SR-11-D (12)
-
Santa ~onlca, call~nla, March 15, 1978
:z- tJ 7J -~O t/
liD
TO:
Mayor and City ~ouncIl
AfAR 2 8 1978
FROM:
CIty Staff
SUBJECT: .\mendment to SolIcItatIon PermIt Ordinance
Introduction
ThIS report transmIts InformatIon regardIng a new SolIcitatIon PermIt
OrdInance pertaIning to charItable, patrIotIc, CiVIC and SImIlar
organIzatIons that would alter the current procedure for acquirIng
a SolIcItatIon PermIt, IncludIng the InstItutIon of a $50.00 applIcatIon
fee, and transfer the dutIes of admInIstration of SolIcItatIon PermIts
from the CIty Manager's Office to the License DIvIsion.
Background
Pursuant to an earlier request of the CIty Council, a staff report dated
AprIl 1, 1976, transmItted to CIty CouncIl an ordInance amendIng the
SolIcItatIon Permit procedure, whereby a $200 00 fee was charged for the
InItIal permIt and a SSO.OO fee for each permIt thereafter, and the
admInIstration of SolIcItatIon PermIts was to be transferred to the CIty
Clerk. The CouncIl had introductIon and fIrst readIng on the ordInance
on AprIl 13, 1976
EarlIer In November 1975, a laWSUIt entItled "International SocIety for
KrIshna ConSCIousness, Inc. vs George P. TIelsch, et all1 '''as flIed agaInst
the CIty.
ISKCOKalleged that Section 3336 of the Santa Monica MunIcIpal Code
(generally prohIbItIng all solicitatIon, sellIng and distrIbutIon in the
bUSIness dIstrIct) was unconstitutIonal. Furthermore, the plaIntIffs
liD
MAR 2 8 1978
TO:
Mayor and C~ty4ltuncl1
--
March 15, 1978
-2-
cla~med that Sect~on 6243 et seq. of the Santa MonIca Mun~clpal Code
(SolIcitation PermIt Procedure) could not be const~tutionally applIed
to rellg~ous groups.
The proposed ordInance was not brought back for second readIng and
adoptlon because of the pendency of thIS case.
Thereafter, on ~ay 20, 1976, the Superior Court issued a partlal judge-
ment as a step towards br~ngIng the dlspute to a conclUSlon.
The effects were.
1 Judge RIttenband dld not rule the ordInance unconstitulonal.
2. ISKCO~ was requIred to comply wlth the present Sollcltatlon
procedure despIte Its assert~ons to the contrary and the
C~ty was requlred to process a properly flIed appllcatlon and
Issue a SolIc1tatlon Permit;
3. Although the CIty was successful 1n defendIng the solIcitatIon
and handl~ng ordInances from constltut~onal attack, the City
IS afforded an opportunIty to amend the ordInance provlslons
by maklng them less suscept1ble to a successful constItutIonal
challenge 1n the future;
4. DespIte the broad Immun1tles from leglslative controls granted
to rel~glous groups under the FIrst Amendment of the United
States Constltutlon the Clty IS provIded WIth an occasion to
Impose reasonable regulatIons as to the tlme, place and manner
of sollcltation and handb1lling.
TO:
Mayor and City tlJnCIl
-
March 15, 1978
-3-
Current Procedure for ObtaInlng a SollcItatIon PermIt
As stIpulated by the ~mnIclpal Code, In order to obtaIn a SolIcitatIon
PermIt the sollcitor(s) for charltable, patrIotIC, ciVIl and SImIlar
organizations must fIle an applicatIon WIth the CIty ~anager's OffIce.
Once the applIcation IS flIed, the fOllOWIng procedure transplres:
1. The CIty ~anager submIts the completed applIcatIon to the
Pollce Department for lnvestlgatlon
2. The PolIce Department investIgates the InformatIon contaIned
in the applIcatIon and flIes a report WIth the CIty Manager
wIthln forty-flve days.
