Article 8-5 Adult Business License Regulations

Section 8-5-1 Purpose

For the purposes of this Article, the defined terms set forth in Chapter 21 of the Town of Fountain Hills Zoning Ordinance shall apply.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-2 License Required

  1. It is unlawful:
    1. For any person to operate an adult business without a valid adult business license issued by the Town pursuant to this code.
    2. For any person who operates an adult business to employ a person to work for the adult business who is not licensed as an adult business employee by the Town pursuant to this code.
    3. For any person to obtain employment with an adult business without having secured an adult business employee license pursuant to this code.
  2. An application for a license must be made on a forms provided by the Town.
  3. All applicants must be qualified according to the provisions of this code. The application may request and the applicant shall provide such information (including fingerprints) as to enable the Town to determine whether the applicant meets the qualifications established in this code.
  4. A person, who wishes to operate an adult business must sign the application for a license as an applicant. If a person other than an individual wishes to operate an adult business, all persons legally responsible for the operations of the sexually oriented business or who have power to control or direct its operations must sign the application for a license as applicant. Such persons include, but are not limited to, general partners, corporate officers, corporate directors, and controlling shareholder(s). Each application must be qualified under the following section and each applicant shall be considered a licensee if a license is granted.
  5. The completed application for an adult business license shall contain the following information and shall be accompanied by the following documents or information:
    1. If the applicant is:
      1. An individual, the individual shall state his/her legal name and any aliases and submit proof that he/she is 18 years of age.
      2. A partnership, the partnership shall state its complete name, and the names of all partners, whether the partnership is general or limited, and a copy of the partnership agreement, if any.
      3. A corporation, the corporation shall state its complete name, the date of its incorporation, evidence that the corporation is in good standing under the laws of its state of incorporation, the names and capacity of all officers, directors and controlling stockholders, and the name of the registered corporate agent and the address of the registered office for service of process.
    2. If the applicant intends to operate the adult business under a name other than that of the applicant; he or she must state (a) the adult business’s fictitious name and (b) submit the required registration documents.
    3. Whether the applicant, or a person residing with the applicant, has been convicted of a specified criminal activity as defined in this code, and, if so, the specified criminal activity involved, the date, place, and jurisdiction of each.
    4. Whether the applicant, or a person residing with the applicant, has had a previous license under this ordinance or other similar adult business ordinances from another city or county denied, suspended or revoked, including the name and location of the adult business for which the permit was denied, suspended or revoked, as well as the date of the denial, suspension or revocation, and whether the applicant or a person residing with the applicant has been a partner in a partnership or an officer, director or principal stockholder of a corporation that is licensed under this code whose license has previously been denied, suspended or revoked, including the name and location of the adult business for which the permit was denied, suspended or revoked as well as the date of denial, suspension or revocation.
    5. Whether the applicant or a person residing with the applicant holds any other licenses under this code or other similar adult business ordinance from another city or county and, if so, the names and locations of such other licensed businesses.
    6. The single classification of license for which the applicant is filing.
    7. The location of the proposed adult business, including a legal description of the property, street address, and telephone number(s), if any.
    8. The applicant’s mailing address and residential address.
    9. A recent photograph of the applicant(s).
    10. The applicant’s valid driver’s license number.
    11. A floor plan or diagram showing the configuration of the premises, including a statement of total floor space occupied by the business. The floor plan or diagram must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises.
    12. A property survey prepared within 30 days prior to application by a registered land surveyor depicting the property lines of any established uses identified under Section 21-1-3 of the Fountain Hills Zoning Ordinance within the distances set forth in Section 21-1-3 in relation to the property to be certified. For purposes of this Section, a use shall be considered existing or established if it is in existence at the time an application is submitted.
    13. If an applicant wishes to operate an adult business, other than an adult motel, which intends to exhibit on the premises, in a viewing room or booth of less than 150 square feet of floor space, films, electronic video media, other video reproductions, or live entertainment which depict specified sexual activities or specified anatomical areas, then the applicant shall comply with the application requirements set forth in Section 21-1-5 of the Fountain Hills Zoning Ordinance.
  6. Before any applicant may be issued an adult business employee license, the applicant shall submit on a form to be provided by the Town the following information:
    1. The applicant’s name or any other name (including stage aliases used by the individual.
    2. A certified copy or original birth certificate showing date and place of birth as proof that individual is at least 18 years of age.
    3. Height, weight, hair and eye color.
    4. Present residence address and telephone number.
    5. Present business address and telephone number.
    6. Date, issuing state and number of driver’s license or other identification card information.
  7. Attached to the application form for an adult business employee license as provided above, shall be the following:
    1. A color photograph of the applicant clearly showing the applicant’s face, and the applicant’s fingerprints on a form provided by the Town’s law enforcement department. Any fees for the photographs and fingerprints shall be paid by the applicant.
    2. A statement detailing the license history of the applicant for the five (5) years immediately preceding the date of the filing of the application, including whether such applicant (a) previously operated or is seeking to operate, in this or any other county, city, state, or country an adult business, (b) has ever had a license, permit, or authorization to do business denied, revoked, or suspended or (c) had any professional or vocational license or permit denied, revoked, or suspended. In the event of any such denial, revocation, or suspension, state the name, the name of the issuing or denying jurisdiction, and describe in full the reason for the denial, revocation, or suspension. A copy of any order of denial, revocation, or suspension shall be attached to the application.
    3. A statement whether the applicant has been convicted of a specified criminal activity as defined in this code and, if so, the specified criminal activity involved, the date, place and jurisdiction of each.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-3 Issuance of License

