I'm not sure I would even go as far as the state government. Make it a purely local issue. Of a community allows it, make it highly controlled, with frequent health inspections, local taxes, local protection for the workers. Personally, I don't see it as any more immoral than in selling your services as a plumber, electrician or doctor. And if it can generate tax income for the community, why not? You can't eliminate it anyway. All you can do is drive it underground, which benefits the pimps and endangers the prostitutes. Keeping it legal, with proper controls and oversight, is better for everyone.