NDT C.S.H.B. 2647 75(R)BILL ANALYSIS LICENSING & ADMINISTRATIVE PROCEDURES C.S.H.B. 2647 By: Hamric 4-28-97 Committee Report (Substituted) BACKGROUND Under current law it is often very difficult for a member of the public to receive a hearing on the application of a sexually oriented business for a permit or license to sell alcohol. Section 11.43 of the Alcoholic Beverage Code states that a hearing shall be held before the commission grants or refuses to issue an original mixed beverage permit, private club registration, wine and beer retailer's permit, or retail dealer's on-premise license if a sexually oriented business is to be operated on the premises to be covered by the permit or license. In addition, a hearing shall be held on any renewal of the permits and licenses listed previously if the commission is presented with a petition which is signed by 50 percent of the residents who reside within 300 feet of any property line of the affected premises. In the case of both an original permit or license and a renewal permit or license, the request for a hearing must include an allegation of the grounds on which the application should be denied. As currently applied, this law seldom actually gives members of the public the opportunity to receive a hearing on an application. In many, if not most, cases the Texas Alcoholic Beverage Commission rejects a request for a hearing because the allegations of the grounds on which the application should be denied are deemed to be "insufficient" or "not set out specifically enough." In addition, citizens are often excluded from participating when hearings are held because witness exclusion rules are invoked. PURPOSE This bill provides that a hearing must be held on an application filed by a sexually oriented business for an alcohol permit or license when requested by certain individuals. The bill also removes the requirement that a hearing requested under this section include an allegation of grounds on which the original or renewal application should be denied. The bill further stipulates that a member of the public scheduled to speak at a hearing under this section may not be excluded from the hearing to prevent the individual from hearing the comments or testimony of another person scheduled to speak at the hearing. 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 Sections 11.43 (b), (c) and (d), Alcoholic Beverage Code, as follows: (b) Removes portions of current subsections (b) and (c) and combines the remaining portions, with some additions, to form a new subsection (b). The new subsection requires that the commission or administrator hold a hearing on any original or renewal application of a mixed beverage permit, private club registration permit, wine and beer retailer's permit, or retail dealer's on-premise license if a sexually oriented business is to be operated on the premises to be covered by the permit or license upon the request of a local official, state representative, or state senator who represents the area where the business is to be operated or when a petition is presented to the commission requesting a hearing which is signed by at least 100 residents who reside within one-half mile of any property line of the affected premises, or, if fewer than 200 people reside within that area, signed by at least 50 percent of those residents. (c) Reletters and amends old subsection (d). Removes the requirement that a request for a hearing must include an allegation of grounds on which the original or renewal application should be denied. States that a member of the public scheduled to speak at a hearing under this section may not be excluded from the hearing to prevent the person from hearing the comments or testimony of another person scheduled to speak at the hearing. (d) Defines "local official." SECTION 2. Effective date. The change in law made by this Act applies only to an original or renewal application submitted on or after the effective date of this Act. An original or renewal application submitted before the effective date of this Act is governed by the law in effect when the application was submitted, and the former law is continued in effect for that purpose. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The committee substitute to HB 2647 amends Section 11.43(b) of the Alcoholic Beverage Code by combining subsection (b) with a portion of the language currently contained in subsection (c) of HB 2647. By combining the language in the two subsections, as well as removing certain other language, redundancy is eliminated in the substitute. In that portion of the substitute that addresses the persons who may request a hearing, the committee substitute removes the phrase "elected official" and replaces it with "local official, state representative, or state senator" (subsection (b)(1)). "Local official" is then defined to include "the mayor, chief of police, marshal, or attorney for the municipality or the county judge, sheriff, or county or district attorney or a county commissioner or constable, of the county in which the premises sought to be licensed is located."