Legislation # 07-0095 Enactment Number none
Type Ordinance - Coded Effective Date none
Introduction Date 2/28/2007
Title AN ORDINANCE TO AMEND CHAPTER 31, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED “SOLICITORS AND SOLICITATIONS.”
 
Legislation History 07-0095
DateNotice Of ActionDescription
2/28/2007 Moved to approve consent agenda items 1 through 3 on first and final reading.
2/28/2007 Moved to to waive second reading on consent agenda items 1 through 3.
2/16/2007 Received By Clerk's Office
 
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Chapter 31.redline.doc Other 128K Chapter 31 - Solicitors and Solicitations - Redline Version
 
Legislation Text 07-0095

 

City of Hampton, Virginia

Ordinance - Coded

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 07-0095

 

Enactment Number: -

 

AN ORDINANCE TO AMEND CHAPTER 31, OF THE CODE OF THE CITY OF HAMPTON, VIRGINIA, ENTITLED SOLICITORS AND SOLICITATIONS.

 

 

Chapter 31

 

SOLICITORS AND SOLICITATIONS*

__________

* Cross References: Standing in roadway for purpose of soliciting business or contributions, 21-509; dropping solicitation material from aircraft, 24-42; solicitations in parks, 26-30.

__________

 

Article I. In General

Secs. 31-1--31-15. Reserved.

 

Article II. Nonresident Commercial Solicitors

 

Division 1. Generally

Sec. 31-16. Definitions.

Sec. 31-17. Application of article.

Sec. 31-18. Violation of article.

Sec. 31-19. False statements; conduct generally.

Sec. 31-20. Orders to be in writing, etc.

Sec. 31-21. Interference with use of streets.

Sec. 31-22. Prior consent required for entry upon certain property.

Secs. 31-23--31-35. Reserved.

 

Division 2. Permit

Sec. 31-36. Required.

Sec. 31-37. Application.

Sec. 31-38. Applicant to be photographed and fingerprinted.

Sec. 31-39. Fee.

Sec. 31-40. Issuance.

Sec. 31-41. Conditions.

Sec. 31-42. Term.

Sec. 31-43. Renewal.

Sec. 31-44. Possession and exhibition.

Sec. 31-45. Not transferable.

Sec. 31-46. Revocation.

Secs. 31-47--31-60. Reserved.

 

Article III. Charitable Solicitations

Sec. 31-61. Definitions.

Sec. 31-62. Exemptions from article generally.

Sec. 31-63. Exemptions from certain provisions of article.

Sec. 31-64. Reciprocal agreements with other municipalities.

Sec. 31-65. Article does not authorize unlawful acts or omissions or decrease

liability imposed by law.

Sec. 31-66. Appeals from orders under article.

Sec. 31-67. Investigations to enforce article.

Sec. 31-68. Penalty for violations of article.

Sec. 31-69. Actions to enjoin violations of article.

Sec. 31-70. Registration of organizations.

Sec. 31-71. Reports by organizations with no local office and which solicit solely

by telephone, mail, etc.

Sec. 31-72. Publication of warning as to unregistered organizations.

Sec. 31-73. Records to be kept by organizations.

Sec. 31-74. Contracts between organizations and fund-raising counsel and

professional solicitors.

Sec. 31-75. Statements, reports, contracts, etc., filed under article constitute

public records; charge for copies thereof.

Sec. 31-76. False or incorrect information in statements or reports required by

article.

Sec. 31-77. Receipts for contributions.

Sec. 31-78. Disclosure by solicitor as to percentage of contribution that

organization will receive.

Sec. 31-79. Soliciting without authority from organization.

Sec. 31-80. Soliciting by certain persons prohibited.

Sec. 31-81. Soliciting for benefit of nonresident who fails to supply information to

commissioner of revenue.

Sec. 31-82. Misleading solicitations generally.

Sec. 31-83. Misrepresentations as to sponsors, endorsers, etc.

Sec. 31-84. Misrepresentations as to income tax deductions.

 

ARTICLE I.

 

IN GENERAL

 

Secs. 31-1--31-15. Reserved.

 

ARTICLE II.

 

NONRESIDENT COMMERCIAL SOLICITORS

 

DIVISION 1.

 

GENERALLY

 

Sec. 31-16. Definitions.

 

For the purposes of this article, the following words and terms shall have the meanings respectively ascribed to them by this section:

 

Solicitor: The word "solicitor" shall mean any person who goes from house to house or from place to place in the city, selling or taking orders for, or offering to sell or take orders for goods, wares or merchandise, or any article for future delivery, or for services to be performed in the future or for the making, manufacturing or repairing of any article or thing for future delivery; provided, however, that the word "solicitor" shall not apply to a person governed by the provisions of article III of this chapter, and that this chapter shall apply only to solicitors who demand, accept or receive payment or deposit of money in advance of final delivery.

(Ord. No. 17, 1; Ord. No. 568, 4-12-78; Code 1964, 36-1)

 

 

Sec. 31-17. Application of article.

 

This article shall apply only to solicitors who demand, accept or receive payment or deposit of money in advance of final delivery.

(Ord. No. 17, 1; Ord. No. 568, 4-12-78; Code 1964, 36-1)

 

Sec. 31-18. Violation of article.

