Bill Text: TX HB3768 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the regulation of owners, operators, employees, and independent contractors of sexually oriented businesses to reduce risks to public and occupational health and to prevent human trafficking; requiring an occupational license; imposing fees; providing civil penalties; creating a criminal offense.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-24 - Referred to Licensing & Administrative Procedures [HB3768 Detail]

Download: Texas-2015-HB3768-Introduced.html

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84R9309 NC-D
By: Zedler H.B. No. 3768

A BILL TO BE ENTITLED
AN ACT
relating to the regulation of owners, operators, employees, and
independent contractors of sexually oriented businesses to reduce
risks to public and occupational health and to prevent human
trafficking; requiring an occupational license; imposing fees;
providing civil penalties; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) human trafficking is an affront to the rights and
liberties of free people and an anathema to the living principles
enshrined within the United States Constitution and the Texas
Constitution;
(2) human trafficking is a form of modern-day slavery,
where human beings are traded for sexual exploitation or forced
labor;
(3) the moral problem of human trafficking exists in
Texas, where the United States Department of Justice identified the
Interstate 10 corridor as the number one human trafficking route in
the United States, with as many as one out of four victims passing
through Texas;
(4) human trafficking in Texas has been known to occur
in strip clubs, spas, massage parlors, modeling studios, and adult
theaters;
(5) the Internet and other technologies are being used
to facilitate human trafficking;
(6) demand for commercial sex fuels the criminal
enterprise of human trafficking;
(7) human trafficking in Texas involves the
disproportionate exploitation of children; and
(8) the legislature has a justified interest in
leveraging the full power of the state toward the curtailment and
eradication of practices enabling human trafficking.
SECTION 2. Subtitle D, Title 13, Occupations Code, is
amended by adding Chapter 2159 to read as follows:
CHAPTER 2159. SEXUALLY ORIENTED BUSINESSES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2159.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Public Safety Commission.
(2) "Department" means the Department of Public
Safety.
(3) "License holder" means a person who holds a
license issued under this chapter.
(4) "Sexually oriented business" has the meaning
assigned by Section 243.002, Local Government Code.
Sec. 2159.002. ADMINISTRATION BY DEPARTMENT OF PUBLIC
SAFETY. The department shall administer this chapter.
Sec. 2159.003. MUNICIPAL AND COUNTY REGULATION. This
chapter is in addition to any municipal or county regulation. To
the extent of a conflict between this chapter and a municipal or
county regulation, this chapter controls.
Sec. 2159.004. EXEMPTIONS. (a) This chapter does not apply
to:
(1) a business operated by or employing a licensed
psychologist, licensed physical therapist, licensed massage
therapist, licensed vocational nurse, registered nurse, licensed
athletic trainer, licensed cosmetologist, or licensed barber
engaged only in performing the normal and customary functions
authorized under the license;
(2) a business operated by or employing a licensed
physician or licensed chiropractor engaged in practicing the
healing arts;
(3) a retail establishment whose principal business is
the offering of wearing apparel for sale to customers and that does
not exhibit merchandise on live models;
(4) an activity conducted or sponsored:
(A) by a proprietary school licensed by this
state or a state-supported junior college or institution of higher
education; or
(B) by a private institution of higher education
that maintains or operates educational programs in which credits
are transferable to a state-supported junior college or institution
of higher education;
(5) a person licensed as an occupational therapist
under Chapter 454;
(6) a person who is providing a repair, maintenance,
air conditioning, or delivery service on the premises of a sexually
oriented business; or
(7) a nonsexual nudist camp.
(b) An activity conducted or sponsored by an entity
identified in Subsection (a)(4):
(1) must be in a structure that does not have a sign or
other advertising visible from the exterior of the structure
indicating that a nude person is available for viewing;
(2) must require that, to participate in the activity
or conduct of a class, a student must enroll in the class at least
three days in advance of the class; and
(3) may not have more than one nude model on the
premises at any time.
SUBCHAPTER B. POWERS AND DUTIES
Sec. 2159.051. FEES. (a) The department shall set fees in
an amount sufficient to cover the cost of administering this
chapter.
(b) The department shall reimburse sheriff's departments
for the cost of processing license applications and issuing license
cards or certificates under this chapter.
Sec. 2159.052. RULES. (a) The commission shall adopt rules
necessary to administer and enforce this chapter.
