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."