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14 <br /> § 160A-181.1. Regulation of sexually oriented businesses. <br /> (a) The General Assembly finds and determines that sexually oriented businesses can <br /> and do cause adverse secondary impacts on neighboring properties. Numerous studies that are <br /> relevant to North Carolina have found increases in crime rates and decreases in neighboring <br /> property values as a result of the location of sexually oriented businesses in inappropriate <br /> locations or from the operation of such businesses in an inappropriate manner. Reasonable local <br /> government regulation of sexually oriented businesses in order to prevent or ameliorate adverse <br /> secondary impacts is consistent with the federal constitutional protection afforded to <br /> nonobscene but sexually explicit speech. <br /> (b) In addition to State laws on obscenity, indecent exposure, and adult establishments, <br /> local government regulation of the location and operation of sexually oriented businesses is <br /> necessary to prevent undue adverse secondary impacts that would otherwise result from these <br /> businesses. <br /> (c) A city or county may regulate sexually oriented businesses through zoning <br /> regulations, licensing requirements, or other appropriate local ordinances. The city or county <br /> may require a fee for the initial license and any annual renewal. Such local regulations may <br /> include, but are not limited to: <br /> (1) Restrictions on location of sexually oriented businesses, such as limitation to <br /> specified zoning districts and minimum separation from sensitive land uses <br /> and other sexually oriented businesses; <br /> (2) Regulations on operation of sexually oriented businesses, such as limits on <br /> hours of operation, open booth requirements, limitations on exterior <br /> advertising and noise, age of patrons and employees, required separation of <br /> patrons and performers, clothing restrictions for masseuses, and clothing <br /> restrictions for servers of alcoholic beverages; <br /> (3) Clothing restrictions for entertainers; and <br /> (4) Registration and disclosure requirements for owners and employees with a <br /> criminal record other than minor traffic offenses, and restrictions on <br /> ownership by or employment of a person with a criminal record that includes <br /> offenses reasonably related to the legal operation of sexually oriented <br /> businesses. <br /> (d) In order to preserve the status quo while appropriate studies are conducted and the <br /> scope of potential regulations is deliberated, cities and counties may enact moratoria of <br /> reasonable duration on either the opening of any new businesses authorized to be regulated <br /> under this section or the expansion of any such existing business. Businesses existing at the <br /> time of the effective date of regulations adopted under this section may be required to come <br /> into compliance with newly adopted regulations within an appropriate and reasonable period of <br /> time. <br /> (e) Cities and counties may enter into cooperative agreements regarding coordinated <br /> regulation of sexually oriented businesses, including provision of adequate alternative sites for <br /> the location of constitutionally protected speech within an interrelated geographic area. <br /> (f) For the purpose of this section, "sexually oriented businesses" means any businesses <br /> or enterprises that have as one of their principal business purposes or as a significant portion of <br /> their business an emphasis on matter and conduct depicting, describing, or related to <br /> anatomical areas and sexual activities specified in G.S. 14-202.10. Local governments may <br /> adopt detailed definitions of these and similar businesses in order to precisely define the scope <br /> of any local regulations. (1998-46, s. 1.) <br /> G.S. 160a-181.1 Page 1 <br />