No person shall operate a sexually oriented business without first obtaining a sexually oriented business license issued by the city pursuant to the provisions of this article.
(Ordinance 2005-01, sec. 4, adopted 1/11/05)
(a) 
Applications for sexually oriented business licenses shall be filed with the city secretary on a form to be furnished by the city secretary. Applications shall contain at least the following information:
(1) 
The type of ownership of the business, i.e., whether individual, partnership, corporation or otherwise;
(2) 
The trade name under which the business is to be conducted and the type(s) of sexually oriented businesses to be operated on the premises;
(3) 
The address and all telephone numbers to be used in connection with the business;
(4) 
The following information concerning the applicant if an individual, or concerning each stockholder holding more than ten percent of the stock of the corporation and each officer and each director if the applicant is a corporation, or concerning each partner, including limited partners, if the applicant is a partnership, and concerning the manager or other person principally in charge of the operation of the business:
(A) 
Name, residence address and residence telephone number;
(B) 
The two most recent previous addresses;
(C) 
Date of birth and driver’s license number;
(D) 
Height, weight, color of hair and eyes and sex;
(E) 
Business history and experience in connection with sexually oriented businesses, including whether or not the person has previously or is currently participating in the ownership or operation of a sexually oriented business in this or another city or state; and if a license or permit was or is required for the business, whether a permit has ever been denied, revoked or suspended and, if so, the reason for that action; and
(F) 
Any convictions for any felony or for any misdemeanor involving prostitution, obscenity or controlled substances, indicating the type of crime and the date and place of conviction;
(5) 
Such other information as the police chief deems necessary to determine the truth of the matters required to be set forth in the application;
(6) 
Authorization for the city, its agents and employees to conduct an investigation into the truth of the statements set forth in the application and the qualifications of the applicant for the license; and
(7) 
A statement by the applicant under oath that the information contained in the application is true and correct. For this purpose, an authorized corporate officer may execute the statement on behalf of a corporation, and an authorized partner may execute the statement on behalf of a partnership.
(b) 
Each application shall be accompanied by the following:
(1) 
Payment of a license fee of $500.00 per year. The license fee shall not be refundable.
(2) 
Proof that an assumed name certificate has been filed with the county clerk, if the applicant is to operate the massage establishment under an assumed name.
(3) 
Proof that the applicant is authorized to do business in the state, if the applicant is a foreign corporation.
(4) 
Two front-face portrait photographs taken within 30 days of the date of the application and at least two inches by two inches in size, for each individual listed in subsection (a)(4) of this section.
(c) 
The applicant shall provide such other information, identification and physical examination of the person as shall be deemed necessary by the chief of police to determine the truth of the matters required to be set forth in the application.
(Ordinance 2005-01, sec. 5, adopted 1/11/05)
(a) 
Upon the city secretary’s receipt of an application for a sexually oriented business permit, the chief of police shall conduct an investigation into the applicant’s business and personal history. The chief of police may require a personal interview of the applicant and such further information as shall bear on the investigation.
(b) 
The chief of police shall also conduct an investigation of the premises where the sexually oriented business is to be operated to determine whether the premises comply with the requirements of this article as well as all other applicable building and health regulations.
(c) 
Before any license is issued under this article, the chief of police shall provide written approval of the application.
(Ordinance 2005-01, sec. 6, adopted 1/11/05)
(a) 
The city secretary shall issue a sexually oriented business license within 30 days of receipt of the application unless the chief of police finds that:
(1) 
The premises do not comply with all applicable laws, including, but not limited to, the requirements of this article and the city’s building and health regulations and all other applicable laws;
(2) 
The applicant, if an individual, or any of the stockholders holding more than ten percent of the stock of the corporation or any of the officers and directors if the applicant is a corporation, or any of the partners, including limited partners, if the applicant is partnership, or the manager or other person principally in charge of the operation of the business, has been convicted of any disqualifying offense, unless the conviction occurred at least five years prior to the date of the application; provided that, if the person was incarcerated in a penal facility in connection with the conviction, then the five-year period shall run from the date of release from incarceration;
(3) 
Any employee of the applicant’s business has been convicted of any disqualifying offense in connection with the business, unless the conviction occurred at least five years prior to the date of the application; provided that, if the person was incarcerated in a penal facility in connection with the conviction, then the three-year period shall run from the date of release from incarceration;
(4) 
The applicant has knowingly made any false, misleading or fraudulent statement of fact in the course of the application procedure or in any document required by the city in connection therewith; or
(5) 
The applicant has had a sexually oriented business license or permit denied or revoked by the city or any other state or local agency within five years prior to the date of the application.