 

Any person convicted of a violation of any provision of this article shall be deemed guilty of a Class 1 misdemeanor.

(Ord. No. 17, 12; Code 1964, 36-2)

Cross References: Penalty for Class 1 misdemeanor, 1-11.

 

Sec. 31-19. False statements; conduct generally.

 

The holder of a solicitor's permit issued under this article shall make no false statements or misrepresentations of facts in the course of carrying on the activity for which the permit is granted and shall conduct himself at all times in an orderly and lawful manner.

(Ord. No. 17, 10; Code 1964, 36-14)

 

Sec. 31-20. Orders to be in writing, etc.

 

All orders taken by the holder of a solicitor's permit issued under this article shall be in writing, in duplicate, stating the terms thereof and the amount paid in advance, and one copy shall be given to the purchaser.

(Ord. No. 17, 10; Code 1964, 36-15)

 

Sec. 31-21. Interference with use of streets.

 

No holder of a solicitor's permit issued under this article shall sell, distribute or circulate literary material or canvass or solicit orders therefor or for goods or merchandise from pedestrian or vehicular traffic on or adjacent to any street within the limits of the city in such manner as will interfere with the normal and usual use of such street.

(Ord. No. 17, 10; Code 1964, 36-16)

 

Sec. 31-22. Prior consent required for entry upon certain property.

 

No holder of a solicitor's permit issued under this article shall enter in or upon any house, building or other structure or any land or property, without the prior consent of the owner or occupant thereof, where there is placed or posted on the premises, in a conspicuous position at or near the usual means of ingress, a sign or other form of notice stating or indicating that the owner or occupant thereof forbids or otherwise does not desire persons engaged in such or similar activity to enter upon the premises.

(Ord. No. 17, 10; Code 1964, 36-17)

Cross References: Trespass after having been forbidden so to do, 24-33.

 

Secs. 31-23--31-35. Reserved.

 

DIVISION 2.

 

PERMIT

 

Sec. 31-36. Required.

 

It shall be unlawful for any person to act as a solicitor, without first securing a solicitor's permit from the director of public safety so to do.

(Ord. No. 17, 2; Ord. No. 568, 4-12-78; Code 1964, 36-3)

 

Sec. 31-37. Application.

 

Any person desiring a permit required by this division shall make application therefor to the director of public safety on a form to be provided, stating the name and exact address of the applicant, the name of the person whom he represents and the kind of goods offered for sale or the kind of services to be performed. At the time of executing such application form, the applicant shall also submit, for the inspection of the director of public safety, written proof of his identity, which may be in the form of an automobile operator's or owner's license or an identification card issued to the applicant by the person for or through whom or under whose auspices the applicant is authorized to conduct such activity. Such applicant shall state whether he has ever been convicted of any offense involving moral turpitude.

(Ord. No. 17, 3; Code 1964, 36-4)

 

Sec. 31-38. Applicant to be photographed and fingerprinted.

 

The applicant for a solicitor's permit under this division shall be photographed and fingerprinted.

(Ord. No. 17, 4; Code 1964, 36-5)

 

Sec. 31-39. Fee.

 

Every person securing a solicitor's permit under this division shall pay to the director of public safety a fee of ten dollars ($10.00) therefor.

(Ord. No. 17, 5; Code 1964, 36-6)

 

Sec. 31-40. Issuance.

 

Upon compliance by the applicant with the provisions of this division, the director of public safety shall, after such investigation as reasonably appears necessary, issue to an applicant a solicitor's permit which shall be dated and signed by the director of public safety. The director of public safety shall not be required to issue a solicitor's permit to any person who has been convicted of any crime or misdemeanor involving moral turpitude, or to any person whose permit has been previously revoked.

(Ord. No. 17, 6; Code 1964, 36-7)

 

Sec. 31-41. Conditions.

 

A solicitor's permit issued under this article shall be issued subject to the conditions set forth in this article.

(Ord. No. 17, 10; Code 1964, 36-12)

 

Sec. 31-42. Term.

 

A solicitor's permit issued under this division shall be good for a period of thirty (30) days and no longer.

(Ord. No. 17, 7; Code 1964, 36-8)

 

Sec. 31-43. Renewal.

 

A solicitor's permit issued under this division may be renewed on its expiration date for an additional like period, upon the execution of a renewal application setting forth that the statements made in the original application are true and accurate statements at the time the renewal application is filed, or a renewal application setting forth all changes in the original application required by a change in facts since the date of filing the original application. For each renewal permit, the applicant shall pay the director of public safety a fee of one dollar ($1.00).

(Ord. No. 17, 8; Code 1964, 36-9)

 

Sec. 31-44. Possession and exhibition.

 

The holder of a solicitor's permit issued under this division shall have his solicitor's permit in his possession at all times and shall exhibit such permit at any time upon request by any police officer of the city, or by any purchaser, or by any person being solicited.

(Ord. No. 17, 10; Code 1964, 36-13)

 

Sec. 31-45. Not transferable.

 

A solicitor's permit issued under this division shall be nontransferable.

(Ord. No. 17, 9; Code 1964, 36-10)

 

Sec. 31-46. Revocation.

