For the purpose of this article, the following words are defined and shall be construed as hereinafter set forth unless it shall be apparent from the context that they have a different meaning:
Charitable
shall include the words "philanthropic," "social service," "benevolent," "patriotic," either actual or purported.
City council
shall mean the city council of the City of Costa Mesa.
Contribution
shall include the words "alms," "food," "clothing," "money," "property," or "donations" under the guise of a loan of money or property.
Department
shall mean the department of finance or such other department of the city as the city council may, by resolution, designate.
Persons
shall include an individual, groups of individuals, firms, associations, corporations and foundations.
Promoter
shall mean any person who, for pecuniary compensation or consideration received or to be received, solicits or is engaged in the business of or holds himself out to the public as engaged in the business of soliciting contributions for or on behalf of any other person or any charitable association, corporation or institution, or conducts, manages or carries on or agrees to conduct, manage or carry on or is engaged in the business of or holds himself out as engaged in the business of conducting, managing or carrying on any drive or campaign for any such purpose; provided, however, that "pecuniary compensation" or "consideration" as used herein shall include, but shall not be limited to, participation on a percentage basis in any fund solicited, or raised, for or on behalf of any other person, firm, association or corporation; provided further, that no person who is bona fide paid officer or employee of any organization endorsed by the city council shall be considered promoter within the meaning of this article.
Solicitation
shall mean and include the following:
(1) 
Any oral or written request.
(2) 
The distribution, circulation, mailing, posting or publishing of any handbill.
(3) 
The making of any announcement to the press, over the radio or 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 for any charitable purpose connected therewith.
(4) 
The sale of, offer or attempt to sell, any advertisement, advertising space, book, card, chance, coupon, device, magazine, membership, merchandise, subscription, ticket or other thing in connection with which any appeal is made for any charitable purpose or the name of any charity, philanthropy or charitable association is used or referred to in any such appeal as an inducement or reason for making any such sale, or when or where in connection with any such sale, any statement is made that the whole or any part of the proceeds from any such sale will go or be donated to any charitable purpose or association.
A "solicitation" as defined herein shall be deemed completed when made, whether or not the person making the same receives any contribution or make any sale referred to in this chapter.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall solicit, nor shall any officer or member of any association authorize any person to solicit, any contribution for any charitable purpose unless at least 30 days prior to the beginning of each solicitation there shall have been filed with the department of finance, on a form furnished by the department of finance, by such person or association upon whose behalf the solicitation is made written notice of intention to solicit such contribution, which notice shall contain complete information as follows:
(a) 
The purpose and dates of the solicitation and use of the contribution to be solicited.
(b) 
A specific statement, supported by reasons and, if available, figures showing the need for the contribution proposed to be solicited.
(c) 
The character of such solicitation and how it will be made or conducted.
(d) 
The expenses of the solicitation, including salaries and other items, if any, regardless of from what funds such expenses are payable.
(e) 
What portion of the contributions collected as a result of the solicitation will remain available for application to the specific purposes declared in the notice of intention as the object of the solicitation.
(f) 
A specific statement of all contributions collected or received by such person or association within the calendar year immediately preceding the filing of such notice of intention. The expenditures or use made of such contributions, together with the names and addresses of all persons or associations receiving salaries, wages, compensation, commissions or emoluments from such contributions and the respective amounts thereof.
(g) 
The names and addresses of the officers and directors of any such association for which the solicitation is proposed to be made.
(h) 
A copy of the resolution, if any, of any such association authorizing such solicitation, certified to as a true and correct copy of the original of such resolution by the officer of the association having charge of the records thereof.
(i) 
A statement that the signers of such notice have read and are familiar with the provisions of this chapter and will require all solicitors engaged in such solicitation to read and be familiar with all applicable sections of this chapter prior to making any such solicitation.
(Ord. No. 74-69, § 2, 1-7-75)
There shall be filed with the department of finance with such notice of intention a statement of any agreement made with any agent, solicitor, promoter, manager or conductor of such solicitation, together with a copy of each agreement which may be in writing. Within 24 hours after any change in any such agreement or the making of any new or further agreement, a true copy of such change or agreement, if in writing, or if not, written details thereof, shall be filed with the department of finance. Whenever, in the opinion of the city council, the notice of intention filed with the department does not disclose sufficient information for the public concerning the facts hereinabove required to be stated in such notice or concerning the person or association making such solicitation or on whose behalf such solicitation is made, then, upon the request of said city council, there shall be filed, in writing, within 48 hours after such request, any additional information as may be required by the city council upon the foregoing subjects. Provided, however, that the city council, for good cause, may extend the time for filing such additional information. The notice of intention and such additional information if requested, shall be signed by such person intending to make the solicitation, or if by or on behalf of any association, by at least two officers of such association and shall be open to the inspection of the public.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall solicit any contributions for or on behalf of any charitable association unless such association is maintaining a system of accounting whereby donations to it and all disbursements made by it are entered upon the books or records of its treasurer or other financial officer.
