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HomeMy WebLinkAboutAmending Chapter 4 Article 4 Code Regulating Charitable Soliciations ! 4 1 ORDINANCE No. 7843-87 Passed by the Common Council of the City of South Bend, Indiana December 21, iq 87 Attest: ( ►--......a- < l -2,-,1-�' City Clerk IRENE K. GAMMON Attest. , .t/F — i2 President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 22, 19 87 `_,- kr „``_' City Clerk IRENE K. GAMMON Approved and signed by me D, / / o2.2 , ,92.2_ � / .7-2---Lis—Mayor 7 • • BILL NO. ORDINANCE NO. 1 ' '43-%f7 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING CHAPTER 4, ARTICLE 4 OF THE SOUTH BEND MUNICIPAL CODE REGULATING CHARITABLE SOLICITATIONS. STATEMENT OF PURPOSE AND INTENT: The Common Council believes that it is the best interest of the citizens of South Bend to regulate charitable solicitations in order to prevent fraud and misrepresentation of purpose. This ordinance amends the charitable solicitation ordinance so that it conforms in all respects with the state statute and with applicable case law. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: SECTION I. Chapter 4, Article 4 of the South Bend Municipal Code is amended as follows: Sec. 4-55, Solicitations, charitable. fa}-Begislative-findings-ef-the-eeunell- f i}-The-eeune:il-flees-hereby-find -determne-and-dee:iare that- a--Numereus-persens-and-erganizatiens-have-been and-are-seiieiting-funds- n-tie-city-en-tie-representatien-that-such €uncle-are-to-be-treed-ter-e:karitabie-purpeses;-which-in-truth-and-in fact-shell-funds-are-being-used-in-iarge-part-ter-the-private-proft of-ul seftipuieus-irieliveluais-premeting-such-selieitatlen- b:-A-variety-ef-frauds-anel-misieading-eleviees-are empleyeel-in-si eh-selietatiens e:--Persens-engaged-lri-the-business-ef-premeting selieitatiens-f ail-te-preperly-aeeeunf-for-funds-seiieifeel- --Telephene-solicitations-by-professional-seliei- ters-and-professional-promoters-are-a-cause-ef-annoyance-te-the ndi- viduais-seiieited-amd -in-many-eases;-tactics-used-by-such-seiieiters ate-eeereive;-abusive-er-misieading- e:-As-a-result-ef-sueh-pefnieieus-aetivites; honest;-deserving-arid-needed-eharities-s iffer- f:-Residents-ef-the-city-lave-been-arid-are-in-een- staut-peril-ef-being-defrauded-and- mposed-ripen-te-a-iaek-ef-adequate regtiiatien-ef-eharitabie-selieitatiens- f2+-Tle-eeuriell-believes-that-if-tie-puelle-were-given fuII-informaton-concerning-tie-solicitations;-it-eetild-prated-it- seif-against-victimization-by-disrepu fable-fund-raisers;-and-tlere- fere-it-is-nee:essary-in-tie-interest-ef-tie-public-welfare-of-tie eity-ter-tie-eeuneii-te-regulate-seiieitatiens-ter-elaritabie purpeses- (ba) Definitions: ( 1) As used in this section: a. Charitable means and includes the words patri- otic, philanthropic, social service, welfare, benevolent, education- al, civic, or fraternal. ;-either-aetual-er-purperted- b. Charitable organization or charity is an organization established for any charitable purpose and includes, but is not limited to, organizations described in Section 501(c) ( 3) of the of the Internal Revenue Code of 1986. 15-eemmissien-means-tie-eharitable-Selieltatiens eemmissien-ef-tie-eity: eb. Contribution means and includes the words; alms, food, clothing, money, property, subscription or pledge, and also donations under the guise of loans of money or property. f'i--F_APIA-Af-1.13.n 1A*4.AA-mpAnst,-4-A-pmAriPP 4A19-w h-A e--East-ef-seiieitatien-means-ali-vests-of-what- ever-nature-ineurred-in-raising-the-funds-seiieited-exeept-bena-fide edueatienai-mateiiai-in-sneh- nstanees-where-the=seiieitatien-pian inveives-the-premetien-er-saie-ef-merehandise-er-an-entertainment event;-the-east-a€-sueh-merehandise-er-entertainment-shaii-net-be-een sidered-as-part-ef-the-east-e€-seiieitatien.---eempensatien-in-what- ever-ferm-paid-te-a-prefessienai-premeter-er-prefessienai-seieiter is-part-e€-the-east-a€-selieitatien- c. Person includes any individual, organization, trust foundation, association, partnership, or corporation. f--Pre€essienai-premeter-means-a-persen-whe;-fer eempensatien;-pians;-premetes;-eendaets;-manages-er-earries-en-er attempts-te-pian;-premete;-eenduet;-manage-er-earry-en-any-drive-er eampaign-fer-the-purpose-ef-seiieitatien-ef-eentribntiens-far-er-en behaif-ef-any-eharitabie-purpeses:--A-bena-fide-a€fieer-er-reguiar empieyee-ef-a-eharitabie-person-shaii-net-be-deemed-a-prefessienai premeter-by-reasen-ef-his-partieipatien-in-eharitabie-seiieitatiens made-by-er-en-behai€-e€-his-empieyef- d. Professional fund raiser consultant means any person who is hired for a fee under an agreement to plan, manage, advise, or act as a consultant, whether directly or indirectly, in connection with soliciting contributions for, or on behalf of, a person or charitable organization but who does not actually solicit contributions as a part of his services. The term does not include a charitable organization or a bona fide officer, employee, member, or volunteer of a charitable organization. ge. Professional solicitor means any-person ether-than-a-prefessienai-premeter-whe-is-empieyed-er-retained-fer eempensatien-te-make-seiieitatiens-in-eenneetien-with-a-eharitabie seiieitatien.