A. The city manager shall act on the application for an adult-entertainment business permit within sixty days (60) days after the date of filing of a completed application, and shall issue a regular permit if all requirements for an adult-entertainment business described in this chapter are met, unless the city manager finds:
1. That the operation as proposed by the applicant, if permitted, will not comply with all applicable laws, including, but not limited to, the Title 17 of this code and the locational requirements set forth therein, and the building, health, housing and fire codes of the city of Sacramento.
2. That the applicant or any operator has been convicted of any of the following offenses or convicted of an offense without the State of California that would have constituted any of the following offenses if committed within the State of California: Sections 243.4, 261, 266a, 266b, 266d, 266e, 266f, 266g, 266h, 266i, 266j, 267, 288, 314.1, 314.2, 315, 316, 318, 653.22 or subdivisions (a), (b) and (d) of Section 647 of the California Penal Code; any offense requiring registration under provisions of either Section 290 of the California Penal Code or Section 11590 of the California Health and Safety Code; or any felony offense involving the possession, possession for sale, sale, transportation, furnishing, giving away, of a controlled substance specified in Section 11054, 11055, 11056,11057 or 11058 of the California Health and Safety Code, or as those sections may thereafter be amended or renumbered; provided, however, that the city manager shall issue a permit to any person convicted of any of the crimes described above if (a) the person is otherwise qualified for a permit; and (b) the longer of the following time periods has passed:
i. Five years from date of the conviction; or
ii. Five years from release from confinement; or
iii. Five years from formal release from probation period; or
iv. Five years from formal release from parole.
3. That the applicant has knowingly made a material misrepresentation in the application;
4. That the applicant or any operator has had a permit for an adult-entertainment business or adult-related establishment denied or revoked for cause by this city or any other city or county within the last five years;
5. That the applicant or operator is not at least eighteen (18) years of age;
6. That the applicant has not paid the required fee to the department of finance.
B. Notice of Decision. Not later than five days after the date of the decision of the city manager, notice of the decision shall be sent to the applicant postage prepaid at the address shown in the application and shall state whether the decision of the city manager was to grant or deny the permit.
C. Upon issuance of a temporary permit or a regular permit, or if the city manager neither grants nor denies the regular permit within sixty (60) days after the date a complete application is filed, the applicant may begin operating the adult-entertainment business for which the permit was sought, subject to strict compliance with the locational requirements of Title 17 of this code and the development and operational standards and requirements set forth in this chapter. Notwithstanding that applicant begins operating the adult-entertainment business under this section prior to the city manager's decision, the city manager may subsequently deny the application for a permit. In the event of a denial, the applicant shall cease operating the adult-entertainment business within ten (10) days unless the applicant timely appeals the decision denying the permit pursuant to Section 5.06.120. If a timely notice of appeal is filed, the applicant may continue operating the adult-entertainment business while the appeal is pending.