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An Assessment of the Adult Entertainment Industry in Texas COMPREHENSIVE REPORT Final Report • March 2009

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An Assessment of the Adult Entertainment Industry in Texas COMPREHENSIVE REPORT Final Report • March 2009 An Assessment of the Adult Entertainment Industry in Texas COMPREHENSIVE REPORT Final Report • March 2009 Prepared in partial fulfillment of House Bill 1751 directives from the 80th Texas Legislature Prepared by: The Bureau of Business Research, IC² Institute, and the Institute on Domestic Violence and Sexual Assault of THE UNIVERSITY OF TEXAS AT AUSTIN An Assessment of the Adult Entertainment Industry in Texas COMPREHENSIVE REPORT Final Report • March 2009 >CONTENTS Acknowledgments ................................................................................................................................................... 4 Project Staff............................................................................................................................................................. 4 Executive Summary........................................................................................................................................... 5 Background and Significance................................................................................................................................. 5 Research Goals ....................................................................................................................................................... 5 Scope of Assessment.............................................................................................................................................. 6 Fieldwork................................................................................................................................................................10 Key Facts and Findings.........................................................................................................................................10 Recommendations and Options for Reform or Regulation.................................................................................15 Recommendations on AEF....................................................................................................................................15 Recommendations on Zoning and Enforcement.................................................................................................16 Recommendations for Future Research..............................................................................................................16 Options for Reform or Regulation.........................................................................................................................17 Zoning and Land Use ............................................................................................................................................17 Refinement of Existing Regulatory Procedures and Mechanisms .....................................................................17 New Actions ...........................................................................................................................................................17 Chapter 1 Descriptive Data ........................................................................................................................... 19 Clubs ......................................................................................................................................................................19 Taxes and Fees......................................................................................................................................................26 Statewide Economic Impacts of Adult Entertainment Clubs ..............................................................................30 Total Output, Total Employment...........................................................................................................................31 Video Stores and Bookstores ...............................................................................................................................32 Statewide Economic Impact: Adult Video Stores & Adult Bookstores...............................................................35 Key Findings ..........................................................................................................................................................36 Chapter 2 Analytical Data .............................................................................................................................. 39 The AEF in Perspective..........................................................................................................................................39 Three Hypotheses Related to Texas Adult Club Sales.........................................................................................40 Estimating the Impact on Taxes ...........................................................................................................................44 State Estimates of Other Industry Segments ......................................................................................................45 Key Findings ..........................................................................................................................................................48 An Assessment of the Adult Entertainment Industry in Texas Chapter 3 Infraction Data Analysis................................................................................................................ 49 Introduction ...........................................................................................................................................................49 Inspections ............................................................................................................................................................51 Complaints.............................................................................................................................................................52 Administrative Violations ......................................................................................................................................54 Fines.......................................................................................................................................................................56 Suspensions ..........................................................................................................................................................57 Criminal Violations ................................................................................................................................................57 Two sample t-Test .................................................................................................................................................59 Conclusions ...........................................................................................................................................................61 Chapter 4 Regulations in Other Jurisdictions................................................................................................ 63 State Government Measures Pertaining to the Industry ....................................................................................63 Local Government Ordinances for SOBs – Texas Cities & Counties ..................................................................68 Chapter 5 Recommendations and Options for Reform or Regulation.......................................................... 75 Recommendations on AEF....................................................................................................................................75 Recommendations on Zoning and Enforcement.................................................................................................75 Recommendations for Future Research..............................................................................................................76 Options for Reform or Regulation.........................................................................................................................77 Zoning and Land Use ............................................................................................................................................77 Refinement of Existing Regulatory Procedures and Mechanisms .....................................................................77 New Actions ...........................................................................................................................................................77 Appendix I Alcohol and Sexual Violence Literature Review........................................................................... 79 Introduction ...........................................................................................................................................................79 Sexual Violence against Women ..........................................................................................................................80 Alcohol and Violence.............................................................................................................................................82 Alcohol and Sexual Violence against Women......................................................................................................83 Alcohol, Sexual Violence and the Bar Setting......................................................................................................85 Sexually Oriented Businesses ..............................................................................................................................87 Female
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