Grand Terrace Municipal Code Ch. 5.84 Adult Business Regulatory License

It is the purpose and intent of this Chapter to regulate the operations of adult businesses, which tend to have judicially recognized adverse secondary effects on the community, including, but not limited to, increases in crime in the vicinity of adult businesses; decreases in property values in the vicinity of adult businesses; increases in vacancies in residential and commercial areas in the vicinity of adult businesses; interference with residential property owners' enjoyment of their properties when such properties are located in the vicinity of adult businesses as a result of increases in crime, litter, noise, and vandalism; and the deterioration of neighborhoods. Special regulation of these businesses is necessary to prevent these adverse secondary effects and the blighting or degradation of the neighborhoods in the vicinity of adult businesses while at the same time protecting the First Amendment rights of those individuals who desire to own, operate or patronize adult businesses. It is, therefore, the purpose of this Chapter to establish reasonable standards for the licensing of adult businesses.

(Ord. No. 269, § 4, 8-13-2013)

A. "Adult arcade" shall mean a business establishment to which the public is permitted or invited and where coin, card or slug operated or electronically, electrically or mechanically controlled devices, still or motion picture machines, projectors, videos, holograms, virtual reality devices or other image-producing devices are maintained to show images on a regular or substantial basis, where the images so displayed are distinguished or characterized by an emphasis on matter depicting or describing "specified sexual activities" or "specified anatomical areas." Such devices shall be referred to as "adult arcade devices."

B. "Adult booth/individual viewing area" shall mean a partitioned or partially enclosed portion of an adult business used for any of the following purposes:

1. Where a live or taped performance is presented or viewed, where the performances and/or images displayed or presented are distinguished or characterized by their emphasis on matter depicting, describing, or relating to "specified sexual activities" or "specified anatomical areas;" or

2. Where "adult arcade devices" are located.

C. "Adult business" shall mean:

1. A business establishment or concern that as a regular and substantial course of conduct sells or distributes "adult oriented material" or "sexually oriented merchandise", or which offers to its patrons products, merchandise, services or entertainment characterized by an emphasis on matters depicting, describing, or relating to "specified sexual activities" or "specified anatomical parts," but not including those uses or activities which are preempted by State law;

2. Any business establishment or concern which as a regular and substantial course of conduct performs or operates as an adult bookstore, adult theater, adult motion picture arcade, adult model studio, adult arcade, adult retail store, adult cabaret, adult motel or hotel, adult modeling/photography studio, adult motion picture theater, sex club, sexual encounter center, any business providing adult live entertainment, et cetera; or

3. Signs, advertisements or an establishment name including verbal or pictorial allusions to sexual stimulation or gratification or by references to "adult," "XXX" or similar terms, shall be considered evidence that the establishment holds itself out to the public as a sexually oriented business.

D. "Adult cabaret" shall mean a business establishment (whether or not serving alcoholic beverages) that as a regular and substantial course of conduct features "adult live entertainment," persons who appear in a state of nudity or semi-nude condition, or which holds itself out to the public where adult live entertainment is available.

E. "Adult cabaret dancer" shall mean any person who is an employee or independent contractor of an "adult cabaret" or "adult business" and who, with or without any compensation or other form of consideration, performs as a sexually oriented dancer, exotic dancer, stripper, go-go dancer or similar dancer whose performance on a regular and substantial basis focuses on or emphasizes the adult cabaret dancer's breasts, genitals, and/or buttocks, but does not involve exposure of "specified anatomical areas" or depicting or engaging in "specified sexual activities." "Adult cabaret dancer" does not include a patron.

F. "Adult hotel/motel" shall mean a "hotel" or "motel" (as defined in the Zoning Code) that is used for presenting on a regular and substantial basis images through closed circuit television, cable television, still or motion picture machines, projectors, videos, holograms, virtual reality devices or other image-producing devices that are distinguished or characterized by the emphasis on matter depicting or describing or relating to "specified sexual activities" or "specified anatomical areas"; and/or rents, leases or lets any room for less than a six-hour period, or rents, leases or lets any single room more than twice in any 24-hour period.

G. "Adult live entertainment" shall mean any physical human body activity, whether performed or engaged in, alone or with other persons, including but not limited to singing, walking, speaking, dancing, acting, posing, simulating, wrestling or pantomiming, in which: (1) the performer or adult cabaret dancer exposes to public view, without opaque covering, "specified anatomical areas"; and/or (2) the performance or physical human body activity that depicts, describes, or relates to "specified sexual activities" whether or not the specified anatomical areas are covered.

