2007S0366-2 03/05/07
	By: West	S.B. No. 1717

	A BILL TO BE ENTITLED
	AN ACT
	relating to the imposition of fees on sexually oriented businesses
	to provide funding for certain purposes, including funding of the
	sexual assault program fund, and distributing that money from that
	fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 47.001 through 47.004, Business &
	Commerce Code, are redesignated as Subchapter A, Chapter 47,
	Business & Commerce Code, and a heading is added to that subchapter
	to read as follows:
	SUBCHAPTER A. SEX OFFENDER PROHIBITION
	SECTION 2.  Section 47.001, Business & Commerce Code, is
	amended to read as follows:
	Sec. 47.001.  DEFINITIONS. In this subchapter [chapter]:
	(1)  "Sex offender" means a person who has been
	convicted of or placed on deferred adjudication for an offense for
	which a person is subject to registration under Chapter 62, Code of
	Criminal Procedure.
	(2)  "Sexually oriented business" has the meaning
	assigned by Section 243.002, Local Government Code.
	SECTION 3.  Chapter 47, Business & Commerce Code, is amended
	by adding Subchapter B to read as follows:
	SUBCHAPTER B. FEES ON CERTAIN SEXUALLY ORIENTED BUSINESSES
	Sec. 47.051.  DEFINITIONS. In this subchapter:
	(1)  "Nude" means:
	(A)  entirely unclothed; or
	(B)  clothed in a manner that leaves uncovered or
	visible through less than fully opaque clothing any portion of the
	breasts below the top of the areola of the breasts, if the person is
	female, or any portion of the genitals or buttocks.
	(2)  "Sexually oriented business" has the meaning
	assigned by Section 243.002, Local Government Code.
	Sec. 47.052.  FEE ON ADMISSIONS. (a)  A fee is imposed on a
	sexually oriented business that provides live nude entertainment or
	performances in an amount equal to $5 for each entry by each
	customer admitted to the business regardless of whether a business
	charges a customer for admission using a membership fee or a
	multiple-entry admission charge.
	(b)  A person operating a sexually oriented business in this
	state shall remit all fees imposed under this section to the
	comptroller each quarter in the manner prescribed by the
	comptroller.
	(c)  The comptroller may revoke the registration certificate
	of a sexually oriented business that violates the provisions of
	this section.
	Sec. 47.053.  ANNUAL REGISTRATION. (a)  A person may not
	operate a sexually oriented business in this state on or after
	January 1, 2008, unless the person possesses a current registration
	certificate issued by the comptroller under this subchapter.
	(b)  To obtain a registration certificate under this
	subchapter, a person must:
	(1)  file with the comptroller an original application
	on a form prescribed by the comptroller; and
	(2)  pay a $5,000 registration fee to the comptroller.
	(c)  The application must include:
	(1)  the name and address of the sexually oriented
	business that is the subject of the registration certificate; and
	(2)  any other information that the comptroller
	requires.
	(d)  A registration certificate issued under this subchapter
	expires on the first anniversary of the date of issuance.
	(e)  A separate registration certificate is required under
	this subchapter for each distinct sexually oriented business
	premises, address, or location operating in this state.
	Sec. 47.054.  RENEWAL. (a)  A person may renew an unexpired
	registration certificate by paying to the comptroller, before the
	expiration date of the certificate, the annual registration fee.
	(b)  A person may renew an expired registration certificate
	under this subsection. If the certificate has been expired for not
	more than 90 days, the person may renew the certificate by paying to
	the comptroller a fee that is 1-1/2 times the amount of the annual
	registration fee. If the registration certificate has been expired
	for more than 90 days but less than two years, the person may renew
	the certificate by paying to the comptroller a fee that is two times
	the amount of the annual registration fee.
	(c)  A person whose registration certificate has been
	expired for two years or more may not renew the certificate. The
	person may obtain a new registration certificate by complying with
	the requirements and procedures for obtaining an original
	registration certificate.
	Sec. 47.055.  NOTICE OF APPLICATION. (a)  Not less than 60
	days before filing an original application to obtain a registration
	certificate under this subchapter, the operator of the proposed
	sexually oriented business must:
	(1)  publish notice for two consecutive issues in a
	newspaper of general circulation published in the city or town in
	which the applicant's proposed place of business is located; and
	(2)  notify by first class mail the following public
	officials representing the area in which the applicant's proposed
	place of business is located:
	(A)  each city council member;
	(B)  each county commissioner;
	(C)  the state representative; and
	(D)  the state senator.
	(b)  If no newspaper of general circulation is published in
	the appropriate city or town, the notice required by Subsection
	(a)(1) must be published in a newspaper of general circulation in
	the county where the applicant's proposed place of business is to be
	located. If no newspaper of general circulation is published in
	that county, the notice must be published in a newspaper which is
	published in the closest neighboring county and is circulated in
	the county where the applicant's proposed place of business is to be
	located.
	(c)  The notice required under Subsection (a)(1) must be in
	10-point boldface type and set forth the type of registration
	applied for; the exact location of the business; the name of the
	owner or owners; the trade name, if operating under an assumed name;
	and in the case of a corporation, the names and titles of all
	officers of the corporation.
	(d)  The notice to public officials under Subsection (a)(2)
	must contain the information described by Subsection (c).
	Sec. 47.056.  CIVIL PENALTY FOR FAILURE TO REGISTER. A
	person who operates a sexually oriented business without possessing
	a current registration certificate issued under this subchapter
	shall pay a civil penalty in an amount determined by comptroller
	rule.
