HomeMy WebLinkAbout021472 ORD - 09/01/1992ORDINANCE
AN ORDINANCE REGULATING CHARITABLE SOLICITATIONS IN THE
CITY OF CORPUS CHRISTI; DEFINING TERMS; REQUIRING
REGISTRATION STATEMENTS, AND POST -SOLICITATION REPORTS
FROM CHARITABLE ORGANIZATIONS SOLICITING IN THE CITY;
PROVIDING FOR SIMPLIFIED REPORTING REQUIREMENTS FROM
SMALLER CHARITABLE ORGANIZATIONS THAT DO NOT USE THE
SERVICES OF A PROFESSIONAL FUND RAISER; REQUIRING
REGISTRATION STATEMENTS FROM PROFESSIONAL FUND RAISERS;
REQUIRING POST -SOLICITATION WRITTEN DISCLOSURE
STATEMENTS FROM TELEPHONE SOLICITORS; PROHIBITING
CERTAIN METHODS OF SOLICITING FOR CHARITABLE PURPOSES;
EXEMPTING CERTAIN CHARITABLE ORGANIZATIONS; REPEALING
SECTIONS 38-40 THROUGH 38-55 OF THE CORPUS CHRISTI CITY
CODE AND SUBSTITUTING THEREFOR REVISED SECTIONS 38-40
THROUGH 38-48; PROVIDING FOR SEVERABILITY; AND PROVIDING
FOR PUBLICATION.
WHEREAS, problems involving misrepresentations in charitable solicitations
and insufficient information about purported charitable organizations and their use of
donations have been well documented; and
WHEREAS, the City of Corpus Christi has an interest in preventing its citizens
from being defrauded; and
WHEREAS, the City of Corpus Christi has an interest in maximizing the
community benefit from the citizens generosity by exposing fraud, wasteful administration,
and other misdirection of charitable donations; and
WHEREAS, the City of Corpus Christi has an interest in preventing charitable
solicitations which are unwanted, intrusive, and violative of the citizens' privacy;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS:
SECTION I. That the Corpus Christi Code of Ordinances, Chapter 38,
Peddlers, Vendors, Itinerant Merchants, and Solicitors Article II, Solicitations for Charitable
Purposes, be amended by repealing current Sections 38-40 through 38-55, and substituting
therefor Sections 38-40 through 38-48, to read as follows:
Sec. 38-40. Definitions. For purposes of this article:
(1)
"Charitable purpose" means any purpose, whether actual or purported, which
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021472
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an ordinary citizen reasonably could classify as charitable, benevolent, philanthropic,
patriotic, religious, social service, welfare, educational, eleemosynary, cultural, artistic, or for
a public service or association of public servants.
(2) "Charitable organization" means any person who engages in, or purports to
engage in solicitation for a charitable purpose and includes a chapter, branch, area office,
or similar affiliate or any person soliciting contributions within the City for a parent
charitable organization, but does not include an organization whose primary purpose is
supporting or opposing any candidate for elective office, or influencing the nomination for
election or the election of any candidate for elective office.
(3) "Contribution" means the promise or grant of any money or property of any
kind or value, including the promise to pay, or payment for merchandise or rights of any
other description when representation is made by or on behalf of the seller or solicitor that
the whole or any part of the price will be applied to a charitable purpose. "Contributions"
shall not include any funds obtained by a charitable organization through grants from any
governmental agency. "Contributions" shall include, in the case of a charitable organization
offering goods and services to the public, the difference between the direct cost of the goods
and services to the charitable organization and the price at which the charitable organization
or any person acting on its behalf resells those goods or services to the public.
(4) "Fund raising costs" means costs determined to be fund raising by generally
accepted accounting principles. Expenses incurred in planning or developing a fund-raising
campaign, regardless of whether the expenses are incurred before, during, or after that
campaign, constitute fund raising costs.
(5) "Management and general costs" means costs determined to be management
and general by generally accepted accounting principles.
(6) "Parent organization" means that part of a charitable organization which
coordinates, supervises or exercises control over policy, fund raising, and expenditures, or
assists or advises one or more chapters, branches or affiliates in the City.
(7) "Person" means any individual, organization, group, firm, copartnership,
association, partnership, corporation, company, trust or joint stock association, church,
religious sect, religious denomination, society, or league, and includes any trustee, receiver,
assignee, agent or other similar representative thereof.