 

(a) Any solicitor's permit issued under the provisions of this division may be revoked by the director of public safety, after notice and hearing, for any fraud, misrepresentation or false statement contained in the application; for failure to observe the conditions of the permit or any provision of this article; or upon any conviction, after issuance of the permit, of the permittee of any crime or misdemeanor involving moral turpitude.

 

(b) Notice of the hearing for revocation of a solicitor's permit shall be in writing, setting forth the specific reason or reasons for the hearing and the time and place thereof. Such notice shall be given to the holder of the permit at least two (2) days, if by personal service, and at least three (3) days, if by local mail, addressed to the holder's last known local address, prior to the stated hearing.

(Ord. No. 17, 11; Code 1964, 36-11)

 

Secs. 31-47--31-60. Reserved.

 

ARTICLE III.

 

CHARITABLE SOLICITATIONS*

__________

* State Law References: Solicitation of contributions, Code of Virginia, 57-48 et seq.; ordinances regulating charitable organizations soliciting within city, 57-63.

__________

 

Sec. 31-61. Definitions.

 

Unless a different meaning is required by the context, the following terms, as used in this article, shall have the meanings respectively ascribed to them by this section:

 

Charitable organization: Any person that is or holds itself out to be organized or operated for any charitable purpose or any person that solicits or obtains contributions solicited from the public. This definition shall not be deemed to include any church or convention or association of churches, primarily operated for nonsecular purposes and no part of the net income of which inures to the direct benefit of any individual; nor shall it include any political party, as defined in section 24.2-101 of the Code of Virginia, or any political campaign committee or political action committee or other political committee required by state or federal law to file a report or statement of contributions and expenditures; nor shall it include any authorized individual who solicits, by authority of such organization, solely on behalf of a registered or exempt charitable organization or on behalf of an organization excluded from the definition of charitable organization.

 

Charitable purpose: Any charitable, benevolent, humane, philanthropic, patriotic or eleemosynary purpose and the purpose of influencing legislation or influencing the actions of any public official or instigating, prosecuting or intervening in litigation.

 

Civic organization: Any local service club, veterans' post, fraternal society or association, volunteer fire or rescue group, or local civic league or association of ten (10) or more persons not organized for profit but operated exclusively for educational or charitable purposes, including the promotion of community welfare, and the net earnings of which are devoted exclusively to charitable, educational, recreational or social welfare purposes.

 

Commissioner of revenue: The commissioner of revenue or a member of his staff to whom he may delegate his duties under this article.

 

Contribution: Any gift, bequest, devise or other grant of money, credit, financial assistance or property of any kind or value, including the promise to contribute, except payments by the membership of an organization for membership fees, dues, fines or assessments, or for services rendered to individual members, and except money, credit, financial assistance or property received from any governmental authority. The term "contribution" shall not include any donation of blood or any gift made pursuant to the Uniform Anatomical Gift Act.*

__________

* State Law References: Anatomical gifts, Code of Virginia, 32.1-289 et seq.

__________

 

Federated fund-raising organization: Any federation of independent charitable organizations which have voluntarily joined together, including, but not limited to, a United Fund or Community Chest, for purposes of raising and distributing money for and among themselves and where membership does not confer operating authority and control of the individual agencies upon the federated group organization.

 

Fund-raising expenses: The expenses of all activities that constitute or are an integral and inseparable part of a solicitation.

 

Membership: Those persons to whom, for payment of fees, dues, assessments, etc., an organization provides services and confers a bona fide right, privilege, professional standing, honor or other direct benefit, in addition to the right to vote, elect officers or hold offices. The term "membership" shall not include those persons who are granted a membership upon making a contribution as the result of solicitation.

 

Parent organization: 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.

 

Person: Any individual, organization, trust, foundation, association, partnership, corporation, society or other group or combination acting as a unit.

 

Professional fund-raising counsel: Any person who, for a flat fixed fee under a written agreement, plans, conducts, manages, carries on, advises or acts as a consultant, whether directly or indirectly, in connection with soliciting contributions for, or on behalf of, any charitable or civic organization, but who actually solicits no contributions as part of such services. A bona fide salaried officer or employee of a registered or exempt charitable organization or a bona fide salaried officer or employee of a registered parent organization shall not be deemed to be a professional fund-raising counsel.

 

Professional solicitor: Any person who, for a financial or other consideration, solicits contributions for, or on behalf of, a charitable or civic organization, whether such solicitation is performed personally or through his agents, servants or employees or through agents, servants or employees specially employed by or for a charitable or civic organization, who are engaged in the solicitation of contributions under the direction of such person, or any person who, for a financial or other consideration, plans, conducts, manages, carries on, advises or acts as a consultant to a charitable or civic organization in connection with the solicitation of contributions, but does not qualify as a professional fund-raising counsel. A bona fide salaried officer or employee of a registered or exempt charitable organization or a bona fide salaried officer or employee of a registered parent organization shall not be deemed to be a professional solicitor.

 

Sale, sell; sold: The transfer of any property or the rendition of any service to any person in exchange for consideration, including any purported contribution without which such property would not have been transferred or such services would not have been rendered.

 

Solicit; solicitation: The request or appeal, directly or indirectly, for any contribution on the plea or representation that such contribution will be used for a charitable purpose, including without limitation, the following methods of requesting such contributions:

 

(1) Any oral or written request.

