(a) 
A person commits an offense if he/she operates a sexually oriented business without a valid license, issued by the city for the particular type of business.
(b) 
The applicant must be qualified according to the provisions of this article.
(c) 
If a person who wishes to operate a sexually oriented business is an individual, he/she must fully execute the application for a license. 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. Each applicant must be qualified under section 4.09.032 and each applicant shall be considered a licensee if a license is granted.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.305)
(a) 
The city manager shall approve the issuance of a license to an applicant within thirty (30) days after receipt of an application unless he/she finds one or more of the following to be true:
(1) 
An applicant is under eighteen (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 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. The fact that a conviction is being appealed shall have no effect.
(5) 
The license fee required 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 that he/she is unable 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 section 4.09.004, 4.09.034, 4.09.039, 4.09.061, 4.09.062, 4.09.063, 4.09.064, 4.09.065, or 4.09.005 hereof.
(8) 
An applicant or an applicant’s spouse has been convicted of a crime:
(A) 
Involving:
(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 minor;
g. 
Sexual performance by a child;
h. 
Possession 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) 
Incest, solicitation of a child, or harboring a runaway child as described in chapter 25 of the Texas Penal Code; or
(v) 
Criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses;
(B) 
For which:
(i) 
Less than two (2) 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 (5) 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 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 or more misdemeanor offenses or combination of misdemeanor offenses occurring within any twenty-four (24) month period.
(b) 
The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or the applicant’s spouse.
(c) 
An applicant who has been convicted or whose spouse has been convicted of an offense listed in subsection (a)(8)(A) may qualify for a sexually oriented business license only when the time period required by subsection (a)(8)(B) has elapsed.
(d) 
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. 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 adopting 1993 Code; 1993 Code, sec. 4.306)
The annual fee for a sexually oriented business license is in the amount established by city council.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.307; Ordinance adopting 2017 Code)
(a) 
An applicant or licensee shall permit representatives of the 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/her agent or employee commits an offense if he/she refuses to permit a lawful inspection of the premises by a representative of the police department 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.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.308)
(a) 
Each license shall expire one (1) year from the date of issuance and may be renewed only by making application as provided in section 4.09.031. Application for renewal should be made at least thirty (30) days before the expiration date. Applications made less than thirty (30) days before the expiration date will have no effect on the expiration of the license.
(b) 
When the city manager denies renewal of a permit, the applicant shall not be issued a license for one (1) year from the date of denial. If, subsequent to denial, the city manager finds that the basis for the denial of the renewal has been corrected, the applicant may be granted a license if at least ninety (90) days have elapsed since the date denial became final.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.309)
The city manager shall suspend a license for a period not to exceed thirty (30) days if he/she determines that a licensee or an employee of a licensee has:
(1) 
Violated or is not in compliance with section 4.09.004, 4.09.034, 4.09.039, 4.09.061, 4.09.062, 4.09.063, 4.09.064, 4.09.065, or 4.09.005 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 adopting 1993 Code; 1993 Code, sec. 4.310)
(a) 
The city manager shall revoke a license if a cause of suspension in section 4.09.036 occurs and the license has been suspended within the preceding twelve (12) months.
(b) 
The city manager shall remove [revoke] a license if he/she determines that:
(1) 
A licensee gave false or misleading information in the material submitted to the city manager 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 4.09.032(a)(8)(A) for which the time period required in section 4.09.032(a)(8)(B) has not elapsed;
(6) 
On two (2) or more occasions within a twelve (12) month period, a person or persons committed an offense occurring in or on the licensed premises of a crime listed in section 4.09.032(a)(8)(A), 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;
(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; or
(9) 
A licensee has refused to permit an inspection of the premises by the city manager or his/her designee.
(c) 
The fact that a conviction is being appealed shall have no effect on the revocation of the license.
(d) 
Subsection (b)(7) 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.
(e) 
When the city manager 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 revocation became effective. If, subsequent to revocation, the city manager 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 under subsection (b)(5), an applicant may not be granted another license until the appropriate number of years required under section 4.09.032(a)(8)(B) has elapsed.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.311)
(a) 
If the city manager denies the issuance of a license or the renewal of a license, he or she shall send to the applicant, by certified mail, return receipt requested, written notice of his or her action and the right to an appeal. The aggrieved party may appeal the decision of the city manager to the city council. The filing of an appeal stays the action of the city.
(b) 
The applicant may, not later than ten (10) calendar days after receiving notice of the denial, file with the city secretary a written request for a hearing before the city council.
(c) 
A hearing by the city council may proceed if a quorum is present. The city council shall hear and consider evidence offered by any interested person.
(d) 
The city council may, in its discretion, grant an exemption from the locational restrictions of this article if the following is found:
(1) 
That the location of the proposed sexually oriented business will not have a detrimental effect on nearby properties or be contrary to the public safety or welfare;
(2) 
That the granting of the exemption will not violate the spirit and intent of this article of the city code;
(3) 
That the location of the proposed sexually oriented business will not downgrade the property values or quality of life in the adjacent areas or encourage the development of urban blight;
(4) 
That the location of an additional sexually oriented business in the area will not be contrary to any program of neighborhood conservation nor will it interfere with any efforts of urban renewal or restoration; and
(5) 
That all other applicable provisions of this article will be observed.
(e) 
The city council shall grant or deny the exemption by majority vote. Failure to reach a majority vote shall result in denial of the exemption. Disputes of fact shall be decided on the basis of a preponderance of the evidence. The decision of the city council regarding the permit appeal is final.
(f) 
If the city council grants the exemption, the exemption is valid for one (1) year from the date of the council’s action. Upon expiration of an exemption, the sexually oriented business is in violation of the locational restrictions until the applicant applies for and receives another exemption.
(g) 
If the city council denies the exemption, the applicant may not re-apply for an exemption until at least twelve (12) months have elapsed since the date of the council’s action.
(h) 
The grant of an exemption does not exempt the applicant from any other provisions of this article other than the locational restrictions.
(Ordinance adopting 1993 Code; 1993 Code, sec. 4.312)
A licensee shall not transfer his/her license 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 adopting 1993 Code; 1993 Code, sec. 4.313)