(8) "Professional fund raiser" means any person who for financial compensation
or profit performs for a charitable organization service in connection with which
contributions are, or will be, solicited in this City by the compensated person or by any
compensated person the person employs, procures, or engages to solicit; or any person who
for compensation or profit plans, manages, advises, consults, or prepares material for, or
with respect to, the solicitation in this City of contributions for a charitable organization.
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No investment adviser, investment adviser representative, broker-dealer, or lawyer,
accountant, or banker who advises a person to make a charitable contribution or who
provides legal, accounting, or financial advice in the ordinary course of a profession or
business shall be deemed, as a result of the advice, to be a professional fund raiser. A bona
fide salaried officer, employee, or uncompensated volunteer of a charitable organization is
not a professional fund raiser.
(9) "Solicit" and "solicitation" mean the request, directly or indirectly, for any
contribution, regardless of which party initiates communication, on the plea or
representation that such contribution will or may be used for any charitable purpose, and
include any of the following methods of securing contributions:
(1) Oral or written request;
(2) The distribution, circulation, mailing, posting, or publishing of any
handbill, written advertisement, or publication;
(3) The making of any announcement to the press, over the radio, by
television, by telephone, or telegraph concerning an appeal, assemblage, athletic or sports
event, bazaar, benefit, campaign, contest, dance, drive, entertainment, exhibition, exposition,
party, performance, picnic, sale, or social gathering, which the public is requested to
patronize or to which the public is requested to make a contribution;
(4) The sale of, offer, or attempt to sell, any advertisement, advertising
space, book, card, magazine, merchandise, subscription, ticket of admission, or any other
thing, or the use of the name of any charitable organization in any offer or sale as an
inducement or reason for purchasing any such item, or the making of any statement in
connection with any such sale, that the whole or any part of the proceeds from any such sale
will be used for any charitable purpose. A "solicitation" shall be deemed completed when
made, whether or not the person making the same receives any contribution or makes any
such sale.
Sec. 38-41. Registration requirement. A charitable organization commits an offense if it
solicits contributions within the City unless, prior to any solicitation, there is on file with the
City upon forms provided by the City, a registration statement containing, without limitation,
the following information:
(1) Legally established name.
(2) Name or names under which the person or organization solicits contributions.
(3) Form of organization.
(4) Date and place of organization.
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(5) Address of registered agent in this City, or, if none, the name and address of
the person having custody of books and records within this City.
(6) Names and addresses of officers, directors, trustees, and chief executive officer.
(7) Federal tax exempt status.
(8) General purposes for which organized.
(9) General purposes for which contributions to be solicited will be used.
(10) Methods by which solicitation will be made.
(11) Copies of contracts between charitable organization and professional fund
raisers relating to financial compensation or profit to be derived by the professional fund
raisers. Where any such contract is executed after filing of the registration statement, a copy
thereof shall be filed within seven days of the date of execution.
(12) Board, group or individual having final discretion as to the distribution and
use of contributions received.
ended.
(13) The amount of total contributions received during the accounting year last
(14) A statement in the following form:
"Of each dollar contributed, will go to
(amount in cents)
(specify each charitable purpose, noting whether local or
will go to
outside); (amount in cents)
and
(specify each
will go to
fund raising cost); (amount in cents)
(specify each item of management and general costs)".
The registration statement shall be executed by any two duly constituted officers of
the charitable organization who shall acknowledge that it was executed pursuant to
resolution of the board of directors or trustees, or if there be no such board, then by its
managing group which has approved the content of the registration statement, and shall
certify that the board of directors or trustees, or if there be no such board, its managing
group, have assumed, and will continue to assume responsibility for determining matters of
policy and have supervised, and will continue to supervise the finances of the charitable
organization.
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The registration statement shall be accompanied by a fee of $50.00.
A charitable organization shall file a registration statement for each charitable
solicitation campaign, and renew annually a registration statement for a charitable
solicitation campaign lasting more than one year.
