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Before any applicant may be licensed to operate a sexually oriented business, the applicant must have truthfully and adequately disclosed all information required by and listed in this Chapter. A separate license is required for each fictitious name under which a person conducts business. Only one license shall be issued for each person for whom a finding of suitability, as defined by this Chapter, is required under the terms of this Code. All business expenses are made at the applicant’s risk, as the license may terminate prior to amortization thereof.

(1) All persons desiring to obtain a business license to engage in a sexually oriented business within the City shall first file an application with the Director on a form provided by the City. All persons who furnish property or services to a licensee under any arrangement pursuant to which the person receives payments based on earnings, profits or receipts from the sexually oriented business must file an application pursuant to this Section and be found suitable by the Director.

(2) All applicants shall provide the following information under oath or affirmation:

a. The correct legal name of each applicant, corporation, partnership, limited partnership, or entity doing business under an assumed name;

b. If the applicant is a corporation, partnership, or limited partnership, or individual or entity doing business under an assumed name, the information required below for individual applicants shall be submitted for each partner and each principal of an applicant, and for each officer, director, and any shareholder (corporate or personal) of more than 10 percent of the stock of any applicant. Any holding company, or any entity holding more than 10 percent of an applicant, shall be considered an applicant for purposes of disclosure under this Chapter;

c. The shareholder disclosure requirements above shall only be applicable for outcall service licenses;

d. All corporations, partnerships, or noncorporate entities included on the application shall also identify each individual authorized by the corporation, partnership, or noncorporate entity to sign the checks for such corporation, partnership, or noncorporate entity;

e. For all applicants or individuals, the application must also state:

i. Any other names or aliases used by the individual;

ii. The age, date, and place of birth;

iii. Height;

iv. Weight;

v. Color of hair;

vi. Color of eyes;

vii. Present business address and telephone number;

viii. Present residence and telephone number;

ix. Utah driver’s license or identification number;

x. Social Security number; and

xi. Financial statement and current and previous business activities and associates, covering at least a 10-year period immediately preceding the date of filing of the application.

f. Acceptable written proof that any individual is at least 18 years of age;

g. Attached to the form, as provided above, two color photographs of the applicant clearly showing the individual’s face and the individual’s fingerprints on a form provided by the Police Department. For persons not residing in the City, the photographs and fingerprints may be on a form from the law enforcement jurisdiction where the person resides. Fees for the photographs and fingerprints shall be paid by the applicant directly to the issuing agency;

h. For any individual applicant required to obtain a sexually oriented business employee license as an escort or a seminude entertainer, a certificate from the Health Department, stating that the individual has, within 30 days immediately preceding the date of the original or renewal application, been examined and found to be free of any contagious or communicable diseases;

i. A statement of the business, occupation, or employment history of the applicant for five years immediately preceding the date of the filing of the application;

j. A statement detailing the license or permit history of the applicant for the five-year period immediately preceding the date of the filing of the application, including whether such applicant previously operating or seeking to operate, in this or any other county, city, state, or territory, has ever had a license, permit, or authorization to do business denied, revoked, or suspended, or has had any professional or vocational license or permit denied, revoked, or suspended. In the event of any such denial, revocation, or suspension, state the date, the name of the issuing or denying jurisdiction, and state in full the reasons for the denial, revocation, or suspension. A copy of any order of denial, revocation, or suspension shall be attached to the application;

k. All criminal convictions or pleas of nolo contendere, except those which have been expunged, and the disposition of all such arrests for the applicant, individual, or other entity subject to disclosure under this Chapter, for 10 years prior to the date of the application. This disclosure shall include identification of all ordinance violations, excepting minor traffic offenses (any traffic offense designated as a felony shall not be construed as a minor traffic offense), stating the date, place, nature of each conviction or plea of nolo contendere, and sentence of each conviction or other disposition, identifying the convicting jurisdiction and sentencing court, and providing the court identifying case numbers or docket numbers. Application for a sexually oriented business or employee license shall constitute a waiver of disclosure of any criminal conviction or plea of nolo contendere for the purposes of any proceeding involving the business or employee license;

l. A list of convictions for all pandering, prostitution, soliciting, thefts, fraud, obtaining money under false pretenses, embezzlement or any criminal convictions involving the use of force or violence upon the person of another; or adverse civil action judgments involving allegations pertaining to fraudulent advertising, sales or trade practices, and a detailed explanation of the circumstances;

m. The complete address (including suite number) of the proposed business location in the City, with a copy of the deed, lease or other document pursuant to which applicant occupies such premises;

