Section
116.01 Definitions
116.02 Certificate of registration required for charitable or civic organizations; exemptions
116.03 Registration statement; registration fee
116.04 Issuance of certificates of registration; standards for granting or denying a registration; notice of hearing
116.05 Closing statement to be filed on expiration of certificate registration
116.06 Professional solicitors and fundraising consultants
116.07 Identification of registrant and charitable purpose
116.08 Revocation, suspension or refusal to renew any registration; notice of hearing
116.09 Unlawful solicitation activity
116.10 Existing regulations
116.11 Finality of Administrator’s actions
116.12 Severability
116.98 Civil remedies
116.99 Penalty
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ADMINISTRATOR. The person holding the position of Mayor, or his or her designee, or any successor department or agency thereof.
CHARITABLE OR CIVIC ORGANIZATION. Any person determined by the Internal Revenue Service or the Kentucky Department of Revenue to be a tax-exempt organization; or a person or organization defined under KRS 367.650(2).
CHARITABLE OR CIVIC PURPOSE. Any purpose or activity which holds itself out to be benevolent, educational, philanthropic, humane, patriotic, religious, eleemosynary or fraternal or to be established for a social welfare or advocacy, public health, environmental conservation, or civic purpose, or is designed to serve the welfare of society generally or any class or group to which society is morally obligated or a specific community or to preserve or improve the culture thereof or environment enjoyed thereby; or as may otherwise be defined under applicable federal or state statutes or revenue rulings of the Internal Revenue Service or Kentucky Department of Revenue.
CITY GOVERNMENT. City of LaGrange.
CONTRIBUTION. Any grant, promise or pledge of money, credit, property, financial assistance or other thing of any kind or value in response to a solicitation for a charitable or civic purpose. It does not include: bona fide fees, dues or assessments paid by members, if that membership is not conferred solely as consideration for making a contribution in response to a solicitation; or money, property or compensated services received from any governmental authority.
FUNDRAISING CONSULTANT. Any person, who, for compensation, plans, manages, advises, consults or develops material for or with respect to the solicitation for any charitable organization. A FUNDRAISING CONSULTANT shall not, at any time, have custody of contributions from a solicitation or solicit contributions, directly or indirectly. If a fundraising consultant’s fee is related to the amount of contributions received from a solicitation in which he or she took part, the consultant is considered a professional solicitor. A FUNDRAISING CONSULTANT shall not employ, procure or otherwise engage any compensated person to solicit contributions. A bona fide salaried officer, employee or volunteer of a charitable organization shall not be deemed to be a FUNDRAISING CONSULTANT, unless he or she is employed or engaged as a fundraising consultant or a professional solicitor by another charitable organization.
HIGHWAY. Any public road, street, avenue, alley or boulevard, bridge, viaduct or trestle and the approaches to them, including private residential roads and parking lots covered by an agreement under KRS 61.362; and off-street parking facilities offered for public use, whether publicly or privately owned, except for-hire parking facilities listed in KRS 189.700.
PERSON. Any individual, corporation, trust, partnership, organization, foundation, society or other legal entity.
PROFESSIONAL SOLICITOR.
(1) A person who for compensation or other financial consideration solicits contributions in this city directly or indirectly, for or on behalf of a charitable organization. A person qualifies as a professional solicitor if he or she is hired on a fee, commission or percentage basis and the work is performed by him or her, or his or her agents, or the employees or volunteers of the benefitting charitable organization under the direction, supervision or instruction of the solicitor. A PROFESSIONAL SOLICITOR conducts or supervises specific fundraising activities or events in which gifts are solicited, received and deposited by the professional solicitor or his or her agents, expenses are paid, and net proceeds delivered to the charitable organization. A bona fide salaried officer, employee or volunteer of a charitable organization shall not be deemed to be a PROFESSIONAL SOLICITOR, unless he or she is employed or engaged as a fundraising consultant or a professional solicitor by another charitable organization.
(2) Any person, professional solicitor, fundraising consultant or telemarketer who acts as a subcontractor or agent or employee for or on behalf of any person, professional solicitor or fundraising consultant to solicit contributions in the city directly or indirectly for or on behalf of any charitable or civic organization, for purposes of this chapter shall be considered as a professional solicitor and shall comply with all provisions of this chapter.
RELIGIOUS ORGANIZATION. Any organization the activity of which is protected by § 1(2) of the Kentucky Constitution and the First Amendment of the Constitution of the United States.
RESIDENT AGENT. A person who resides within Oldham County, Kentucky or a Kentucky county, which borders Oldham County, Kentucky.
SOLICIT and SOLICITATION. Engaging in or requesting, directly or indirectly, that an addressed person or limited audience or the public generally make a contribution or contributions. SOLICITATION shall be deemed to have taken place when the request is made, whether or not the requested contribution is made.
SOLICITOR. A natural person who, by personal contact, transmits an oral communication or writing, which identifies that person, requests a specific person to make a contribution for charitable or civic purposes.
(Ord. 13-2005, passed 11-7-2005)
(A) Subject to the exceptions and exemptions contained in this chapter, any person, other than a professional solicitor or fundraising consultant, who solicits contributions or contracts with a professional solicitor or fundraising consultant to solicit contributions from persons within the legal boundaries of the city for charitable or civic purposes, shall have first obtained a certificate of registration from the Administrator in the manner prescribed by §§ 116.03 and 116.04 of this chapter.
(B) In order to be eligible to obtain and maintain a certificate of registration, a person must have a resident agent for purposes of receiving any notice provided for in this chapter, furnishing information required or requested by the Administrator, or for service of any civil or criminal process.
(C) The following types of solicitations are hereby exempt from the certificate of registration requirement as set forth in division (A) of this section, except when soliciting charitable contributions on a highway and the adjoining intersections thereof, then they are subject to division (A) of this section, but are exempt from paying any fees under §§ 116.03(D) or 116.04(H):
(1) Solicitations by a charitable or civic organization for contributions solely from its members and their families, provided that membership in such organizations is not included in the solicitation in order to avoid the provisions of this chapter, and further provided that such memberships are not granted solely upon the basis of such contributions;
(2) Solicitations by a religious organization for contributions for religious purposes such as maintenance of a house of worship, conduct of services and propagation of its faith or tenets as distinguished from other charitable and civic purposes employed by non-religious organizations;
(3) Solicitations by a publicly owned or non-profit privately endowed educational institution which is approved or licensed by the State Board of Education, the Council on Higher Education or an equivalent public authority of the jurisdiction where such institution is located, when such solicitations are sought from its alumni, faculty members, student body and their families, and corporations, for the establishment or continuance of the institution’s educational program; and
(4) Solicitations by a student group or parent-teacher association on behalf of their educational institution or its related activities, conducted with the approval of the administration of said educational institution.
(D) For any purpose under this chapter where a Social Security number is required to be furnished, a person may in lieu thereof submit any other government-issued identification number.
(Ord. 13-2005, passed 11-7-2005)
(A) Any person required to obtain a certificate of registration pursuant to § 116.02(A) of this chapter shall submit a sworn written registration statement to the Administrator, as well as a law enforcement records check authorization. All registration statements shall be on forms provided by the Administrator and they shall contain the following information:
(1) The full legal name of the person registering to solicit contributions for charitable purposes;
(2) Whether the person registering is an individual, partnership, corporation or association, and:
(a) If an individual, such person’s business and residential address, business and residential telephone number, date of birth and Social Security number;
(b) If a partnership, the business address and telephone number of the partnership and the full legal names of all partners, their principal business and residential addresses, business and residential telephone numbers, date of birth and Social Security numbers;
(c) If a corporation, the state of incorporation, the mailing address, principal business location, Social Security number, residential address and telephone number and full legal name of the individual with overall operating responsibility of the local office of the corporation, the names of all officers and directors or trustees of the corporation and the tax identification or employer identification number, if any, of the corporation, and a copy of the articles of incorporation; and
(d) If an association, the association’s principal business address and telephone number, if any, and the full legal names and principal business and residential addresses, telephone numbers, Social Security numbers, and date of birth of all members of the association. If there are more than ten members of the association, however, the person registering may alternatively list the full legal names, principal business and residential addresses, telephone numbers, Social Security numbers, and date of birth of the officers and directors of trustees of the association. If the association is part of a multi-state organization or association, the mailing address and street location of its principal headquarters shall be given, in addition to the mailing address and business location of its local office.