  1. For an adult business employee license, the application shall be referred to the appropriate Town departments for an investigation to be made on such information as is contained on the application. The application process shall be completed within 60 days from the date the completed application is filed. If the Town fails to approve or deny the license within 60 days after receipt of an application, the license shall be deemed to have been approved. After the investigation, the Town shall issue a license, unless it is determined by a preponderance of the evidence that at least one or more of the following findings is true:
    1. The applicant has failed to provide information reasonably necessary for issuance of the license or has falsely answered a question or request for information on the application form.
    2. The applicant is under the age of 18 years.
    3. The applicant has been convicted of a specified criminal activity as defined in this code.
    4. The adult business employee license is to be used for employment in a business prohibited by federal, local or state law, statute, rule or regulation, or prohibited by a particular provision of this ordinance.
    5. The applicant has had an adult business employee license revoked by the Town within two (2) years of the date of the current application. Denial, suspension, or revocation of a license issued pursuant to this subsection shall be subject to appeal as set forth in Section 8-4-8.
  2. A license granted pursuant to this section shall be subject to annual renewal upon the written application of the applicant and a finding by the Town that the applicant has not been convicted of any specified criminal activity as defined in this code or committed any act during the existence of the previous license, which would be grounds to deny the initial license application. The renewal of the license shall be subject to the payment of the fee as set forth in Section 8-4-4.
  3. 30 days prior to the expiration of a license, an applicant must submit a completed adult business application for renewal. The Town shall approve the issuance of a renewed license to an applicant unless it is determined by a preponderance of the evidence that at least one of the following findings is true:
    1. An applicant is under 18 years of age.
    2. An applicant or a person with whom the applicant is residing is overdue in payment to the Town of taxes, fees, fines, or penalties assessed against or imposed upon him/her in relation to any business.
    3. An applicant has failed to provide information reasonably necessary for issuance of the license or has falsely answered a question or request for information on the application form.
    4. An applicant or a person with whom the applicant is residing has been denied a license by the Town to operate a sexually oriented business within the preceding 12 months or whose license to operate a sexually oriented business has been revoked within the preceding 12 months.
    5. An applicant or a person with whom the applicant is residing has been convicted of a specified criminal activity as defined in this code.
    6. The premises to be used for the adult business have not been approved by the Maricopa County health department, the Town fire department, and the Town building official as being in compliance with applicable laws and ordinances.
    7. The license fee required by this ordinance has not been paid.
    8. An applicant of the proposed establishment is in violation of or is not in compliance with any of the provisions of this code.
  4. The license, if granted shall state on its face the name of the person or persons to whom it is granted, the expiration date, the address of the adult business and the classification for which the license is issued. All licenses shall be posted in a conspicuous place at or near the entrance to the adult business so that they may be easily read at any time.
  5. The Maricopa County health department, the Town fire department, and the Town building official shall complete their certification that the premises is in compliance or not in compliance within 20 days of receipt of the application by the Town.
  6. An adult business license shall issue for only one classification as found in Section 21-1-2 of the Fountain Hills Zoning Ordinance.
  7. If a permit is issued, the Town shall issue an identification card. The identification card shall include the name of the licensee, a photograph of the licensee, the number of the permit, and the dates of issuance and expiration.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-4 Fees

  1. Every application for an adult business license (whether for a new license or for renewal of an existing license) shall be accompanied by a $300.00 non-refundable application and investigation fee or such other fee as established by the Town Council as part of its annual budget or by separate resolution.
  2. In addition to the application and investigation fee required above, every adult business that is granted a license (new or renewal) shall pay to the Town an annual nonrefundable license fee of $100.00 upon license issuance or renewal or such other fee as established by the Town Council as part of its annual budget or by separate resolution.
  3. Every application for an adult business employee license (whether for a new license or for renewal of an existing license) shall be accompanied by an annual $50.00 nonrefundable application, investigation, and license fee or such other fee as established by the Town Council as part of its annual budget or by separate resolution.
  4. All license applications and fees shall be submitted to the Fountain Hills Town Clerk.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-5 Inspection

