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(1) The licensing authority may, at any time upon the recommendation of the sheriff or as provided below suspend or revoke any license issued under this chapter:

(a) Where such license was procured by fraud or false representation of fact; or

(b) For the violation of, or failure to comply with the provisions of this chapter or any other similar local or state law by the licensee or by any of its servants, agents or employees when the licensee knew or should have known of the violations committed by its servants, agents, or employees; or

(c) For the conviction of the licensee of any crime or offense involving prostitution, promoting prostitution, or transactions involving controlled substances as defined in RCW Article 69.50 committed on the premises, or the conviction of any of the licensee’s servants, agents or employees of any crime or offense involving prostitution, promoting prostitution, or transactions involving controlled substances as defined in RCW Article 69.50 committed in the licensed premises when the licensee knew or should have known of the violations committed by its servants, agents or employees.

(2) A license procured by fraud or misrepresentation shall be revoked. Where other violations of this chapter or other applicable ordinances, statutes or regulations are found, the licensing authority shall suspend a license issued under this chapter for 30 days for the first violation, 90 days for the second violation and 120 days for the third and subsequent violations within a 24 month period, not including periods of suspension.

(3) No license suspended under the provisions of this chapter may be renewed during any period of suspension.

(4) The licensing authority may revoke a license upon the grounds for a suspension when a license has been suspended three times within a 24 month period, not including periods of suspension.

(5) The procedure for suspension and revocation is initiated by the service of a notice and order issued by the licensing authority, pursuant to SCC 6.01.135 and 6.01.140. The notice and order must be served on the licensee by certified mail or in person and will effectively suspend or revoke the license 15 days after service unless the licensee effectively appeals the notice and order. The procedure for appeal of the notice and order is set out in SCC 6.01.151 which allows for a review by the Snohomish county hearing examiner. The appeal shall be filed and processed as set forth in the provisions of chapter 2.02 SCC. During the hearing, the licensing authority shall have the burden of proof to establish the violations giving cause to suspend or revoke the license. The decision of the hearing examiner will become a final decision if no appeal is filed within 10 days of receipt of the final decision of the hearing examiner. The licensee then has the right to appeal the hearing examiner’s decision by writ of certiorari under RCW 7.16 and SCC 2.02 to the Snohomish County Superior Court. The enforcement powers of the licensing authority to suspend or revoke licenses granted under this chapter are stayed during the appeal to the hearing examiner, superior court and all judicial review. (Amended by Ord. 96-045 § 21, June 24, 1996, Eff date Sept. 26, 1997).