(a) 
License required.
A person commits an offense if he operates a sexually oriented business without a valid license issued under this article by the city for the particular type of business.
(b) 
Application.
(1) 
An application for a license must be made on a form provided by the city manager or his designated representative. The application must be sworn to and shall:
(A) 
Include the name and address of the applicant;
(B) 
State whether the applicant meets the requirements set forth in section 4.07.032;
(C) 
Include the name and address of each person required to sign the application pursuant to this section, and the name, address and type of entity (if applicable) of each person that owns or controls an interest in the business to be licensed; and
(D) 
Such other matters, consistent with this section, as may be specified in the application form.
(2) 
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 with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches. Applicants who must comply with section 4.07.068 shall submit a diagram meeting the requirements of section 4.07.068.
(c) 
Qualifications of applicant; inspection of premises.
The applicant must be qualified according to the provisions of this article and the premises must be inspected and found to be in compliance with applicable laws and ordinances of the city by the city manager or his designated representative.
(d) 
Signing of application.
If a person who wishes to operate a sexually oriented business is an individual, he must sign the application for a license as an applicant. If a person who wishes to operate a sexually oriented business is other than an individual, each individual who has a ten percent or greater interest in the business must sign the application for a license as an applicant. Each applicant must be qualified under section 4.07.032 and each applicant shall be considered a licensee if a license is granted.
(1988 Code, ch. 4, sec. 14.04; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-46)
The city manager or his designated representative shall approve the issuance of a license to an applicant within 30 days after receipt of a completed application unless the city manager or his representative finds one or more of the following to be true:
(1) 
An applicant is under 18 years of age.
(2) 
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.
(3) 
An applicant has failed to provide information reasonably necessary for issuance of the license and failed to provide information for a background check, or has falsely answered a question or request for information on the application form.
(4) 
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.
(5) 
An applicant or an applicant’s spouse has been convicted of a crime:
(A) 
Involving one or more of the following described offenses or of acts which would constitute one or more of the following offenses if committed in this state:
(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 or promotion 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) 
Prohibited sexual conduct, enticing a child, or harboring a runaway child as described in chapter 25 of the Texas Penal Code; or
(v) 
Money laundering as described in chapter 34 of the Texas Penal Code; or
(vi) 
Engaging in organized criminal activity as described in chapter 71 of the Texas Penal Code; or
(vii) 
Criminal attempt, conspiracy or solicitation to commit any of the foregoing offenses; and
(B) 
For which:
(i) 
Less than two (2) years have elapsed since the date of the 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 (5) 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 (5) 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 (2) or more misdemeanor offenses or combination of misdemeanor offenses occurring within any twenty-four-month period.
(C) 
The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or applicant’s spouse.
(D) 
An applicant who has been convicted or whose spouse has been convicted of an offense listed in this subsection may qualify for an adult entertainment establishment permit only when the time period required under this subsection has elapsed.
(6) 
The license fee required by this article has not been paid.
(7) 
An applicant has been employed in a sexually oriented business in a managerial capacity within the past 12 months and has demonstrated an inability to operate or manage a sexually oriented business premises in a peaceful and law-abiding manner, thus necessitating action by law enforcement officers.
(8) 
An applicant or the proposed establishment is in violation of or is not in compliance with any section of this article.
(9) 
The premises to be used for the sexually oriented business are not in compliance with all applicable city laws, regulations and ordinances adopted by the city council.
(10) 
The license, if granted, shall state on its face the name of the persons to whom it is granted, the expiration date, and the address of the sexually oriented business. 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.
(1988 Code, ch. 4, sec. 14.05; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-47; Ordinance adopting 2018 Code)
(a) 
Application fee.
An applicant for a sexually oriented business license shall submit a nonrefundable fee in accordance with appendix A of this code. The fee must be paid in order for the application to be considered complete and ready for processing.
(b) 
Annual licensing fee.
The annual licensing fee shall be according to appendix A of this code, to be paid by the licensee at the time of issuing said permit.