  1. An applicant or licensee shall permit representatives of the Town Law Enforcement Department, Fire Department, Zoning Department, or other Town departments, agencies or agents to conduct lawful inspections of the premises of an adult business for the purpose of ensuring compliance with the law, at any time it is occupied or open for business.
  2. A person who operates an adult business or his agent or employee commits a Class 1 misdemeanor if he refuses to permit such lawful inspection of the premises at any time it is open for business.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-6 Expiration of License

  1. Each license shall expire one year from the date of issuance and may be renewed only by making application as provided in Section 8-4-3. Application for renewal shall be made at least 30 days before the expiration date, and when made less than 30 days before the expiration date, the expiration date of the license will not be affected. Any applicant whose license has expired must cease any activities permitted under the license until such time as a renewed license is issued.
  2. When the Town denies renewal of a license, the applicant shall not be issued a license for one year from the date of denial. If, subsequent to denial, the Town finds that the basis for denial of the renewal license has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date denial became final.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-7 Suspension

The Town shall suspend a license for a period not to exceed 30 days if it determines that a licensee or an employee of a licensee has either (A) violated or is not in compliance with any section of this ordinance or (B) refused to allow an inspection of the adult business premises as authorized by this Article.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-8 Denial or Revocation

  1. The Town shall deny or revoke a license if a cause of suspension under Section 8-4-7 occurs twice within any 12 month period.
  2. The Town shall deny or revoke a license if it determines that any of the following have occurred:
    1. A licensee gave false or misleading information in the material submitted during the application process.
    2. A licensee has knowingly allowed possession, use, or sale of controlled substances on the premises.
    3. A licensee has knowingly allowed prostitution on the premises.
    4. A licensee knowingly operated the adult business during a period of time when the licensee’s license was suspended or expired.
    5. Except in the case of an adult motel, a licensee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation, or other sex act to occur in or on the licensed premises.
    6. A licensee is delinquent in payment to the Town, County, or State for any taxes or fees past due.
  3. If the Town determines that grounds exist to deny or revoke a license under this Article, the Town shall notify the applicant, licensee in writing of the intent to deny or revoke, including the grounds therefore.
  4. Within ten work days of receipt of such notice, the recipient may respond to the notice in writing, stating the reasons why the license should not be denied or revoked. If the Town does not receive a response in the time required, the Town’s notice shall be the final administrative action of denial or revocation. The Town shall send an additional notice to confirm the denial or revocation notice within five business days after the time to respond expires.
  5. If the Town receives a response, within ten business days of receipt, the Town shall either (1) notify the applicant, or licensee of the Town’s withdrawal of the intent to deny or revoke or (2) notify the applicant, or licensee of the date, time and place for a hearing before the Town Council.
  6. If the Town fails to send a timely notification either withdrawing the intent to deny or revoke or scheduling a hearing, a decision in favor of the applicant or licensee is deemed made.
  7. The hearing shall be conducted not less than 15 nor more than 20 work days after the Town’s receipt of the response. The hearing shall be conducted in an informal manner. Both parties may be represented by counsel and present evidence. The Town bears the burden of proving the grounds to deny or revoke a license. The formal rules of evidence shall not apply.
  8. Within five business days after the hearing, the Town Council shall issue a written decision, including the grounds for the decision, and shall mail the decision to the applicant, or licensee. The decision shall include information advising the applicant or licensee of any right to challenge the decision in any court. If more than 45 days elapse between the Town’s receipt of a response and the Town Council sending the final decision, a decision in favor of the applicant, or licensee shall be deemed made.
  9. If the Town Council finds no grounds to deny the license, the Town shall issue the license. If the Town Council finds no grounds to revoke the license, the Town shall withdraw the intent to revoke and deem the license valid. The Town shall take action required under this subsection within five business days of the Town Council’s decision.
  10. In the case of an intent to deny or revoke a license, the licensee may continue to operate for 15 days after the decision becomes final. The decision shall be deemed final at the end of five work days after it is mailed and shall constitute final administrative action.
  11. All notices under this section shall be sent by certified mail to the applicant, or licensee’s address on file with the Town.
  12. When the Town revokes a license, the revocation shall continue for one year, and the licensee shall not be issued an adult business license for one year from the date the revocation became effective. If, subsequent to revocation, the Town finds that the basis for the revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became effective.

(Ordinance 07-09, Added, 10/18/2007, Adopted)

Section 8-5-9 Transfer of License

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

(Ordinance 07-09, Added, 10/18/2007, Adopted)

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