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A. Sexually Oriented Business Operator Permit.

1. Permit Required. It is unlawful for any person to operate, engage in, conduct or carry on any sexually oriented business unless the owner of such business first obtains from the director of community development, and continues to maintain in full force and effect, a sexually oriented business operator permit for such business.

2. Persons Eligible. The owner of a proposed sexually oriented business shall be the only person eligible to obtain a sexually oriented business operator permit for such business. The owner shall not be eligible to obtain a sexually oriented business operator permit unless the owner is at least 18 years of age.

3. Application Requirements. The following shall be submitted to the director of community development at the time of application for a sexually oriented business operator permit:

a. A completed application form signed by (i) the applicant; and (ii) either the record owner of the property or the lessor of the premises (if the business premises are leased to the applicant business) where the sexually oriented business is to be conducted.

b. The applicant’s fingerprints on a form provided by the Los Angeles Sheriff’s Department, and two color photographs, taken within six months prior to the date of the application, clearly showing the applicant’s face. Any fees for the photographs and fingerprints shall be paid by the applicant.

c. A letter of justification that describes the proposed sexually oriented business and how it will satisfy the requirements of this section.

d. A site plan designating the building and/or unit proposed for the sexually oriented business. The site plan shall include a dimensional interior floor plan that depicts how the business will comply with the requirements of this section. The site plan shall also include a diagram of the off-street parking areas required by Chapter 20.64 CMC.

e. The names of all known owners, employees, independent contractors, and other persons who will perform at the sexually oriented business and who are required by this section to obtain a sexually oriented business entertainer permit.

f. A statement signed by the applicant certifying under penalty of perjury that all of the information submitted in connection with the application is true and correct.

g. A nonrefundable application fee in an amount set by resolution of the city council.

4. If the director of community development determines that the applicant has completed the application improperly, the director shall promptly notify the applicant of such fact and shall return the application unprocessed. On request of the applicant, the director shall grant the applicant an extension of time of 10 days to complete the application properly. The time period for granting or denying the requested permit shall be stayed during the period in which the applicant is granted an extension of time.

B. Approval or Denial of Permit. The director of community development shall, within 20 city business days of the filing of a complete application, approve and issue the sexually oriented business operator permit if the requirements of this section have been met; otherwise the permit shall be denied. Notice of the approval or denial of the permit shall be given to the applicant in writing by first class mail, postage prepaid, deposited in the course of transmission with the United States Postal Service within three city business days of the date of such decision. If the application is denied, the director shall attach to the notice a statement of the reasons for the denial. The times set forth in this section shall not be extended except upon the written consent of the applicant. Any interested person may appeal the decision of the director to the hearing officer in accordance with CMC 20.84.160.

C. Nontransferable.

1. No person shall operate a sexually oriented business under the authority of a sexually oriented business operator permit at any place other than the address of the sexually oriented business stated in the application for the permit.

2. No sexually oriented business operator permit issued pursuant to this section shall be transferable.

3. Any attempt to transfer a sexually oriented business operator permit is hereby declared invalid and the permit shall automatically become void effective the date of such attempted transfer.

D. Gross Receipts Records. The owner of a sexually oriented business shall maintain complete records that can be segregated with regard to all transactions involving products, merchandise, services, or entertainment that are characterized by an emphasis on specified sexual activities or the exposure of specified anatomical areas. Such records shall be sufficient to establish the percentage of gross receipts of the business that is derived from such transactions. Such records shall be maintained for at least three years after the end of the calendar year for which the records were created.

E. Register and Permit Number of Entertainers.

1. Maintenance. Every owner of a sexually oriented cabaret and every owner of a sexually oriented theater shall maintain on the premises of such business a register of all entertainers who perform at the business. Such register shall list each entertainer’s legal name, stage name(s), and sexually oriented business entertainer permit number.

2. Annual Filing. Every owner of a sexually oriented cabaret and every owner of a sexually oriented theater shall annually file with the director of community development a copy of the register of entertainers who perform at the business. Such filing shall be accompanied by a statement, signed by the owner, that all of the information in the register is true and correct.

F. Employment of Persons without Permits. No permittee, owner, operator, or other person in charge of a sexually oriented business shall allow any person to perform at the business unless such person is in possession of a valid sexually oriented business entertainer permit.

G. Display of Permit. Every sexually oriented business shall display at all times during business hours the permit issued pursuant to the provisions of this section for such business. The permit shall be displayed in a conspicuous place so that it may be readily seen by all persons entering the sexually oriented business.

H. Inspections. The owner, operator, or other person in charge of a sexually oriented business shall allow city officers and their authorized representatives to conduct unscheduled inspections of the premises of the sexually oriented business for the purpose of ensuring compliance with the law at any time the sexually oriented business is open for business or is occupied.

I. Conditions. The requirements of this section shall be deemed conditions of sexually oriented business operator permit approvals. Failure to comply with every such requirement shall be grounds for suspension or revocation of a sexually oriented business operator permit.