H. "Adult modeling/photography studio" shall mean a business establishment where a live person who appears seminude, in a state of nudity, or who displays specified anatomical areas is provided to be observed, sketched, drawn, photographed, filmed, painted, sculpted, or otherwise similarly depicted by other persons, whether or not paying for such services. "Adult modeling studio" does not include schools maintained pursuant to standards set by the Board of Education of the State of California, or that of an individual artist studio established solely for conduct of the artist.

I. "Adult motion picture theater" shall mean a business establishment, with or without a stage or proscenium, where, on a regular and substantial basis and for any form of consideration, material is presented through films, motion pictures, video cassettes, slides, laser disks, digital video disks, holograms, virtual reality devices, or similar electronically-generated reproductions that is characterized by the depiction or description of "specified sexual activities" or "specified anatomical areas."

J. "Adult oriented material" shall mean accessories, paraphernalia, books, magazines, laser disks, compact discs, digital video disks, photographs, prints, drawings, paintings, motion pictures, pamphlets, videos, slides, tapes, holograms or electronically generated images or devices including computer software, or any combination thereof that is distinguished or characterized by its emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas." "Adult oriented material" shall include "sexually oriented merchandise."

K. "Adult retail store" shall mean a business establishment having as a regular and substantial portion of its stock in trade, "adult oriented material" for sale or rent. Includes a bookstore, video store or store selling adult novelty items.

L. "Establishment of an adult business" shall mean any of the following:

1. The opening or commencement of any "adult business" (as defined above) as a new business;

2. The conversion of an existing business, whether or not an "adult business," to any "adult business;"

3. The addition of any "adult business" to any other existing "adult business;"

4. The relocation of any "adult business;" or

5. Physical changes that expand the square footage of an existing "adult business" by more than ten percent.

M. "Licensee" or "license holder" shall mean a person in whose name a license to operate an adult business has been issued, as well as the person listed as an applicant on an application for a license; and in the case of a performer or manager, a person in whose name a performer or manager's license has been issued authorizing employment in an adult oriented business.

N. "Manager" shall mean any person designated by the owner or operator of an adult oriented business to be responsible for the operation of such business at a particular location at a particular time.

O. "Nudity" or "state of nudity" shall mean the showing of the human male or female genitals, pubic area, anus, or buttocks with less than a fully opaque fabric covering; the showing of the female breast with less than a fully opaque fabric covering of any part of the areola; or the showing of completely or opaquely covered, by fabric, male genitals in a discernibly turgid state

P. "Owner" shall mean any of the following: (1) the sole proprietor of an adult business; (2) any general partner of a partnership that owns and operates an adult business; (3) the owner of a controlling interest in a corporation or L.L.C. that owns and operates an adult business; or (4) the person designated by the officers of a corporation or the members of an L.L.C. to be the license holder for an adult business owned and operated by the corporation.

Q. "Performer" shall mean a person who is an employee or independent contractor of an adult business or any other person who, with or without any compensation or other form of consideration, provides adult live entertainment or models for patrons of an "adult business".

R. "Regular and substantial course of conduct" and "regular and substantial portion of its business" means any adult business where one or more of the following conditions exist:

1. The business devotes more than 15 percent or 100 square feet of the retail floor area, whichever is less, to adult oriented material; or

2. The business or concern presents any type of live entertainment characterized by an emphasis on specified sexual activity or specified anatomical parts, or performers, models or employees appearing in public dressed only in lingerie; or

3. At least 25 percent of the gross receipts of the business are derived from the sale, trade, rental, display or presentation of services, products, adult material, or entertainment which are characterized by an emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas.

S. "Religious facility" shall mean a permanent facility exclusively used on a regular basis for religious assembly, such as customarily occurs in a synagogue, temple, mosque, or church, or convent, or monastery.

T. "School" shall mean any child care facility or an institution of learning for minors, whether public or private, which offers instruction in those courses of study required by the California Education Code or which is maintained pursuant to standards set by the State Board of Education. This definition includes a nursery school, kindergarten, elementary school, junior high school, senior high school or any special institution of education, but it does not include a vocational or professional institution of higher education, including a community or junior college, college or university

U. "Semi-nude" or in a "semi-nude condition" shall mean a state of dress in which clothing covers no more than the genitals, pubic region, and areola or nipple of the female breast. This definition includes the entire lower portion of the human female breast.

