Posted by Eugene Volokh:
A Rare Victory for a Sexually Themed Business in a Case Applying *Renton* 
Scrutiny,
http://volokh.com/archives/archive_2009_09_06-2009_09_12.shtml#1252600489


   in last week's [1]Annex Books, Inc. v. City of Indianapolis, a
   unanimous panel decision written by moderate conservative Judge Frank
   Easterbrook.

   A city ordinance imposed a midnight closing time for all businesses --
   including ones with no on-premises video viewing or live sexual
   displays -- that "devote[] 25% of more of [their] space or inventory
   to, or obtain[] at least 25% of its revenue, from adult [i.e.,
   sufficiently sexually themed] books, magazines, films, and devices."
   The city argued that such an ordinance was constitutional under the
   relaxed City of Renton standard of review applicable to "[2]erogenous
   zoning" ordinances. But all it offered as support was speculation that
   the ordinance will indeed prevent crime or other secondary effects
   (such as lower property values), coupled with generalizations from
   past decisions upholding restrictions on where sexually themed
   businesses can locate.

   The panel concluded that more evidence was necessary to support the
   ordinance, and the evidence had to be specifically focused on (1) the
   supposed effects of businesses that had no on-premises video viewing
   or live sexual displays, and on (2) the supposed benefits of closing
   time ordinances rather than location restrictions. It then remanded to
   the trial court "for an evidentiary hearing consistent with this
   opinion."

References

   1. http://caselaw.findlaw.com/data2/circs/7th/051926p.pdf
   2. http://www.volokh.com/posts/1211220349.shtml

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