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§ 119.01 PURPOSE.
   The purpose of this chapter is to prescribe licensing requirements for sexually oriented businesses to protect the public health, safety, and welfare and to prevent criminal activity and the spread of sexually- transmitted diseases. This chapter is intended to supersede the provisions of M.S. § 617.242, as it may be amended from time to time, and render M.S. § 617.242 inapplicable as authorized by the statute.
§ 119.02 FINDINGS.
   The City Council makes the following findings regarding the effect sexually oriented businesses have on the character of the city's neighborhoods. In making these findings, the City Council accepts the recommendations and conclusions of the Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses dated June 6, 1989, a copy of which is referenced and included in Appendix II of this chapter. This chapter shall have no force and effect until the City Council accepts these recommendations by resolution of a majority of its members, using the model resolution contained in Appendix I of this chapter.
   (A)   Sexually oriented businesses can contribute to an increase in criminal activity in the area in which such businesses are located, increasing the demands on city crime-prevention programs and law enforcement services.
   (B)   Sexually oriented businesses can be used as fronts for prostitution and other criminal activity. The experience of other cities indicates that proper management and operation of such businesses can minimize this risk.
   (C)   Sexually oriented businesses can increase the risk of exposure to communicable diseases, including Acquired Immune Deficiency Syndrome (AIDS), for which there is currently no cure. Experiences of other cities indicate that such businesses can facilitate the spread of communicable diseases by virtue of the design and use of the premises, endangering not only the patrons of such establishments but also the general public.
   (D)   Sexually oriented businesses can cause or contribute to public health problems by the presence of live adult entertainment in conjunction with food and/or drink on the same premises.
   (E)   A licensing and regulatory scheme as prescribed in this chapter can facilitate the enforcement of the city's “anti-blight” regulations, as set forth in Chapter 153 of this code, and can aid in monitoring sexually oriented businesses for adverse secondary effects on the community.
   (F)   The risk of criminal activity and/or public health problems can be minimized through a licensing and regulatory scheme as prescribed in this chapter.
§ 119.03 DEFINITIONS.
   The following words and terms have the following meanings when used in this chapter.
   SEXUALLY ORIENTED BUSINESS. Shall include the following:
      (1)   A business that meets any of the following criteria, measured on a daily, weekly, monthly, or yearly basis:
         (a)   Has more than 25% of its inventory, stock-in-trade, or publicly displayed merchandise in sexually oriented materials;
         (b)   Devotes more than 25% of its floor area (not including storerooms, stock areas, bathrooms, basements, or any portion of the business not open to the public) to sexually oriented materials; or
         (c)   Derives more than 25% of its gross revenues from sexually oriented materials; or
      (2)   A business that engages for any length of time in a sexually oriented use as defined in this section or any other use that has an emphasis on specified sexual activities or specified anatomical areas.
   SEXUALLY ORIENTED MATERIALS. Visual, printed, or aural materials, and other objects or devices, that:
      (1)   Contain, depict, simulate or describe specified sexual activities or specified anatomical areas; or
      (2)   Are marketed for use in conjunction with, or are primarily used only with or during specified sexual activities; or
      (3)   Are designed for sexual stimulation.
   SEXUALLY ORIENTED USE. Any of the following activities and businesses, even if the activity exists for only a short-time:
      (1)   ADULT BODY PAINTING STUDIO. An establishment or business that provides the service of applying paint, ink, or other substance, whether transparent or non-transparent, to the body of a patron when the person is nude.
      (2)   ADULT BOOKSTORE. An establishment or business used for the barter, rental, or sale of items consisting of printed matter, pictures, slides, records, audiotape, videotape, movies, or motion picture film if it meets the criteria established in the definition of “sexually oriented business,” as defined in this section.
      (3)   ADULT CABARET. A business or establishment that provides dancing or other live entertainment distinguished or characterized by an emphasis on:
         (a)   The depiction of nudity, specified sexual activities or specified anatomical areas; or
         (b)   The presentation, display, or depiction of matter that seeks to evoke, arouse, or excite sexual or erotic feelings or desire.
      (4)   ADULT COMPANIONSHIP ESTABLISHMENT. A business or establishment that provides the service of engaging in or listening to conversation, talk, or discussion distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (5)   ADULT CONVERSATION/RAP PARLOR. A business or establishment that provides the services of engaging in or listening to conversation, talk, or discussion distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (6)   ADULT HEALTH/SPORT CLUB. A health/sport club that is distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (7)   ADULT HOTEL OR MOTEL. A hotel or motel that presents material distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas.
      (8)   ADULT MASSAGE PARLOR/HEALTH CLUB. A massage parlor or health club that provides massage services distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (9)   ADULT MINI-MOTION PICTURE THEATER. A business or establishment with a capacity of less than 50 persons that, as a prevailing practice, presents on-premises viewing of movies, motion pictures, or other material distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (10)   ADULT MODELING STUDIO. A business or establishment that provides live models who, with the intent of providing sexual stimulation or sexual gratification, engage in specified sexual activities or display specified anatomical areas while being observed, painted, painted upon, sketched, drawn, sculptured, photographed, or otherwise depicted.
