CHAPTER 285

FORMERLY

SENATE BILL NO. 403

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 16, TITLE 24 OF THE DELAWARE CODE CREATING ADDITIONAL GROUNDS FOR REVOCATION OF A LICENSE TO OPERATE AN ADULT ENTERTAINMENT ESTABLISHMENT; AND AUTHORIZING THE COMMISSION ON ADULT ENTERTAINMENT ESTABLISHMENTS TO ADOPT REGULATIONS CONCERNING ENFORCEMENT.

WHEREAS, the General Assembly finds that the public policy of the State of Delaware is served by placing the burden of supervising the activities of employees and independent contractors of adult entertainment establishments on the owners, directors, officers, or principal stockholders of such establishments; and

WHEREAS, the General Assembly finds that part of that supervision should include diligence in preventing such employees and independent contractors from violating laws relating to prostitution, obscenity, and sexual offenses; and

WHEREAS, the General Assembly finds that revocation of an adult entertainment establishment license is an appropriate response to the failure to supervise employees and independent contractors to the extent that such employees and independent contractors are convicted of crimes relating to prostitution, obscenity, and sexual offenses; and

WHEREAS, the General Assembly finds that the Commission on Adult Entertainment Establishments should be empowered to impose regulatory sanctions against such establishments for violation of any provision of this chapter, and that a bond requirement would facilitate the collection of any fines imposed as sanctions by the Commission.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 1617, Chapter 16, Title 24 of the Delaware Code by striking subsection (a); by striking subsection (c); and by redesignating present subsection (b) as new subsection (c).

Section 2. Amend §1617, Chapter 16, Title 24 of the Delaware Code by adding thereto the following new subsections:

"(a) The license for the operation of an adult entertainment establishment other than a massage establishment shall be revoked for the following reasons:

(1) An intentional misrepresentation or omission of any material fact required to be filed pursuant to this chapter;

(2) A transfer of a license in violation of §1608 (a) or §1610 (a) of this Title; or the failure to comply with §1622 or §1623 of this Title;

(3) A conviction of the licensee for any of the following offenses, including conspiracy to commit any of the following offenses: lewdness, obscenity, prostitution, promoting prostitution, sexual assault, sexual misconduct, indecent exposure, incest, rape or sodomy, in this State or any other state or Jurisdiction;

(4) A conviction of any director, officer, principal stockholder, manager, procurer, employee or independent contractor of the licensee or of a partner associated with the licensee for any of the following offenses, including conspiracy to commit any of the following offenses: lewdness, obscenity, prostitution, promoting prostitution, sexual assault, sexual misconduct, indecent exposure incest, rape or sodomy, in this State or any other state or jurisdiction, occurring on the licensed premises; or

(5) A conviction of any director, officer, principal stockholder manager, procurer employee, or independent contractor of the licensee, or of a partner associated with the licensee for any of the following offenses, including conspiracy to commit any of the following offenses: lewdness, obscenity, prostitution, promoting prostitution, sexual assault, sexual misconduct, indecent exposure, incest, rape or sodomy, in this State or any other jurisdiction, not occurring on licensed premises, where said director, officer, principal stockholder, manager, procurer, employee, or independent contractor, at the time of the conduct constituting the offense, was off the premises at the request or direction or pursuant to the authority of the licensee for the purpose of furthering the business of the licensee.

(b) The person or persons responsible for any intentional misrepresentation or omission of any material fact required to be filed pursuant to this chapter shall be fined one thousand dollars ($1,000), imprisoned for 30 days or both. For the purpose of this subsection, a fact is deemed "material" when it could have affected the decision as to whether to grant or deny an application for license."

Section 3. Amend §1618, Chapter 16, Title 24 of the Delaware Code by adding the following new subsections'

"(c) Notwithstanding anything in §1617 to the contrary, the Commission may adopt regulations imposing sanctions for violations of any provision of this chapter. Such sanctions may include fines or suspension of license to operate an adult entertainment establishment. The sanctions so adopted may be imposed in lieu of or in addition to license revocation.

(d) The Commission may adopt regulations requiring a licensee to post a bond with surety of $10,000 for the collection of any fines imposed pursuant to regulations promulgated under subsection (c) above. In the event that the Commission requires the posting of a bond with surety, the bond shall be executed and proof of its execution shall be demonstrated to the Commission prior to the issuance of a license or renewal thereof.

Approved June 24, 1872.