Section 8-4-8 Denial or Revocation
A. The Town shall deny or revoke a license if a cause of suspension under Section 8-4-7 occurs twice within any 12-month period.
B. The Town shall deny or revoke a license if it determines that any of the following have occurred:
1. A licensee gave false or misleading information in the material submitted during the application process.
2. A licensee has knowingly allowed possession, use, or sale of controlled substances on the premises.
3. A licensee has knowingly allowed prostitution on the premises.
4. A licensee knowingly operated the adult business during a period of time when the licensee’s license was suspended or expired.
5. Except in the case of an adult motel, a licensee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or other sex act to occur in or on the licensed premises.
6. A licensee is delinquent in payment to the Town, County, or State for any taxes or fees past due.
C. If the Town determines that grounds exist to deny or revoke a license under this Article, the Town shall notify the applicant, licensee in writing of the intent to deny or revoke, including the grounds therefore.
D. Within 10 work days of receipt of such notice, the recipient may respond to the notice in writing, stating the reasons why the license should not be denied or revoked. If the Town does not receive a response in the time required, the Town’s notice shall be the final administrative action of denial or revocation. The Town shall send an additional notice to confirm the denial or revocation notice within five business days after the time to respond expires.
E. If the Town receives a response, within 15 business days of receipt, the Town shall either (1) notify the applicant, or licensee of the Town’s withdrawal of the intent to deny or revoke or (2) notify the applicant, or licensee of the date, time and place for a hearing in a manner consistent with Section 8-1-12(B) – (D) above before a hearing officer appointed by the Town Manager or the authorized designee.
F. If the Town fails to send a timely notification either withdrawing the intent to deny or revoke or scheduling a hearing, a decision in favor of the applicant or licensee is deemed made.
G. The hearing shall be conducted not less than 15 or more than 20 business days after the Town’s receipt of the response.
H. If the hearing officer finds no grounds to deny the license, the Town shall issue the license. If the hearing officer finds no grounds to revoke the license, the Town shall withdraw the intent to revoke and deem the license valid. The Town shall take action required under this subsection within five business days of the hearing officer’s written decision.
I. In the case of an intent to deny or revoke a license, the licensee may continue to operate for 15 days after the decision becomes final. The decision shall be deemed final at the end of five business days after it is mailed and shall constitute a final administrative action.
J. All notices under this Section shall be sent by certified mail to the applicant or licensee’s address on file with the Town.
K. When the Town revokes a license, the revocation shall continue for one year, and the licensee shall not be issued an adult business license for one year from the date the revocation became effective. If, subsequent to revocation, the Town finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became effective. (16-01, Amended, 08/18/2016)