V. "Sex club" shall mean any establishment not primarily dedicated to providing overnight lodging accommodations, including a private club that permits persons to engage in specified sexual activities in any public or semipublic portion of the establishment or which provides any private room to persons more than once in a 20-hour period in which persons are permitted to engage in specified sexual activities. For the purpose of this Section, a "public or semipublic portion of an establishment" shall mean any portion of the establishment in which licensees, invitees, visitors or guests of the establishment or its members are permitted access and which is let, leased or rented more than once in a 20-hour period to persons who are entitled to exclusive use of the room. The above notwithstanding, a "sex club" is also any place which represents itself to any person or group of persons as a place for persons to engage in specified sexual activities.

W. "Sexual encounter center" shall mean a business or enterprise that offers for any form of consideration physical contact in the form of wrestling or tumbling between two or more persons, when one or more of the persons is in a state of nudity or semi-nudity.

X. "Sexually oriented merchandise" shall mean:

1. Sexually oriented implements, paraphernalia, or novelty items, such as, but not limited to: dildos, auto sucks, sexually oriented vibrators, benwa balls, inflatable orifices, anatomical balloons with orifices, simulated and battery operated vaginas, and similar sexually oriented devices which are designed or marketed primarily for the stimulation of human genital organs or sado-masochistic activity or distinguished or characterized by their emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas"; or

2. Lingerie presented in combination with other merchandise contained within this definition or the definition of adult oriented material; leather goods marketed or presented in a context to suggest their use for sadomasochistic practices; or condoms or sexual lubricants presented in combination with other merchandise contained within this definition or the definition of adult oriented material.

Y. "Specified anatomical areas" shall mean and include any of the following:

1. Less than completely and opaquely covered, and/or simulated to be reasonably anatomically correct, even if completely and opaquely covered human:

a. Genitals, pubic region;

b. Buttocks, anus; or

c. Female breasts below a point immediately above the top of the areola; or

2. Human male genitals in a discernibly turgid state, even if completely or opaquely covered.

Z. "Specified criminal activity" shall mean any of the following offenses:

1. Prostitution or promotion of prostitution; dissemination of obscenity; sale, distribution or display of harmful material to a minor; sexual performance involving a child; possession or distribution of child pornography; public lewdness; indecent exposure; indecency with a child; engaging in organized criminal activity; sexual assault; molestation of a child; gambling; distribution of a controlled substance; state penal code; or any similar offenses to those described in this Subsection under the criminal or penal code of other states or countries;

2. For which:

a. 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 for a misdemeanor offense;

b. 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

c. 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 convictions are of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any 24-month period.

3. The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant.

AA. "Specified sexual activities" shall mean and include any of the following, irrespective of whether performed directly or indirectly through clothing or other covering:

1. Human genitals in a state of sexual stimulation or arousal; and/or

2. Acts of human masturbation, sexual stimulation or arousal; and/or

3. Use of human or animal ejaculation, sodomy, oral copulation, coitus or masturbation; and/or

4. Masochism, erotic or sexually oriented torture, beating, or the infliction of pain, or bondage and/or restraints; and/or

5. Human excretion, urination, menstruation, vaginal or anal irrigation; and/or

6. Fondling or other erotic touching of human genitals, pubic region, buttock, or female breast.

(Ord. No. 269, § 4, 8-13-2013)

The provisions of this Chapter regulating adult businesses are not intended to be exclusive, and compliance therewith shall not excuse non-compliance with any other provisions of the Grand Terrace Municipal Code and/or any other regulations pertaining to the operation of businesses as adopted by the City Council.

(Ord. No. 269, § 4, 8-13-2013)

A. All adult businesses are subject to the adult business regulatory license requirements of this Chapter as well as all other applicable ordinances of the City, County, and laws of the State of California.

B. It shall be unlawful for any person to establish, operate, engage in, conduct, or carry on any adult business within the City of Grand Terrace unless the person first obtains, and continues to maintain in full force and effect, an adult business regulatory license as required in this Chapter. Any occurrence of the "establishment of an adult business", as defined in this Chapter, shall require a new application for an adult business regulatory license.

