Amended in Senate January 6, 2014

Amended in Senate May 7, 2013

Senate BillNo. 782


Introduced by Senator DeSaulnier

February 22, 2013


begin delete An act to add and repeal 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 and repeal Part 14.7 (commencing with Section 34001) to Division 2 of the Revenue and Taxation Code, relating to sexual assaults. end deletebegin insertAn act to add and repeal Article 13.51 (commencing with Section 18846) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 782, as amended, DeSaulnier. begin deleteSexual assault treatment and prevention: sexually oriented business tax. end deletebegin insertIncome taxes: voluntary contributions: California Sexual Violence Victim Services Fund.end insert

begin insert

The Personal Income Tax Law authorizes an individual to contribute amounts in excess of his or her tax liability for the support of specified funds.

end insert
begin insert

This bill would additionally allow an individual to designate on his or her tax return that a specified amount in excess of his or her tax liability be transferred to the California Sexual Violence Victim Services Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the California Sexual Violence Victim Services Fund from being added on the tax return until another voluntary contribution designation is removed.

end insert
begin insert

The bill would require moneys in the California Sexual Violence Victim Services Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and the balance to the EpiCenter of the Safe and Active Communities Branch of the State Department of Public Health for allocation to the California Coalition Against Sexual Assault (CALCASA), for the award of grants to support CALCASA rape crisis center programs for victims of rape and sexual assault.

end insert
begin insert

The bill would provide that these provisions would remain in effect only until January 1 of the 5th taxable year following the first appearance of the California Sexual Violence Victim Services Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not equal or exceed the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.

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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.

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This bill would, until January 1, 2024, 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 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 Office of Emergency Services for specified purposes related to the treatment and prevention of sexual assault. 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.

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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.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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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.

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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 23 of the membership of each house of the Legislature.

end delete

Vote: begin delete23 end deletebegin insertmajorityend insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertArticle 13.51 (commencing with Section 18846)
2is added to Chapter 3 of Part 10.2 of Division 2 of the end insert
begin insertRevenue
3and Taxation Code
end insert
begin insert, to read:end insert

begin insert

4 

5Article begin insert13.51.end insert  California Sexual Violence Victim Services Fund
6

 

7

begin insert18846.end insert  

(a) An individual may designate on the tax return that
8a contribution in excess of the tax liability, if any, be made to the
9California Sexual Violence Victim Services Fund established by
10Section 18846.1. That designation is to be used as a voluntary
11contribution on the tax return.

12(b) The contributions shall be in full dollar amounts and may
13be made individually by each signatory on a joint return.

14(c) A designation under subdivision (a) shall be made for a
15taxable year on the original return for that taxable year, and once
16made shall be irrevocable. If payments and credits reported on
17the return, together with any other credits associated with the
18individual’s account, do not exceed the individual’s liability, the
19return shall be treated as though no designation has been made.
20If a designee is not specified, the contribution shall be transferred
21to the General Fund after reimbursement of the direct actual costs
22of the Franchise Tax Board for the collection and administration
23of funds under this article.

24(d) If an individual designates a contribution to more than one
25account or fund listed on the tax return, and the amount available
26is insufficient to satisfy the total amount designated, the
P4    1contribution shall be allocated among the designees on a pro rata
2basis.

3(e) The Franchise Tax Board shall revise the form of the return
4to include a space labeled “California Sexual Violence Victim
5Services Fund” to allow for the designation permitted under
6subdivision (a). The form shall also include in the instructions
7information that the contribution may be in the amount of one
8dollar ($1) or more and that the contribution shall be used to
9further the services that California’s rape crisis centers provide
10for victims of rape or sexual assault.

11(f) Notwithstanding any other law, a voluntary contribution
12designation for the California Sexual Violence Victim Services
13Fund shall not be added on the tax return until another voluntary
14contribution designation is removed.

15(g) A deduction shall be allowed under Article 6 (commencing
16with Section 17201) of Chapter 3 of Part 10 for any contribution
17made pursuant to subdivision (a).

