D. Applicability Of Employee Acts: For the purposes of this section, 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 in the operation of the business, knowingly allowed such act to occur on the premises.
E. Nature Of Revocation: When, after the notice and hearing procedure described in section 3-5-15 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 subsection 3-5-15B of this chapter are met, a provisional license will be granted pursuant to that subsection. If, subsequent to a revocation based solely on subsection B1 of this section, the town finds that the basis for the revocation has been corrected or abated, the applicant shall be granted a license if at least ninety (90) days have elapsed since the date the revocation became effective. If the license was revoked under subsections B2 through B6 of this section, an applicant may not be granted another license until at least one year has elapsed. (Ord. 11-01, 6-21-2011, eff. 7-1-2011)