C. It shall be prima facie evidence that an adult business has not obtained an adult business regulatory license if such business fails to post the adult business regulatory license in the manner required herein.

D. Reserved.

E. A conditional use permit, if required, must be obtained and inaugurated before a license application is accepted.

(Ord. No. 269, § 4, 8-13-2013)

No application shall be processed without the required application fee paid in full, as set by resolution of the City Council.

(Ord. No. 330, § 30, 5-12-2020; Ord. No. 269, § 4, 8-13-2013)

A. All applications for an adult business regulatory license shall be made with the Grand Terrace Community Development Department, except that sex clubs shall be prohibited within the City.

B. The fact that a license applicant possesses other types of City licenses does not exempt the applicant from the requirement of obtaining an adult business regulatory license.

C. At the time of application for an adult business regulatory license the license applicant shall obtain a "Request for Live Scan Service" form or similar form from the Community Development Department and shall have live scan fingerprinting conducted by an authorized live scan service. The license applicant shall bear all costs associated with the completion of a California Department of Justice and Federal Bureau of Investigation background check.

D. All applicants shall file a complete application on a form provided by the Community Development Department. Such application shall contain the following information and/or be accompanied by the following documents:

1. The applicant's legal name, any aliases, mailing address for receipt of notices, home address, home and office telephone numbers, occupation, date and place of birth, driver's license number, social security number, and State issued tax identification number;

2. Written proof that the applicant is at least 18 years of age;

3. If the applicant is an entity other than an individual, each individual who has a ten percent or greater interest in the entity proposing to own and/or operate the business must provide the same information as the individual applicant and sign the license application as an applicant. In addition:

a. If the applicant is a corporation, the corporation shall state its complete name, the date of its incorporation, evidence that the corporation is in good standing under the laws of the state, the names and capacity of all officers and directors, and the name of the registered corporate agent and the address of the registered office for service or process; or

b. If the license applicant is a partnership, the partners shall state the partnership's complete name, address, the names of all partners, and whether the partnership is general or limited; and shall attach a copy of the partnership agreement, if any;

4. A recent photograph of the applicant(s);

5. A description of the type of adult business for which the license is requested and the proposed address where the adult business will operate;

6. If the property owner is other than the applicant, the name of the property owner and a notarized statement signed by the property owner stating that applicant has entered into a contract to acquire, lease or otherwise control the site or structure for use as an adult business;

7. If the license applicant intends to operate the adult business under a name other than that of the license applicant, the license applicant shall file the fictitious name of the adult business and show proof of registration of the fictitious name;

8. Whether the applicant has been convicted of a specified criminal activity, as defined in this Chapter, and, if so, the specified criminal activity involved and the date, place, and jurisdiction of each. The City shall verify this through a criminal background check which shall be conducted at the applicant's expense prior to issuance and/or renewal of the license;

9. Whether the applicant has ever had a license previously issued under this Chapter or the predecessor to this Chapter or other similar adult business ordinances from another city or county denied, suspended or revoked, including the name and location of the adult business for which the license was denied, suspended or revoked, as well as the date of the denial, suspension or revocation; and whether the applicant has been a partner in a partnership or an officer, director or principal stockholder of a corporation that is licensed under this Chapter or the predecessor to this Chapter whose license has previously been denied, suspended or revoked, including the name and location of the adult business for which the license was denied, suspended or revoked as well as the date of denial, suspension or revocation;

10. Whether the applicant holds any other licenses under this Chapter, or its predecessor, or other similar adult business ordinance from another city or county and, if so, the names and locations of such other licensed businesses;

11. A sketch or diagram showing the interior configuration of the premises, including a statement of the total floor area occupied by the adult business. The sketch or diagram need not be professionally prepared but must be oriented to the north or some other designated street or object and 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. Any modification to the diagram shall be submitted prior to commencement of any construction, or occupancy of the structure if construction is not proposed; and

12. A statement signed under penalty of perjury by the applicant that the applicant has personal knowledge of the information contained in the application and that the information contained therein is true and correct; that the applicant grants permission to the City to perform any necessary background checks on persons or businesses listed on the application; and that the applicant has read all provisions of the Grand Terrace Municipal Code regulating adult businesses.

