(A) General requirements. No person shall own an adult entertainment establishment as defined in § 116.02 of this chapter without an adult entertainment establishment license. No person shall operate an unlicensed adult entertainment establishment.
(B) Application process. The owner of an adult entertainment establishment shall apply for a license with the Code Enforcement Officer. The applicant shall complete an application on the form prescribed by the city and shall submit the following information:
(1) The name and business address of the establishment, including any assumed or fictitious names under which the establishment is or will be operated.
(2) The name, including any assumed or fictitious name or alias, business address, social security or tax identification number of the owner and every officer, partner, director, or person performing a similar function to an officer, partner or director and the names and addresses of any individual who owns ten percent (10%) or more of the partnership, corporation, limited liability corporation, or company, or limited liability partnership that is the owner of the establishment.
(3) In the event the owner of the adult entertainment establishment is not the owner of record of the real property on which the establishment is located or to be located, the application shall include a notarized statement from the owner of record of the real property acknowledging that an adult entertainment establishment is located or to be located on the real property upon the issuance of the license. The applicant shall also furnish the name and address of the owner of record of the real property and a copy of the lease or rental agreement or memorandum thereof.
(4) The name, including any assumed or fictitious name or alias, business address, date of birth, social security number, and photograph of all persons engaged in the day-to-day management of the licensed premises. All persons who at any time shall be responsible for attending the entrance of the establishment for the purpose of compliance with this chapter and shall be included in this subsection.
(5) The name, including any assumed or fictitious name or alias, business address, date of birth, social security number, and photograph of the individual designated by the applicant to undertake to keep the applicant, if licensed, at all times in compliance with the restrictions, requirements, and conditions set forth in this chapter together with the written statement of the individual stating that he has received a copy of this chapter and that he willfully undertakes on behalf of the applicant to comply therewith.
(6) The name, including any assumed or fictitious name or alias, business address, date of birth, social security number, and photograph of the individual designated by the applicant to be responsible for keeping current the information required hereunder at all times together with a written statement stating that he has received a copy of this chapter and that he willfully undertakes on behalf of the applicant to comply with the requirements therein pertaining to the disclosure of information.
(7) The name and address of any rental agent of the property on which the establishment is located.
(8) The nature of the activity or activities to be engaged in at such location.
(9) A criminal record report for the applicants, owners, officers, directors, partners, employees, or other persons whose names are required pursuant to this section together with a list of all criminal convictions of such persons within the last five (5) years for the offenses listed below in this chapter. Any person who is on parole shall submit with the application the terms of said parole.
(10) The name and mailing address of the owner to whom notice will be given in case of violations or other matters affecting the license hereunder.
(11) Applicant must submit to fingerprinting by the city Police Department.
(12) Applicant cannot owe any fees or taxes of any kind or nature to the city.
(13) Applicant's premises must meet all established, zoning, fire, building, and/or plumbing codes and cannot provide direct interior access to residential living quarters.
(14) Applicant shall file a floor plan exhibiting all entrances, exists, stairways, and all rooms in the building and their intended uses for purposes of providing emergency services.
(C) Supplemental information. The information required by subsection (B) of this section shall be at all times current even after the granting of the adult entertainment license. It shall be the responsibility of the owner or other person designated in the license application to notify the Code Enforcement Officer, in writing, no later than forty-eight (48) hours after the effective date of any change, alteration, or modification in any information contained in the application.
(D) Review process. The Code Enforcement Officer or his designee shall inspect the premises within fifteen (15) days after the application has been submitted. The Code Enforcement Officer shall issue a license if all restrictions, requirements, conditions, and all applicable requirements of this chapter and other applicable laws have been met. The Code Enforcement Officer shall grant or deny a license application within twenty (20) days of the filing of such application.
(E) Prohibitions. No adult entertainment establishment license shall be issued if the applicant or any operator, officer, director, partner, or shareholder:
(1) Is less than eighteen (18) years of age;
(2) Has been convicted of any of the following offenses within the last five (5) years:
(a) Gambling, conspiracy to promote gambling, or possession of gambling records, or gambling devices;
(b) Prostitution, promoting prostitution, permitting prostitution, solicitation for the purpose of prostitution, or loitering for the purpose of prostitution;
(c) The sale, transfer, possession, or use of any controlled substance;
(d) Sexual offenses including rape, sodomy, sexual abuse, sexual misconduct, and indecent exposure;
(e) Distribution of obscene material to a minor, use of a minor to produce, promote, or distribute obscene material, advertising obscene materials, promoting the sale of obscenity;
(f) Unlawful transactions with a minor (as defined in KRS Chapter 530 or other similar laws) use of a minor in a sexual performance, promoting a sexual performance by a minor, or possession of or advertising matter portraying a sexual performance by a minor; or
(g) Murder, manslaughter, or felony assault (as defined in KRS Chapters 507 or 508 or similar laws)
(3) Has failed in the operation of an adult entertainment establishment to comply with any health, zoning, fire, or building code enacted or adopted by the city and has failed to correct such violation as provided in this chapter.
