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Tuesday, November 16, 2010

Strip Clubs Challenge Financial Impact of New Law

Posted By on Tue, Nov 16, 2010 at 12:14 PM

The new law bans strippers from appearing nude. They can't even wear thongs.
  • The new law bans strippers from appearing nude. They can't even wear thongs.
Attorneys for sexually oriented businesses argued yesterday in court in central Missouri that the state legislature violated its own rules in passing a strict new law on sexually-oriented businesses.

The law that went into effect in late August bans the sale and consumption of alcohol at strip clubs, requires them to close at midnight and prohibits dancers from appearing nude. Late this summer a group representing Missouri's adult nightclubs and bookstores filed suit against Attorney General Chris Koster arguing that the legislature did not consider the full financial impact of the law.

The general assembly is supposed to consider how much new laws will cost the state. As previously reported by Daily RFT, legislators estimated the strip-club law would cost the state just $100,000 in lost taxes.

Meanwhile, club owners argue that their businesses provide millions in tax revenue and much of that will be lost under the new law. We're told that five sexually-oriented businesses have already closed their doors because of the law.

The business owners are hoping a Cole County judge agrees with them and issues a summary judgment on the matter as early as the end of this week. Meanwhile, the club owners have filed another lawsuit in federal court arguing that the new law violates the First Amendment rights of dancers to express themselves.

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