74R11095 CAG-D
          By Brady, Bailey, Yarbrough, Rabuck, Yost,            H.B. No. 1711
             et al.
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the local regulation of a sexually oriented business
    1-3  and the sale, possession, and consumption of alcoholic beverages on
    1-4  the premises of a sexually oriented business; providing a penalty.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subchapter B, Chapter 11, Alcoholic Beverage
    1-7  Code, is amended by adding Section 11.375 to read as follows:
    1-8        Sec. 11.375.  APPLICATION FOR AND RENEWAL OF CERTAIN PERMITS
    1-9  FOR SEXUALLY ORIENTED BUSINESS.  (a)  An application for a permit
   1-10  or renewal of a permit for premises located in an unincorporated
   1-11  area of a county must contain a sworn statement by the applicant as
   1-12  to whether the establishment to be operated on the premises or part
   1-13  of the premises is a sexually oriented business licensed by the
   1-14  county.
   1-15        (b)  The county clerk of the county in which the premises are
   1-16  located shall certify whether the location or address given in the
   1-17  application is a location or address that has been licensed by the
   1-18  commissioners court under Section 243.0075, Local Government Code,
   1-19  to operate a sexually oriented business.
   1-20        (c)  A holder of a permit may not operate a sexually oriented
   1-21  business on the premises if:
   1-22              (1)  the holder fails to state in the application for
   1-23  the permit or renewal of the permit under which the premises are
   1-24  being operated that the holder is operating or intends to operate a
    2-1  sexually oriented business; and
    2-2              (2)  the premises are not licensed as a sexually
    2-3  oriented business by the county in which the premises are located.
    2-4        (d)  In this section, "sexually oriented business" has the
    2-5  meaning assigned by Section 243.002, Local Government Code.
    2-6        SECTION 2.  Section 11.38(d), Alcoholic Beverage Code, is
    2-7  amended to read as follows:
    2-8        (d)  The following are exempt from the fee authorized in this
    2-9  section:
   2-10              (1)  agent's, airline beverage, passenger train
   2-11  beverage, industrial, carrier's, private carrier's, private club
   2-12  registration, local cartage, storage, and temporary wine and beer
   2-13  retailer's permits;
   2-14              (2)  a wine and beer retailer's permit issued for a
   2-15  dining, buffet, or club car; and
   2-16              (3)  a mixed beverage permit during the three-year
   2-17  period following the issuance of the permit, unless the permit is
   2-18  issued for a premises or part of a premises that is a sexually
   2-19  oriented business.
   2-20        SECTION 3.  Section 11.39(a), Alcoholic Beverage Code, is
   2-21  amended to read as follows:
   2-22        (a)  Every applicant for a pharmacist's medicinal, brewer's,
   2-23  distiller's and rectifier's, mixed beverage, private club
   2-24  registration, winery, wholesaler's, class B wholesaler's, wine
   2-25  bottler's, or package store permit shall give notice of the
   2-26  application by publication at the applicant's <his> own expense in
   2-27  two consecutive issues of all daily newspapers of general
    3-1  circulation published in the city or town in which the applicant's
    3-2  place of business is located or all daily newspapers of general
    3-3  circulation published in the most populous city or town in the
    3-4  county if the applicant's place of business is located in an
    3-5  unincorporated area of a county.  If  no daily newspaper is
    3-6  published in the city or town, the notice shall be published in a
    3-7  newspaper of general circulation published in the city, <or> town,
    3-8  or county in which the applicant's <his> place of business is
    3-9  located.  <If no newspaper is published in the city or town, the
   3-10  notice shall be published in a newspaper of general circulation
   3-11  published in the county where the applicant's business is located.>
   3-12  If no newspaper is published in the county, the notice shall be
   3-13  published in a qualified newspaper published in the closest
   3-14  neighboring county and circulated in the county of the applicant's
   3-15  residence.
   3-16        SECTION 4.  Section 11.391, Alcoholic Beverage Code, is
   3-17  amended to read as follows:
   3-18        Sec. 11.391.  Notice by Sign.  (a)  Except as provided by
   3-19  Subsection (c), an <An> applicant for a mixed beverage permit or a
   3-20  private club registration permit for a location not previously
   3-21  licensed for the on-premises consumption of alcoholic beverages
   3-22  shall, beginning on the first date <dates> notice is required to be
   3-23  published under Section 11.39 of this code and for seven
   3-24  consecutive business days after that date, prominently post an
   3-25  outdoor sign at the location stating that alcoholic beverages are
   3-26  intended to be served on the premises, the proposed hours of
   3-27  operation of the premises, the type of permit, and the name and
    4-1  business address of the applicant.
