(A) The Director shall issue a written letter of intent to suspend an adult entertainment license or an employee license, as applicable, for a period not to exceed 30 days if he or she determines that the licensee knowingly or recklessly violated or is not in compliance with any section of this chapter.
(B) The Director shall issue a written statement of intent to revoke an adult entertainment establishment license or an employee license, as applicable, if the licensee knowingly or recklessly commits two or more violations specified in this chapter within a 12-month period.
(C) The Director shall issue a written statement of intent to revoke an adult entertainment establishment license or an employee license, as applicable, if:
(1) The licensee knowingly gave false information in the material submitted during the application process;
(2) The licensee has knowingly engaged in or allowed possession, use or sale of control substances on the premises;
(3) The licensee has knowingly engaged in or allowed prostitution on the premises;
(4) The licensee has knowingly operated the adult entertainment establishment during a period of time when the licensee’s license was suspended;
(5) The licensee has knowingly engaged in or allowed any act of sexual intercourse, sodomy, oral copulation or masturbation to occur in or on the licensed premises. This subsection will not apply to an adult motel, unless the licensee knowingly allowed the foregoing sexual activities to occur either in exchange for money or in a place within public view.
(D) The fact that a conviction is being appealed shall have effect on the revocation of the license; provided, however, that, any reversal of a conviction shall automatically eliminate that conviction from consideration in this chapter.
(E) When, after the notice and hearing procedure described in division (F) below, the Director revokes a license, the revocation shall continue for one year and the licensee shall not be issued an adult entertainment establishment license or an employee license for one year from the date revocation becomes effective; provided that, if the conditions of division (G) below are met, a provisional license will be granted pursuant to that division (G) below.
(F) If facts exist for denial, suspension or revocation of an adult entertainment establishment license or an employee license issued under this chapter, the Director shall notify the applicant or licensee (respondent) in writing of the intent to deny, suspend or revoke the license, including the grounds therefor, by personal delivery or by certified mail. The notification shall be directed to the most current business address on file with the Director, and will provide the address of the Hearing Board to which the respondent should direct his or her response. Within five working days of receipt of such notice, the respondent may provide to the Hearing Board, in writing, a response that shall include a statement of reasons why the license or permit should not be denied, suspended or revoked. Within three working days of the receipt of respondent’s written response, the Hearing Board shall notify respondent in writing of the hearing date on respondent’s denial, suspension or revocation proceeding.
(1) Within ten working days of the receipt of respondent’s written response, the Hearing Board shall conduct a hearing at which respondent shall have the opportunity to be represented by counsel, present evidence and witnesses on his or her behalf, and cross-examine adverse witnesses. Such proceeding shall be transcribed or recorded. Within ten working days after any hearing, the Hearing Board shall issue a written decision on the matter and mail such decision to the respondent by certified mail no later than five working days after the date of such decision.
(2) (a) If a response is not received by the Hearing Board in the time stated or, if after hearing, the Hearing Board finds that grounds as specified in this chapter exist for denial, suspension or revocation, then such denial, suspension or revocation shall become final five working days after the Hearing Board sends, by certified mail, the written decision and notice that the license has been denied, suspended or revoked.
(b) Such notice shall include a statement advising the applicant or licensee of the right to appeal such decision to a court of competent jurisdiction.
(G) (1) When a decision to deny, suspend or revoke a license becomes final, the applicant or licensee (aggrieved party) whose application for a license has been denied, or whose licenses has been suspended or revoked, shall have the right to appeal such action to a court of competent jurisdiction within 15 working days of the date of the adverse decision becomes final. Until the time for an appeal has passed, any temporary license issued to the aggrieved party under this chapter shall remain in effect throughout the administrative proceedings described in this section. Upon the filing of any court action to appeal, challenge, restrain or otherwise enjoin the enforcement of the denial, suspension or revocation, the Director shall immediately issue the aggrieved a provisional license and shall file the record of the administrative proceeding with the reviewing court within ten business days after he or she receives notice of said action.
(2) The provisional license shall allow the aggrieved party to continue operation of the adult entertainment establishment or to continue employment as an adult entertainment employee, as the case may be, and will expire upon the court’s entry of a judgment on the merits of the aggrieved party’s action to appeal, challenge, restrain or otherwise enjoin the enforcement of the Director’s decision.
(Ord. 23-2011, passed 11-21-2011)