(Ord. No. 74-69, § 2, 1-7-75)
Within 30 days after the filing of the notice of intention as provided for in section 9-221, the department shall issue to all solicitors information cards, which cards shall show:
(a) 
The pertinent facts set forth in the notice of intention required under section 9-221 of this chapter.
(b) 
Any additional information obtained, in the opinion of the city council, as shall be of assistance to the public to determine the nature and worthiness of the purpose for which the solicitation is made.
(c) 
That same is issued as information for the public and is not an endorsement.
(1) 
The city council may, pursuant to section 9-234, omit this provision and state that they endorse such charitable association.
No person shall solicit any contributions unless he exhibits the information card provided for in this section and reads it to the person being solicited or presents it to said person for his perusal, allowing him sufficient opportunity to read same before accepting any contribution so solicited.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall solicit in the name of or on behalf of any charitable association unless such solicitor has:
(a) 
Written authorization of two officers of such association, a copy of which shall be filed with the department, and which authorization and copy shall each bear a specimen signature of the solicitor. Such written authorization shall expressly state on its face the period for which it is valid, which shall not exceed 90 days from the date issued.
(b) 
Such authorization with him when making solicitations and exhibits the same on request to persons being solicited or police officers or agents of the department.
No person shall use the name of any association in charge or control of any charitable activity in any solicitation without having written permission from such association.
(Ord. No. 74-69, § 2, 1-7-75)
Every person soliciting any contribution for any charitable purpose must file with the city council within 30 days after the close of any such solicitation or within 30 days after a demand therefor by the city council, a report stating the contributions secured from or as a result of any such solicitation, and all expenses of or connected with the solicitation, and in detail showing exactly for what uses and in what manner all such contributions were or are to be disbursed or distributed. Every such report shall be made on forms to be furnished by the department and signed by the persons or association filing or obligated to file the notice of intention; and the report, if made by an association, shall be signed by at least two officers thereof. Provided, when any such solicitation is made by such association, the report shall be filed only by the association and not by an individual solicitor engaged in the solicitation.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall use in soliciting or give to any person a fictitious name or an alias or any other than his full, true and correct name, or make any solicitation without at the time giving to the person being solicited his own full true and correct name, nor shall he impersonate any other person in making such solicitation.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall make or perpetrate any misstatement, deception or fraud in connection with any solicitation of any contribution for any charitable purpose.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall solicit any contributions by printed matter or published article, or over the radio, television, telephone or telegraph, unless such publicity shall contain the data and information required to be set forth on the information card required by section 9-224, provided, when any solicitation is made by telephone, the solicitor shall present to each person who consents, or indicates a willingness to contribute, prior to accepting a contribution from said person, such information card or a true written copy thereof.
(Ord. No. 74-69, § 2, 1-7-75)
No person shall solicit any contribution for any charitable purpose unless such person shall tender to each person making a contribution a written receipt signed by the solicitor which contains, in addition to a description of the amount and kind of the contribution, substantially the following information:
(a) 
The name of the association, if any, in whose name or upon whose behalf the solicitation is made.
(b) 
A statement as to whether the contribution solicited is to be applied for the general purposes of such association, if any, or for specific purposes, and if for specific purpose, the nature thereof shall be clearly stated.
(c) 
A statement that the information card, issued by the department, was presented to the person making the contribution for his perusal prior to receipt by the solicitor of the contribution receipted for. Provided, however, that no receipt shall be required if the donation of money is made by placing of the same in an enclosed receptacle of a kind previously approved by the city council in such manner that it is impracticable to ascertain either the amount donated or the name of the donor, and if an inscription shall be conspicuously attached to such receptacle containing in legible writing a copy of the information card issued by the department and the statement required to be set forth in the receipt referred to in this section, except the statements regarding the information card, and if such receptacle bears a number or other marks of identification and if a written list showing by number the location or name of the solicitor in charge of each receptacle, if there be more than one such receptacle, shall have been previously filed with the department. Provided, further, that no receipt shall be required for any donation of money in an amount less than one dollar ($1.00).