    4-2        (b)  The sign shall be written in a manner and of a size the
    4-3  administrator considers adequate to be clearly visible from the
    4-4  street and to inform the general public of the intended use of the
    4-5  property.  The administrator may require the sign to be both in
    4-6  English and a language other than English if it is likely that a
    4-7  substantial number of the residents in the area speak a language
    4-8  other than English as their familiar language.  The commission
    4-9  shall provide such sign and may charge a fee therefor.
   4-10        (c)  If a sexually oriented business is to be operated on
   4-11  premises covered by a permit identified by Subsection (a), the
   4-12  applicant must also comply with the notice requirements of this
   4-13  section when applying for a renewal permit, except that the sign
   4-14  shall be posted beginning on the 30th day before the expiration
   4-15  date of the permit and for seven consecutive business days after
   4-16  that date.
   4-17        (d)  The commission shall deny an <An> application if the
   4-18  applicant fails <may not be denied for failing> to post the notice
   4-19  required by this section <if the commission or administrator
   4-20  determines that the general public in the area in which the
   4-21  premises to be licensed is located is adequately aware of the
   4-22  nature of the application>.
   4-23        (e)  In this section, "business day" excludes Saturday,
   4-24  Sunday, and a legal holiday.
   4-25        SECTION 5.  Subtitle A, Title 3, Alcoholic Beverage Code, is
   4-26  amended by adding Chapter 54 to read as follows:
   4-27                CHAPTER 54.  NUDITY EXHIBITOR'S PERMIT
    5-1        Sec. 54.001.  DEFINITIONS.  In this chapter:
    5-2              (1)  "Nude" has the meaning assigned by Section
    5-3  243.002, Local Government Code.
    5-4              (2)  "Public place" includes any area on the premises
    5-5  in which an employee or other person subject to control,
    5-6  supervision, direction, or discharge by the permit holder performs
    5-7  any portion of the person's work.
    5-8        Sec. 54.002.  AUTHORIZED ACTIVITY.  A holder of a nudity
    5-9  exhibitor's permit may allow a person to possess or consume on the
   5-10  premises an alcoholic beverage during the time that the holder of
   5-11  the permit allows an employee or other person subject to control,
   5-12  supervision, direction, or discharge by the permit holder to be
   5-13  nude at a public place on the premises covered by the permit.
   5-14        Sec. 54.003.  FEE.  The annual state fee for a nudity
   5-15  exhibitor's permit is $6,000.
   5-16        Sec. 54.004.  PERMIT REQUIRED; PENALTY.  (a)  A person
   5-17  commits an offense if the person engages in conduct authorized by
   5-18  Section 54.002 and does not hold a nudity exhibitor's permit.
   5-19        (b)  An offense under this section is a Class A misdemeanor.
   5-20        Sec. 54.005.  CONDUCT SURETY BOND.  (a)  An applicant for a
   5-21  nudity exhibitor's permit or a holder of a nudity exhibitor's
   5-22  permit issued under this chapter shall file with the commission a
   5-23  surety bond in the amount required by Subsection (e) conditioned on
   5-24  the applicant's or holder's conformance with the regulations of the
   5-25  commission and the laws of this state relating to a sexually
   5-26  oriented business, the sale and provision of alcoholic beverages,
   5-27  and the provisions of Chapter 43, Penal Code.
    6-1        (b)  A surety bond required under this section must contain
    6-2  the following statements on the face of the bond:
    6-3              (1)  that the holder of the permit or license will not
    6-4  violate a law of this state, a regulation of the commission, or a
    6-5  provision of Chapter 43, Penal Code, that relates to the ownership
    6-6  or operation of a premises or employment on a premises covered by a
    6-7  nudity exhibitor's permit; and
    6-8              (2)  that the holder of the permit or license agrees
    6-9  that the amount of the bond shall be paid to the state if the
   6-10  holder violates a law of this state, a regulation of the
   6-11  commission, or a provision of Chapter 43, Penal Code, that relates
   6-12  to the ownership or operation of a premises or employment on a
   6-13  premises covered by a nudity exhibitor's permit.
   6-14        (c)  The commission shall adopt rules relating to the:
   6-15              (1)  form of the surety bond;
   6-16              (2)  qualifications for a surety;
   6-17              (3)  method for filing and obtaining approval of the
   6-18  bond by the commission; and
   6-19              (4)  release or discharge of the bond.
   6-20        (d)  A holder of a nudity exhibitor's permit required to file
   6-21  a surety bond may furnish instead of all or part of the required
   6-22  bond amount:
   6-23              (1)  one or more certificates of deposit assigned to
   6-24  the state issued by a federally insured bank or savings institution
   6-25  authorized to do business in this state; or
   6-26              (2)  one or more letters of credit issued by a
   6-27  federally insured bank or savings institution authorized to do
    7-1  business in this state.
    7-2        (e)  The surety bond issued under this section shall be in
    7-3  the amount of $25,000.