E. Notwithstanding the fact that an application filed hereunder may be a public record under Government Code Section 6250 et seq., certain portions of such application contain information vital to the effective administration and enforcement of the licensing and/or permit scheme established in this Section which is personal, private, confidential, or the disclosure of which could expose the applicant to a risk of harm. Such information includes, but is not limited to, the applicant's residence address and telephone number, the applicant's date of birth and/or age, the applicant's driver's license and/or Social Security Number, and/or personal financial data.

The City Council in adopting the application and licensing and/or permit system set forth in this Section has determined in accordance with Government Code Section 6255 that the public interest in disclosure of the information set forth in this Section is outweighed by the public interest in achieving compliance with this Chapter by ensuring that the applicant's privacy, confidentiality, or security interests are protected. The Community Development Director shall cause to be obliterated from any copy of a completed license application made available to any member of the public, the information set forth in this Section.

(Ord. No. 269, § 4, 8-13-2013)

A. The completeness of an application for an adult business regulatory license shall be determined by the Community Development Director within five City business days of the date of receipt of the application. If the Community Development Director determines that the application is incomplete, the Community Development Director shall immediately notify in writing the applicant of such fact and the reasons therefore, including any additional information necessary to render the application complete. Such writing shall be deposited in the U.S. mail, postage prepaid, immediately upon determination that the application is incomplete. The applicant shall have ten calendar days from the date of the notice to submit additional information to render the application complete. The applicant's failure to submit the additional information within this time period renders the application null and void. Within five City business days following the receipt of a supplemental or amended application, the Community Development Director shall again determine whether the application is complete. Evaluation and notification shall occur as provided in this Subsection until such time as the application is found to be complete. Once the application is found to be complete, the applicant shall be notified within five City business days of that fact. If an applicant submits two consecutive incomplete applications, the applicant shall be notified in writing that a new application must be filed with the Community Development Director as set forth in this Chapter.

B. Upon receipt of a complete application, the Community Development Director shall immediately transmit a copy of the application to the appropriate reviewing agencies. Not later than 15 calendar days from the date the application is determined to be complete; the aforementioned reviewing agencies shall report the results of their investigation to the Community Development Director.

C. Notwithstanding any provisions in this Section regarding the occurrence of any action within a specified period of time, the applicant may request additional time beyond that provided for in this Section or may request a continuance regarding any decision or consideration by the City of the pending application. Extensions of time sought by an applicant shall not be considered a delay on the part of the City or constitute failure by the City to provide for prompt decisions on applications.

D. Within 20 City business days from the date the application is determined to be complete, the Community Development Director shall approve or deny the application in accordance with this Chapter, and so notify the applicant as follows:

1. The Community Development Director shall write or stamp "Approved" or "Denied" on the application and date and sign such notation.

2. If the application is denied, the Community Development Director shall attach to the application a statement of the reasons for the denial.

3. If the application is approved, the Community Development Director shall attach to the application an adult business regulatory license.

4. The documents specified in Subsections D.1., 2. and 3. of this Section shall be deposited in the United States mail, first class postage prepaid, addressed to the applicant at the address specified in the application. All notices given under this Subsection shall be deemed given upon the date they are deposited in the United States mail.

F. The issuance of the license shall be subject to approval of any pending decision on a conditional use permit required by the zoning code pursuant to Chapter 18.83 (conditional use permits) or any appeal taken from such decision, and shall not become effective unless and until the conditional use permit is granted.

G. If the Community Development Director is unable to act on the application within the required time period following a determination of completeness, the Director shall notify the applicant in writing and issue a provisional license, which shall expire following approval or denial of the application and final disposition of any appeal proceedings as provided in this Chapter. The provisions of this Chapter shall fully apply to a provisional license.

(Ord. No. 269, § 4, 8-13-2013)

A. The Community Development Director shall approve the issuance of a regular license to an applicant, unless it is determined by a preponderance of the evidence that any one of the following findings is true:

1. The applicant is under 18 years of age, unless alcoholic beverages are to be served on premises, then the applicant is under 21 years of age subject to Alcoholic Beverage Control ("ABC") regulations.

2. An applicant has failed to provide information reasonably necessary for issuance of the license or gave false, fraudulent or untruthful information on the application form.

3. An applicant has been denied a license by the City to operate an adult-oriented business within the 12 months preceding the filing of the application.

4. The applicant has been convicted of a specified criminal activity, as defined in this Chapter, either within the State or in another jurisdiction.

