(a) 
A person commits an offense if he operates or causes to be operated a sexually oriented business without a valid license issued by the city for the particular type of business.
(b) 
An application for a license must be made on a form provided by the chief of police. The application must be accompanied by a sketch or diagram showing the configuration of the premises, including a statement of total floor space occupied by the business. The sketch or diagram need not be professionally prepared but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches.
(c) 
The applicant must be qualified according to the provisions of this article.
(d) 
If a person who wishes to operate a sexually oriented business is an individual, he must sign the application for a license as applicant. If a person who wishes to operate a sexually oriented business is other than an individual, each individual who has a twenty percent or greater interest in the business must sign the application for a license as applicant. Each applicant must be qualified under section 4.10.033 and each applicant shall be considered a licensee if a license is granted.
(e) 
The fact that a person possesses other types of state or city permits or licenses does not exempt the person from the requirement of obtaining a license for a sexually oriented business.
(2001 Code, sec. 4.1104)
All applications for a license under this article shall be accompanied by a nonrefundable application fee as provided for in the fee schedule found in appendix A of this code. An application shall not be considered to have been filed until the fee is paid and all information required by the application form has been submitted.
(2001 Code, sec. 4.1105)
(a) 
The chief of police shall approve the issuance of a license to an applicant within thirty days after receipt of an application unless the chief of police finds one or more of the following to be true:
(1) 
The location of the sexually oriented business is or would be in violation of the zoning regulations of the city, as amended;
(2) 
The applicant failed to supply all of the information requested on the application;
(3) 
The applicant gave false, fraudulent, or untruthful information on the application;
(4) 
An applicant is under eighteen years of age;
(5) 
An applicant or an applicant’s spouse is overdue in payment to the city of taxes, fees, fines, or penalties assessed against or imposed upon the applicant or the applicant’s spouse in relation to a sexually oriented business;
(6) 
An applicant or an applicant’s spouse has been convicted of a violation of a provision of this article, other than the offense of operating a sexually oriented business without a license, within two years immediately preceding the application. The fact that a conviction is being appealed shall have no effect on the denial of a license;
(7) 
The application or renewal fee required by this article has not been paid;
(8) 
The applicant has not demonstrated that the owner of the sexually oriented business owns or holds a lease for the property or the applicable portion thereof upon which the sexually oriented business will be situated or has a legally enforceable right to acquire the same;
(9) 
An applicant or the proposed establishment is in violation of or is not in compliance with section 4.10.034 or 4.10.038 of this article;
(10) 
An applicant or an applicant’s spouse has been convicted of a crime:
(A) 
Involving:
(i) 
Any of the following offenses as described in chapter 43 of the Texas Penal Code:
a. 
Prostitution;
b. 
Promotion of prostitution;
c. 
Aggravated promotion of prostitution;
d. 
Compelling prostitution;
e. 
Obscenity;
f. 
Sale, distribution, or display of harmful material to a minor;
g. 
Sexual performance by a child;
h. 
Possession of child pornography;
(ii) 
Any of the following offenses as described in chapter 21 of the Texas Penal Code:
a. 
Public lewdness;
b. 
Indecent exposure;
c. 
Indecency with a child;
(iii) 
Sexual assault or aggravated sexual assault as described in chapter 22 of the Texas Penal Code;
(iv) 
Incest, solicitation of a child or harboring a runaway child as described in chapter 25 of the Texas Penal Code;
(v) 
Possession or distribution of a controlled substance; or
(vi) 
Criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses; and
(B) 
For which:
(i) 
Less than two years have elapsed since the date of conviction, or the date of release from the terms of probation, parole, or deferred adjudication, or the date of release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a misdemeanor offense;
(ii) 
Less than five years have elapsed since the date of conviction, or the date of release from the terms of probation, parole, or deferred adjudication, or the date of release from confinement for the conviction, whichever is the later date, if the conviction is of a felony offense; or
(iii) 
Less than five years have elapsed since the date of the last conviction or the date of release from confinement for the last conviction, whichever is the later date, if the convictions are of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any twenty-four-month period.
(b) 
The fact that a conviction of the applicant or applicant’s spouse is being appealed shall have no effect on the disqualification.
(c) 
An applicant who has been convicted or whose spouse has been convicted of an offense listed in subsection (a)(10)(A) may qualify for a sexually oriented business license only when the time period required by subsection (a)(10)(B) has elapsed.
(d) 
The license, if granted, shall state on its face the name of the person or persons to whom it is granted, the expiration date, and the address of the sexually oriented business.
(e) 
The license shall be posted in a conspicuous place at or near the entrance to the sexually oriented business so that it may be easily read at any time.
(2001 Code, sec. 4.1106)
(a) 
An applicant or licensee shall permit representatives of the police department, health department, fire department, and building inspections division to inspect the premises of a sexually oriented business for the purpose of insuring compliance with the law, at any time during the thirty-day application period or after it is occupied or open for business.
(b) 
A person who operates a sexually oriented business or his agent or employee commits an offense if he operates the establishment without maintaining a current list of all employees employed by the business, along with a complete updated application. A valid driver’s license, state identification card, or passport, all with a photo, shall be required for all employment applications.
(c) 
A person who operates a sexually oriented business or his agent or employee commits an offense if he refuses to permit a lawful inspection of the premises by a representative of the police department, health department, fire department, or building inspections division at any time during the thirty-day application period or after it is occupied or open for business.
