(A) The Director may refuse to issue, renew, or may revoke or suspend any license or work permit card granted under this chapter at any time if the Director finds that a licensee or applicant:
(1) Has failed to comply with the restrictions, requirements, and conditions of this chapter or with such material regulations as may be enacted by the Director pursuant to this chapter;
(2) Has knowingly provided false information to gain or to maintain a license or work permit card or has willfully failed to keep the information required under § 113.03 current; and
(3) Has engaged in a consistent pattern of conduct which has resulted in the licensed premises being used for or the site of illegal activities, whether under this chapter, state, or federal law, or by the licensee or its agents, employees, or patrons.
(B) (1) (a) If the Director finds that a licensee or applicant has violated any of the provisions of division (A) above, he or she or his or her designee may request the licensee or applicant orally or through a warning letter to take corrective action; he or she or his or her designee may request the licensee or applicant to meet informally with him or her or his or her designee; or he or she or his or her designee may require the licensee or applicant to appear before him or her at a hearing and show cause why disciplinary action should not be taken.
(b) At any point, the licensee or applicant may request that a hearing be held.
(2) At any hearing under division (A) above, the Director shall consider all relevant factors including:
(a) The willfulness of the licensee’s or applicant’s failure to comply with the applicable restrictions, requirements, and conditions and the willfulness of the failure of the individual designated on the licensee’s application to undertake such compliance;
(b) The extent to which such failure to comply has been repeated by the licenses or applicant or by the individual designated on the licensee’s application to undertake such compliance;
(c) Any mitigating circumstances which the licensee or applicant has shown has made compliance impracticable or impossible;
(d) Whether the licensee or applicant has remedied the failure to comply prior to the hearing;
(e) The willfulness of the failure of the owner or operator or the person designated on the licensee’s application to undertake compliance with disclosure of current information required hereunder;
(f) The extent to which such failure to disclose information required to be kept current hereunder has been repeated;
(g) The length of time such disclosure requirements have been out of compliance;
(h) The number of violations;
(i) The number and frequency of the incidents of the illegal conduct;
(j) Whether the licensee or its agents or employees are found to have had knowledge of the illegal conduct;
(k) Whether the licensee or its agents or employees, by the manner in which the licensee’s business is conducted, are found to have permitted or encouraged such illegal conduct; and
(l) The degree to which the licensee’s business is found to have permitted or encouraged such illegal conduct.
(C) (1) (a) When the Director determines or is requested to hold a hearing pursuant to this division (C), he or she shall serve written notices of the hearing and of the specific matter or charges to be determined.
(b) That notice shall be served upon the licensee or applicant at the address listed for the licensee or applicant in the application at least 20 days in advance of the hearing.
(2) Service of notice shall be deemed complete upon certified mailing, return receipt requested or personal delivery. At the hearing, the Director shall afford the licensee or applicant an opportunity to be represented by an attorney, to present evidence, to cross-examine adverse witnesses, and otherwise to rebut the evidence presented against the licensee or applicant. Within 20 days after the hearing and based on evidence received at the hearing, the Director shall issue his or her findings and shall determine the sanction, if any, to be imposed on the licensee or applicant or upon the owner of the licensed premises, which may include suspension of the licensee’s license or work permit card for a period not to exceed one year, revocation of the licensee’s license, or work permit card or refusal to issue a license or work permit card.
(3) If the Director suspends a license or work permit card, the Director may, at his or her option, allow the owner or licensee or permit card holder to pay in lieu of part or all of the days suspended the sum up to $50 per day. If the licensee’s license is suspended or the application refused, all persons listed on the application, whether as a partner, director, officer, owner, part owner or operator, or managing partner may also be suspended from participating in sexually-explicit entertainment activities for a period not to exceed five years if the Director finds that such persons knew or reasonably should have known of the violation for which the license is suspended or refused and failed to take steps promptly to cure the violation.
(4) The findings and rulings of any hearing before the Director shall be a final determination of the issues raised unless appealed to the Administrative Appeals Board. Any such appeal must be made within 20 days of the Director’s findings. The Administrative Appeals Board may hear the matter de novo or may limit both parties to oral arguments based on the record before the Director. The Administrative Appeals Board shall conduct its hearing within 20 days of receipt of the notice of appeal and shall make its findings within 20 days of the hearing or receipt of all necessary information by the Board. Any decision of the Administrative Appeals Board may be appealed to a court of competent jurisdiction, but shall be enforced during the pendency of any such appeal unless otherwise ordered by the court.
(E) (1) The Director is empowered to enact from time to time whatever rules and regulations are deemed necessary for the orderly and complete administration of this chapter at such times, in the discretion of the Director, as the need arises for such rules and regulations.
(2) All regulations shall be submitted to the Mayor and shall become effective within 30 days of submission unless disapproved by the Mayor prior to that date and upon notice to all licensees and persons with license application pending.
(Ord. 685-01, passed - -)