5. The applicant has, within the past five years, been convicted in an administrative enforcement action or court action of violating an adult-oriented business ordinance.

6. The applicant has had an adult oriented business license, or comparable license, of any type revoked within the past five years or one suspended within the past three years, immediately preceding the date of application; the fact that the applicant has appealed such action shall have no effect on the disqualification of the application.

7. The adult business does not comply with the City's zoning requirements as to its underlying zoning designation and other location requirements of City codes.

8. The license fee required by this Chapter has not been paid.

B. The approved adult business regulatory license shall be posted in a conspicuous place at or near the adult business's entrance so that it may be easily read at any time.

(Ord. No. 269, § 4, 8-13-2013)

A. It is a violation of this Chapter for a licensee to operate an adult oriented business under the authority of an adult business regulatory license at any place other than the address of the adult oriented business stated in the application upon which the license was issued.

B. It is a violation of this Chapter for a licensee to transfer ownership or control of an adult business regulatory license to another person or entity unless and until the transferee first provides the Community Development Director the information as set forth in this Chapter at least 30 days prior to the transfer. The Community Development Director shall review the application in accordance with this Chapter.

C. It is a violation of this Chapter for a licensee to transfer an adult business regulatory license when the Community Development Director has notified the licensee that the license has been suspended or revoked or that such action is pending.

D. Any attempt to transfer a license either directly or indirectly in violation of this Section is void, and the license shall be deemed revoked.

(Ord. No. 269, § 4, 8-13-2013)

A. A license issued under this Chapter shall be issued for a period of one year and is required to be renewed annually.

B. A license issued under this Chapter shall expire on the last day of the calendar month during which the licenses was issued or renewed during the previous year.

C. The license, if granted, shall state on its face the name of the person to whom it is granted, the expiration date, the address of the adult business and the classification of adult business for which the license is issued.

D. Within 30 calendar days of any change in the information originally submitted with the license application, a license holder shall provide the Community Development Director with a written statement supplementing or amending the information required by this Chapter. Failure to submit such changes shall be grounds for suspension of the license.

(Ord. No. 269, § 4, 8-13-2013)

A permittee, applicant or substantially related entity wherein the new application is made by an individual or previous entity exercising ownership, management or oversight or control of the adult business, cannot re-apply for an adult business regulatory license for a particular location within one year from the date of prior denial.

(Ord. No. 269, § 4, 8-13-2013)

A. A license may only be renewed by the licensee's filing with the Community Development Department a written request for renewal on a form provided by the City, accompanied by a nonrefundable application licensing fee set forth in the schedule of fees established from time to time by the City Council, and a copy of the license to be renewed.

B. The request for renewal shall be made at least 30 calendar days before the expiration date of the regular license, and the information required in Section 5.84.060 of this Chapter shall be provided. When a renewal request is made less than 30 calendar days before the expiration date, the expiration shall not be stayed.

C. The Community Development Director shall act upon applications for license renewal as provided for in applications for licenses.

D. A licensee subject to denial of a renewal application shall have the right to appeal the suspension or revocation under the procedures provided in this Chapter.

(Ord. No. 269, § 4, 8-13-2013)

A. On determining that grounds for license suspension or revocation exist, the Community Development Director shall furnish written notice of the proposed suspension or revocation to the license holder. Such notice shall set forth the time and place of a hearing and the ground or grounds upon which the hearing is based, the pertinent Code sections, and a brief statement of the factual matters in support thereof. The notice shall be mailed, postage prepaid, addressed to the last known address of the license holder, or shall be delivered to the license holder personally, at least ten days prior to the hearing date. Hearings pursuant to this Section shall be conducted by the Community Development Director or his/her designee, which may include a third party hearing officer. Hearings pursuant to this Section shall be conducted in accordance with procedures established by the Community Development Director, at a minimum, shall include the following:

1. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing upon the issues and may be represented by counsel.

2. The Community Development Director or his/her designee shall not be bound by the formal rules of evidence.

3. Any hearing under this Section may be continued for a reasonable time for the convenience of a party or a witness at the request of the license holder. Extensions of time or continuances sought by a license holder shall not be considered a delay on the part of the City or constitute failure by the City to provide for prompt decisions on license suspensions or revocations.

4. The decision of the Community Development Director or his/her designee may be appealed in accordance with this Chapter.

