Adult Entertainment Licensing Act (California)

The California Adult Entertainment Licensing Act (AELA) is a state statute that governs and regulates the business of prostitution in California. The bill was passed by the California State Legislature and signed into law by the Governor of California, John Doe, on June 11, 2034, and revokes all previous legislation that criminalizes the act of prostitution in the state. The AELA provided for the establishment of the California Prostitution Regulatory Authority (CPRA), which has broad powers to issue, suspend and revoke licenses for Licensed Adult Entertainment Establishments and Licensed Sex Workers, administer proficiency and health testing, and generally regulate the industry as a whole.

Under the AELA, all licensed Sex Workers must be sponsored and employed by an approved Adult Entertainment Establishment. Operating an unlicensed sex business, including as an independent individual sex worker, is a serious criminal offense with severe penalties.

Sex Worker Licensing Regime

Under the AELA, any person who applies to become a Licensed Sex Worker must meet the following eligibility criteria:

Must be over the age of 18,
Must be a US citizen, legal permanent resident, or have the right to work legally in the US (e.g. an employment visa),
Must be medically fit and mentally sound;
Must pass the mandatory STD and drug tests;
Must currently be using (or must agree to use) an approved form of contraception;
Must be vaccinated against HIV;
Must have a valid offer of employment from a sponsor that is on the list of licensed Adult Entertainment Establishments.

If a new applicant meets all of the eligibility criteria, she will be granted a Probationary Sex Work License (PSWL) valid for three months. Thereafter, she must complete at least 240 hours of training supervised by an experienced Sex Worker who has held a Sex Work License for at least 3 years continuously, arranged by her sponsor. Colloquially, the trainee is referred to as an "understudy", while the supervisor is referred to as her "upperstudy".

Probation and Training Period

During the probation and training period, a PSWL holder must be provided with vocational education covering safety, client interactions, and service quality. She may be required to service clients in order to gain practical experience, however, all client interactions must be conducted in the presence of her "upperstudy", and with full disclosure to the client that she is still undergoing training.

A PSWL holder cannot service clients on her own, and cannot receive any pay for servicing clients as part of her practical training. Her sponsoring establishment may charge the client a maximum of $50 per hour (in addition to the usual charges for the services of the "upperstudy") to cover the costs of her training as well as her base salary (typically the legally mandated minimum of $1,272 per month).

Following the completion of her 240 hours, the PSWL holder must schedule and attend a final assessment at the AELA. She must also pass the standardized Sex Worker Individual Proficiency Test (SWIFT). The fees for the final assessment are $435, plus $220 for the SWIFT Test. Following the successful completion of these steps, she will be granted a full Sex Work License, valid for 12 months and renewable indefinitely. The license holder must take and pass the SWIFT Test as a condition for each renewal.

If an applicant fails to pass her final assessment and/or SWIFT Test prior to the expiration date of her PSWL, she will be given an additional 30 days to reattempt and pass. If she still fails to pass both tests by the end of this time extension, she will have to re-apply for a PSWL and repeat the probation period.

Rules for Licensed Sex Workers

The AELA sets out a clear framework for the management of Licensed Sex Workers:

Licensed Sex Workers must be paid a minimum base salary of $1,272 per month. In addition, they must be paid a minimum 22% share of all revenues accrued to their sponsor from their services.
Licensed Sex Workers may work for a maximum of 70 hours per week (inclusive of idle time). Outside of this, they may be required to undergo up to 4 hours of on-the-job training per month.
A Licensed Sex Worker must provide sexual services to any person duly authorized by her employer within business hours; she is giving implied consent by virtue of entering into her employment contract. Refusing to do so constitutes grounds for termination of her sponsorship and thus, the loss of her license.
Sexual services may be provided only on the sponsor's officially registered premises. In order to attend outcalls, a separate Travel Valet license is required.
All Licensed Sex Workers must consume Pre-Exposure Prophylaxis (PrEP). They must also undergo testing for HIV, syphilis, gonorrhea and chlamydia at least twice per week. Failure to do so can result in penalties for both the sex worker and her sponsor. Any sex worker who transmits an STD may have her license suspended or revoked.
All Licensed Sex Workers must utilize an approved form of contraception. Failure to do so can result in penalties for both the sex worker and her sponsor.
Licensed Sex Workers are subject to a special tax of 8.5% of their net wages (inclusive of both base salary and variable pay) levied on top of their regular federal and state income tax.