(A) Suspension. The city may suspend a license for a period not to exceed 30 days following written notice and an opportunity to be heard if the city determines that a licensee or an employee of a license has:
(1) Violated or is not in compliance with this chapter;
(2) Refused to allow an inspection of the sexually oriented business premises as authorized by this chapter;
(3) Knowingly permitted unlawful gambling by any person on the sexually oriented business premises;
(B) Revocation.
(1) Intent to revoke. The city shall issue a written statement of intent to revoke a sexually oriented business license if a cause of suspension in division (A) occurs and the license has been suspended within the preceding 12 months.
(2) Basis for revocation. The city shall issue a written statement of intent to revoke a sexually oriented business license if the city determines that:
(a) A licensee gave false or misleading information to the city during the application process;
(b) A licensee or operator has knowingly allowed possession, use, or sale of controlled substances on the premises;
(c) A licensee or operator has knowingly allowed prostitution on the premises;
(d) A licensee or operator knowingly operated the sexually oriented business during a period of time when the licensee’s license was suspended;
(e) A licensee has been convicted of an offense listed in § 116.04 for which the time period required has not elapsed;
(f) 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 § 116.04, 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;
(g) A licensee or operator has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or sexual contact to occur in or on the licensed premises. The term “sexual contact” shall have the meaning as it is defined in M.S. § 609.341, Subd. 11(b), as it may be amended from time to time. This subsection shall not apply to an adult motel, unless the licensee knowingly allowed sexual activities to occur either (i) in exchange for money, or (ii) in a public place or with public view; or
(h) A licensee is delinquent in payment to the city for ad valorem taxes, local lodging tax, or other taxes or fees related to the sexually oriented business.
(3) Appeal of conviction. The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(4) Exception. Division (B)(2)(g) above does not apply to adult motels as a ground for revoking the license unless the licensee or employee knowingly allowed the act of sexual intercourse, sodomy, oral copulation, masturbation, or sexual contact to occur in a public place or within public view.
(5) Provisional license. When, after the notice and hearing procedure described in § 116.10, the city 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 revocation became effective, provided that, if the conditions of § 116.10 are met, a provisional license shall be granted pursuant to that section. If, subsequent to revocation, the city finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became effective. If the license was revoked under division (B)(2)(g), an applicant may not be granted another license until the appropriate number of years required under § 116.04 have elapsed.
(Ord. 233, passed 1-10-05)