CITY OF

HERMOSA BEACH

MUNICIPAL CODE ON-LINE

BUSINESS LICENSES AND REGULATIONS

Chapter 5.24

CHARITABLE SOLICITATIONS

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	5.24.010	Definitions.
	5.24.020	Exemptions.
	5.24.030	Certificate of registration required for charitable solicitations.
	5.24.040	Registration statement.
	5.24.050	Information required in registration statement.
	5.24.060	Registration fee.
	5.24.070	Issuance of certificate of registration.
	5.24.080	Form of certificate of registration.
	5.24.090	Solicitors' identification cards.
	5.24.100	Expiration of certificate of registration.
	5.24.110	Renewal of permits.
	5.24.120	Filing of financial statement within specified time of termination of solicitation.
	5.24.130	Nontransferability of certificate of registration.
	5.24.140	Limitations on manner of solicitations.
	5.24.150	Denial of registration statement.
	5.24.160	Revocation of registration certificate.
	5.24.170	Appeals to the city council.
	5.24.180	Receipts.
	5.24.190	Authority of the city manager.
	5.24.200	Public disclosure.
	5.24.210	Violation --Penalty.

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5.24. 010 Definitions.

As used in this chapter:

"Charitable purpose" means philanthropic, religious or other nonprofit objective, including the benefit of poor, sick, needy, refugee or handicapped person; the benefit of any church or religious society, sect, group or order; the benefit of a patriotic or veteran association or organization; the benefit of any fraternal, social or civic organization, or the benefit of any educational institution.

"Charitable purpose" shall not mean or include the direct benefit of the individual making the solicitation or the direct or indirect benefit of any specific or identifiable individual.

"Charitable purpose" shall not mean or include the direct benefit of any political group or political organization which is subject to financial disclosure under state or federal law.

"City manager" means and includes the person exercising that function or any city employee designated by the city manager to perform such functions hereunder.

"Contribution" means and includes the words alms, food, clothing, money, property, subscription or pledge, and also subscription or pledge and also donations or sales under the guise of loans of money or property.

"Individual" means only a natural person.

"Person" means and includes any natural person, firm, partnership, corporation, company, association, society, organization, church congregation, assembly or league and shall include any receiver, trustee, assignee, agent, employee or other similar representative thereof.

"Solicit" or "solicitation" means:

1. Any request directly or indirectly, for the donation of money, credit, property, financial assistance or other things of value;
2. The selling or offering for sale of any property, real or personal, tangible or intangible, whether of value or not, including but not limited to goods, books, pamphlets, tickets, rights to admission to any amusement, show, entertainment, lecture or other enterprise not regularly carried on for private profit or gain by the person for or by whom the solicitation is being made at a fixed place of business within the city, publications or brochures; or
3. The selling or offering for sale of any service, upon the representation, express or implied, that the donations or proceeds of any such sale will be used for a charitable purpose as that term is defined herein.

This chapter shall apply to any solicitation conducted door to door, in any place of public accommodation, in any place of business open to the public generally on the city streets and sidewalks, in the public parks, or in any public place, and conducted by:

1. Oral or written request; or
2. The local distribution, circulation, posting or publishing of any handbill, written advertisement or other local publication.

A "solicitation" as that term is defined above is deemed to have taken place when the request for offer for sale is communicated to any person then located within the city limits.

(Prior code § 17-28.1)

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5.24. 020 Exemptions.

The provisions of this chapter shall not apply to the following:

A. Charitable solicitations by persons other than a natural person from their members;

B. Charitable solicitations by a person when such solicitation occurs on premises not open to the public generally and owned or controlled by the person making the solicitation or when such solicitation occurs with the permission of the person who owns or controls such premises;

C. The issuance of any announcement or advertisement that such solicitation as described in subsections A and B of this section will occur or which announces or advertises an event at which unannounced solicitation as described in subsections A and B of this section occurs;

D. Charitable solicitations made through the United States mail. (Prior code § 17-28.2)

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5.24. 030 Certificate of registration required for charitable solicitations.

No person, directly or indirectly, shall make any charitable solicitation or authorize any other person to make any charitable solicitation within the city until such person shall have first obtained a certification of registration from the city manager as provided in this chapter. (Prior code § 17-28.3)

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5.24. 040 Registration statement.

