81R22055 ATP-D By: Cohen, Anchia, Dukes, Pitts, Hartnett, H.B. No. 2070 et al. Substitute the following for H.B. No. 2070: By: Oliveira C.S.H.B. No. 2070 A BILL TO BE ENTITLED AN ACT relating to the fee based on admissions to certain sexually oriented businesses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 47.052, Business & Commerce Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows: (a) A fee is imposed on a sexually oriented business in an amount equal to $3 [$5] for each entry by each customer admitted to the business. (a-1) For purposes of Section 151.007, Tax Code, the amount of a fee imposed under this section is not considered part of the sales price of the service for which the sales tax is otherwise imposed or part of the receipts of a sexually oriented business. SECTION 2. Section 47.054, Business & Commerce Code, is amended to read as follows: Sec. 47.054. ALLOCATION OF [CERTAIN] REVENUE FOR SEXUAL ASSAULT PROGRAMS. The comptroller shall deposit the amount [first $25 million] received from the fee imposed under this subchapter [in a state fiscal biennium] to the credit of the sexual assault program fund. SECTION 3. Subchapter B, Chapter 47, Business & Commerce Code, is amended by adding Section 47.057 to read as follows: Sec. 47.057. COMPTROLLER REPORT. (a) The comptroller shall submit quarterly reports to the chairs of the senate finance and the house of representatives appropriations committees regarding the fee collected by the comptroller under this subchapter. The report must include the amounts collected under this subchapter during the preceding quarter and any other information the comptroller considers appropriate. (b) The comptroller may require a sexually oriented business to provide information as necessary for the comptroller's compliance with the reporting requirement under this section. SECTION 4. Section 7, Chapter 1206 (H.B. 1751), Acts of the 80th Legislature, Regular Session, 2007, is amended by amending Subsections (a) and (b) to read as follows: (a) The Sexual Assault Advisory Council is established to: (1) serve as an information clearinghouse and informal coordinator of existing and future sexual assault programming efforts at state and local levels; (2) report to the governor and the 81st Legislature the results of actions taken by the 80th Legislature on any gaps with respect to research, prevention, response and other victims' services, adjudication, and incarceration at state and local levels; (3) develop recommendations for appropriate performance measures that enable the governor and the legislature to biennially assess and respond to the status of sexual assault in this state; [and] (4) report to the 81st Legislature on the effectiveness of appropriations made in this Act and other sexual assault legislation passed by the 80th Legislature; (5) biennially report to the legislature on the cost of sexual assault to the State of Texas and major local jurisdictions; (6) develop a statewide, multiyear strategy for eradication of sexual assault in Texas; and (7) make recommendations regarding the improvement of public safety in and around adult cabarets, particularly regarding sex and drug infractions. (b) The Sexual Assault Advisory Council is composed of representatives designated by the attorney general from state agencies that receive sexual assault-related appropriations in the General Appropriations Act and from the Texas Alcoholic Beverage Commission. SECTION 5. Not later than November 1, 2010, the attorney general, through the Sexual Assault Advisory Council established by Chapter 1206 (H.B. 1751), Acts of the 80th Legislature, Regular Session, 2007, shall conduct the following studies for inclusion in a comprehensive strategic report that the attorney general shall submit to the 82nd Legislature: (1) research relating to perpetrators of sexual assault; (2) research relating to women entertainers and the incidence of underage dancing; (3) a special study on sexually oriented businesses; and (4) a study regarding revenue for and costs of sexual assault in this state. SECTION 6. (a) The comptroller of public accounts shall collect the fee imposed under Section 47.052, Business & Commerce Code, as amended by this Act, until a court, in a final judgment upheld on appeal or no longer subject to appeal, finds Section 47.052, Business & Commerce Code, to be unconstitutional. (b) If a court, in a final judgment upheld on appeal or no longer subject to appeal, finds Section 47.052, Business & Commerce Code, as amended by this Act, to be unconstitutional, the comptroller of public accounts shall develop procedures for equitable and timely distributions of refunds of amounts collected by the comptroller pursuant to that section to persons who paid the fee imposed under that section. A rule of the comptroller of public accounts relating to the maximum amount of refund that may be paid to a person during a fiscal biennium does not apply. (c) The attorney general shall promptly notify the comptroller of public accounts of a court finding described by this section. SECTION 7. Sections 47.055 and 47.0551, Business & Commerce Code, are repealed. SECTION 8. The changes in law made by this Act apply only to a fee imposed for the admission of a customer to a sexually oriented business on or after the effective date of this Act. SECTION 9. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.