B. The Community Development Director may suspend and order an adult business closed pending a suspension or revocation hearing if he or she determines that the closure is necessary to protect the public health and safety.

(Ord. No. 269, § 4, 8-13-2013)

A. A license may be suspended, revoked or conditions may be imposed on a license based on any one of the following causes arising from the acts or omissions of the license holder, or an employee, independent contractor, partner, director, or manager of the license holder:

1. Licensee operated the adult business or allowed the performance of adult live entertainment in a location not approved for such activity;

2. The license is being used to conduct an activity different from that for which the license was approved;

3. Licensee did not provide a written statement supplementing or amending the information of the license application as required by this Chapter;

4. Licensee violated any requirement of the Zoning Code related to the regulation of adult businesses;

5. Licensee refused City or other governmental agency access to the premises and records;

6. Licensee allowed a person under the age of 18 years in or on the premises;

7. Licensee reconfigured the interior of the premises without approval from the City;

8. Licensee demonstrated an inability to operate or manage the business in a peaceful and law-abiding manner thus necessitating action by law enforcement officers;

9. Licensee violated any of the "standards of conduct and operation" contained in Chapter 18.70 of the Municipal Code;

10. The licensee's license has been suspended more than once;

11. The licensed business was operated during a period of time when the license was suspended;

12. The building, structure, equipment, or location used by the adult business fails to comply with all provisions of these regulations and this Section relating to adult businesses, including the adult business operational standards contained in Chapter 18.70 of the Municipal Code, and all other applicable building, fire, electrical, plumbing, health, and zoning requirements of the Grand Terrace Municipal Code;

13. The license holder has failed to obtain or maintain all required City, County and/or State licenses;

14. The license holder has made any false, misleading, or fraudulent statement of material fact in the application for an adult business license;

15. Licensee transferred, or attempted to transfer, a license issued under this Chapter to another person or entity;

16. The licensee or an individual employed by, or performing in, the adult business (whether classified as an employee or independent contractor) has been convicted of sex-related offenses that occurred in or on the licensed premises and was employed by, or performing in, the adult business at the time the offenses were committed;

17. That the use for which the approval was granted has ceased to exist or has been suspended for six months or more;

18. That the transferee/new owner of an adult business or adult business license failed to comply with the requirements of this Chapter;

19. The licensee, partner, director, or manager has knowingly allowed or permitted, or has failed to make a reasonable effort to prevent the occurrence of any of the following on the premises of the adult business; or a licensee has been convicted of violating any of the following State laws on the premises of the adult business:

a. Any act of unlawful sexual intercourse, sodomy, oral copulation, or masturbation.

b. Use of the establishment as a place where unlawful solicitations for sexual intercourse, sodomy, oral copulation, or masturbation openly occur.

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

d. The occurrence of acts of lewdness, assignation, or prostitution, including any conduct constituting violations of Sections 315, 316, 318 or Subdivision (b) of Section 647b of the California Penal Code.

e. Any 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.

f. Any act constituting a felony involving the sale, use, possession, or possession for sale of any controlled substance specified in Sections 11054, 11055, 11056, 11057, or 11058 of the California Health & Safety Code.

g. An act or omission in violation of any of the requirements of this Chapter if such act or omission is with the knowledge, authorization, or approval of the license holder or is as a result of the license holder's negligent supervision of the employees or independent contractors of the adult business. This includes the allowance of activities that are or become a public nuisance which includes the disruptive conduct of business patrons whether on or immediately off the premises where such patrons disturb the peace, obstruct traffic, damage property, engage in criminal conduct, violate the law and otherwise impair the free enjoyment of life and property; or

20. The conditional use permit for the adult business has been revoked.

(Ord. No. 269, § 4, 8-13-2013)

A. After holding the hearing in accordance with the provisions of this Chapter, if the Community Development Director or his or her designee finds and determines that there are grounds for suspension, revocation or the addition of conditions, the Community Development Director shall impose one of the following:

1. Suspension of the license for a specified period not to exceed six months;

2. Revocation of the license; or

3. The addition of reasonable conditions necessary to permit the adult business to continue to operate in a manner that would eliminate the grounds for suspension or revocation that have been found to exist.

B. The Community Development Director shall render a written decision that shall be hand delivered or overnight mailed to the license holder within five business days of the public hearing.

