Stanton Municipal Code Ch. 5.54 Adult-Oriented Business Licenses

Note: Prior ordinance history: Ord. 799.

It is the purpose and intent of this chapter to license the owners of adult-oriented businesses to promote the health, safety and general welfare of the citizens of the city. The provisions of this chapter have neither the purpose nor effect of imposing a limitation or restriction on the content of any communicative materials or expressive conduct that is protected by the First Amendment of the United States Constitution or the relevant provisions of the California State Constitution.

(Ord. 891 § 2, 2004)

Words and phrases defined in Chapters 5.58, 5.64, 5.65 and Section 20.460.040 of this code shall have the same meanings in this chapter. In addition, the following words and phrases shall have the meanings set forth below:

"Adult-oriented live entertainer license"

means the license prescribed by Chapter 5.58 of this code.

Appeal.

Wherever reference to an "appeal" being filed or available to be filed, such right of appeal shall also include the right to appeal administrative determinations made by the city manager or city clerk pursuant to this chapter to the city council.

"City clerk"

means the city clerk of the city or the designee of the city clerk.

"City manager"

means the city manager of the city or the designee of the city manager.

"Major interest holder"

means a person who owns more than a ten percent interest in an entity other than a partnership or corporation.

"Major shareholder"

means a stockholder who owns more than ten percent of the stock of a corporation.

"Name"

means a natural person's legal name and any nicknames and aliases used within the preceding five years.

"Of age"

means a natural person who is at least twenty-one years old if alcoholic beverages are served or sold, or are proposed to be served or sold, on the premises. "Of age" means a natural person who is at least eighteen years old if alcoholic beverages are not served or sold, and are not proposed to be served or sold, on the premises.

(Ord. 891 § 2, 2004; Ord. 986 § 15, 2011)

A. Except as provided in subsection B of this section, a person commits a misdemeanor, subject to punishment in accordance with Section 1.10.010 et seq., of this code or any other provision of applicable law, if he or she owns or operates an adult-oriented business within the city that is open for business to the public or any portion thereof, unless the person has a valid adult-oriented business license issued by the city pursuant to this chapter for the particular business.

B. A person who lawfully owned an adult-oriented business in the city prior to the date that this chapter becomes applicable to that person commits a misdemeanor, subject to punishment in accordance with Section 1.10.010 et seq., of this code or other applicable law, if the business is open for business more than six months after this chapter becomes applicable to the person, unless the person has a valid adult-oriented business license issued by the city pursuant to this chapter for the particular business.

C. The fact that a person or business possesses any other valid license, permit or certificate issued by the city, the county or the state does not exempt the person from the requirement of obtaining an adult-oriented business license pursuant to this chapter. A person or business that owns or operates an adult-oriented business and possesses any other city or county license, permit or certificate shall comply with the requirements and provisions of this chapter and Chapter 5.65 of this code and as well as the requirements and provisions of such other license, permit or certificate.

(Ord. 986 § 16, 2011)

A. An application for an adult-oriented business license must be made on a form provided by the city. The application shall be filed in the office of the city clerk and shall be accompanied by a filing fee, as established by resolution of the city council.

1. Because adult-oriented business licenses are nontransferable and because persons who are not of age are not allowed to patronize such businesses, the application shall include the following information:

a. If the applicant is one or more natural persons, each person's name and street address, together with documentary proof that the person is of age;

b. If the applicant is a partnership, the partnership's complete name and address, whether the partnership is general or limited, the date and place of its formation, and the name and street address of each partner, together with documentary proof that the partnership was duly formed and is authorized to conduct business in California and documentary proof that all of the partners are of age;

c. If the applicant is a corporation, the corporation's complete name and address, the date and place of its incorporation, the name and capacity of each officer and director, the name and capacity of each officer and director, the name and address of each major shareholder, together with documentary proof that the corporation is in good standing under the laws of the state of California and documentary proof that all of the officers, directors and major shareholders are of age; and

d. If the applicant is a legal entity other than a corporation, the entity's complete name and address, the date and place of its formation, the name and capacity of each major interest holder, together with documentary proof that the entity was duly formed and is authorized to conduct business in California, a copy of the instrument pursuant to which the entity was formed, and documentary proof that all of the major interest holders are of age.