18

begin insert18846.1.end insert  

There is hereby established in the State Treasury the
19California Sexual Violence Victim Services Fund to receive
20contributions made pursuant to Section 18846. The Franchise Tax
21Board shall notify the Controller of both the amount of money paid
22by taxpayers in excess of their tax liability and the amount of refund
23money that taxpayers have designated pursuant to Section 18846
24to be transferred to the California Sexual Violence Victim Services
25Fund. The Controller shall transfer from the Personal Income Tax
26Fund to the California Sexual Violence Victim Services Fund an
27amount not in excess of the sum of the amounts designated by
28individuals pursuant to Section 18846 for payment into that fund.

29

begin insert18846.2.end insert  

All moneys transferred to the California Sexual
30Violence Victim Services Fund, upon appropriation by the
31Legislature, shall be allocated as follows:

32(a) To the Franchise Tax Board and the Controller for
33reimbursement of all costs incurred by the Franchise Tax Board
34and the Controller in connection with their duties under this article.

35(b) To the EpiCenter of the Safe and Active Communities Branch
36of the State Department of Public Health for allocation to the
37California Coalition Against Sexual Assault (CALCASA) for the
38award of grants to support CALCASA rape crisis center programs
39for victims of rape and sexual assault. The EpiCenter of the Safe
P5    1and Active Communities Branch of the State Department of Public
2Health shall not use these funds for its administrative costs.

3

begin insert18846.3.end insert  

(a) Except as otherwise provided in subdivision (b),
4this article shall remain in effect only until January 1 of the fifth
5taxable year following the first appearance of the California Sexual
6Violence Victim Services Fund on the personal income tax return,
7and is repealed as of December 1 of that year.

8(b) (1) By September 1 of the second calendar year and each
9subsequent calendar year that the California Sexual Violence
10Victim Services Fund appears on the tax return, the Franchise Tax
11Board shall do all of the following:

12(A) Determine the minimum contribution amount required to
13be received during the next calendar year for the fund to appear
14on the tax return for the taxable year that includes that next
15calendar year.

16(B) Provide written notification to the EpiCenter of the Safe
17and Active Communities Branch of the State Department of Public
18Health of the amount determined in subparagraph (A).

19(C) Determine whether the amount of contributions estimated
20to be received during the calendar year will equal or exceed the
21minimum contribution amount determined by the Franchise Tax
22Board for the calendar year pursuant to subparagraph (A). The
23Franchise Tax Board shall estimate the amount of contributions
24to be received by using the actual amounts received and an
25estimate of the contributions that will be received by the end of
26that calendar year.

27(2) If the Franchise Tax Board determines that the amount of
28the contributions estimated to be received during a calendar year
29 will not at least equal the minimum contribution amount for the
30calendar year, this article shall be inoperative with respect to
31taxable years beginning on or after January 1 of that calendar
32year and shall be repealed on December 1 of that year.

33(3) For purposes of this section, the minimum contribution
34amount for a calendar year means two hundred fifty thousand
35dollars ($250,000) for the second calendar year after the first
36appearance of the California Sexual Violence Victim Services
37Fund on the personal income tax return or the minimum
38contribution amount as adjusted pursuant to subdivision (c).

39(c) For each calendar year, beginning with the third calendar
40year after the first appearance of the California Sexual Violence
P6    1Victim Services Fund on the personal income tax return, the
2Franchise Tax Board shall adjust, on or before September 1 of
3that calendar year, the minimum contribution amount specified in
4subdivision (b) as follows:

5(1) The minimum contribution amount for the calendar year
6shall be an amount equal to the product of the minimum
7contribution amount for the prior calendar year multiplied by the
8inflation factor adjustment as specified in subparagraph (A) of
9paragraph (2) of subdivision (h) of Section 17041, rounded off to
10the nearest dollar.

11(2) The inflation factor adjustment used for the calendar year
12shall be based on the figures for the percentage change in the
13California Consumer Price Index for all items received on or
14before August 1 of the calendar year pursuant to paragraph (1)
15of subdivision (h) of Section 17041.