(3) The charitable or civic purpose of the solicitation, the amount or value of contributions intended to be raised for such purposes, and an estimate of approximate expenses that will be incurred in connection with the solicitation, including any wages, fees, commissions, expenses or emoluments to be expended or paid to any person in connection with such solicitation;
(4) The full legal names, residential addresses, Social Security numbers and date of birth of all individuals authorized to incur expenses related to the solicitation or to disburse any proceeds of the solicitation;
(5) The full legal name, business and residential address, telephone number, Social Security number and date of birth of each person, up to five individuals, who will have organizational responsibility with respect to the solicitation of contributions. If any such person is a professional solicitor or fundraising consultant, however, that person will be so identified by registrant and for each professional solicitor or fund raising consultant, the registrant shall provide either the information required by § 116.03(A)(2) or the certificate of registration number, for the professional solicitor or fundraising consultant;
(6) The time period within which the solicitation of contributions is to be made, giving the date of the beginning of solicitation and its projected conclusion;
(7) The dates and times of proposed solicitations, and the highways and the adjoining intersections thereof where solicitations are to be conducted for the next year following the date of the application. Only one person or group of persons shall be allowed to solicit charitable contributions on the highways and adjoining intersections thereof at any given time;
(8) The registrant shall list the five most populous cities in which it has solicited contributions during the previous five years;
(9) Evidence that the registrant has third-party liability insurance with a single limit of no less than $500,000 which insurance covers the activities of all of the registrant’s officers, agents, employees, volunteers and contractors;
(10) A statement to the effect that the granting of a certificate of registration by the city will not be used as or represented to be an endorsement by the city or any of its officers or employees;
(11) As to each, if any, officer, director, trustee, partner or any current agent or employee engaging in the solicitation of contributions who, within the past five years has been convicted of a felony or misdemeanor involving moral turpitude, shall provide the full legal name, Social Security number, and date of birth of the individual, the nature of the offense, the state where the conviction occurred, and the year of the conviction;
(12) If the registrant is unable to provide any of the foregoing information, the registrant shall set forth an explanation of the reasons why such information is not available; and
(13) Each registration statement shall be signed by an individual on behalf of the person registering. If the person registering is an individual, then such individual shall sign the registration statement. If the registrant is a partnership, then the managing partner or the partner charged with disbursing the contributions solicited shall sign. If the registrant is a corporation or an association, then its chief executive officer or the officer charged with disbursing the contributions solicited shall sign. The individual signing the registration statement shall sign the statement and swear before an officer authorized to administer oaths that the individual has read the registration statement and that all the information contained therein is true and correct to the best of the individual’s knowledge.
(B) Compliance with the registration statement requirements of § 116.03(A) hereof may be met by filing with the Director a complete and accurate copy of the disclosure requirement statement prepared and filed with the Kentucky Attorney General pursuant to KRS 367.650 through 367.670 et seq., and specifically with KRS 367.668. Said copy of the disclosure statement filed with the Kentucky Attorney General shall be re-executed by the appropriate officer(s) of the soliciting entity, under oath, within 90 days prior to the date upon which said copy is filed with the Director.
(C) The disclosure statement shall be accompanied by the Internal Revenue Service Form 990 most recently filed by the soliciting entity, and each succeeding Form 990 shall, by copy, be filed with the Director so long as the soliciting entity shall continue making charitable solicitations within the city. Such filing will satisfy all periodic reporting requirements under this chapter.
(D) Unless the applicant is exempt from paying fees under § 116.02(C), every registration statement shall be accompanied by a $50 registration and processing fee, which fee is non-refundable.
(Ord. 13-2005, passed 11-7-2005)
(A) Within ten working days of the receipt of the registration statement, the Administrator shall either issue a certificate of registration or notify the registrant that the registration statement does not comply with requirements of § 116.03(A) and specifically identify what information or explanation has not been furnished.
(B) Within five working days of the receipt of written information or explanation not previously furnished by the registrant, the Administrator shall issue the certificate of registration, unless the Administrator determines:
(1) Any statement made in the application is untrue, false, misleading, incomplete or factually incorrect; and/or
(2) The applicant or the principal officers of the organization submitting the application have been previously convicted of violating the provisions of this chapter, or convicted of violating similar statutes or ordinances enacted by other jurisdictions to regulate the conduct of charitable solicitations, or convicted of any crime involving fraud or theft by deception in the last five years.