---A-bens-fide-effieer-er-reguiar-empieyee-a€-a-ehari- tabie-person-shaii-be-deemed-a-pre€essienai-seiieiter-by-reasen-e€ his-partieipatien-in-eharitabie-seiieitatiens-made-by-er-en-behaif-ef his-empieyer a person who for a financial consideration solicits con- tributions for, or on behalf of, a person or charitable organization, either personally or through agents or employees specifically employ- ed for that purpose. The term does not include a charitable organi- zation or an officer, employee, member, or volunteer of a charitable organization. hf. Religious and-reiigien organization or church means-any an organization whose activity directly invelving involves the promulgation or observance of any system of worship of-te and the building or maintenance of places of such worship. The-wards-reiigieus-and-reiigien-er-ehureh-as-used-herein de-net-ineiude-eharitabie-aetivities-as-defined-herein,-even-theugh earn ed-en-er-spensered-by-a-feiigieus-erganimatien- --Seiieit-and-seiieitatien-means-the-request; direetiy-er-indireetiy;-ef-meney;-eredit;-preperty;-finaneiai-assis- tanee;-er-ether-thing-ef-vaine-en-the-pies-er-representatien-that sneh-meney;-eredit;-preperty;-finaneiai-assistanee;-er-ether-thing-ef vaitle-shaii-be-used-fer-a-eharitabie-purpose;-as-these-purpeses-afe de€fined-in-this-seetien---These-wends-shaii-aise-mean-and-ineiude; but-net-be-iimited-te;-the-feiiewing-metheds-ef-seeuring-sneh-meney; credit;-preperty;-fnaneiai-assistance;-er-ether-thing-ef-vaiue- i7-Any-eras-er-written-request- 2--The-making-ef-any-anneuneement-te-the ieeai-press-er-by-teiephene-eeneefning-a-ieeai-appeai-er-eampaign-te whieh-the-pubiie-is-requestien-te-make-a-eentributien-far-any-ehari- tab fie-purpose-eenneeted-therewith- 3--The-distfibutien;-eireulatien;-pasting-er pnbishing-ef-any-handbiii;-written-advertisement-of-ether-ieeai pubiieatiens7 4 7-The-saie-a€;-er-the-of€er-er-attempt-te seii-any-advertisement;-advertising-spaee;-beak;-eard;-ehanee; eempen;-device;-membership;-merchandise;-subseriptiens;-ticket-er (A) in connection with which any appeal is made for any charitable organization or purpose; (B) where the name of any charitable organization is used or referred to in any appeal made for any charitable organization as an inducement or reason for making a sale described in this subdivision; or (C) when or where in connection with a sale described in this subdivision any statement is made that the whole or any part of the proceeds from the sale will be used for any charitable purpose or for the benefit of any charitable organization. gh. Solicitation shall be deemed to have taken place when the request is made, whether or not the person making the same solicitation receives any contribution referred to in this section. i. Nonprofessional solicitor is a person who volun- tarily and without financial consideration solicits contributions for, or on behalf of, a person or charitable organization. (eb) Exeeptieas-te-this-seetien The following solicitations shall not be subject to the provisions of this section: f}}-Pelitieal-parties;-as-defined-by-Indiana-lava; their-subdivisieas;-and-their-bean-fide-eandidates-far-puelie-effiee are-speeifieaiiy-exempted-frem-and-shall-net-be-subject-to-the previsiens-ef-this-seetea-as-the-intent-ef-this-seetien-is-te regucafe-the-selieitatiea-ef-eharitable-eeatribtttiens- (1)f2} Charitable solicitations which raise less than five hundred dollars ($500.00) in total contributions shall-net-be subject-te-flee-prevseas-ef-this-seetiea. ( 2) Solicitations made by and on behalf of a charitable organization which is conducted solely by members or officers thereof voluntarily and without remuneration, among the established and bona fide membership or the normal constituency or supporters thereof. ( 3 ) Solicitations which are in the form of collections or contributions collected at regular assemblies or services of a charitable organization. ( 4) Solicitations conducted by and for the benefit of churches and other religious organizations. f d}-eharitabie-selieitatien-eemmissien;-membership appeintmeat----Terms-ef-effiee;-remuaeratiea- f}}-There-is-ereated;-fer-the-admiaistratiea-ef-this seetien;-a-eharitable-Selieitatien-eemmissieaT--Members-ef-this eemmissiea-shall-be-appeiated-by-the-Mayer-te-serve-far-pereds-ef