    7-4        SECTION 6.  Subchapter B, Chapter 61, Alcoholic Beverage
    7-5  Code, is amended by adding Section 61.375 to read as follows:
    7-6        Sec. 61.375.  APPLICATION FOR AND RENEWAL OF CERTAIN LICENSES
    7-7  FOR SEXUALLY ORIENTED BUSINESS.  (a)  An application for a license
    7-8  or renewal of a license for premises located in an unincorporated
    7-9  area of a county must contain a sworn statement by the applicant as
   7-10  to whether the establishment to be operated on the premises or part
   7-11  of the premises is a sexually oriented business licensed by the
   7-12  county.
   7-13        (b)  The county clerk of the county in which the premises are
   7-14  located shall certify whether the location or address given in the
   7-15  application is a location or address that has been licensed by the
   7-16  commissioners court under Section 243.0075, Local Government Code,
   7-17  to operate a sexually oriented business.
   7-18        (c)  A holder of a license may not operate a sexually
   7-19  oriented business on the premises if:
   7-20              (1)  the holder fails to state in the application for
   7-21  the license or renewal of the license under which the premises are
   7-22  being operated that the holder is operating or intends to operate a
   7-23  sexually oriented business; and
   7-24              (2)  the premises are not licensed as a sexually
   7-25  oriented business by the county in which the premises are located.
   7-26        (d)  In this section, "sexually oriented business" has the
   7-27  meaning assigned by Section 243.002, Local Government Code.
    8-1        SECTION 7.  Section 61.38(c), Alcoholic Beverage Code, is
    8-2  amended to read as follows:
    8-3        (c)  When an original application to sell beer at retail at a
    8-4  location not previously licensed is filed, the county clerk shall
    8-5  publish notice for two consecutive issues in all daily newspapers
    8-6  of general circulation published in the city or town in which the
    8-7  applicant's place of business is to be located or all daily
    8-8  newspapers of general circulation published in the most populous
    8-9  city or town in the county if the applicant's place of business is
   8-10  located in an unincorporated area of a county.  If no daily
   8-11  newspaper of general circulation is published in the city or town,
   8-12  the notice shall be published in a newspaper of general circulation
   8-13  published in the city, <or> town, or county in which the
   8-14  applicant's place of business is to be located.  <If no newspaper
   8-15  of general circulation is published in that city or town, the
   8-16  notice shall be published in a newspaper of general circulation in
   8-17  the county where the applicant's business is to be located.>  If no
   8-18  newspaper of general circulation is published in that county, the
   8-19  notice shall be published in a newspaper which is published in the
   8-20  closest neighboring county and is circulated in the county where
   8-21  the license is sought.  The notice shall be in 10-point boldface
   8-22  type and shall set forth the type of license applied for; the exact
   8-23  location of the business; the name of the owner or owners; the
   8-24  trade name, if operating under an assumed name; and in the case of
   8-25  a corporate applicant, the names and titles of all officers of the
   8-26  corporation.  At the time the application is filed, the applicant
   8-27  shall deposit with the clerk the cost of publishing notice, which
    9-1  the clerk shall use to pay for the publication.
    9-2        SECTION 8.  Section 61.381, Alcoholic Beverage Code, is
    9-3  amended to read as follows:
    9-4        Sec. 61.381.  Notice by Sign.  (a)  Except as provided by
    9-5  Subsection (c), an <An> applicant for a wine and beer retailer's
    9-6  permit or a retail dealer's on-premise license for a location not
    9-7  previously licensed for the on-premises consumption of alcoholic
    9-8  beverages shall, beginning on the first date <dates> notice is
    9-9  required to be published under Section 61.38 of this code and for
   9-10  seven consecutive business days after that date, prominently post
   9-11  an outdoor sign at the location stating that alcoholic beverages
   9-12  are intended to be served on the premises, the proposed hours of
   9-13  operation of the premises, the type of license, and the name and
   9-14  business address of the applicant.
   9-15        (b)  The sign shall be written in a manner and of a size the
   9-16  administrator considers adequate to be clearly visible from the
   9-17  street and to inform the general public of the intended use of the
   9-18  property.  The administrator may require the sign to be both in
   9-19  English and a language other than English if it is likely that a
   9-20  substantial number of the residents in the area speak a language
   9-21  other than English as their familiar language.  The commission
   9-22  shall provide such sign and may charge a fee therefor.
   9-23        (c)  If a sexually oriented business is to be operated on
   9-24  premises covered by a permit or license identified by Subsection
   9-25  (a), the applicant must also comply with the notice requirements of
   9-26  this section when applying for a renewal permit or license, except
   9-27  that the sign shall be posted beginning on the 30th day before the
   10-1  expiration date of the permit and for seven consecutive business
   10-2  days after that date.