 

(2) Any announcement to the press, over the radio or television, or by telephone or telegraph concerning an appeal or campaign to which the public is requested to make a contribution for any charitable purpose connected therewith.

 

(3) The distribution, circulation, posting or publishing of any handbill, written advertisement or other publication which, directly or by implication, seeks to obtain public support.

 

(4) The sale of, or any offer or attempt to sell, any advertisement, advertising space, subscription, ticket or any service or tangible item in connection with which any appeal is made for any charitable purpose or where the name of any charitable or civic organization 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 be donated to any charitable purpose.

 

"Solicitation," as defined herein, shall be deemed to occur when the request is made, at the place the request is received, whether or not the person making the same actually receives any contribution.

"Terrorists and terrorist organizations" means any person, organization, group or conspiracy who assists or has assisted terrorist organizations, as provided in 18 U.S.C. 2339 B or who commits or attempts to commit acts of terrorism, as defined in Virginia Code 18.2-46.4.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-1)

State Law References: Similar provisions, Code of Virginia, 57-48.

 

Sec. 31-62. Exemptions from article generally.

 

(a) Nothing in this article shall be construed as being applicable to the American Red Cross or any of its local chapters.

 

(b) No charitable organization shall be required to comply with the provisions of this article, if such organization has registered with the state commissioner of agriculture and consumer services or if such organization is a chapter, branch or affiliate included in the consolidated report of an organization or federated organization registered with such commissioner except that such charitable organization shall not be exempted from any portion of this article that requires such organization to register its name, the names of its solicitors and the dates and times that they will be soliciting in the city.

State Law References: Similar provisions, Code of Virginia, 57-60(D), 57-63(D).

 

Sec. 31-63. Exemptions from certain provisions of article.

 

(a) The following shall be exempt from the registration requirements of section 31-70 and the requirements of section 31-73, but shall otherwise by subject to the provisions of this article:

 

(1) Educational institutions that are accredited by the state board of education, by a regional accrediting association or by an organization affiliated with the National Commission on Accrediting, the Association Montessori Internationale or the American Montessori Society, the Virginia Independent Schools Association, or the Virginia Association of Independent Schools, any foundation having an established identity with any of the aforementioned educational institutions, and any other educational institution confining its solicitation of contributions to its student body, alumni, faculty and trustees, and their families.

 

(2) Persons requesting contributions for the relief of any individual specified by name at the time of the solicitation, when all of the contributions collected, without any deductions whatsoever, are turned over to the named beneficiary for his use.

 

(3) Charitable organizations which do not intend to solicit and receive, during a calendar year, and have not actually raised or received, during any of the three (3) next preceding calendar years, contributions from the public in excess of five thousand dollars ($5,000.00), if all of their functions, including fund-raising activities, are carried on by persons who are unpaid for their services and if no part of their assets or income inures to the benefit of or is paid to any officer or member. Nevertheless, if the contributions raised from the public, whether all of such are or are not received by any charitable organization during any calendar year, shall be in excess of five thousand dollars ($5,000.00), it shall, within thirty (30) days after the date it shall have received total contributions in excess of five thousand dollars ($5,000.00), register with and report to the commissioner of revenue as required by this chapter.

 

(4) Organizations which have no office within the city and which solicit in the city from without the commonwealth solely by means of telephone or telegraph, direct mail or advertising in national media, and that have a chapter, branch, or affiliate within the commonwealth that has registered with the commissioner.

 

(5) Organizations which solicit only within the membership of the organization by the members thereof.

 

(6) Health care institutions defined herein as any facilities that have been granted tax-exempt status under 501 (c) (3) of the Internal Revenue Code, and that are (i) licensed by the Department of Health or the Department of Mental Health, Mental Retardation and Substance Abuse Services; (ii) designated by the Health Care Financing Administration (HCFA) as federally qualified health centers; (iii) certified by the HCFA as rural health clinics; or (iv) wholly organized for the delivery of health care services without charge; and any supporting organization that exists solely to support any such health care institutions. For the purposes of clause (iv), "delivery of health care services without charge" includes the delivery of dental, medical or other health services where a reasonable minimum fee is charged to cover administrative costs.

(7) Civic organizations.

 

(8) Organizations that have been granted tax-exempt status under 501(c)(3) of the Internal Revenue Code and that are organized wholly as Area Health Education Centers in accordance with Code of Virginia, 32.1-122.7.

 

(9) Nonprofit debt counseling agencies licensed pursuant to Chapter 10.2 ( 6.1-363.2 et seq. of Title 6.1).

 

(10) Agencies designated by the Virginia Department of Aging pursuant to subdivision A 6 of 2.2-703 as area agencies on aging.

 

(11) Labor unions, labor associations and labor organizations that have been granted tax exempt status under 501(c) (5) of the Internal Revenue Code.

 

(12) Trade Associations that have been granted tax-exempt status under 501 (c) (6) of the Internal Revenue Code.

 

(13) Organizations that have been granted tax-exempt status under 501 (c) (3) of the Internal Revenue Code and that are organized wholly as regional emergency medical services councils in accordance with 32.1-111.11 of the Code of Virginia.