3. If after receIpt of the investIgatIon report from the PolIce
Department, the CIty Manager fInds that there 1S no substantlal
evidence of untruth or that a fraud would be perpetrated upon
the publlc, he must lssue the appllcant a SolICItatIon PermIt
for the perIod not exceed1ng SlX months from the date of lssuance.
Transfer of Sollcitatlon Perrnlt Responslblllty
Sollcitatlon permlts are very simIlar to bUSIness lIcenses presently
lssued by the LIcense Dlvlslon. In effect, SolICItatIon PermIts are
lIcenses to conduct bUSInesses withIn the CIty; the maJor dIfference
IS the manner In WhIch the generated funds are used. It would be more
effiCIent to place the responSIbIlIty of SolICItatIon Permlts WIth the
LIcense D1VIslon WhICh IS currently organized to prOVIde this servIce.
TO. Mayor and Clty~nc~l
-
March 15, 1978
-4-
ApplIcatIon Fees for SolIcItatIon Permits
~~lle there are currently no fees for Sol~cltatLon PermIts, the PolIce
Department has estImated that It takes between 1~ to 2 working days for
a detectlve to adequately InvestIgate and submIt a report wIth recommenda-
tIons concernIng the truthfulness of the informatIon listed on the
appllcatlon. The cost to the CIty for polIce personnel Involvement In
the investIgatIve process for each permIt ranges from ~50 00 to $250.00
dependIng upon the number of hours reqUIred.
Staff contacted nIneteen cItIes In Southern CalIfornIa as well as Los
Angeles County In order to fInd out what fees were charged for solICItation
permIts by these agencIes. SIX cItIes (Burbank, Compton, Costa Mesa, Downey,
Orange and SImi Valley) charged fees to non-profit organIzatIons for
solic~tation permIts. Fees ranged from $5.00 to $15.00.
Therefore, a maJor change Instituted by the attached ordInance summary IS
that a S50 00 appllicatIon fee be Imposed In order to partially offset
the expenses Incurred in the admInIstratIon and InvestIgatIon of solIc~ta-
tlon permIts. The recommended fee may be substantIally less than the
actual maXImum cost. Th~s fee IS recommended SInce the applIcants represent
relIgIOUS or charitable organIzatIons and causes. It IS antICIpated that the
TO
e
Mayor and CIty ~ouncll
--
}.larch 15, 1978
-5-
applIcatIon fee WIll generate approxImately $2,000 per year.
Summary of Proposed OrdInance
The proposed ordInance would dIffer from the current ordInance by these
maJor pOInts
1) defInIng a "rellglous" organIzatIon as opposed to a
"charItable"organlzatlon, 2) requIrIng more Infomatlon on the back-
ground of the applIcant before a solICItatIon permIt may be Issued,
3) reqUIrIng a $50 00 applIcatIon fee from any organIzatIon
WIshIng to SOlICIt, 4) reqUIrIng more personal background informatIon
on those who SOlICIt for the organIzatIon; 5) prOVIdIng for a hearIng
If a permIt applIcatIon IS denIed, 6) transferrIng to the LIcense
DIVISIon the dutIes of admInIstratIon of SolICItatIon Pemlts from the
CIty Manager's OffIce; 7) statIng that relIgIOUS and charitable organi-
zatIons may SOlICIt only between hours of g.OO a ffi. and 7"00 p m.
RecommendatIon
It IS recommended that CIty CounCIl dIrect the CIty ~ttorney to prepare
an ordInance which would transfer the dutIes of solICItatIon admInIstratIon
from the OffIce of the CIty Manager to the LIcense DIVISIon, InstItute a
$50 00 applIcation fee, and adopt the other aforementIoned amendments
to the ~unlclpal Code relatIng to SolICItatIons.
PREN.RED BY
~~RK C PUSINELLI
~dmlnlstratlve AIde
~fCP dvl
Attachment
. .
l/16/78 -C~I:~ICP:dvl
Comparlson of ~rent
APPENDIX
and Proposed SOllcitation~rmit OrdInance
Current OrdInance
1.