fear-f 4}-years- f 2}-,day-vaeaaey-eeeurring-shall-be-f iiied-in-flee-same manner-as-previded-for- a-the-erigiaai-appeiatment-exeept-that-the first-eemmissien-shall-be-appeiated-as-fellews---Three-f3}-of-tl1e members-shall-be-appeinted-far-terms-ef-eae-fl}-Year;-tae-f2}-shall ee-appeiatmeat-far-terms-ef-twe-f2}-years;-aad-tae-f2}-shall-be appeinted-far-terms-ef-three-f3}-Years---Thereafter;-ail-terms-shall be-fer-perieds-ef-feur-f4}-years-as-hereiaabeve-previded7 f 3}-The-members-ef-this-eemmissiea-shall-serve-witheut remuneration-aad-aay-member-may-be-remeved-by-the-Mayer +e+-Same--Qualifieatieas;-emeeptieas- fl}-The-eemmissien-shall-be-eempesed-ef-seven-f7}-mem- bers-and-shall-eeasist-ef-ene-fl}-member-whe-is-an-effieer-of-the Peliee-Bepartment-designated-by-the-ehief-ef-Peiiee-aad-six-f6}-addi- tieaal-members-to-be-appointed-by-the-Mayer;-eae-f}}-ea-reeemmenda- tien-ef-the-St:-3eseph-eeunty-APB-eIe-eetineil;-eae-fl}-en-reeemmea- datien-of-the-Better-Business-Bureau -eae-fl}-ea-reeemmeadatiea-ef the-eeuaeil-ef-ehurehes-of-St--Joseph-eeuaty;-eae-f4i-ea-reeemmea- datiea-ef-the-St--Joseph-earl.aty-Veteran-eemmaaderis-eetiaeii-aad-two f2}-from-the-eitiseary-at-large- f2}-The-Mayer-is-net-required-te-appeint-all-er-any-ef the-eaadidates-se-reeemmended- f3}-Ne-ene-shall-be-appointed-as-member-of-the eemtissien-who-is-the-organizer-er-leeal-bead-ef-nay-eharitable; f}}-The-eemmissien-shall-erganime-by-eleeting-its-ewn e€€leers;-deteEmine-its-time-arid-place-ef-meetings-and-adept-such ether-regulations-as-in-its-own-j.udgment-are-necessary-ter-the-sue- eessful-administration-ef-the-terms-and-eenditiens-ef-this-seetien: Five-f5}-ef-the-members-shall-eenstitute-a-quorum---All-aetiens-ef the-eemmissien-may-be-by-simple-maierity-ef-the-members-except-as etherwise-previded- f2}-The-eemmissien-shall-have-power-te-issue-and-revoke permits-as-hereinafter-provided-and-further;-have-the-power-te-summon witnesses;-take-testimony;-make-investigations;-eenduet-hearings-and de-and-perferm-all-ether-aets-whieh-may-be-neeessary-and-preper within-the-seepe-ef-its-duties-and-funetiens: {-3}-The-eemmissien-shall-give-te-the-public-fall infermation;-frem-time-te-time;-about-its-activities-and-publish-an annual-repent-analyming-the-effectiveness-ef-its-regulations-and-the activities-ef-persens-registered-under-this-seetien- (gc) Solicitation registration; permit;-exeeptien: (1) No person shall solicit contributions within the City for any person-er charitable purpose unless the-person-fen whose-benefit-the-selieitatien-is-eendueted-is-registered-with-the eemmissien-and a permit for such solicitation has been issued by the eemmissien City Controller. f2}-The-prevision-ef-this-seetien-shall-net-apple- a:-Te-and*-selieitatiens-made-by-and-en-behalf-ef-a person-er-charitable-purpose-if-eendueted-by-members-er-effieers thereef-yeluntarily-and-witheut-remuneratien-ter-sueh-selieitatien ameng-the-established-and-bena-fide-membership-thereef-er-the-nermal eenstitueney-er-supporters-thereof;-er b.--If-the-selieitatien-is-in-the-term-ef-eellee- tiens-er-eentributiens-ef-regular-assembly-er-services-ef-such-person er-eharitable-purpese- (hd) Registration-and-pPermit applications: (1) An application for registration and a permit to solicit shall be made to the eemmissien office of the City Controller upon forms prescribed by it. Such application shall be. sworn to or affirmed and filed with the eemmissien Controller not less than sixty-+68+ thirty ( 30) days prior to the time at which permit applied for shah is to become effective; provided, however, that the eemmissien Controller may, for good cause shown, allow the filing of an application less than sixty-+684. thirty ( 30) days prior to the effective date of the registration and permit applied for. ( 2) The application shall contain the following information: a. The name, address or principal office of the person and/or organization applying for the permit. b. If the applicant is not an individual, the names and addresses of the applicant' s principal officers and executives and a copy of the resolution, if any, authorizing such solicitation, certified to as a true and correct copy of the original by the officer having charge of the applicant' s records. c. The purpose for which solicitation is to be made, the total amount of funds prepesed estimated to be raised thereby, and the use or disposition to be made of any receipts therefrom. d--A-specific-statement;-supported-by-facts-and figures;-if-any;-showing-the-need-ter-the-contributions-te-be selieited- ed. The names and addresses of the persons by whom the receipts of such solicitations shall be disbursed. fe. The names and addresses of the persons who has overall responsibility for the solicitation. gf. An outline of the method or methods to be used in conducting the solicitation. hg. The time-when-such-selieitatien-will-be - ---t----A a��e end—else—loevaa—vi—dnst— Aio—*k1P g--The-ameUnt-ef-any-wages;-fees;-ee issiens7 expenses,-er-emeIuwants-to-be-expended.