(d) 
The provisions of this section do not apply to areas of an adult motel which are currently being rented by a customer for use as a permanent or temporary habitation.
(2001 Code, sec. 4.1107)
(a) 
Each license shall expire one year from the date of issuance.
(b) 
A license may be renewed by submission to the chief of police of an application on the form prescribed by the chief of police and payment of a nonrefundable renewal processing fee as provided for in the fee schedule found in appendix A of this code.
(c) 
Application for renewal shall be made at least thirty days before the expiration date of the license. When application is made less than thirty days before the expiration date, the new expiration date will not be affected.
(2001 Code, sec. 4.1108)
(a) 
The chief of police shall suspend a license for a period not to exceed thirty days if he determines that a licensee or an employee of a licensee has:
(1) 
Violated or is not in compliance with section 4.10.034(b) or 4.10.038 of this article or the zoning regulations of the city, as amended;
(2) 
Engaged in public intoxication while on the sexually oriented business premises;
(3) 
Refused to allow an inspection of the sexually oriented business premises as authorized by this article; or
(4) 
Knowingly permitted gambling by any person on the sexually oriented business premises.
(b) 
When the chief of police is authorized to suspend a license under this section, he shall give the licensee the opportunity to pay a reinstatement fee, as provided for in the fee schedule found in appendix A of this code, rather than have the license suspended.
(1) 
Payment of this reinstatement fee shall be considered an administrative admission of the violation. However, this shall not be used as an admission of guilt in a criminal prosecution under this article;
(2) 
If the licensee does not pay the reinstatement fee before the expiration of the third working day after notification, he loses the opportunity to pay it and the chief of police shall impose the suspension;
(3) 
Each day in which a violation is permitted to continue shall constitute a separate cause for suspension.
(2001 Code, sec. 4.1109)
(a) 
The chief of police shall revoke a license if a cause of suspension in section 4.10.036 occurs and the license has been suspended or a reinstatement fee paid within the preceding twelve months.
(b) 
The chief of police shall revoke a license if he determines that:
(1) 
A licensee gave false or misleading information in the material submitted to the chief of police during the application process;
(2) 
A licensee or an employee has knowingly allowed possession, use, or sale of controlled substances on the premises;
(3) 
A licensee or an employee has knowingly allowed prostitution on the premises;
(4) 
A licensee or an employee knowingly operated the sexually oriented business during a period of time when the licensee’s license was suspended;
(5) 
A licensee has been convicted of an offense listed in section 4.10.033(a)(10) for which the time period required has not elapsed;
(6) 
On two or more occasions within a twelve-month period, an employee of the establishment committed in or on the licensed premises an offense listed in section 4.10.033(a)(10) for which a conviction has been obtained;
(7) 
A licensee or an employee 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 same meaning as it is defined in section 21.01, Texas Penal Code; or
(8) 
A licensee is delinquent in payment to the city for hotel occupancy taxes, ad valorem taxes, or sales taxes related to the sexually oriented business.
(c) 
The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(d) 
Subsection (b)(7) of this section 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.
(e) 
When the chief of police 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. If, subsequent to revocation, the chief of police finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least ninety days have elapsed since the date the revocation became effective. If the license was revoked under subsection (b)(5) of this section, an applicant may not be granted another license until the appropriate number of years required under section 4.10.033(a)(10) has elapsed.
(2001 Code, sec. 4.1110)
(a) 
A person commits an offense if he transfers his license to another person or operates a sexually oriented business under the authority of a license at any place other than the address designated in the application.
(b) 
A person commits an offense if he counterfeits, forges, changes, defaces, or alters a license.
(2001 Code, sec. 4.1112)
(a) 
If the chief of police is authorized to deny the issuance of a license, or suspend or revoke a license, the chief of police shall give written notice to the applicant or licensee of such intention.
(1) 
The notice shall provide that the denial of issuance, suspension, or revocation shall take effect at the expiration of the third working day after notification unless the licensee provides a written response to the chief of police before the expiration of the third working day;
(2) 
If a written response from the applicant or licensee is received by the chief of police before the expiration of the third working day, the chief of police shall review the response before rendering a final decision;
(3) 
The chief of police shall give written notice of his final decision to the applicant or licensee;
(4) 
The decision by the chief of police is effective immediately and final pending any appeal;
(5) 
Notices shall be delivered to the address listed in the license application for receipt of notice by:
(A) 
Hand delivery to a licensee, owner, or employee of the establishment;
(B) 
A posting of the notice at the usual business entrance of the establishment; or
(C) 
Certified mail, return receipt requested.
(b) 
Upon receipt of written notice of the denial, suspension, or revocation, the licensee whose application for a license has been denied or whose license has been suspended or revoked shall have the right to appeal to an appropriate court.
(c) 
An appeal to the appropriate court must be filed within thirty days after the receipt of notice of the decision of the chief of police.
(d) 
The licensee or applicant shall bear the burden of proof in court.
(2001 Code, sec. 4.1111)
If the chief of police denies the issuance of a license to an applicant because the sexually oriented business would be in violation of the distance requirements of the zoning regulations of the city, then the applicant may, not later than ten calendar days after receiving notice of the denial, file an appeal in accordance with the zoning regulations of the city.
(2001 Code, sec. 4.1113)