II.
III. Appl1cation for permit
(data requJred);
I) Name and address of app1Jcant
2) ~ame and address of any organizatIon
the applicant 1S affIliated with
other than the organIzatIon the
permi t is for.
3) Location of all natIonal, state,
local headquarters.
4) Kames, addresses, physical descrIption,
blrthdates, socJal security numbers
of all officers and those solICItIng
5) Purpose for which proceeds are to be
used.
6) The dollar goal to be raised
7) The bank or place where any part
of. or all of. the funds raised by
the solIcitatIon will be put.
8) What records of funds will be kept
and where; and what will be open to
the pubhc.
Proposed OrdInance
T. DefInItions of terms
SOlICIt. charitable, relIgious
contributions, person, promoter.
LIcense DiVIsion.
II
Exemptions from PermIt:
ReligIOUS, charItable, et~.
(organIzations are exempt if
contrIbutions gIven from o~~
membershIp),
III
ApplIcatIon for permIt
(data required);
1) ~ame and address of applIcant
2) Name and address of officers
of the organizatIon the applI-
cant is affilIated WIth and a
copy of the resolution from that
organizatIon authoriZIng the
solIcitation.
3) The purpose of the solIcitation
dollar goal, and use of contri-
but ions.
4) A statement showing the need
of the soliCItatIon.
5) Kames and addresses of person or
persons by whom receipts of the
solIcitatIons will be dispersed.
6) The names and addresses of
person or persons who will be In
charge of conductIng the soli-
CItation and the names of all
promoters of the solIcitation.
7) An outlIne of methods used
ln sohclting.
8) Time when soliCItations wIll be
made starting and ending dates
of solIcitatIon
e
-1-
Current Ordinance
9) Certified financial statements of the
appl~cant for the current year and
the year precedlng the date and budget
breakdm.,l1.
10)
Statement whether their unlform or dress 10)
resembles that of any group in the area
conducting a simllar type of activlty.
11)
Statement whether or not the organ- 11)
ization 1S uSlng those under elghteen
years of age as sollcltors
IV. Investigation
. APPENDIX
Proposed Ordlnance
9) Estimated cost of solicltation.
12)
The amount of wages, fees,
commlSSlons, expenses or
emoluments to be spent or paid
to any person in connection wlth
such solicltatlon, and the names
and address of those persons.
A flnanclal statement for the
last proceeding fiscal year
of any funds collected for
charitable purposes.
A full statement of character
in the extent of the charitable
work belng done by the applicant
ln the City.
A statement that the actual cost
of the sollcitatlon wlll not
exceed 25% of the total amount
to be ralsed.
13)
14) A statement that if a permlt lS
granted by the Clty lt will not
be used by the organlzation as
an lndorsement by the Clty
15) Statement whether thelr uniform
or dress resembles that of any
group in the area conducting
a similar type of activlty.
16) Other information as may be
reasonably required by the
License Dlvision Director so
he/she may ohtaln "character"
of the proposed solicitation for
the public welfare.
IV. Investlgatlon
The Clty ~mnager, upon receipt of
an application with approprlate infor-
mation, sends applicatlon to the Police
Department for lnvestigation. Police
return appllcatlon to Clty Manager's
Office withln forty-five days of receipt.
a) The appllcant must notify the
Llcense Division of any changes
in the character of the organ-
ization durlng the tlme the permit
lS pending; or when granted.
b) The License Divls10n can lnvest-
19ate so as to obtain proper
information.
e
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Current OrdInance
V. Permit
1. If the applIcatIon IS In order
then the permIt IS Issued for
not more than SIX months.
VI. Exception
J. No permIt is required for
solIcitation by charItable
organizations that have been
In the CIty for 5 years or
more (provided that durIng the
last five years a p~rmit has
been granted to the organi-
zation).
