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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2743
Sponsored by Representative NELSON (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would create new laws for adult entertainment establishments. The Act takes
effect 91 days following sine die.(Flesch Readability Score: 63.6).
Requires adult entertainment establishments to be registered with the Oregon Liquor and
Cannabis Commission in order to operate in this state. Directs the commission to adopt rules es-
tablishing a process for applying for issuance and renewals of registration.Makes registration
contingent upon compliance with certain regulatory requirements.
Requires the Department of Business and Consumer Services to make training available to adult
entertainers and other staff who work in adult entertainment establishments.
Establishes requirements regarding the terms and conditions of leasing fee agreements entered
into between adult entertainers and adult entertainment establishments.
Requires adult entertainment establishments to take certain actions to protect the health and
safety of adult entertainers.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to adult entertainment establishments; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
ADULT ENTERTAINMENT ESTABLISHMENTS
(Definitions)
SECTION 1. As used in sections 1 to 9 of this 2025 Act:
(1) “Adult entertainer” means a person who engages in adult entertainment within an
adult entertainment establishment.
(2) “Adult entertainment” means any live exhibition, performance or dance of any type:
(a) In which an adult entertainer is in a state of full or partial nudity; and
(b) That is conducted within the view of one or more members of the public inside an
adult entertainment establishment.
(3) “Adult entertainment establishment” means a business establishment that provides
adultentertainment.
(4) “Applicant” means an applicant for registration or renewal of registration issued un-
der section 2 of this 2025 Act.
(5) “Nudity” has the meaning given that term in ORS 30.831.
(Registration)
SECTION 2. (1)(a) The Oregon Liquor and Cannabis Commission shall establish by rule
a system for registering adult entertainment establishments.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1960 HB2743
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(b) A person may not operate an adult entertainment establishment that has not been
registered under this section.
(2) The registration system established under this section must require an applicant for
registration to submit an application to the commission that includes:
(a) The name of the individual who owns the establishment or, if a business entity owns
the establishment, the name of each individual who has a financial interest in the establish-
ment;
(b) The name of the individual or individuals responsible for the adult entertainment es-
tablishment, if different from the name of the individual who owns the adult entertainment
establishment; and
(c) The address of the adult entertainment establishment.
(3) For purposes of this section, the commission shall adopt rules establishing:
(a) Qualifications for an adult entertainment establishment to be registered under this
section, including qualifications that require each adult entertainment establishment to:
(A) Install and maintain in all bathrooms, dressing or locker rooms, and all private or
semi-private enclosed spaces where an adult entertainer may be alone with a customer,
minimum security systems with capabilities to provide a discreet way for adult entertainers
to alert security personnel of an immediate danger.
(B) Ensure there is at least one designated security personnel on-site during operating
hours;
(b) Processes for applying for and renewing a registration issued under this section; and
(c) Fees for applying for issuance and renewal of a registration under this section.
(4) A registration issued under this section must be:
(a) Renewed annually.
(b) Displayed on the premises of the adult entertainment establishment at all times.
(5) The commission may inspect the premises of adult entertainment establishments
registered under this section to ensure compliance with the requirements under sections 2,
5, 6 and 7 of this 2025 Act.
(6) All applicants seeking registration or renewal shall supply proof of compliance with
sections 1 to 9 of this 2025 Act and any rules adopted by the registering agency at the time
registration is issued or renewed. The commission by rule shall determine the manner in
which proof of compliance must be supplied.
(7) The commission may refuse to issue or renew or may suspend or revoke a registra-
tion issued under this section for failing to:
(a) Comply with any provision of sections 1 to 9 of this 2025 Act; or
(b) Provide proof of compliance in accordance with subsection (6) of this section.
(8) Nothing in this section is intended to permit the commission to adopt rules that re-
strict adult entertainment from occurring in adult entertainment establishments that are
also licensed under ORS chapter 471 to serve alcohol.
(9) All moneys collected under this section shall be deposited in the Adult Entertainment
Establishment Registration and Regulation Fund established under section 3 of this 2025 Act.
