BILL NUMBER: AB 2441 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 14, 2012
AMENDED IN ASSEMBLY APRIL 19, 2012
AMENDED IN ASSEMBLY APRIL 9, 2012
INTRODUCED BY Assembly Member Williams
(Coauthors: Assembly Members Allen, Bradford, Brownley, Eng,
Mendoza, Mitchell, and Portantino)
(Coauthor: Senator Evans)
FEBRUARY 24, 2012
An act to add Chapter 20 (commencing with Section 26300) to
Division 20 of the Health and Safety Code, and to add Part 14.7
(commencing with Section 34001) to Division 2 of the Revenue and
Taxation Code, relating to sexual assaults.
LEGISLATIVE COUNSEL'S DIGEST
AB 2441, as amended, Williams. Sexual assault treatment and
prevention: sexually oriented business tax.
Existing law imposes various taxes, including taxes on the
privilege of engaging in certain activities. The Fee Collection
Procedures Law, the violation of which is a crime, provides
procedures for the collection of certain fees and surcharges.
This bill would impose a tax on persons operating a sexually
oriented business, as defined, at the rate of $10 per entry
visit by a customer to the business by
a customer per visit inclusive of admission and
reentry . The tax would be administered by the State Board of
Equalization and would be collected pursuant to the procedures set
forth in the Fee Collection Procedures Law. The bill would create the
Sexual Assault Treatment and Prevention Fund, and would require that
all revenues, less refunds and the costs of the administration of
the tax, derived from the tax be transferred to the fund. This bill
would provide that moneys in the fund, upon appropriation by the
Legislature, be used by the California Emergency Management Agency
for specified purposes related to the treatment and prevention of
sexual assault.
Because this bill would expand application of the Fee Collection
Procedures Law, the violation of which is a crime, it would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would become operative on the first day of the first
calendar quarter commencing more than 90 days after the effective
date of this bill.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) It is the intent of the Legislature that
an award of a grant to an organization pursuant to this act shall
not result in a reduction in moneys appropriated by the Legislature
to that organization. The taxes imposed by this measure are intended
to ameliorate the negative secondary effects associated with the
combination of sexually oriented businesses and alcohol so as to
promote the health, safety, and welfare of the citizens of
California.
(b) Sexually oriented businesses that serve alcohol or that are
located near liquor-serving businesses pose larger and qualitatively
different ambient public safety hazards. Governments rely on this
consistent finding of the empirical secondary effect literature as a
rationale for limiting nudity in liquor-serving businesses.
(c) Accordingly, the consumption of alcohol on the premises of a
sexually oriented business contributes to the need for
community-based services to respond to victims of all forms of sexual
exploitation, including sexual harassment, trafficking, and sexual
assault.
(d) Rape crisis centers and other victim service providers play a
unique role in responding to assault, sexual abuse, trafficking, and
domestic violence. They also work to prevent crimes such as these
through the creation of public awareness and prevention that empowers
and restores persons who have been sexually violated.
(e) This act is not intended to directly or indirectly impose
limitations or restrictions on live nude dancing, nor is it the
intent of this act to restrict or deny access by adults to live nude
dancing performances that may be protected by the First Amendment to
the United States Constitution or by the California Constitution.
SEC. 2. Chapter 20 (commencing with Section 26300) is added to
Division 20 of the Health and Safety Code, to read:
CHAPTER 20. SEXUAL ASSAULT TREATMENT AND PREVENTION
26300. The California Emergency Management Agency shall use funds
transferred from the Sexual Assault Treatment and Prevention Fund
only for the following purposes:
(a) To award grants for intervention services related to sexual
assault survivors and rape prevention programs provided by rape
crisis centers, as stipulated in Section 13837 of the Penal Code, and
for the following services:
(1) Civil legal services to sexual assault survivors.
(2) Coordination of sexual assault response teams that provide
multidisciplinary response services to sexual assault survivors.
(3) Culturally and linguistically appropriate intervention
services to sexual assault survivors from underrepresented or
underserved communities.
(b) To award grants to reimburse the payment of sexual assault
forensic exams.
(c) To award grants to, and contracts with, a statewide
organization organized and operated as described in Section 501(c)(3)
of the Internal Revenue Code that has the primary purpose of ending
sexual violence in this state, for programs for the intervention and
prevention of sexual violence, outreach programs, training, and
technical assistance to and support of California rape crisis
centers, as stipulated in Section 13837 of Penal Code, and other
organizations funded by the Sexual Assault Treatment and Prevention
Fund to prevent and intervene in sexual violence in underserved
communities.
(d) To award grants to nonprofit, community-based organizations to
support intervention and treatment services for victims of sexual
exploitation of human trafficking, including, but not limited to,
those that are engaged in work to end and prevent sexual and domestic
violence.
