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HomeMy WebLinkAbout17575 ORD - 04/20/1983AN ORDINANCE AMENDING SECTIONS 38-20 THROUGH 38-35 OF THE CODE OF ORDINANCES OF THE CITY OF CORPUS CHRISTI, ESTABLISHING REGISTRATION REQUIREMENTS FOR PERSONS SOLICITING FUNDS FOR CHARITABLE PURPOSES; PRESCRIBING CERTAIN CRIMINAL PENALTIES; MAKING OTHER PROVISIONS RELATIVE THERETO; REPEALING ALL PRIOR INCONSISTENT PROVISIONS; PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS. SECTION I. That Section'38-20 of the Code of Ordinances, Corpus Christi, Texas, is hereby amended to read as follows: "Section 38-20. Definitions (a) The term "solicit funds" or "solicitation of funds" shall mean any request for the donation of money, property, or anything of value, or the pledge of a future donation of money, property, or anything of value; or 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, publications or subscriptions to publications, or brochures, upon the representation, express or implied, that the proceeds of such sale will be used for a charitable purpose as such term is herein defined. Expressly excluded from the meaning of "solicit funds" or "solicitation of funds" is any offer of membership in any organization. A solicitation of funds is complete when the solicitation is communicated to any individual then located within the corporate limits of the city. (b)(1) The term "charitable purpose" shall mean philanthropic, religious or other non-profit objectives, including the benefit of poor, needy, sick, refugee or handicapped persons; the benefit of any church or religious society, sect, group or order, the benefit of a patriotic or veterans' association or organization; the benefit of any fraternal, social or civic organization, or the benefit of any educational institution. (b)(2) The term "charitable purpose" shall not be construed to include the direct benefit of the individual making the solicitation. 17575 MICROFILMED SPP 2 81 84 (b)(3) The term "charitable purpose" shall not be construed to include the benefit of any political group or political organization which is subject to financial disclosure under state or federal law. (c) The term "person" shall mean and include any natural person, firm, partnership, corporation or association. (d) The term "individual" shall mean only a natural person." (e) The term "costs of solicitation" shall mean the difference between gross contributions received in connection with the solicitation and net contributions actually disbursed to the charitable entity or purpose and includes but is not limited to salaries, wages, fees, commissions, overhead, and other expenses paid out of the contributions to or by the registrant or its solicitors. If goods or services are provided in connection with the solicitation of contributions, the gross contribution shall be the difference between the costs to the registrant of the goods or services and the amount for which the goods or services are sold to the public. The following expenses shall not be considered as "costs of solicitation", so long as such costs do not unreasonably exceed the fair market value of such goods or services: (1) Entertainers, promoters, and copyright fees (2) Stage hands (3) Security (4) Space rental (5) Insurance (6) Actual purchase cost of the tangible product to be sold. The following expenses shall be considered as "costs of solicitation": (1) Producer/promoter (2) Advertising and public relations (3) Telephone solicitations (4) Fund raising consultants (5) Posters and printed materials (6) Printing of tickets (7) Show office rent (8) Monies paid to persons to perform any of the above services. (9) The difference between the actual cost to the registrant and the fair wholesale market value of the goods or services, -2- when the actual cost to the registrant unreasonably exceeds the fair market value of such goods and services. SECTION 2. That Section 38-21 of the Code of Ordinances, Corpus Christi, Texas, is hereby amended to read as follows: "Section 38-21. Unlawful solicitation. (a) It shall be unlawful for any person, directly or through an agent or employee, to solicit funds for charitable purposes within the corporate limits of the city unless such person shall have first obtained a certificate of registration from the City Secretary, as hereinafter provided. (b) It shall be unlawful for any individual, as the agent or employee of another, to solicit funds for charitable purposes in the city unless his principal or employer has received a certificate of. registration as hereinafter provided. (c) It shall be unlawful for an individual to solicit for charitable purposes without visibly displaying an identification card issued to that individual by the City Secretary, as hereinafter provided. (d) It shall be unlawful for any person to alter an identifica- tion card issued by the City Secretary, without the express approval thereof. (e) It shall be unlawful for an individual to solicit for charitable purposes while displaying an identification card issued by the City Secretary in the name of another individual. (f) It shall be unlawful to solicit for charitable purposes between the hours of 10:00 p.m. and 6:00 a.m. (g) It shall be unlawful for any person, directly or through an agent or employee, to solicit funds for charitable purposes within the corporate limits of the city after the expiration of any certificate of registration issued as hereinafter provided. (h) It shall be unlawful for the person registering or the agents or employees thereof to solicit funds for a charitable purpose other than that set out in the registration statement upon which the