   10-3        (d)  The commission shall deny an <An> application if the
   10-4  applicant fails <may not be denied for failing> to post the notice
   10-5  required by this section <if the commission or administrator
   10-6  determines that the general public in the area in which the
   10-7  premises to be licensed is located is adequately aware of the
   10-8  nature of the application>.
   10-9        (e)  In this section, "business day" excludes Saturday,
  10-10  Sunday, and a legal holiday.
  10-11        SECTION 9.  Section 243.002, Local Government Code, is
  10-12  amended to read as follows:
  10-13        Sec. 243.002.  DEFINITIONS <DEFINITION>.  In this chapter:<,>
  10-14              (1)  "Nude" means:
  10-15                    (A)  entirely unclothed; or
  10-16                    (B)  clothed in a manner that leaves uncovered or
  10-17  visible through less than fully opaque clothing any portion of the
  10-18  breasts below the top of the areola of the breasts, if the person
  10-19  is female, or any portion of the genitals or buttocks.
  10-20              (2)  "Sexually <"sexually> oriented business" means:
  10-21                    (A)  a sex parlor, nude studio, modeling studio,
  10-22  love parlor, adult bookstore, adult movie theater, adult video
  10-23  arcade, adult movie arcade, adult video store, adult motel, or
  10-24  other commercial enterprise the primary business of which is the
  10-25  offering of a service or the selling, renting, or exhibiting of
  10-26  devices or any other items intended to provide sexual stimulation
  10-27  or sexual gratification to the customer; or
   11-1                    (B)  any place of business permitting,
   11-2  requesting, or requiring a person to work nude.
   11-3        SECTION 10.  Section 243.007, Local Government Code, is
   11-4  amended to read as follows:
   11-5        Sec. 243.007.  LICENSES OR PERMITS ISSUED BY MUNICIPALITY.
   11-6  (a)  A municipality <or county> may require that an owner or
   11-7  operator of a sexually oriented business obtain a license or other
   11-8  permit or renew a license or other permit on a periodic basis for
   11-9  the operation of a sexually oriented business.  An application for
  11-10  a license or other permit must be made in accordance with the
  11-11  regulations adopted by the municipality <or county>.
  11-12        (b)  The municipal <or county> regulations adopted under this
  11-13  chapter may provide for the denial, suspension, or revocation of a
  11-14  license or other permit by the municipality <or county>.
  11-15        (c)  A district court has jurisdiction of a suit that arises
  11-16  from the denial, suspension, or revocation of a license or other
  11-17  permit by a municipality <or county>.
  11-18        SECTION 11.  Chapter 243, Local Government Code, is amended
  11-19  by adding Section 243.0075 to read as follows:
  11-20        Sec. 243.0075.  LICENSES OR PERMITS ISSUED BY COUNTY.  (a)  A
  11-21  county shall require the owner or operator of a sexually oriented
  11-22  business to obtain a license or other permit or renew a license or
  11-23  other permit on a periodic basis for the operation of a sexually
  11-24  oriented business.
  11-25        (b)  An application for a license or other permit must be
  11-26  made in accordance with the regulations adopted by the county.
  11-27        (c)  An applicant for a license or other permit shall publish
   12-1  notice of the applicant's intent to apply for a license or other
   12-2  permit in the same manner as an applicant for an alcoholic beverage
   12-3  license or other permit under Sections 11.39(a) and (b) and
   12-4  11.391(a) and (b), Alcoholic Beverage Code.  The notice shall also
   12-5  contain the time and place of the public hearing held under
   12-6  Subsection (d).
   12-7        (d)  The commissioners court of the county may grant a
   12-8  license or other permit only after conducting a public hearing on
   12-9  the issuance or renewal of the license or other permit.
  12-10        (e)  The county regulations adopted under this section shall
  12-11  provide for the denial, suspension, or revocation of a license or
  12-12  other permit by the county.
  12-13        (f)  A district court has jurisdiction of a suit that arises
  12-14  from the denial, suspension, or revocation of a license or other
  12-15  permit by a county.
  12-16        SECTION 12.  This Act takes effect September 1, 1995, and
  12-17  applies only to an application for an alcoholic beverage or
  12-18  sexually oriented business permit or license or a renewal of an
  12-19  alcoholic beverage or sexually oriented business permit or license
  12-20  filed on or after the effective date of this Act.  An application
  12-21  for an alcoholic beverage or sexually oriented business permit or
  12-22  license or a renewal of an alcoholic beverage or sexually oriented
  12-23  business permit or license filed before the effective date of this
  12-24  Act is governed by the law as it existed immediately before the
  12-25  effective date of this Act, and that law is continued in effect for
  12-26  that purpose.
  12-27        SECTION 13.  The importance of this legislation and the
   13-1  crowded condition of the calendars in both houses create an
   13-2  emergency and an imperative public necessity that the
   13-3  constitutional rule requiring bills to be read on three several
   13-4  days in each house be suspended, and this rule is hereby suspended.