(b) Rules adopted under this section must:
(1) seek to identify and prevent human trafficking
through sexually oriented businesses; and
(2) establish public and occupational health
standards for sexually oriented businesses that may relate to:
(A) the supervision of public health and
occupational health risks at all times during the operation of a
sexually oriented business;
(B) the proper safeguards for sanitation, public
health, and occupational health in the operation of a sexually
oriented business or in the conduct of an employee on the premises
of a sexually oriented business; and
(C) the inspection of a sexually oriented
business for public health risks, occupational health risks, and
other violations of this chapter.
Sec. 2159.053. RECORDS DISCLOSURE; CONFIDENTIALITY. (a)
The department shall disclose to a law enforcement agency
information contained in the department's files and records
regarding whether a named individual is licensed under this
chapter.
(b) Except as otherwise provided by this section, all
records maintained under this chapter regarding an applicant or
license holder are confidential and are not subject to mandatory
disclosure under Chapter 552, Government Code, except that an
applicant or license holder may be furnished a copy of disclosable
records regarding that applicant or license holder on request and
the payment of a reasonable fee.
Sec. 2159.054. HUMAN TRAFFICKING EDUCATIONAL COURSE. (a)
The commission by rule shall establish the content of and approval
requirements for the human trafficking educational course an
applicant is required to take to be eligible for a license under
Section 2159.105.
(b) In adopting the rules, the commission shall establish a
task force to collaborate with nonprofit organizations designated
by the department to develop the content for the course. The
department shall make the course available to applicants through
the department's Internet website.
SUBCHAPTER C. LICENSE REQUIREMENTS
Sec. 2159.101. LICENSE REQUIRED. (a) A person may not own,
operate, or otherwise engage in a business transaction as an owner
or operator at a sexually oriented business unless the person holds
a license under this chapter.
(b) A person may not employ or hire a person to work at, or
contract with an independent contractor to work at, a sexually
oriented business unless the person employed or the independent
contractor entering into the contract holds a license under this
chapter.
(c) A sexually oriented business shall maintain a copy of
the license of any owner, operator, employee, or independent
contractor associated with the business for at least 30 days after
the last day the owner, operator, employee, or independent
contractor is associated with the business.
Sec. 2159.102. ISSUANCE OF LICENSE. (a) The department
shall issue a sexually oriented business license to an applicant
that meets the requirements of this chapter. The sheriff's
departments of each county shall assist the department in
administering the issuance of licenses under this chapter. The
department shall establish procedures for sheriff's departments to
accept applications for and to issue license cards or certificates
issued under this chapter.
(b) The department may not issue a license under this
chapter before the fifth day after the date the application for the
license is submitted to the department.
(c) The department shall establish separate categories of
licenses issued under this chapter for:
(1) an owner or operator of a sexually oriented
business; and
(2) an employee of or independent contractor for a
sexually oriented business.
(d) A license issued under this chapter is not transferable.
Sec. 2159.103. FORM OF LICENSE. A license issued to an
individual under this chapter must be in the form of a card or
certificate and be capable of being verified as belonging to the
license holder on inspection by the department or a law enforcement
agency.
Sec. 2159.104. LICENSE APPLICATION. (a) A license
applicant must apply to the department on a form and in the manner
the department prescribes. A sheriff's department may accept and
process a license application for the department.
(b) The application must be accompanied by a nonrefundable
application fee and any other appropriate fees.
Sec. 2159.105. ELIGIBILITY FOR LICENSE; INELIGIBILITY DUE
TO CERTAIN OFFENSES. (a) To be eligible for a license under this
chapter, an applicant must:
(1) be at least 18 years of age;
(2) be a United States citizen or legal resident of the
United States;
(3) submit a complete set of fingerprints for purposes
of obtaining criminal history record information;
(4) successfully complete a human trafficking
educational course approved by the department; and
(5) meet any other requirements approved by the
department.
(b) A person is ineligible to be issued a license under this
chapter if the person has been convicted of:
(1) an offense under Section 20A.02, Penal Code
(trafficking of persons);
(2) an offense under Section 43.25, Penal Code (sexual
performance by a child);
(3) prostitution;
(4) promotion of prostitution;
(5) aggravated promotion of prostitution;
(6) compelling prostitution;
(7) obscenity;
(8) sale, distribution, or display of harmful material
to a minor;
(9) possession of child pornography;
(10) public lewdness;
(11) indecent exposure;
(12) indecency with a child;
(13) sexual assault or aggravated sexual assault;
(14) incest, including an offense under Section 25.02,
Penal Code (prohibited sexual conduct); or
(15) harboring a runaway child.
