(A) General requirements. No person shall own or operate a sexually oriented business establishment as defined hereinabove without a sexually oriented business license. No person shall own or operate an unlicensed sexually oriented business establishment.
(B) Application process. The owner of a sexually oriented business establishment shall apply for a license with the City Clerk. 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, date of birth (including proof of date of birth through a valid birth certificate, driver’s license or other picture identification document issued by a governmental agency) 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 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 sexually oriented business 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 a sexually oriented business establishment is located or to be located on the real property upon the issuance of the license. The applicant also shall 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 shall be included in this division (B)(4);
(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 or she 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 or she has received a copy of this chapter and that he or she willfully undertakes on behalf of the applicant the duty 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 years for the offenses listed in this chapter. Any person who is on parole shall submit with the application the terms of the 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; and
(14) Applicant shall file a floor plan exhibiting all entrances, exits, stairways and all rooms in the building and their intended use for purposes of providing emergency services.
(C) Supplemental information. The information required by division (B) above shall be at all times current even after the granting of the sexually oriented business license. It shall be the responsibility of the owner or other person designated in the licensee’s application to notify the City Clerk in writing no later than 48 hours after the effective date of any change, alteration or modification in any information contained in the application.
(D) Review process. The City Clerk or the city’s designated agent shall inspect the premises within 20 days after the application has been submitted. The City Clerk shall issue a license if all restrictions, requirements, conditions and all applicable requirements of this chapter have been met pursuant to the time limits set forth in this chapter. The City Clerk shall grant or deny a license application within 25 days of the filing of such application.
(E) Prohibitions. No sexually oriented business establishment license shall be issued if the applicant or any operator, officer, director, partner or shareholder:
(1) Is less than 18 years of age;
(2) Has been convicted of any of the following offenses within the last five years:
(a) Gambling, conspiracy to promote gambling, or possession of gambling records or gambling devices;
(b) Prostitution, promoting prost- itution, 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 transaction 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 a sexually oriented business 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;
(4) The license application fee has not been paid;
(5) An applicant has failed to fully and completely and/or falsely answer(s) a question or request for information on the license form;
(6) The proposed sexually oriented business is located in a zoning district other than a district in which sexually oriented businesses are allowed to operate under the ordinance adopting the zoning regulations of the city and the county, as amended from time to time, or is not in compliance with the location restrictions established for sexually oriented businesses in the appropriate zoning district; and
(7) If the business is a corporation or other entity which is required to be registered in the office of the Secretary of State, the representatives of the business entity must show documentary evidence that said business entity is authorized to do business in the Commonwealth.
(F) Notice. If the City Clerk’s inspection reveals a failure to comply with any provisions of this code, the City Clerk 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 City Clerk’s decision or finding.
(G) No transfer of license.
(1) The sexually oriented business establishment license issued under this section does not authorize the operation of a sexually oriented business establishment at any place other than the address designated in the application and such license is not transferable.
(2) 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 license premises. The application for or the granting of a sexually oriented business license is deemed to permit periodic inspections by law enforcement officers, or other persons designated or authorized by the City Clerk, 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 a sexually oriented business 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.
(l) Concurrent with the submission of a license application, the applicant shall pay to the city a nonrefundable fee of $250.
(2) Every sexually oriented business shall pay to the city an annual license fee of $2,500, which fee is due and payable upon the issuance of a license and/or before July 1 of each year thereafter.
(3) This fee is in lieu of the regular occupational license fee charged to businesses.
(4) When the license is first issued, the annual fee may be prorated at the rate of $208.33 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 30 days prior to the expiration date. If a licensee fails to apply for a renewal of the license prior to June 1, there shall be a grace period wherein no penalty shall be assessed against the applicant as long as the application is submitted by July 15. If a licensee fails to submit an application by July 15, there shall be a 10% or $500 penalty added to the application fee. If a licensee and/or applicant fails to submit a renewal application within 90 days of the expiration of the prior license, the license will be considered to have lapsed and the provisions of this chapter relating to suspension and, if the facts and circumstances warrant, revocation shall apply.