certificate of registration was issued. (i) It shall be unlawful for any person to solicit funds, directly or indirectly, by the misrepresentation of names, occupation, -3- financial condition, social condition or residence of the persons purported to be benefited thereby or of the solicitor, or misrepresentation of any other material fact. (j) It shall be unlawful to represent, directly or indirectly, or implicitly, that some properly named person other than the person in whose name the certificate of registration was issued will be benefited without first providing to the City Secretary the written consent of such person. (k) It shall be unlawful for any person who shall solicit funds for charitable purposes in the city to represent in connection with such solicitation of funds that the issuance of a certificate of registration or an identification card by the city constitutes an endorsement or approval of the purposes of such solicitation of funds by the city or any officer or employee thereof. (1) It shall be unlawful for any person to accept funds from any person solicited without providing such contributor at the time of acceptance of such funds a written receipt stating the name of the registrant, the name of the individual solicitor or agent, and the percentage of the contribution which is tax deductible under the then current Federal Internal Revenue Code. (m) It shall be unlawful for any person issued a certificate of registration hereunder to fail to file with the City Secretary within thirty (30) days from the expiration of the certificate of registration a sworn financial statement, as provided in Section 38-27 showing the total amount collected from the solicitation of funds and the amounts and purpose for which such funds were disbursed. (n) Charitable solicitations involving the sale or attempted sale of goods or services shall be subject to the provisions of the Texas Deceptive Trade Practices Act, and the provisions of said Act, as amended, are adopted herein by reference." SECTION 3. That Section 38-22 of the Code of Ordinances is hereby amended to read as follows: Section 38-22. Registration Statement All persons desiring to solicit funds for charitable purposes in the -city shall file with the City Secretary, a registration statement, on forms provided by the City Secretary, containing the following information: -4- (1) The name of the person registering and desiring to solicit funds for charitable purposes. (2) Whether the person registering is a natural person, partnership, corporation or association and, (a) If a natural person, the business or residence address and telephone number must be given. (b) If a partnership, the names of all partners and the principal business address and telephone number of each partner must be given. (c) If a corporation, the person registering must state whether it is organized under the state whether it is organized under the laws of Texas or is a foreign corporation, and must show the mailing address, business location, telephone number, name of the individual in charge of the Corpus Christi office of such corporation, and the names of all officers and directors or trustees of said corporation, and, if a foreign corporation, the place of incorporation. (d) If an association, the registration statement shall show the association's principal business address and telephone number, if any, and shall show the names and principal business or residence addresses and telephone numbers of all members of the association unless they exceed ten (10) in number, in which case the application shall so state and the person registering may alternatively list the names and principal business or residence addresses and telephone numbers of the officers and directors or trustees of the association. If the association is part of a multi -state organization or association, the mailing address and business location of its central office shall be given, in addition to the mailing address and business location of its local office. (3) A brief description of the person registering, the charitable purpose for which the funds are to be solicited, and an explanation of the intended use of the funds toward that purpose. (4) Whether the person registering is a non-profit charitable organization under the Federal Internal Revenue Code, the IRS -5- assigned identifying number, the percentage of each contribution which will be tax deductible under the then current Internal Revenue Code. (5) The names of all individuals authorized to disburse the proceeds of the solicitation. (6) The names, mailing address and telephone number of all individuals who will be in direct charge or control of the solicitation of funds. (7) The time period within which the solicitation of funds is to be made, giving the date of the beginning of solicitation and its projected conclusion. (8) A description of the methods and means by which the solicitation of funds is to be accomplished. (9) The total amount of funds proposed to be raised. (10) A projected schedule of salaries, wages, fees, commissions, expenses and costs to be expended and paid in connection with the solicitation of funds or in connection with their disbursement, and an estimated percentage of the total projected collections which the costs of solicitation will comprise. (11) The names of any other cities in which the person registering has solicited funds for charitable purposes within the past five (5) years, but in the event that the person registering has solicited funds for charitable purposes in more than ten (10) other cities, the person registering may list the ten (10) cities in which the most