All persons desiring to solicit for charitable purposes in the city shall file with the city manager a registration statement on forms provided by the city manager. Such registration statements shall be sworn to or affirmed and filed with the city manager not less than ten days prior to the time at which the solicitation is to commence; provided, however, the city manager, for good cause shown, may allow such filing less than ten days prior to the commencement of the solicitation. (Prior code § 17-28.4)

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5.24. 050 Information required in registration statement.

The following information shall be required in the registration statement:

A. The name of the person registering and desiring to solicit for charitable purposes;

B. Whether the person registering is a natural person, partnership, corporation, association or any other classification set forth in Section 5.24.010;

C. If the person registering is a natural person, the business or residence address and telephone number of the person;

D. If the person registering is other than a natural person:

1. The address and telephone number of the principal place of business of the person,
2. The names, business or residence addresses and business or residence telephone numbers of the officers, executives, partners and directors, as each of those terms applies to the person;

E. A brief description by the person registering of the charitable purpose for which the solicitation is to be made, and an explanation of the intended use of the contributions received from the solicitation toward that charitable purpose;

F. The names of all individuals authorized to disburse the proceeds of the solicitation;

G. The names, addresses and telephone numbers of all individuals who will be in direct charge or control of the solicitation;

H. For all individuals named in subsections C, D(2), F and G of this section:

1. Whether such individuals have ever been convicted of a felony or any crime involving moral turpitude, and if so, the date of the conviction and the crime for which such individuals were convicted, and
2. The date of birth and physical descriptions (height, weight, color of eyes and hair) of such individuals. This information may be used by the city to make further investigations into the backgrounds of these individuals. Any information obtained thereby shall become a public record as provided in Section 5.24.200;

I. The time period within which the solicitation is to be made, giving the dates of commencement of the solicitation and the scheduled or anticipated conclusion;

J. A description of the method and means by which the solicitation will be made or conducted;

K. The total amount sought to be raised by the solicitation;

L. An estimation of the expenses to be incurred in connection with the solicitation and the disbursement of the contribution received therefrom, including but not limited to salaries, wages, fees, commissions and other administrative expenses and costs; and an estimated percentage of the total anticipated contributions received from the solicitation which will be used to pay such expenses;

M. A statement of all contributions collected or received by the person through solicitations within the calendar year immediately preceding the date of the filing of the registration statement, and the expenditure or use made of such contributions, including, but not limited to the percentage of the amount collected which was used to pay administrative expenses of the person, and all compensation paid during the last calendar year by the soliciting organization to each of the individuals who are listed in this section;

N. The names of any other cities in which the person registering has solicited for charitable purposes within the past five years; provided, however, that if the number of cities exceeds ten, the person registering may list the ten cities in which the most recent solicitations occurred;

O. A statement to the effect that upon receipt of the certificate of registration, such certificate will not be used or represented in any way as an endorsement by the city or any of its departments, officers or employees;

P. What records of the contributions received from the solicitation will be kept and the location where, and time when, these records will be opened to the public;

Q. A statement, signed under penalty of perjury by:

1. The registrant, if the person registering is a natural person; or
2. The individual charged with disbursing the contributions solicited, if the person registering is other than a natural person, as the term "person" is defined in Section 5.24.010, that such individual has carefully read the registration statement and that all the information contained therein is true and correct. (Prior code § 17-28.5)

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5.24. 060 Registration fee.

Every registration statement shall be accompanied by a registration fee of five dollars ($5.00) to compensate the city for the cost of administering this chapter, and such fee is not refundable if the certificate of registration is not issued. (Prior code § 17-28.6)

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5.24. 070 Issuance of certificate of registration.

A. After a review of the registration statement to determine its compliance with Section 5.24.050, the city manager shall within ten days either issue a certificate of registration as provided in this chapter, or notify the person registering that the statement does not comply with Section 5.24.050 and specifically point out what information or explanation has not been furnished that is required to be furnished before a certificate of registration can be issued. Upon the furnishing of the information or explanation necessary to bring the registration statement into compliance with Section 5.24.050, the city manager shall issue a certificate of registration.

B. In the event the city manager fails to act within the time prescribed in subsection A of this section, the certificate of registration shall be deemed to be issued.

C. No certificate of registration shall be issued by the city manager if the person registering fails to provide the information on the registration statement as required by Section 5.24.050. (Prior code § 17-28.7)

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5.24. 080 Form of certificate of registration .