16(d) Notwithstanding the repeal of this article, any contribution
17amounts designated pursuant to this article prior to its repeal shall
18continue to be transferred and disbursed in accordance with this
19article as in effect immediately prior to that repeal.

end insert
begin delete
20

SECTION 1.  

The Legislature finds and declares all of the
21following:

22(a)  It is the intent of the Legislature that an award of a grant to
23an organization pursuant to this act shall not result in a reduction
24in moneys appropriated by the Legislature to that organization.
25The taxes imposed by this measure are intended to ameliorate the
26negative secondary effects associated with the combination of
27sexually oriented businesses and alcohol so as to promote the
28health, safety, and welfare of the citizens of California.

29(b) Sexually oriented businesses that serve alcohol or that are
30located near liquor-serving businesses pose larger and qualitatively
31different ambient public safety hazards. Governments rely on this
32consistent finding of the empirical secondary effect literature as a
33rationale for limiting nudity in liquor-serving businesses.

34(c) Accordingly, the consumption of alcohol on the premises
35of a sexually oriented business contributes to the need for
36community-based services to respond to victims of all forms of
37sexual exploitation, including sexual harassment, trafficking, and
38sexual assault.

39(d) Rape crisis centers and other victim service providers play
40a unique role in responding to assault, sexual abuse, trafficking,
P7    1and domestic violence. They also work to prevent crimes such as
2these through the creation of public awareness and prevention that
3empowers and restores persons who have been sexually violated.

4(e) This act is not intended to directly or indirectly impose
5limitations or restrictions on live nude dancing, nor is it the intent
6of this act to restrict or deny access by adults to live nude dancing
7performances that may be protected by the First Amendment to
8the United States Constitution or by the California Constitution.

9(f) This act shall be known and may be cited as the Sexual
10Assault Victims Equity (SAVE) Act.

11

SEC. 2.  

Chapter 20 (commencing with Section 26300) is added
12to Division 20 of the Health and Safety Code, to read:

13 

14Chapter  20. Sexual Assault Treatment and Prevention
15

 

16

26300.  

(a) The Office of Emergency Services shall use funds
17transferred from the Sexual Assault Treatment and Prevention
18Fund. Funding allocations shall be determined by the Office of
19Emergency Services, in collaboration with the State Advisory
20Committee on Sexual Assault Victim Services, as stipulated in
21Section 13836 of the Penal Code. Except as provided in subdivision
22(f), funds transferred from the Sexual Assault Treatment and
23Prevention Fund shall be used only for the following purposes:

24(1) To award grants for intervention services related to sexual
25assault survivors and rape prevention programs provided by rape
26crisis centers, as stipulated in Section 13837 of the Penal Code.

27(2) To award grants to, and contracts with, a statewide
28organization organized and operated as described in Section
29501(c)(3) of the Internal Revenue Code that has the primary
30purpose of ending sexual violence in this state, for programs for
31the intervention and prevention of sexual violence, outreach
32programs, training, and technical assistance to and support of
33California rape crisis centers, as stipulated in Section 13837 of
34Penal Code, and other organizations funded by the Sexual Assault
35Treatment and Prevention Fund to prevent and intervene in sexual
36violence in underserved communities. Funds awarded pursuant to
37this paragraph shall be administered by the Office of Emergency
38Services and approved by the State Advisory Committee on Sexual
39Assault Victim Services, as authorized in Section 13836 of the
40Penal Code.

P8    1(3) Civil legal services to sexual assault survivors.

2(4) Coordination of sexual assault response teams that provide
3multidisciplinary response services to sexual assault survivors.

4(5) Culturally and linguistically appropriate intervention services
5to sexual assault survivors from underrepresented or underserved
6communities.

7(6)  To award grants to reimburse the payment of adult and
8adolescent sexual assault forensic exams.

