(A) License required.
(1) All sexually oriented businesses to be operated within the city shall first obtain a valid license under the provisions of this chapter.
(2) A license shall only be issued for sexually oriented businesses that fulfill the locational and zoning requirements of this chapter.
(3) A business is not exempt from regulation under this chapter because it holds a license or permit under the Alcoholic Beverage Code authorizing the sale or service of alcoholic beverages.
(B) License display. A license issued under this chapter shall be displayed at all times in an open and conspicuous place on the premises of the sexually oriented business for which it was issued.
(C) License application.
(1) Any person desiring a license shall file a written application with the City Secretary, on a form provided by the City Secretary. The application shall set forth the following:
(a) The name of the applicant and whether the applicant is an individual, general partnership, limited partnership, corporation or other entity;
(b) The name under which the sexually oriented business is to be operated and a general description of the services or products to be provided;
(c) The address and legal description of the parcel of land on which the sexually oriented business is to be located;
(d) The name, resident address and telephone number of the manager or other individual to be principals in charge of the operation of the sexually oriented business;
(e) A sworn declaration that the information contained in the application is true and correct; and
(f) If the applicant is an individual, the application shall be signed and sworn to by the applicant. If the applicant is a partnership, the application shall be signed and sworn to by all of the partners thereof. If the applicant is a corporation or other entity, the application shall be signed and sworn by the President of the corporation or entity.
(2) In addition, the application shall be accompanied by the following:
(a) Payment of the license fee, as provided in this chapter, and any fees required by the Zoning Chapter;
(b) A certified copy of the Assumed Name Certificate filed in compliance with the Assumed Business or Professional Name Act (Tex. Rev. Civ. Stat. Business and Commerce Code, Ord. 36), if the applicant is to operate the sexually oriented business under the assumed name;
(c) If the applicant is a state corporation, a certified copy of the articles of incorporation, together with all amendments thereto;
(d) If the applicant is a foreign corporation, a certified copy of the certificate of authority to transact business in the state, together with all amendments thereto;
(e) If the applicant is a foreign or limited partnership, a certified copy of the certificate of limited partnership, together with all amendments thereto, filed in the Office of the Secretary of State;
(f) A complete list of persons employed by the sexually oriented business, including their age, date of birth, and driver's license number. This list shall be updated monthly by a verified report to the City Secretary, listing all of the above information for any employees hired during the previous month; and
(g) A detailed development plan which describes the dimensions and location of the sexually oriented business and clearly shows it to be in compliance with the locational requirements of this chapter and with the Zoning Ordinance.
(D) License investigation and issuance.
(1) Upon receiving an application for a license, the City Secretary shall conduct an investigation to determine whether the requirements of this chapter have been satisfied and if the application complies with the zoning, locational and sign requirements as set forth in this chapter. The City Secretary shall deny the application for a license if any requirement of this chapter is not satisfied.
(2) The City Secretary shall deny the application for a license if one or more of the following is determined to be true:
(a) An applicant is under 18 years of age;
(b) An applicant or an applicant's spouse is overdue in payment to the city of taxes, fees, fines or penalties assessed against or imposed upon the applicant or the applicant's spouse in relation to the sexually oriented business;
(c) An applicant has failed to provide information reasonably necessary for issuance of the license or has falsely answered a question or request for information on the application form;
(d) An applicant or an applicant's spouse has been convicted of a violation of a provision of this chapter, other than the offense of operating a sexually oriented business without a license, within two years immediately preceding the application; the fact that a conviction is being appealed shall have no effect;
(e) The license fee required by this chapter has not been paid;
(f) An applicant has been employed in a sexually oriented business in a managerial capacity within the preceding 12 months and has demonstrated an inability to operate or manage a sexually oriented business premises in a peaceful and law-abiding manner, thus necessitating action by law enforcement officers; and/or
(g) An applicant or an applicant's spouse has been convicted of a crime:
1. Involving:
a. Any of the following offenses as described in the Tex. Penal Code, Ch. 43; prostitution; promotion of prostitution; aggravated promotion of prostitution; obscenity; sale, distribution or display of harmful material to minors; sexual performance by a child; possession of child pornography;
b. Any of the following offenses as described in Tex. Penal Code, Ch. 21; public lewdness; indecent exposure; indecency with a child;
c. Sexual assault or aggravated sexual assault as described in Tex. Penal Code, Ch. 22;
d. Incest, solicitation of a child, or harboring a runaway child as described in the Tex. Penal Code, Ch. 25; or
e. Criminal attempt, conspiracy or solicitation to commit any of the foregoing offenses.
