(A) Any license issued under this section may, with notice to the holder thereof and a hearing as hereinafter provided for, be suspended, revoked or placed on probationary status by the Board of Commissioners.
(B) Causes for which a sexually oriented business license may be suspended, revoked, or placed on probationary status, shall include, but not be limited to, the following:
(1) Permitting disorderly conduct or a disorderly premise;
(2) Permitting unlawful transaction with a minor;
(3) Permitting the employment of a minor;
(4) Permitting or promoting prostitution, solicitation for the propose of prostitution or loitering for the purpose of prostitution;
(5) Permitting the sale, transfer, possession or use of any controlled substance;
(6) Conviction of any employee for any criminal offense occurring on the licensed premises, the conduct of which the owner knew or should have known of;
(7) The production, presentation, exhibition or performance of any entertainment that is deemed to be obscene;
(8) Maintenance of a nuisance in connection with the business;
(9) A violation of the City’s ordinance regarding sexually oriented activities;
(10) Any violation of any other section of this code;
(11) Non-compliance with the performance standards established herein for the conduct of an sexually oriented business;
(12) Non-compliance with any Health, Zoning, Fire, Building and/or Plumbing Codes adopted by the City;
(13) The filing of a false application or disclosure form;
(14) Permitting the on-premises sale or consumption of alcoholic beverages in any sexually oriented business that is not licensed to sell alcoholic beverages;
(15) Permitting illegal on-premises conduct by customers that results in a criminal conviction of the customer;
(1995 Code, § 5.04.090)
(16) Conviction of any owner for violation of any criminal offense occurring on the licensed premise; and/or
(17) Involvement in or permitting illegal gambling.
(C) (1) When the City Manager has probable cause to believe that a license should be suspended, revoked, or placed on probationary status for any of the causes enumerated herein, it shall be his or her duty to prefer charges against the holder of the license by filing a statement of the charges against the holder of the license with the City Clerk. The charges shall be in writing and each charge shall be clearly set out.
(2) Within 3 days after the filing of the charges, a notice of the filing of the charges and of the time of hearing thereof shall be mailed to the licensee at the address shown on the license. Absent any prior resolution or request for a continuance by the license holder, any hearing before the Board of Commissioners shall be held within 10 days after the mailing of the charges.
(3) At the hearing, the evidence shall be recorded and the introduction of any judgement of conviction in any court of competent jurisdiction of the licensee or any agent, servant, employees or independent contract employees thereof, shall be conclusive evidence that such a violation occurred. The existence of any prior judgement of conviction for the same or similar offense, under the same ownership/management as those being asserted as the basis for the current licensing hearing, may be considered as actual or constructive knowledge of the existence of the engagement in illegal conduct on the licensed premises.
(4) The license holder shall have the right to be represented by Counsel and is permitted to call witnesses and have subpoenas issued for their attendance and to present evidence, make motions and arguments in defense of the charges.
(5) The burden of proof in a hearing involving the possible suspension, revocation, or placing on probationary status of a license issued under this Chapter, shall be “by a preponderance of the evidence,” regardless of the fact that some of the criteria for suspension or revocation refer to acts that may be criminal in nature and that thus would involve a higher standard of proof in another context. The Board of Commissioners may take administrative notice of any conviction of a crime or civil infraction pertinent to such proceedings.
(6) Any act or omission by an entertainer, dancer, employee and/or patron constituting a violation of this section shall be presumed to be the act or omission of the owner or operator for [the] purpose[s] of determining whether the owner’s or operator’s license shall be revoked or suspended; proof by the licensee that it took reasonable measures to prevent the violations or that the particular violation was entirely unprecedented in the establishment and that the licensee took prompt corrective action and has now established procedures to avoid such actions in the future may be considered in rebuttal to that presumption.
(7) The Board of Commissioners shall render their decision after deliberation, upon conviction of the hearing. Upon a finding that the license holder has violated any of the provisions herein which could result in the suspension or revocation of the license, the Board of Commissioners may suspend, revoke or place on probationary status, the license issued under this chapter and all business activity at that location shall cease immediately for the period of suspension or revocation. The action and decision of the Board of Commissioners on the charges shall be reduced to writing and recorded in the minute book.
(1995 Code, § 5.04.100)
(8) Any aggrieved party to a decision of the Board of Commissioners may appeal such decision to the Circuit Court within the time frame as provided by law.
(D) (1) Renewal of any sexually oriented business license during a period when charges against same are pending for a hearing before the Board of Commissioners for revocation thereof shall not constitute a waiver of the charges.
(2) No transfer of any sexually oriented business shall be permitted so long as charges against same are pending for a hearing before the Board of Commissioners.
(3) In the event any sexually oriented business license is surrendered by the license holder pending charges against said license and prior to any hearing, or is revoked after hearing, no new license certificate shall issue to any person when, in the discretion of the City’s License Inspector, same is attempted for the sole purpose of allowing the previously surrendered or revoked license holder, or the holder of a license surrendered in lieu of revocation, to operate a business under a new sexually oriented business license and merely in the name of another person, the same constituting a “sham” application.
(1995 Code, § 5.04.110)