Assoc of Club Executives v. Paxton

CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 14, 2025
Docket24-50434
StatusPublished

This text of Assoc of Club Executives v. Paxton (Assoc of Club Executives v. Paxton) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Assoc of Club Executives v. Paxton, (5th Cir. 2025).

Opinion

Case: 24-50434 Document: 59-1 Page: 1 Date Filed: 07/14/2025

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED July 14, 2025 No. 24-50434 Lyle W. Cayce ____________ Clerk

Association of Club Executives of Texas, Incorporated; Lone Starr Multi-Theaters, Limited, doing business as New Fine Arts West; XTC Cabaret, Incorporated, doing business as XTC Cabaret Austin; RCI Dining Services (Round Rock), Incorporated, doing business as Rick’s Cabaret,

Plaintiffs—Appellants,

versus

Ken Paxton, Attorney General, State of Texas; Ed Serna, in his official capacity as Executive Director of the Texas Workforce Commission,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Western District of Texas USDC No. 1:21-CV-519 ______________________________

Before Stewart, Dennis, and Haynes, Circuit Judges. Carl E. Stewart, Circuit Judge: Case: 24-50434 Document: 59-1 Page: 2 Date Filed: 07/14/2025

No. 24-50434

In this case, our duty is to assess whether a statute’s restriction on speech withstands constitutional scrutiny—not to second guess the wisdom of state legislative policy. 1 Texas Senate Bill 315 prohibits individuals under the age of 21 years old from working at sexually oriented businesses to prevent sex trafficking and sexual exploitation. Appellants sued Texas’s Attorney General and the Executive Director of the Texas Workforce Commission (collectively, “Texas”) challenging the constitutionality of S.B. 315 under the First Amendment. After a bench trial, the district court issued findings of fact and conclusions of law upholding S.B. 315 as constitutional. Appellants timely appealed. For the following reasons, we AFFIRM the judgment of the district court. I. A. Statutory Background In 2021, the Texas Legislature enacted Senate Bill 315. Tex. S.B. 315, 87th Leg. R.S. (2021). Recognizing that sexually oriented businesses are high-risk locations for human trafficking and sexual exploitation, S.B. 315 aims to “provide necessary mechanisms” to prevent the “harmful secondary effects of sexually oriented businesses.” Senate Rsch. Ctr., Bill Anal., Tex. S.B. 315, 87th Leg. R.S. (2021). To do so, the bill raised the age of employment at sexually oriented businesses (“SOBs”) from eighteen to twenty-one years old. See Tex. S.B. 315, 87th Leg. R.S. (2021). In Texas, an SOB is defined as a: sex parlor, nude studio, modeling studio, love parlor, adult bookstore, adult movie theater, adult video arcade, adult movie arcade, adult video store, adult motel, or other commercial

_____________________ 1 We must look at whether it does, in fact, restrict speech in addition to the other issues.

2 Case: 24-50434 Document: 59-1 Page: 3 Date Filed: 07/14/2025

enterprise the primary business of which is the offering of a service or the selling, renting, or exhibiting of devices or any other items intended to provide sexual stimulation or sexual gratification to the customer. Tex. Loc. Gov’t Code Ann. § 243.002. Relevant here, S.B. 315 changed Texas laws regarding minors and SOBs in three ways. First, S.B. 315 amended § 125.0015 of Texas’s Civil Practice & Remedies Code to provide that a person maintains a “common nuisance” by “employing or entering into a contract for the performance of work or the provision of a service with an individual younger than 21 years of age for work or services performed” at an SOB. 2 Tex. S.B. 315, § 5, 87th Leg. R.S. (2021) (amending Tex. Civ. Prac. & Rem. Code § 125.0015(a)(19), (22)). Second, S.B. 315 amended § 51.016 of the Labor Code such that, generally, “[a] sexually oriented business may not employ or enter into a contract . . . for the performance of work or the provision of a service with an individual younger than 21 [18] years of age.” Tex. S.B. 315, § 6, 87th Leg. R.S. (2021) (amending Tex. Labor Code § 51.016(b)) (formatting in original). A violation of this section now constitutes a Class A misdemeanor subject to a one-year jail sentence, administrative penalties, or a suit for injunctive relief brought by the Attorney General of Texas. See Tex. S.B. 315, § 7, 87th Leg. R.S. (2021); Tex. Labor Code §§ 51.016(i)(3), 51.031(b). Third, S.B. 315 amended Texas Penal Code Section 43.251 by changing the definition of “child” to mean “a person younger than 21 [18] years of age.” Tex. S.B. 315, § 8, 87th Leg. R.S. (2021) (formatting in original) (amending Tex. Penal Code § 43.251(a)(1)). Section 43.251

_____________________ 2 The Attorney General of Texas is authorized to bring suits to enjoin and abate such common nuisances. Tex. Civ. Prac. & Rem. Code § 125.002(a).

3 Case: 24-50434 Document: 59-1 Page: 4 Date Filed: 07/14/2025

criminalizes “employment harmful to children.” Tex. Penal Code § 43.251(a)(1). Under that provision, “[a] person commits an offense if the person employs, authorizes, or induces a child to work: (1) in a sexually oriented commercial activity; or (2) in any place of business permitting, requesting, or requiring a child to work nude or topless.” Id. § 43.251(b)(1)–(2). Similar to an SOB, a “sexually oriented commercial activity” means a massage establishment, nude studio, modeling studio, love parlor, or other similar commercial enterprise the primary business of which is the offering of a service that is intended to provide sexual stimulation or sexual gratification to the customer. Id. § 43.251(a)(5). Thus, Section 43.251 effectively makes it a felony to “employ[], authorize[], or induce[]” someone under the age of 21 to work in or with an SOB. B. Factual Background Appellants are the Texas Entertainment Association (“TEA”), a non-profit trade group whose membership consists of adult cabarets and adult bookstores subject to S.B. 315’s age-based restrictions; Lone Starr Multi-Theatres, Ltd, d/b/a New Fine Arts West (“New Fine Arts”), an adult bookstore and adult video arcade subject to S.B. 315’s age restriction; XTC Cabaret, Inc. (“XTC”) and RCI Dining Services (Round Rock), Inc. (“Rick’s Cabaret”), adult cabarets subject to S.B. 315’s age restrictions which are owned by the same parent company. Appellants sued Ken Paxton, the Attorney General of Texas, and Ed Serna, the Executive Director of the Texas Workforce Commission, in their official capacities.

4 Case: 24-50434 Document: 59-1 Page: 5 Date Filed: 07/14/2025

C. Procedural History In June 2021, the TEA and other individual plaintiffs 3 filed a complaint under 42 U.S.C. § 1983, challenging the constitutionality of S.B. 315, seeking declaratory and injunctive relief. Four days later, they moved for a preliminary injunction. The district court held a hearing on that motion and ultimately denied it. In doing so, the district court determined that Texas enacted S.B. 315 with the reasonable belief that it would curb sex trafficking and sufficiently tailored the law to that end. In April 2022, Appellants filed their Amended Complaint adding the three other SOBs as plaintiffs to this case. The case then proceeded to discovery. After discovery, the parties filed cross-motions for summary judgment. The motions were referred to a Magistrate Judge, who issued a Report and Recommendation on July 26, 2023.

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