-er-paid-te-any-persex-In eenneetien-with-sueh-selieitatiens;-and-t ie-names-anal-addresses-ef all-sueh-persons---The-ee [tissien-may-eieet-net-te-require-stieh information-as-te-reguiar-staff-er-eharitable-organzations-main- taining-a-permanent-effiee-in-the-eity- k--A-finaneiai-statement-fer-the-past-preeeding fiseai-year-ef-any-fu nets-eelleeted-far-eharitable-purposes-by-the applieant;-the-statement-giving-the-amount-ef-menu*-se-raiseel; together-with-the-east-ef-raising- tr-and-final-a-distribution thereof lh. A full statement to the effect that if registration and a permit is granted, it will not be used or represented in any way as an endorsement by the City or by any department or officer thereof. mi. A fuli statement of the eharaeter kind and extent of the charitable work being done or to be done by the applicant;-the-statement-giving-the-amount-ef-money-raised;-together with-the-east-ef-raising- t7-anal-final-distribution-thereof and the estimated percentage of the solicited funds which will be used directly for such charitable work. nj. Such other information as may be reasonably required by the eermmissien Controller in order fer-it to determine the kind,-eharaeter -anal method of the proposed solicitation;-anal-whether-sueh-selieitatien-is-in-the-interest-ef; anal-net-inimieal-te;-the-safety;-eenvenienee;-er-welfare-ef-the resdents-ef-the-eity and whether such solicitation involves misrepresentation or fraud. k. If a professional fund raiser consultant and/or a professional solicitor is to be used, his/her name and address, written proof of registration with the state of Indiana pursuant to I .C. 23-7-8-1, et seq. , and a copy of the contract between professional and the applicant. 1. The estimated percentage of the solicited funds which will used directly for charitable purposes. m. The estimated percentage of the solicited funds which will be retained in the city. ( 3) If, while any application is pending, or during the term of any permit granted thereon, there is any substantial change in fact, policy or method that would materially alter the information given in the application, the applicant shall notify the eerm+nissien Controller in writing thereof within seventy-two (72) hours after such change. Should the applicant fail to so notify the eeissien Controller, any permit issued to the applicant prior thereto shall stand suspended until a hearing is had pursuant to subsection (v1) . (ie) Permit anal-registratien fees: (1) Eaeh-person-registered-far-eaeh-applieant;-at-the. time-a f-application-fer-registration-anal-permit-shall-pay-te-the-een- treller-ef-the-eity-a-fee-fixed-by-the-eeissien-which-shall-net-be Tess-than-one-dollar-f$l-8A}-nor-mere-than-five-hundred-dollars +$589-88} The permit fee for solicitations involving professional fund raiser consultants and/or professional solicitors shall be fifty dollars ( $50.00) . (2) The-eemmissien-shall-establish-a-sehedtzle-ef-fees based-upen-the-amount-raised-by-selieitatiens-en-behalf-ef-the-persen during-its-preeeding-fiseal-year-anal-the-eity'-s-total-expense-of-regu- lating-eharitable-selieitatiens-during-the-preeeding-ealendar-year The permit fee for solicitations which do not involve professional fund raiser consultants and/or professional solicitors shall be twenty-five dollars ( $25.00) . +i}-Investigation-ef-app lieatiens7-aeeess-te-reeerds fl}-The-ee issien-shall-examine-all-applieatiens-filed tinder-sueseetien-fr}-anal-make;-er-eause-to-be-made;-sueh-further investigation-ef-the-applieatien-anal-the-applieant-as-the-eertissien deems-neeessary-in-order-far-it-te-perform-its-duties-tinder-this (kf) Standards for granting permit; notice of denial of permit: (1) The eemmissien Controller shall grant-the-regis- tratiea-and issue a charitable solicitation permit as-previded-in subseetien-fr} whenever he/she €iads-er-reaseaably-believes determines that: a. All of the statements made in the application are true. b:-The-applicant;-er-i€-the-applicant-is-net-an individual-persea;-that-its-managing-e€€leers-and-managing-agents;-be e€-geed-eharaeter-and-have-a-reputatiea-€er-heaesty-aad-integrity: e:-The-ieeai-eentrel-and-supervisiea-e€-the seiieitatien-wiii-be-under-ieeai;-respensible-aad-reliable-persens- db. The applicant is not engaged in any fraudu- lent transaction or enterprise. ec. The solicitation will not be a fraud on the public. €d. The solicitation is prompted solely by a desire to finance the charitable cause described in the application, and will not