9.13.070 Suspension or revocation of a sexually oriented business license.
A. On determining that grounds for license suspension or revocation exist, the Director 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 Municipal 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 10 days prior to the hearing date. Hearings pursuant to this section shall be noticed in accordance with California Government Code Sections 65091 and 65905 and conducted by the Director or his/her designee which may include a third party hearing officer. Hearings pursuant to this section shall be conducted in accordance with procedures established by the Director but, at a minimum, shall include the following:
1. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing upon the issues and may be represented by counsel.
2. The Director shall not be bound by the formal rules of evidence.
3. Any hearing under this section may be continued for a reasonable time for the convenience of a party or a witness at the request of the licensee. Extensions of time or continuances sought by a licensee shall not be considered delay on the part of the City or constitute failure by the City to provide for prompt decisions on license suspensions or revocations.
4. The Director’s decision may be appealed in accordance with CVMC 9.13.080.
B. A license may be suspended or revoked based on the following causes arising from the acts or omissions of the licensee, or an employee, partner, operator or manager of the licensee:
1. The building, structure, equipment, or location used by the sexually oriented business fails to comply with all provisions of these regulations and this section relating to sexually oriented businesses, including the sexually oriented business operational standards contained in CVMC 9.13.100 and the zoning requirements of CVMC 19.58.024, and all other applicable building, fire, electrical, plumbing, health, and zoning requirements of the Chula Vista Municipal Code.
2. The licensee has failed to obtain or maintain all required City licenses or permits with respect to the business or the premises.
3. The licensee has made any false, misleading, or fraudulent statement of material fact in the application for a sexually oriented business license.
4. The license is being used to conduct an activity different from that for which it was issued.
5. That an employee of the sexually oriented business has been convicted of two or more specified criminal activities that occurred on the licensed premises within a 12-month period and was employee of the sexually oriented business at the time the offenses were committed.
6. That the use for which the approval was granted has ceased to exist, has been suspended or has not been active for six months or more.
7. That the transferee/new owner of a sexually oriented business or sexually oriented business regulatory license failed to comply with the requirements of this chapter.
8. The licensee, operator, or manager has knowingly allowed or permitted, or has failed to make a reasonable effort to prevent the occurrence of, a specified criminal activity on the premises of the sexually oriented business, or has been convicted of a specified criminal activity. The fact that any relevant conviction is being appealed shall have no effect on the revocation of the license; provided, that if any conviction which serves as a basis of a license revocation is overturned or reversed on appeal, that conviction shall be treated as null and of no effect for revocation purposes.
9. An act or omission in violation of any of the requirements of this chapter if such act or omission is with the knowledge, authorization, or approval of the licensee or is as a result of the licensee’s negligent supervision of the employees of the sexually oriented business. This includes the allowance of activities that are or become a public nuisance which includes the disruptive conduct of business patrons whether on or immediately off the premises where such patrons disturb the peace, obstruct traffic, damage property, engage in criminal conduct, violate the law and otherwise impair the free enjoyment of life and property.
C. After holding the hearing in accordance with the provisions of this section, if the Director finds and determines that there are grounds for suspension or revocation, the Director shall impose one of the following:
1. Suspension of the license for a specified period not to exceed six months; or
2. Revocation of the license.
The Director shall render a written decision that shall be hand delivered or overnight mailed to the licensee within five days of the public hearing.
D. In the event a license is revoked pursuant to this section, another sexually oriented business regulatory license to operate a sexually oriented business shall not be granted to the licensee or an entity related to the licensee within 12 months after the date of such revocation.
E. The licensee shall be responsible for payment of the required fee(s) as set forth in the master fee schedule of the City adopted by resolution of the City Council. (Ord. 3315 § 2(8), 2014; Ord. 3241 § 2, 2012).