 

(14) Nonprofit organizations that have been granted tax-exempt status under 501 (c) (3) of the Internal Revenue Code and that solicit contributions only through (i) grant proposals submitted to for-profit corporations, (ii) grant proposals submitted to other nonprofit organizations that have been granted tax-exempt status under 501 (c) (3) of the Internal Revenue Code, or (iii) grant proposals submitted to organizations determined to be private foundations under 509 (a) of the Internal Revenue Code.

 

(b) No charitable organization shall be exempt under this section unless it shall submit, before any solicitation in any calendar year, to the commissioner of revenue, on forms to be prescribed by him, the name, address and purpose of the organization and a statement setting forth the reason for the claim for exemption. Parent organizations may file consolidated applications for exemptions for any chapters, branches or affiliates which they believe to be exempt from the registration provisions of this article. If exempted, the commissioner of revenue shall issue a letter of exemption which may be exhibited to the public. No registration fee shall be required of any exempt organization. The letter of exemption shall remain in effect as long as the organization continues to solicit in accordance with its claim for exemption.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-12)

State Law References: Similar provisions, Code of Virginia, 57-60.

 

Sec. 31-64. Reciprocal agreements with other municipalities.

 

The commissioner of revenue may enter into a reciprocal agreement with the appropriate authority of any other municipality within the commonwealth, for the purpose of exchanging information with respect to charitable organizations, professional fund-raising counsel and professional solicitors. Pursuant to such agreements, the commissioner of revenue may accept information filed by charitable organizations, professional fund-raising counsel and professional solicitors with the appropriate authority of another locality within this commonwealth, in lieu of the information required to be filed by this article.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-3)

 

Sec. 31-65. Article does not authorize unlawful acts or omissions or decrease liability imposed by law.

 

Nothing contained in this article shall be construed as making lawful any act or omission which is now unlawful, or as decreasing the liability, civil or criminal, of any person, imposed by existing laws.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-13)

State Law References: Similar provisions, Code of Virginia, 57-62.

 

Sec. 31-66. Appeals from orders under article.

 

Any person aggrieved by any final order of the commissioner of revenue under this article, denying such person any right to which he is entitled under law, may, within fifteen (15) days from the date of such order, apply for relief to the circuit court of the city. Either party may appeal any final order of such court in the same manner as provided by law in cases of appeals of right.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-14)

State Law References: Similar provisions, Code of Virginia, 57-67.

 

Sec. 31-67. Investigations to enforce article.

 

Whenever the commissioner of the revenue has reasonable cause to believe that a violation of this article may have occurred, the commissioner, upon his own motion or upon complaint of any person, may investigate any charitable or civic organization, commercial co-venturer, professional fund-raising counsel or professional solicitor to determine whether such charitable or civic organization, commercial co-venturer, professional fund-raising counsel or professional solicitor has violated the provisions of this article.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-11)

State Law References: Similar provisions, Code of Virginia, 57-59.

 

Sec. 31-68. Penalty for violations of article.

 

Any person who wilfully and knowingly violates or causes to be violated any provisions of this article shall be guilty of a misdemeanor and, upon conviction thereof, shall be sentenced, for the first offense, to pay a fine of not less than one hundred dollars ($100.00) nor more than one thousand dollars ($1,000.00) or undergo imprisonment for not more than six (6) months, or both, and for the second and any subsequent offense, to pay a fine of not less than five hundred dollars ($500.00) nor more than two thousand five hundred dollars ($2,500.00) or to undergo imprisonment for not more than one year, or both.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-11)

State Law References: Similar provisions, Code of Virginia, 57-59.

 

Sec. 31-69. Actions to enjoin violations of article.

 

Whenever the city attorney or the commonwealth's attorney shall have reason to believe that any charitable or civic organization, commercial co-venturer, professional fund-raising counsel or professional solicitor has operated, is operating or is about to operate in violation of the provisions of this article, or has knowingly and wilfully made any false statement in any registration application or statement, report or other information required by this article, or that a charitable organization, professional fund-raising counsel or professional solicitor has failed to file a registration statement required by this article, or that there is employed or is about to be employed in any solicitation or collection of contributions for a charitable organization any device, scheme or artifice to defraud or to obtain money or property by means of any false pretense, representation or promise, or that the officers or representatives of any charitable organization, professional fund-raising counsel or professional solicitor have refused or failed, after notice, to produce any records of such organization, or that the funds raised by solicitation activities are not devoted or will not be devoted to the charitable purposes of the charitable organization, in addition to all other actions authorized by law, the city attorney or commonwealth's attorney may bring an action against such charitable organization and its officers, directors, or other agents, such professional fund-raising counsel or professional solicitor to enjoin such charitable organization or professional fund-raising counsel or professional solicitor from continuing such violation, solicitation or collection, or engaging therein, or doing any acts in furtherance thereof and for such other relief as the court deems appropriate.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-11)

State Law References: Similar provisions, Code of Virginia, 57-59.

 

Sec. 31-70. Registration of organizations.

 

(a) Every charitable organization, except as otherwise provided herein, which intends to solicit contributions within the city, or have funds solicited on its behalf, shall, prior to any solicitation, file an initial registration statement with the commissioner of revenue, upon forms acceptable to him. Each registration statement shall thereafter be refiled on or before the fifteenth day of the fifth calendar month of the next and each following fiscal year in which such charitable organization is engaged in solicitation activities within the city. It shall be the duty of the president, chairperson or principal officer of such charitable organization to file the statements required herein. Such statements shall contain the following information; however, no charitable organization that has registered with the state commissioner of agriculture and consumer services for the current and next preceding three years, or exempt for such years under Code of Virginia, 57-50, shall be required to provide any financial information:

 

(1) The name of the organization and the purpose for which it was organized.

