74(R) HB 1711 House Committee Report

                          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.