	Sec. 47.057.  TRUST ACCOUNT. Except as provided by Section
	420.008(b-1), Government Code, the comptroller shall deposit the
	fees collected by the comptroller under this subchapter in trust in
	the separate suspense account of the county from which the fees were
	collected.
	Sec. 47.058.  DISTRIBUTION OF TRUST FUNDS. At least twice
	during each state fiscal year and at other times as often as
	feasible, the comptroller shall send to the county treasurer
	payable to the county the county's share of the fees collected by
	the comptroller under this subchapter.
	Sec. 47.059.  AMOUNTS RETAINED IN TRUST ACCOUNT. (a)  The
	comptroller may retain in the suspense account of a county a portion
	of the county's share of the fee collected for the county under this
	subchapter, not to exceed five percent of the amount remitted to the
	county. If the fee is abolished or the law imposing the fee is
	repealed, the amount that may be retained may not exceed five
	percent of the final remittance to the county at the time of the
	termination of the collection of the fee.
	(b)  From the amounts retained in a county's suspense
	account, the comptroller may make refunds for overpayments to the
	account and to redeem dishonored checks and drafts deposited to the
	credit of the account.
	Sec. 47.060.  INTEREST ON FEE REVENUE. Interest earned on
	all deposits made with the comptroller under this subchapter,
	including interest earned from the suspense accounts retained under
	Section 47.059, shall be sent at least twice during each state
	fiscal year, and at other times as often as feasible, to each county
	treasurer payable to the appropriate county in proportion to that
	county's share of the fees collected by the comptroller under this
	subchapter.
	Sec. 47.061.  USE OF FEE REVENUE FOR INDIGENT HEALTH CARE.
	(a)  Except as provided by Subsection (b) or (c), money received by
	a county under this subchapter is for the use and benefit of the
	county. The county shall use the money only for indigent health
	care purposes.
	(b)  If the county has a countywide hospital district, the
	money received by the county under this subchapter is received only
	for the use and benefit of the hospital district.
	(c)  If territory within the county is included in the
	boundaries of one or more hospital districts that are not
	countywide, the money received by the county under this subchapter
	must be:
	(1)  used only for indigent health care purposes; and
	(2)  allocated between the county and a hospital
	district located in the county according to the number of indigent
	persons served during the preceding calendar year by the county or a
	hospital district located in the county.
	(d)  Money received under this subchapter may be used or
	pledged as security for bonds or other obligations issued:
	(1)  by or on behalf of a hospital district for
	authorized purposes; or
	(2)  by a county for indigent health care purposes.
	Sec. 47.062.  RULEMAKING. The comptroller shall adopt any
	necessary rules for the administration, payment, collection, and
	enforcement of fees imposed by this subchapter.
	SECTION 4.  Section 420.008, Government Code, is amended by
	adding Subsections (b-1) and (d) and amending Subsection (c) to
	read as follows:
	(b-1)  In addition to the amounts deposited to the fund under
	Subsection (b), an amount not to exceed $12 million per fiscal
	biennium from the fee imposed under Section 47.052, Business &
	Commerce Code, shall be deposited to the credit of the fund.
	(c)  Except as provided by Subsection (d), the [The]
	legislature may appropriate money deposited to the credit of the
	fund only to the attorney general to finance the grant program
	created by this chapter.
	(d)  The legislature may appropriate an amount, not to exceed
	$12 million annually, from money deposited to the credit of the fund
	to the following agencies for the purposes provided:
	(1)  the Department of State Health Services for
	measuring the prevalence of sexual assault in the state;
	(2)  The University of Texas at Austin Institute on
	Domestic Violence and Sexual Assault to conduct research on all
	aspects of sexual assault and domestic violence;
	(3)  the attorney general for:
	(A)  sexual violence prevention campaigns;
	(B)  grants to faith-based groups, independent
	school districts, and community action organizations for
	prevention of sexual assault;
	(C)  grants for equipment for Sexual Assault Nurse
	Examiner (SANE) programs;
	(D)  grants to support the preceptorship of future
	sexual assault nurse examiners;
	(E)  grants for continuing education for sexual
	assault nurse examiners;
	(F)  grants to increase the level of sexual
	assault services statewide;
	(G)  grants to support victim assistance
	coordinators in district attorney's offices; and
	(H)  grants to support technology in rape crisis
	centers;
	(4)  the Texas State University System for training and
	technical assistance for campus safety for independent school
	districts;
	(5)  the office of the governor for grants to support
	sexual assault prosecution projects;
	(6)  the Department of Public Safety to support sexual
	assault training for Texas Rangers;
	(7)  the Texas Department of Criminal Justice for:
	(A)  increasing the capacity of the sex offender
	civil commitment program;
	(B)  pilot projects for the monitoring of sex
	offenders on parole; and
	(C)  increasing the number of adult incarcerated
	sex offenders receiving treatment; and
	(8)  the Texas Youth Commission for increasing the
	number of juvenile incarcerated sex offenders receiving treatment.
	SECTION 5.  The fee imposed by Section 47.052, Business &
	Commerce Code, as added by this Act, applies only to a customer
	admitted to a sexually oriented business on or after January 1,
	2008.
	SECTION 6.  The comptroller of public accounts shall adopt
	all rules and forms necessary to implement Subchapter B, Chapter
	47, Business & Commerce Code, as added by this Act, not later than
	October 1, 2007.
	SECTION 7.  This Act takes effect September 1, 2007.