Chapter 5.06
ADULT BUSINESSES

Sections:

5.06.010    Purpose.

5.06.020    Definitions.

5.06.030    Permits required.

5.06.040    Fees.

5.06.050    Application for adult business permit.

5.06.060    Application to entertain in or be employed by an adult business.

5.06.070    Issuance and renewal of adult business permit.

5.06.080    Issuance and renewal of permit to entertain in or be employed by an adult business.

5.06.090    Revocation or suspension of permit.

5.06.100    Appeals.

5.06.110    Duties of adult business permit holder.

5.06.120    Prohibited conduct in adult business.

5.06.130    Advertising restrictions.

5.06.140    Hours of operation.

5.06.150    Exterior design restrictions.

5.06.160    Maintenance of premises in violation declared a nuisance—Abatement.

5.06.170    Inspection of premises.

5.06.180    Penalty.

5.06.010 Purpose.

The purpose of this chapter is to provide for the regulation of certain types of adult business activities that the council finds present an extraordinary risk of being utilized to facilitate and conceal criminal conduct including offenses involving prostitution, controlled substances, theft, gambling, fraud, obscenity and often involving organized, systematic criminal activities. Therefore, this chapter is intended to minimize such risk by providing for the strict regulation of such business activities and by prohibiting those persons who have previously been involved in such criminal conduct from participating in such business activities. In making this determination, the council has specifically considered the impact that such regulations will have upon the competitive nature of such business activities, and finds that the need for such regulations outweighs such impact.

Statutory Reference: ORS 221.410.

History: Ord. 1034 §1, 1984.

5.06.020 Definitions.

For the purpose of this chapter, the following definitions shall apply:

(1) “Adult business” means the operation of any establishment(s), regardless of whether alcoholic beverages are served or not, to which the public has access, whether or not by purchase of an admission ticket or membership, and which is (are) utilized to present, as a substantial or significant portion of its entertainment, live performances that involve nudity.

(2) “Nudity” or “nude” means being devoid of a covering for the male or female genitalia consisting of an opaque material which does not simulate the organ covered and in the case of a female exposing to view one or both breasts without a circular covering, centered on the nipple, that is at least three inches in diameter and does not simulate the organ covered.

Statutory Reference: ORS 21.410.

History: Ord. 1034 §1, 1984.

5.06.030 Permits required.

(1) It is a violation of this code for any person to engage in, conduct or carry on or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of any adult business unless a permit for such business has first been obtained from the City Recorder.

(2) It is a violation of this code for any person to entertain in any adult business unless a permit for such entertainment or employment has first been obtained from the City Recorder.

Statutory Reference: ORS 221.410.

History: Ord. 1034 §1, 1984.

5.06.040 Fees.

(1) Every applicant for a permit to own, maintain, operate or conduct an adult business shall file an application with the City Recorder and pay a nonrefundable fee of $500.00.

(2) Every applicant for a permit to entertain or be employed by any adult business shall file an application with the City Recorder and pay a nonrefundable fee of $50.00.

Statutory Reference: ORS 221.410.

History: Ord. 1034 §1, 1984.

5.06.050 Application for adult business permit.

(1) An application for such an adult business permit shall set forth the following:

(a) Written proof that the applicant is at least eighteen years of age;

(b) Business occupation, or employment for the three (3) years immediately preceding the date of application;

(c) The business license and permit history of the person in operating a business identical to or similar to those regulated by this Chapter;

(d) Whether such person, previously operating such business in this or any other city or state under any license or permit, has had such license or permit revoked or suspended, the reason(s) therefore, and the business activity or occupation of the person subsequent to such action of suspension or revocation;

(e) The name, address, telephone number, birth date and principal occupation of the applicant and managing agent;

(f) The name, address and telephone number of the business or proposed business and a description of the exact nature of the business to be operated;

(g) Whether the business or proposed business is the undertaking of a sole proprietorship, partnership or corporation. If a partnership, the application shall set forth the names, birth dates, addresses, telephone numbers, principal occupations and respective ownership shares of each partner, whether general, limited, or silent. If a corporation, the application shall set forth the corporate name, a copy of the articles of incorporation, and the names, addresses, birth dates, telephone numbers and principal occupations of every officer, director and shareholder (having more than five percent of the outstanding shares) and the number of shares held by each;

(h) Any criminal convictions, or arrests relating to theft, controlled substances, gambling, prostitution, obscenity, fraud, tax evasion, or racketeering as defined in Chapter 166 of Oregon Revised Statutes, of each applicant and natural person enumerated in subdivisions (a) through (g) of this subsection;

(i) All residence addresses for the past three years of each natural person enumerated in subdivisions (a) through (g) of this subsection;

(j) A personal financial statement of each natural person enumerated in subdivisions (a) through (g) of this subsection, including the location of all of such persons’ bank accounts, the amounts respectively deposited therein, and a complete listing of all outstanding debts and loans.