      (11)   ADULT MOTION PICTURE ARCADE. Any place to which the public is permitted or invited where coin or slug-operated or electronically, electrically, or mechanically controlled or operated still or motion picture machines, projectors, or other image-producing devices are used to show images to five or fewer persons per machine at any one time, and where the images so displayed are distinguished or characterized by an emphasis on depicting or describing specified sexual activities or specified anatomical areas.
      (12)   ADULT MOTION PICTURE THEATER. A motion picture theater with a capacity of 50 or more persons that, as a prevailing practice, presents material distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas for observation by patrons.
      (13)   ADULT NOVELTY BUSINESS. An establishment or business that has a variety of items for sale if it meets the criteria established in division (1) of the definition of “sexually oriented business” defined in this section.
      (14)   ADULT SAUNA. A sauna that excludes minors by reason of age, and that provides a steam bath or heat bathing room used for the purpose of bathing, relaxation, or reducing, if the service provided by the sauna is distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
      (15)   ADULT STEAM ROOM/BATHHOUSE FACILITY. A building or portion of a building used for providing a steam bath or heat bathing room used for the purpose of pleasure, bathing, relaxation, or reducing, if the building or portion of a building restricts minors by reason of age and if the service provided by the steam room/bathhouse facility is distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas.
   SPECIFIED ANATOMICAL AREAS. Shall include the following:
      (1)   Less than completely and opaquely covered human genitals, pubic area, buttocks, anus, or female breast below a point immediately above the top of the areola; and
      (2)   Human male genitals in a state of sexual arousal, whether or not completely and opaquely covered.
   SPECIFIED SEXUAL ACTIVITIES. Shall include the following:
      (1)   Actual or simulated: sexual intercourse; oral copulation; anal intercourse; oral-anal copulation; bestiality; direct physical stimulation of unclothed genitals; flagellation or torture in the context of a sexual relationship; the use of excretory functions in the context of a sexual relationship; anilingus; coprophagy; coprophilia; cunnilingus; fellatio; necrophilia; pedophilia; piquerism or zooerastia;
      (2)   Clearly depicted human genitals in the state of sexual stimulation, arousal or tumescence;
      (3)   Use of human or animal ejaculation, sodomy, oral copulation, coitus or masturbation;
      (4)   Fondling or touching of nude human genitals, pubic regions, buttocks, or female breasts;
      (5)   Situations involving a person or persons, any of whom are nude, who are clad in undergarments or in sexually revealing costumes and engaged in the flagellation, torture, fettering, binding or other physical restraint of any person;
      (6)   Erotic or lewd touching, fondling or other sexually oriented contact with an animal by a human being; or
      (7)   Human excretion, urination, menstruation or vaginal or anal irrigation.
§ 119.04 EXCEPTIONS.
   This chapter does not regulate the following:
   (A)   Material with significant literary content or social commentary;
   (B)   A business where sexually oriented materials are sold, bartered, distributed, leased, furnished, or otherwise provided for off-site use or entertainment, if the sexually oriented material on each item is blocked from view by an opaque cover as required under M.S. § 617.293, as it may be amended from time to time, and each item is in an area accessible only by an employee of the business;
   (C)   A person or organization exempted under M.S. § 617.295;
   (D)   Activity regulated under M.S. § 617.202;
   (E)   Displaying works of art showing specified anatomical areas, so long as no sexually oriented materials are for sale, and the business does not have a liquor license; and
   (F)   Movies rated G, PG, PG-13, NC-17 or R.
§ 119.05 LICENSE REQUIRED.
   No person may own or operate a sexually oriented business within the city unless the person is currently licensed under this chapter.
Penalty, see § 119.99
§ 119.06 PERSONS INELIGIBLE.
   No license may be issued to a person who:
   (A)   Is not a citizen of the United States or a resident alien;
   (B)   Is a minor at the time the application is filed;
   (C)   Has been convicted of a crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of the owner, operator or manager of a sexually oriented business under M.S. § 364.03, Subd. 3, as it may be amended from time to time, or a person not of good moral character and repute;
   (D)   Holds a liquor license under Minnesota Basic Code of Ordinances Chapter 112.
   (E)   In the judgment of the licensing authority, is not the real party in interest or beneficial owner of the business operated under the license;
   (F)   Has had a license for a sexually oriented business or similar business revoked anywhere within five years of the license application; or
Penalty, see § 119.99
§ 119.07 PLACES INELIGIBLE.
   No license may be issued for:
   (A)   A place or a business ineligible for a license under city ordinance or state law;
   (B)   Operation in a zoning district where the business is not allowed pursuant to Chapter 153 of this code;
   (C)   A place or business that is currently licensed as a tattoo establishment, pawnshop, massage business or establishment that sells alcoholic beverages; or
   (D)   Operation on a premises on which taxes, assessments or other financial claims of the city or other government agency are delinquent and unpaid, unless the non-payment is not under the control of the applicant.
Penalty, see § 119.99
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