The following sections of Title 4, Subtitle 6 (“Revocation and Suspension of Local Licenses”) of Division I of this article apply in the City without exception or variation: § 4–602 (“Power of local licensing board”); and § 4–604 (“Grounds for revocation or suspension”). Section 4–605 (“Nudity and sexual displays”) of Division I of this article does not apply in the City and is superseded by § 12–2102 of this subtitle. The following sections of Title 4, Subtitle 6 (“Revocation and Suspension of Local Licenses”) of Division I of this article apply in the City: § 4–603 (“Revocation and suspension procedures”), subject to § 12–2105 of this subtitle; and § 4–606 (“Effects of revocation”), subject to § 12–2104 of this subtitle.

In this section, “adult entertainment” means: the employment or use of an individual in the sale or service of alcoholic beverages in or on the licensed premises while the individual is unclothed or in attire, costume, or clothing so as to expose to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals; the employment or use of the services of a hostess or other individual to mingle with the patrons while the hostess or other individual is unclothed or in attire, costume, or clothing described in item (1) of this subsection; the encouragement of or allowing an individual on the licensed premises to caress or fondle the breasts, buttocks, anus, or genitals of any other individual; allowing an employee or other individual to wear or use a device or covering exposed to view that simulates any portion of the breast, genitals, anus, or pubic hair; with respect to entertainment provided: allowing an individual to perform an act of or act that simulates: sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or a sexual act that is prohibited by law; the caressing or fondling of the breast, buttocks, anus, or genitals; or the display of the pubic hair, anus, vulva, or genitals; subject to item (i) of this item, allowing an entertainer whose breasts or buttocks are exposed to perform closer than 6 feet from the nearest patron; or allowing an individual to use an artificial device or inanimate object to depict, perform, or simulate an activity prohibited under item (i) of this item; or show a motion picture, still picture, electronic reproduction, or other visual reproduction depicting: an act or simulated act of sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or a sexual act that is prohibited by law; an individual being caressed or fondled on the breast, buttocks, anus, or genitals; a scene in which an individual displays the vulva, anus, or genitals; or a scene in which an artificial device or inanimate object is used to depict, or a drawing is used to portray, a prohibited act described in this subsection. Except as provided in subsection (c)(2) of this section, this section does not apply to a license holder that: offered adult entertainment as of May 31, 1993, or the transferee of the license for the same premises if the transferee continues to offer adult entertainment; or operates a theater, a concert hall, an art center, a museum, or a similar establishment that is primarily devoted to the arts or theatrical performances, when the performances presented express matters of serious literary, artistic, scientific, or political value. The Board may not authorize and a license holder may not allow: adult entertainment on the licensed premises or on adjacent property over which the license holder has ownership or control; or an individual under the age of 21 years to enter an establishment of a license holder specified under subsection (b)(1) of this section, unless the individual is: an employee, an agent, or a contractor of the establishment; or an active duty member of the armed forces of the United States. The Mayor and City Council may authorize the Board to enforce the laws and regulations of the City that govern adult entertainment business licenses. On finding that a violation of this section has occurred, the Board shall revoke or suspend the license or impose a fine or both.

The Board shall immediately suspend without a hearing the renewal license of a license holder that fails to present to the Board by March 30 annually a certificate issued by the Director of Finance showing that all personal property taxes due to the City or State are paid. The Board shall immediately reinstate a license suspended under this section without a hearing on presentation of the required certificate.

A person whose license has been revoked by the Board may not give, serve, or keep alcoholic beverages or allow alcoholic beverages to be consumed until: the court grants a stay of the order of revocation in accordance with § 12–2402 of this title; or the order of revocation is reversed on judicial review.

When the Board notifies a license holder of a violation alleged against the license and gives notice for the license holder to appear for a hearing, the Board may offer as a compromise, on a form provided by the Board, a monetary penalty if the license holder agrees to: voluntarily waive the right to a hearing under § 4–603 of this article; admit to the facts of the violation as alleged; take the corrective action prescribed in the offer made by the Board; and accept the monetary penalty offered. If a license holder does not accept the offer of compromise made by the Board in accordance with subsection (a) of this section, the license holder may accept service of notice of the complaint from the Board and inform the Board of its intent to exercise the right to a hearing under § 4–603 of this article. If an offer of compromise is accepted by a license holder under subsection (a) of this section, the Board shall: keep a record of the initial violation alleged against the license holder or the licensed establishment; issue a written finding that the offer of compromise does not impair the promotion of the peace or safety of the community; as soon as practicable, state the license holder’s acceptance of the offer of compromise on the record at a hearing of the Board; and post the result of the Board’s decision in a place accessible by the public. The Board shall adopt regulations to implement this section.