NDT C.S.H.B. 281 75(R)BILL ANALYSIS LICENSING & ADMINISTRATIVE PROCEDURES C.S.H.B. 281 By: Nixon 4-17-97 Committee Report (Substituted) BACKGROUND The authority granted through the Alcoholic Beverage Code does not provide law enforcement agencies with the power they need to properly regulate sexually oriented businesses. Under current law, if an establishment sells or serves alcoholic beverages, nude dancing is not allowed. So, sexually oriented businesses have gotten around the law by not selling alcohol, but by selling set ups and increasing the cover charges or entrance fees and allowing patrons to bring their own alcohol. Then, the business allows totally nude dancing. Likewise, chapter 243 of the Local Government Code authorizes municipal and county authorities to regulate sexually oriented businesses. However, the authority granted to the local governments does not provide them with the power they need to properly regulate these businesses. These businesses have proliferated, often having a deleterious effect on the health and safety of the community as a whole, leading to lowered property values and high crime. Law enforcement has had a difficult time trying to regulate them. PURPOSE It is the purpose of this bill is to provide local law enforcement agencies and local government a means to remedy the problems associated with sexually oriented businesses, without outlawing their existence. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D, Chapter 109, Alcoholic Beverage Code, by adding Section 109.571, prohibiting alcohol at sexually oriented businesses. Grandfathers existing sexually oriented businesses. SECTION 2. Amends Section 11.43, Alcoholic Beverage Code, by striking Subsections (b), (c) and (d). SECTION 3. Amends Chapter 243, Local Government Code, by adding Section 243.012 which clarifies that a person commits a Class A misdemeanor if a person sells, serves, delivers, distributes, consumes or possesses an alcoholic beverage on the premises of a sexually oriented business, a municipality may not adopt a regulation that allows alcoholic beverages at sexually oriented businesses, grandfathers existing businesses, and defines "alcoholic beverage". SECTION 4. Amends section 243.005, Local Government Code, to conform with the ban of alcoholic beverages on the premises of a sexually oriented business. SECTION 5. This Act takes effect January 1, 1998, and is prospective. SECTION 6. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute grandfathers existing sexually oriented businesses from the ban on alcoholic beverages and clarifies the penalty.