By Nixon                                         H.B. No. 281

      75R2276 BEM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale, consumption, and possession of alcoholic

 1-3     beverages at sexually oriented businesses.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter D, Chapter 109, Alcoholic Beverage

 1-6     Code, is amended by adding Section 109.571 to read as follows:

 1-7           Sec. 109.571.  ALCOHOL PROHIBITED AT SEXUALLY ORIENTED

 1-8     BUSINESS.  Notwithstanding any law to the contrary, a sexually

 1-9     oriented business, as defined by Section 243.002, Local Government

1-10     Code, may not sell or allow the consumption or possession of

1-11     alcoholic beverages on its premises.

1-12           SECTION 2.  Section 11.43, Alcoholic Beverage Code, is

1-13     amended to read as follows:

1-14           Sec. 11.43.  DISCRETION TO GRANT OR REFUSE PERMIT.

1-15     [(a)]  The commission and administrator have discretionary

1-16     authority to grant or refuse to issue an original or renewal permit

1-17     under the provisions of this subchapter or any other applicable

1-18     provision of this code.

1-19           [(b)  Notwithstanding any other provision of this code that

1-20     authorizes the commission or administrator to refuse to issue a

1-21     permit without a hearing, the commission or administrator shall

1-22     hold a hearing before granting or refusing to issue an original

1-23     mixed beverage permit, private club registration permit, wine and

1-24     beer retailer's permit, or retail dealer's on-premise license if a

 2-1     sexually oriented business is to be operated on the premises to be

 2-2     covered by the permit or license.]

 2-3           [(c)  A hearing shall be held on any renewal application of a

 2-4     mixed beverage permit, private club registration permit, wine and

 2-5     beer retailer's permit, or retail dealer's on-premise license if a

 2-6     sexually oriented business is to be operated on the premises to be

 2-7     covered by the permit or license and a petition is presented to the

 2-8     commission requesting a hearing which is signed by 50 percent of

 2-9     the residents who reside within 300 feet of any property line of

2-10     the affected premises.]

2-11           [(d)  A request for a hearing made under Subsection (b) or

2-12     (c) of this section must include an allegation of grounds on which

2-13     the original or renewal application, as applicable, should be

2-14     denied.]

2-15           SECTION 3.  Section 243.005, Local Government Code, is

2-16     amended to read as follows:

2-17           Sec. 243.005.  [BUSINESS LICENSED UNDER ALCOHOLIC BEVERAGE

2-18     CODE:] BUSINESS HAVING COIN-OPERATED MACHINES.  (a)  A business is

2-19     not exempt from regulation under this chapter [because it holds a

2-20     license or permit under the Alcoholic Beverage Code authorizing the

2-21     sale or service of alcoholic beverages or] because it contains one

2-22     or more coin-operated machines that are subject to regulation or

2-23     taxation, or both, under Chapter 8, Title 132, Revised Statutes.

2-24           (b)  A regulation adopted under this chapter may not

2-25     discriminate against a business on the basis of whether [the

2-26     business holds a license or permit under the Alcoholic Beverage

2-27     Code or on the basis of whether] it contains one or more

 3-1     coin-operated machines that are subject to regulation or taxation,

 3-2     or both, under Chapter 8, Title 132, Revised Statutes.

 3-3           [(c)  This chapter does not affect the existing preemption by

 3-4     the state of the regulation of alcoholic beverages and the

 3-5     alcoholic beverage industry as provided by Section 1.06, Alcoholic

 3-6     Beverage Code.]

 3-7           SECTION 4.  This Act takes effect September 1, 1997.

 3-8           SECTION 5.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended.