If I recall correctly, in Pennsylvania the government does own the shops that sell liquor, and most states run lotteries, so there's certainly precedent for governments being the ones in the vice business.

That's besides the point though because this legislation doesn't check people's IDs when they're trying to purchase porn or alcohol, but as soon as they walk out the door, and if they refuse to show it, they have someone following then around even if they just go to the ATM and to the doctor.