 

(2) The principal address of the organization, the address of any offices in the city and its designated agent for process within the commonwealth. If no such agent is designated, the organization shall be deemed to have designated the secretary of the commonwealth. If the organization does not maintain an office, the statement shall include the name and address of the person having custody of its financial records.

 

(3) The names and addresses of any chapters, branches or affiliates in this city.

 

(4) The place where and the date when the organization was legally established, the form of the organization, and a reference to any determination of its tax-exempt status under the Internal Revenue Code.

 

(5) The names and addresses of the officers, directors, trustees and the principal salaried executive staff officer.

 

(6) A copy of a balance sheet and income and expense statement with the opinion of an independent public accountant for the organization's immediately preceding fiscal year; a copy of a financial statement certified by an independent public accountant covering, in a consolidated report, complete information as to all the preceding year's fund-raising activities of the charitable organization, showing the kind and amount of funds raised, fund-raising expenses and allocation of disbursement of funds raised; or a copy of Internal Revenue Service Form 990. The report required by this subparagraph shall comply with the accounting standards prescribed in section 31-73. Any organization with gross revenue of less than $25,000.00 may submit a balance sheet and income and expense statement verified under oath or affirmation by the treasurer of the organization.

 

(7) A statement showing the computation of the percentages provided for in subsection (b) of this section and section 31-78.

 

(8) A statement indicating whether the organization intends to solicit contributions from the public directly or have such done on its behalf by others.

 

(9) A statement indicating whether the organization is authorized by any other governmental agency within the commonwealth to solicit contributions and whether it, or any officer, professional fund-raiser or professional solicitor thereof, is or has ever been enjoined by any court or otherwise prohibited from soliciting contributions in any jurisdiction.

 

(10) The general purpose or purposes for which the contributions to be solicited shall be used.

 

(11) The name or names under which it intends to solicit contributions.

 

(12) The names of the individuals or officers of the organization who will have the final responsibility for the custody of the contributions.

 

(13) The names of the individuals or officers of the organization responsible for the final distribution of the contributions.

 

(14) A statement indicating whether the organization, or any officer, professional solicitor or professional fund-raiser thereof, has ever been convicted of a felony and, if so, a description of the pertinent facts.

 

(15) A copy of the current articles of incorporation, bylaws, or other governing documents. If current copies are already on file with the commissioner, only amendments, if any, shall be filed in years after the initial registration.

 

(16) A description of the types of solicitation to be undertaken.

 

(b) Each charitable organization shall, as a part of its registration statement, compute the percentage which its fund-raising expenses for its preceding fiscal year bore to its support received directly from the public during such year. Each federated fund-raising organization shall clearly disclose on any registration the percentage that is withheld from a donation designated for a member agency.

 

(c) Each chapter, branch or affiliate located in the city, except an independent member agency of a federated fund-raising organization, shall separately report the information required by this section or report the information to its parent organization, which shall then furnish such information as to itself and all local affiliates, chapters and branches in a consolidated form. All affiliated organizations included in a consolidated registration statement shall be considered as one charitable organization for all purposes of this article. If a consolidated registration statement is filed, all statements thereafter filed shall be upon the same basis unless permission to change is granted by the commissioner of revenue.

 

(d) Each federated fund-raising organization located in the city shall report the information required by this section in a consolidated form. Any federated fund-raising organization may elect to exclude from its consolidated report information relating to the separate fundraising activities of all of its independent member agencies. No member agency of a federated fund-raising organization shall be required to report separately any information contained in such a consolidated report; provided, however, that any separate solicitation campaign conducted by, or on behalf of, any such member agency in the city shall nevertheless be subject to all other provisions of this article.

 

(e) The registration forms shall be verified under oath or affirmation by the chief fiscal officer and by another authorized officer of the charitable organization.

 

(f) Every charitable organization which submits an independent registration to the commissioner of the revenue shall pay an annual registration fee of ten dollars ($10.00). A parent organization filing on behalf of one or more chapters, branches or affiliates or a federated fund-raising organization filing on behalf of its member agencies shall pay a single annual registration fee for itself and such chapters, branches, affiliates or member agencies included in the registration statement. Any organization which allows its registration to lapse, without requesting an extension of time to file, shall be required to resubmit an initial registration. An extension may be granted upon receipt of a written request. All fees paid hereunder shall be credited to the office of the commissioner of revenue, for reimbursement of administrative expense.

 

(g) Every registration statement shall include the following language: "No funds have been or will knowingly be used, directly or indirectly, to benefit or provide support, in cash or in kind, to terrorists, terrorist organizations, terrorist activities, or the family members of any terrorist."

(h) No person shall be registered by the city to solicit funds that are intended to benefit or support terrorists, terrorist organizations or terrorist activities. No person shall be registered by the city to solicit funds that are intended to benefit or support a family member of any terrorist, unless a court of competent jurisdiction within the city, upon petition of an interested person, finds by clear and convincing evidence that, for a period of at least three years next preceding any act of terrorism committed by such terrorist or terrorist organization, the family members to whom the benefit of the contributions shall inure have been living separate and apart from the terrorist or terrorist organization, and the family members have not provided any financial support, in cash or in kind, to the terrorist or terrorist organization for the same period of time.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-2, 36.1-10)

State Law References: Similar provisions, Code of Virginia, 57-49, 57-58.

