5.58.050 - Adult business permit application process.

Any person wishing to operate an adult business shall apply for and submit a completed application for an adult business permit. The adult business shall not be permitted to commence or continue business without the required valid permits and licenses. The fact that an applicant possesses other types of state or city permits or licenses does not exempt the applicant from the requirement of obtaining an adult business permit. (1)

Application. Applicants for an adult business permit shall file a complete, written, signed and verified application or renewal application on a form provided by the city administrator. Such application shall contain the following:

(A)

If the applicant is an individual, the applicant's legal name, including any aliases, the applicant's residential address (other than post office box), residential telephone number, business address and telephone number;

(B)

If the applicant is a corporation, the corporation shall state the corporation's business address (other than a post office box), and the corporate name as set forth in its articles of incorporation. The corporate applicant shall provide the date of its incorporation, and evidence that the corporation is in good standing under the laws of the State of California. The corporate applicant shall show the name and residence address of each of the officers, directors and each stockholder owning no less than ten percent of the stock of the corporation in addition to the name of the registered corporate agent and the address of the registered office/officer for service of process;

(C)

If the applicant is a partnership, the partnership shall state the partnership's complete name, business address and telephone number, and whether the partnership is general or limited. The partnership shall state the name, residential address and telephone number of each of the partners and a copy of the partnership agreement;

(D)

If the applicant is any other legal entity, the legal entity shall state the name and type of legal entity, the business address and telephone number of the legal entity, the name, address and telephone number of the principals of the legal entity, and a copy of any and all documents creating the legal entity;

(E)

If the applicant intends to operate the adult business under a name other than that of the applicant, he/she must:

(i)

State the adult business's fictitious name;

(ii)

Submit the required registration documents; and

(iii)

Provide the information contained in subsections (1)(A) through (1)(D) of this section, whichever is applicable;

(F)

If the adult business is owned or operated by an individual, he/she must sign, under penalty of perjury, the application for a permit as applicant. If the adult business is owned or operated by a legal entity other than an individual, each individual who has a ten percent or greater interest in the business must sign, under penalty of perjury, the application for a permit as applicant;

(G)

If the applicant is an individual, the applicant shall submit a copy of his/her California DMV identification or driver's license and Social Security number; if the applicant is a corporation, partnership or any other legal entity, the applicant shall submit a copy of its state and/or federally issued tax identification number;

(H)

The applicant shall submit proof that he/she is eighteen years of age or older to qualify for a permit. If the proposed adult business will sell and serve alcoholic beverages, the applicant shall submit proof that he/she is twenty-one years of age or older to qualify for a permit;

(I)

If the applicant is an individual, the applicant shall submit one two-inch by two-inch (minimum size) portrait photograph, taken within the forty-five days immediately prior to or after the date the application is filed, clearly showing the face of the applicant(s). The applicant shall also provide his/her fingerprints in a form required by the sheriff's department. Any fees for the photograph or fingerprints shall be paid by the applicant;

(J)

A statement detailing the applicant's adult business license or permit history for the five years immediately preceding the date of the filing of the application;

(K)

A statement detailing whether the applicant has ever had an adult business license, permit, or authorization for an adult business denied, revoked, or suspended. In the event of any such denial, revocation, or suspension, state the date, the name of the issuing or denying jurisdiction, and describe in full the reasons for the denial, revocation, or suspension;

(L)

Whether the applicant, or any of the other individuals listed on the application, has been convicted of a specified criminal act, as defined in this chapter, and if so, the specified criminal act involved, the date, place, nature of each conviction or plea of nolo contendere and the identity of the convicting jurisdiction;

(M)

A sketch or diagram showing the interior and exterior configuration of the premises, including a statement of the total floor area occupied by the adult business. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches;

(N)

A description of the type of adult business for which the permit is requested and the proposed address where the adult business will operate, including the names and addresses of the owners and/or lessors of the proposed adult business site. The applicant is prohibited from operating more than one adult business at the same location, building and/or structure;

(O)

Hours of operation of the adult business;

(P)

A diagram of the off-street parking areas and premises entries of the adult business, showing the location of the lighting system;

(Q)

A detailed security plan that describes measures that will be implemented to provide adequate security both within the interior and exterior premises of the business, including the name and address of the security company to provide security services and the number of security guards;

(R)

The name or names of the person or persons operating or having the management or supervision of applicant's business at the proposed location, and the names of all employees, independent contractors and other persons who will be providing services, for any form of compensation, at the adult business;

(S)

For renewal applications, the applicant shall submit an application updating the information in the original application, in the event that the information in the original application has changed, and attaching a copy of the permit to be renewed;

(T)

Authorization by applicant to city, its employees, agents and contractors, for any and all information necessary for the investigation of the application to determine its truthfulness;

(U)

Any other information the sheriff's department shall deem necessary to investigate the applicant and the contents of the application for an adult business permit;

(V)

Each application shall be accompanied by a nonrefundable fee for filing or renewal in an amount determined by resolution of the city council, which fees will be used to defray the costs of investigation, inspection and processing of such application.

(2)

Submission to City Administrator.

(A)

A complete application for a permit or renewal shall be filed with the city administrator. Upon receipt of an application properly filed with the city administrator, the city administrator shall immediately stamp the application as received and shall thereafter commence an investigation of the applicant and the contents of the application.

(B)

The city administrator shall promptly advise the applicant in writing within two working days of receipt of an application, if the application is incomplete and the reasons the application is incomplete.