Sec. 38-42. Charitable solicitation report. Within 60 days after a charitable solicitation
campaign has been completed, and on the anniversary of the commencement of a charitable
solicitation campaign lasting more than one year, every charitable organization required to
file a registration statement shall furnish a statement of income and expenses, prepared in
accordance with generally accepted accounting principles, so as to make a full disclosure of
the following, including necessary allocations between each item and the basis of such
allocations:
(1) Total receipts and total income from all sources;
(2) Management and general costs;
(3) Fund raising costs;
(4) Public education costs;
(5) Total net amount disbursed or dedicated within the City, broken down into
total amounts disbursed or dedicated for each major purpose, charitable or otherwise; and
(6) Names of professional fund raisers used during the accounting year and the
financial compensation or profit resulting to each professional fund raiser.
The failure to file timely a charitable solicitation report is an offense.
Sec. 38-43. Simplified reporting requirements.
(a) The reporting requirements set forth in Sections 38-41 and 38-42 do not apply
to charitable organizations meeting the following criteria:
(1) those which did not receive total contributions in excess of $10,000, in
excess of the direct costs of prizes given to the public, from the people within or without the
City of Corpus Christi during the accounting year last ended;
(2) those which do not plan to receive total contributions in excess of
$10,000 from the public within or without the City during any accounting year; and
(3) those who do not employ, procure, or engage a professional fund raiser.
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(b) Charitable organizations exempt from the reporting requirements set forth in
Sections 38-41 and 38-42 shall, prior to engaging in any charitable solicitation campaign, file
a simplified registration statement accompanied by a fee of $10.00. The simplified
registration statement shall include the following information:
(1) Legally established name.
(2) Name or names under which the organization solicits contributions.
(3) Form of organization.
(4) Address of principal office in this City, or, if none, the name and
address of the person having custody of the books and records in this City.
(5)
(6)
(7)
(8)
ended.
Name and address of the chief executive officer.
General purposes for which contributions to be solicited will be used.
Methods by which solicitation will be made.
The amount of contributions received during the accounting year last
(9) The proposed commencement and termination date of the charitable
solicitation campaign.
(10) A projected amount of contributions to be realized from the charitable
solicitation campaign.
(11) A projected amount of contributions to be provided to the charitable
purpose after fundraising costs and management and general costs are deducted.
(c) Charitable organizations exempt from the reporting requirements set forth in
Sections 38-41 and 38-42 shall, within 60 days after a charitable solicitation campaign has
been completed, furnish a simplified statement of income and expenses, prepared in
accordance with generally accepted accounting principles. If the charitable solicitation
campaign lasts more than one year, the charitable organization shall also file a simplified
statement of income and expenses on each anniversary of the campaign. The simplified
statement of income and expenses shall make full disclosure of the following, including
necessary allocations between each item and the basis of such allocations:
(1) Total receipts and total income from all sources;
(2) Management and general costs;
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(3) Fund raising costs;
(4) Public education costs; and
(5) Total net amount disbursed or dedicated within the City, broken down
into total amounts disbursed or dedicated for each major purpose, charitable or otherwise.
(d) The failure to file timely a simplified charitable solicitation report is an
offense.
Sec. 38-44. Registration of professional fund raisers.
(a) No person shall act as a professional fund raiser unless registered with the
City. The registration statement must be in writing, under oath, in the form prescribed by
the City, and must be accompanied by an application fee of $200.00. Each registration is
effective for one year from date of issuance. The registration may be renewed for additional
one-year periods on application and payment of the fee.
(b) the registration statement of the professional fund raiser shall consist of the
following:
(1) if the professional fund raiser, or any person the professional fund
raiser employs, procures, or engages, solicits in this City, the registration statement shall
include a completed solicitation notice on a form provided by the City. The solicitation
notice shall include a copy of the contract described in subsection (2), below, the projected
dates when soliciting will begin and end, the location and telephone number from where the
solicitation will be conducted, the name and residence address of each person responsible
for directing and supervising the conduct of the campaign, a statement as to whether the
professional fund raiser will at any time have custody of contributions, and a description of
the charitable program for which the solicitation campaign is being carried out. The
charitable organization on whose behalf the professional fund raiser is acting shall certify
that the solicitation notice and accompanying material are true and complete to the best of
its knowledge.
