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F I S C A L I M P A C T R E P O R T

SPONSOR Grubesic

ORIGINAL DATE

LAST UPDATED

1/25/08

HB

SHORT TITLE

Fees for Sexually Oriented Business Patrons

SB 64

ANALYST C. Sanchez

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

Indeterminable

Indeterminable

Indeterminable Recurring

Sexual crimes

prosecution

and treatment

fund

(Parenthesis ( ) Indicate Revenue Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY08

FY09

FY10 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$100

$100

$100

$300 Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

Alcohol and Gaming Division (AGD)

SUMMARY

Synopsis of Bill

SB 64 would impose a fee of $5.00 per person for patrons of sexually oriented businesses. The

bill requires that sexually oriented businesses maintain records of the number of patrons entering

their business daily, in a manner prescribed by the director, and requires that businesses make

those records available for inspection and audit on request by the director. Fees would be

remitted to the state and would be distributed to the sexual crimes prosecution and treatment

fund.

Senate Bill 64 – Page

2

FISCAL IMPLICATIONS

According to RLD, to administer SB 64, the Alcohol and Gaming Division would require at least

two new FTE’s (auditors) to ensure compliance with the remittance of required fees. Operating

costs are indeterminate but would include mileage (or a vehicle) for two FTE’s, per diem for two

FTE’s, and equipment costs for laptop computers with accounting software.

Revenue cannot be determined as the number of patrons cannot be estimated, but any monies

generated would go to the sexual crimes prosecution and treatment fund, not to the general fund,

and not to support the administration of the bill.

SIGNIFICANT ISSUES

The bill through its definitions of “nude" and “sexually oriented businesses" infers that the type

of dancing that will be allowed in liquor licensed establishments will contradict the prohibition

on “indecent dancing" [intentionally exposing intimate parts to public while dancing or

performing and defines intimate parts] in §30-9-14.1. The bill further contradicts the provision

of §30-9-14.1 that provides a licensee, transferee or lessee who allows indecent dancing is guilty

of a petty misdemeanor but also that the liquor license may be revoked or suspended.

ADMINISTRATIVE IMPLICATIONS

According to the Alcohol and Gaming Division, to enforce the provisions of this bill, AGD

would require at least two new full time employees to audit sexually oriented business to ensure

compliance with reporting requirements and remittance of fees.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

SB 64 conflicts with NMSA 1978 Section 30-9-14.1 Indecent Dancing. §30-9-14.1 prohibits the

intentional exposing of genitalia or “intimate parts" while dancing or performing in a licensed

liquor establishment.

OTHER SUBSTANTIVE ISSUES

The bill may be challenged on First Amendment grounds.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status quo. Fees will not be collected for the sexual crimes prosecutions and treatment fund.

CS/bb