(2) Each applicant and natural person enumerated in Subsection (1) of this Section shall personally appear before the Chief of Police, or his designee, for fingerprinting and the taking of photographs.

(3) The application form required pursuant to this section, which contains personal and business information, shall remain confidential to the maximum extent permitted by law.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]

5.06.060 Application to entertain in or be employed by an adult business.

(1) An application for a permit to entertain or work in an adult business shall set forth the following:

(a) Written proof that the applicant is at least eighteen years of age;

(b) The name, address, telephone number, birth date and principal occupation of the applicant;

(c) The social security number of the applicant;

(d) The name of the business and the business address of the adult business(es) where the applicant intends to entertain or work, if known;

(e) The business, occupation, or employment history of applicant for the three years immediately preceding date of application;

(f) Any arrests or criminal convictions relating to theft, controlled substances, gambling, obscenity, prostitution, fraud, tax evasion, or racketeering as defined in Chapter 166 of Oregon Revised Statutes; and, in the case of any person who will carry out any work relating to security or maintaining order in an adult business, such as a bouncer, any arrests or convictions relating to harassment, assault, menacing or the use or possession of weapons as defined in Oregon Revised Statutes.

(2) Each applicant shall personally appear before the Chief of Police or his designee for fingerprinting and the taking of photographs.

(3) The application form required by this section, which contains personal information, shall remain confidential to the maximum extent permitted by law.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]

5.06.070 Issuance and renewal of adult business permit.

Upon the filing of an application for and payment of the required fee, the Chief of Police shall conduct an investigation of the applicant and the City Recorder shall issue such permit if no cause for denial as noted herein exists.

(1) The application for a business permit shall be denied if:

(a) The applicant, or any other person who will be directly engaged in the management or operation of the business, or any person who owns a five percent of more interest in the business, has previously owned or operated a business regulated by this Chapter and the license or permit for such business has been revoked for cause which would be grounds for revocation pursuant to this Chapter, or if such business has been found to constitute a public nuisance and abatement has been ordered; or if such person has been convicted of or evidence exists that supports a finding by the preponderance of the evidence the applicant or such other person has committed any criminal offense noted in GMC Section 5.06.050;

(b) The operation as proposed by the applicant would not comply with all applicable requirements of this code including but not limited to the building, health, planning, zoning and fire codes of the city;

(c) Any statement in the application is found to be false or any required information is withheld;

(d) Any employee is found to have committed any criminal offense noted in GMC Section 5.06.060, and such violation either occurred on the premises of the establishment subject to the permit, or was connected in such time and manner with the operation of the establishment, so that the person(s) in charge of the adult business knew, or should reasonably have known, that such violation(s) would occur.

(2) For the purpose of this Chapter, the offenses listed in this section shall be considered to be defined by the statutes of the state unless otherwise specified. Any arrest or conviction for conduct other than that denoted by the statutes of the state or ordinances of the city specified herein shall be considered to be equivalent to one of such offenses if the elements of such offense for which the person was arrested or convicted would have constituted one of the above offenses under the applicable Oregon statutes or Gladstone ordinance provisions.

(3) Notwithstanding the mandatory direction of subsection (1), the City Recorder may grant a permit, with the concurrence of the Chief of Police, despite presence of one or more of the factors enumerated, if he concludes that the applicant has established to his satisfaction that the behavior evidenced by such factor is not likely to recur, or is remote in time, or occurred under circumstances which diminish the seriousness of the factor as it relates to the purpose of this Chapter.

(4) The permit shall be for a term of one (1) year, shall be nontransferable, shall expire on the first anniversary of its issuance, shall be valid only for a single location, and shall be displayed on such premises so as to be visible to patrons. When the business location is changed, the address of the new location shall be provided in writing to the City Recorder for approval at least ten (10) days prior to such change.

(5) Denial of a permit may be appealed to the City Council by filing written notice of an appeal with the City Recorder within ten (10) days of the date of denial.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.080 Issuance and renewal of permit to entertain in or be employed by an adult business.

Upon receipt of an application for a permit to entertain in or to be employed by an adult business, the Chief of Police shall conduct an investigation of the applicant and the City Recorder shall issue such permit if no cause for denial as noted herein exists.

(1) Application for a permit shall be denied if:

(a) The applicant has been convicted of or evidence exists that supports a finding by the preponderance of the evidence that the applicant has committed any criminal offense noted in GMC Section 5.06.060; or

(b) Any statement in the application is found to be false.

(2) For the purpose of this Chapter, the offenses listed in this section shall be considered to be defined by the statutes of the state unless otherwise specified. Any arrest or conviction for conduct other than that denoted by the statutes of the state or ordinances of the city specified herein shall be considered to be equivalent to one of such offenses if the elements of such offense for which the person was arrested or convicted would have constituted one of the above offenses under the applicable Oregon statutes or Gladstone ordinance provisions.

(3) Notwithstanding the mandatory direction of subsection (1), the City Recorder may grant a permit, with the concurrence of the Chief of Police, despite the presence of one or more of the factors enumerated, if he concludes that the applicant has established to his satisfaction that the behavior evidenced by such factor is not likely to recur, or is remote in time, or occurred under circumstances which diminish the seriousness of the factor as it relates to the purpose of this Chapter.

(4) The permit shall be for a term of one (1) year, shall be nontransferable, shall expire on the first anniversary of its issuance and shall be available for inspection at such premises in which the permittee is entertaining or employed.

(5) Denial of a permit may be appealed to the City Council by filing written notice of an appeal with the City Recorder within ten (10) days of the date of denial.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.090 Revocation or suspension of permit.

(1) Any permit issued for an adult business pursuant to this Chapter may be revoked or suspended by the City Recorder, with the concurrence of the Chief of Police, for any cause which would be grounds for denial of a permit or where investigation reveals that any violation of the provisions of this Chapter or any offense noted in GMC Section 5.06.060 has been committed by any person who entertains or is employed on the premises and such offense is connected in time and manner with the operation of the establishment so that the person(s) in charge of such establishment knew, or should reasonably have known, that such violations would occur, or that such violations have been permitted to occur on the premises by the permit holder or any employee, or that a lawful inspection has been refused, or that such adult business activities cause significant litter, noise, vandalism, vehicular or pedestrian traffic congestion, or other locational problems in the area around such premises.

(2) Any permit issued to any person to entertain or work in an adult business may be revoked or suspended by the City Recorder for any cause which would be grounds for denial of a permit.

(3) The City Recorder, upon revocation or suspension of any permit issued pursuant to this Chapter, shall give the permittee written notice of such revocation or suspension by causing notice to be served upon the permit holder at the business or residence address listed on the permit application. Service of such notice shall be accomplished either by mailing the notice by certified mail, return receipt requested, or at the option of the City Recorder, by personal service in the same manner as a summons served in an action at law. When notice is sent by certified mail and is returned, receipt unsigned, service of notice shall be accomplished by personal service in the same manner as a summons is served in an action at law. Refusal of the service by the person whose permit is suspended or revoked is prima facie evidence of receipt of the notice; provided further, that service of notice upon the person in charge of a business during its hours of operation shall constitute prima facie evidence of notice to the person holding the permit to operate the business. Suspension or revocation shall be effective and final ten (10) days after the giving of such notice, unless such suspension or revocation is appealed by filing a written notice of appeal to the City Council with the City Recorder of the city.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.100 Appeals.

The filing of an appeal of a revocation or suspension of a permit under this Chapter shall stay the effectiveness of such suspension or revocation until the appeal is determined by the council. Upon receipt of notice of the appeal, the City Recorder shall file a report with the council containing the reasons for such denial, revocation or suspension. The notice of appeal filed with the City Recorder shall contain an address for the appellant to which all notices herein required may be mailed. The City Recorder shall set a date for a council hearing upon the denial, revocation or suspension. At the hearing the City Recorder or his designee shall report to the council his reasons for denying, revoking or suspending the permit. The person whose application has been denied or whose permit has been revoked or suspended shall have the right to call witnesses and be heard by council and file a written statement in his behalf. At the conclusion of the hearing, the council shall determine the appeal and the decision of the council shall be final. If the council denies the appeal, the revocation or suspension shall be effective immediately.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.110 Duties of adult business permit holder.

