Amend CSHB 3555 by adding the following appropriately
numbered SECTIONS and renumbering the remaining SECTIONS of the
bill accordingly:
      SECTION __.  Chapter 243, Local Government Code, is amended
by adding Section 243.012 to read as follows:
      Sec. 243.012.  BAN ON ALCOHOLIC BEVERAGES.  (a)  In this
section, "alcoholic beverage" has the meaning assigned by Section
1.04, Alcoholic Beverage Code.
      (b)  A person commits an offense if the person sells, serves,
delivers, distributes, or consumes an alcoholic beverage on the
premises of a sexually oriented business or knowingly allows a
person to sell, serve, deliver, distribute, or consume an alcoholic
beverage on the premises of a sexually oriented business. An
offense under this subsection is a Class A misdemeanor.
      (c)  A municipality or county may not adopt a regulation
under this chapter that allows alcoholic beverages to be sold,
served, delivered, distributed, or consumed on the premises of a
sexually oriented business.
      SECTION __.  Section 243.005, Local Government Code, is
amended to read as follows:
      Sec. 243.005.  <BUSINESS LICENSED UNDER ALCOHOLIC BEVERAGE
CODE:>  BUSINESS HAVING COIN-OPERATED MACHINES.  (a) A business is
not exempt from regulation under this chapter because it <holds a
license or permit under the Alcoholic Beverage Code authorizing the
sale or service of alcoholic beverages or because it> contains one
or more coin-operated machines that are subject to regulation or
taxation, or both, under Chapter 8, Title 132, Revised Statutes.
      (b)  A regulation adopted under this chapter may not
discriminate against a business on the basis of whether the
business <holds a license or permit under the Alcoholic Beverage
Code or on the basis of whether it> contains one or more
coin-operated machines that are subject to regulation or taxation,
or both, under Chapter 8, Title 132, Revised Statutes.
      <(c)  This chapter does not affect the existing preemption by
the state of the regulation of alcoholic beverages and the
alcoholic beverage industry as provided by Section 1.06, Alcoholic
Beverage Code.>
      SECTION __.  Section 11.43, Alcoholic Beverage Code, is
amended to read as follows:
      Sec. 11.43.  DISCRETION TO GRANT OR REFUSE PERMIT.
<(a)>  The commission and administrator have discretionary
authority to grant or refuse to issue an original or renewal permit
under the provisions of this subchapter or any other applicable
provision of this code.
      <(b)  Notwithstanding any other provision of this code that
authorizes the commission or administrator to refuse to issue a
permit without a hearing, the commission or administrator shall
hold a hearing before granting or refusing to issue an original
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.>
      <(c)  A hearing shall be held on any 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 and a petition is presented to the
commission requesting a hearing which is signed by 50 percent of
the residents who reside within 300 feet of any property line of
the affected premises.>
      <(d)  A request for a hearing made under Subsection (b) or
(c) of this section must include an allegation of grounds on which
the original or renewal application, as applicable, should be
denied.>
      SECTION __.  (a)  If a sexually oriented business that has a
license or permit issued by the Texas Alcoholic Beverage Commission
surrenders the license or permit to the commission before the
effective date of this Act, the Texas Alcoholic Beverage Commission
shall refund to the sexually oriented business an amount determined
by dividing the number of days the business will not be able to use
the license or permit as a result of the change in law made by this
Act, by the number of days for which the license or permit, as
originally issued, is valid, and by multiplying the quotient by the
amount of the license or permit fee.
      (b)  The change in law made by Section 243.012, Local
Government Code, as added by this Act, applies only to an offense
committed on or after the effective date of this Act. For the
purposes of this section, an offense is committed before the
effective date of this Act if any element of the offense occurs
before that date.
      (c)  An offense committed before the effective date of this
Act is covered by the law in effect when the offense was committed,
and the former law is continued in effect for that purpose.
      (d)  The changes in law made by Section 11.43, Alcoholic
Beverage Code, and Section 243.005, Local Government Code, as
amended by this Act and Section 243.012, Local Government Code, as
added by this Act apply to any holder of a license or permit under
the Alcoholic Beverage Code, including a holder of a food and
beverage certificate.