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§ 119.09 FEES.
   (A)   An applicant for a license must pay to the city the investigation fee specified in the Ordinance Establishing Fees and Charges, adopted pursuant to § 30.11 of this code, as that ordinance may be amended from time to time. This fee will be for the purpose of conducting a preliminary background and financial investigation of the applicant. If the city believes that the public interest so warrants, it may require a similar investigation at the time of renewal of a license. If an investigation is ordered at the time of license renewal, the applicant must pay the fee specified above, except that the fee will be the smaller of the stated dollar amount or the actual cost of the investigation. There will be no refund of the investigation fee after the investigation has begun.
   (B)   The annual fees for a license are set forth in the Ordinance Establishing Fees and Charges, adopted pursuant to § 30.11 of this code, as that ordinance may be amended from time to time.
   (C)   Each license expires on December 31 of the year in which it is issued. Fees for licenses issued during the license year will be prorated according to the number of months remaining in the year. For this purpose an unexpired fraction of a month will be counted as a whole month having elapsed.
   (D)   No refund of a fee will be made except as authorized by ordinance.
§ 119.10 GRANTING OF LICENSES.
   (A)   No license may be issued until the Police Department, or the county Sheriff, if the city has no Police Department, has conducted an investigation of the representations set forth in the application, the applicant's moral character, and the applicant's financial status. All applicants must cooperate with this investigation.
   (B)   No license, except for a renewed license, may be issued for a sexually oriented business until the Council has held a public hearing. Notice of the hearing must be made in the same manner as that specified in Chapter 151 of this code, for a zoning ordinance amendment affecting district boundaries. The Council must grant the license unless the applicant or the location does not meet the requirements of the city code, the application was incomplete, or the application contained false information or a material omission. If the application is denied, the city must notify the applicant with the reason(s) stated for denial. Notification must be sent certified, United States mail, return receipt requested, to the address provided on the license application. If the Council fails to act on the application within 45 days after receipt of a complete application, the application will be deemed approved. An applicant wishing to appeal the action of the City Council may seek a writ of certiorari before the Minnesota Court of Appeals.
   (C)   (1)   The City Council may issue a license before an investigation, notice and public hearing for an applicant who:
         (a)   Had a license within the previous five years for the establishment that is specified in the application and that is continuing to operate under a license;
         (b)   Wishes to resume operation of the business without sufficient time, through no fault of his or her own, to meet the normal procedural requirements;
         (c)   Had no criminal license convictions, or license suspensions or revocations during the prior licensed period; and
         (d)   Otherwise qualifies and meets the requirements for a license.
      (2)   In this situation, the City Council may immediately issue an interim license to the applicant for a period of no longer than 90 days. The applicant must then proceed through the specified requirements for an investigation, notice, and public hearing. At the public hearing the Council will decide whether the license should continue in effect or be revoked. The applicant has no greater right to continuation of the license than he or she would have had to issuance of a new license following the normal procedure without the interim license.
   (D)   A license will be issued only to the applicant and for the premises described in the application. No license may be transferred to another person or place without application in the same manner as an application for a new license. Transfer of 25% or more of the stock of a corporation or of a controlling interest of it, whichever is less, will be deemed a transfer of the license. If the licensee is a corporation that is wholly owned by another corporation, the same provisions about the transfer of a stock or a controlling interest will apply to that parent corporation, any second parent corporation that wholly owns the parent corporation, and all other similarly situated parent corporations up through the chain of ownership. Transfer of this amount of stock without prior Council approval is a ground for revocation or suspension of the license. In addition, each day the licensee operates under the license after a transfer has taken place without obtaining Council approval will be a separate violation of this chapter.
   (E)   In the case of the death of a licensee, the personal representative of a licensee may continue operation of the business for not more than 90 days after the licensee's death.
§ 119.11 CONDITIONS OF LICENSE.
   (A)   A license is subject to the conditions in this section, all other provisions of this chapter, and of other applicable regulations, ordinances or state laws.
   (B)   A licensee is responsible for the conduct of his or her place of business and the conditions of order in it. The act of an employee of the licensed premises is deemed the act of the licensee as well, and the licensee is liable for all penalties provided by this chapter equally with the employee, except criminal penalties.
   (C)   The license must be posted in a conspicuous place in the premises for which it is used.
Penalty, see § 119.99
§ 119.12 RESTRICTIONS AND REGULATIONS.
   A sexually oriented business is subject to the following restrictions and regulations:
   (A)   No owner, manager or employee may allow sexually oriented materials or entertainment to be visible or perceivable in any manner, including aurally, at any time from outside of the business.
   (B)   No owner, manager or employee may allow a person under the age of 18 to enter the business.
   (C)   No owner, manager or employee may allow a person under the age of 18 to have access to sexually oriented materials, whether by sight, purchase, touch or other means.
   (D)   No owner or manager may employ a person under the age of 18 on the licensed premises.
   (E)   No owner, manager, or employee may have been convicted of a sex crime, as identified in M.S. §§ 609.293 to 609.352, 609.746 to 609.749, 609.79 or 518B.01, as they may be amended from time to time, or related statute dealing with sexual assault, sexual conduct, harassment, obscenity, or domestic abuse within the past five years.
   (F)   No business may exceed 10,000 square feet in gross floor area.
   (G)   No owner, manager or employee may allow a patron, employee, or other person on the premises to physically contact, in public view, a specified anatomical area of himself or herself or of another person, except that a live performer may touch himself or herself.
   (H)   A live performer must remain at all times a minimum distance of ten feet from members of the audience, and must perform on a platform intended for that purpose, that must be raised at least two feet from the level of the floor on which the audience is located. No performer may solicit or accept money, a tip, or other item from a member of the audience.
   (I)   No business may have booths, stalls, partitioned portions of a room, or individual rooms, except as follows:
      (1)   Restrooms are allowed as long as they are no larger than reasonably necessary to serve the purposes of a restroom, no other activities are provided or allowed in the rooms, and there are no chairs, benches, or reclining surfaces in the rooms; and
      (2)   Storage rooms and private offices are allowed, if the storage rooms and offices are used solely for running the business and no person other than the owner, manager and employees is allowed in them.
   (J)   A licensee must not be open for business to the public:
      (1)   Between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday; and
      (2)   Between 1:00 a.m. and 12:00 noon on Sundays.
Penalty, see § 119.99
§ 119.13 SUSPENSIONS AND REVOCATIONS OF LICENSE.
   (A)   Delinquent taxes. The City Council may suspend or revoke a license issued under this chapter for operation on a premises on which real estate taxes, assessments or other financial claims of the city or of the state are due, delinquent, or unpaid, unless the non-payment is not under the control of the licensee. If an action has been commenced under M.S. Ch. 278, as it may be amended from time to time, questioning the amount or validity of taxes, the Council may on application by the licensee waive strict compliance with this provision; no waiver may be granted, however, for taxes, or a portion of them, that remain unpaid for a period exceeding one year after becoming due, unless the one-year period is extended through no fault of the licensee.
   (B)   Violations. 
      (1)   The Council may either suspend for up to 60 days or revoke a license for a violation upon a finding that the licensee or an agent or employee of the licensee has failed to comply with an applicable statute, regulation or ordinance relating to the subject matter of this chapter or violated the statutes in division (B)(2) of this section. No suspension or revocation will take effect until the licensee has been afforded an opportunity for a hearing pursuant to M.S. §§ 14.57 to 14.69, as they may be amended from time to time, with the exception of the suspension provided for in division (B)(2) of this section.
      (2)   Conviction of a sex crime, as identified in M.S. §§ 609.293 to 609.352, 609.746 to 609.749, 609.79 or 518B.01, as they may be amended from time to time, or related statute dealing with sexual assault, sexual conduct, harassment, obscenity or domestic abuse by the licensee will result in the immediate suspension pending a hearing on revocation of a license issued under this chapter.
   (C)   Prompt judicial review. Prompt and final judicial review shall be provided to any applicant or licensee when a license is denied, suspended or revoked.
§ 119.99 PENALTY.
   Except as otherwise provided by state law, a person violating a provision of this chapter is subject to the penalties established in § 10.99. A fine or sentence imposed does not affect the right of the city to suspend or revoke the license of the licensee as the Council deems appropriate.
APPENDIX I
RESOLUTION ADOPTING THE FINDINGS OF THE REPORT
OF THE ATTORNEY GENERAL'S WORKING GROUP ON THE REGULATION OF SEXUALLY ORIENTED BUSINESSES
   WHEREAS because of its small size, the city lacks the resources to investigate and research the impact sexually oriented businesses would have on the character of the city's neighborhoods; and
   WHEREAS the city intends to rely on the Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses, dated June 6, 1989, which is included as Appendix II to Chapter 119 of the Minnesota Basic Code of Ordinances, as a basis for regulating sexually oriented businesses in this city; and
   WHEREAS the members of the City Council have reviewed this Report;
   NOW THEREFORE, the City Council of this City hereby accepts the recommendations and conclusions of this Report and adopts the recommendations and conclusions by reference of the Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses, dated June 6, 1989; and by passage of this resolution implements the provisions of Minnesota Basic Code of Ordinances Chapters 119 and 153.
Signed:                                                 
      Mayor
Attest:                                                 
      City Clerk
   Note: If this resolution is being adopted only to implement the provisions of Minnesota Basic Code of Ordinances § 150.05, then the words “and by passage of this resolution implements the provisions of Minnesota Basic Code of Ordinances Chapters 119 and 153” in the last paragraph above should be deleted from the resolution.
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