(K) Suspension. A written intention to suspend a license for a period not to exceed 30 days shall be issued if it is determined that the applicant, owner, operator, or an employee thereof has violated any provision of this chapter, has been on the sexually oriented 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.
(1) The City Clerk shall issue a written statement of intent to revoke a sexually oriented business license if a cause of suspension in division (K) above occurs and the license has been suspended within the preceding 12 months.
(2) The City Clerk shall issue a written statement of intent to revoke a sexually oriented business license if he or she determines:
(a) An applicant knowingly gave false or misleading information in the initial license or any subsequent license application;
(b) An applicant, owner, operator or employee has knowingly allowed possession, use or sale of controlled substances on the premises;
(c) An applicant, owner, operator or employee has knowingly allowed prostitution or solicitation for prostitution on the premises;
(d) An applicant, owner, operator or employee has knowingly operated the sexually oriented business during a period of time when the licensee’s license was suspended; or
(e) A licensee knowingly allowed any act of sexual intercourse, sodomy, oral copulation or other sexual activities or specified sex act to occur in or on the licensed premises. This division (L)(2)(e) will not apply to an adult motel, unless the licensee knowingly allowed the aforementioned sexual activities to occur either: in exchange for any consideration; or in a public place or within public view.
(3) The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(4) When, after the notice and hearing procedure described above, the City Clerk revokes a license, the revocation shall continue for one year and the licensee shall not be issued a sexually oriented business license for one year from the date the revocation becomes effective, provided that, if the conditions of division (M)(2) are met, a provisional license will be granted pursuant to that division. If subsequent to revocation, the enforcement officer finds that the basis for revocation found in divisions (L)(2)(a) or (L)(2)(d) have been corrected or abated, the applicant shall be granted a license if at least 90 days have elapsed since the date the revocation became effective.
(M) Hearing for denial, suspension or revocation; appeal.
(1) If the City Clerk determines that facts exist to deny, suspend or revoke a sexually oriented business license, he or she shall notify the applicant or licensee in writing of the intent to deny, suspend or revoke, including the grounds therefor.
(a) The notice shall be sent to the applicant or licensee by personal delivery or certified mail at the address specified in the application. Within five business days of receipt of such notice, the applicant or licensee may provide to the City Clerk, 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 City Clerk, the notice shall be a final administrative act of denial, suspension, or revocation. If a timely response is received by the City Clerk, he or she shall within three business days of the receipt of the response notify respondent of the hearing date on respondent’s denial, suspension, or revocation proceeding.
(b) Within ten business days of the receipt of respondent’s written response, the City Clerk shall conduct a hearing at which respondent shall have the opportunity to be represented by counsel and present evidence and witnesses on his or her or its behalf. If a response is not received by the City Clerk in the time stated or, if after the hearing, the City Clerk finds that grounds as specified in this chapter exist for denial, suspension, or revocation, then such denial suspension, or revocation shall become final five days after the City Clerk sends, by certified mail, written notice that the license has been denied, suspended, or revoked. Such notice shall include a statement advising the applicant or licensee of the right to appeal such decision to a court of competent jurisdiction.
(c) If the City Clerk finds that no grounds exist for denial, suspension, or revocation of a license, then within five days after the hearing, the City Clerk shall withdraw the intent to deny, suspend or revoke the license, and shall so notify the respondent, in writing, by certified mail of such action and shall contemporaneously issue the license.
(2) When a decision to deny, suspend or revoke a license becomes final, the applicant or licensee (aggrieved party) whose application for a license has been denied, or whose license has been suspended or revoked, shall have the right to appeal such action to a court of competent jurisdiction.
(Ord. 782, passed 8-10-2023) Penalty, see § 118.99