2023 Tennessee Code › Title 7 - CONSOLIDATED GOVERNMENTS AND LOCAL GOVERNMENTAL FUNCTIONS AND ENTITIES (§§ 7-1-101 — 7-91-104) › LOCAL GOVERNMENT FUNCTIONS (§§ 7-51-201 — 7-69-116) › Chapter 51 - MISCELLANEOUS GOVERNMENTAL AND PROPRIETARY FUNCTIONS (§§ 7-51-201 — 7-51-2502) › Part 11 - ADULT-ORIENTED ESTABLISHMENT REGISTRATION ACT OF 1998 (§§ 7-51-1101 — 7-51-1122) › Section 7-51-1109 - Revocation, suspension or annulment of licenses

(a)
The board shall revoke, suspend or annul a license or permit for any of the following reasons:
(1)
Discovery that false or misleading information or data was given on any application or material facts were omitted from any application;
(2)
The operator, entertainer, employee, or any escort violates any provision of this part; provided, that an operator has a duty to supervise conduct on the premises of the adult-oriented establishment and shall be deemed responsible for the conduct of an entertainer, employee, or escort, if the operator knew, or should have known, of the violation and authorized, approved, or, in the exercise of due diligence, failed to take reasonable efforts to prevent the violation;
(3)
The operator, entertainer, employee, or escort becomes ineligible to obtain the appropriate license or permit;
(4)
Any cost or fee required to be paid by this part is not paid;
(5)
Any intoxicating liquor or malt beverage is served or consumed on the premises of the adult-oriented establishment, when an operator, employee, entertainer, or escort knew, or should have known, of the violation and authorized, approved, or, in the exercise of due diligence, failed to take reasonable efforts to prevent the violation;
(6)
An operator who, with actual or constructive knowledge, employs an employee who does not have a permit or provides space on the premises, whether by lease or otherwise, to an independent contractor who performs or works as an entertainer without a permit;
(7)
Any operator, employee or entertainer sells, furnishes, gives or displays, or causes to be sold, furnished, given or displayed to any minor any adult- oriented entertainment or adult-oriented material;
(8)
Any operator, employee or entertainer denies access of law enforcement personnel to any portion of the licensed premises wherein adult-oriented entertainment is permitted or to any portion of the licensed premises wherein adult-oriented material is displayed or sold;
(9)
An operator, who with actual or constructive knowledge, fails to maintain the licensed premises in a sanitary condition by allowing continuing violations of the published health code, rules, or regulations specifically applicable in that jurisdiction, based upon an inspection by the appropriate health authority for that jurisdiction; and
(10)
Any operator, employee or entertainer is convicted of a specified criminal act, as defined in §
7-51-1102
, provided that such violation occurred on the licensed premises.
(b)
(1)
Notwithstanding anything in this part to the contrary, before revoking or suspending any license or permit, the chair shall give the license holder or permit holder not less than ten (10) nor more than twenty (20) days' written notice of the charges against such license holder or permit holder and of the revocation of such license or permit, or of the period of time such license or permit is to be suspended; such notice shall also advise the license holder or permit holder of the license holder's or permit holder's right to request a hearing before the board. In the event the license holder or permit holder does not request in writing a hearing before the board within the time set forth in such notice, the suspension or revocation shall be effective beginning the date set forth in such notice.
(2)
If the license holder or permit holder desires to request a hearing before the board to contest the suspension or revocation, such request shall be made in writing to the county mayor of such county within ten (10) days of the license holder's or permit holder's receipt of the notification from the board. If the license holder or permit holder timely requests such a hearing, the effective date of a suspension or hearing shall be stayed pending the final outcome of judicial proceedings to determine whether such license or permit has been properly revoked or suspended under the law.
(3)
If the license holder or permit holder timely requests such a hearing, a public hearing shall be held within fifteen (15) days of the county mayor's receipt of such request before the board, at which time the license holder or permit holder may present evidence contrary to this part. The board shall hear evidence concerning the basis for such suspension or revocation and shall affirm or reverse the suspension or revocation at the conclusion of such hearing; any such hearing shall be concluded no later than twenty-two (22) days after the license holder's or permit holder's receipt of the notification of the suspension or revocation, unless an extension beyond such time period is requested by the license holder or permit holder and granted by the board.
(c)
(1)
If the board affirms the suspension or revocation, the county attorney for such county shall institute suit for declaratory judgment in a court of record in such county, within five (5) days of the date of any such affirmation seeking an immediate judicial determination of whether such license or permit has been properly revoked or suspended under the law.
(2)
Any operator whose license is revoked shall not be eligible to receive a license for five (5) years from the date of revocation.
(3)
The applicant shall be entitled to judicial determination of the issues within two (2) days after joinder of issue, and a decision shall be rendered by the court within two (2) days of the conclusion of the hearing.
(4)
The board shall have the burden of showing that a revocation or suspension of a license under this section is not arbitrary or capricious. If a board decision is found by the court to be clearly erroneous, the court may overturn the decision as being arbitrary or capricious.
(5)
This subsection (c) shall apply in any county that, pursuant to §
7-51-1120
, adopts this part as being applicable in its county, unless the county legislative body of that county elects to have subsection (d) apply.
(d)
(1)
In any county in which the legislative body, in accordance with subdivision (d)(3), elects to make this subsection (d) applicable in its county, if the board affirms the suspension, revocation, or annulment of the license or permit of the holder, the license or permit holder may appeal the decision to a court of record in the county, within ten (10) days of any such affirmation, by common-law writ of certiorari. The appellant shall have the burden of showing to the court that the revocation, suspension, or annulment is illegal, arbitrary or capricious. If a court finds the board decision is clearly erroneous, the court may overturn the decision as being illegal, arbitrary or capricious.
(2)
Any operator whose license is revoked shall not be eligible to receive a license for five (5) years from the date of revocation.
(3)
The legislative body of any county that, pursuant to §
7-51-1120
, adopts this part as being applicable in its county, shall also have the option of electing to make this subsection (d) applicable in its county. Any action by the county may be rescinded by the legislative body, in which case subsection (c) shall apply.
Acts 1987, ch. 432, § 9; 1998, ch. 1090, § 1; 2001, ch. 183, § 5; 2003, ch. 90, § 2; 2006, ch. 943, §§ 4 - 9; 2008, ch. 1085, §§ 2, 3.