SECTION 3. The Adult Entertainment Establishment Registration and Regulation Fund
is established in the State Treasury, separate and distinct from the General Fund. Interest
earned by the Adult Entertainment Establishment Registration and Regulation Fund shall
be credited to the fund. Moneys in the fund are continuously appropriated to the Oregon
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Liquor and Cannabis Commission for the purpose of carrying out the duties and obligations
of the commission with respect to registration and oversight of adult entertainment estab-
lishments in this state. The fund shall consist of all moneys credited to the fund, including
moneys paid as registration and renewal fees under section 2 of this 2025 Act, and moneys
appropriated by the state for use by the commission in ensuring that adult entertainment
establishments are in compliance with the requirements under sections 1 to 9 of this 2025
Act.
(Training)
SECTION 4. (1) The Department of Consumer and Business Services shall develop and
make available by or through the department a training course for:
(a) Adult entertainers who work in adult entertainment establishments to receive train-
ing on:
(A) The rights and responsibilities of adult entertainers with respect to worked per-
formed as an employee or as an independent contractor.
(B) The duty of adult entertainment facilities as employers to meet the requirements
under ORS 659A.375 regarding the adopting of policies for reducing and preventing
harassment, discrimination and sexual assault in the workplace, including a process for re-
porting prohibited conduct.
(C) Reporting workplace injuries, including incidents of sexual harassment and assault,
and including sexual assault as defined in ORS 659A.370.
(D) Human trafficking awareness and prevention.
(b) For staff, other than adult entertainers, who work in an adult entertainment estab-
lishment, to receive training on:
(A) Preventing sexual harassment and assault, including sexual assault as defined in ORS
659A.370, in the workplace.
(B) Human trafficking awareness and prevention.
(C) De-escalation techniques to prevent violence or harassment in the workplace.
(D) Providing first aid assistance during an emergency situation.
(2) An adult entertainment establishment shall require staff, other than adult
entertainers, to complete a training course described under subsection (1)(b) of this section
on an annual basis.
(3) An adult entertainment establishment shall keep and maintain records necessary to
demonstrate compliance with this section. An adult entertainment establishment must pro-
vide the records kept and maintained under this section to the Oregon Liquor and Cannabis
Commission upon the request of the commission and in accordance with any rules regarding
proof of compliance adopted by the commission under section 2 of this 2025 Act.
(4) The department may adopt rules to implement the provisions of this section, including
rules that provide a common recording form for purposes of maintaining records under this
section.
(Labor standards)
SECTION 5. (1) As used in this section:
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(a) “Leasing fee” means a fixed charge or percentage rate that is paid or payable by an
adult entertainer to an adult entertainment establishment for the privilege to use the adult
entertainment establishment to provide adult entertainment.
(b) “Leasing fee agreement” means an agreement entered into between an adult enter-
tainment establishment and an adult entertainer reflecting the terms and conditions of
leasingfees.
(c) “Percentage rate” means a percentage of the amount of any earnings collected by the
adult entertainer for providing adult entertainment at an adult entertainment establishment.
(2) Any leasing fees charged by an adult entertainment establishment must comply with
the requirements provided under this section.
(3) An adult entertainment establishment may not charge an adult entertainer a leasing
fee unless:
(a) The charge is made pursuant to a leasing fee agreement; and
(b) The leasing fees are charged equally among the adult entertainers in the adult
entertainmentestablishment.
(4) The terms and conditions of a leasing fee agreement:
(a) May not include terms or conditions that:
(A) Require the adult entertainer to pay additional fees or interest:
(i) For nonpayment or a late payment of a leasing fee.
(ii) For an adult entertainer’s failure to appear at the adult entertainment establishment
for a scheduled shift.
(iii) That would result in the adult entertainer carrying forward an unpaid balance from
previously incurred leasing fees.
(B) Require a leasing fee in an amount that is greater than what the adult entertainer
receives in earnings per shift or per day.
(C) Require a percentage based fee that, for any eight-hour period, exceeds:
(i) The lesser of $150 or 30 percent of the earnings collected by the adult entertainer,
excluding earnings from adult entertainment provided in private or exclusive areas within
the adult entertainment establishment; or
(ii) 30 percent of amounts collected by the entertainer for adult entertainment provided
in a private or exclusive area within the adult entertainment establishment.