be conducted primarily for private profit. q--The-rest-e€-selieitatiea-aadfer-premetiea shall-be-reaseaable-aad-shall-net-exeeed-a-reaseaable-pertiea-e€-the reeeipts-to-be-realized-€rem-the-selieitatiea---Whenever-any-pre€es- senal-premeters-er-pre€essieaal-selieiters-are-empleyed-ia-eeaaee- tien-wth-the-selieitatiea;-a-eepy-e€-the-eentraet-between-the-appli- eant-aad-saeh-pre€essieaal-premeters-er-pre€essieaal-selieiters-shall be-submitted-te-the-eemmissien-with-the-applieatiea-€er-registratien aad-permit-ia-order-that-the-eemmissien-may-determine-whether-the eentraet-is-in-eempliaaee-with-the-previsieas-e€-this-seetien- h--That-the-kind;-eharaeter-aad-metheds-e€-the prepesed-selieitatiea-are-saeh-that-the-selieitatiea-will-be-in-the interests-e€-aad-net-iaimieal-te-the-sa€ety;-eenveaieaee-er-wel€are e€-the-residents-e€-the-eity7 ( 2) The-eemmissiea-shall-€ile-with-its-seeretary-€er publie-iaspeetien-a-written-statement-e€- ts-€findings-e€-€net-aad-its deeisiea-open-eaeh-agglieatiea---1€-the-applieatea-is-denied;-the eemmissien-shall-aeti€y-the-applicant-by-eerti€led-mail;-return reeeipt-requested;-at-the-address-given-ia-the-applieatiea;-stating the-reasens-there€er A copy of each application, permit and all supporting documentation shall be available at the Controller' s Office for public inspection for a period of not less than three ( 3) years after the effective date of the permit. fl}-bimitatiea-e€-east-e€-selieitatiea:--The-rest-a€-seliei- tatien-€er-a-eharitable-selieitatiea-shall-net-exeeed-a-reasonable pertien-e€-the-grass-ameuat-realized-€rem-saeh-selieitatiea-a€ter-de- duetien-e€-the-rest-e€-premetiea---east-e€-selieitatiea- a-exeess-e€ twenty-€ive-f25}-pereent-e€-the-grass-ameuat-realized-€rem-the-seliei- tatiea-a€ter-the-deduetiea-a€-eests-a€-premetien-shall-establish-a prima-€aeie-ease-that-the-rest-a€-selietatiea- s-unreasonable: fm}-himitatien-en-east-a€-premetiea---The-eest-a€-premetiea €er-a-eharitable-selietatiea-shall-net-exeeed-a-reasonable-pertien e€-the-grass-amount-realized-€rem-all-events-held-aad-publieatieas; debts-aad-serviees-sold;-given-away-er-used-as-prizes-in-eenaeetien with-the-selieitatiea:--sect-a€-premetien-in-exeess-e€-seventy-€five f75}-pereent-e€-the-grass-amount-realized-€rem-saeh-events;-pabliea- tiens;-grads-and-servees-shall-establish-a-prima-€aeie-ease-that-the east-a€-premetien-is-unreaseaable- (ne) Misrepresentation in solicitation: (1) No person shall directly or indirectly solicit con- tributions €er-any-purpese by misrepresentation of his name, occupation, financial condition, social position, residences er • principal place of business or any other fact. No person shall make or cause to be made any misstatement, deception or fraud in connection with any the solicitation of any contributions for any-purpese-in-the-eity, or in any application or report filed under ( 3) No charitable organizationj_ er professional fund raiser consultant or professional or non-professional solicitor shall solicit funds by the use of statements or materials that would indicate that such funds were being raised for an a person or organization er-agency-frem-whieh-sueh-erganiEatien-er-agency without explicit written permission from that person or organization for the wising solicitation of such funds has-net been-received-in-aeeerdanee-with-ether-grevisiens-ef-this-seetien. (4) A professional fund raiser consultant or a professional solicitor or any person who is employed to solicit or act on behalf of a professional fund raiser consultant or professional solicitor shall disclose at the time of the solicitation and before the donor agrees to make a contribution: a. The person or charitable organization that is being represented; b. That the person soliciting the contribution is, or is employed by, a professional fund raiser consultant or a professional solicitor, and that the professional fund raiser consultant or professional solicitor is compensated; c. The percentage of the charitable contributions which is to be received by the charity or the fee or compensation to be received by the professional consultant or solicitor. (ef) Books and records required. No person shall solicit any contributions for any charitable purpose without maintaining a an accurate system of accounting whereby all donations to-if received and all disbursements by-it made are recorded and such records retained for not less than three ( 3) years entered-upen-the effieial-becks-er-reeerds-of-the-person:s-treasurer-er-e her financial-effieer after the solicitation and disbursement have been completed. (gg) Report to eemmissien Controller required. All persons to whom permits are registered-and issued permits under this section shall furnish to the eemmissien Controller within