Texas Holding $11.2 Million in Strip Club Fees

AUSTIN, Texas — The state Comptroller's Office is holding $11.2 million in fees collected from strip club patrons pending the action of an appeals court.

A $5 fee for strip club patrons was passed into law in 2007, with the money collected to fund sexual assault services in 54 Texas counties and health insurance programs. Last year, a judge struck down the law, saying that topless dancing was protected as free speech and that the state couldn't show a link between strip clubs and inadequate health insurance. The state has appealed, and the appeals court has not yet ruled.

Though the Texas Comptroller's Office continues to collect the fee, only some topless clubs are paying it. Some clubs have argued that collecting the money while the bill is under consideration in court is unfair and affects their cash flow as the economy slows. The $11.2 million collected is lower than the $40 million that legislative analysts projected in the law's first year.

Rep. Ellen Cohen, who authored the original 2007 bill, is pushing a new version this year, which drops the charge to $3 and sends all proceeds to sexual assault programs. Lawyers for the clubs say they'll take it to court if it passes.

"We will continue to fight until they stop filing unconstitutional legislation," said Stewart Whitehead, an attorney for the Texas Entertainment Association, which represents topless clubs in Texas. "These changes don't get them around the fact that they are taxing constitutionally protected speech."

R.J. DeSilva, a spokesman for Texas Comptroller Susan Combs, said if the strip club fee is upheld in the courts, businesses that do not collect the fee will face financial penalties. If the fee is overturned, he said, all collected money will be returned to the clubs.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AV Bulletin: Arizona's About-Face, What New Laws Mean for Adult

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the United States. In the meantime, state legislatures continue to weigh and pass AV bills, the U.K. and the EU are moving ahead with their own AV mandates and strategies, and legal challenges continue to play out in U.S. courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Fleshlight Debuts Ebony Mystique Stroker

Fleshlight has introduced its new Ebony Mystique Pro stroker, Goddess Land.

Sigafun Debuts AI Sex Doll

Pleasure brand Sigafun has introduced its first AI model to its Hybrid Series of sex dolls.

Lifelong Merchant Services Adds New Team Members

Point of Sale (POS) provider Lifelong Merchant Services has added industry veterans Megan Abbatelli and Cam Jennings to its team.

Male Power Adds 'Spartacus' to 'Fetish' Collection

Male Power has introduced the new Spartacus design to its Fetish collection.

FSC Addresses UK Age Verification Guidelines

The Free Speech Coalition (FSC) has published an article offering guidance on the U.K.'s Online Safety Act and the various guidelines put forward by the country's telecommunications regulator Ofcom.The article follows:

Orion Introduces New Vibrator From 'Javida' Line

Orion Wholesale has debuted the new 4-Function Vibrator from its Javida line.

European Commission Posts AV Guidelines, Seeks Feedback

The European Commission has made public its draft guidelines on protecting minors online under the Digital Services Act, including age verification requirements covering adult sites and platforms.

Momentum Management Launches 'Dynamo Wellness' Brand

Momentum Management has launched its new Dynamo Wellness brand.

Adam & Eve Reveals Results of 'Sex Dream' Survey

Adam & Eve has released the results of a survey asking respondents if they have ever had a sex dream.

Show More