(1988 Code, ch. 4, sec. 14.06; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-48)
(a) 
An applicant or licensee shall permit representatives of the city police department, building inspection department, fire marshal’s office or code enforcement division to inspect the premises of a sexually oriented business for the purpose of ensuring compliance with applicable city and state laws, at any time the business is open for operation.
(b) 
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, inspection department, code enforcement department or fire marshal’s office.
(c) 
The provisions of this section do not apply to areas of an adult motel that are currently being rented by a customer for use as a permanent or temporary habitation.
(1988 Code, ch. 4, sec. 14.07; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-49)
Each license shall expire one year from the date of issuance and may be renewed only by making application as provided in section 4.07.031. The application for renewal shall be made at least 30 days before the expiration date of the current license. If an application is submitted less than 30 days before the expiration date, the expiring license shall not be affected; however, the licensee shall not operate the sexually oriented business until a renewal or new license is issued.
(1988 Code, ch. 4, sec. 14.08; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-50)
(a) 
The city manager and/or his designated representative shall suspend a license for a period not to exceed 30 days if he determines that a licensee or an agent or employee of a licensee has:
(1) 
Violated or is not in compliance with this article;
(2) 
Engaged in excessive use of alcoholic beverages while on the sexually oriented business premises;
(3) 
Refused to allow an inspection of the sexually oriented business premises as authorized by this section;
(4) 
Knowingly permitted gambling by any person on the sexually oriented business premises; or
(5) 
Demonstrated inability to operate or manage a sexually oriented business in a peaceful and law-abiding manner thus necessitating action by law enforcement personnel.
(b) 
When the city manager or his designated representative denies renewal of a license, the applicant shall not be issued a license for one year from the date of denial. If subsequent to denial the city manager or his designated representative finds that the basis for denial of the renewal license has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the denial became final.
(1988 Code, ch. 4, sec. 14.09; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-51; Or)
(a) 
The city manager or his designated representative shall revoke a license if a cause of suspension in section 4.07.036 occurs and [the license] has been suspended within the preceding 12 months. The city manager or his designated representative shall revoke a license if he determines that:
(1) 
A licensee gave false information in the material submitted on the application for a license;
(2) 
A licensee, agent or employee has knowingly allowed possession, use or sale of controlled substances on the premises;
(3) 
A licensee, an agent, or employee has knowingly allowed prostitution on the premises;
(4) 
A licensee, an agent, or employee knowingly operated the sexually oriented business during a time when the licensee’s license was suspended;
(5) 
A licensee has been convicted of an offense listed in section 4.07.032(9) for which the time period required in section 4.07.032 has not elapsed;
(6) 
A licensee or agent or an employee has knowingly allowed any act of sexual intercourse, sodomy, masturbation, oral copulation or sexual contact to occur in or on the premises;
(7) 
A licensee is delinquent in payment to the city for any ad valorem taxes, sales or other taxes related to the sexually oriented business.
(b) 
When the city manager or his designated representative revokes a license, the revocation shall continue for one year from the date of revocation and the licensee shall not be issued a sexually oriented business license for one year from the date of revocation. If, subsequent to revocation, the city manager or his designated representative finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license after reapplying as provided for in this article if at least 90 days have elapsed since the date the revocation became effective.
(1988 Code, ch. 4, sec. 14.10; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-52)
A licensee shall not transfer his license to another, nor shall a licensee operate a sexually oriented business under the authority of a license at any other place other than the addresses designated on the application.
(1988 Code, ch. 4, sec. 14.12; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-53)
If the city manager or his designated representative revokes or denies or suspends a license, the city manager or his designated representative shall send to the applicant, or licensee, by certified mail, return receipt requested, written notice of the action and the right to appeal. Upon receipt of written notice of the denial, suspension or revocation, the licensee whose license has been denied, revoked, or suspended shall have the right to appeal to the city board of adjustments and appeals. Such appeal shall be made within 30 days after receipt of such written notice. Subsequent appeal shall be made to the state district court. The appeal to state district court shall be made within 30 days from the date of after [sic] the decision of the board of adjustments and appeals.
(1988 Code, ch. 4, sec. 14.11; Ordinance 1998-10, adopted 6/23/98; 2010 Code, sec. 6-54)