sixty ( 60) days after the solicitation has been completed, a report and financial statement showing the amount raised by the solicitation, the amount expended in collecting such funds, including a report of the wages, fees, commissions and expenses; paid to any person in connection with solicitation, and-tie-disgesitien-of-the balance-ef-tie-funds-eelleeted-by-the-selieitatien the total amount used directly for charitable purposes and the amount to be used for charitable purposes in the City. In the case of charitable organizations maintaining a permanent office in the City, the wages of regular full-time staff employees may be entered as a total figure. The entire report filed-by-the-person shall be available for public inspection. The permit holder shall make available to the eemmissien Controller, or to any person designated in writing by the eemmissien Controller, as-its-representative-fer-such purpose; all books, records and papers by which whereby the accuracy of such report may be verified. (qh) Registraiien-and-PPermit content; identification card; not transferable or assignable: (1) Registratiens-andpPermits issued under this section shall bear the name and address of the person to whom the permit is issued, the serial number of the permit, the date issued, the dates within which the permit holder may solicit, and a statement that the permit does not constitute an endorsement by the City or by any of its departments, officers or employees of the purpose or of the persons conducting this the solicitation. All permits must be signed by the chairman-ef-the-eemmissien-and-by-the-Mayer Controller. ( 2) Each permit holder shall provide to each solicitor ef-the-eharitable-erganizatien-will-be-previde4-with an information card or similar identification signed by the person having control and supervision of the solicitation. The card or identification shall carry on its face the name and address of the person to whom fiAftmq C9iirina (3) A Any permit issued by the eemmissien Controller under this section shall is not be transferable or assignable. fr}-Hetiee-ef-intent;-filing;-time-limit,-eentent;-waiver- fl}-Any-person;-emeegt-churches-and-their-directly-een- neeted-ageneies;-desifing-te-cenduet-a-charitable-selieitatien-er-en where-behalf-a-charitable-selieitatien-is-te-be-eendueted-shall-file; at-least-sixty-f6A}-days-prier-te-the-eemmeneement-thereef;-with-the eemmissien;-a-netiee-ef-intent-eentaining-the-following-infermatien: a--The-prepesed-use-ef-the-net-preeeeds-ef-the selieitatien-under-the-general-headings-required-far-repents-under subsectien-fa05}-ef-this-seetien: b--The-manner-in-which-the-selieitatien-shall-be eendneted;-and-an-estimate-ef-the-cast-ef-selieitatien-and-the-east ef-premetien;-if-any;-and-ef-the-net-preeeeds-expected-far-the eharitable-purpese- e--lf-a-paefessienal-pfemeter-ef-any-prefessienal selieiter-is-te-be-employed;-a-espy-ef-the-eentraet-of-eaeh- d--A-certified-espy-ef-the-reselutien-ef-ether aetien-autherining-the-selieitatien- e---A-repent-ef-all-the-receipts-ef-the-person during-his-preeeding-fiseal-year-er-all-ef-his-reeeipts-frem-seliei- tatiens-during-the-mast-reeent-year-in-which-a-eharitable-selieita- tien-was-eendueted-by-of-en-behalf-ef-sueh-eharitable-persen---Sueh repent-shall-shew-the-grass-amennt-raised-by-selieitatien;-during-the period-eevered;-what-pertien-thereof;-if-any;-is-attributable-to-pre- metienal-aetivities;-the-east-ef-prometien;-the-east-ef-selieitatien and-the-amounts;-if-any;-paid-te-each-prefessienai-premeter-and-pre- fessienal-selieiterT--The-repent-shall-alse-shew-what-pertien-ef-the preeeeds;-if-any;-was-alleeated-fer-leeal-use-and-what-pertien;-if any-was-alleeated-te-a-natienal-erganimatien- f2}-The-prepertiens-alleeated-respeetively-to-leeal-use er-te-a-natienal-erganimatien-shall-each-be-brehen-dawn-in-the-repent under-the-following-eategeries-insofar-as-they-are-applicable-er among-such-ether-eategeries-as-may-be-approved-by-the-eemmissien- a:-Ageney-administratien- b--lnfermatien-and-publie-edUeatien-aetivities: e--Seeial-serviee: d--Hespital-ease- e--Hdueatienal-institutiens- f:-Researeh- g--ether-civic-er-phi}anthrepie-purpeses- h--eapital-imprevements: The-Semmissien-may;-in-its-diseretien;-waive-the-filing-ef-such-state- ments-as-are-duplicated-substantially-by-repents-alfeady-en-file-pur- suant-te-this-subsection-er-te-any-ether-subseetien-ef-this-seetien: (si) . Written receipt required; exception: (1) Any person receiving money or anything having a value of one dollar ($1.00) or more from any contributor under a soli- citation made pursuant to a permit granted under this section shall give to the contributor, upon request, a written receipt signed by the solicitor showing plainly the name and