recent solicitations occurred. (12) A statement to the effect that if a Certificate of Registration is granted, such Certificate will not be used as or represented to be an endorsement by the City or any of its officers or employees. (13) The names of any officer, director, trustee, partner, or any current agent or employee engaging in solicitation of funds who has been convicted of a felony or a misdemeanor involving moral turpitude within the past seven (7) years, and the nature of the offense, the State where the conviction occurred, and the year of such conviction. (14) Whether, within the past seven (7) years, the person registering, or any officer, director, trustee, partner, or any current agent or employee engaging in solicitation of funds has -6- entered into an Assurance of Voluntary Compliance agreement with the Consumer Protection Division of the Texas Attorney General's office, or has had a judgment entered or civil penalty imposed against such person for violation of the Texas Deceptive Trade Practices Act or similar Act enacted by any federal, state, or local governmental entity, the name of such person or persons, the nature of the Assurance of Voluntary Compliance agreement or violations of the Texas Deceptive Trade Practices Act or similar Act, the State where the violations occurred, and the year of such violations. (15) An explanation of the reasons, if the person registering is unable to provide any of the foregoing information, why such information is not available. (16) The registration statement must be signed by the applicant, if the person registering is an individual; if the person registering is a partnership, by the partner charged with disbursing funds solicited; if a person registering is a corporation or an association, by its officer charged with disbursing the funds solicited. The individual signing the registration statement shall sign the statement and swear before an officer authorized to administer oaths that he has carefully read the registration statement and that all the information contained therein is true and correct." SECTION 4. That Section 38-23 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-23. 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 article, and such fee will not be refunded if a Certificate of Registration is not issued." SECTION 5. That Section 38-24 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-24. Issuance of Certificate of Registration. After a review of the registration statement to determine its compliance with Section 38-22 above, and, within ten (10) working days of the receipt of the registration statement, the city Secretary shall either issue a Certificate of Registration, as provided in Section 38-26, or notify the person registering that the registration statement does not comply with the requirements of Section 38-22 above -7- and specifically point out what information or explanation has not been furnished that is required before a Certificate of Registration can be issued." SECTION 6. That Section 38-25 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-25. Form of Certificate of Registration. The City Secretary shall prescribe the form of the Certificate of Registration. However, each such Certificate of Registration shall be printed in black except that the following shall be printed prominently thereon in red: 'The issuance of this Certificate of Registration is not an endorsement by the City of Corpus Christi or any of its officers or employees'. Each Certificate of Registration shall bear a registration number which is the same as the file containing the registration statement filed by the registrant." SECTION 7. That Section 38-26 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-26. Solicitors' Identification Cards The City Secretary shall prescribe the form for identification cards for solicitors. However, each such identification card shall bear the name of the person registering, the registration number, the name of the solicitor or agent, the expiration date of the Certificate of Registration, and it shall have printed prominently thereon in red: 'This identification card is not an endorsement of the solicitation by the City of Corpus Christi or any of its officers or employees'. The person registering shall provide, by a separate list, the names and addresses of all agents or employees for whom identification cards are desired. The City Secretary shall issue up to ten (10) identification cards with the Certificate of Registration without any additional charge. The registrant may obtain additional identifica- tion cards by paying to the City its actual cost. Every person receiving a certificate of registration shall supply each of his solicitors with identification cards and shall be responsible for the acts of his solicitors in connection with the solicitation for which the certificate of registration was issued." SECTION 8. That Section 38-27 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: -8- "Section 38-27. Expiration of The Certificate of Registration; Filing of Financial Statement within Specified Time of Termination of Solicitation Every Certificate of Registration and Identification Card issued by the City Secretary shall expire at the termination of the solicitation period specified in the registration statement or six (6) months from the date of issuance, whichever is less. Not later than thirty (30) days from the expiration of the Certificate of Registration, the person registering shall file with the City Secretary, on forms provided thereby, a closing statement regarding the solicitation of funds, which shall be a sworn financial statement