(a) 
A person commits an offense if he operates a sexually oriented business without a valid license issued by the town for the particular type of business.
(b) 
An application for a license must be made in the form provided by the town. The application must be sworn to and shall 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. Applicants who must comply with this article shall submit a diagram meeting these requirements.
(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 ten percent (10%) or greater interest in the business must sign the application for a license as applicant. Each applicant must be qualified under this article, and each applicant shall be considered a licensee if a license is granted.
(e) 
Each applicant for a sexually oriented business license shall, not later than the 60th day before the date the application is filed for the license, place at the proposed location an outdoor sign (at least 24 inches x 36 inches in size) which provides notification and information specifically stating that a sexually oriented business is intended to be located on the premises and providing the name and business address of the applicant. All lettering on the sign must be at least two (2) inches in size.
(2001 Code, sec. 6.603; Ordinance adopting Code)
(a) 
The building official shall approve the issuance of a license to an applicant within sixty (60) days after receipt of an application unless the building official finds one or more of the following to be true:
(1) 
An applicant is under eighteen (18) years of age.
(2) 
An applicant or applicant’s spouse is overdue in the payment of town 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 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 (2) years immediately preceding the application.
(5) 
Any fee required by this article has not been paid.
(6) 
An applicant has been employed in a sexually oriented business in a managerial capacity within the preceding twelve (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.
(7) 
An applicant or the proposed establishment is in violation of or is not in compliance with this article.
(8) 
An applicant or applicant’s spouse has been convicted of a crime involving:
(A) 
Any of the following offenses described in chapter 43 of the Texas Penal Code:
(i) 
Prostitution;
(ii) 
Promotion of prostitution;
(iii) 
Aggravated promotion of prostitution;
(iv) 
Compelling prostitution;
(v) 
Obscenity;
(vi) 
Sale, distribution, or display of harmful material to minor;
(vii) 
Sexual performance by a child;
(viii) 
Possession of child pornography;
(B) 
Any of the following offenses as described in chapter 21 of the Texas Penal Code:
(i) 
Public lewdness;
(ii) 
Indecent exposure;
(iii) 
Indecency with a child;
(iv) 
Sexual assault or aggravated sexual assault as described in chapter 22 of the Texas Penal Code;
(v) 
Incest, solicitation of a child or harboring a runaway child as described in chapter 25 of the Texas Penal Code; or
(vi) 
Criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses;
(C) 
For which:
(i) 
Less than two (2) years have elapsed since the date of the conviction or the date of the release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a misdemeanor offense;
(ii) 
Less than (5) five years have elapsed since the date of the conviction or the date of the release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a felony offense; or
(iii) 
Less than (5) five years have elapsed since the date of the last conviction or the date of the release from confinement imposed 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.
The fact that a conviction is being appealed has no effect on the disqualification of the applicant or applicant’s spouse under this section.
(9) 
An applicant who has been convicted or whose spouse has been convicted of an offense listed in this article may qualify for a sexually oriented business license only when the time period required by this section has elapsed.
(b) 
The building official, upon approving issuance of a sexually oriented business license, shall send to the applicant, by certified mail, return receipt requested, written notice of that action and state where the applicant must pay the license fee and obtain the license. The building official’s approval of the issuance of the license does not authorize the applicant to operate a sexually oriented business until the applicant has paid all fees required by this article and obtained possession of the license.
(c) 
The license, if granted, must 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. The license must 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. 6.604)
(a) 
The town shall collect an annual fee for a sexually oriented business license in accordance with the fee schedule of the town, as amended from time to time.
(b) 
In addition to the fees required by subsection (a), an applicant for an initial sexually oriented business license shall, at the time of making application, pay a nonrefundable fee in accordance with the fee schedule of the town for the town to consider such application and conduct an investigation of the applicant(s).
(2001 Code, sec. 6.605)
(a) 
An applicant or licensee shall permit the building official to inspect the premises of a sexually oriented business, for the purpose of ensuring compliance with the law, at any time 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 refuses to permit lawful inspection of the premises by the building official at any time it is occupied or open for business.
(c) 
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. 6.606)
Each license expires one year from the date of issuance, except that a license issued pursuant to a location restriction expires on the date the exemption expires. A license may be renewed only by making application as provided herein. Application for renewal should be made at least ninety (90) days before the expiration date, and, when made less than ninety (90) days before the expiration date, the expiration of the license will not be affected by the pendency of the application.
(2001 Code, sec. 6.607)
The building official shall suspend a license for a period not to exceed thirty (30) days if it is found that a licensee or an employee of a licensee has:
(1) 
Violated or is not in compliance with this article;
(2) 
Engaged in excessive use of alcoholic beverages or drugs while on the sexually oriented business premises;
(3) 
Refused to allow an inspection of the sexually oriented business premises as authorized by this article;
(4) 
Knowingly permitted gambling by any person on the sexually oriented business premises;
(5) 
Demonstrated inability to operate or manage a sexually oriented business in a peaceful and law-abiding manner thus necessitating action by law enforcement officers.
(2001 Code, sec. 6.608)
(a) 
The building official shall revoke a license if a cause of suspension occurs and the license was previously suspended within the preceding twelve (12) months.
(b) 
The building official shall revoke a license if the building official determines that:
(1) 
A licensee gave false or misleading information in the material submitted to the town 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 4.03.042 for which the time period required has not elapsed;
(6) 
On two or more occasions within a twelve-month period, a person or persons committed an offense listed in section 4.03.042 in or on the licensed premises, and the person or persons were employees of the sexually oriented business at the time the offenses were committed;
(7) 
A licensee or an employee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or sexual conduct [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 town for ad valorem taxes or sales taxes related to the sexually oriented business.
The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(c) 
When the building official revokes a license, the revocation shall continue for one (1) year and the licensee shall not be issued a sexually oriented business license for one (1) year from the date the revocation became effective. If, subsequent to revocation, the building official finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least ninety (90) days have elapsed since the date the revocation became effective. If the license was revoked, an applicant may not be granted another license until the appropriate number of years required under section 4.03.042 has elapsed.
(2001 Code, sec. 6.609)
If the building official denies the issuance or renewal of a license, or suspends or revokes a license, the building official shall send to the applicant or licensee, by certified mail, return receipt requested, written notice of the action and the right to an appeal. Upon receipt of written notice of the denial, suspension, or revocation, the applicant or licensee whose application for a license or license renewal has been denied or whose license has been suspended or revoked has the right to appeal to the state district court. An appeal to the state district court must be filed within thirty (30) days after the receipt of notice of the decision of the building official. The applicant or licensee shall bear the burden of proof in court.
(2001 Code, sec. 6.610)
A licensee shall not transfer his license to another person, nor shall a licensee operate a sexually oriented business under the authority of a license at any place other than the address designated in the application.
(2001 Code, sec. 6.611)