BILL ANALYSIS C.S.H.B. 1711 By: Brady 5-3-95 Committee Report (Substituted) BACKGROUND Residents living in certain counties and in unincorporated areas currently have no remedy or authority with regard to regulating the placement of Sexually Oriented Businesses (SOB's). Municipalities currently have the authority to zone SOB's, however the same authority has not been clearly defined for the county. PURPOSE HB 1711 would require an applicant whose premises are in an unincorporated area of a county, for an application or renewal of a permit to declare by statement if the business is a Sexually Oriented business. Also requires a county to permit and license SOB's. Establishes a Nudity Exhibitor's Permit, authorized activity for the holder, and the fees, required permits and penalties. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority in SECTION 5 of the bill to the TABC. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 11 of the Alcoholic Beverage Code, by giving counties authority to issue SOB permit. SECTION 2. Amends Sec. 11.38(d), Alcoholic Beverage Code, states that permits issued for a premises or part of a premises that is a sexually oriented business, are not exempt from fees authorized by this section. SECTION 3. Amends Sec. 11.39(a), Alcoholic Beverage Code, provides that applicants must give notice in all daily newspapers of general circulation published in the city or town in which the applicant's place of business is located or all daily newspapers or general circulation published in the most populous city or town in the county if applicant's place of business is located in an unincorporated area of a county. Provides that if no daily newspaper, notice shall be published in a newspaper of general circulation of the city, town, or county where the business is located. SECTION 4. Amends Sec. 11.391, Alcoholic Beverage Code, NOTICE BY SIGN. Requires an applicant to post, beginning on the first date notice is required and for seven consecutive days after that date, notice of the proposed hours of operation of the premises. Requires sign to be clearly visible from the street. Requires sexually oriented businesses to comply with these provisions when applying for renewal, except, that the sign must be posted, beginning the 30th day before expiration of the permit, and for seven consecutive business days after that date. Requires the commission to deny an application if applicant fails to comply with notice provisions. Business day defined as excluding, Saturday, Sunday, and legal holidays. SECTION 5. Amends Subtitle A, Title 3 of the Alcoholic Beverage Code, by adding Chapter 54. Creates a nudity exhibitors permit. Provides for the collection of an annual fee of $6,000. Also provides for authorized activities under this permit and stipulates penalties for offenses. Requires nudity exhibitor's to file a surety bond. SECTION 6. Amends Subchapter B, Chapter 61 of the Alcoholic Beverage Code to establish rules for application for and renewal of licenses for SOB's. SECTION 7. Amends Section 61.38(c), Alcoholic Beverage Code. Provides that applicants must give notice in all daily newspapers of general circulation published in the city or town in which the applicant's place of business is located or all daily newspapers or general circulation published in the most populous city or town in the county if applicant's place of business is located in an unincorporated area of a county. Provides that if no daily newspaper, notice shall be published in a newspaper of general circulation of the city, town, or county where the business is located. SECTION 8. Amends Section 61.381, Alcoholic Beverge Code. Provides that applicants must give notice in all daily newspapers of general circulation published in the city or town in which the applicant's place of business is located or all daily newspapers or general circulation published in the most populous city or town in the county if applicant's place of business is located in an unincorporated area of a county. Provides that if no daily newspaper, notice shall be published in a newspaper of general circulation of the city, town, or county where the business is located. SECTION 9. Definitions. SECTION 10. Deletes County from Section 243.007 of the Local Government Code. SECTION 11. Amends Chapter 243 of the Local Government Code by detailing steps the county must take in order to license or permit SOB's. SECTION 12. Effective Date. This Act takes effect September 1, 1995. Applies only to an application issued on or after the effective date. SECTION 13. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1711 added language requiring notification by sign and by newspaper for topless and totally nude establishments; increased the fees by $1,000 from $5,000 in the original to $6,000 contained in the substitute for a nudity exhibitors permit; requires an applicant for a nudity exhibitors permit to file a conduct surety bond with the commission. SUMMARY OF COMMITTEE ACTION HB 1711 was heard in a Public Hearing on April 11, 1995. The Chair laid out HB 1711, and recognized the author, Rep. Brady to explain the bill. The Chair recognized the following member of the 74th Legislature on the bill: The Honorable Joe Driver, State Representative; The Chair recognized members for questions. The Chair recognized the following persons to testify in favor of the bill: Mr. Al Cornelius, County Judge, Ellis County; Mr. Michael White, Greater Houston Partnership; Mr. Leonard Spearman, Jr., Harris Co. Judge Robert Eckels & Harris Co. Comm. Ct.; Mr. Bob Stout, Mitchell Energy and Development Corp.; The Chair recognized the following persons to testify against the bill: Mr. Steven H. Swander, Texas Entertainment Assn.; Rep. Yarbrough offered an amendment to HB 1711, and moved adoption of committee amendment #1. There was no objection. The Chair recognized Rep. Brady to close. HB 1711 was left pending in committee. There was no objection. HB 1711 was considered in a Formal Meeting on May 3, 1995. The Chair called up HB 1711 which was pending in committee. There was no objection. Rep. Kubiak offered a complete committee substitute, and moved adoption of CSHB 1711. There was no objection. Rep. Yarbrough moved that the full committee adopt HB 1711 as substituted, and that it be reported favorably to the full House with the recommendation that it do pass and be printed, and sent to the Local and Consent Calendar. The motion prevailed by the following vote: AYES: 7, NAYS: 0, ABSENT: 2.