2. The application shall also include the following information:

a. A description of the type of adult-oriented business for which the license is requested, the location of the business by street address and assessor's parcel number, and the legal description of the lot or parcel on which the business will operate;

b. Whether or not alcoholic beverages will be served or sold on the premises;

c. The fictitious name, if any, of the adult-oriented business, together with documentary proof of registration of the fictitious name;

d. The name and street address of the owner of the lot or parcel on which the adult-oriented business will be located and the zoning of the lot or parcel;

e. The address to which notice is to be mailed and, at the applicant's option, a telephone number;

f. A sketch or diagram showing the complete interior configuration of the business, including without limitation the location of the restrooms, manager's station(s) and any stage or booths, and the floor level illumination. The sketch or diagram need not be professionally prepared, but it must be drawn to a designated scale drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches; and

g. A sketch or diagram of the lot or parcel on which business will be located showing the complete configuration of the lot or parcel, including without limitation the lay-out of all buildings, off-street parking, walkways and the primary and any secondary entrances to the interior premises of the business, required security systems, any stage for performances, patron seating and the ground level illumination.

3. If the applicant is a natural person, that person shall sign the application under penalty of perjury. If the applicant is other than a natural person, a partner, officer, director, major shareholder or major interest holder of the legal entity shall sign the application under penalty of perjury.

4. If the applicant does not own the lot or parcel on which the adult-oriented business will operate, the owner shall consent to the filing of the application by signing and dating the application.

5. The application shall be filed in duplicate consisting of the original and one clear photocopy of the original, including all attachments.

B. 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 herein which information 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 identification number, and/or personal financial data. The city council in adopting the application and licensing and/or permit system set forth herein has determined in accordance with Government Code Section 6255 that the public interest in disclosure of the information set forth above 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 city clerk shall cause to be obliterated from any copy of a license application made available to any member of the public, the information set forth above.

(Ord. 891 § 2, 2004; Ord. 986 § 17, 2011)

A. The city manager shall investigate the application and grant or deny issuance of a license within twenty days after the application was filed in the office of the city clerk. Otherwise, the license shall be deemed granted by operation of law and the applicant shall be entitled to engage in the proposed activity subject to the remaining provisions of this chapter and all other applicable provisions of this code.

B. The city manager shall issue the license unless he or she finds one or more of the following to be true:

1. The applicant failed to pay the filing fee required by this chapter;

2. The application is incomplete in any material way;

3. The application contains any false, misleading or fraudulent statement of material fact and the person who signed the application under penalty of perjury knew or should have known that the statement was false, misleading or fraudulent;

4. The applicant or any of the applicant's partners, officers, directors, major shareholders or major interest holders is not of age;

5. The adult-oriented business does not comply with all of the requirements of this code;

6. The applicant is operating the adult-oriented business without a license in violation of Section 5.54.014 of this code;

7. The applicant or any of the applicant's partners, officers, directors, major shareholders or major interest holders was the holder of an adult-oriented business license, adult-oriented live entertainer license or figure model license that was revoked by the city within two years prior to the date that the current application was filed in the office of the city clerk, or the revocation of any similar type of permit or license by any other regulatory agency within the same time period;

8. The applicant or any of the applicant's partners, officers, directors, major shareholders or major interest holders was a partner, officer, director, major shareholder or major interest holder in a partnership, corporation or other legal entity that was the holder of an adult-oriented business license that was revoked by the city, or other similar permit or license revoked by any regulatory time period, within two years prior to the date that the current application was filed in the office of the city clerk; and

9. The location of the proposed adult-oriented business was the site of an adult-oriented business that had its adult-oriented business license revoked by the city within one year prior to the date that the current application was filed in the office of the city clerk.