(Ord. No. 74-69, § 2, 1-7-75)
(a) 
No person shall solicit any contribution for any purpose by means of any box or receptacle upon any public street, sidewalk or way or in any public park or in any publicly owned or controlled place except by the express written permission of the city council. A permit shall be denied only if the information furnished to the city council discloses fraud or if the solicitation as planned would interfere with the public convenience and safety.
(b) 
No person shall solicit any charitable contribution, or any contribution for any real or purported charitable purpose, by means of any box or receptacle in any place immediately abutting upon any public sidewalk or way, or in any place of business open to the public, or in any room, hallway, corridor, lobby or entranceway, or other place of public resort, without first filing with the department a notice of intention as required by section 9-221, and every person so soliciting must in all other respects comply with the provisions of this chapter.
(Ord. No. 74-69, § 2, 1-7-75)
(a) 
No person shall for pecuniary compensation or consideration conduct or make any solicitation by telephone for or on behalf of any actual or purported charitable use, purpose, association, corporation or institution.
(b) 
The provisions of subsection (a) hereof shall not apply to any communications by telephone between persons personally known to each other.
(Ord. No. 74-69, § 2, 1-7-75)
(a) 
The provisions of this article, except sections 9-220 and 9-228, shall not be applicable to any solicitation made, nor to any solicitation for the relief of any individual specified by name at the time of the solicitation where the solicitor represents in each case that the entire amount collected, without any deduction whatever, shall be turned over to the named beneficiary, nor shall they be applicable to any association soliciting contributions solely from persons who are members thereof at the time of such solicitation, nor shall they be applicable to solicitations made solely for evangelical, missionary or religious purposes. Provided, however, that in any case where it shall come to the attention of the city council that any solicitation has been or is being or intended to be made for evangelical, missionary or religious purposes, but in such manner as, in the opinion of the city council, is calculated to give or may give the impression to the person or persons solicited in any such solicitation or to the public that the purpose of such solicitation is either in whole or in part charitable, then the city council, if in its opinion the public interest will be subserved thereby, shall investigate the matter of such solicitation and give publicity to its findings thereon in such manner as it may deem best to advise the public of the facts of the case.
(Ord. No. 74-69, § 2, 1-7-75)
The city council shall have the following powers:
(a) 
To investigate the allegations of notice of intention or any statement or reports.
(b) 
To have access to and inspect and make copies of all books, records and papers of any person, by or on whose behalf any solicitation is made.
(c) 
To investigate at any time the methods of making or conducting any solicitation.
(d) 
To publish results of any investigation provided for or authorized in subsections (a), (b) and (c) of this section.
(e) 
To give such publicity to any such results by such means as may be deemed best to reach the general public and persons interested.
(f) 
To request return of information cards to the city council upon completion of solicitation for which they are issued or at the expiration of the period for which they are valid.
(g) 
Upon receipt of additional information which, in the opinion of the city council, shall render incorrect any statement set forth in any such information card, the city council shall recall every such information card and amend or correct the same or issue in lieu thereof a new information card amended or corrected in accordance with such additional information, and that upon receipt of notification to return any information card for amendment or correction or new issue, as above provided, the association or person who filed the notice of intention for the solicitation for which any such card was issued must present such recalled information card to the department within 48 hours from the time of receipt of said notification.
(h) 
To charge a fee for supplying information cards, at the rate of ten cents ($0.10) per card; provided that when more than 25 cards are issued at one time for the same solicitation the fee for all such cards in excess of 25 shall be five cents ($0.05) per card.
(i) 
To waive the whole or part of any provisions of sections 9-221, 9-222, 9-224, 9-225, 9-229 and 9-230, excepting this subsection, of this chapter for the purpose of meeting any extraordinary emergency or calamity.
(j) 
To waive all conditions of section 9-222 through and including section 9-235, upon application of person filing notice of intention, in respect to information cards and filing copies of written authorization when a campaign or drive for raising funds for any charitable purpose is given general publicity through the press or otherwise, and when more than 25 persons serve as solicitors without compensation, if it shall be proved to the satisfaction of the city council that the publicity concerning the solicitation fully informs the general public and the persons to be solicited as to the facts required to be set forth in the information card.
(k) 
To endorse such charitable corporations or associations as shall apply to the city council for endorsement after proving to the city council that they have complied with the following provisions, namely:
(1) 
That the title to any real property in the City of Costa Mesa owned by any such charitable corporation or association is vested in the name of the charity, if it is a corporation, or else in the name of the responsible trustee, under a declaration of trust or other written instrument, setting forth the rights of such charitable corporation or association therein, and recorded in the records of the county recorder of Orange County.