Sec. 2159.106. LICENSE EXPIRATION AND RENEWAL. (a) An
initial license expires on the 180th day after the date the license
was issued. The first renewal of an initial license expires on the
first anniversary of the date the initial license was issued.
Subsequent renewals of the license expire on the first anniversary
of the date the license was renewed.
(b) A person who is otherwise eligible to renew a license
may renew an unexpired license by paying the required renewal fee to
the department before the expiration date of the license. A person
whose license has expired may not engage in activities that require
a license until the license is renewed.
(c) A person whose license has been expired for 90 days or
less may renew the license by paying to the department a renewal fee
that is equal to 1-1/2 times the normally required renewal fee.
(d) A person whose license has been expired for more than 90
days but less than one year may renew the license by paying to the
department a renewal fee that is equal to two times the normally
required renewal fee.
(e) A person whose license has been expired for one year or
more may not renew the license. The person may obtain a new license
by complying with the requirements and procedures for obtaining an
original license.
Sec. 2159.107. NOTICE OF RENEWAL. Not later than the 30th
day before the date a person's license is scheduled to expire, the
department shall send written notice of the impending expiration to
the person at the person's last known address according to the
records of the department.
Sec. 2159.108. LICENSE AVAILABILITY FOR INSPECTION. (a)
An owner, operator, employee, or independent contractor licensed
under this chapter must have the person's license available for
inspection by the department or a law enforcement agency at the
premises of the sexually oriented business when conducting business
or working at the sexually oriented business.
(b) In a prosecution for a violation under this section, a
presumption exists that the owner, operator, employee, or
independent contractor did not have a license issued under this
chapter if the license is not at the premises of the business as
required by this section.
SUBCHAPTER D. LICENSE DENIAL AND DISCIPLINARY PROCEDURES
Sec. 2159.151. ADMINISTRATIVE SANCTIONS. (a) The
department shall revoke, suspend, or refuse to issue or renew a
license or shall reprimand a license holder for a violation of this
chapter or a rule adopted under this chapter.
(b) The department may place on probation a person whose
license is suspended. If a license suspension is probated, the
department may require the person:
(1) to report regularly to the department on matters
that are the basis of the probation;
(2) to limit business activities to the areas
prescribed by the department; or
(3) to continue or review professional education until
the person attains a degree of skill satisfactory to the department
in those areas that are the basis of the probation.
Sec. 2159.152. COMPLAINTS. Any person may file a complaint
with the department alleging a violation of this chapter or a rule
adopted under this chapter.
Sec. 2159.153. PROHIBITED ACTIONS. A license holder may
not:
(1) obtain a license by means of fraud,
misrepresentation, or concealment of a material fact;
(2) sell, barter, or offer to sell or barter a license;
or
(3) engage in unprofessional conduct that endangers or
is likely to endanger the health, welfare, or safety of the public
as defined by a commission rule.
Sec. 2159.154. MONITORING OF LICENSE HOLDER; RULES. (a)
The commission by rule may develop a system for monitoring a license
holder's compliance with this chapter.
(b) Rules adopted under this section may include procedures
to:
(1) monitor for compliance a license holder who is
ordered by the department to perform certain acts; and
(2) identify and monitor license holders who represent
a risk to the public.
Sec. 2159.155. LICENSE DENIAL, REVOCATION, OR SUSPENSION
FOR CRIMINAL CONVICTION. (a) The department may deny a license
application or request for renewal, or may suspend or revoke a
license, if the applicant or license holder has been convicted of:
(1) a felony; or
(2) a misdemeanor involving:
(A) prostitution;
(B) promotion of prostitution;
(C) obscenity;
(D) sale, distribution, or display of harmful
material to a minor;
(E) public lewdness;
(F) indecent exposure; or
(G) harboring a runaway child.
(b) The department may take action authorized by this
section:
(1) after the time for appeal of the person's
conviction has elapsed;
(2) after the judgment or conviction has been affirmed
on appeal; or
(3) on issuance of an order granting probation and
suspending the imposition of the person's sentence, without regard
to whether a subsequent order:
(A) allows withdrawal of a plea of guilty;
(B) sets aside a verdict of guilty; or
(C) dismisses an information or indictment.
(c) A plea or verdict of guilty or a conviction following a
plea of nolo contendere is a conviction for purposes of this
section.