C. The license shall state on its face the name of the person or persons to whom it is issued, the expiration date, the type of adult-business, and the street address of the adult-oriented business. The license shall be posted in a conspicuous place at or near the entrance to the adult-oriented business so that it may be easily read during business hours.

D. Within two business days after the city manager acted on the application or within two business days after the license was deemed granted by operation of law, the city clerk shall send to the applicant, by certified mail, return receipt requested, written notice of the disposition of the application. If the license was granted, the notice shall include the license. If the license was denied, the notice shall include the city manager's written findings of fact.

(Ord. 891 § 2, 2004; Ord. 986 §§ 18, 19, 2011)

A. If the application for an adult-oriented business license was denied by the city manager, the applicant shall have ten calendar days from the date the notice of the disposition was deposited in the mail pursuant to subsection D of Section 5.54.018 of this chapter within which to appeal the denial of the application to the city council. If the tenth calendar day falls on a day the city is closed, the time shall be extended to the next business day. The appeal shall be filed in writing in the office of the city clerk and shall be accompanied by a filing fee, as established by resolution of the city council.

B. If the appeal is timely and properly filed together with the filing fee, the city clerk shall mail notice of the date, time and place of a de novo hearing before the city council to the applicant at least ten days prior to the hearing. The hearing shall be commenced at the earliest possible date authorized by law, but in no event later than thirty days after the date that the appeal was filed. Within forty-five days after the date the appeal was filed, the city council shall act on the appeal, using the findings set forth in subsection B of Section 5.54.016 of this chapter. Otherwise, the license shall be deemed granted by operation of law, and the applicant shall be entitled to engage in the proposed activity subject to the remaining provisions of this chapter and all other applicable provisions of this code.

C. Within two business days after the city council acted on the appeal or within two business days after the license was deemed granted by operation of law, the city clerk shall send to the applicant, by certified mail, return receipt requested, written notice of the disposition of the appeal. If the license was granted, the notification shall include the license. If the license was denied, the notification shall include the city council's findings of fact.

D. The action of the city council shall be final and conclusive, unless timely judicial review is sought pursuant to Code of Civil Procedure Section 1094.8.

(Ord. 891 § 2, 2004; Ord. 986 § 20, 2011)

A. Each adult-oriented business license issued pursuant to this chapter and each renewal thereof shall expire on December 31st of the year in which it was granted.

B. An application to renew a license must be made on a form provided by the city, and the form shall be signed by the applicant under penalty of perjury. The application shall be filed with the city clerk and shall be accompanied by a filing fee, as established by resolution of the city council.

C. If there has been no change in any of the information set forth in the application that was filed pursuant to Section 5.54.016 of this chapter, the renewal application shall consist of a statement to that effect. If there has been a change in the information, the renewal application shall include all of the information required by Section 5.54.016.

D. The renewal application shall be filed at least thirty days, but not more than sixty days, prior to the expiration of the current license and shall be processed in accordance with the provisions of Sections 5.54.018 and 5.54.019 of this chapter.

E. If the renewal application is timely and properly filed together with the filing fee, the license shall be extended until the decision of the city manager or the city council on appeal becomes final: provided that if timely judicial review is sought, as provided in subsection C of Section 5.54.019, the license shall be extended pending a final decision on the merits by the trial court. As used in this section, final decision on the merits does not include rehearing or appellate procedure.

(Ord. 891 § 2, 2004; Ord. 986 § 21, 2011)

Any adult-oriented business license shall be immediately void if the licensee attempts to transfer the license to another person. The attempted transfer of the license to another person includes the transfer of ownership or control of the adult-oriented business by any of the following:

A. The sale, lease or sublease of an adult-oriented business;

B. The transfer of securities or other evidence of ownership which constitutes more than a ten percent interest in the business, whether by sale, exchange, or similar means; or

C. The establishment of a trust, gift, or similar legal device, which transfers the ownership or control of the business, except for transfer by bequest or other operation of law upon the death of the person possessing the ownership or control.