showing the total funds collected from the solicitation of funds 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 of funds." SECTION 9. That Section 38-28 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-28. Public Disclosure All registration statements filed with the City Secretary, 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. Within ten (10) days after issuance of a certificate of registration, the City Secretary shall cause to be posted public notice of the issuance of said certificate of registration containing the following information: (1) The name of the person or organization in whose name the certificate was issued; (2) The charitable purpose described in the Registration statement for which the funds are to be solicited and the explanation of the intended use of the funds toward that purpose; (3) The methods and means by which the solicitation is to be accomplished; (4) The total amount of funds proposed to be raised; (5) The estimated percentage of total projected collections which the costs of solicitation will comprise; -9- (6) Whether any officer, director, trustee, partner, or any current agent or employee engaging in solicitation of funds has been convicted of a felony or misdemeanor involving moral turpitude within the past seven years; (7) Whether, within the past seven years the person or organization in whose name the certificate was issued, or any officer, director, trustee, partner, or any current agent or employee engaging in solicitation of funds has entered into an Assurance of Voluntary Compliance with the Consumer Protection Division of the Texas Attorney General's office, or has had a judgment entered or civil penalty imposed against such person for violation of the Texas Deceptive Trade Practices Act or similar Act enacted by any federal, state, or local governmental entity. If the application indicates that the projected costs of solicitation will exceed 25% of the total amount of funds proposed to be raised, the following oral and written statement shall be made by the agent to all persons being solicited prior to acceptance of funds from said persons: 'City ordinance requires me to advise you that the solicitor whom I represent expects to use over 25% of the monies collected for expenses of the solicitation and collection of funds. More specific information regarding the solicitor, our objectives, and the use of • solicited funds is available upon request from the City Secretary.' In addition, the agent shall orally state to the person solicited how much of each dollar contributed to the charitable organization is expected (as reflected in the Registration Statement) to be received by the charitable organization, how much of each dollar contributed by the solicitee is expected to be expenses of the solicitation and collection of funds, and the percentage of the contribution which is tax deductible under the then current Federal Internal Revenue Code. SECTION 10. That Section 38-29 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-29. Exceptions The following are excepted from the operation of Sections 38-21 through 38-28: -10- (1) The solicitation of funds for charitable purposes by any organization or association from its members; (2) The solicitation of funds for charitable purposes by a person when such solicitation occurs on premises owned or controlled by the person soliciting funds or with the permission of the person who owns or controls the premises. (3) The issuance of any announcement or advertisement that such solicitation as described in subsections (1) and (2) above will occur or which announces or advertises an event at which unannounced solicitation as described in subsections (1) and (2) above occurs." SECTION 11. That Section 38-30 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-30. Solicitations Commission --Established; Function Generally. A city solicitations commission is hereby established and charged with responsibility for examining all registration statements made to the City Secretary under this article and for reviewing all charitable solicitations activities conducted in the City." SECTION 12. That Section 38-31 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-31. Same --Composition; Appointment and Term of Members. The solicitations commission shall consist of nine (9) members appointed by the City Council, with the initial appointments to be for staggered terms, three (3) members appointed for a term of one (1) year, three members for a term of two (2) years, and three (3) members for a term of three (3) years. Each year thereafter three (3) members of such commission shall be appointed for a term of three (3) years." SECTION 13. That Section 38-32 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-32. Examination of Registration Statements by Solicitations Commission. The Solicitations Commission shall meet to examine registration statements and may require the registrant to appear and to provide witnesses and other evidence to substantiate information contained in the registration statement. The Solicitations Commission shall make -11- its own independent determination from the evidence presented of the estimated percentage of the total projected collections which the costs of solicitation will comprise. If, after hearing, the Solicitation Commission finds the estimated percentage of the total projected collections which the costs of solicitations will comprise to be 10% or more greater than that stated in the registration statement, the City Secretary shall notify the registrant in writing of the Solicitations Commission's findings and shall post public notice of