The Magazine of Illinois Lawyers

July 2013Volume 101Number 7Page 336

July 2013 Illinois Bar Journal Cover Image

Illinois Law Update:

By students of the University of Illinois College of Law

Surcharge for strip clubs to benefit sexual assault crisis centers. PA 097-1035

(Effective 1/1/13)

State lawmakers have enacted the Live Adult Entertainment Facility Surcharge Act to fund sexual assault crisis centers in Illinois. 35 ILCS 175. The Act defines a "Live Adult Entertainment Facility" as a business that 1) serves or allows alcohol consumption, and 2) has provided - within the preceding 30 days - nude or semi-nude activities predominantly related to an interest in nudity or sex. 35 ILCS 175/5. Activities include those performed by a person who is entirely unclothed as well as one who appears nude or semi-nude through transparent clothing.

Under the new law, a strip club operator is required to pay an annual surcharge in one of two ways. 35 ILCS 175/10. Either the operator can pay the Department of Revenue a) a $3 surcharge for each person who enters the facility, or b) a surcharge in a specified amount based on gross receipts. If the operator chooses to pay the $3 surcharge, he or she is required to record the admissions of customers who are subject to it. 35 ILCS 174/20. Furthermore, when an operator ceases to provide the activities set out by the Act, he or she must file a final return with the Department within one month of discontinuation.

The Department of Revenue will then direct 98 percent of the proceeds from the imposed surcharge to the Sexual Assault Services and Prevention Fund. The remaining 2 percent shall cover administration and enforcement costs related to the Act.

The Sexual Assault Services and Prevention Fund is a source of funding for sexual assault organizations. 35 ILCS 175/15. Qualifying organizations are those that contract with the Department of Revenue to provide assistance to victims of sexual assault and/or activities that seek to prevent sexual assault.

A county circuit court shall review all final administrative decisions of the Department of Revenue in connection with the administration of the surcharge. 35 ILCS 175/40. Furthermore, when an operator fails to provide a return, or provides a fraudulent return, he or she is guilty of a Class 4 felony under the Act. 35 ILCS 175/45.