HF 396 (LSB 1978YH (7) 88)

HOUSE FILE 396

BY  SALMON

A BILL FOR

An Act relating to live adult entertainment facilities, including creating a human trafficking and child sexual exploitation prevention fund, and providing for the assessment of a surcharge.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  423H.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Live adult entertainment facility” means a striptease club or other business that serves or permits the consumption of alcohol on the premises of the business during at least thirty days in a calendar year, offers or provides activities by employees, agents, or contractors of the business that involve nude or partially clothed persons that, when considered as a whole, appeal primarily to an interest in nudity or sex.
   2.  “Nude or partially clothed person” means any of the following
   a.  A person who is entirely unclothed.
   b.  A person who is partially clothed in such a way that leaves uncovered or visible through less than fully opaque clothing any portion of the female breast below the top of the areola of the breast, or any portion of the genitals or buttocks.
   3.  “Operator” means a person who owns or operates a live adult entertainment facility in this state.
    Sec. 2.  NEW SECTION.  423H.2  Surcharge —— collection —— enforcement —— remittance.
   1.  a.  Beginning January 1, 2020, and every year thereafter, an annual surcharge shall be assessed against each live adult entertainment facility in an amount that equals the product of five dollars multiplied by the number of customers admitted to the operator’s live adult entertainment facility during the calendar year.
   b.  A live adult entertainment facility shall keep and make available records, receipts, invoices, and other pertinent papers relating to the number of customers entering the facility each calendar year as the director of the department of revenue shall require, in the form that the director shall require, for as long as the director has the authority to examine and determine the surcharge due.
   2.  This section shall not be construed as requiring the surcharge to be paid by each customer of the live adult entertainment facility.
   3.  Beginning January 15, 2021, and every January 15 thereafter, the surcharge as calculated under subsection 1 is due and payable, and shall be paid by the operator to the department of revenue on forms prescribed by the department of revenue.
   4.  Revenues from the surcharge shall be deposited into the human trafficking and child exploitation prevention fund created in section 710B.1.
   5.  If the operator does not pay the surcharge, the operator shall also pay interest on the surcharge at the rate in effect under section 421.7 for each month counting each fraction of a month as an entire month, computed from the date the annual tax deposit form was required to be filed. The penalty and interest shall be paid to the department of revenue and disposed of in the same manner as provided in subsection 4. Unpaid surcharges, penalties, and interest may be enforced in the same manner as the taxes imposed under chapter 423.
    Sec. 3.  NEW SECTION.  710B.1  Human trafficking and child exploitation prevention fund.
   1.  The department of revenue shall annually remit all surcharge revenue collected under section 423H.2 to the treasurer of state in the manner prescribed by the treasurer of state.
   2.  A human trafficking and child exploitation prevention fund is created in the state treasury as a separate fund under the control of the department of justice. All moneys deposited or paid into the fund pursuant to subsection 1 are appropriated and made available to the department to be used to provide grants to governmental and nongovernmental entities and individuals involved with upholding community standards of decency, strengthening families, or developing, expanding, or strengthening programs for child victims of human trafficking, to be used for any of the following:
   a.  Rape kit testing.
   b.  Physical and mental health services.
   c.  Temporary and permanent housing or shelter.
   d.  Employment, education, and job training.
   e.  Training for first responders and educational campaigns for the public to increase awareness to prevent, and to protect victims of, human trafficking, domestic violence, prostitution, child abuse, and rape. 
   f.  For medical examination costs pursuant to section 915.41, for the department of justice’s prosecutor-based victim service coordination, including the duties defined in sections 910.3 and 910.6, for the awarding of funds to programs that provide services and support to victims of domestic abuse pursuant to chapter 236, for victims of sexual abuse as provided in chapter 236A, for reimbursement to the Iowa law enforcement academy for domestic abuse and human trafficking training, for the support of an automated victim notification system pursuant to section 915.10A, for training for victim service providers, for victim service programming, to provide training concerning homicide, domestic assault, sexual assault, stalking, harassment, and to conduct outreach, awareness, and training on human trafficking pursuant to section 710A.6. 
   g.  Family counseling.
   h.  Creative arts that do not contain or promote obscene material.
   i.  Border security.
   j.  State agency support programs assisting victims of human trafficking.
   k.  To support the governor’s initiatives on human trafficking, programs upholding community standards of decency, and state security.
   l.  Human trafficking enforcement programs.
   3.  Notwithstanding section 8.33, any balance in the fund on June 30 of any fiscal year shall not revert to the general fund of the state.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to live adult entertainment facilities, including creating a human trafficking and child sexual exploitation prevention fund, and providing for the assessment of a surcharge.
   The bill provides that beginning January 1, 2020, and every year thereafter, an annual surcharge shall be assessed against each live adult entertainment facility in an amount that equals the product of $5 multiplied by the number of customers admitted to the operator’s live adult entertainment facility during the calendar year.
   The bill provides that beginning January 15, 2021, and every January 15 thereafter, the surcharge as calculated under the bill is due and payable, and shall be paid by the operator to the department of revenue on forms prescribed by the department of revenue.
   The bill requires the live adult entertainment facility to keep records, receipts, invoices, and other pertinent papers relating to the number of customers entering the facility each calendar year, and open such records for inspection as the director of the department of revenue requires.
   The bill specifies that revenues from the surcharge shall be deposited into the human trafficking and child exploitation prevention fund created in the bill.
   The bill defines “live adult entertainment facilities”, “nude or partially clothed person”, and “operator”.
   The bill creates a human trafficking and child exploitation prevention fund under the control of the department of justice. All moneys deposited or paid into the fund are appropriated and made available to the department of justice to be used to provide grants to governmental and nongovernmental entities and individuals involved with upholding community standards of decency, strengthening families, or developing, expanding, or strengthening programs for child victims of human trafficking to be used for any of the activities as detailed in the bill.