BILL NUMBER: AB 2441 AMENDED
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,
(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
to the business
by a customer per visit
. 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
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
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
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
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.
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
(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
(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
(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, 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
(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
by a customer per visit
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
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
(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
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
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
(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.