Amended in Senate May 7, 2013

Senate Bill No. 782

Introduced by Senator DeSaulnier

February 22, 2013

An act to add begin insert and repeal end insert Chapter 20 (commencing with Section 26300) to Division 20 of the Health and Safety Code, to amend Section 13836 of the Penal Code, and to add begin insert and repeal end insert Part 14.7 (commencing with Section 34001) to Division 2 of the Revenue and Taxation Code, relating to sexual assaults.

LEGISLATIVE COUNSEL’S DIGEST

SB 782, as amended, DeSaulnier. 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 begin insert , until January 1, 2024, end insert impose a tax on persons operating a sexually oriented business, as defined, at the rate of $10 per visit by a customer to the business inclusive of admission and begin delete reentry . end delete begin insert reentry. end insert 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 Office of Emergency Services for specified purposes related to the treatment and prevention of sexual assault. begin insert This bill would prohibit the Office of Emergency Services from allocating any funds until an appellate court has determined that the tax on persons operating a sexually oriented business is not unconstitutional. end insert

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.

(f) This act shall be known and may be cited as the Sexual
Assault Victims Equity (SAVE) Act.

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.  

(a) The Office of Emergency Services shall use funds
transferred from the Sexual Assault Treatment and Prevention
Fund. Funding allocations shall be determined by the Office of
Emergency Services, in collaboration with the State Advisory
Committee on Sexual Assault Victim Services, as stipulated in
Section 13836 of the Penal Code begin delete , no later than June 20, 2014 end delete .
Except as provided in subdivision begin delete (d), end delete begin insert (f), end insert funds transferred from
the Sexual Assault Treatment and Prevention Fund shall be used
only for the following purposes:

(1) 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.

(2) 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. Funds awarded pursuant to
this paragraph shall be administered by the Office of Emergency
Services and approved by the State Advisory Committee on Sexual
Assault Victim Services, as authorized in Section 13836 of the
Penal Code.

(3) Civil legal services to sexual assault survivors.

(4) Coordination of sexual assault response teams that provide
multidisciplinary response services to sexual assault survivors.

(5) Culturally and linguistically appropriate intervention services
to sexual assault survivors from underrepresented or underserved
communities.

(6)  To award grants to reimburse the payment of adult and
adolescent sexual assault forensic exams.

(7) To award grants to nonprofit begin delete , community-based end delete
organizations to support intervention and treatment services for
victims of sexual exploitation of human trafficking. Eligible
programs for these grants include, but are not limited to,
begin delete community-based end delete organizations that provide services for victims
of sexual and domestic violence and work to end and prevent
sexual and domestic violence.

(8) To award grants to nonprofit begin delete , community-based end delete
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. Funds awarded pursuant to this paragraph shall
be administered by the Office of Emergency Services and approved
by the State Advisory Committee on Sexual Assault Victim
Services, as stipulated in Section 13836 of the Penal Code.

(b) Grants awarded pursuant to paragraphs begin delete 3 to 8 end delete begin insert (3) to (8) end insert ,
inclusive, begin insert of subdivision (a) end insert shall be awarded as a result of a
competitive request for proposal process.

(c) No more than 10 percent annually of the funds deposited in
the Sexual Assault Treatment and Prevention Fund may be used
for the administration by the Office of Emergency Services of
these grant programs.

begin insert

(d) The Office of Emergency Services shall not allocate any
funds under this section until an appellate court has determined
that the tax imposed by Part 14.7 (commencing with Section 34001)
of Division 2 of the Revenue and Taxation Code is not
unconstitutional. The Office of Emergency Services may allocate
funds immediately after the determination.

end insert begin insert

(e) Notwithstanding subdivisions (a) and (b), the Office of
Emergency Services shall not allocate more than 20 percent of
moneys in the Sexual Assault Treatment and Prevention Fund in
any calendar year to one group, organization, corporation,
partnership, or other entity, whether for profit or nonprofit, or
individual.

end insert begin delete

(d)

end delete

begin insert (f) end insert  (1) Notwithstanding subdivision (a), two hundred thousand
dollars ($200,000) shall be appropriated biennially by the
Legislature to the Office of Emergency Services from the Sexual
Assault Treatment and Prevention Fund to fund a report created
by the Office of Emergency Services 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.

begin insert

(g) This chapter shall remain in effect only until January 1,
2024, and as of that date is repealed.

end insert

SEC. 3.  

Section 13836 of the Penal Code is amended to read:

13836.  

The office shall establish the State Advisory Committee
on Sexual Assault Victim Services which shall develop a course
of training for district attorneys in the investigation and prosecution
of sexual assault cases, child sexual exploitation cases, and child
sexual abuse cases and shall approve grants awarded pursuant to
Section 13837 and Chapter 20 (commencing with Section 26300)
of Division 20 of the Health and Safety Code. The courses shall
include training in the unique emotional trauma experienced by
victims of these crimes.

It is the intent of the Legislature in the enactment of this chapter
to encourage the establishment of sex crime prosecution units,
which shall include, but not be limited to, child sexual exploitation
and child sexual abuse cases, in district attorneys’ offices
throughout the state.

SEC. 4.  

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, 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 visit
by a customer to the business 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 begin delete the end delete begin insert this end insert 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 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 begin delete used end delete
begin insert transferred end insert as specified in Section 26300 of the Health and Safety
Code.

begin insert

begin insert 34010. end insert   

This part shall remain in effect only until January 1,
2024, and as of that date is repealed.

end insert

SEC. 5.  

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. 6.  

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.