By Nixon                                              H.B. No. 1864
       74R6860 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to licensing or permitting of an owner, operator, or
    1-3  employee of a sexually oriented business.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 243.002, Local Government Code, is
    1-6  amended to read as follows:
    1-7        Sec. 243.002.  DEFINITIONS <DEFINITION>. In this chapter:<,>
    1-8              (1)  "Employee" means a person who, on the premises of
    1-9  a sexually oriented business, is nude or is performing any part of
   1-10  the person's employment relating to the operation of a sexually
   1-11  oriented business.  The term includes a cashier, waiter, bartender,
   1-12  host, performer, security guard, and food service employee, and
   1-13  also includes an independent contractor, leased staff member, or
   1-14  other person not directly employed by the owner or operator of a
   1-15  sexually oriented business.  The term does not include a person
   1-16  who:
   1-17                    (A)  does not have a full-time or part-time job
   1-18  that requires the person's regular presence on the premises of a
   1-19  sexually oriented business; and
   1-20                    (B)  does not appear nude on the premises.
   1-21              (2)  "Nude" means:
   1-22                    (A)  entirely unclothed; or
   1-23                    (B)  clothed in a manner that leaves uncovered or
   1-24  visible through less than fully opaque clothing any portion of the
    2-1  breasts below the top of the areola of the breasts, if the person
    2-2  is female, or any portion of the genitals or buttocks.
    2-3              (3)  "Operator" means a person, other than the owner,
    2-4  who provides operational or managerial services for the operation
    2-5  of a sexually oriented business.
    2-6              (4)  "Owner" means a person who has a proprietary right
    2-7  or claim allowing the person either to vote with respect to matters
    2-8  of organizational governance or to participate in the profits or
    2-9  residual assets of a sexually oriented business.
   2-10              (5)  "Sexually <sexually> oriented business" means:
   2-11                    (A)  a sex parlor, nude studio, modeling studio,
   2-12  love parlor, adult bookstore, adult movie theater, adult video
   2-13  arcade, adult movie arcade, adult video store, adult motel, or
   2-14  other commercial enterprise the primary business of which is the
   2-15  offering of a service or the selling, renting, or exhibiting of
   2-16  devices or any other items intended to provide sexual stimulation
   2-17  or sexual gratification to the customer; or
   2-18                    (B)  any place of business permitting,
   2-19  requesting, or requiring a person to work nude.
   2-20        SECTION 2.  Section 243.006, Local Government Code, is
   2-21  amended by adding Subsection (c) to read as follows:
   2-22        (c)  If a municipality or county chooses to restrict or
   2-23  prohibit the location or density of sexually oriented businesses,
   2-24  the restriction or prohibition may not allow a sexually oriented
   2-25  business to operate within 3,000 feet of a school, church or other
   2-26  place of worship, hospital, day-care facility, adult-care facility,
   2-27  park, playground, playing fields or other recreational facility
    3-1  used by children, or another sexually oriented business.
    3-2        SECTION 3.  Sections 243.007(a) and (b), Local Government
    3-3  Code, are amended to read as follows:
    3-4        (a)  A municipality or county in which a sexually oriented
    3-5  business is located shall <may> require that a person who is an
    3-6  owner, <or> operator, or employee of a sexually oriented business
    3-7  obtain a license or other permit or renew a license or other permit
    3-8  on a periodic basis for the operation of or employment by a
    3-9  sexually oriented business.  The requirements for a license or
   3-10  other permit shall include the licensing, disclosure, and testing
   3-11  requirements of Section 243.0071.  Additionally, an <An>
   3-12  application for a license or other permit must be made in
   3-13  accordance with any other regulation <the regulations> adopted by
   3-14  the municipality or county.
   3-15        (b)  The municipal or county regulations adopted under this
   3-16  chapter shall <may> provide for the denial, suspension, or
   3-17  revocation of a license or other permit by the municipality or
   3-18  county.
   3-19        SECTION 4.  Chapter 243, Local Government Code, is amended by
   3-20  adding Sections 243.0071 and 243.0072 to read as follows:
   3-21        Sec. 243.0071.  MINIMUM REQUIREMENTS FOR LICENSING.  (a)  A
   3-22  person applying for a license or permit or a renewal of a license
   3-23  or permit issued under Section 243.007 shall:
   3-24              (1)  apply in person;
   3-25              (2)  present  a certified copy of the applicant's birth
   3-26  certificate or other documentary evidence of age considered
   3-27  satisfactory by the municipality or county;
    4-1              (3)  be fingerprinted and photographed by a person
    4-2  designated by the municipality or county;
    4-3              (4)  be subjected to a criminal history record
    4-4  information search under Section 411.128, Government Code;
    4-5              (5)  pass an examination prepared by the municipality
    4-6  or county on regulations relating to sexually oriented businesses
    4-7  and the provisions of Chapter 43, Penal Code;
    4-8              (6)  publish notice of the intent to apply for a
    4-9  license or renew a license in the same manner required for certain
   4-10  permits by Sections 11.39(a) and (b), Alcoholic Beverage Code;
   4-11              (7)  post a conduct surety bond that meets the
   4-12  requirements of Section 243.0072;
   4-13              (8)  pay a nonrefundable application fee; and
   4-14              (9)  be 21 years of age or older.
   4-15        (b)  A person applying for an owner's permit or license
   4-16  issued under this section must disclose the name, address, and
   4-17  telephone number of all shareholders, partners, or other persons
   4-18  having an ownership interest in the business.
