A. The chief of police, after actual service of ten days' written notice to the person holding a license for an adult entertainment establishment or adult hotel pursuant to this title, shall have the authority to suspend such license for a period not to exceed thirty (30) days, for any violation of the provisions of this chapter or other ordinances or statutes regulating conduct in adult entertainment establishments or adult hotels; provided, however, that the licensee may appeal such order of suspension to the city commission within seven days from the date of such order.

B. The city commission after actual service of ten days' written notice to the person holding a license for an adult entertainment establishment, pursuant to this title, may cause to be suspended for a period of not more than thirty (30) days or may permanently revoke such license for the following reasons:

1. If the licensee has fraudulently obtained the license by giving false information in the application therefor;

2. If the licensee, manager, operator or employee has violated any of the provisions of this chapter;

3. If the licensee has become ineligible to obtain a license under this chapter;

4. The nonpayment of any license fees payable hereunder;

5. For knowingly employing a person who has been, within one year prior to the date of employment, or who during the period of employment is adjudged guilty of or participated in a diversion agreement after being charged with a felony or a morals charge, or within one year prior to employment has been released from probation from a felony or a morals charge.

Provided, that if any of the grounds for revocation herein enumerated are violated by an employee, a manager or agent, then in absence of proof of knowledge by the licensee, there shall be no revocation, except as herein provided, but there may be a suspension of not more than thirty (30) days; it being further provided that in the event any licensee is subjected to more than two such suspensions in any twelve-month period, his or her license may be revoked on the third such violation.

Upon appeal taken from an order of suspension or revocation the court may stay the order of suspension or revocation upon a showing by the appellant and a finding by the court that a substantial likelihood exists that the movant will eventually prevail on the merits and that the movant will suffer irreparable injury unless the stay is granted. If there is no stay by the court then the order of suspension or revocation shall not be suspended during the pendency of any such appeal. In case of the revocation of a license of any licensee, no new license shall be issued to such person or to any person acting for or on his or her behalf, for a period of six months after the revocation becomes effective. (Ord. G-819 § 1 (part), 1996)