City News & Novelty, Inc. v. City of Waukesha

604 N.W.2d 870, 231 Wis. 2d 93, 1999 Wisc. App. LEXIS 1157
CourtCourt of Appeals of Wisconsin
DecidedOctober 20, 1999
Docket97-1504
StatusPublished
Cited by14 cases

This text of 604 N.W.2d 870 (City News & Novelty, Inc. v. City of Waukesha) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City News & Novelty, Inc. v. City of Waukesha, 604 N.W.2d 870, 231 Wis. 2d 93, 1999 Wisc. App. LEXIS 1157 (Wis. Ct. App. 1999).

Opinion

SNYDER, J.

¶ 1. City News and Novelty, Inc. (City News) appeals from a circuit court judgment affirming the City of Waukesha's (the City) decision not to renew City News’s license to operate an adult-oriented establishment. City News raises the following issues on appeal. First, it contends that the City's adult establishment licensing scheme is unconstitutional because it fails to offer explicit standards for license renewal, provides inadequate time limits for judicial review, fails to preserve the status quo throughout the administrative process and does not permit prompt judicial review. Second, City News raises due process arguments claiming that it was deprived of an impartial administrative review, that it was given inadequate notice of the allegations against it and that the City improperly invoked the most severe sanction of nonrenewal. Finally, it contends that the grounds for nonrenewal were insufficient as a matter of law. 1

*98 ¶ 2. While we find City News's arguments unavailing in large part, we conclude that § 8.195(3)(d) of the City of Waukesha, Wis., Municipal Code (1995) (hereinafter MUNICIPAL CODE), providing an applicant the right to a public hearing, is constitutionally infirm. However, because the public hearing provision of §8.195(3)(d) is severable from the remainder of the ordinance, we reverse as to this provision and affirm as to the remainder.

BACKGROUND

¶ 3. City News is an adult-oriented establishment in the city of Waukesha which sells, rents and otherwise makes available to its customers sexually explicit books, magazines, videotapes and other materials. It also provides viewing booths in which its customers may view videotapes.

¶ 4. City News is licensed annually under the provisions of § 8.195 of the Municipal Code. 2 Licensure *99 is required for an individual or a corporation to operate or maintain an adult-oriented establishment. See id. *100 § 8.195(2)(a). An application to renew a license must be filed no later than sixty days before the license expires. See id. § 8.195(7). The city clerk shall notify the appli *101 cant whether the application is granted or denied within twenty-one days of the application's receipt. See id. § 8.195(3)(c).

. ¶ 5. For a corporate applicant, the licensure standards state that no officer, director or stockholder "shall have been found to have previously violated this section within 5 years immediately preceding the date of the application." Id. § 8.195(4)(b)2. The ordinance then sets forth specific requirements for the physical layout and the conduct of patrons and employees of the establishment which, among other things, provide that: (1) every viewing booth or room must have at least one side entirely open to the public, 3 (2) no patron may engage in any type of sexual activity, and (3) no employee may permit a minor to loiter around or patronize the establishment. See id. § 8.195(9)(b)2, (9)(c), (10)(c).

¶ 6. On November 15, 1995, City News applied for renewal of its license which was due to expire on January 25,1996. On,December 19,1995, the common council passed a resolution finding that City News had committed several code violations and therefore denied its renewal application. The violations included per *102 mitting minors to loiter on the premises, failing to maintain an unobstructed view of the viewing booths and allowing patrons to engage in sexual conduct inside the booths.

¶ 7. After City News requested review of the resolution, the common council affirmed the decision. City News sought administrative review, and on June 28, 1996, the City of Waukesha Administrative Review Appeals Board affirmed the common council's decision. City News then filed a certiorari action in the circuit court seeking judicial review of the denial of its license renewal application. In an April 2, 1997 decision, the circuit court affirmed the board's determination. City News appeals. 4

STANDARD OF REVIEW

¶ 8. In an action for certiorari review, appellate review is the same as in the trial court. See State ex rel. Wilson v. Schocker, 142 Wis. 2d 179, 183, 418 N.W.2d 8, 9 (Ct. App. 1987). We confine our review to whether: (1) the board kept within its jurisdiction; (2) the board acted according to the law; (3) the action was arbitrary, *103 oppressive or unreasonable; and (4) the evidence presented was such that the board might reasonably make the order or determination in question. See State v. Goulette, 65 Wis. 2d 207, 215, 222 N.W.2d 622, 626 (1974). The primary issues raised in this case involve constitutional questions and questions of statutory construction which are questions of law that we review de novo. See City of Waukesha v. Town Bd., 198 Wis. 2d 592, 601, 543 N.W.2d 515, 518 (Ct. App. 1995); State v. Migliorino, 150 Wis. 2d 513, 524, 442 N.W.2d 36, 41 (1989).

DISCUSSION

A. First Amendment Protections

¶ 9. City News raises a number of facial challenges to the constitutionality of the City's licensing scheme. "Although facial challenges to legislation are generally disfavored, they have been permitted in the First Amendment context where the licensing scheme vests unbridled discretion in the decisionmaker and where the regulation is challenged as overbroad." FW/PBS, Inc. v. City of Dallas, 493 U.S. 215, 223 (1990).

¶ 10. FW/PBS is the United States Supreme Court's most recent articulation of the constitutional principles that apply to municipal licensing schemes implicating First Amendment rights. The Court held that a licensing scheme that exists as a prior restraint on businesses purveying sexually explicit but protected speech is constitutionally permissible if it contains safeguards to minimize the possibility that the licensing procedure will be used to suppress speech. See id. at 226. The Court then set forth several requirements that licensing ordinances must follow to pass constitu *104 tional scrutiny. First, the regulatory scheme cannot place "unbridled discretion in the hands of a government official or agency." Id. at 225 (quoting City of Lakewood v. Plain Dealer Publ'g Co., 486 U.S. 750, 757 (1988)).

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Bluebook (online)
604 N.W.2d 870, 231 Wis. 2d 93, 1999 Wisc. App. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-news-novelty-inc-v-city-of-waukesha-wisctapp-1999.