(Ord. 891 § 2, 2004)

Upon determining that any of the reasons specified in Section 5.54.023 or Section 5.54.024 exists, the city manager shall issue a notice of intent to suspend or revoke the adult-oriented business license. The notice shall include a factual statement of the reason for the action. The notice shall also include a statement that the suspension or revocation shall become effective on the twenty-first day after the notice was deposited in the U.S. mail, unless the licensee files an appeal in accordance with Section 5.54.025 prior to that date. The notice shall include a written statement verified by oath or affirmation attesting to the date that the decision was mailed. The city clerk shall mail the notice to the licensee, certified mail, return receipt requested, addressed to the licensee at the address shown on the application, within two business days after it is issued by the city manager.

(Ord. 891 § 2, 2004)

A. An adult-oriented business license shall be suspended if any one or more of the following exists:

1. The adult-oriented business is being operated without any other license, permit or certificate required by this title or by Title 20 of this code or by other applicable law;

2. The licensee or a manager of the adult-oriented business failed to keep the exterior of the premises of the business, including the parking lot thereof, free and clear of all litter;

3. The licensee or a manager of the adult-oriented business refused to allow inspection of the premises in accordance with this chapter; and

4. There exists any of the grounds for revocation, as set forth in Section 5.54.024 of this chapter, but the city manager in his/her sole discretion, or the city council on appeal in its sole discretion, decides to impose a suspension in lieu of revocation.

B. The suspension shall be for a period of up to thirty days or until the violation is corrected, whichever is longer.

C. As used in this section, licensee shall include any partner, officer, director, major shareholder or major interest holder of the person in whose name the application for the adult-oriented business license was made.

(Ord. 891 § 2, 2004; Ord. 986 § 22, 2011)

An adult-oriented business license shall be revoked and no new adult-oriented business license may be requested by the licensee for any location in the city within two years following the revocation or by any other person for that same location within one year following the revocation, if one or more of the following exists:

A. The application for the adult-oriented business license contains any false, misleading or fraudulent statement of material fact and the licensee knew or should have known that the statement was false, misleading or fraudulent;

B. The application for other license, permit or certificate required by any other chapter of this code or any application, report or record required to be filed with any county or state agency, including but not limited to the county health department and the State Department of Alcoholic Beverage Control, in connection with the operation of the adult-oriented business contains any false, misleading or fraudulent statement of material fact and the adult-oriented business licensee knew or should have known that the statement was false, misleading or fraudulent;

C. The licensee or any manager, employee or independent contractor of the adult-oriented business violated any provision of this chapter or of Chapter 5.58, Chapter 5.62 or Chapter 5.65 of this code while on the premises of the business, including the parking lot thereof;

D. The licensee or any manager, employee or independent contractor of the adult-oriented business has been convicted of, or pleaded nolo contendere to, a felony in a court of competent jurisdiction in conjunction with, or as a result of, the operation of the business;

E. The licensee or the manager on duty was intoxicated or under the influence of a controlled substance while on the premises of the adult-oriented business;

F. The licensee or a manager of the adult-oriented business knew, should have known, or could have taken reasonable steps to prevent or discourage the business, including the parking lot thereof, from being used as a place where sexual intercourse, sodomy, oral copulation, masturbation, prostitution, or a lewd act has occurred;

G. The licensee or a manager of the adult-oriented business knew, should have known, or could have taken reasonable steps to prevent or discourage the business, including the parking lot, from being used as a place where gambling has occurred;

H. The licensee or a manager of the adult-oriented business knew, should have known, or could have taken reasonable steps to prevent or discourage the business, including the parking lot thereof, from being used as a place where a controlled substance was illegally consumed, sold or exchanged;

I. There have been two or more suspensions of an adult-oriented business license within an eighteen-month period; or

J. The licensee continued to operate the adult-oriented business during a suspension of the adult-oriented business license.

