Sec. 5-329.01. Inspections and audits; records to be kept

The Director or his designee shall at regular intervals inspect the premises of every model studio to determine that it is operated in compliance with this Division. If a properly identified inspector or officer is denied entry to any model studio at any reasonable time, the Director shall immediately suspend the license of the model studio or the use and occupancy permit of the business, given notice of the suspension, take steps to effect the closing of the establishment or business, and forthwith hold a hearing before the Director or his designee to determine whether the license or use and occupancy permit should be reinstated, permanently revoked, or continue to be suspended, as the Director may determine to be appropriate.

The Director or his designee may request the Director of Finance or his designee to inspect and audit the financial books and records of all model studios to determine the continuing compliance with the provisions of this Division. The Director or his designee shall give written notice of the Department's intent to inspect books and records to the model studio. The notice shall state the date, time and place of the audit. The model studio shall produce its books and records at that time and place. If the model studio or its owners or principals unreasonably refuse or fail to produce the books and records after notice, the Director shall immediately suspend the license of the model studio or the use and occupancy permit of the business, give notice of the suspension, take steps to effect the closing of the establishment or business, and forthwith hold a hearing, upon due notice before the Director or his designee, to determine whether the license or use and occupancy permit should be reinstated, permanently revoked, or continue suspended, as the Director may determine to be appropriate.

Every model studio licensee shall prepare and submit to the Director annually with his application for license renewal a certified financial statement, including a statement of income by sources and a statement of financial condition, with respect to the licensed establishment for the year prior to the date upon which the licensee submits his application for license renewal.

Every model studio shall maintain complete and accurate books and records of the income of the establishment and the income of any persons who offer to render or render services within that establishment, setting out with specificity the items of services or goods which generate the income of the establishment or the income of persons associated with the establishment.