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Sec. 10-138. Suspension.

The City Clerk shall suspend a license for a period not to exceed fourteen calendar days if she determines that the licensee, manager or an employee of the licensee has violated or is not in compliance with any of the following: subsections 10-133 (A) (2), (3) or (4), section 10-136, subsection 10-141C., sections 10-142, 10-143, 10-144, or 10-148, or applicable provisions of the Phoenix Zoning Ordinance.

(Ord. No. G-3671, § 2; Ord. No. G-3683, § 35; Ord. No. G-3775, § 8; Ord. No. G-3876, § 7; Ord. No. G-4410, § 12, passed 2-6-2002, eff. 3-8-2002)

Sec. 10-139. Revocation of license.

(A) The City Clerk shall revoke a license if she determines that:

1. A licensee gave false or misleading information on the application.
2. A licensee or manager of an adult motel has knowingly allowed an act of sexual intercourse, oral sexual contact, or sexual contact, including masturbation, to occur in a public place or within public view;
3. A licensee or manager has knowingly allowed prostitution on the premises. The term "prostitution" shall have the meaning as provided in A.R.S. § 13-3211;
4. A licensee, manager or an employee has knowingly operated the sexually oriented business during a period of time when the licensee's license was suspended;
5. A licensee has been convicted of an offense listed in subdivision 10-134 (A) (7) (a) for which the time period required in subdivision 10-134 (A) (7) (b) has not elapsed;
6. On two or more occasions within a twelve month period, a person or persons, while in or on the licensed premises, committed an offense listed in subdivision 10-134 (A) (7) (a), for which a conviction has been obtained, and the person or persons were managers or employees of the sexually oriented business at the time the offenses were committed;
7. A licensee or manager has knowingly allowed any act of sexual intercourse, oral sexual contact, or sexual contact, including masturbation, to occur in the clearly designated area in which patrons may be present or upon a stage; or
8. A licensee has violated subsection 10-141A. or B.
9. The licensee has no legal or equitable right to occupy the licensed premises for purposes of operating the licensed sexually oriented business.

B. The fact that a conviction is being appealed shall have no effect on the revocation of the license.

(C) When the City Clerk revokes a license, the revocation shall continue for one (1) year and the licensee shall not be issued a sexually oriented business license for one (1) year from the date revocation becomes effective. If the basis for the revocation was false or misleading information on the application, and the application has been corrected, the applicant shall be granted a license if at least ninety (90) calendar days have elapsed since the date of the revocation became effective. If, subsequent to revocation, the City Clerk finds that the basis for the revocation has been corrected or abated, the applicant shall be granted a license if at least ninety (90) days have elapsed since the date the revocation became effective. If the license was revoked under subsection (A)(5) of this section, an applicant may not be granted another license until the appropriate number of years required under Section 10-134(A)(7)(b) has elapsed. If the license was revoked pursuant to paragraph A.9. of this section, the first sentence of this subsection shall not apply.

(Ord. No. G-3671, § 2; Ord. No. G-3775, § 7; Ord. No. G-3876, § 6; Ord. No. G-4410, § 11, passed 2-6-2002, eff. 3-8-2002)

Sec. 10-139.01. Revocation of permit.

(A) The City Clerk shall revoke a permit if she determines that:

(1) A permittee gave false or misleading information in the application; or
(2) A permittee has been convicted of an offense listed in Section 10-134(A)(7)(a) for which the time period required in Section 10-134(a)(7)(b) has not elapsed; or

(B) When the City Clerk revokes a permit, the revocation shall continue for one (1) year and the permittee shall not be issued a permit for one (1) year from the date the revocation becomes effective. If the applicant's permit was revoked under subsection (a)(2) of this section, the applicant may not be granted another permit until the appropriate number of years required under Section 10-134(a)(7)(b) has elapsed.

(Ord. No. G-3775, § 10; Ord. No. G-4410, § 14, passed 2-6-2002, eff. 3-8-2002)

Sec. 10-140. Hearing; judicial review.