(C) In the event that the Administrator makes an affirmative finding as to divisions(B)(1) and/or (B)(2) of this section, the Administrator shall give written notice to the applicant by certified mail, which notice states the deficiency found in applicant’s registration statement, and that the registration is denied.
(D) In the event that a registration is denied for any reason, the applicant may request a hearing before the Administrator or his or her designee by filing with the Administrator within five working days of receipt of the Administrator’s denial a written request that the Administrator reconsider the denial. The request shall set forth with specificity the reasons for the request. The Administrator shall conduct a hearing within 15 working days of the date of receipt of the applicant’s request, unless the applicant requests an extension and agrees, in writing, not to conduct any solicitation activity during the period prior to the hearing. The applicant may be present in person or by representative and shall be entitled to legal counsel. Additionally, the applicant shall be entitled to introduce evidence on his or her behalf and correct any identified errors or omissions in the registration statement. The Administrator shall issue a decision within ten working days after the hearing.
(E) In the event the Administrator issues a decision adverse to the applicant, the applicant may appeal to the Oldham Circuit Court within 30 days after the Administrator’s denial.
(F) During the pendency of any certificate of registration issued pursuant to this chapter, the registrant shall advise the Administrator within five working days of any supplemental information required on the registration statement. The registrant shall also notify the Administrator within five working days of any changes in the information provided by the registrant on the registration statement, which occur during the effective period of the certificate of registration.
(G) A certificate of registration issued by the Administrator to any person or organization is non-transferable and shall bear the name and address of the person or organization conducting the solicitation, the number of the certificate of registration, the date of issuance, the effective dates of the certificate of registration, and the methods of solicitation the registrant has proposed to use for all solicitations conducted pursuant to such certificate. Each such certificate shall have prominently printed thereon the following: “The issuance of this certificate of registration is not an endorsement by the City Government or any of its departments, officers, or employees.” No certificate of registration shall be valid for a period beyond December 31 of the calendar year in which it was issued.
(H) A certificate of registration for a registrant may be renewed annually upon payment of a $50 renewal fee. Registrants exempt under § 116.02(C) shall not be required to submit a payment. At the time of the renewal, the registrant shall update its registration statement by providing current and accurate information with respect to all items initially required to be on the registration statement as delineated in the provisions of § 116.03.
(Ord. 13-2005, passed 11-7-2005)
(A) No later than 90 days after the expiration of the certificate of registration, each registrant shall file a closing statement with the Administrator. Except as provided to the contrary herein, the closing statement shall be a financial statement that is either:
(1) On a form provided by the Administrator for this purpose and sworn to before a notary public by the individual who signed the registration statement on behalf of the registrant; or
(2) Audited by a certified public accountant.
(B) Whether submitted on the form provided by the Administrator or audited by a certified public accountant, the closing statement shall indicate the total contributions collected or pledged from the solicitation, the purpose or purposes for which such contributions have been or will be disbursed by the registrant, all costs incurred in and related to the solicitation showing the date and payee of each expenditure, any incurred but unpaid expenses and any other anticipated disbursements of collected or pledged contributions showing the actual or projected date of each disbursement. If funds have been or will be kept by the registrant for over 30 days before disbursement for any purpose, the name of the financial institution, if any, with which such funds have been or will be deposited and the account numbers, the requirement to show the total contributions represented by any food or tangible property, other than money, that has been collected or pledged may be satisfied by estimating the monetary value of the food or other tangible property to the nearest multiple of $100.
(C) All registration statements and closing statements filed with the Administrator shall be public records and shall be available to the public in conformity with the Kentucky Open Records Act, KRS 61.870 et seq.
(D) The Administrator shall compile all closing financial statements from all registrants registered pursuant to this chapter into booklet form to be made available to the general public. The Administrator shall update this information at least every six months.
