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Business and economic development
March 28, 2008
Judge strikes down strip club fee
A state district judge today ruled that Texas may not collect a $5-per-customer strip club fee that went into effect in January.
Judge Scott Jenkins wrote in an opinion that the fee, “while furthering laudable goals, violates the First Amendment to the United States Constitution and is therefore invalid.”
The Legislature created the fee last year to pay for sexual assault prevention programs and health insurance for low-income Texans. The Texas Entertainment Association Inc. — a group of adult cabarets — and Karpod Inc., the owner of an Amarillo club, sued the state over the fee.
It’s unclear though whether strip clubs will immediately stop collecting the fee. The state could appeal.
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April 2, 2007
Turner vows rebound on utility discount proposal
Rep. Sylvester Turner’s effort to restore electricity discounts for thousands of low-income Texans was delayed by a point of order in the Texas House on Monday, though Turner said he’ll retool the measure and bring it back soon.
“Not dead by a long shot,” the Houston Democrat said.
Rep. Robert Talton, R-Pasadena, derailed the proposal by invoking a House rule that restricts consideration of legislation diverting state funds until after lawmakers send a budget to the state comptroller and the comptroller certifies it — no earlier than the 119th day of each 140-day regular session.
Turner said he’ll fix the weakness exploited by Talton’s point of order by creating a dedicated account within the state budget.
Turner had proposed establishing a trust fund to corral dollars raised by a fee of about $1 levied on monthly electric bills. Utility discounts for low-income Texans were funded from the collected fees until 2003, when lawmakers shrunk the program. Members cut off the utility discounts entirely in 2005, with the fees’ revenue going to general budgetary purposes.
Turner seeks to bring the discounts back — adding in utility discounts for non-profit nursing homes as well.
Talton said he doesn’t think the fees should be collected at all. He said too that utilities are free to give discounts to customers, as it should be. “If I can vote for smaller government, it’s fine with me,” he said.
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