75R8370 CAG-D
By Nixon, et al. H.B. No. 281
Substitute the following for H.B. No. 281:
By Yarbrough C.S.H.B. No. 281
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the sale, service, delivery, distribution, consumption,
1-3 or possession of alcoholic beverages at sexually oriented
1-4 businesses; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter D, Chapter 109, Alcoholic Beverage
1-7 Code, is amended by adding Section 109.571 to read as follows:
1-8 Sec. 109.571. ALCOHOL PROHIBITED AT CERTAIN SEXUALLY
1-9 ORIENTED BUSINESSES; EFFECT ON EXISTING OPERATIONS. (a)
1-10 Notwithstanding any law to the contrary, a sexually oriented
1-11 business, as defined by Section 243.002, Local Government Code, may
1-12 not sell or allow the service, delivery, distribution, consumption,
1-13 or possession of alcoholic beverages on its premises.
1-14 (b) If at the time an original alcoholic beverage permit or
1-15 license was granted for a premises a sexually oriented business was
1-16 lawfully operated on the premises, the provisions of Subsection (a)
1-17 do not apply to the holder of the permit or license and do not
1-18 affect the ability of the holder to renew the permit or license.
1-19 The exemption from the provisions of Subsection (a) expires if the
1-20 holder sells or transfers the premises or the business on the
1-21 premises in a manner that requires the issuance of a new original
1-22 permit or license.
1-23 SECTION 2. Section 11.43, Alcoholic Beverage Code, is
1-24 amended to read as follows:
2-1 Sec. 11.43. DISCRETION TO GRANT OR REFUSE PERMIT.
2-2 [(a)] The commission and administrator have discretionary
2-3 authority to grant or refuse to issue an original or renewal permit
2-4 under the provisions of this subchapter or any other applicable
2-5 provision of this code.
2-6 [(b) Notwithstanding any other provision of this code that
2-7 authorizes the commission or administrator to refuse to issue a
2-8 permit without a hearing, the commission or administrator shall
2-9 hold a hearing before granting or refusing to issue an original
2-10 mixed beverage permit, private club registration permit, wine and
2-11 beer retailer's permit, or retail dealer's on-premise license if a
2-12 sexually oriented business is to be operated on the premises to be
2-13 covered by the permit or license.]
2-14 [(c) A hearing shall be held on any renewal application of a
2-15 mixed beverage permit, private club registration permit, wine and
2-16 beer retailer's permit, or retail dealer's on-premise license if a
2-17 sexually oriented business is to be operated on the premises to be
2-18 covered by the permit or license and a petition is presented to the
2-19 commission requesting a hearing which is signed by 50 percent of
2-20 the residents who reside within 300 feet of any property line of
2-21 the affected premises.]
2-22 [(d) A request for a hearing made under Subsection (b) or
2-23 (c) of this section must include an allegation of grounds on which
2-24 the original or renewal application, as applicable, should be
2-25 denied.]
2-26 SECTION 3. Chapter 243, Local Government Code, is amended by
2-27 adding Section 243.012 to read as follows:
3-1 Sec. 243.012. BAN ON ALCOHOLIC BEVERAGES. (a) A person
3-2 commits an offense if the person sells, serves, delivers,
3-3 distributes, consumes, or possesses an alcoholic beverage on the
3-4 premises of a sexually oriented business or knowingly allows a
3-5 person to sell, serve, deliver, distribute, consume, or possess an
3-6 alcoholic beverage on the premises of a sexually oriented business.
3-7 An offense under this subsection is a Class A misdemeanor.
3-8 (b) Except as provided by Subsection (c), a municipality or
3-9 county may not adopt a regulation under this chapter that allows
3-10 alcoholic beverages to be sold, served, delivered, distributed,
3-11 consumed, or possessed on the premises of a sexually oriented
3-12 business.
3-13 (c) If at the time an original alcoholic beverage permit or
3-14 license was granted for a premises a sexually oriented business was
3-15 lawfully operated on the premises, the provisions of Subsection (a)
3-16 do not apply to the holder of the permit or license and do not
3-17 affect the ability of the holder to operate a sexually oriented
3-18 business under this section. The exemption from the provisions of
3-19 Subsection (a) expires if the holder sells or transfers the
3-20 premises or the business on the premises in a manner that requires
3-21 the issuance of a new original permit or license.
3-22 (d) In this section, "alcoholic beverage" has the meaning
3-23 assigned by Section 1.04, Alcoholic Beverage Code.
3-24 SECTION 4. Section 243.005, Local Government Code, is
3-25 amended to read as follows:
3-26 Sec. 243.005. [BUSINESS LICENSED UNDER ALCOHOLIC BEVERAGE
3-27 CODE:] BUSINESS HAVING COIN-OPERATED MACHINES. (a) A business is
4-1 not exempt from regulation under this chapter because it [holds a
4-2 license or permit under the Alcoholic Beverage Code authorizing the
4-3 sale or service of alcoholic beverages or because it] contains one
4-4 or more coin-operated machines that are subject to regulation or
4-5 taxation, or both, under Chapter 8, Title 132, Revised Statutes.
4-6 (b) A regulation adopted under this chapter may not
4-7 discriminate against a business on the basis of whether the
4-8 business [holds a license or permit under the Alcoholic Beverage
4-9 Code or on the basis of whether it] contains one or more
4-10 coin-operated machines that are subject to regulation or taxation,
4-11 or both, under Chapter 8, Title 132, Revised Statutes.
4-12 [(c) This chapter does not affect the existing preemption by
4-13 the state of the regulation of alcoholic beverages and the
4-14 alcoholic beverage industry as provided by Section 1.06, Alcoholic
4-15 Beverage Code.]
4-16 SECTION 5. (a) This Act takes effect January 1, 1998.
4-17 (b) The change in law made by this Act applies only to an
4-18 offense committed on or after the effective date of this Act. For
4-19 the purposes of this section, an offense is committed before the
4-20 effective date of this Act if any element of the offense occurs
4-21 before that date.
4-22 (c) An offense committed before the effective date of this
4-23 Act is covered by the law in effect when the offense was committed,
4-24 and the former law is continued in effect for that purpose.
4-25 (d) The change in law made by this Act applies to any holder
4-26 of a license or permit under the Alcoholic Beverage Code, including
4-27 a holder of a food and beverage certificate.
5-1 SECTION 6. The importance of this legislation and the
5-2 crowded condition of the calendars in both houses create an
5-3 emergency and an imperative public necessity that the
5-4 constitutional rule requiring bills to be read on three several
5-5 days in each house be suspended, and this rule is hereby suspended.