Sec. 2159.156. SCHEDULE OF SANCTIONS; RULES. The
department shall use the schedule of sanctions adopted by
commission rule for any sanction imposed as the result of a hearing
conducted by the department.
Sec. 2159.157. REINSTATEMENT. (a) A person may apply for
reinstatement of a revoked license on or after the first
anniversary of the date of revocation.
(b) The department may accept or reject the application.
Sec. 2159.158. EMERGENCY SUSPENSION. (a) The department
or a three-member committee of members designated by the department
shall temporarily suspend the license of a license holder if the
department or committee determines from the evidence or information
presented to it that continued practice by the license holder would
constitute a continuing and imminent threat to the public health or
welfare.
(b) A license may be suspended under this section without
notice or hearing on the complaint if:
(1) action is taken to initiate proceedings for a
hearing before the State Office of Administrative Hearings
simultaneously with the temporary suspension; and
(2) a hearing is held as soon as practicable under this
chapter and Chapter 2001, Government Code.
(c) The State Office of Administrative Hearings shall hold a
preliminary hearing not later than the 14th day after the date of
the temporary suspension to determine if there is probable cause to
believe that a continuing and imminent threat to the public health
or welfare still exists. A final hearing on the matter shall be
held not later than the 61st day after the date of the temporary
suspension.
SUBCHAPTER E. PENALTIES AND OTHER ENFORCEMENT PROCEDURES
Sec. 2159.201. INJUNCTION. The department may apply to a
district court in any county for an injunction or another order to
restrain the violation of this chapter by a person other than a
license holder under this chapter.
Sec. 2159.202. CRIMINAL OFFENSES. (a) A person commits an
offense if the person violates Section 2159.101.
(b) A person commits an offense if the person:
(1) works as an employee or independent contractor for
a sexually oriented business; and
(2) does not have a license issued under this chapter.
(c) An offense under Subsection (a) is a Class A
misdemeanor. An offense under Subsection (b) is a Class C
misdemeanor.
(d) On a finding by a justice or municipal court that an
individual has committed an offense under Subsection (b), the court
has jurisdiction to enter an order, in lieu of a fine, that requires
the individual to perform community service for a nonprofit
organization.
(e) A justice or municipal court shall dismiss the complaint
against an individual alleging that the individual committed an
offense under Subsection (b) if the court finds that the
individual has successfully complied with the conditions imposed on
the individual by the court under Subsection (d).
Sec. 2159.203. CIVIL PENALTY. (a) A person who violates
Section 2159.101 is liable to the state for a civil penalty in an
amount not to exceed $1,000 for each violation. Each day a
violation occurs is a separate violation.
(b) The attorney general, a district attorney, or a county
attorney may institute an action to recover a civil penalty under
this section. Venue for the action is a district court in Travis
County or the county in which the person who is alleged to have
violated Section 2159.101 resides.
(c) If the attorney general institutes an action under this
section, a civil penalty recovered in the action shall be deposited
in the state treasury to the credit of the general revenue fund. If
a district or county attorney institutes the action, the penalty
shall be deposited to the credit of the county's general fund.
SUBCHAPTER F. ADMINISTRATIVE PENALTY
Sec. 2159.251. IMPOSITION OF ADMINISTRATIVE PENALTY. The
department may impose an administrative penalty on a person
licensed under this chapter who violates Section 2159.101 or a rule
or order adopted under that section.
Sec. 2159.252. AMOUNT OF ADMINISTRATIVE PENALTY. (a) The
amount of the administrative penalty may not be less than $500 or
more than $20,000 for each violation. Each day a violation
continues or occurs is a separate violation for the purpose of
imposing a penalty.
(b) The amount shall be based on:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the violation;
(2) the economic harm caused by the violation;
(3) the history of previous violations;
(4) the amount necessary to deter a future violation;
(5) the risk to public health or occupational health
posed by the violation;
(6) efforts to correct the violation; and
(7) any other matter that justice may require.
Sec. 2159.253. REPORT AND NOTICE OF VIOLATION AND PENALTY.
(a) If the department determines that a violation of Section
2159.101 occurred, the department may issue a report stating:
(1) the facts on which the determination is based; and
(2) the department's recommendation on the imposition
of an administrative penalty, including a recommendation on the
amount of the penalty.
(b) Not later than the 14th day after the date the report is
issued, the department shall give written notice of the report to
the person. The notice must:
(1) include a brief summary of the alleged violation;
(2) state the amount of the recommended administrative
penalty; and
(3) inform the person of the person's right to a
hearing on the occurrence of the violation, the amount of the
penalty, or both.