permit number of the per- son under whose permit the solicitation is conducted, the date, and the amount received. ( 2) This subsection shall not apply to any contribu- tions collected by means of a closed box or receptacle used in solici- tation with-the-written-approval-ef-the-cemmissien;-where-it-is impractical-te-determine-the-amount-ef-such-eentributiens. (ti) Denial of application permit; hearing; repent decision; review: (1) The Controller may deny a permit for any of the following causes: (a) The application contains fraud, misrepresentation or false statement; (b) The applicant is engaged in fraudulent • (12) If the eemmissien Controller defies-an applleatieR-fer-registEatiea-and a permit it he/she shall notify the applicant within five ( 5) days of its the decision and the grounds therefor by certified mail, return receipt requested. Within five ten (510) days after the receipt of such notification, the applicant may file a written request with the Board of Public Works for public hearing on the application;-tegethef-with exeeptiens-te and the grounds upon which the eemmissien Controller based its the denialef-the-applieatief. (23) Upon the filing of such request the Commission Board of Public Works shall fix a time and place for the hearing, which shall be held within fifteen-445} ten (10) days after the request is filed, and shall notify the applicant thereof of same by personal service which shall be certified or by certified mail, return receipt requested. At the hearing, the applicant may present evidence in support of his application and-exeeptiens. Within ten +IA} five ( 5) days after the conclusion of the hearing, the eemmissien Board of Public Works shall render a written repent either decision granting or denying the application and shall state the grounds upon which the decision is was based. (3 ) A copy of the repent decision shall be served by certified mail, return receipt requested, upon the applicant. The report-shall-eenstitute-a-publie-reeerd- (uk) Review-ef-aetiea;-preeedure;-appeal-te-eourts Judicial review: fl)- Any action taken by the eemmissien Board of Public Works shall be final for purposes of judicial review. exeept-that-any-person-er-applcant-may-appeal-te-the-Mayer-for-a review:--The-Mayer;-at-his-diseretien;-may-review;-amend;-modify; affirm-er-reverse-a-eemmissien-aetief---The-appeal-shall-be-taken within-twenty-4.20}-days-after-the-deeisien-ef-the-eemmissien eemplained-about-is-mailed-te-the-applicant-er-eharitable-persen- Any-appeal-shall-be-intiated-by-filing-a-written-netiee-ef-appeal with-the-Mayer-and-a-eepy-with-the-eemmissief;-setting-forth-the deeisien-appealed-from-the-reason-why-the-appellant-feels-the deeisien-is-errefeeus---The-Mayer-may-adept-rules-establshng preeedures-fen-hearing-appeals-taken- f2}-Any-person-elaiming-te-be-preiudieed-by-aetien-ef the-eemmissien-er-ef-the-Mayer-under-this-seetien-may-appeal-te-the St--Joseph-eeunty-eireuit-er-Superior-eeurt-te-reverse-sueh-aetien- The-appeal-shall-be-limited-te-the-elaim-that-the-eemmissien-er-Mayer has-violated-the-appellants-eenstitutienal-rights;-has-feted-in exeess-ef-its-iurisdietien;-er-has-feted-unreasonably;-arbitrarily and-beyend-the-limits-ef-its-reasonable-diseretief- f3}-The-members-ef-the-eemmissien-and-the-Mayer-shat} net-be-liable-for-damages-er-for-any-elaim-against-them-as ndividuels-beeause-ef-aetien-taken-by-them-in-perfermanee-ef-their duties-under-this-seetien- f4.}-This-seetien-shall-be-liberally-eenstrued-te aehieve-its-pufpese7 (v1) Suspension or revocation of permit; netiee;-hearing; eaneellatien-ef-suspenson; notice of to Chief of Police: (1) Suspension or revocation of a permit issued under this section shall be pursuant to section 4-16 of this chapter. Whenever-it-is-shown-er-whenever-the-eemmissien-has-reason-te believe-that-any-person-registered-under-this-seetien-has-vielated amy-ef-the-previsions-thereof;-er-that-any-promoter;-agent-er selieitef-ef-a-permit-heldef-has-misrepresented-the-pUfpese-ef-the selieitatien;-the-eemmissien-shall-immediately-suspend-the-permit-and give-the-permit-helder-written-netiee-in-pefsen-er-by-eeftified-mail return-receipt-requested;-ef-the-suspensien-and-ef-a-hearing-te-be held-within-seven-f7}-days-of-sueh-suspension-te-determine-whether-er net-the-permit-sheuld-be-reveked:--This-netiee-must-eentain-a statement-ef-the-faets-upon-which-the-eemmissien-has-feted-in suspending-the-permit- ��.e_b -�mo_,�om �-kP,��7P --and-any-ether f3}-lf7-after-sueh-bearing;-the-eemmissien-finds-that this-artiele-has-been.