(a) 
A person commits an offense if the person operates 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 mayor. The application form shall be sworn to and shall:
(1) 
Include the name and address of the applicant;
(2) 
State whether the applicant meets each of the requirements set forth in section 4.06.032;
(3) 
Include the name and address of each person required to sign the application pursuant to subsection (d) of this section, and the name, address and type of entity (if applicable) of each person or entity owned [or] controlled by such person which owns or controls an interest in the business to be licensed; and
(4) 
Such other matters, consistent with this article, as may be specified in the application form.
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. Applicants who must comply with section 4.06.067 shall submit a diagram meeting the requirements of that section.
(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 official, fire department, and building official.
(d) 
If a person who wishes to operate a sexually oriented business is an individual, the person must sign an 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 directly or indirectly through one or more intermediaries, owns or controls a ten percent or greater interest in the business must sign and submit, as an applicant, a separate application containing all applicable information required by subsection (b) of this section. Each applicant must be qualified to be licensed under this article, and each applicant shall be considered a licensee if a license is granted.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-83)
(a) 
The mayor or his designee shall issue a license to an applicant or the transfer by an applicant of all or any part of the applicant’s ownership or control of a sexually oriented business within 30 days after receipt of an application, unless the mayor 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 them or imposed upon them 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 who has been denied a license by the city to operate a sexually oriented business within the preceding 12 months, or residing with a person whose license to operate a sexually oriented business has 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, fire department, and the building official as being in compliance with applicable laws and ordinances;
(7) 
The license fee required by this article has not been paid;
(8) 
An applicant or the proposed premises is in violation of or is not in compliance with the provisions of this article;
(9) 
An applicant or an applicant’s spouse has been convicted of a crime involving:
(A) 
Prostitution, including but not limited to, compelling, solicitation of, and promotion of prostitution;
(B) 
Obscenity;
(C) 
Sale, distribution, or display of harmful material to minor;
(D) 
Sexual performance by a child;
(E) 
Possession of child pornography;
(F) 
Public lewdness;
(G) 
Indecent exposure;
(H) 
Indecency with a child;
(I) 
Sexual assault or aggravated sexual assault;
(J) 
Criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses, and less than two years have elapsed since the date of conviction or the date of release from confinement imposed for the conviction, whichever is later, if the conviction is of a misdemeanor offense; less than five years have elapsed since the date of conviction or the date of release from confinement for the conviction, whichever is later, if the conviction is of a felony offense; or 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 later, if the convictions are of two or more misdemeanor offenses or a combination of misdemeanor offenses occurring within any 24-month period;
(10) 
There is on-premises sale or consumption of alcohol; or
(11) 
The location or establishment is a sex club.
(b) 
The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or applicant’s spouse.
(c) 
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.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-84)
The annual fee for a sexually oriented business license shall be established by resolution of the city council.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-85)
(a) 
Each license shall automatically expire one year from the date of issuance and may be renewed only by making application as provided in this article. Application for renewal should be made at least 30 days before the expiration date, and when made less than 30 days before the expiration date, the expiration of the license will not be affected.
(b) 
When the mayor 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 mayor 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 the denial became final.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-87)
The mayor may 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 any provision of 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 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.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-88)
(a) 
The mayor shall revoke a license if a cause of suspension in section 4.06.035 occurs and the license has been suspended within the preceding 12 months.
(b) 
The mayor shall revoke a license if he determines that:
(1) 
A licensee gave false or misleading information in the material submitted to the mayor during the application process;
(2) 
A licensee or an agent or employee has knowingly allowed possession, use, or sale of controlled substances on the premises;
(3) 
A licensee or an agent or employee has knowingly allowed prostitution on the premises;
(4) 
A licensee or an agent or 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 4.06.032(a)(9) of this article for which the time period required in that section has not elapsed;
(6) 
On two or more occasions within a continuous 12-month period, a person committed an offense in or on the licensed premises of a crime listed in section 4.06.032(a)(9), for which a conviction has been rendered, and the person(s) were agents or employees of the sexually oriented business at the time the offenses were committed;
(7) 
A licensee or an agent or employee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or sexual contact to occur in or on the licensed premises, unless the location is an adult motel. The term “sexual contact” shall have the same meaning as it is defined in V.T.C.A., Penal Code, section 21.01; 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) 
When the mayor 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 the revocation became effective. If, subsequent to revocation, the mayor 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)(5) of this section, an applicant may not be granted another license until the appropriate number of years required under this article have elapsed since the conviction or release.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-89)
If the mayor denies the issuance of a license, or suspends or revokes a license, the mayor shall send to the applicant or licensee by certified mail, return receipt requested, written notice of the action and the right to an appeal. The aggrieved party may appeal the decision of the mayor to the city council. The filing of an appeal stays the action of the mayor in suspending or revoking a license until the city council makes a final decision. If within a ten-day period the mayor suspends, revokes or denies issuance of any other sexually oriented business at the same location, then the mayor may consolidate the request for appeals of those actions into one appeal. The decision of the city council shall be final and binding.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-90)
A licensee, including any applicant for a license, shall not transfer his license or all or any part of his ownership or control of a sexually oriented business to another, 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.
(Ordinance 2011-07, sec. 1, adopted 8/23/11; 2007 Code, sec. 22-91)