   4-19        (c)  If any person disclosed under Subsection (b) is an
   4-20  entity that is not a natural person, the person applying for an
   4-21  owner's permit shall identify the natural persons:
   4-22              (1)  who own or control ownership or control interests
   4-23  in the entity; or
   4-24              (2)  who have the 200 largest ownership or control
   4-25  interests in the entity.
   4-26        (d)  An owner's permit may only be issued if the notice of
   4-27  intent to apply for or renew a license includes the names of all
    5-1  the natural persons required to be disclosed under Subsections (b)
    5-2  and (c).
    5-3        Sec. 243.0072.  CONDUCT SURETY BOND.  (a)  An applicant for a
    5-4  permit or license or a holder of a permit or license issued under
    5-5  Section 243.007 shall file with the county or municipality a surety
    5-6  bond in the amount required by Subsection (e) conditioned on the
    5-7  applicant's or holder's conformance with the regulations of the
    5-8  municipality or county and the laws of this state relating to a
    5-9  sexually oriented business and the provisions of Chapter 43, Penal
   5-10  Code.
   5-11        (b)  A surety bond required under this section must contain
   5-12  the following statements on the face of the bond:
   5-13              (1)  that the holder of the permit or license will not
   5-14  violate a law of this state, a regulation of the municipality or
   5-15  county adopted under this chapter, or a provision of Chapter 43,
   5-16  Penal Code, that relates to the ownership or operation of a
   5-17  sexually oriented business or employment on the premises of a
   5-18  sexually oriented business; and
   5-19              (2)  that the holder of the permit or license agrees
   5-20  that the amount of the bond shall be paid to the state if the
   5-21  holder violates a law of this state, a regulation of the
   5-22  municipality or county adopted under this chapter, or a provision
   5-23  of Chapter 43, Penal Code, that relates to the ownership or
   5-24  operation of a sexually oriented business or employment on the
   5-25  premises of a sexually oriented business.
   5-26        (c)  The municipality or county shall adopt rules relating to
   5-27  the:
    6-1              (1)  form of the surety bond;
    6-2              (2)  qualifications for a surety;
    6-3              (3)  method for filing and obtaining approval of the
    6-4  bond by the municipality or county; and
    6-5              (4)  release or discharge of the bond.
    6-6        (d)  A holder of a permit or license required to file a
    6-7  surety bond may furnish instead of all or part of the required bond
    6-8  amount:
    6-9              (1)  one or more certificates of deposit assigned to
   6-10  the state issued by a federally insured bank or savings institution
   6-11  authorized to do business in this state; or
   6-12              (2)  one or more letters of credit issued by a
   6-13  federally insured bank or savings institution authorized to do
   6-14  business in this state.
   6-15        (e)  The surety bond issued under this section shall be in
   6-16  the following amounts:
   6-17              (1)  $50,000 for the holder of an owner's license;
   6-18              (2)  $10,000 for the holder of an operator's license;
   6-19  and
   6-20              (3)  $1,000 for the holder of an employee's license.
   6-21        SECTION 5.  Section 243.009, Local Government Code, is
   6-22  amended to read as follows:
   6-23        Sec. 243.009.  FEES.  A municipality or county shall <may>
   6-24  impose fees on applicants for a license or other permit issued
   6-25  under this chapter or for the renewal of the license or other
   6-26  permit.  The fees shall be in an amount to recover the cost of
   6-27  administering the regulations adopted under this chapter <must be
    7-1  based on the cost of processing the applications and investigating
    7-2  the applicants>.
    7-3        SECTION 6.  Chapter 243, Local Government Code, is amended by
    7-4  adding Section 243.0095 to read as follows:
    7-5        Sec. 243.0095.  PROHIBITED CONDUCT.  (a)  A municipality or
    7-6  county adopting regulations regarding sexually oriented businesses
    7-7  shall prohibit the conduct described by Subsections (b) and (c).
    7-8        (b)  An employee of a sexually oriented business who is nude
    7-9  may not touch another person or the clothing of another person.
   7-10        (c)  A person on the premises of a sexually oriented business
   7-11  may not touch an employee of a sexually oriented business who is
   7-12  nude or the clothing of the employee.
   7-13        SECTION 7.  Subchapter F, Chapter 411, Government Code, is
   7-14  amended by adding Section 411.128 to read as follows:
   7-15        Sec. 411.128.  ACCESS TO CRIMINAL HISTORY RECORD INFORMATION:
   7-16  APPLICANTS FOR SEXUALLY ORIENTED BUSINESS LICENSE OR PERMIT.  A
   7-17  county or municipality that adopts a regulation under Section
   7-18  243.007, Local Government Code, that licenses or permits owners,
   7-19  operators, or employees of sexually oriented businesses is entitled
   7-20  to obtain from the department criminal history record information
   7-21  maintained by the department that relates to a person who is an
   7-22  applicant for a license or permit or is seeking renewal of a
   7-23  license or permit.
   7-24        SECTION 8.  This Act takes effect September 1, 1995.
   7-25        SECTION 9.  The importance of this legislation and the
   7-26  crowded condition of the calendars in both houses create an
   7-27  emergency and an imperative public necessity that the
    8-1  constitutional rule requiring bills to be read on three several
    8-2  days in each house be suspended, and this rule is hereby suspended.