(Ord. 13-2005, passed 11-7-2005)
(A) Before engaging in the business of a professional solicitor or fundraising consultant in the city, any person who intends to act as a professional solicitor or fundraising consultant shall first comply with all applicable provisions of the KRS 367.650 through 367.669, and shall register with the Administrator by providing the following information:
(1) A photocopy of the letter of compliance from the Attorney General of Kentucky with the assigned registration number indicated thereon;
(2) A registration form provided by the Administrator completed pursuant to and consistent with applicable state law, and which contains provision for the disclosure of any person, professional solicitor, fundraising consultant or telemarketer with whom the registrant may or has subcontracted or engaged in any manner directly or indirectly to solicit any charitable contributions; and
(3) Proof of registration with the city if required to do so by law.
(B) Every registration statement shall be accompanied by a fee of $200 for a professional solicitor, and a fee of $100 for a fundraising consultant. Such fee will be non-refundable.
(C) Within ten working days of the receipt of the registration statement, the Administrator shall either issue a certificate of registration upon compliance of all requirements contained in division (A) of this section, or, notify the registrant that the registration statement does not comply with this chapter, and specifically identify what information has not been furnished that is required before a certificate of registration can be issued. Within five working days of receipt of the information requested, but previously not furnished by the registrant, the Administrator shall issue the certificate of registration provided all requirements of this chapter have been met. In the event these requirements are not satisfied, the Administrator shall give written notice to the registrant by certified mail, which notice states the deficiency found in the registrant’s information, and that the registration has been denied. In the event the registration is denied, the registrant may request a hearing before the Administrator or his or her designee by filing with the Administrator within five working days of receipt of the Administrator’s denial a written request that the Administrator reconsider the denial. The request shall specifically set forth the reasons for the request. The Administrator shall conduct a hearing within 15 working days of the date of receipt of the applicant’s request, unless the applicant requests an extension and agrees, in writing, not to conduct any solicitation activity during the period prior to the hearing. The applicant may be present in person or by representative and shall be entitled to legal counsel. Additionally, the applicant shall be entitled to introduce evidence on his or her behalf and correct any identified errors or omissions in the registration statement. The Administrator shall issue a decision within ten working days after the hearing. In the event the Administrator issues a decision adverse to the registrant, the registrant may appeal to the Oldham Circuit Court within 30 days after the Administrator’s denial.
(D) A certificate of registration issued by the Administrator to any person or organization is non-transferable and shall bear the name and address of the person or organization registering as a professional solicitor or fundraising consultant, and the termination date of the certificate of registration shall be December 31 of the year in which it was issued. Each such certificate shall have properly printed thereon the following: “The issuance of this certificate of registration is not an endorsement by the City of La Grange or any of its departments, officers or employees.”
(E) A certificate of registration for a professional solicitor or a fundraising consultant may be renewed annually upon payment of a $200 renewal fee for a professional solicitor or a $100 renewal fee for a fundraising consultant. At the time of the renewal, the professional solicitor or fundraising consultant shall update its registration statement by providing current and accurate information with respect to all items initially required to be on the registration statement by divisions (A) and (C) of this section.
(Ord. 13-2005, passed 11-7-2005)
(A) All persons, professional solicitors and fundraising consultants shall exhibit evidence of their certificate of registration at the site of solicitation. The charity for which the proceeds of the public solicitation will be used shall be legibly posted on any receptacle used for such purpose at the site of solicitation.
(B) Solicitations, which are conducted on a highway, shall conform to all of the provisions of § 116.09(O).
(Ord. 13-2005, passed 11-7-2005)
(A) The Administrator shall require such person to show cause why his or her registration should not be suspended, revoked or not renewed, if the Administrator determines that any registrant:
(4) Has been convicted of any crime involving, fraud or theft by deception in the last five years.
(B) The Administrator shall send written notice of the show cause hearing by certified mail return receipt requested, and shall state the grounds for the hearing as well as the time and date of the hearing.
(C) The Administrative hearing shall be held within 15 working days of the date of the notice. Failure or refusal to accept the notice may not be grounds for delaying or otherwise challenging the hearing.
(D) The Administrator shall issue a decision within ten working days of the completion of the hearing. Should the decision be adverse to the registrant, the registrant shall have 30 days to appeal the Administrator’s decision to the Oldham Circuit Court. During that time period, the registrant is prohibited from soliciting unless otherwise ordered by the Oldham Circuit Court.
(Ord. 13-2005, passed 11-7-2005)
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