-violated-er-the-purpose-ef-the-selieitatien-has been-misrepresented;-it-shall;-within-two-f2}-days-after-the-Meeting; fife-in-its-effiee-for-publie-inspeetien-and-send-to-the-permt helder-by-registered-mail;-er-serve-him-in-any-manner-previded-by generai-law-for-the-serviee-ef-netiees;-a-written-statement-ef-the fbets-upon-which-it-bases-sueh-a-finding-and-immediately-revoke-the permits: f 4}-lf;-after-the-hearing;-the-Commission-Beard- ef-Pubiie-Works-finds-that-this-artieie-leas-net-been-vieiated-and-the purpese-ef-the-selieitatien-leas-net-been-misrepresented;-it-shall within-two-f2+-days-after-the-hearing;-give-to-the-permit-bolder-a written-statement-eaneeiiing-the-suspension-of-the-permit-and-stating that-ne-vieiatien-er-misrepresentation-was-feund-te-have-been eemmitted- (52) In-all-eases-where-a-sUspensien-of-the permit-eeeurs; The Controller shall notify the Chief of Police shall-be-notified immediately by-the-eemmissien of the suspensionj_ er revocation or reinstatement of any permit issued under this section. In-like-manner;-the-eemmissien-shall mmediately-notify-the-ehief-ef-Peliee;-subsequent-to-the-hearng-ef the-deeisien-ef-the-eemmissien- (wm) Penalty. Any person, or any agent, servant, employee or officer thereof;-violating who violates any of the provisions of this section, or who aids or abets in the procuring of a violation of any provision, part or portion of this section, or who causes to be filed an application for a permit which contains false or fraudulent statements of fact, shall be deemed in violation of this section. Upon conviction, he shall be fined not less than fifty dollars ($50. 00) ner or more than ene-thousand-dollars-0179e(9:e9). two thousand five hundred dollars ( $2,500.00) for each offense. Each violation-shall-be-deemed-a-separate-offense;-and-eaeh-aet-in violation of this section shall constitute a separate offense and be punishable as such. SECTION II . Chapter 13 , Article 1, of the Municipal Code of South Bend , is deleted in its entity and reserved for future use. SECTION III . Nothing herein shall affect rights and liabilities accrued prior to the effective date of this ordinance. SECTION IV. If any portion of this ordinance shall be declared illegal or unconstitutional, that determination shall not affect the balance thereof. SECTION V. This Ordinance shall be in full force and effect after its passage by the Common Council, approval by the Mayor and legal publication.. (/ Jr embe . of Common ounc: ORD/1 ...I_ _I ■__ Ai__i_i- Alt!__ - CITY of SOUTH BEND ' ROGER O. PARENT, Mayor COUNTY CITY BUILDING SOUTH BEND, INDIANA 46601 December 2, 1987 Michael L. Vance 219/284-9742 Director, Administration and Finance Mr. Joseph T. Serge President South Bend Common Council 4th Floor County-City Building South Bend, IN 46601 Dear President Serge: The enclosed ordinance is being filed for first reading at the December 7, 1987, Council meeting. The ordinance amends Article 4 of Chapter 4 of the City of South Bend Municipal Code regarding the regulation of charitable solicitations. The ordinance is being filed to amend the code in such a manner as to bring it into compliance with the current case law concerning charitable solicitations. Recent changes in the law and case decisions that have been reached severly question the ability of a city to regulate charitable solicitations to the extent of the current ordinance. No longer may cities limit or specify the amount of solicitation proceeds that may be paid to a fundraiser as his fee. Additionally, the City may no longer legislate that a specific percentage of charitable contributions generated by a professional fundraiser go to the charity. While that provision has previously been the mainstay of the existing ordinance, the United States Supreme Court has recently found that provision to be unconstitutional. Finally, the City' s authority in rejecting or revoking permit applications will be limited to finding fraud on the face of the application and fraud in the solicitation of funds. While the amendments being offered to the ordinance are detrimental to the charitable solicitation process, the City of South Bend's Legal Department has researched and notified us that the ordinance will not stand as it currently exists, and if we are to have any enforcement ability, the code must be amended as the ordinance provides. If you have any questions, please feel free to contact my office or speak with Carolyn Pfotenhauer of the City Attorney' s staff. Sincerely, Michael L. Vance Director, Administration and Finance MLV/rds IlnmmtttrE Erport - Wu the Qlmmmn Mound' of tip flit) of uut 3�rrcd: Your Committee of the Whole to whom was referred BILL NO. 135-87 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING CHAPTER 4, ARTICLE 4 OF THE SOUTH BEND MUNICIPAL CODE REGULATING CHARITABLE SOLICITATIONS. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable. Ann B. Puzzello Chairman FR[[ ■ICU$ aoliap PUUIISHING CO.