J. Sexually Oriented Business Entertainer Permit.

1. Permit Required. It is unlawful for any person to perform at a sexually oriented business unless such person first obtains from the director of community development, and continues to maintain in full force and effect, a sexually oriented business entertainer permit.

2. Persons Eligible. No person less than 18 years of age shall be eligible for a sexually oriented business entertainer permit.

3. Application Requirements. The following shall be submitted to the director of community development at the time of application for a sexually oriented business entertainer permit:

a. A completed application form signed by: (i) the applicant; and (ii) the owner of the sexually oriented business in which the applicant intends to perform.

b. The applicant’s legal name and any other names (including stage names and aliases) used by the applicant.

c. Age, date, and place of birth.

d. Height, weight, hair, and eye color.

e. Present residence address and telephone number.

f. Whether the applicant has ever been convicted of:

i. Any of the offenses set forth in Sections 266a, 266b, 266c, 266e, 266g, 266h, 266i, 315, 316, 647(a), 647(b), and 647(d) of the California Penal Code as those sections now exist or may hereafter be amended or renumbered.

ii. The equivalent of any of the aforesaid offenses if committed outside the state of California.

g. Whether such person is or has ever been licensed or registered as a prostitute, or otherwise authorized by the laws of any other jurisdiction to engage in prostitution in such other jurisdiction. If any person mentioned in this section has ever been licensed or registered as a prostitute, or otherwise authorized by the laws of any other state to engage in prostitution, a statement shall be submitted giving the place of such registration, licensing or legal authorization, and the inclusive dates during which such person was so licensed, registered, or authorized to engage in prostitution.

h. State driver’s license or identification number.

i. Satisfactory written evidence that the applicant is at least 18 years of age.

j. The applicant’s fingerprints on a form provided by the Los Angeles Sheriff’s Department, and two color photographs, taken within six months prior to the date of the application, clearly showing the applicant’s face. Any fees for the photographs and fingerprints shall be paid by the applicant.

k. A nonrefundable application fee in an amount set by resolution of the city council.

4. If the director of community development determines that the applicant has completed the application improperly, the director shall promptly notify the applicant of such fact and shall return the application unprocessed. On request of the applicant, the director shall grant the applicant an extension of time of 10 days to complete the application properly. The time period for granting or denying the requested permit shall be stayed during the period in which the applicant is granted an extension of time.

K. Grounds for Denial.

1. The applicant has knowingly made any false, misleading, or fraudulent statement of material fact in the application or in any report or document required to be filed with the application.

2. The applicant is under 18 years of age.

3. The sexually oriented business entertainer permit is to be used for performing in a business prohibited by state or city law.

L. Approval or Denial of Permit. The director of community development shall, within four city business days of the filing of a complete application, approve and issue the sexually oriented business entertainer permit if there are no grounds for denial; otherwise, the permit shall be denied. Notice of the approval or denial of the permit shall be given to the applicant in writing by first class mail, postage prepaid, deposited in the course of transmission with the United States Postal Service within three city business days of the date of such decision. If the application is denied, the director shall attach to the notice a statement of the reasons for the denial. The times set forth in this section shall not be extended except upon the written consent of the applicant. Any interested person may appeal the decision of the director to the hearing officer in accordance with CMC 20.84.160.

M. Nontransferable.

1. No sexually oriented business entertainer permit shall authorize the permittee to perform at a sexually oriented business other than the business stated in the application for the permit.

2. No sexually oriented business entertainer permit issued pursuant to this section shall be transferable.

3. Any attempt to transfer a sexually oriented business entertainer permit is hereby declared invalid, and the permit shall automatically become void effective the date of such attempted transfer.

N. Display of Permit. Every entertainer shall have his or her sexually oriented business entertainer permit available for inspection at all times during which such entertainer is on the premises of the sexually oriented business at which the entertainer performs.

O. Grounds for Suspension or Revocation.

1. The director of community development shall suspend or revoke a sexually oriented business operator permit for the following causes:

a. The permittee has knowingly made any false, misleading, or fraudulent statement of material fact in the application, or in any report or record required to be filed with the city.

b. The permittee, or an employee, owner, agent, partner, director, stockholder, or manager of the sexually oriented business, has knowingly failed to comply with any of the requirements of this section.

c. The permittee, or an employee, owner, agent, partner, director, stockholder, or manager of the sexually oriented business, has knowingly allowed or permitted the occurrence of criminal activity on the premises of the sexually oriented business.

d. The permittee, or an employee, owner, agent, partner, director, stockholder, or manager of the sexually oriented business, has committed a misdemeanor or felony in the conduct of the business.

e. The permittee, or an employee, owner, agent, partner, director, stockholder, or manager of the sexually oriented business, has failed to abide by any disciplinary action previously imposed by an authorized city official.

f. The approved use has been substantially enlarged without city approval.

