A. The license officer may, as provided in subsection (B) below, suspend or revoke any license issued under the provisions of this chapter at any time where the same was procured by fraud or false representation of fact; or for the violation of, or failure to comply with the provisions of this chapter by the licensee or by any of his servants, agents or employees when the licensee knew or should have known of the violations committed by his servants, agents or employees; or 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 his 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 premises in which his adult concession is conducted when the licensee knew or should have known of the violations committed by his servants, agents or employees.

B. A license procured by fraud or misrepresentation shall be revoked. Where other violations of this chapter or other applicable ordinances, statute or regulations are found, the license shall be suspended for a period of thirty days upon the first such violation, ninety days upon the second violation within a twenty-four-month period, and revoked for third and subsequent violations within a twenty-four-month period, not including periods of suspension. The license officer may assess a penalty of not less than twenty-five dollars nor more than five hundred dollars. They may also order that compensatory damages or restitution be paid to anyone injured as a result of violation.

C. The license officer shall provide at least ten days’ 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 and shall state the effective date of such revocation or suspension and the grounds for revocation or suspension. Such appeals shall be processed under AMC Chapter 17.66.010(D)(3). The decision of the license officer or city council shall be stayed during the pendency of any timely appeal except as provided in subsection (D) below.

D. Where the Anacortes building department, fire department or county health department find that any condition exists upon the premises of an adult concession 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 (C) above. 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 body under the same appeal provisions set forth in subsection (C) above, 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. 2902 § 2, 2013)