2. No person exempted by provIsIons
of this sectIon from obtainIng
a permIt shall conduct any sale
or bazaar. etc. that needs a
Sales Tax Permit without fIrst
contacting the LIcense DiVIsion
of the intended sale or haVIng
obtained a Sales Tax Permit from
the LIcense DiVIsion.
e
APPENDIX
Proposed Ordinance
c) It is approprIate to investigate
the applicant's fInancIal records.
V. Standards for LIcense DiVIsion's
actIon for GrantIng or Denying
ApplIcatIons for CharItable
SolICItation Permits.
PermIt is Issued when:
1. The statements in the appli-
catIon are true.
2. The applIcant is of good
character.
3. Reliable persons are in
control of the organization.
4 The applIcant IS not engaged
in fraud.
5. The soliCItation will not
defraud the public
6. The solIcitatIon IS not for
private profIt.
7. The cost of raising funds WIll
be reasonable (any cost greater
than 25% of the amount collected
IS unreasonable unless specIal
facts are given).
VI. Fee for SolIcitation's Permit
1. The applicant pays a ~50.00
permit ~ee.
2. The applIcant pays 10~ per
copy of permIt deSIred.
e
-3-
Current Ordlnance
VII. Permlts Revocatlon
1. Permlt can be revoked lf the
organlzatlon has not followed
proper gUldellnes
2 Permlt revoked at the dlrectlon
of the Clty Manager, wlth a
letter from the License DlvlSlon.
VlrI Unlted States Mall
~o permlt lS requlred for
Sollcltatlons made through
the Unlted States Mail.
IX.
Rummage Sale
A $5.00 fee lS to be pald for each
two-day perlod or portlon thereof
that the rummage sale lS held by a
charltable organizatlon havlng ltS
headquarters or the majority of ltS
members outslde Santa Monlca.
x.
Telephone Sollcltatlon
No one may use the phone In any
general Sollcitatlon except those
.In the organlzatlon ln whose name
a perm1t has been lssued, provlded
there 1S no compensatlon for the
Sollc1tatlon.
_ APPENDIX
Proposed Ordlnance
VII. Charltable Sollcltatlon Permlt -
Form-T1me Llm1t
1. Certain facts to be on
permlt.
2 Permlt 15 not an endorse-
ment by the Clty_
3. Permlt slgned by L1cense
D1V1Slon
4. Organlzatlon cannot soliclt
longer than 180 days; but
Llcense D1V1Slon may extend
time llmlt for additlonal
180 days.
5. Charltable organlzatlons
may SOllClt only from 9 a.m
to 7 p.m., seven days per week.
VIII. Permlt ~on-Transferrable --
Return of Upon Explratlon
Any permlt lssued under thlS
ordlnance lS non-transferrable
and shall be returned to the
Llcense Dlvlsion wlthln two
days of lts date of explration;
\\'1 th all coples.
IX.
Agents and Solicltors fQr
Charltable Sollcltatlon Permlt
Holders
1. Credentials glven by permlt
holders to their agentsr
credentlals must have certaln
pertlnent facts.
2. ~ copy of credentlals flIed
wlth Llcense Divlslon.
3. Credentlals for publ1c Vlew
ln Clty flIes.
X.
Wrltten Recelpts Requlred
Any contrlbutlon greater than $1 00
must have a wrltten recelpt; the
name and permlt number of SOllC1IDL
must be on the recelpt.
. .
.
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e
APPENDIX
Proposed Ordinanc~
XI. Hearlng After Denial of Permlt
1. Wlthln five days of recelving by
mail, any appl1cant may fl1e a
written request for public hearlng
before the License Review Board.
2. The License Review Board sets
time and place, in five days
of request fl1e.
3. License ReVlew Board glves a
decision wlthin ten days after
the conclusion of the hearing.
4. The License Dlvislon must file a
report stating how and why the Llcense
Review Board reached thelr decision;
the public may Vlew a copy of the
report.
XII. Revocation of Permlts
Permit revocations will be processed
pursuant to current License ReVlew
Board procedures.
XIII. Notice of Suspension of Revocatlon of Permit
to Chlef of Pollce
1. The Police Chlef must be notlfled by the
License Dlvlslon of any suspenslon or
revocatlon of a solicitation permlt.
