www.acenational.org Email: ACE@ACENATIONAL.ORG 4340 Beechwood Lake Dr.

Naples, Florida 34112 (216) 965-7527

National Newsletter
March 10, 2005 Volume 4 Number 5
Board of Directors 
Scott Burch President Burch Management David Fairchild Secretary The Men's Club Corp. Jerry Reid Treasurer Pure Gold Club Chain Chip Walker Red Barn & Odyssey Ent. David "Slim" Baucom MAL Entertainment Jerry Westlund Fantasy Castle Don "Weasel" DalPonte Weasel's Showclub Dennis DeGori Scores of Chicago Rob Katzman Toychest/Katzman Ent. Eric Langan Rick's Cabaret Jim St. John Deja Vu Consulting Don Waitt E.D. Publications Micheal Ocello PT's Showclub Chain Glenn Smith Imperial Showgirls Jeff Willis Viva La Fox Cabaret ACE National Director: Angelina Spencer Naples, FL FALA Advisory Board Alan Begner Atlanta GA Jamie Benjamin Ft. Lauderdale FL Allan Rubin Detroit MI Jeffrey Douglas Los Angeles CA Luke Lirot Tampa FL Brad Shafer Detroit MI H. Louis Sirkin Cincinnatti OH Randall Tigue Minn. MI John Weston Los Angeles, CA Daniel Aaronson Ft. Lauderdale FL Michael Murray Cleveland, Ohio

Sin, Obscenity & Politics: Evangelicals Promote Biblical Agenda Under Cover of Attorney General
According to AP Newswire, Attorney General Alberto Gonzales declared war on adult entertainment when he pledged to seek out and prosecute obscenity cases. "Why is he wasting limited government resources on trying to prove legal adult entertainment is obscenity when there is so much work to be done on combating child pornography?" asked Joan Irvine, Executive Director of the Association of Adult Sites Advocating Child Protection (ASACP). The answer could be as easy as looking at religious organizations. ACE recently discovered that many groups, like the CCV (www.ccv.org) are encouraging Evangelicals to contact Gonzales through their websites and urge him to attack adult entertainment, not on merits of obscenity law but rather it would seem Biblical law. "Instead of alienating and prosecuting the adult entertainment industry, Gonzales could be working with the industry," Irvine continued. “Everyone in this industry is against child pornography…” ASACP sends "Red Flag Reports" to the FBI, the National Center for Missing and Exploited Children, and state Attorney General offices. For years, the adult entertainment industry has been on the cutting edge of business by informing government agencies and other associations about the industry's proactive approach to self-regulation and its stance in the fight again child pornography. Andrew Oosterbaan, head of the Justice Department's Child Exploitation & Obscenity Section, was responsible for over 200 arrests of child porn producers and users as part of 2001's Operation Avalanche, but was condemned by Evangelicals and the Family Research Council as "anything but aggressive ... prosecuting only a few, mostly insignificant cases" because he hasn't targeted adult entertainment. "Instead of pouring tax dollars down the drain to harass legitimate businesses that create legal adult entertainment for consenting adults, Gonzales should be investing his time, funding, and staffing in the prosecution of illegal child pornography," stated Michelle L. Freridge, Executive Director of the Free Speech Coalition."In keeping with our long-standing policy condemning the sexual abuse of children, FSC offers a reward of up to $10,000 for information leading to the arrest and conviction of persons creating or trafficking in child pornography." Joan Irvine will be speaking on this topic at the next FSC meeting, Thursday, March 17, at 5:30 PM at the Warner Center Marriott in Woodland Hills, California. To RSVP, contact Neva Chevalier at FSC (818) 348-9373.

www.acenational.org Email: ACE@ACENATIONAL.ORG 4340 Beechwood Lake Dr. Naples, Florida 34112 (216) 965-7527

