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(1) The Finance Director shall issue a letter of intent to revoke a sexually-oriented business license or a sexually-oriented business employee license, as applicable, if the licensee knowingly violates a provision of this Chapter or has knowingly allowed an employee to violate a provision of this Chapter and the licensee’s license has been suspended within the previous twelve (12) month period.

(2) The Finance Director shall issue a letter of intent to revoke a sexually-oriented business license or a sexually-oriented business employee license, as applicable, if:

(a) the licensee has knowingly given false information in the application for the sexually-oriented business license;

(b) the licensee has knowingly or recklessly engaged in or allowed possession, use, or sale of controlled substances or alcoholic beverages on the premises;

(c) the licensee has knowingly or recklessly engaged in or allowed prostitution on the premises; or

(d) the licensee has knowingly or recklessly engaged in or allowed any specified sexual activity to occur in or on the licensed premises.

(3) The fact that any relevant conviction is being appealed shall have no effect on the revocation of a license, provided that, if any conviction which serves as a basis of a license revocation is overturned or reversed on appeal, such conviction shall be treated as null and of no effect for revocation purposes.

(4) When, after the notice and hearing procedure described in Section 9.60.110 of this Chapter, a license is revoked, such revocation shall continue for one (1) year and the licensee shall not be issued a sexually-oriented business license or sexually-oriented business employee license for one (1) year from the date revocation becomes effective.

(Rep&ReEn 2005-41)