§ 21-243. Procedure for administrative hearings; revocation or suspension of permits.

(a)

Conditions resulting in revocation/suspension of adult arcade permit.

(1)

An adult arcade permit shall be subject to revocation if, after the issuance of the initial permit:

a.

Any permit holder of the adult arcade permit is convicted of a felony or specified criminal act as defined in this article;

b.

Any material information on the permit application which would likely have resulted in a denial of the permit is found to have been false when submitted; or

c.

An individual or entity not listed on the permit application becomes a duly authorized agent, owner or operator of the adult arcade and such agent, owner or operator would have caused a disqualification if listed on the original permit application.

(2)

An adult arcade permit shall be subject to revocation/suspension if, after the issuance of the initial permit, one or more employees of the adult arcade have a cumulative total among them of three (3) or more convictions for felonies or specified criminal acts as defined in this article where the acts that lead to the convictions occurred on the licensed premises within a consecutive 12-month period.

(3)

An adult arcade permit shall be subject to revocation/suspension if, after the issuance of the initial permit, any employees of that establishment have a cumulative total among them of three (3) or more convictions or deferred adjudications for any violations of this article wherein the violations that lead thereto have all occurred on the licensed premises on at least three (3) separate calendar dates within a consecutive six-month period.

(b)

Conditions resulting in revocation/suspension of manager's permit.

(1)

A manager's permit shall be subject to revocation if, after the issuance of the initial permit, the permit holder is convicted of a felony or specified criminal act as defined in this article.

(2)

A manager's permit shall be subject to revocation/suspension if, after the issuance of the initial permit, the permit holder has a cumulative total of three (3) or more convictions or deferred adjudications in the name of the permit holder for any violations of this article wherein the violations occurred on at least three (3) separate calendar dates within a consecutive 12-month period:

(c)

Notice of intention to revoke/suspend permit. If, on the basis of information and belief, the chief of police concludes that any permit issued under this article is subject to revocation or suspension because of the existence of any of the conditions set forth herein, the chief of police shall initiate a revocation/suspension proceeding by sending a notice of intention to revoke/suspend permit to the permit holder which shall detail the following:

(1)

The factual basis for the intention to revoke/suspend the permit;

(2)

The provisions of this article alleged to be violated;

(3)

The calendar date by which any request for contested case hearing is due; and

(4)

The person or office with which any request for a hearing must be filed and the address at which any such request must be filed.

(d)

Request for a hearing is required within twenty (20) days of notice having been given by filing a written request for a hearing with the person or office indicated on the notice of intention to revoke/suspend permit.

(e)

Upon proper request as set forth above, and except in the case of a continuance granted in accordance with the requirements of this article, each party with standing to contest is entitled to an opportunity to respond and to present evidence and argument on each allegation in the notice of intention to revoke/suspend permit at a hearing to be held within twenty (20) days after the date of filing of their request as shown by the date of filing stamped on the request.

(f)

Result of request or failure to request hearing. If no request for a hearing is timely filed, the hearing officer shall revoke the permit in question and issue a notice of revocation. If a request for a hearing is timely filed, the hearing officer shall conduct a hearing in accordance with the provisions of this article.

(g)

Notice of a hearing shall be sent or delivered to the person requesting a hearing not less than ten (10) business days from the date of the hearing; shall include a statement of the time, place, and nature of the hearing; and shall be sent via personal delivery or U.S. Postal Service, to the last known address of the person. Notice of a hearing shall be considered timely if properly addressed and postmarked not less than ten (10) business days from the date of the hearing.

(h)

Representation by counsel. Each party to a hearing is entitled to the assistance of counsel, at the party's expense.

(i)

Status of permit during hearing. While a hearing is pending, and prior to the final decision of the hearing officer regarding revocation or suspension, a permit remains valid unless:

(1)

It expires without timely application for renewal;

(2)

It is voluntarily withdrawn or surrendered by the permit holder; or

(3)

The permit holder commits an act or omission contrary to the provisions of this article which otherwise invalidates the permit.

(j)

Decision of the hearing officer.

(1)

If on the basis of substantial evidence the hearing officer finds that any of the conditions set forth herein exist for the permit in question, the hearing officer shall revoke the permit.

(2)

If on the basis of substantial evidence the hearing officer finds that any of the conditions set forth herein exist for the permit in question, and the permit holder has not had the permit suspended in the previous twelve (12) calendar months, the hearing officer shall suspend the permit for a period of sixty (60) calendar days.

(3)

If on the basis of substantial evidence the hearing officer finds that any of the conditions set forth herein exist for the permit in question and the permit holder has had the permit suspended within the previous twelve (12) calendar months, the hearing officer shall revoke the permit.

(4)

If the hearing officer does not find the existence of any conditions for which the permit in question may be suspended or revoked under this article, the hearing officer shall deny revocation or suspension.

(5)

This section shall not apply during any judicial appeal following the decision of the hearing officer.

(Ord. No. 2012-12-06-0933, §§ 4, 6, 12-6-12)