(2) the professional fund raiser shall also include, as a part of the
registration statement, a copy of the contract between the charitable organization and the
professional fund raiser. The contract shall:
(A) be in writing;
(B) contain information as will enable the City to identify the
services the professional fund raiser is to provide, including whether the professional fund
raiser will at any time have custody of contributions; and
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1
(C) if the professional fund raiser or any person the professional
fund raiser employs, procures, or engages, directly or indirectly, solicits in this City, the
contract shall disclose the percentage or a reasonable estimate of the percentage of the total
amount solicited from each person which shall be received by the charitable organization
for charitable purposes. The stated percentages required by this section shall exclude any
amount which the charitable organization is to pay as expenses of the solicitation campaign,
including the cost of merchandise or services sold or events staged.
(3) The registration statement shall also include the financial report for
previous campaigns conducted by the professional fund raiser in this City as set forth in
subsection (d), below.
(c) No professional fund raiser shall use the name of or solicit on behalf of any
charitable organization unless such solicitor has written authorization from two officers of
such organization, a copy of which shall be filed with the City.
(d) Within 90 days after a solicitation campaign has been completed, and on the
anniversary of the commencement of a solicitation campaign lasting more than one year, the
professional fund raiser who solicited contributions in this City in conjunction with a
charitable organization shall file a financial report for the campaign, including gross revenue
and an itemization of all expenses incurred. The report shall be completed on a form
prescribed by the City. The report shall be signed by an authorized official of the
professional fund raiser and an authorized official of from the charitable organization and
they shall certify, under oath, that it is true to the best of their knowledge.
Sec. 38-45. Disclosure by telephone solicitor. An organization or professional fund raiser
which solicits by telephone shall provide a written statement in the following form to each
contributor within 30 days of receipt of the contribution:
"Of each dollar contributed, will go to
(amount in cents)
(specify each charitable purpose, noting whether local or
will go to
outside) (amount in cents)
and
(specify each
will go to
fund raising cost); (amount in cents)
(specify each item of management and general costs)".
Sec. 38-46. Unlawful Solicitation.
(a) It shall be unlawful to solicit for charitable purposes between the hours of 9:00
a:LN\Misc\003.Ord.ak 8
if
p.m. and 9:00 a.m.
(b) It shall be unlawful for any person to solicit funds, directly or indirectly, by the
misrepresentation of names, occupation, financial condition, social condition or residence
of the persons purported to be benefitted thereby or of the solicitor, or misrepresentation
of any other material fact.
(c) 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 fund that the City
endorses or approves of the purposes of such solicitation by the City or any officer or
employee thereof.
(d) It shall be unlawful knowingly to make a false or misleading statement in the
registration statement described in Section 38-41, in the charitable solicitation report
described in Section 38-42, in any simplified report required by Section 38-43, or in the
telephone disclosure statement described in Section 38-45.
(e) It shall be unlawful for any person knowingly to solicit funds from another for
a particular charitable person or purpose after receiving notice that the other person does
not want to be contacted again about contributing to the charitable person or purpose.
(f) It shall be unlawful for any person to solicit funds from another without
disclosing to the potential donor his name, the name and address of the charitable
organization on whose behalf he is soliciting, the name of any professional fund raiser for
whom he is working and a statement that said entity is a professional fund raiser, and that
additional information is on file with the City.
(g) Unless the charitable solicitation is done over the telephone, the solicitor must
conspicuously display a card of the minimum size of three inches by five inches and which
legibly bears the name of the solicitor, the name and address of the charitable organization
on whose behalf he is soliciting, the name of any professional fund raiser for whom he is
working, and a statement that said entity is a professional fund raiser, and a statement that
additional information is on file with the City.
(i) 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.
Sec. 38-48. Exceptions.
The following are excepted from Sections 38-41 through 38-46:
(1) The solicitation of funds for charitable purposes by any organization or
association from its members;
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(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.
SECTION 2. If for any reason any section, paragraph, subdivision, clause,
phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause, phrase,
word or provision hereof to be given full force and effect for its purpose.
SECTION 3. Publication shall be made in the official publication of the City
of Corpus Christi as required by the City Charter of the City of Corpus Christi.
