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.