(F) Notice. If the Code Enforcement Officer's inspection reveals a failure to comply with any provisions of this Code, the Code Enforcement Officer shall notify the applicant, in writing, of that fact, stating what failures have been discovered, allowing a reasonable time to correct such defects and informing the applicant of the appeal procedure if the applicant does not agree with the Code Enforcement Officer's decision or finding.
(G) No transfer of license. The adult entertainment license issued under this section does not authorize the operation of an adult entertainment establishment at any place other than the address designated in the application and such license is not transferable. A transfer is deemed to occur when the business is sold, leased or subleased; when securities which constitute a controlling interest in the business are sold or otherwise exchanged; or a trust, gift, or other similar legal device is established which transfers the ownership or control of the business, except for a transfer by bequest or other operation of law upon the death of the natural person possessing the ownership or control of the business.
(H) Access to licensed premises. The application for or the granting of an adult entertainment establishment license is deemed to permit periodic inspections by law enforcement officers, or other persons designated or authorized by the Code Enforcement Officer, of all areas of any establishment requiring a license under this chapter for the purpose of verifying compliance with the terms and conditions of this chapter. It shall be unlawful for an applicant, licensee, owner or operator of an adult entertainment establishment to refuse to permit a law enforcement officer or authorized person to inspect the premises at any time during normal business hours of the establishment.
(I) Application and license fee. Concurrent with the submission of a license application, the applicant shall pay to the city a nonrefundable fee of $100.00. Every adult entertainment establishment shall pay to the city an annual license fee of $5,000.00, which fee is due and payable upon the issuance of a license and on or before July 1 of each year thereafter. When the license is first issued, the annual fee may be prorated at the rate of $416.66 per month for the remaining months of the current fiscal year, which prorated fee is due and payable upon the issuance of a license.
(J) Expiration. Each license shall expire on June 30 of each calendar year, unless earlier suspended or revoked. Application for a new license should be made at least thirty (30) days prior to the expiration date.
(K) Suspension. The Code Enforcement Officer may suspend an adult entertainment establishment license for a period not to exceed thirty (30) days if the Code Enforcement Officer determines that the applicant, owner, operator or an employee thereof has violated any provisions of this chapter, has been on the adult entertainment establishment premises while intoxicated or in a disorderly condition (consistent with the definition of disorderly conduct contained in KRS Chapter 525), has refused to allow an inspection of the premises, or has knowingly permitted any violation of state law to occur on the premises.
(L) Revocation. The Code Enforcement Officer shall revoke an adult entertainment license if he determines that:
(1) Cause for suspension under subsection (K) above occurs and the license has been suspended within the preceding twelve (12) months;
(2) An applicant knowingly gave false or misleading information in the initial license or any subsequent license application;
(3) An applicant, owner, operator or employee has knowingly allowed possession, use or sale of controlled substances on the premises;
(4) An applicant, owner, operator, or employee has knowingly allowed prostitution or solicitation for prostitution on the premises;
(5) An applicant, owner, operator, or employee has knowingly operated an adult entertainment establishment during a period of time when the establishment's license was suspended; or
(6) An applicant, owner, operator, or employee has knowingly allowed a violation specified in subsection (E) above to occur on the premises.
(M) Hearing for denial, suspension, or revocation; appeal. If the Code Enforcement Officer determines that grounds exist to deny, suspend, or revoke an adult entertainment license, he shall notify the applicant or licensee in writing of his intent to deny, suspend, or revoke, including the grounds therefore. The notice shall be sent to the applicant or licensee by certified mail at the address specified in the application. Within five (5) business days of receipt of such notice, the applicant or licensee may provide to the Code Enforcement Officer, in writing, a response which shall include a statement of reasons why the license should not be denied, suspended, or revoked, and may include a request for a hearing. If a response is not timely received by the Code Enforcement Officer, the notice shall be a final administrative act of denial, suspension, or revocation. If a timely response is received by the Code Enforcement Officer, he shall within three (3) business days of his receipt of the response either withdraw the written notice of intent to deny, suspend, or revoke by giving notice of such withdrawal to the applicant or licensee or schedule a hearing before the Code Enforcement Board and shall give notice of such hearing to the applicant or licensee. The hearing shall be informal in nature and shall be conducted within seven (7) business days of the Code Enforcement Officer's receipt of the applicant's or licensee's response. The Code Enforcement Board shall issue an oral decision at conclusion of the hearing and shall render a written decision within three (3) business days after the completion of the hearing and shall serve the applicant or licensee with a copy of the decision by certified mail. The applicant or licensee may appeal a decision of the Code Enforcement Board to the Rowan Circuit Court after receipt of the written notice of the decision. If an applicant or licensee pursues a judicial appeal of a final decision of the Code Enforcement Board, then that licensee or applicant may continue to operate or work pending the completion of judicial review.
(Ord. 01:98, passed 1-13-98)