Added Fee for Sexually Oriented Businesses.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1121

Short Title: Added Fee for Sexually Oriented Businesses. (Public)
Sponsors: Representatives Riddell, Cotham, Johnson-Hostler, and Scott (Primary
Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Judiciary 1, if favorable, Finance, if favorable, Rules, Calendar, and Operations of
the House
April 30, 2026
*H1121-v-1*
A BILL TO BE ENTITLED 1
AN ACT IMPOSING A FEE ON SEXUALLY ORIENTED BUSINESSES. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. Chapter 105 of the General Statutes is amended by adding a new 4
Article to read: 5
"Article 2F. 6
"Sexually Oriented Businesses. 7
"§ 105-113.130. Address adverse secondary impacts. 8
(a) Findings. – The General Assembly finds that sexually oriented businesses that 9
combine nudity with the aggravating factor of alcohol can and do cause secondary harmful effects 10
on the public 's health, safety, and welfare. The General Assembly further finds that a nominal 11
fee imposed on these businesses, pursuant to the State 's police powers, to be used to combat or 12
ameliorate adverse secondary impacts, which is not aimed at any expressive content, is consistent 13
with the federal constitutional protection afforded to nonobscene but sexually explicit speech. 14
(b) Definitions. – The following definitions apply in this Article: 15
(1) Department. – The Department of Revenue. 16
(2) Secretary. – The Secretary of the Department of Revenue. 17
(3) Sexually oriented business. – As defined in G.S. 160D-902(f). 18
(c) Fee Imposed. – A fee of ten dollars ($10.00) for each entry by each customer is 19
imposed on every sexually oriented business in the State that holds a n alcohol permit issued 20
under Chapter 18B of the General Statutes. No sexually oriented business shall be required to 21
impose the fee required by this subsection on any customer of the business. The fee imposed by 22
this subsection shall be in addition to any other applicable fees and taxes imposed by law. 23
(d) Remission of Fee; Report. – Each sexually oriented business shall, on a quarterly 24
basis, remit the fee imposed under this section to the Department in the manner prescribed by the 25
Secretary and shall fil e a report with the Department in the manner and containing the 26
information required by the Secretary. 27
(e) Records. – Each sexually oriented business shall record on a daily basis in the manner 28
required by the Department the number of customers admitted to the business. Each sexually 29
oriented business shall maintain these records for the time period required by the Department and 30
shall make the records available for inspection and audit upon request by the Department. The 31
records shall not contain the names or personal information of any customer and shall not be used 32
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1121-First Edition
by the Department for any purpose except to verify the infor mation provided by the business as 1
required by this section. 2
(f) Distribution and Use. – The fees collected pursuant to this section shall be deposited 3
in the Sexual Assault and Rape Crisis Center Fund established in G.S. 143B-394.21. The fees 4
deposited in the Fund shall be used by the North Carolina Council for Women in accordance with 5
the provisions of G.S. 143B-394.21. 6
(g) Annual Report. – On or before September 1 of each year, the North Carolina Council 7
for Women, in consultation with the Department, shall submit a report to the Joint Legislative 8
Oversight Committee on General Government and the Fiscal Research Division on all of the 9
following for the current fiscal year and the prior fiscal year: 10
(1) The total amount of fees collected pursuant to this section. 11
(2) The recipients of the fees collected pursuant to this section, including the date 12
and amount of the disburs ements, from the Sexual Assault and Rape Crisis 13
Center Fund." 14
SECTION 2. This act becomes effective October 1, 2026. 15