(Ord. 891 § 2, 2004; Ord. 986 §§ 23—25, 2011)

A. The licensee shall have twenty days from the date the notice of intent was mailed to the licensee to appeal the suspension or revocation to the city council. The appeal shall be filed in writing in the office of the city clerk and shall be accompanied by a filing fee, as established by resolution of the city council. An appeal that is timely and properly filed together with the filing fee shall stay suspension or revocation of the license until the city council renders a decision on the appeal.

B. The appeal shall set forth the specific grounds for the appeal and the relief or action requested from the city council.

C. An appeal that was timely and properly filed together with the filing fee shall be heard by the city council, except that the city council, in its sole discretion, may appoint a hearing officer to conduct the hearing. The hearing shall be commenced at the earliest possible date authorized by law, but in no event later than thirty days from the date the appeal was filed. The city clerk shall mail notice of the date, time and place of the hearing to the appellant at least ten days prior to the hearing. If a hearing officer is appointed, the hearing officer's duties shall be limited to taking testimony, ruling on evidentiary issues and preparing a summary of the evidence for transmittal to the city council. The city council shall independently review the record of the hearing and allow the appellant and the city manager, and their respective representatives, to argue to the record prior to acting on the appeal.

D. The hearing may be continued from time to time. The hearing shall be limited to the specific grounds set forth in the written appeal. The appellant and the city manager shall have the right to offer testimonial, documentary and tangible evidence bearing on those grounds, be represented by counsel, and confront and cross-examine witnesses. Any relevant evidence that is the sort of evidence upon which reasonable persons are accustomed to reply in the conduct of serious affairs shall be admitted. The city council, or the hearing officer, may establish additional procedures not in conflict with the provisions of this subsection.

E. Within forty-five days after the appeal was filed, the city council shall act on the appeal and the city clerk shall deposit in the U.S. mail, certified mail, return receipt requested, addressed to the appellant at the address shown on the application, written notice of the decision, including a factual statement of the findings upon which the decision was based. Otherwise, the appeal shall be deemed sustained and the licensee shall be entitled to continue to operate the adult-oriented business subject to the provisions of this chapter and all other applicable laws and city ordinances and regulations.

F. In acting on the appeal, the city council may affirm, reverse or modify the decision of the city manager and may take any action which might have been legally taken by the city manager in the first instance.

G. The decision of the city council shall be final and conclusive, unless timely judicial review is sought pursuant to Code of Civil Procedure Section 1094.8. In the event a timely action or proceeding is brought pursuant to Section 1094.8, the decision to suspend or revoke the license shall be stayed automatically pending a final decision on the merits by the trial court. As used in this subsection, final decision on the merits does not include rehearing or appellate procedures.

(Ord. 891 § 2, 2004; Ord. 986 § 26, 2011)

Each applicant and every licensee shall permit representatives of the city and representatives of designated entities providing law enforcement, fire protection, public health, and building and safety services to the city to inspect the premises of an adult-oriented business for the purpose of insuring compliance with the provisions of this chapter and Chapter 5.65 of this code at any time the premises are open for business, provided reasonable and normal business operations shall not be interfered with and the inspection is conducted in the same manner as an inspection for other businesses in the city.

(Ord. 891 § 2, 2004)

The location of an adult-oriented business shall be as specified in Section 20.460.040 of this code.

(Ord. 891 § 2, 2004)

The filing fee for an application, for a renewal application and for an appeal shall be set by resolution of the city council.

(Ord. 891 § 2, 2004)

A. It is unlawful and a misdemeanor, subject to punishment in accordance with Section 1.10.010 et seq., of this code or other applicable law, for any person to alter, modify, change, or amend a license, or any provision thereof, issued pursuant to this chapter; provided that the city manager may correct any error that appears on the face of a previously issued license by re-issuing the license.

B. It is unlawful and a misdemeanor, subject to punishment in accordance with Section 1.10.010 et seq., of this code or other applicable law, for any person to forge an adult-oriented business license.

(Ord. 986 § 27, 2011)

A person who operates or causes to be operated an adult-oriented business without a valid adult-oriented business license of this code is subject to a suit for injunction as well as criminal prosecution.

(Ord. 891 § 2, 2004)