2. For which:
a. Less than two years have elapsed since the date of conviction or the date of release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a misdemeanor offense;
b. Less than five years have elapsed since the date of conviction or the date of release from confinement for the conviction, whichever is the later date, if the conviction is of a felony offense; or
c. Less than five years have elapsed since the date of the last conviction or the date of release from confinement for the last conviction, whichever is the later date, if the convictions are of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any 24-month period.
(3) The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or applicant's spouse.
(4) An applicant who has been convicted or whose spouse has been convicted of an offense listed in division (D)(2)(g) above may qualify for a sexually oriented business license only when the time required by that division has elapsed.
(5) The license, if granted, shall state on its face the name of the person or persons to whom it is granted, the expiration date and the address of the sexually oriented business. The license shall be posted in a conspicuous place at or near the entrance to the sexually oriented business so that it may be easily read at any time.
(6) The City Secretary shall notify each applicant of his or her eligibility for a license within 20 days of receipt of the completed application. If the applicant complies with the provisions of this chapter, then the City Secretary shall issue a license. In the event that an applicant fails to comply with this chapter, then the applicant shall be so notified and be entitled to a hearing held pursuant to the provisions of this chapter.
(E) License fee. To defray the cost of processing the license application, the applicant shall pay a fee in the amount of $100. No portion of any fee collected under this section shall be returned once the application process has begun. To defray the cost of processing renewal license application, the applicant shall pay a fee in the amount of $50.
(F) License transfer. A license shall not be transferred to another, nor shall a license holder operate a sexually oriented business under the authority of a license at any place other than the address designated in the application.
(G) License expiration and renewal. Each license shall be effective when issued and shall be renewable annually upon filing an application as provided for in this chapter. All licenses are renewable on the anniversary date of each year succeeding the year in which they are first issued.
(H) License suspension and revocation.
(1) The Mayor, or the Mayor's designee, is granted, and shall have the power to suspend any and all licenses authorized by this chapter, if he or she determines that a licensee or employee of a license has:
(a) Violated or is not in compliance with any provision of this chapter;
(b) Engaged in excessive use of alcoholic beverages while on the sexually oriented business premises;
(c) Refused to allow an inspection of the sexually oriented business premises as authorized by this chapter;
(d) Knowingly permitted gambling by any person on the sexually oriented business premises; or
(e) Demonstrated inability to operate or manage a sexually oriented business in a peaceful and law-abiding manner thus necessitating action by law enforcement officers.
(2) The Mayor, or the Mayor's designee, is granted, and shall have the power to revoke any and all licenses authorized by this chapter, if he or she determines that:
(a) A licensee gave false or misleading information in the material submitted to the City Secretary during the application process;
(b) A licensee or an employee has knowingly allowed possession, use or sale of controlled substances on the premises;
(c) A licensee or an employee knowingly operated the sexually oriented business during a period of time when the licensee's license was suspended;
(d) A licensee has been convicted of an offense, listed in an earlier section of this chapter, for which the time period required in that section has not elapsed;
(e) On two or more occasions within a 12-month period, a person or persons committed an offense occurring in or on the licensed premises of a crime listed in an earlier section of this chapter, for which a conviction has been obtained, and the person or persons were employees of the sexually oriented business at the time the offenses were committed;
(f) A licensee or an employee has knowingly allowed any specified sexual activities to occur in or on the sexually oriented business premises; or
(g) A licensee is delinquent in payment to the city for taxes, fees, fines or penalties.
(3) Additionally, the Mayor, or the Mayor's designee, shall revoke a license if a cause of suspension as listed in division (H)(1) above occurs and the license has been suspended within the preceding 12 months.
(Ord. passed 5-4-2004)