(2) 
That the declared purpose for which such a corporation or association is organized is charitable or philanthropic, and not for the pecuniary profit of the members or associates thereof or any of them.
(3) 
That for three months prior to its endorsement, said charitable corporation or association has faithfully complied with the following provisions with reference to its accounts, namely: All funds received by it and all disbursements made by it, have been entered upon the books of its treasurer or other financial officer, receipts have been given or tendered for all money or other property donated to it, whenever required by law or ordinance; all expenditures other than petty cash to a reasonable amount have been made by checks signed by at least two officers of such corporation or association; that the bank book of such association or corporation has been balanced and reconciled with the books of account at reasonable intervals.
(4) 
That no moneys of said corporation or association are on loan directly or indirectly to any officer, director, trustee or employee thereof, and that the corporation or association for a period of three months prior to its endorsement has not invested any moneys constituting part of its permanent endowment funds except in securities legal as investments for savings banks within the State of California, and has not paid out more than 15% of any amounts collected by solicitation within the City of Costa Mesa for expenses of solicitation, and has not diverted funds donated to it from any source to purposes other than those for which they are donated. Provided, however, that the provisions of this paragraph shall not apply to any loan or investment that has been made prior to the passage of this chapter.
(5) 
That the work for which such corporation or association has been organized has been faithfully performed.
(6) 
That the bylaws and other written rules and regulations of such corporation or association define the powers and duties of the officers of such corporation or association, and that a copy of the articles of incorporation of said charity, if it be a corporation, and a copy of the bylaws and other written rules and regulations of such corporation or association have been filed with the city council.
(7) 
That within three months prior to its endorsement such a corporation or association has not violated any laws or ordinances applicable to it.
(8) 
That the officers and employees of such corporation or association are persons of good character and reputation and that the corporation or association has exercised reasonable care in selecting persons of good character and reasonable experience as solicitors for its funds.
(Ord. No. 74-69, § 2, 1-7-75)
(a) 
No promoter shall in any manner whatsoever solicit within the City of Costa Mesa any contribution for any actual or purported charitable use, purpose, association, corporation or institution without a permit from the city council to do so.
(b) 
Application. To obtain such permit, such promoter shall make and file with the city council an application therefor in writing. In such application, the applicant shall set forth, in addition to such information as may be required by the city council:
(1) 
The name and address of the applicant, and if such applicant be a corporation, the name and address of each of its managing officers and agents, and, if it be an unincorporated association, firm or partnership, the name and address of each member of such unincorporated association, firm or partnership.
(2) 
A succinct statement of facts showing that the applicant, if not a corporation or an unincorporated firm, association or partnership, is of good character and reputation, or if the applicant be a corporation that each of its managing officers and agents is of good character and reputation, or if the applicant be an unincorporated association, firm or partnership, that each of its members is of good character and reputation.
(3) 
The general plan, character and method in or by which applicant proposes to conduct its or his business as a promoter.
(c) 
Bond.
(1) 
At the time of so filing with the city council an application for such permit, the applicant shall file and thereafter maintain with the city council a good and sufficient bond in the aggregate sum of $2,000 running to the city of Costa Mesa for the use and benefit of interested persons and parties, executed by the applicant and by two or more responsible sureties, or a surety company authorized to do business in the State of California, to be approved by the city council. The total aggregate liability on said bond shall be limited to the payment of $2,000. Said bond shall be conditioned upon the strict compliance, by the principal, with the provisions of this chapter and the payment of any direct pecuniary loss sustained, through any act of grand or petty theft on the part of the principal, by any donor or by any person on whose behalf the funds or personal property were solicited or received by the principal.
(2) 
Said bond shall remain in force and effect for the entire period of the permit. The sureties may cancel said bond and be relieved of further liability thereunder by delivering 30 days' written notice to the city council. Such cancellation shall not affect any liability incurred or accrued thereunder prior to the termination of said thirty-day period.
(3) 
Any person who sustains any injury covered by said bond may, in addition to any other remedy that he may have, bring an action in his own name upon said bond for the recovery of any damage sustained by him.
(4) 
Upon such action being commenced, such bond shall not be void upon first recovery thereon, but may be sued upon from time to time until the whole of such penalty shall be exhausted. The city council may in its discretion, require the filing of a new bond, and immediately upon the recovery in any action on such bond, such promoter shall file a new bond, and upon failure to file the same within 10 days in either case, the city council shall forthwith suspend such promoter's permit to solicit.