National Newsletter
March 10, 2005 Volume 4 Number 5
ACE National Welcomes New Board Member Mr. John Gray, chairman and CEO of the Spearmint Rhino Corporation is the newest member of the ACE National Board. Mr. Gray returns to ACE National after a hiatus and explains: “We’ve sat back and watched ACE for a while. We are very pleased with its direction and the professionalism we’ve witnessed during the last couple of years. The members of the board are some of the best in this business and I’m pleased to be part of that process. We will be more involved.” Gray owned Public Works Construction Company and 9 nightclubs from 1977 to 1989 when he became CEO of Spearmint Rhino, Worldwide Inc. He also attended Western State University of Law in California. He resides with wife Dyanna Lauren and 6 year old daughter in Newport Beach, California, maintaining additional residences in Arizona and England. ACE National offers him a hearty welcome and looks forward to his participation with our organization. Kentucky is Newest ACE State Chapter Kentucky has formed KACE (Kentucky Association of Club Executives). Mr. Jeffery Willis of La Foxx Club Group and an ACE National Board Member is acting as the interim president. The decision was made to form this chapter at the urging of ACE Advisory Attorney Lou Sirkin, who is battling a number of cases in the state. One of the most pertinent cases stems from a Northern Kentucky Tri-County Ordinance that could potentially affect clubs in Michigan, Ohio, Kentucky and Tennessee. The ordinance encompasses three counties and requires manager and dancer licensing and fees, an ID card, a $3000 per year club licensing fee, and penalty points not to mention restrictive clothing and distance requirements for entertainers. The first meeting of KACE will be held Monday, April 11 at 5pm in the Embassy Suites on Newtown Pike St. in Lexington, Kentucky. The four small clubs battling this Tri-County Ordinance have taken a financial beating fighting this ordinance on your behalf. They are in need of aid. Please contact Jeff for more information about the meeting or how you can help: 1-859-448-9144. Great PR, Civic Responsibility & Political Education Can be Yours! ACE National has designed appealing high gloss posters for your club. The posters are free for ACE Members who wish to promote the SAFE Act. The SAFE Act is a bipartisan sponsored bill making its way through Congress. It replaces privacy provisions that Article 215 of the Patriot Act took away after 9/11. In other words, it repeals the government’s right to rifle through your files, email, credit transactions and accounts without probable cause or even notification. The posters encourage patrons and staff to log on to a website that will email Congressional representatives and senators. The entire online process takes only a minute or two. To request posters please email: angelina001@comcast.net or call 1-216-965-7527 and provide number of posters desired and shipping information.

BOARD  MEETING:  Date: Monday 08/25/05 5pm LOCATION: The Mandalay Bay Board Room Las Vegas, NV The Sites Have It! Uphold your privacy rights: www.nostrippinglibe rty.org See the latest State Bill Tracking: www.acenational.org Online Alcohol Certification for your staff: www.acenational.org Weekly CCV Talk Radio Puts Politics & Values in Action: www.ccv.org Emergency FYI! Oklahoma’s Sin Tax has passed in the House

National Newsletter
March 10, 2005 Volume 4 Number 5 Around the World in Adult Entertainment
Washington D.C.: The Following Appears compliments of Fee Speech Xpress:
West Virginia’s outspoken Democratic Senator Robert C. Byrd clearly does not see the Senate’s role in judicial nominations as “a broken process that must be fixed.” (See report above.) Byrd recently made a speech on the Senate floor comparing Republican proposals that would limit debate in the Senate on judicial nominees to Hitler’s tactics used to gain power in Nazi Germany. Conservatives who favor the new rules are, as one might suppose, livid over being compared to Nazis. However, the proposed rules change could lead to a scary consolidation of power. “Without the filibuster or the threat of extended debate,” argues Byrd, “there exists no leverage with which to bargain for the offering of an amendment. All force to effect compromise between the parties will be lost. Demands for hearings will languish. The President of the United States can simply rule by Executive order, if his party controls both Houses of Congress and majority rule reigns supreme. In such a world, the minority will be crushed, the power of dissenting views will be diminished, and freedom of speech will be attenuated…. This is a question of freedom of speech. That is what we are talking about -- freedom of speech. And the American spirit, that stubborn, feisty, contrarian, and glorious urge to loudly disagree, and proclaim, despite all opposition, what is honest, what is true, will be sorely manacled.”

