(A) On determining that grounds for license suspension or revocation exist, the City Manager shall furnish written notice of the proposed suspension or revocation to the license holder. Such notice shall set forth the time and place of a hearing and the ground or grounds upon which the hearing is based, the pertinent sections, and a brief statement of the factual matters in support thereof. The notice shall be mailed, postage prepaid, addressed to the last known address of the license holder, or shall be delivered to the license holder personally, at least ten days prior to the hearing date. Hearings pursuant to this section shall be noticed in accordance with Cal. Government Code §§ 65091 and 65905 conducted by the City Manager or his or her designee which may include a third party hearing officer. Hearings pursuant to this section shall be conducted in accordance with procedures established by the City Manager but, at a minimum, shall include the following:
(1) All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing upon the issues and may be represented by counsel.
(2) The City Manager shall not be bound by the formal rules of evidence.
(3) Any hearing under this section may be continued for a reasonable time for the convenience of a party or a witness at the request of the license holder. Extensions of time or continuances sought by a license holder shall not be considered delay on the part of the city or constitute failure by the city to provide for prompt decisions on license suspensions or revocations.
(4) The City Manager's decision may be appealed in accordance with § 125.08.
(B) A license may be suspended or revoked based on the following causes arising from the acts or omissions of the license holder, or an employee, independent contractor, partner, director, or manager of the license holder:
(1) The building, structure, equipment, or location used by the adult business fails to comply with all provisions of these regulations and this section relating to adult businesses, including the adult business operational standards contained in § 125.05 and the zoning requirements of Chapter 155, including § 155.612, and all other applicable building, fire, electrical, plumbing, health, and zoning requirements of this code.
(2) The license holder has failed to obtain or maintain all required city licenses.
(3) The license holder has made any false, misleading, or fraudulent statement of material fact in the application for an adult business license.
(4) The license is being used to conduct an activity different from that for which it was issued.
(5) That an individual employed by, or performing in, the adult business (whether classified as an employee or independent contractor) has been convicted of two or more sex-related offenses that occurred in or on the licensed premises within a 12-month period and was employed by, or performing in, the adult business at the time the offenses were committed.
(6) That the use for which the approval was granted has ceased to exist or has been suspended for six months or more.
(7) That the transferee/new owner of an adult business or adult business license failed to comply with the requirements of this chapter.
(8) The license holder, partner, director, or manager has knowingly allowed or permitted, or has failed to make a reasonable effort to prevent the occurrence of any of the following on the premises of the adult business; or a licensee has been convicted of violating any of the following state laws on the premises of the adult business:
(a) Any act of unlawful sexual intercourse, sodomy, oral copulation, or masturbation.
(b) Use of the establishment as a place where unlawful solicitations for sexual intercourse, sodomy, oral copulation, or masturbation openly occur.
(c) Any conduct constituting a criminal offense which requires registration under Cal. Penal Code § 290.
(d) The occurrence of acts of lewdness, assignation, or prostitution, including any conduct constituting violations of the Cal. Penal Code §§ 315, 316, 318 or 647b.
(e) Any act constituting a violation of provisions relating to obscene matter or distribution of harmful matter to minors, including, but not limited to Cal. Penal Code §§ 311 through 313.4.
(f) Any act constituting a felony involving the sale, use, possession, or possession for sale of any controlled substance specified in Cal. Health and Safety Code §§ 11054, 11055, 11056, 11057, or 11058.
(g) An act or omission in violation of any of the requirements of this chapter if such act or omission is with the knowledge, authorization, or approval of the license holder or is as a result of the license holder's negligent supervision of the employees or independent contractors of the adult facility. This includes the allowance of activities that are or become a public nuisance which includes the disruptive conduct of business patrons whether on or immediately off the premises where such patrons disturb the peace, obstruct traffic, damage property, engage in criminal conduct, violate the law and otherwise impair the free enjoyment of life and property.
(C) After holding the hearing in accordance with the provisions of this section, if the City Manager finds and determines that there are grounds for suspension or revocation, the City Manager shall impose one of the following:
(1) Suspension of the license for a specified period not to exceed six months; or
(2) Revocation of the license. The City Manager shall render a written decision that shall be hand delivered or overnight mailed to the license holder within five days of the public hearing.
(D) In the event a license is revoked pursuant to this section, another adult business license to operate an adult business shall not be granted to the licensee or an entity related to the licensee within 12 months after the date of such revocation.
(Ord. 976, passed 7-27-06; Am. Ord. 977, passed 8-10-06)