 

Sec. 31-71. Reports by organizations with no local office and which solicit solely by telephone, mail, etc.

 

Any charitable organization, having no office or place of business within the city and soliciting in the city from without the city solely by telephone or telegraph, direct mail or advertising in national media, and any professional fund-raising counsel or professional solicitor engaged by such an organization, shall file with the commissioner of revenue any report which would otherwise be required of it, provided such charitable organization maintains an office or place of business within the commonwealth.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-2)

State Law References: Similar provisions, Code of Virginia, 57-51.

 

Sec. 31-72. Publication of warning as to unregistered organizations.

 

If the commissioner of revenue shall determine that any charitable organization, not registered with his office and not exempt from registration, irrespective of whether such organization is subject to the jurisdiction of the city, is soliciting in this city, directly or indirectly, by any means, including, without limitation, by telephone or telegraph, by direct mail or by advertising in national media, he may, after ten (10) days' written notice mailed to the charitable organization, cause to be printed, in one or more newspapers published or distributed in the city, a notice in substantially the following form:

 

WARNING--UNREGISTERED CHARITABLE SOLICITATION

 

The organization named below has solicited contributions from area residents for allegedly charitable purposes. It has not registered with the Commissioner of Revenue of Hampton as required by law. Contributors are cautioned that their contributions to such organization may be used for noncharitable purposes.

 

A copy of such warning shall immediately thereupon be forwarded to the administrator of consumer affairs for the commonwealth.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-4)

State Law References: Similar provisions, Code of Virginia, 57-52.

 

Sec. 31-73. Records to be kept by organizations.

 

Every charitable organization shall keep true fiscal records for all fiscal years beginning on and continuing after the effective date of Ordinance No. 570, from which this article is derived. Such records shall be kept in accordance with the standards and practices set out in Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations adopted and approved in December, 1964, by the National Health Council and National Social Welfare Assembly, and as may be modified from time to time by the National Health Council and the National Assembly for Policy and Development, or in accordance with the standards and practices set out in Uniform Chart of Accounts and Definitions for Hospitals, as approved by, and as may be modified by, the American Hospital Association, or in accordance with such other uniform standards of accounting as the state commissioner of agriculture and consumer services may find to be as appropriate. A copy of such standards shall be maintained on file in the office of the commissioner of revenue. Such records shall be retained for a period of at least three (3) years after the end of the period to which they relate.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-5)

State Law References: Similar provisions, Code of Virginia, 57-53.

 

Sec. 31-74. Contracts between organizations and fund-raising counsel and professional solicitors.

 

(a) Every contract or agreement between professional fund-raising counsel and a charitable organization must be in writing and shall be filed with the commissioner of revenue within ten (10) days after such contract or written agreement is entered into.

 

(b) Every contract, or a written statement of the nature of the arrangement to prevail in the absence of a contract, between a professional solicitor and a charitable organization shall be filed with the commissioner of revenue at least ten (10) days prior to commencement of the contract.

 

(c) All agreements and arrangements between professional fund-raising counsel and charitable organizations must be reduced to writing before executed or acted upon.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-6)

State Law References: Similar provisions, Code of Virginia, 57-54.

 

Sec. 31-75. Statements, reports, contracts, etc., filed under article constitute public records; charge for copies thereof.

 

Registration statements, reports, professional fund-raising counsel contracts, professional solicitor contracts and all other documents and information required to be filed under this article shall become public records in the office of the commissioner of revenue and shall be open to the general public for inspection at such time and under such conditions as the commissioner of revenue may prescribe. A charge not exceeding one dollar ($1.00) per page may be made for any copy of such documents and information as may be furnished any person by the commissioner of revenue.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-8)

State Law References: Similar provisions, Code of Virginia, 57-56.

 

Sec. 31-76. False or incorrect information in statements or reports required by article.

 

It shall be unlawful for any person to wilfully and knowingly give any false or incorrect information to the commissioner of revenue in filing statements or reports required by this article, whether such report or statement is verified or not.

(Ord. No. 570, 4-26-78; Code 1964, 36.1-11)

State Law References: Similar provisions, Code of Virginia, 57-59.

 

Sec. 31-77. Receipts for contributions.

 

No charitable organization shall accept any contribution exceeding five dollars ($5.00) in cash or tangible property, without providing, on request of the donor, a written receipt acknowledging such contribution on behalf of the organization.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[7])

State Law References: Similar provisions, Code of Virginia, 57-57(G).

 

Sec. 31-78. Disclosure by solicitor as to percentage of contribution that organization will receive.

 

Every charitable organization, required to be registered pursuant to 31-70 of this article, and every professional solicitor, required to submit contracts, statements and reports pursuant to 31-74 and 31-75 of this article, soliciting contributions from prospective contributors, shall disclose to the potential donor contemporaneously at the point of a written request or on a written receipt for donations made in response to an oral request, that a financial statement is available from the Virginia Division of Consumer Affairs in the Department of Agriculture and Consumer Services upon request.

