(a) 
A person commits an offense if he or she operates a sexually oriented business without a valid license issued by the city for the particular type of business.
(b) 
(1) 
All applications for a license must be made on a form provided by the city.
(2) 
The application form shall be sworn to and shall include:
(A) 
The name and address of the applicant;
(B) 
State whether or not the applicant meets all of the requirements set forth in section 4.06.042;
(C) 
The name and address of each person required to sign the application pursuant to subsection (d) below and the name, address and type of entity, if any, of each person or entity owned or controlled by the person which owns or controls an interest in the business to be licensed; and
(D) 
Other matters, consistent with this article, as may be specified in the application form.
(i) 
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.
(ii) 
Applicants who must comply with section 4.06.085 shall submit a diagram meeting the requirements thereof.
(c) 
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 the law by the health department, fire department and building official.
(d) 
(1) 
If a person who wishes to operate a sexually oriented business is an individual, he or she must sign an 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 directly or indirectly, through one or more intermediaries, owns or controls a 10% or greater interest in the business must sign and submit, as an applicant, a separate application containing all applicable information required by subsection (b) above.
(2) 
Each applicant must be qualified under section 4.06.042 and each applicant shall be considered a licensee if a license is granted.
(2004 Code, sec. 113.20)
(a) 
The city administrator shall approve the issuance of a license by the city secretary to an applicant [or] for the transfer by an applicant of all or any part of his or her ownership or control of a sexually oriented business within 30 days after receipt of an application unless he or she finds one or more of the following to be true:
(1) 
An applicant is under 18 years of age;
(2) 
An applicant or applicant’s spouse is overdue in his or her payment to the city of taxes, fees, fines or penalties assessed against him or her or imposed upon him or her 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 years immediately preceding the application. The fact that a conviction is being appealed shall have no effect;
(5) 
An applicant is residing with a person which has been denied a license by the city to operate a sexually oriented business within the preceding 72 months or residing with a person whose license to operate a sexually oriented business been revoked within the preceding 12 months;
(6) 
The premises to be used for the sexually oriented business are not in compliance with applicable zoning laws or have not been approved by the health department, the fire department and the building official as being in compliance with applicable laws and ordinances;
(7) 
The license fees required by this article have not been paid;
(8) 
An applicant or the proposed establishment is in violation of or is not in compliance with this article;
(9) 
An applicant or an applicant’s spouse has been convicted of a crime:
(A) 
Involving:
(i) 
Any of the following offenses as described in Tex. Pen. Code, chapter 43:
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 minor;
g. 
Sexual performance by a child;
h. 
Possession of child pornography;
(ii) 
Any of the following offenses as described in Tex. Pen. Code, chapter 21:
a. 
Public lewdness;
b. 
Indecent exposure;
c. 
Indecency with a child;
(iii) 
Sexual assault or aggravated sexual assault as described in Tex. Pen. Code, chapter 22;
(iv) 
Incest, solicitation of a child or harboring a runaway child as described in Tex. Pen. Code, chapter 25; or
(v) 
Criminal attempt, conspiracy or solicitation to commit any of the foregoing offenses;
(B) 
For which:
(i) 
Less than two years have elapsed since the date of conviction 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 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 conviction is of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any 24-month period.
(b) 
(1) 
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.
(2) 
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.
(2004 Code, sec. 113.21)
The annual fee for a sexually oriented [business] license is $500.00.
(2004 Code, sec. 113.22)
(a) 
An applicant or licensee shall permit representatives of the city administration, police department, health department, fire department and building inspection division to inspect the premises of a sexually oriented business for the purpose of insuring 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 or her agent or employee commits an offense if [he] refuses to permit a lawful inspection of the premises by a representative of the above-described departments at any time it is occupied or open for business.
(2004 Code, sec. 113.23)
(a) 
Each license shall expire one year from the date of issuance and may be renewed only by making application as provided in section 4.06.041. Application for renewal should be made at least 30 days before the expiration date and which [if application] is made less than 30 days before the expiration date, the expiration of the license will not be affected.
(b) 
When the city administrator denies renewal of the license, the applicant shall not be issued a license from the year [sic] from the date of denial. If, subsequent to denial, the city administrator 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 date denial became final.
(1) 
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 Tex. Pen. Code, section 21.01; and/or
(2) 
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)(1) above does not apply to adult motels as a ground for revoking the license.
(e) 
When the city administrator 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 city administrator finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became effective. If the license was revoked under subsection (b) above, an applicant may not be granted another license until the appropriate number of years required under section 4.06.042 has elapsed since the termination of any sentence, parole or probation.
(2004 Code, sec. 113.24)
If the city administrator denies the issuance of the license or suspends or revokes a license, he or she shall send the applicant or licensee, by certified mail, return requested, written notice of his or her action and the right to appeal. The aggrieved party may appeal the decision of the city administrator to the city council. The filing of the appeal stays the action of the city administrator in suspending or revoking a license until the city council makes a final decision.
(2004 Code, sec. 113.25)
A licensee, including any applicant for a license, shall not transfer his or her license or all or any part of his or her ownership or control of a sexually oriented business [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.
(2004 Code, sec. 113.26)