Certificates of registration issued under this chapter shall bear the name and address of the person to whom the certificate is issued, the registration number which is the same as the file containing the registration statement filed by the registrant, the date of issuance of the certificate, the expiration date of the certificate and a statement that the certificate does not constitute an endorsement by the city or any of its departments, officers or employees of the purpose of, or for the person conducting, the solicitation. (Prior code § 17-28.8)

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5.24. 090 Solicitors' identification cards.

A. All individuals soliciting on behalf of a person to whom a certificate of registration has been issued shall visibly display a solicitors' identification card to any person or persons to whom the solicitation is made prior to making the solicitation.

B. The identification card shall contain the following information:

1. The name of the person to whom the certificate of registration is issued;
2. The registration number;
3. The name of the solicitor;
4. The expiration date of the certificate of registration;
5. A statement of the charitable purpose for which the solicitation is made;
6. The percentage of total anticipated contributions received from the solicitation which will be used to further the charitable purpose;
7. A statement that the registration statement relative to the solicitation is available for inspection by members of the public at the city manager's office during regular business hours;
8. A statement that the identification card is not an endorsement of the solicitation by the city or any of its departments, officers or employees.

C. The person registering shall provide, by a separate list, the names and addresses of all agents, employees, or solicitors for whom identification cards are desired. For all such individuals, the person registering shall also provide all information required to be disclosed under Section 5.24.050(H)(1) and (2). All such information shall become a public record as provided in Section 5.24.050. The city manager shall issue up to ten identification cards with the certificate of registration without any additional charge. The registrant may obtain additional cards by paying to the city its actual cost for such cards. (Prior code § 17-28.9)

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5.24. 100 Expiration of certificate of registration.

Every certificate of registration and identification issued thereunder shall expire at the termination of the solicitation period specified in the registration statement or one year from the date of issuance, whichever is less, unless renewed pursuant to Section 5.24.110 or revoked pursuant to Section 5.24.160. (Prior code § 17-28.10)

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5.24. 110 Renewal of permits.

A. On the expiration of any certificate and if requested on writing to do so, the city manager shall renew the permit within ten days after such request if the registrant states, under penalty of perjury, that:

1. No change in the information provided in the registration statement has occurred since the issuance of the original certificate;
2. The registrant has complied or intends to comply with Section 5.24.120 regarding the filing of a closing financial statement; and
3. The registrant has not violated any of the provisions of this chapter.

B. Any renewal, if granted, shall expire six months after the date upon which such renewal was granted. (Prior code § 17-28.11)

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5.24. 120 Filing of financial statement within specified time of termination of solicitation.

A. Not later than thirty (30) days from the expiration of the certificate of registration, the person registering shall file with the city manager, on forms provided by the city manager, a closing statement regarding the solicitation of funds, which shall be a sworn financial statement showing the total funds collected form the solicitation and the purpose and amount for which such funds were disbursed by the person registering and any incurred but unpaid expenses resulting from the solicitation.

B. In the event a renewal of the certificate of registration is granted to the registrant, such renewal shall not relive the registrant form complying with the requirements of this section. The registrant shall continue to be required to file a closing financial statement at the expiration of the original certificate of registration and an additional closing financial statement at the expiration of the renewal period, relative to solicitations made within that renewal period. (Prior code § 17-28.12)

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5.24. 130 Nontransferability of certificate of registration.

No certificate of registration issued under this chapter shall be transferred or assigned and any such attempt to make such transfer or assignment shall be void. (Prior code § 17-28.13)

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5.24. 140 Limitations on manner of solicitations.

No person to whom a registration statement is issued pursuant to this chapter or any of its employees, agents or solicitors shall:

A. Solicit between the hours of seven p.m. and nine a.m.;

B. Solicit or authorize solicitations to be made if such solicitor, employee or agent making the solicitation is under the age of sixteen (16) years, unless such solicitor is supervised by an adult in the immediate vicinity not to exceed one street block;

C. Solicit at any house, apartment or other dwelling or any business premises to which is affixed a sign indicating "No Solicitors" or similar indication that no solicitation contact is desired by the occupant thereof;

D. Persistently and importunately request any contribution from any member of the public after such member of the public expresses the desire not to contribute;

E. Intentionally and deliberately obstruct the free movement of any person on any street, sidewalk or other public place or any place open to the public generally. (Prior code § 17-28.14)

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5.24. 150 Denial of registration statement.

