§ 9-461. Suspension or revocation of sexually-oriented business licenses and sexually-oriented business performer licenses

A sexually-oriented business license or sexually-oriented business performer license may be suspended or revoked in accordance with the procedures and standards of this section.

(a) On determining that grounds for license revocation exist, the police chief shall furnish written notice of the proposed suspension or revocation to the licensee. 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 licensee, or shall be delivered to the licensee personally, at least ten (10) days prior to the hearing date. Hearings shall be conducted in accordance with procedures established by the police chief, but at a minimum shall include the following:

(1) All parties involved shall have a right to offer testimonial, documentary, and tangible evidence bearing on the issues; may be represented by counsel; and shall have the right to 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. The police chief's decision may be appealed in accordance with section 2-300 et seq. of the Costa Mesa Municipal Code.

(b) A licensee may be subject to suspension or revocation of his/her license, or be subject to other appropriate disciplinary action, for any of the following causes arising from the acts or omissions of the licensee, or an employee, agent, partner, director, stockholder, or manager of a sexually-oriented business:

(1) The licensee has knowingly made any false, misleading or fraudulent statement of material facts in the application for a license, or in any report or record required to be filed with the City.

(2) The licensee, employee, agent, partner, director, stockholder, or manager of a sexually-oriented business has knowingly allowed or permitted, and has failed to make a reasonable effort to prevent the occurrence of any of the following on the premises of the sexually-oriented business, or in the case of a sexually-oriented business performer, the licensee has engaged in one (1) of the activities described below while on the premises of a sexually-oriented business:

(i) Any act of unlawful sexual intercourse, sodomy, oral copulation, or masturbation.

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

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

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

(v) 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.

(vi) Any conduct prohibited by this chapter.

(3) Failure to abide by any disciplinary action previously imposed by an appropriate city official.

(c) After holding the hearing in accordance with the provisions of this section, if the police chief finds and determines that there are grounds for disciplinary action, based upon the severity of the violation, the police chief shall impose one (1) of the following:

(1) A warning;

(2) Suspension of the license for a specified period not to exceed six (6) months;

(3) Revocation of the license.

(Ord. No. 98-11, § 5, 4-20-98)