n. In the event the applicant is not the owner of record of the real property upon which the business or proposed business is or is to be located, the application must be accompanied by a notarized statement from the legal or equitable owner of the possessory interest in the property specifically acknowledging the type of business for which the applicant seeks a license for the property. In addition to furnishing such notarized statement, the applicant shall furnish the name, address, and phone number of the owner of record of the property, as well as the copy of the lease or rental agreement pertaining to the premises in which the service is or will be located;

o. The person(s) who will have custody of the business records at the business location;

p. Agent for service of process;

q. A description of the services to be provided by the business, with sufficient detail to allow reviewing authorities to determine what business will be transacted on the premises, together with a schedule of usual fees for services to be charged by the licensee, and any rules, regulations, or employment guidelines under or by which the business intends to operate. This description shall also include:

i. The hours that the business or service will be open to the public, and the methods of promoting the health and safety of the employees and patrons and preventing them from engaging in illegal activity;

ii. The methods of supervision preventing the employees from engaging in acts of prostitution or other related criminal activities;

iii. The methods of supervising employees and patrons to prevent employees and patrons from charging or receiving fees for services or acts prohibited by this Chapter or other statutes or ordinances;

iv. The methods for advertising and all advertising themes; and

v. The methods of screening employees and customers in order to promote the health and safety of employees and customers and prevent the transmission of disease, and prevent the commission of acts of prostitution or other criminal activity.

(3) Partnerships, Limited Partnerships, and Corporations.

a. If an applicant is a partnership or limited partnership, all application information listed in subsection (2) above shall be provided for all of the partners, including, if applicable, limited partners, the same as if each were a sole proprietor and applicant.

b. If applicant is a corporation, all application information listed in subsection (2) above shall be provided for each of the directors, officers and shareholders holding 10 percent or more of the stock of the corporation, the same as if each were a sole proprietor and applicant.

c. If applicant is a partnership or limited partnership, it shall provide a certified copy of an agreement or articles of partnership or limited partnership and certificate.

d. If applicant is a corporation, the application shall be accompanied by:

i. A certified copy of the articles of incorporation of such corporation and, if incorporated under the laws of another state, a certificate of qualification to do business in the state of Utah; and

ii. A current annual list of officers, directors and resident agent of such corporation; and

iii. A list of the stockholders, the last known residence address and telephone number of each, and their respective ownership interests in such corporation certified as being true and correct by the secretary of such corporation; and

iv. A certified copy of all minutes or resolutions by the board of directors of such corporation authorizing such license application and designating the officer to apply on such application and authorizing his verification thereof.

e. If such business is to be conducted under a name other than the legal name of the applicant, the application must be accompanied by a copy of the fictitious name certificate on file with the Utah Department of Commerce.

f. All officers, directors or shareholders which own, directly or constructively, 10 percent or more of the outstanding stock of the corporation, and the managing agent of the corporation must be investigated for determination of suitability as set forth in this Chapter.

(4) The applicant shall supplement the application by submitting a written plan setting forth the method of operation of the sexually oriented business, which shall include, but not be limited to:

a. The hours that the business will be open to the public (said hours shall include all hours escorts or outcall employees are with a patron); and

b. The methods of promoting the health and safety of employees and protecting them from assault, battery and rape; and

c. The methods of supervision of employees to prevent employees from charging the patron with any fee which is in addition to the fee paid to the business by the patron; and

d. The methods of supervision which will prevent the employees from soliciting acts of prostitution or offering to provide sexual stimulation or sexual gratification; and

e. The federal employer’s identification number; and

f. The name and the address of the certified public accountant who will certify the gross receipts upon application for renewal license; and

g. The applicant shall submit a statement disclosing the names of all persons who have invested in the proposed sexually oriented business, and who will share in or receive a percentage of the profit or return from the proposed escort service; and

h. The method of compensating employees.

(5) The failure to truthfully disclose any of the information required by this Chapter or the failure to make a full disclosure of all facts required shall be grounds for denying a license or police I.D. card or, if subsequent to issuance of a license or work card it is discovered that any applicant or person required to be investigated has not been completely truthful or has withheld any facts in answering the above questions, such failure shall be grounds for revoking the license.

(6) After the filing of a completed application and payment of all fees, the applicant shall be referred to the West Valley City Police Department for fingerprinting, investigation, and reporting as required in this Chapter.

(Ord. No. 18-24 Enacted 06/19/2018)