In the event the city manager denies a certificate of registration to any person for failure to comply with Section 5.24.050, the city manager shall give the registrant a written notice, stating with specificity the reasons for such denial, including proof that the city manager notified the registrant of the deficiencies of the registration statement prior to such denial. (Prior code § 17-28.15)

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5.24. 160 Revocation of registration certificate.

A. Whenever it shall be shown that any person to whom a registration certificate has been issued or any person soliciting on behalf of such certificate holder has violated Section 5.24.090 by failing to visibly display the solicitor's identification card prior to making the solicitation, Section 5.24.130 by attempting to assign or transfer the certificate of registration, Section 5.24.130 by soliciting in any manner prohibited thereunder, or Section 5.24.180 by failing to provide the contributor with a receipt as required thereunder, the city manager shall revoke the registration certificate; provided, however, that the city manager must, prior to such revocation, give written notice to the certificate holder of not less than two business days. Delivery of such notice shall be in person or by registered/ certified mail to the address of the certificate holder as listed on the registration statement.

B. The notice of revocation shall state with specificity the reason or reasons for the revocation, and shall also set forth the method by which the registrant may appeal the city manager's action to the city council as set forth in Section 5.24.170.

C. In the event a person's certificate of registration is revoked pursuant to subsection A of this section, such revocation shall be treated as an expiration of the certificate for purposes of requiring the registrant to file a closing financial statement thirty (30) days after the date of revocation, as set forth in Section 5.24.120. (Prior code § 17-28.16)

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5.24. 170 Appeals to the city council.

A. Any applicant for a certificate of registration or certificate holder aggrieved by any action of the city manager to deny, revoke or refuse to renew a certificate may appeal to the city council by filing with the city clerk a statement addressed to the city council setting forth the facts and circumstances regarding the action of the city manager. Such appeal shall be filed within ten days after the disputed action of the city manager, and the city council shall hear the appeal at its next regular meeting after the filing of the appeal. At the time of appeal hearing, the city council shall hear all relevant evidence and shall determine the merits of the appeal and render a decision thereon within three business days after the hearing.

B. In the event the city council affirms the decision of the city manager, the appellant shall be given written notice thereof within two days thereafter. Such notice shall state with specificity the reasons for the city council's decision, and shall also state that such decision is appealable to the Superior Court of the state as set forth in subsection C of this section.

C. The action of the city council shall be final and appealable to the Superior Court of the state. (Prior code § 17-28.17)

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5.24. 180 Receipts.

Any person receiving money or anything of value in excess of five dollars ($5.00) from any contributors as a result of a solicitation made pursuant to this chapter shall give each such contributor a written receipt signed by the solicitor showing plainly the name and the certificate number of the person under whose certificate the solicitation is made, the date of receipt of the contribution, and the amount received; provided, however, that this section shall not apply to any contribution collected by means of a closed box or receptacle where it is impractical to determine the amount of such contribution. (Prior code § 17-28.18)

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5.24. 190 Authority of the city manager.

Nothing set forth in this chapter shall be construed as granting to the city manager or any other person the authority or discretion to issue, deny, revoke or renew any certificate of registration by reason of disapproval or agreement with the philosophy, opinion or belief of the applicant, certificate holder or person soliciting therefor, or by reason of disbelief in the charitable purposes of the person seeking to solicit pursuant to this chapter or for any other reason not specifically provided for in this chapter. (Prior code § 17-28.19)

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5.24. 200 Public disclosure.

All registration statements filed with the city manager and all information obtained by the city pursuant to Sections 5.24.050(H)(2) and 5.24.090(C), whether or not a certificate of registration has been issued, shall be a public record and shall be available for inspection by members of the public during regular business hours, and copies may be obtained at the regular cost for copies of other public records. The city manager is authorized to cause such information to be published as a public notice in the local newspaper or posted within the city limits if such publication or posting is determined by the city manager to be necessary in order to provide full and complete disclosure to members of the public. (Prior code § 17-28.20)

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5.24. 210 Violation--Penalty.

Any person, as defined in section 5.24.010, or any agent, servant, employee, officer or solicitor thereof, violating any provision of this chapter, or who aids or abets in the procuring of a violation of any provision, part or portion of this chapter, or who files or causes to be filed a registration statement containing false or fraudulent statements of fact shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than five hundred dollars ($500.00) for each offense, or undergo imprisonment for not more than six months, or both. Each violation shall be deemed a separate offense and shall be punishable as such. (Prior code § 17-28.21)

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