(1) No person who has been issued a permit to operate a business regulated under this Chapter shall permit any person to engage in any conduct for which a permit is required by Subsection (2) of GMC Section 5.06.030 unless:

(a) Such person has a valid permit issued by the City Recorder to perform such act; and

(b) Written notice has been given to the City Recorder that such person will engage in such activity on the premises; and

(c) The name and current residence address of such person has been placed on file with the City Recorder.

(2) Upon termination of the employment of any such person, the business permit holder shall give written notice of such termination to the City Recorder within ten days of such termination. Further, the adult business permit holder shall, within ten days thereof, inform in writing the City Recorder of any change in the information required by GMC Section 5.06.050 (application for adult business permit).

(3) A current, complete copy of all financial records required to be kept by an adult business permit holder for Oregon state and federal tax purposes regarding the operation of such business shall be maintained on such business premises. Such records shall be subject to inspection pursuant to GMC Section 5.06.170 (inspection of premises) of this Chapter.

(4) All nude entertaining shall only occur on a stage which is raised at least two feet (2’) from the level of the main floor in the adult business, and shall only be provided by persons who have a valid permit when required by this Chapter.

(5) No nude entertaining shall occur closer than ten feet (10’) from any patron.

(6) No person shall be admitted to an adult business as a patron or customer unless such person is eighteen years of age or older or accompanied by parent or guardian.

(7) No person under the age of eighteen shall entertain in or be employed by an adult business.

(8) No person employed by an adult business shall engage in any activity on any property in the vicinity of any adult business for the purpose of soliciting, beckoning, requesting or suggesting to any person(s) to enter such premises as a patron.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.120 Prohibited conduct in adult business.

(1) It is unlawful for any person while engaging in nude entertaining in an adult business to come into physical contact with any patron.

(2) It is unlawful for any person while engaging in nude entertaining in an adult business to directly or indirectly accept any gratuity.

(3) It is unlawful for any person who performs nude entertainment in an adult business, while not entertaining, to come into physical contact with any patrons or to appear in any area to which patrons have access while in a state of nudity.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.130 Advertising restrictions.

No adult business regulated under this Chapter shall cause to be placed or maintained, in such a location as can be viewed by persons in any public street, any sign(s), photographic, pictorial or other graphic representation(s) that depict in whole or in part, or any page, poster or other printed matter bearing a verbal description or narrative account of, the following:

(1) Sadomasochistic abuse, sexual conduct or sexual excitement, as defined in ORS 167.060; or

(2) Nudity.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]

5.06.140 Hours of operation.

No nude entertaining shall occur in an adult business between the hours of two a.m. and eight a.m.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.150 Exterior design restrictions.

No adult business shall have a window or door on the exterior wall which permits an interior view of the premises from the street or sidewalk.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.)

5.06.160 Maintenance of premises in violation declared a nuisance—Abatement.

Any establishment maintained in violation of the provisions of this Chapter is declared to be a public nuisance. The City Attorney is authorized to bring any action or suit to abate such nuisance by seeking injunctive or any other appropriate relief in any appropriate forum when he or she has reasonable cause to believe a nuisance under this section exists, regardless of whether or not any individual has been convicted of a violation of this Chapter.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.170 Inspection of premises.

A police officer or other city employee designated by the City Recorder may, during hours the establishment is open for business, upon presentation of proper identification, inspect those portions of any premises in which an adult business regulated under this Chapter is conducted that are open to or frequented by patrons and the records kept on the premises as required by Subsection (3) of GMC Section 5.06.110. Such inspection shall be limited in scope to that necessary to determine compliance with the regulatory provisions of this Chapter. Failure to permit such inspection shall be grounds for revocation or suspension of the permit required by this Chapter.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.

5.06.180 Penalty.

(1) The violation of any provision of this Chapter shall subject the violator to suspension or revocation of the involved permit pursuant to GMC Section 5.06.090 as well as judicial proceedings as noted in GMC Section 5.06.160.

(2) Violation of any provision of GMC Section 5.06.120 is punishable upon conviction by a fine of not more than five hundred dollars ($500) or by imprisonment not to exceed six (6) months, or both.

Statutory Reference: ORS 221.410

History: Ord. 1034 §1, 1984.