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.