Sec. 2159.254. PENALTY TO BE PAID OR HEARING REQUESTED. (a)
Not later than the 10th day after the date the person receives the
notice, the person in writing may:
(1) accept the determination and recommended
administrative penalty of the department; or
(2) make a request for a hearing on the occurrence of
the violation, the amount of the penalty, or both.
(b) If the person accepts the determination and recommended
penalty of the department, the department by order shall approve
the determination and impose the recommended penalty.
Sec. 2159.255. HEARING. (a) If the person requests a
hearing or fails to respond to the notice within the period
prescribed by Section 2159.254(a), the department shall set a
hearing and give written notice of the hearing to the person.
(b) An administrative law judge of the State Office of
Administrative Hearings shall hold the hearing.
(c) The administrative law judge shall make findings of fact
and conclusions of law and promptly issue to the department a
proposal for a decision about the occurrence of the violation and
the amount of a proposed administrative penalty.
Sec. 2159.256. DECISION BY DEPARTMENT. (a) Based on the
findings of fact, conclusions of law, and proposal for decision,
the department by order may determine that:
(1) a violation occurred and impose an administrative
penalty; or
(2) a violation did not occur.
(b) The notice of the department's order given to the person
must include a statement of the right of the person to judicial
review of the order.
Sec. 2159.257. OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
(a) Not later than the 30th day after the date the department's
order becomes final, the person shall:
(1) pay the administrative penalty; or
(2) file a petition for judicial review contesting the
occurrence of the violation, the amount of the penalty, or both.
(b) A person who files a petition for judicial review within
the period prescribed by Subsection (a) may:
(1) stay enforcement of the penalty by:
(A) paying the penalty to the court for placement
in an escrow account; or
(B) giving the court a supersedeas bond approved
by the court that:
(i) is for the amount of the penalty; and
(ii) is effective until all judicial review
of the department's order is final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit
stating that the person is financially unable to pay the penalty and
is financially unable to give the supersedeas bond; and
(B) giving a copy of the affidavit to the
department by certified mail.
(c) If the department receives a copy of an affidavit under
Subsection (b)(2), the department may file with the court, not
later than the fifth day after the date the copy is received, a
contest to the affidavit.
(d) The court shall hold a hearing on the facts alleged in
the affidavit as soon as practicable and shall stay the enforcement
of the penalty on finding that the alleged facts are true. The
person who files an affidavit has the burden of proving that the
person is financially unable to pay the penalty and to give a
supersedeas bond.
Sec. 2159.258. COLLECTION OF PENALTY. (a) If the person
does not pay the administrative penalty and the enforcement of the
penalty is not stayed, the penalty may be collected.
(b) The attorney general may sue to collect the penalty.
Sec. 2159.259. DETERMINATION BY COURT. (a) If the court
sustains the determination that a violation occurred, the court may
uphold or reduce the amount of the administrative penalty and order
the person to pay the full or reduced amount of the penalty.
(b) If the court does not sustain the finding that a
violation occurred, the court shall order that a penalty is not
owed.
Sec. 2159.260. REMITTANCE OF PENALTY AND INTEREST. (a) If
the person paid the administrative penalty and if the amount of the
penalty is reduced or the penalty is not upheld by the court, the
court shall order, when the court's judgment becomes final, that
the appropriate amount plus accrued interest be remitted to the
person.
(b) The interest accrues at the rate charged on loans to
depository institutions by the New York Federal Reserve Bank.
(c) The interest shall be paid for the period beginning on
the date the penalty is paid and ending on the date the penalty is
remitted.
(d) If the person gave a supersedeas bond and the penalty is
not upheld by the court, the court shall order, when the court's
judgment becomes final, the release of the bond.
(e) If the person gave a supersedeas bond and the amount of
the penalty is reduced, the court shall order the release of the
bond after the person pays the reduced amount.
SECTION 3. Not later than February 1, 2016, the Public
Safety Commission shall adopt rules and the Department of Public
Safety shall set fees, prescribe forms, and approve the human
trafficking educational course necessary to implement Chapter
2159, Occupations Code, as added by this Act.
SECTION 4. (a) Except as required by Subsection (b) of this
section, this Act takes effect September 1, 2015.
(b) Section 2159.101 and Subchapters D, E, and F, Chapter
2159, Occupations Code, as added by this Act, take effect September
1, 2016.