9(7) To award grants to nonprofit organizations to support
10intervention and treatment services for victims of sexual
11exploitation of human trafficking. Eligible programs for these
12grants include, but are not limited to, organizations that provide
13services for victims of sexual and domestic violence and work to
14end and prevent sexual and domestic violence.

15(8) To award grants to nonprofit organizations to support the
16intervention and treatment services for victims of sexual assault
17as part of dating or domestic violence, including, but not limited
18to, sexual assault services programs, as defined in Section 13837
19of the Penal Code, or domestic violence victim service
20organizations, as defined in Section 1037.1 of the Evidence Code.
21Funds awarded pursuant to this paragraph shall be administered
22by the Office of Emergency Services and approved by the State
23Advisory Committee on Sexual Assault Victim Services, as
24stipulated in Section 13836 of the Penal Code.

25(b) Grants awarded pursuant to paragraphs (3) to (8), inclusive,
26 of subdivision (a) shall be awarded as a result of a competitive
27request for proposal process.

28(c) No more than 10 percent annually of the funds deposited in
29the Sexual Assault Treatment and Prevention Fund may be used
30for the administration by the Office of Emergency Services of
31these grant programs.

32(d) The Office of Emergency Services shall not allocate any
33funds under this section until an appellate court has determined
34that the tax imposed by Part 14.7 (commencing with Section
3534001) of Division 2 of the Revenue and Taxation Code is not
36unconstitutional. The Office of Emergency Services may allocate
37funds immediately after the determination.

38(e) Notwithstanding subdivisions (a) and (b), the Office of
39Emergency Services shall not allocate more than 20 percent of
40moneys in the Sexual Assault Treatment and Prevention Fund in
P9    1any calendar year to one group, organization, corporation,
2partnership, or other entity, whether for profit or nonprofit, or
3individual.

4(f) (1) Notwithstanding subdivision (a), two hundred thousand
5dollars ($200,000) shall be appropriated biennially by the
6Legislature to the Office of Emergency Services from the Sexual
7Assault Treatment and Prevention Fund to fund a report created
8by the Office of Emergency Services to the Governor and the
9Legislature reporting the following:

10(A) The deficiencies with respect to research, prevention,
11response, victim services, adjudication, and incarceration, related
12to sexual assaults at state and local levels.

13(B) The effectiveness of appropriations made to fund this chapter
14and other legislation related to sexual assault intervention enacted
15by the Legislature.

16(C) Recommendations for appropriate performance measures
17that enable the Governor and the Legislature to assess and respond
18to the status of sexual assault prevention in this state.

19(2) Notwithstanding Section 10231.5 of the Government Code,
20a report, pursuant to paragraph (1), shall be submitted on July 1,
212015, and biennially thereafter.

22(3) A report to be submitted pursuant to this subdivision shall
23be submitted in compliance with Section 9795 of the Government
24Code.

25(g) This chapter shall remain in effect only until January 1,
262024, and as of that date is repealed.

27

SEC. 3.  

Section 13836 of the Penal Code is amended to read:

28

13836.  

The office shall establish the State Advisory Committee
29on Sexual Assault Victim Services which shall develop a course
30of training for district attorneys in the investigation and prosecution
31of sexual assault cases, child sexual exploitation cases, and child
32sexual abuse cases and shall approve grants awarded pursuant to
33Section 13837 and Chapter 20 (commencing with Section 26300)
34of Division 20 of the Health and Safety Code. The courses shall
35include training in the unique emotional trauma experienced by
36victims of these crimes.

37It is the intent of the Legislature in the enactment of this chapter
38to encourage the establishment of sex crime prosecution units,
39which shall include, but not be limited to, child sexual exploitation
P10   1and child sexual abuse cases, in district attorneys’ offices
2throughout the state.

3

SEC. 4.  

Part 14.7 (commencing with Section 34001) is added
4to Division 2 of the Revenue and Taxation Code, to read:

5 

6PART 14.7.  SEXUALLY ORIENTED BUSINESS TAX

7

 

8

34001.  

