The city ordinance that regulates sexually oriented businesses does not allow authorities to revoke the license of such a business for employing someone under 18.

"There's a laundry list of things we can use to deny or revoke a license, but having a 12-year-old dancing in their establishment is not one of the things that automatically enables us to revoke their license," said Lt. Christina Smith, a Dallas police vice unit commander who oversees licensing of such establishments.

Authorities say that over a two-week period last year, the sixth-grader danced at Diamonds Cabaret. They also say they found a 17-year-old girl working in the club in January.

Police are continuing to investigate whether the club's management knew that the girl — a runaway at the time — was underage.