Sec. 31-79. Soliciting without authority from organization.

 

(a) No person shall make any representation that he is soliciting contributions for or on behalf of a charitable or civic organization or shall use or display any emblem, device or printed matter belonging to or associated with a charitable or civic organization, for the purpose of soliciting or inducing contributions from the public, without first being authorized to do so by the charitable or civic organization.

 

(b) No professional solicitor shall solicit in the name of or on behalf of any charitable organization, unless such solicitor has written authorization of two (2) officers of such organization, a copy of which shall be filed with the commissioner of revenue. Such written authorization shall bear the signature of the solicitor and shall expressly state on its face the period for which it is valid, which shall not exceed one year from the date issued. Such authorization shall be carried by such solicitor, when making solicitations, and shall be exhibited, on request, to persons solicited or police officers or agents of the commissioner of revenue.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[6])

State Law References: Similar provisions, Code of Virginia, 57-57(E), (F)

 

Sec. 31-80. Soliciting by certain persons prohibited.

 

No person, and no organization of which such person is an officer, professional fundraising counsel or professional solicitor, shall solicit within the city, if:

 

(1) Such person has been convicted in any jurisdiction of embezzlement, larceny or other crime involving the obtaining of money or property by false pretenses or the misapplication of funds impressed with a trust, unless such person has received a pardon for such offense or the public is informed of such conviction in a manner approved in writing by the commissioner of revenue before any solicitation occurs; or

 

(2) Such person has ever been enjoined by any court or otherwise prohibited from soliciting in any jurisdiction, unless the commissioner of revenue shall first determine in writing that such person is entitled to solicit in such jurisdiction at the time of soliciting within the city of Hampton, or that the reason for such injunction or prohibition does not involve moral turpitude.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[8])

 

State Law References: Similar provisions, Code of Virginia, 57-57(H).

 

Sec. 31-81. Soliciting for benefit of nonresident who fails to supply information to commissioner of revenue.

 

No person shall solicit within the city for the benefit of any other person located without the city, if such other person refuses to supply any information which the commissioner of revenue deems necessary to assure himself that the provisions of this article are complied with. A solicitation shall be deemed to be on behalf of every person who receives, directly or indirectly, more than ten (10) percent of the gross amount collected.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[9])

State Law References: Similar provisions, Code of Virginia, 57-57(I).

 

Sec. 31-82. Misleading solicitations generally.

 

(a) No charitable organization shall use or exploit the fact of registration under this article so as to lead the public to believe that such registration in any manner constitutes an endorsement or approval by the city; provided, however, that the use of the following statement shall not be deemed a prohibited exploitation: "Registered with the Commissioner of Revenue as required by law. Registration does not imply endorsement of a public solicitation for contributions."

 

(b) No person shall, in connection with the solicitation of contributions or sale of tangible personal property or services, represent, or lead anyone by any manner, means, practice or device whatsoever to believe, that the person on whose behalf such solicitation or sale is being conducted is a bona fide charitable organization or that the proceeds of such solicitation or sale will be used for charitable purposes, if he has reason to believe such not to be the fact.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[1,2])

State Law References: Similar provisions, Code of Virginia, 57-57(A), (B).

 

Sec. 31-83. Misrepresentations as to sponsors, endorsers, etc.

 

(a) No person shall, in connection with the solicitation of contributions or the sale of tangible personal property or services for charitable purposes represent, or lead anyone, by any manner, means, practice or device whatsoever to believe, that any other person sponsors or endorses such solicitation of contributions or sale of tangible personal property or services for charitable purposes, or approves of such charitable purposes or a charitable organization connected therewith, when such other person has not given written consent to the use of his name for these purposes.

 

(b) Any member of the board of directors or trustees of a charitable organization or any other person who has agreed either to serve or to participate in any voluntary capacity in the campaign shall be deemed thereby to have given his consent to the use of his name in such campaign.

 

(c) Nothing contained in this section shall prevent the publication of names of contributors without their written consent, in an annual or other periodic report issued by a charitable organization, for the purpose of reporting on its operations and affairs to its membership or for the purpose of reporting contributions to contributors.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[3])

State Law References: Similar provisions, Code of Virginia, 57-57(C).

 

Sec. 31-84. Misrepresentations as to income tax deductions.

 

No person shall denominate any membership fee or purchase price of goods or services sold as a contribution or as a donation or in any other manner represent or imply that the member or the purchaser of such goods or services will be entitled to an income tax deduction for his cost or any portion thereof unless:

 

(1) there shall have been first obtained a signed opinion of counsel or an internal revenue service ruling or determination letter holding such cost to be deductible, or

 

(2) the member or purchaser is informed, in writing, that such cost may not be deductible; nor

 

(3) shall any person represent or imply that a contributor will be entitled to an income tax deduction for his contribution, unless there shall have been first obtained a signed opinion of counsel or an internal revenue service ruling or determination letter holding gifts to such organization to be so deductible.

(Ord. No. 570, 4-26-78; Ord. No. 607, 1-24-79; Code 1964, 36.1-9[4])

State Law References: Similar provisions, Code of Virginia, 57-57(D).

 

 

 

 

 

 

Signed by ____________________________ Date _________________

Ross A. Kearney, II, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass

Clerk of the Council