C. In the event a license is revoked pursuant to this Section, another adult business regulatory license to operate an adult business shall not be granted to the licensee or an entity related to the licensee within 12 months after the date of such revocation.

D. A licensee subject to suspension or revocation shall have the right to appeal the suspension or revocation under the procedures provided in this Chapter.

E. A licensee that has had a license revoked shall be subject to the same license criteria required of any applicant applying for a new license.

(Ord. No. 269, § 4, 8-13-2013)

A. After approval, denial, suspension or revocation of a license, any affected person may appeal the decision by filing a written petition with the City Clerk requesting a hearing on the denial, suspension, or revocation of the license within 15 calendar days of the date of the Community Development Director's decision. The City Council shall serve as the Appeals Board. The appeal shall be scheduled within 20 calendar days of the date the petition is received in the office of the City Clerk. The City Clerk shall give written notice to the applicant of the time and place for the hearing on the applicant's appeal at least ten calendar days prior to the scheduled date of hearing.

B. During the appeal of a license denial, suspension, or revocation, the applicant shall be permitted to operate with a provisional license until the final disposition of the appeal proceedings before the City Council. The provisions of this Chapter shall fully apply to a provisional license.

C. Consideration of an appeal of the decision shall be at a public hearing and which hearing shall occur within 30 days of the filing or initiation of the appeal.

D. The City Council's action on the appeal of the decision shall be by a majority vote of the members present and upon the conclusion of the de novo public hearing, the City Council shall grant or deny the appeal. The City Council's decision shall be final and conclusive and shall be rendered to the licensee in writing by registered or certified mail within ten City business days of the hearing.

E. In reaching its decision, the City Council shall not be bound by the formal rules of evidence.

F. Notwithstanding any provisions in this Section regarding the occurrence of any action within a specified period of time, the applicant may request additional time beyond that provided for in this Section or may request a continuance regarding any decision or consideration by the City of the pending appeal. Extensions of time sought by applicants shall not be considered delay on the part of the City or constitute failure by the City to provide for prompt decisions on applications.

G. Failure of the City Clerk to render a decision to grant or deny an appeal of a license denial within the time frames established by this Section shall be deemed to constitute a denial of the license.

H. The time for a court challenge to a decision of the City Council is governed by California Code of Civil Procedure § 1094.8.

I. Notice of the City Council's decision and its findings shall include citation to California Code of Civil Procedure § 1094.8.

J. Any applicant or license holder whose license has been denied pursuant to this Section shall be afforded prompt judicial review of that decision as provided by California Code of Civil Procedure § 1094.8.

(Ord. No. 269, § 4, 8-13-2013)

Each owner, operator, manager, employee or independent contractor of an adult business or other person in charge of an adult business shall permit representatives of the Community Development Department, including City Planning, Building and Safety, and Code Compliance Divisions, County Sheriff's Department, and County Fire Department, to inspect those portions of the adult business open to the public or to portions of the public, for the purpose of insuring compliance with operating standards of this Chapter applicable to adult businesses at any time it is occupied or open for business, as well as to inspect, for compliance with the provisions of this Chapter, those portions of the adult business that may not be open to the public, but only as to those portions directly relating to operating and regulatory provisions applicable to the licenses issued pursuant to this Chapter, such as recording equipment for required security cameras. Such inspections shall be conducted in a reasonable manner, such that the inspection minimizes any interference with or delay of business operations, as reasonably practicable to the purposes of the inspection; shall be conducted by the City's Code Enforcement Manager, designee, or other City employee charged with the responsibility of monitoring compliance of adult businesses with this Chapter; and shall only be conducted as necessary to insure compliance with the regulatory provisions of this Chapter relating to adult business and/or performer permits and licenses. Nothing in this Section shall permit or authorize warrantless searches of property on the premises, except as otherwise permitted by law.

(Ord. No. 269, § 4, 8-13-2013)

Any adult-oriented business established, operated, or maintained contrary to the provisions of this Chapter is unlawful and a public nuisance, and the City Attorney may commence an action or actions, proceeding or proceedings for the abatement, removal, and enjoinment thereof in the manner provided by law, and shall take such other steps and shall apply to such court or courts as may have jurisdiction to grant such relief as will abate or remove such adult-oriented business and restrain and enjoin any person from establishing, operating, or maintaining an adult-oriented business contrary to the provisions of this Chapter or such other laws.

(Ord. No. 269, § 4, 8-13-2013)