(e) To award grants to nonprofit, community-based organizations to
support the intervention and treatment services for victims of
sexual assault as part of dating or domestic violence, including, but
not limited to, sexual assault services programs, as defined in
Section 13837 of the Penal Code, or domestic violence victim service
organizations, as defined in Section 1037.1 of the Evidence Code.
(f) No more than 5 percent annually of the funds deposited in the
Sexual Assault Treatment and Prevention Fund may be used for the
administration by the California Emergency Management Agency of these
grant programs.
(g) (1) To fund a report created by the California Emergency
Management Agency to the Governor and the Legislature reporting the
following:
(A) The deficiencies with respect to research, prevention,
response, victim services, adjudication, and incarceration, related
to sexual assaults at state and local levels.
(B) The effectiveness of appropriations made to fund this chapter
and other legislation related to sexual assault intervention enacted
by the Legislature.
(C) Recommendations for appropriate performance measures that
enable the Governor and the Legislature to assess and respond to the
status of sexual assault prevention in this state.
(2) Notwithstanding Section 10231.5 of the Government Code, a
report, pursuant to paragraph (1), shall be submitted on July 1,
2015, and biennially thereafter.
(3) A report to be submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795 of the Government Code.
SEC. 3. Part 14.7 (commencing with Section 34001) is added to
Division 2 of the Revenue and Taxation Code, to read:
PART 14.7. SEXUALLY ORIENTED BUSINESS TAX
34001. For purposes of this part, the following definitions
apply:
(a) "Nude" means clothed in a manner that leaves uncovered or
visible through less than fully opaque clothing, any portion of the
genitals or buttocks or, in the case of a female,
any portion of the breasts below the top of the areola of the
breasts.
(b) "Sexually oriented business" means a nightclub, bar,
restaurant, or similar commercial enterprise that does both of the
following:
(1) Provides for an audience of two or more individuals live nude
entertainment or live nude performances where the
nudity is a function of everyday business operations and where nudity
is a planned and intentional part of the entertainment or
performance .
(2) Authorizes on-premises consumption of alcoholic beverages,
regardless of whether the consumption of alcoholic beverages is under
a license or permit issued under the Alcoholic Beverage Control Act.
34002. The tax imposed by this part shall be in addition to any
other taxes imposed by law.
34003. For the privilege of operating a sexually oriented
business, a tax is hereby imposed upon all persons who operate a
sexually oriented business at the rate of ten dollars ($10) per
entry visit by a customer to the
business by a customer per visit inclusive of
admission and reentry .
34004. A person who operates a sexually oriented business shall
record daily in the manner required by the board the number of
customers admitted to the business.
34005. A person who operates a sexually oriented business may not
require the tax imposed by this part to be reimbursed by an employee
or independent contractor of the sexually oriented business, but may
require the tax to be reimbursed by the customer whose entry the tax
is imposed upon, in a manner prescribed by the board.
34006. (a) The taxes imposed by the part shall be due and payable
to the board on or before the last day of the month following each
calendar quarter.
(b) (1) On or before the last day of the month following each
calendar quarter, a return for the preceding quarterly period shall
be filed with the board using electronic media.
(2) The board may prescribe those forms and reporting requirements
as are necessary to implement the tax, including, but not limited
to, information regarding the number of entries to the business and
the amount of tax due.
34006.5. Every person required to pay the tax imposed under this
part shall register with the board. Every application for
registration shall be made upon a form prescribed by the board and
shall set forth the name under which the applicant transacts or
intends to transacts transact business,
the location of the applicant's place or places of business, and
such other information as the board may require. An application for
an account shall be authenticated in a form or pursuant to methods as
may be prescribed by the board.
34007. The board shall administer and collect the tax imposed by
this part pursuant to the Fee Collection Procedures Law (Part 30
(commencing with Section 55001)). For purposes of this part, the
references in the Fee Collection Procedures Law to "fee" shall
include the tax imposed by this part and references to "feepayer"
shall include a person required to pay the tax imposed by this part.
34008. The board shall enforce the provisions of this part and
may prescribe, adopt, and enforce rules and regulations relating to
the administration and enforcement of this part. The board may
prescribe the extent to which any ruling or regulation shall be
applied without retroactive effect.
34009. (a) The board shall transmit all payments, less refunds
and the board's costs of administration, to the Treasurer to be
deposited in the State Treasury to the credit of the Sexual Assault
Treatment and Prevention Fund, which is hereby created.
(b) Moneys in the Sexual Assault Treatment and Prevention Fund
shall, upon appropriation by the Legislature, be used as specified in
Section 26300 of the Health and Safety Code.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 5. The provisions of this act shall become operative on the
first day of the first calendar quarter commencing more than 90 days
after the effective date of this act.