Amen, Brother Byrd. Kansas: Kansas Senior Judge Ronald Innes has dismissed promoting obscenity charges against the
Lion’s Den Adult Superstore here. The case was highly politicized, with the original indictments coming from a grand jury impaneled after Citizens for Strengthening Community Virtues (aided by the American Family Association) gathered enough voter signatures to force a summons. Now it seems the signature gathering process was a bit flawed. Judge Innes ruled that the petition calling for the grand jury was not in compliance with state law, because information showing the voting place information of signers was added later by others. MO ACE Meeting March 10, 2005 - directions

Missouri: The next meeting of MACE will be held Thursday, March 10 2PM at the
Holiday Inn Select Executive Center - Exposition Center 2200 Interstate 70 Drive Southwest Columbia, MO 65203 573-445-8531. This important meeting will address Senate Bill 32 and other concerns of the adult entertainment industry. Please attend this very important meeting if you are a MO club owner, retail/bookstore owner or club executive.

Texas: The next TEA (Texas Entertainment Association) meeting is scheduled for 2pm Wednesday,
March 9 at Mezzaluna Restaurant located at 310 Colorado St. Topics: Legislative Update from Lobbyist and the proposed 26% sales tax on liquor. For additional information please call Mr. Scott Burch @: 214236-1944.

National Newsletter
March 10, 2005 Volume 4 Number 5
Industry Provider Benefits
1. Global Direct Credit Card Processing is a company that has developed a program exclusively for members of ACE. The program basically cuts out the middle man and spares you a dial up fee, may lower your points per transaction and does away with equipment and bank statement fees. The program has already saved some of our board members thousands of dollars per year. If you'd like, please contact David Baucom of MAL Entertainment @ 1-704-578-6003. He is a club owner who has participated in the program for a while and is very pleased. You may also have one of your staff contact Amy Dacus of Global directly for more information: 704-376-9450. Attention State Chapters! Global is more than happy to send free information about their program to your next ACE Meeting. 2. Acordia Insurance, a Wells Fargo Company, has built an A rated comprehensive insurance program for ACE Members. What makes this program so exciting for ACE members is not only that it provides a very broad form Property and General Liability package at extremely competitive rates, but most importantly that the package automatically includes Assault & Battery at full policy limits, and with no additional premium. We are also pleased to announce that this program can provide Liquor Liability coverage with a $1,000,000 limit. Other program highlights are: General Liability limits of $1,000,000 each Occurrence and $2,000,000 Aggregate, optional Employee Benefits Liability, and Excess Umbrella Liability of $10,000,000 directly from the carrier. Limits of liability in excess of $10,000,000 are also available. Please contact Larry Jasen, Vice President Acordia, 90 Park Avenue, 3rd Floor, New York, NY 10016-1302 Voice: 1-212-682-7500 ext. 228 Toll Free: 1-800-982-2125 or email: larry_jasen@acordia.com 3. BMI, Broadcast Music Inc. Service can save ACE Members up to 20% off their music licensing fees. Learn how the ACE/BMI program can save you money by contacting Mr. Mike Driskell mdriskill@bmi.com or 615-401-2894. 4. Learn2Serve is an online alcohol certification program that may be used to train your staff about alcohol service to customers. Some states require alcohol certification programs for bartenders and servers while others don’t. However, ACE has been informed by its advisory attorneys that most alcohol clubs might benefit from this inexpensive class ($25 per student) because it may provide a credible argument against liquor liability claims. For more information or to take the class log on: www.acenational.org