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A. The town council may suspend a license for a period of not to exceed six (6) months or revoke any license granted pursuant to this chapter upon a finding of any of the following factors:

1. That repeated disturbances of the public peace have occurred within the licensed establishment or upon any parking areas, sidewalks, accessways or grounds within the neighborhood of the licensed establishment involving patrons, employees, or the licensee;

2. That the licensee or any employee thereof has illegally offered for sale or illegally allowed to be consumed or possessed upon the licensed premises, or upon any parking areas, sidewalks, walkways, accessways or grounds immediately adjacent to the licensed premises, narcotics or dangerous drugs or fermented malt beverages or any malt, vinous or spirituous liquors;

3. That the licensee or manager or his or her designee has not been present upon the licensed premises at all times that adult entertainment is being provided;

4. That adult entertainment was offered at the licensed establishment during hours prohibited by section 9-8-15 of this chapter;

5. That the licensee, manager, or an employee of the licensed establishment has allowed a patron to engage in a public display of indecency in violation of section 9-8-16 of this chapter or has allowed a patron or employee to engage in an act of prostitution or negotiation for an act of prostitution within the licensed establishment or upon any parking areas, sidewalks, accessways, or grounds immediately adjacent to the licensed establishment, when the licensee, manager, or employee knew or should have known such displays or acts were taking place;

6. That the licensee or manager made a false statement or gave false information in connection with an application for a license or a renewal of a license;

7. That the licensee, manager, or employee of the licensed establishment violated or permitted a violation of any provision of this chapter, including the standards of conduct set out in section 9-8-16 of this chapter;

8. That the licensee, manager, or any employee of the licensed establishment is under the age of twenty one (21) years;

9. That the licensee, in the case of a corporation or limited liability entity, is not in good standing or authorized to do business in the state;

10. That the licensee, manager or an employee of the licensed establishment knowingly operated the adult business during a period of time when the adult business license was suspended;

11. That the licensee is delinquent in payment to the town or other taxing entity of any taxes or fees past due related to the operation of the licensed establishment;

12. That the licensee, manager, or an employee of the licensed establishment has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, or masturbation to occur within the licensed premises;

13. That a licensee or any other individual listed pursuant to subsection 9-8-6A of this chapter has been convicted of or pleaded nolo contendere to any crime involving pandering, prostitution, obscenity, or any other crime that is connected with operating another sexually oriented business, in any jurisdiction, within five (5) years from the date of the conviction to the date of the application; or

14. On two (2) or more occasions within a twelve (12) month period, a person or persons committed a crime, as specified in subsection A13 of this section, for which a conviction or plea of nolo contendere has been obtained, and the person or persons were employees of the licensed establishment at the time the offenses were committed;

15. That the licensee, manager or an employee of the licensed establishment has refused to allow an authorized inspection of the licensed premises.

B. In determining the action to be taken as provided in this section, the town council shall consider the following aggravating and mitigating circumstances:

1. Whether the license has been previously suspended or revoked.

2. Whether the licensee was warned that the conduct involved could lead to a suspension or revocation.

3. Whether the cause for suspension or revocation involves one or several violations.

4. Whether the violation(s) is technical or substantive in nature.

5. The extent to which the licensee, licensee's agents and employees, as opposed to patrons, were involved in the violation(s).

6. The extent to which the licensee or licensee's employees had knowledge of the violation(s).

7. Any corrective or remedial action the licensee has taken to prevent a similar violation(s) in the future.

8. Whether the violation(s) involved the commission of a crime, and if so, the degree of felony or misdemeanor involved.

9. The extent to which the violation(s) caused personal injuries or property damage.

10. Whether the licensee has paid damages or made restitution to any person or entity damaged by the violation(s).

11. The extent to which the violation(s) posed a significant risk to the health, safety and welfare of persons on or off of the licensed premises.

12. The length of time over which the violation(s) extended.

13. The extent to which the licensee or licensee's employees realized a financial gain from the violation(s).

14. The number of employees, patrons, or both involved in the violation(s).

15. The nature and extent of enforcement action taken by the town or any law enforcement to detect the violation(s).

16. With respect to an adult business which presents live, nude entertainment, the involvement of any persons under twenty one (21) years of age in the violation(s).

17. The extent to which the licensee or licensee's employees have attempted to cover up the violation(s), destroy evidence or otherwise hinder the investigation and detection of the violation(s).

18. The extent to which the licensee and licensee's employees have acted in good faith.

C. Nothing in this chapter shall prohibit the town from taking any other enforcement action provided for by this code, the laws of the state or of the United States.

D. Licensee shall be entitled to a hearing before the town council if the town seeks to suspend or revoke an adult business license based on a violation of this chapter.

E. The following procedures shall be followed with respect to an action to suspend or revoke an adult business license:

1. When there is probable cause to believe that a licensee has violated or permitted a violation of this chapter to occur in or near the licensed establishment, a written complaint shall be filed with the town manager or his or her designee setting forth the circumstances of the violation.

2. The town manager or his or her designee shall provide a copy of the complaint to the licensee, together with notice to appear before the town council for the purpose of a hearing on a specified date to show cause why the licensee's license should not be suspended or revoked.

3. If the town council determines that a violation did occur, the town council shall issue an order suspending or revoking the license within thirty (30) days after the hearing is concluded, based on the findings of fact. A copy of the order shall be mailed by certified mail to the licensee at the address on the license not later than ten (10) days after such order is issued.

F. In the event of suspension, revocation, or cessation of business, no portion of the license fee shall be refunded.

G. When a license has been revoked, the revocation shall continue for one year, and the licensee shall not be issued an adult business license for one year from the date on which revocation became effective. A new application shall be required at that time. (Ord. 30, Series 1996)