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An adult entertainment business shall permit the director and personnel from the Police Department to conduct unannounced inspections, during the hours when the business is open, of all exterior and interior areas of the business premises open to and used by customers and all books and records required to be kept under this chapter. The purpose of such inspections is to determine if the business is being conducted in compliance with this chapter.

(1) The director may, at any time upon the recommendation of the chief of police and as provided below, suspend or revoke any license issued under this chapter:

(a) Where such license was procured by fraud or a false representation of fact; or

(b) For the violation of, or failure to comply with, the provisions of this chapter or any other similar local or State law by the licensee or by any of its servants, agents or employees when the licensee knew or should have known of the violations committed by its servants, agents or employees; or

(c) For the conviction of the licensee of any crime or offense involving prostitution, promoting prostitution, or transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the premises, or the conviction of any of the licensee’s servants, agents, or employees of any crime or offense involving prostitution, promoting prostitution, or transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the licensed premises when the licensee knew or should have known of the violations committed by its servants, agents or employees.

(2) A license procured by fraud or misrepresentation shall be revoked. Where other violations of this chapter or other applicable ordinances, statues or regulations are found, the license shall be suspended for a period of 30 days upon the first such violation, 90 days upon the second violation within a 24-month period, and revoked for third and subsequent violations within a 24-month period, not including periods of suspension.

(3) The director shall provide at least 10 days of prior written notice to the licensee of the decision to suspend or revoke the license. Such notice shall inform the licensee of the right to appeal the decision to the hearing examiner or other designated hearing body and shall state the effective date of such revocation or suspension and the grounds for revocation or suspension.

(4) Notification shall be by personal service or registered or certified mail, return receipt requested, of the decision. Notice mailed to the address on file shall be deemed received three days after mailing. The notice shall specify the grounds for the suspension or revocation. The suspension or revocation shall become effective 10 days from the date the notice is delivered or deemed received unless the person affected thereby files a written request with the director for a hearing before the hearing examiner within such 10-day period. The hearing examiner or other hearing body shall render its decision within 15 days following the close of the appeal hearing. Any person aggrieved by the decision of the hearing examiner or other designated hearing body shall have the right to appeal the decision to the superior court within 14 days of the hearing examiner decision, by writ of certiorari or mandamus. The decision of the director shall be stayed during the pendency of any administrative and judicial appeals except as provided in subsection (5) of this section.

(5) Where the Covington building official, fire marshal or the King County health department find that any condition exists upon the premises of an adult entertainment business which constitutes a threat of immediate serious injury or damage to persons or property, said official may immediately suspend any license issued under this chapter pending a hearing in accordance with subsection (3)  of this section. The official shall issue notice setting forth the basis for the action and the facts that constitute a threat of immediate serious injury or damage to persons or property, and informing the licensee of the right to appeal the suspension to the hearing examiner or other designated hearing body under the same appeal provisions set forth in subsection (3) of this section; provided, however, that a suspension based on threat of immediate serious injury or damage shall not be stayed during the pendency of the appeal. (Ord. 05-02 § 3)