For purposes of this part, the following definitions
9apply:

10(a) “Nude” means clothed in a manner that leaves uncovered
11or visible through less than fully opaque clothing, any portion of
12the genitals or, in the case of a female, any portion of the breasts
13below the top of the areola of the breasts.

14(b) “Sexually oriented business” means a nightclub, bar,
15restaurant, or similar commercial enterprise that does both of the
16following:

17(1) Provides for an audience of two or more individuals live
18nude entertainment or live nude performances where the nudity is
19a function of everyday business operations and where nudity is a
20planned and intentional part of the entertainment or performance.

21(2) Authorizes on-premises consumption of alcoholic beverages,
22regardless of whether the consumption of alcoholic beverages is
23under a license or permit issued under the Alcoholic Beverage
24Control Act.

25

34002.  

The tax imposed by this part shall be in addition to any
26other taxes imposed by law.

27

34003.  

For the privilege of operating a sexually oriented
28business, a tax is hereby imposed upon all persons who operate a
29sexually oriented business at the rate of ten dollars ($10) per visit
30by a customer to the business inclusive of admission and reentry.

31

34004.  

A person who operates a sexually oriented business
32shall record daily in the manner required by the board the number
33of customers admitted to the business.

34

34005.  

A person who operates a sexually oriented business
35may not require the tax imposed by this part to be reimbursed by
36an employee or independent contractor of the sexually oriented
37business, but may require the tax to be reimbursed by the customer
38whose entry the tax is imposed upon, in a manner prescribed by
39the board.

P11   1

34006.  

(a) The taxes imposed by this part shall be due and
2payable to the board on or before the last day of the month
3following each calendar quarter.

4(b) (1) On or before the last day of the month following each
5calendar quarter, a return for the preceding quarterly period shall
6be filed with the board using electronic media.

7(2) The board may prescribe those forms and reporting
8requirements as are necessary to implement the tax, including, but
9not limited to, information regarding the number of entries to the
10business and the amount of tax due.

11

34006.5.  

Every person required to pay the tax imposed under
12this part shall register with the board. Every application for
13registration shall be made upon a form prescribed by the board
14and shall set forth the name under which the applicant transacts
15or intends to transact business, the location of the applicant’s place
16or places of business, and such other information as the board may
17require. An application for an account shall be authenticated in a
18form or pursuant to methods as may be prescribed by the board.

19

34007.  

The board shall administer and collect the tax imposed
20by this part pursuant to the Fee Collection Procedures Law (Part
2130 (commencing with Section 55001)). For purposes of this part,
22the references in the Fee Collection Procedures Law to “fee” shall
23include the tax imposed by this part and references to “feepayer”
24shall include a person required to pay the tax imposed by this part.

25

34008.  

The board shall enforce the provisions of this part and
26may prescribe, adopt, and enforce rules and regulations relating
27to the administration and enforcement of this part. The board may
28prescribe the extent to which any ruling or regulation shall be
29applied without retroactive effect.

30

34009.  

(a) The board shall transmit all payments, less refunds
31and the board’s costs of administration, to the Treasurer to be
32deposited in the State Treasury to the credit of the Sexual Assault
33Treatment and Prevention Fund, which is hereby created.

34(b) Moneys in the Sexual Assault Treatment and Prevention
35Fund shall, upon appropriation by the Legislature, be transferred
36as specified in Section 26300 of the Health and Safety Code.

37

34010.  

This part shall remain in effect only until January 1,
382024, and as of that date is repealed.

39

SEC. 5.  

No reimbursement is required by this act pursuant to
40Section 6 of Article XIII B of the California Constitution because
P12   1the only costs that may be incurred by a local agency or school
2district will be incurred because this act creates a new crime or
3infraction, eliminates a crime or infraction, or changes the penalty
4for a crime or infraction, within the meaning of Section 17556 of
5the Government Code, or changes the definition of a crime within
6the meaning of Section 6 of Article XIII B of the California
7Constitution.

8

SEC. 6.  

The provisions of this act shall become operative on
9the first day of the first calendar quarter commencing more than
1090 days after the effective date of this act.

end delete


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