HomeMy WebLinkAboutORD FOR INTRO 06-21-93AGENDA.._=
ORDINANCE FOR IKiRODUCTION 1
6-21-93
DATE: JUNE 21, 199,3
Inter-Com
· TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
ORDINANCE NO. 1112 REVISING APPLICATION REQUIREMENTS
PERTAINING TO SOLICITATION ACTIVITIES WITHIN THE CITY
RECOMMENDATION
It is recommended that the City Council take the following actions:
1. Ho&d first reading of Ordinance No. 1112, by title only.
2. Introduce.Ordinance No. 1112.
FISCAL IMPACT
There is no additional direct or indirect fiscal impact anticipated
to result from the adoption or' implementation of Ordinance No.
1112. However, ~nlike other staff intensive review processes, the
City. of Tustin does not currently require an applicant to pay a fee
to cover the costs associated with the processing of most business
license related applications, including solicitation. Staff
administrative costs for such applications are currently estimated
at a minimum of $60.00 each.
BACKGROUND
Article 2~ Chapter 5 of the Tustin City Code provides regulations
describing the requirement for businesses to pay a business license
tax prior to operating within the City. Part of that regulation
provides for an exemption from the collection of a business license
tax for non-profit organizations involved with solicitation for the
purposes of acquiring donations foe charitable purposes. To
qualify as "charitable", the existing City Code requires that an
organization provide certain evidences that the charity is
complying with and is in good standing with existing state law.
The City Code sections describing this evidence were last revised
in 1979.
The City Attorney has recently determined that the City's
Charitable Solicitation permit procedures require revision in order
to conform to current law and has prepared Ordinance No. 1112.
City Council Report
Ordinance No. 1112 - Solicitation
June 21,~1993
Page 2
DISCUSSION
Three significant changes have been proposed which will assist Cit~
staff in reviewing the completeness of solicitation applications
The provisions require an applicant to submit a copy o
the Periodic Report required by the State's AttorneI
General Registrar of Charitable Trusts. The periodi.
report contains in-depth financial information about th.
charity and it evidences that the charity is complyin.
with State law and is in good standing.
The provisions require an applicant to submit a copy o
the Solicitation or Sale for Charitable Purposes car
'required by the Business and Professions Code. The car
must be available to donors for inspection and mus
contain various information, including, the amount of th
donation (usually shown as a percentage) to be used fo
charitable purposes.
A provision has al'so been added that would requ Cit
staff to.act upon a completed application within ~ve (5
days. In response to a 1988 Supreme court case decision
the section requires staff to either issue the license o
request the court to enjoin the organization fro
· operating within the City. To eliminate spuriou
'delaying actions or denials by local agencies attemptin
'to discourage solicitation by certain "undesirable
groups, the court required the licensor (the agency) t
provide the burden of proof in cases where the applican
should not be granted a permit.
Numerous other documents are also required to be submitted
review by staff which are similar to those usually required
understand the "who," "what," "where," and "when" of
organization's plan for solicitation within the City.
Ordinance No. 1112 'has been approved as to form by the Cit
Attorney and has been found to not be a project requiring revie
under California Environmental Quality Act. Therefore, n
environmental review action is necessary prior to Council action o
this item.
A public hearing notice identifying the time, date and location o
the public hearing on this ordinance revision was published in th
Tustin News.
City Council Report
Ordinance No% 1112 - Solicitation
June 25, 1993
Page 3
CONCLUSION
The City Attorney has found portions of the City's Business License
Tax Code sections to be outdated as they pertain to solicitation of
donations for charitable purposes within the City. Ordinance No.
1112 has been prepared to address the City Attorney's concerns and
provide staff a clearer procedure for the processing of such
applications. Therefore, staff recommends the Council have first
reading by title only and introduce Ordinance No. 1112.
Dana Og.~on
Senior Planner
DO: kd\sol ici t.ccr
Assistant City Manager
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ORDINA/~CE NO. 1112
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFOR/~IA, AMENDING ARTICLE 2 OF
THE TUSTIN CITY CODE TO REVISE THE
APPLICATION REQUIREMENTS FOR A PERMIT TO
SOLICIT DONATIONS FOR CHARITABLE PURPOSES
WITHIN THE CITY
The City Council of the City of Tustin finds and determines
as follows:
Individuals or organizations desiring to solicit donations
for charitable purposes within the City of Tustin are
required to obtain a permit from the City by Section 2513b
of the Tustin City Code; and
Bo
The City Council desires to revise the application
requirements and the procedures for obtaining a Charitable
Solicitation Permit to conform to State law.
NOW, THEREFORE, the city Council of the city of Tustin DOES
HEREBY ORDAIN as follows:
Section 1. Article ~, Chapter 5, Part 1 of the Tustin City
Code is hereby amended as follows:
ao
Subsection 2513b entitled "Organizations and Persons
Exempted" is deleted in its entirety and replaced with the
following:
. '"b. Organizations and Persons Exempted.