such findings. Nothing in this section shall be construed to halt or suspend the registrant's solicitations campaign." SECTION 14. That Section 38-33 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-33. Review of Charitable solicitation Activities by Solicitations Commission. In all cases where the City Secretary is of the opinion that a person may be soliciting in violation of this article or that information contained in a registration statement is false or otherwise inaccurate, the City Secretary shall call a meeting of the Solicitations Commission for the purpose of investigating such matters. The solicitations Commission may require such person or registrant to appear and to provide witnesses and other evidence relevant to such investigation. After investigation, the Solicitations Commission shall render its written findings and recommendations to the City Attorney for further appropriate action." SECTION 15. That Section 38-34 of the Code of Ordinances, Corpus Christi, Texas is hereby amended to read as follows: "Section 38-34 Records. (a) A registrant shall maintain and retain for a period of two years following expiration of the certificate of registration a copy of each written receipt required to be provided to each contributor pursuant to Section 38-21(1). (b) A registrant engaging in the sale of goods or services to solicit funds shall keep or cause to be kept and shall continuously and regularly maintain or cause to be maintained throughout the solicitations campaign, and shall retain for a period of two years following expiration of the certification of registration, solicitor's log sheets for each solicitor so engaged which shall include the name -12- of the registrant, the name of the individual soliciting the member of the public, the name of the individual supervising such solicitor, the method of solicitation used, e.g., door-to-door, street or sidewalk, telephone, mailing, hand billing, etc., and, if known, the name of each person solicited --including date and time of solicitation and the address and phone number of the person solicited, a description of the goods or services sold to such solicited person and the monetary amount or value of the contribution made by such solicited person, if any." SECTION 16. That Section 38-35 of the Code of Ordinances, City of Corpus Christi, Texas is hereby amended to read as follows: "Section 38-35. Sale of Tickets. All tickets for raffles or drawings and all tickets for admission to any sporting or entertainment event which are sold or for which contributions are made by the consuming public must be serially numbered. Each numbered ticket may be sold or a contribution accepted by or on behalf of the charitable organization, only one time." SECTION 17. All provisions of Section 38-20 through Section 38-35 of the Code of Ordinances, Corpus Christi, Texas existing prior to the enactment of this ordinance are hereby expressly repealed. SECTION 18. If any provision, section, subsection sentence, clause or phrase of this ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this ordinance or their application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this ordinance that no portion thereof or provision, or regulation contained herein, shall become inoperative or fail by reason of any unconstitutionality of any other portion hereof and all provisions of this ordinance are declared to be severable for that purpose. SECTION 19. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the immediate need for efficient and effective administration of City affairs by providing for amending the current solicitations ordinance, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three -13- regular meetings so that this ordinance is passed and shall take effect upon first readings as an emergency measure this the 1983. ATTEST: C ecretary,_ APPROVED %7 DAY OF 1983 2Br ce Aycock, ity Attorney CHRISTI, of 4,� MAYOR THE RISTI, TEXAS -14- CITY 0 CORPUS Corpus Christi, Tex 47V day of , 198 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, MAYOR Council Members THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed the following vote: Luther Jones Or. Betty N. Turner Jack K. Dumphy /, Bob Gulley // Herbert L. Hawkins, Jr. i/ Dr. Charles W. Kennedy fr. Cliff Zarsky 19575 ni I PASSAv GE O „VI, ORDINANCE NO. 17575 •AMENDING SECTIONS 31-20 THROUGH 38.35 OF THE CODE OF ORDI- NANCES OF THE CITU OF CORPUS CHRISTI, ESTAB- j REQUIREMENTSA TION FORT PERSONS SOLtCITINA FUNDS FOR CHARITA- BLE PURPOSES; PRESCRIBING CERTAIN CRIMINAL" IMA OTHER PENALTIES; PROVI- IONS RELATIVE HERETO; REPEALING LL PRIOR INCONSIS- ENT PROVISIONS; . ROVIDING A SEVER- BILITY CLAUSE; AND ECLARING AN EMER- ENCY. Was passed and approved the CityCouncil of the on the 27Corpus 27thdayApril, 3. The full text of said blit ne the vOf i e of tilable to he y Secretary. a -Bill G. Rea City Secretor Corpus Christi, Taxa AD#503036 City of C.C. PUBLISHER'S AFFIDAVIT STATE OF TEXAS, lss_ County of Nueces. lJ Before me, the undersigned, a Notary Public, this day personally came. GRACIE DE LUNA , who being first duly sworn, according to law, says that he is the ADM. ASST. SECRETARY of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE NO. 17575... of which the annexed is a true copy, was published in on thel7th day of 0' consecutive day7) CALLER -TIMES PUBLISHING CO. __.19...83 and once each. d4y.._.......thereafter for one One Timm i..., $_...._34.,_5._......_.... GRACIE DE LUNA / ,101.,X0"/"A-T:-.- ADM . .,.!l.Z2 .ADM. ASST SECRETARY Subscribed and sworn to before me this 17th day of Max 1983 EUGENIA S. CORTEZ4 _.__ ....._........ S Notary Publi Nueces County, Texas