(C)

The city administrator shall grant the applicant a ten day extension of time to complete the application as required in this section. The time period for making a decision on the application shall be stayed during the period in which the applicant is granted an extension. Failure to complete the application as required in this chapter within the extension period shall be grounds for denying the application.

(D)

The city administrator shall direct the community development department to post a notice on the property that an application has been filed which is the subject of the applicant's application for an adult business permit.

(3)

Investigation—Time Limits.

(A)

The city administrator and/or his/her designee, including other city departments and the sheriff's department, shall promptly conduct an investigation of the applicant and the application for the proposed adult business permit. Within forty-five days from the date a complete application was filed with the city administrator, the city administrator shall:

(i)

Approve the application and issue a permit; or

(ii)

Conditionally approve the application and issue a thirty day temporary permit; or

(iii)

Deny the application based on one or more of the grounds set forth in this chapter.

(B)

The city administrator shall furnish the applicant with a written notice of his/her decision on the application on the forty-fifth day by mailing such written notice by certified mail, return receipt requested, or by personal service.

(4)

Conditional Approval—Temporary Permit. Within forty-five days from the date a complete application was filed with the city administrator, the city administrator shall issue a thirty day temporary permit if the city administrator's investigation of the applicant and the application for an adult business permit is not completed, and the applicant complies with all provisions of this chapter, and there exists no grounds for denial of the application. The temporary permit shall authorize the applicant to operate an adult business only within the time period indicated on the temporary permit and shall become null and void after the expiration date stated on the temporary permit. The city administrator may extend the temporary permit up to sixty days. Upon expiration of the temporary permit or any extensions thereof, the city administrator shall approve the application and issue a permit or deny the application for a permit based on the grounds set forth in this chapter.

(5)

Basis for Denial of Application. The city administrator shall approve the application or renewal and issue a permit upon findings that the proposed adult business meets all development standards, locational requirements, and operational standards applicable to the adult business, unless it finds that one or more of the following conditions are found to be true:

(A)

That the building, structure, equipment and/or location used by the business for which a permit is required in this chapter does not comply with the requirements and standards of the health, fire, building and safety laws of the State of California and/or of the city;

(B)

That the building, structure, equipment and/or location used by the business for which a permit is required in this chapter does not comply with the zoning laws of the city, including, but not limited to, parking requirements, signage, the development standards of the M-2 zone, the locational requirements and/or the operational standards applicable for the type of adult business set forth in this chapter;

(C)

That the applicant, his or her employee, agent, partner, director, officer, stockholder, operator or manager has knowingly made any false, misleading or fraudulent statement of material fact in the application for a permit or in any report or record required to be filed with the city administrator, other departments of the city, or the sheriff's department;

(D)

That the applicant, his or her employee, agent, partner, director, officer, stockholder, operator or manager has had any type of adult business license/permit revoked by any public entity within two years of the date of the application;

(E)

That the applicant is under eighteen years of age or under twenty-one years of age, if the proposed adult business will serve alcoholic beverages;

(F)

The applicant is overdue forty-five days in payment to the city for fees owed by the applicant in relation to the adult business, which is the subject of the application;

(G)

The applicant failed to file a complete application with the city administrator or failed to provide any necessary information to the sheriff's department for the investigation of the applicant and contents of the application;

(H)

The applicant or any other person listed in the application has been convicted of a specified criminal act, as defined in this chapter.

(i)

An applicant who has been convicted of a specified criminal act may qualify for an adult business permit within five years from the date of the conviction. Except if the application follows revocation of a prior permit issued by the city, the applicant may qualify for an adult business permit after two years have elapsed from the effective date of revocation.

(ii)

The fact that a conviction is being appealed shall have no effect on disqualification of the applicant.

(I)

The applicant proposes to operate more than one adult business from the same location, building or structure.

6.

Business License. Once a permit or temporary permit has been issued, the applicant shall obtain and pay the required fees for a business license from the city's business license division. In the case that a temporary permit is issued and the application for an adult business is later denied, the business license becomes null and void, and the applicant shall be entitled to a pro-rated refund on the fees paid for a business license.

7.

Failure to Act on Application. If the city administrator fails to approve, conditionally approve, or deny a permit within forty-five days from the date a complete application was filed with the city administrator, the permit shall automatically issue, subject to all provisions of this chapter.

8.

Duty to Update Information.

(A)

Applicants issued a permit or renewal permit under this chapter shall have a continuing duty to promptly supplement application information required by this chapter in the event that such information changes in any way from what is stated on the original application. The failure to comply with such continuing duty within thirty days from the date of the change, by supplementing the application on file with the city administrator, shall be grounds for revocation or suspension of the adult business permit.

(B)

Applicants issued a permit or renewal permit under this section shall also be required to submit to the city administrator on a quarterly basis the names and addresses of all employees, independent contractors or any other person providing services, for any form of compensation, if any, to the adult business. Failure to provide such quarterly reports shall be grounds for suspension of the adult business permit.

(9)

Prompt Judicial Review. The decision of the city administrator on an application for a permit pursuant to this chapter is considered to be a ministerial act. Issuance or denial of the permit is not subject to administrative appeal. The decision of the city administrator is final and subject to prompt judicial review by a court of competent jurisdiction in accordance with California Code of Civil Procedure, Section 1094.8.

(Ord. 539 §2(part), 1999).