A. If the City Clerk determines that grounds exist for denial, suspension, or revocation of a license or permit under this article, he shall notify the applicant, licensee or permittee (respondent) in writing of his intent to deny, suspend, or revoke, including a summary of the grounds therefor. The notification shall be by certified mail to the address on file with the City Clerk; by personal service on the applicant, licensee, permittee, or manager; or by personal service on a responsible person at the business address on file with the City Clerk, or at the actual business address, if different. Within ten (10) working days of receipt of such notice, the respondent may provide to the City Clerk in writing a response which shall include a statement of reasons why the license or permit should not be denied, suspended, or revoked and may include a request for hearing. If a response is provided, it must include an address to which all mailings shall be sent. If no address is provided, the appeal shall not be affected and the most recent mailing address of record on file with the City Clerk shall be the address of the respondent. If a response is not received by the City Clerk in the time stated, the notification shall be final administrative action of denial, suspension or revocation and notice of such will be sent to the respondent within five (5) working days after expiration of the period for submitting a response. Within five (5) working days after receipt of a response, the City Clerk shall either withdraw the intent to deny, suspend, or revoke, and send notification of the withdrawal to the respondent in writing by certified mail or shall schedule a hearing before the License Appeal Board and shall send notification to the respondent in writing by certified mail of the date, time and place of the hearing. If the City Clerk fails to send a timely notification either withdrawing the intent or scheduling a hearing, the intent to deny, suspend or revoke shall be deemed withdrawn. The hearing, if requested, shall be scheduled not less than twenty (20) nor more than forty-five (45) working days after receipt by the City Clerk of the request for a hearing. If respondent requests a hearing, either the License Appeal Board or City Clerk may continue the hearing on the request of respondent for good cause showsn. The License Appeal Board or the City may condition the grant of a continuance on the respondent's waiver of time deadline for holding the hearing established by this subsection. The hearing will be conducted in an informal manner. The respondent may be represented by counsel. The technical rules of evidence shall not apply, provided that the decision of the License Appeal Board shall in all cases be based upon substantial and reliable evidence. Review shall be de novo and the burden of proof at the hearing shall be based upon the City. The License Appeal Board shall render a written decision within five City working days after completion of the hearing and shall either hand-deliver a copy of the decision to the respondent or mail a copy of the decision certified by mail to the address of the respondent as designated in this subsection. If more than sixty calendar days elapse between the receipt by the City Clerk of a request for hearing and a miling or hand-delivery by the License Appeal Board of a final decision to the respondent, a decision in favor of the respondent shall be deemed to have been rendered. In the case of an intent to deny a renewal application of a license or permit or an intent to suspend or revoke a license or permit, the respondent may continue to work or operate pending receipt of the final decision of the License Appeal Board. The decision shall be final upon hand-delivery to the respondent or, if mailed, at the end of five calendar days after it is mailed, and shall constitute final administrative action.

B. When the decision to deny, suspend or revoke a license or permit becomes final, the respondent shall have the right to seek judicial review of the decision by way of special action or other available procedure in the superior court. In the case of a denial of an original application, if the court has not ruled within thirty calendar days after service of the complaint on the City, the City Clerk shall issue a temporary license or permit to the applicant on the next City working day. If the court overturns the denial, the license or permit shall be deemed granted upon judicial decision and the license or permit issued accordingly, subject to the City's right of appeal. The decision to deny a renewal application for a license or permit or to suspend or revoke a license or permit shall be stayed until the entry of judgment on the merits by the superior court, provided that the licensee or permittee files the action and serves the complaint on the City within fourteen calendar days after the administrative decision becomes final.

C. The City Clerk may provide for the resolution of any contested matter arising under this section by consent agreement. The terms of a consent agreement may impose conditions that go beyond the requirements of this article and may include a fine as a civil sanction.

D. Any license or permit suspended, revoked, or denied renewal as ordered by the License Appeal Board pursuant to this section shall be stayed for fourteen calendar days from the date the decision becomes final. The licensee may waive this provision in writing, or the City may seek to enforce the suspension revocation sooner through special action or other available remedy in Superior Court.

(Ord. No. G-3671, § 2; Ord. No. G-3683, § 37; Ord. No. G-3775, § 11; Ord. No. G-3876, § 9; Ord. No. G-3894, § 3; Ord. No. G-4143, § 8, passed 12-9-1998, eff. 12-9-1998; Ord. No. G-4182, § 1, passed 5-19-1999, eff. 5-19-1999; Ord. No. G-4410, § 15, passed 2-6-2002, eff. 3-8-2002).

Sec. 10-141. Transfer of license; limitation on number of licenses in operation; hours of operation.

A. A licensee shall not transfer his license to another, nor shall a licensee operate a sexually oriented business under the authority of a license at any place other than the address designated in the application.

B. It shall be unlawful for any person to knowingly operate more than one license of the same classification at a geographic location. A suspended license is considered operational for purposes of this subsection. A revoked license is considered operational for purposes of this subsection. A revoked license is considered operational for purposes of this subsection if the licensee is permitted to continue operating by law.

C. It shall be unlawful to operate a business licensed pursuant to this article outside of the hours of operation required to be provided to the City Clerk by this article.

(Ord. No. G-3671, § 2; Ord. No. G-4410, § 16, passed 2-6-2002, eff. 3-8-2002)

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