2. The director of community development shall suspend or revoke a sexually oriented business entertainer permit for the following causes:

a. The permittee has knowingly made any false, misleading, or fraudulent statement of material fact in the application for a permit, or in any report or record required to be filed with the city.

b. The permittee has engaged in one of the activities described below while on the premises of a sexually oriented business:

i. Unlawful sexual intercourse, sodomy, oral copulation, or masturbation.

ii. Unlawful solicitation of sexual intercourse, sodomy, oral copulation, or masturbation.

iii. Any conduct constituting a criminal offense that requires registration under Section 290 of the California Penal Code.

iv. Lewdness, assignation, or prostitution, including any conduct constituting violations of Section 315, 316, or 318 or Section 647(b) of the California Penal Code.

v. An act constituting a violation of provisions in the California Penal Code relating to obscene matter or distribution of harmful matter to minors, including but not limited to Sections 311 through 313.4.

vi. Any conduct prohibited by this section.

c. Failure to abide by a disciplinary action previously imposed by an authorized city official.

P. Procedure for Suspension or Revocation.

1. Notice. On determining that grounds for permit revocation exist, the director of community development shall furnish written notice of the proposed suspension or revocation to the permittee. Such notice shall set forth the time and place of a hearing, and the ground(s) upon which the proposed suspension or revocation is based. The notice shall be mailed, postage prepaid, addressed to the last known address of the permittee, or shall be personally delivered to the permittee, at least 10 days prior to the hearing date.

2. Hearing. Hearings shall be conducted in accordance with procedures established by the director of community development. All parties involved shall have a right to: (a) offer testimonial, documentary, and tangible evidence bearing on the issues; (b) be represented by counsel; and (c) confront and cross-examine witnesses. Any relevant evidence may be admitted that is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. Any hearing under this section may be continued for a reasonable time for the convenience of a party or a witness.

3. Penalty. After holding the hearing in accordance with this section, upon determining that there are sufficient grounds for disciplinary action, the director of community development shall impose one of the following penalties:

a. A warning;

b. Suspension of the permit for a specified period not to exceed six months;

c. Revocation of the permit. The director may, in conjunction with the issuance of a warning or the suspension of a permit, order the permittee to take appropriate corrective action.

Q. Appeals.

1. Who May Appeal. Any interested person may appeal the director of community development’s issuance, denial of issuance, suspension, or revocation of a sexually oriented business operator permit or sexually oriented business entertainer permit to the hearing officer in accordance with the provisions of this section.

2. Appeal Period. A written appeal petition must be filed with the city clerk within five working days after the decision of the director; provided, however, that if the five days expire on a date that City Hall is not open for business, then the appeal period shall be extended to the next city business day. Failure to file a timely appeal petition deprives the hearing officer of jurisdiction to hear the appeal.

3. Form of Appeal Petition. The appeal petition must indicate in what way the appellant contends the director’s decision was incorrect or must provide extenuating circumstances that the appellant contends would justify reversal or modification of the director’s decision.

4. Director’s Decision Stayed. The effectiveness of any decision of the director to suspend or revoke a sexually oriented business operator permit or sexually oriented business entertainer permit shall be stayed during: (a) the appeal period set forth in subsection (Q)(2) of this section; and (b) the pendency of any appeal.

5. Notice of Hearing. The hearing officer shall consider a timely filed appeal no later than 30 city business days following the submission of the appeal, unless the appellant consents in writing to an extension. At least 10 calendar days prior to such hearing, written notice thereof shall be mailed to the appellant by U.S. mail with a proof of service attached.

6. Hearing Officer Consideration. Hearings shall be conducted in accordance with procedures established by the hearing officer. All parties involved shall have a right to:

a. Offer testimonial, documentary, and tangible evidence bearing on the issues;

b. Be represented by counsel;

c. Confront and cross-examine witnesses. Any relevant evidence may be admitted that is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. Any hearing under this section may be continued for a reasonable time for the convenience of a party or a witness.

7. Burden of Proof. Unless otherwise specifically provided by law, in any hearing under this section the burden is on the city to prove that the determination of the director that is being appealed is reasonable and not an abuse of discretion.

8. Hearing Officer Decision. The hearing officer shall, within 10 city business days from the submission of the matter for decision, render a written decision supported by findings. No later than three city business days after the hearing officer’s decision, notice of the decision and a copy thereof shall be mailed by first class mail, postage prepaid, to the appellant. Such notice shall contain the substance of the following statement: “You are hereby notified that the time within which judicial review of this decision may be sought is governed by California Code of Civil Procedure Section 1094.6.”

9. Judicial Review. The appellant may seek judicial review of the hearing officer’s decision in accordance with California Code of Civil Procedure Section 1094.5 et seq. or as otherwise permitted by law. (Ord. 690 § 4 (Exh. A), 2018).