(a) The clerk-treasurer before issuing any license provided for in this chapter shall investigate the character of the applicant and the officers, directors and managers of the business if it is a corporation. No license shall be issued if he shall find:
(1) That any of the persons have previously been connected with any bathhouse, massage parlor, massage school, massage therapy clinic, massage therapy school, adult book store, adult museum or adult theater where the license therefor has been revoked or any of the provisions of the law applicable to the establishments has been violated;
(2) That any of the persons have previously been convicted of a felony in connection with the operation of any bathhouse, massage parlor, massage school, massage therapy clinic, massage therapy school, adult bookstore, adult museum, or adult theater;
(3) That the premises sought to be so licensed failed to comply in any manner with the ordinances and laws applicable thereto.
(b) If the application is denied by the clerk-treasurer, the applicant shall be notified in writing of the reasons for the rejection and shall have the right to appeal this decision to the town board.
(c) In the event that the application for a license is rejected, the town shall retain twenty-five percent of license fee paid for the purpose of defraying the costs processing the application. The remainder of the license fee paid shall be returned to the applicant whose license was rejected. (Ord. 590 § 6, 1978).