~
e
e
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APPENDIX
Proposed OrdInance
XIV. Books and Records of Permit Holders
No person may SOlICIt any contributions for a charItable
purpose ~lthout havIng an accountIng system showing all
records of payments, revenue, etc.
XV. Report Required from PermIt Holder
1. Thirty days after the SolIcitatIon a report must be
submitted to the LIcense DIvIsion by the organizatIon;
this must be a detaIled report showIng the amount raised,
spent, IncludIng wages, fees. etc.; ~nd the report must
show the dIsposition of the balance of funds collected
by the solIcitatIon. thIS is for publIc VIew.
2. The License DivisIon may extend the period for an
addItIonal 30 days.
3. The permit holder must make available to the License
DivisIon a representatIve for whIch the accuracy of the
report can be checked.
\~I. ReligIous SolIcItations
A certificate from the License Division IS necessary for
solicItatIon
InformatIon ~eeded~
1 Name and address of headquarters of person applYIng
for permIt.
2. Names and addresses of applIcants. prInCIpal manager;
copy of resolution stating need for solicitation.
3. Purpose of soJicitatlon; dollar goal; use of receipts.
4. Statement showIng need for solicitatIon
5. Names and addresses of solIcitors
6 Names and addresses of those in charge of conductIng the
SOlIcItation; names of promoters of solicltation.
7. OutlIne of methods used conducting sollcitatlon.
8. Time when solicitatIon IS to be made; beginnIng. ending,
dates_
9. Estimated cost of solicitatIon.
e
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e
APPENDIX
Proposed Ordinance
la, Amounts of wages, fees, etc. (costs of SOlIcItation),
wIth names and addresses of those paid.
11. FInancial statement for the last fiscal year for any
religious funds collected by the applicant wIth a
statement giving the amount of the dollar raised; costs;
fInanCIal dIstributIon of money collected.
12. Full statement of character of the relIgious work carrIed
on by the organIzatIon.
13. Statement that the permIt IS not an endorsement by the
Clty.
14. Statement whether theIr uniform or dress resembles
that of any group in the area conductIng a simIlar
type of activIty.
15. Other pertInent InformatIon
Also:
If there is any change in policy, then the
LIcense Division must be notifIed In wrIting
wi thin 24 days.
$50 00 permit applIcatIon fee.
The permit IS good for 6 months; It is issued
by the License DIVISIon.
RelIgIous organizatIons may sollClt only from
9 a.m. to 7 p.m., seven days per week.
Permit must contaIn the above requirements
(1-14) .
The solICItor must carry credentials and a
copy of the solicitation permit granted to
hIs/her organizatIon
CollectIons taking place WIthIn a church,
synagogue does not requIre a solicitatIon
permi 1.
XVII. InvestIgatIon of AffaIrs of Persons SolicitIng for RelIgIous
Purposes and Persons Exempt from Permit and Certlficate Require-
ments -- PublIcation of FIndings
1 The License DIVIsion can InvestIgate the affairs of anyone
soliCItIng for religIous purposes under the certificate
Issued by the CIty for solicitation.
2. The applicant shall furnish necessary information to the
LIcense DIVIsion.
3. FIve days before the release of the fIndIngs of the
InvestIgation, a report must fIrst be gIven to the person
~
.
-7-
.
APPENDIX
Proposed Ordlnance
being investigated - the person being investigated then
must file a statement or statements conflrrnlng or denying
the results of the lnvestlgatlon.
XVIII. The religlolls organ1zation cannot misrepresent themselves.
XIX. Penaltles
1. Any vlolatlon of the prov1slons of this ordlnance
1S a misdemeanor.
XX. Separabllity
Each provisIon of this ordlnance is independent of all
other provisIons (if one section is inval1d then the
other sections are stIll valid).
XXI. Repeal of Conflicting Ordinances
All ordlnances or parts of ordInances in conflIct with
the provisIons of this ordinance are repealed.