ATTEST:
City Secretary
MAYOR
THE CITY OF
APPROVED: 3 DAY OF Sj ,
JAMES R. BRAY, JR., CITY ATTORNEY
By, i
am
tom"✓
Assity Attorney
a: LN\Misc\003.Ord.ak
KA -CL• -c=, &
US CHRISTI
10
1 hat the foregoing ordinance was read for the first time and passed to its second reading
the , day of G(.tt til St , 19 ' 1 2, by the following vote:
Mary Rhodes
Cezar Galindo
Leo Guerrero
Betty Jean Longoria
Edward A. Martin
Joe McComb
Dr. David McNichols
Clif Moss
Mary Pat Slavik
That the,foyegoing ord' nce was read for thesecond time and passed to its third reading on
this the 5 day of I L uJ 19(f , by the following vote:
Mary Rhodes
Cezar Galindo
Leo Guerrero
Betty Jean Longoria
That the
day of
Edward A. Martin
Joe McComb
Dr. David McNichols
Clif Moss
Mary Pat Slavik
foregoing ordinance was read for the third time and passed finally on this the_Al:
, 19 Q1, by the following vote:
Mary Rhodes
Cezar Galindo
Leo Guerrero
Betty Jean Longoria
Edward A. Martin
(Li, Joe McComb
Dr. David McNichols
Clif Moss
Mary Pat Slavik
PASSED AND APPROVED, this the J5r day ofc__ u ,
Al I'EST:
City Secretary
&Jot --
MAYOR
THE CITY CORPUS CHRISTI
APPROVED: 13 DAY OF j% ' 7 r ,°�-
JAMES R. BRAY,JR�CITY ATTORNEY
By . �, 6 , ant City Attorney
044
021472
PUBLISHER'S AFFIDAVIT
State of Texas, } CITY OF CORPUS CHRISTI
County of Nueces ) ss: Ad #40035
PO #
Before me, the undersigned, a Notary Public, this day personally
came Anna Steindorf, who being first duly sworn, according to
law, says that she is Business Office Secretary of the Corpus
Christi Caller -Times, a daily newspaper published at Corpus
Christi in said County and State, generally circulated in
Aransas, Bee, Brooks, Cameron, Duval, Hidalgo, Jim Hogg, Jim
Wells, Karnes, Kenedy, Kleberg, Live Oak, Nueces, Refugio, San
Patricio, Victoria, and Webb Counties, and that the publication
of NOTICE OF PASSAGE OF ORDINANCE NO. 021472 AND ORDINANCE
REGULATING CHARITABLE SOLICITATION IN THE CITY OF CORPUS CHRISTI
which the annexed is a true copy, was published in the Corpus
Christi Caller -Times on the 7th day of September, 1992.
One Time(s)
$ 69.60
(-Business Offic Secretary/
Subscribed and sworn to before me this 22nd day
of September , 1992.
Notary Public, Nueces County, Texas
My commission expires on 4-24-93
KATHERINE L UREANLri
.,t '-� trntary public
"5 State of Texa
'„4f 0.. 44, My Cern Exp. 4-24-93
4.
is.
ft.
or. NO SS0A� 72
AN E REGULAT-
- ING CH BLE SOLICI-
TAT10111 THE CITY OF
aCORPUS CHRISTI; DEFINING
ral TERMS; REQUIRING REGIS-
TRATION STATEMENTS,
AND POST -SOLICITATION
REPORTS FROM CHARITA-
wi BLE ORGANIZATIONS
SOLICITING IN THE CITY;
PROVIDING FOR SIMPLIFIED
REPORTING REQUIREMENTS
FROM SMALLER CHARITA-
BLE ORGANIZATIONS THAT
DO NOT USE THE SERVICES
OF 'A PROFESSIONAL FUND
RAISER; REQUIRING REGIS-
TRATION STATEMENTS
FROM PROFESSIONAL FUND
III RAISERS; REQUIRING POST -
SOLICITATION WRITTEN
ar DISCLOSURES STATEMENTS
FROM TELEPHONE
SOLICITORS; PROHIBITING
CERTAIN METHODS OF SO-
UCITING FOR CHARITABLE
g PURPOSES; EXEMPTING ma-
c TAiN CHARITABLE
I, ORGANIZATIOppN��S; S REPEAL-
ING SE -40
. THROUGHc3I5S OF 3BTI
t CORPUS CHRISTI CITY CODE
AND SUBSTITUTING.THERE-
- FOR REVISED SCTIONS
a 38-40 THROUGH 38-48;
1, PROVIDING FOR SEVERASILI-
o TY; AND PROVIDING FOR
PUBLICATION.
—
The ordinance was passed
and approved by the City
g Council of the City of
Corpus Christi on the to
day of September, 1992.
/s/ Arma
is tionorvom- ani