A license may be obtained without payment of
the usual fee under the provisions of this Section
by the following:
(i)
(2)
Any institution or organization which is
conducted, managed or carried on wholly for
the benefit of charitable, religious,
eleemosynary or benevolent purposes and from
which no profit is derived, either directly or
indirectly, subject to compliance with the
provisions of this Chapter.
Any non-profit organization which engages in
fund-raising ventures, solicitations,
carnivals, fairs or other events, when all of
the net proceeds from the fund-raising
venture, solicitation, carnival, fair or other
event is solely utilized for a charitable or
eleemosynary purpose, and no direct or
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Ordinance No. 1112
Page 2
indirect monetary profit or benefit is derived
by any other person, institution or
organization. However, any person or entity
desiring to solicit donations for a charitable
purpose must first comply with the
requirements set forth in Section 2513f of
this Chapter. In no event shall a
solicitation or event be engaged in within the
City except in conformance with the provisions
of all applicable ordinances of the City
regulating the particular event.
If a portion of the proceeds of the charitable or
eleemosynary fund-raising venture, solicitation,
carnival, fair or other event are to be received
by, or are for the direct or indirect benefit of
any other person, institution or organization, then
the fee which would ordinarily be charged for such
venture, if it were wholly a profit venture, shall
be reduced in proportion to the percentage of the
proceeds which are to be received by any such
person, institution or organization."
Section 2: ~rticle 2, Chapter 2, Part 1 of the Tustin CitY Code
is hereby amended by adding a new Section 2513f as follows:
"f. Charitable Solicitation Permits.
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(l)
(2)
No person shall solicit donations for
charitable purposes within the City without
first obtaining a permit from the Community
Development Department for the particular
solicitation and for the stated purposes and
period provided therein.
A completed application for a permit to
solicit donations for charitable purposes
shall be filed with the Community Development
Department of the City of Tustin prior to
soliciting donations in the City and a permit
issued for such solicitation. The application
shall contain all of the following
information:
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(a) The name and address of the person or
organization;
(b) The State Charitable Trust number;
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Ordinance No. 1112
Page 3
(c)
Name, address, telephone number and birth
date, along with any aliases used, of the
individual in charge of the solicitation;
(d) The purpose of the solicitation;
(e) The type of donations to be solicited;
(f) If the solicitation is for a special
event, the nature of the event and time
and place of the event;
(g) The anticipated beginning and ending
dates of the solicitation;
(h) Whether the solicitation is on behalf of
an organization other than the applicant
and if so, the name, address and business
telephone number of the other
organization;
(i) The method of solicitation to be
utilized;
(j) If paid solicitors are used, the total
estimated cost of fund-raising expenses;
and
(k) The estimated percentage of the amount of
donations which will be used for
charitable purposes.
(1) The names, residential addresses and day
time telephone numbers of all officers
and directors of the applicant;
(m) The names, business addresses and day
time telephone numbers of all agents,
volunteers, solicitors, promoters and
managers to be involved with the
solicitation;
In addition, the applicant shall provide the
following documents, as they apply:
(a) The Articles of Incorporation and By-Laws
of corporations and By-Laws of
unincorporated entities;
Ordinance No. 1112
Page 4 ~
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(b) The Internal Revenue Service Notice of
Tax-Exempt Status;
(c)
The Notice from the California Attorney
General Registrar of Charitable Trusts
confirming registration in good standing
or in the case of a religious corporation
sole, a Certificate of Status of Domestic
Corporation from the Secretary of the
State;
(d) A copy of the most recent Periodic Report
filed with the Attorney General;
* (e)
A copy of the Solicitation or Sale for
Charitable Purposes card which must be
exhibited to prospective donors pursuant
to Business and Professions Code Section
17510.3; and
(f) If the-solicitation is for the benefit of
an organization other than the applicant,
a letter from such organization
authorizing applicant's solicitation.
Upon submittal of the application, the
Community Development Department shall verify
within five (5) working days as to whether the
application is complete. If complete, a permit
will be issued within five (5) working days or the
City will apply to the Court for an order enjoining
the applicant's solicitation. If the Community
Development Department determines that the
application is incomplete, the applicant shall be
notified within five (5) working days of such
determination, along with the specific reasons
therefor. The permit is valid for six (6) months."
* - Not applicable to a corporation solely
organized for religious purposes.
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Ordinance No. 1112
Page 5
PASSED AND ADOPTED at a regular meeting of the City Council held
on the 21st day of June, 1993.
JIM POTTS
MAYOR
MARY E. WYNN
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1112
MARY E. WYNN, city Clerk and ex-officio Clerk of the city
Council of the City of 'Tustin, California, does hereby certify
that the whole number of the members of the city Council of the
city of Tustin is five; that the above and foregoing Urgency
Ordinance was passed and adopted at a regular meeting of the
City Council held on the 21st day of June, 1993, by the
foil.owing vote:
couNCILPERSONS AYES:
COUNCILPERSONS NOES:
CQUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
MARY E. WYNN, City Clerk