(D) Require an adult entertainer to surrender to the adult entertainment establishment
the tips and gratuities received by the adult entertainer.
(b) Must describe the method used for estimating amounts to be collected as leasing fees
in any eight-hour period.
SECTION 6. (1) Each adult entertainment establishment shall post signage that informs
adult entertainers that the adult entertainment establishment may not:
(a) Require adult entertainers to surrender any tips or gratuities collected by the
entertainers for providing adult entertainment;
(b) Take an adverse action against an entertainer in response to an entertainer’s refusal
to surrender any tips or gratuities to the adult entertainment establishment; and
(c) Deny an adult entertainer’s request for a written explanation of the adult enter-
tainment establishment’s reasons for refusing to rehire the entertainer.
(2) The signage must be posted in areas that are designated for adult entertainers, in-
cluding but not limited to dressing rooms and locker rooms.
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(Safety and health standards)
SECTION 7. (1) Each adult entertainment establishment must establish written policies
and procedures maintaining a safe and healthy work place. At a minimum, the policies must:
(a) Establish the acceptable and appropriate behavior between customers and adult
entertainers.
(b) Establish protocols for adult entertainers and other staff of the adult entertainment
facility to report incidents or interactions involving customers exhibiting harassing or
threateningbehavior.
(c) Establish protocols for reporting suspicious or criminal activity involving:
(A) Prostitution;
(B) Sex trafficking; and
(C) Assault, including sexual assault as defined in ORS 659A.370.
(d) Require the dissemination of information to adult entertainers regarding resources
for victims of sex trafficking.
(e) Require adult entertainers to sign forms affirming that the entertainer:
(A) Is not a victim of sex trafficking.
(B) Is of legal age to provide adult entertainment; and
(C) Is not providing adult entertainment under duress or coercion.
(f) Require appropriate cleaning supplies be made available in all adult entertainment
performanceareas.
(g) Require the installation of keypad locks or other forms of restricted access to the
dressing rooms and locker rooms of adult entertainers.
(2) An adult entertainment establishment shall keep and maintain a log documenting all
reports of customer-related issues involving the behaviors and activities described under
subsection (1)(b) and (c) of this section. At a minimum, the log must include identifying in-
formation about the customer and a description of the incident.
SECTION 8. The Oregon Liquor and Cannabis Commission may adopt rules and conduct
inspections of the premises of an adult entertainment establishment as deemed necessary to
ensure compliance with sections 2, 5, 6 and 7 of this 2025 Act.
(Preemption of local laws)
SECTION 9. (1) Sections 1 to 9 of this 2025 Act supersede all charter provisions, ordi-
nances, regulations and other enactments adopted by local governments relating to adult
entertainmentestablishments.
(2) A local government may not adopt or enforce any ordinance or regulation for adult
entertainment establishments that:
(a) Restricts adult entertainment establishments from serving alcohol provided that the
adult entertainment is a licensee under ORS chapter 471.
(b) Limits the location or operations of adult entertainment establishments.
(c) Imposes permitting, registration or licensing requirements for adult entertainment
establishments.
APPLICABILITY
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SECTION 10. An adult entertainment establishment that is in operation on or before the
effective date of this 2025 Act must be registered in accordance with the requirements under
section 2 of this 2025 Act no later than January 1, 2027.
CAPTIONS
SECTION 11.The unit captions used in this 2025 Act are provided only for the conven-
ience of the reader and do not become part of the statutory law of this state or express any
legislative intent in the enactment of this 2025 Act.
OPERATIVE DATE
SECTION 12.(1) Sections 1 to 9 of this 2025 Act become operative on January 1, 2026.
(2) The Oregon Liquor and Cannabis Control Commission and the Department of Con-
sumer and Business Services may take any action before the operative date specified in
subsection (1) of this section that is necessary to enable the commission and the department
to exercise, on and after the operative date specified in subsection (1) of this section, all of
the duties, functions and powers conferred on the commission and the department by
sections 1 to 9 of this 2025 Act.
EFFECTIVE DATE
SECTION 13. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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