(5) 
The time within which any action may be brought against a surety upon any bond filed hereunder, may by express provision of the bond to that effect, be limited to a period of two years from and after the discovery, by the person aggrieved, of the act or default complained of.
(d) 
Fee. For filing such application the applicant shall pay a fee set by resolution of city council.
(e) 
Investigation. The city council shall examine the application and shall make such further investigation of the applicant and his affairs as the city council shall deem advisable. If from such examination the city council shall be satisfied:
(1) 
That the applicant is of good character and reputation; or that every managing officer or agent of the applicant, if the applicant is a corporation, is of good character and reputation; or if the applicant is an unincorporated association, firm or partnership, each member thereof is of good character and reputation; and
(2) 
That applicant has sufficient financial responsibility to carry out the obligations incidental to any solicitation such applicant may make within the City of Costa Mesa as such promoter and that all of the statements made in such application are and each of them is true and that neither the applicant nor any officer, agent or member of the applicant has violated any of the provisions of this chapter, or has engaged in any fraudulent transaction or enterprise, and that the applicant intends to conduct its business fairly and honestly, the city council shall issue to the applicant a permit to solicit contributions, as a promoter within the City of Costa Mesa. Otherwise, the city council shall deny the application and refuse to issue a permit and shall notify the applicant of the decision of the city council. Provided, however, that if the only ground for such refusal or denial is such that it does not substantially affect applicant's honesty and integrity, and if the inability of the applicant to meet any requirement will not in any way interfere with a proper performance by the applicant of his duties as such promoter, the city council may, in its discretion, waive such ground and grant the application. This provision relates only to paragraphs (1) and (2) of this subsection.
(f) 
Revocation. All permits issued hereunder shall be subject to the condition that the applicant thereafter shall cease and desist from acting as a promoter within said City of Costa Mesa when ordered so to do by the city council, if the city council finds after a hearing that any act or omission of such promoter or his agents or employees in making any solicitation or in the conduct of the business of promoter within the City of Costa Mesa is unfair, unjust, inequitable or fraudulent. The city council must suspend or revoke any such permit of, after hearing upon notice, the city council shall find the existence of any of the grounds hereinabove enumerated for the denial of an application for a promoter's permit; provided, however, that such suspension or revocation shall be discretionary with the city council if the only grounds for such revocation is such that it does not affect the permittee's honesty and integrity, or his ability properly to perform his duties as a promoter.
(g) 
Termination. Every such permit shall terminate or expire at the end of the year terminating on the thirtieth day of June in which such permit is issued.
(h) 
Funds. No promoter shall commingle any contributions with the promoter's own funds or property, or fail at any time to maintain and keep all contributions separate and apart from the promoter's own funds or property.
(i) 
Solicitors.
(1) 
It is unlawful for any promoter to cause or permit any person for pecuniary compensation or consideration received or to be received by such person to solicit or receive on his behalf or at his instigation, under his direction or control or in his employment, any contribution unless such person shall be registered as a solicitor by the city council.
(2) 
Except as provided in subsections (a) to (i) inclusive, of this section, no person shall for pecuniary compensation or consideration solicit contributions for or on behalf of any other person, charitable association, corporation or institution unless such person be first registered by the city council. No person shall be so registered unless he shall first furnish satisfactory proof to the city council that he is a person of good character, that his reputation for honesty is good, and unless he first files with the city council, and thereafter maintains, a bond satisfactory to the city council and approved by the city attorney in the sum of $500 conditioned for the payment of any direct pecuniary loss which may be sustained by any donee or by any person, corporation or association on whose behalf any contribution was solicited or received through any act of grand or petty theft committed by such person.
(3) 
The provisions of paragraphs (2), (3), (4) and (5) of subsection (c) above, shall apply to bonds filed pursuant to this subsection.
(4) 
The City of Costa Mesa shall collect a fee of one dollar ($1.00) for each such registration.
(5) 
The registrant must notify the city council in writing of any change of address, and if the registrant be employed by more than one person, association, corporation or institution, he must inform the city council in writing of such fact and of any subsequent termination or change of employment.
(6) 
Each registration required by this subsection shall terminate at midnight of June 30, each year. Thereafter such registrant shall be reregistered by the city council upon the payment of a fee of one dollar ($1.00) and the posting of a bond in the sum of $500. Such bond shall comply with the requirements of subsections (2) and (3) hereof.
(Ord. No. 74-69, § 2, 1-7-75; Ord. No. 94-4, § 6, 3-7-94)