RALEIGH, N.C. (NCN News) – A bill that would require a $10 fee for each visit to “sexually oriented businesses” was approved by the House Judiciary 1 committee Tuesday (June 9).
Bill sponsor Rep. Dennis Riddell (R-Alamance) explained that the proposal was modeled on policies used in other states, citing Illinois, Georgia, and Texas. The bill would impose a $10 entry fee on sexually oriented businesses that serve alcohol on the premises.
Riddell said the intent was to generate a dedicated funding stream for programs that assist victims of domestic violence, child abuse, sexual assault, and trafficking—services he argued are often underfunded. He also asserted the approach “passes constitutional muster” elsewhere and emphasized that the bill was not intended to regulate protected speech or “dictate content,” but to address harmful secondary impacts associated with such establishments.
The fee would be collected quarterly, and records of individuals who paid the fee would not be kept, according to the legislation.
Rep. Pricey Harrison (D-Greensboro) raised concerns, acknowledging the merit of the supported services but questioning the policy connection between those programs and charging patrons of sexually oriented businesses, such as strip clubs. She also expressed unease about using a zoning-based definition to drive this funding mechanism.
Texas instituted a $5 fee but then raised it $10 with money going toward sexual assault survivor assistance programs and health services for low-income people. Illinois provides money for rape crisis center with a $3 fee.
Legislative staff analyst Ike McCree outlined relevant case law, noting there was no direct North Carolina or Fourth Circuit precedent on the specific issue, and referencing Texas cases that addressed fee and licensing requirements tied to regulation.
The bill’s next stop is the House Finance Committee.