(b) 
Sexually oriented business licenses shall contain the name and address of the licensee, the name, address and type(s) of business for which the license is issued and the expiration date of the license.
(Ordinance 2005-01, sec. 7, adopted 1/11/05)
(a) 
Any applicant denied a license shall have the right of appeal to the city council. This appeal shall be taken by filing with the city secretary a written statement setting forth fully the grounds for the appeal within ten days after notice of the denial is given to the applicant.
(b) 
The city secretary shall provide for a hearing for the appeal at the earliest convenient regular council meeting and shall notify the applicant by certified mail and the police chief of the date and time of the hearing. The police chief may file a written response to the appeal with the city secretary, a copy of which shall be provided by the city secretary to the applicant. The issue at the hearing shall be to determine whether grounds for the denial exist under section 4.04.064.
(c) 
The council shall by majority vote either sustain the action of the chief of police or direct the issuance of the license.
(Ordinance 2005-01, sec. 8, adopted 1/11/05)
Every sexually oriented business shall display its business license at all times in an open and conspicuous place on the premises of the business.
(Ordinance 2005-01, sec. 9, adopted 1/11/05)
(a) 
Should any sexually oriented business have more than one location, then a separate license shall be required for each location.
(b) 
All sexually oriented business licenses shall expire on December thirty-first of the year in which issued. No proration of license fees shall be made for issuance of a license during the course of the year.
(c) 
Sexually oriented business licenses shall not be renewed without following the procedures for applying for the original license.
(Ordinance 2005-01, sec. 10, adopted 1/11/05)
(a) 
The chief of police shall suspend a sexually oriented business license upon the licensee or the manager of the business being charged with any disqualifying offense or upon any employee of the business being charged with any disqualifying offense in connection with the business. This suspension period shall coincide with the time during which the charges remain pending.
(b) 
The chief of police shall suspend a license for a period not to exceed 90 days if he determines that a licensee or an employee of the licensee has:
(1) 
Engaged in excessive use of alcoholic beverages while on the sexually oriented business premises;
(2) 
Refused to allow an inspection of the sexually oriented business premises as authorized by this article;
(3) 
Knowingly permitted gambling by any person on the sexually oriented business premises; or
(4) 
Demonstrated inability to operate or manage a sexually oriented business in a peaceful and law-abiding manner, this necessitating action by law enforcement officers.
(c) 
The chief of police shall revoke a sexually oriented business license for the remainder of its term upon the licensee or the manager of the business being convicted of any disqualifying offense or upon any employee being convicted of any disqualifying offense in connection with the operation of the business.
(d) 
The chief of police shall revoke a sexually oriented business license for the remainder of its term if the chief of police determines that:
(1) 
A cause of suspension in subsection (b) of this section occurred and the license was suspended within the preceding 12 months;
(2) 
A licensee gave false or misleading information in the material submitted to the chief of police during the application process;
(3) 
A licensee or an employee has knowingly allowed possession, use, or sale of controlled substances on the premises;
(4) 
A licensee or an employee has knowingly allowed prostitution on the premises;
(5) 
A licensee or an employee knowingly operated the sexually oriented business during a period of time when the licensee’s license was suspended;
(6) 
On two or more occasions within a 12-month period, a person or persons committed a disqualifying offense occurring in or on the licensed premises for which a conviction has been obtained, 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 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.
(e) 
The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(f) 
Subsection (d)(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.
(g) 
The chief of police shall notify the licensee of any suspension or revocation at least ten days in advance of its effective date. Within ten days of receipt of a notice of suspension or revocation, a licensee may appeal the police chief’s action to the city council by filing a written notice with the city secretary setting forth specifically the grounds for the appeal. The city secretary shall provide for a hearing on the appeal at the earliest convenient regular council meeting and shall notify the licensee by certified mail of the date and time of the hearing. The issue at the hearing shall be whether grounds exist under subsections (a) through (e) of this section for the suspension or revocation. The council shall by majority vote either sustain or rescind the action of the chief of police.
(Ordinance 2005-01, sec. 11, adopted 1/11/05)
Sexually oriented business licenses are not transferable.
(Ordinance 2005-01, sec. 12, adopted 1/11/05)