Chico Municipal Code § 5.24.010 Purpose

This chapter is adopted pursuant to the municipal affairs provisions of the City Charter for the purpose of regulating house-to-house peddling and soliciting within the city in order to ensure that such activities are conducted in a reasonable manner and at reasonable times, to provide some means of redress for those citizens who are the victims of fraudulent offers or shoddy merchandise, and to detect, to the extent reasonably possible, those persons with recent criminal histories who are likely to engage in house- to-house peddling or soliciting within the city in connection with or as part of an unlawful activity.

(Ord. 2062)

Unless the contrary is stated or clearly appears from the context, the following definitions shall govern the construction of the words and phrases used in this chapter:

A. Charitable organization. The term “charitable organization” shall mean any organization which is engaged in charitable activities and exempt from taxation under Section 501(c)(3) of the Internal Revenue Code.

B. House. The term “house” shall mean any building, portion of a building or mobile home used as a single-family dwelling unit.

C. Peddling. The term “peddling” shall mean the act of traveling about for the purpose of selling goods, wares, merchandise or services which are delivered immediately at the time of sale.

D. Soliciting. The term “soliciting” shall mean the act of traveling about for the purpose of taking orders for goods, wares, merchandise, or services which are to be delivered in the future, and/or the act of requesting money or some other thing of value based on the representation that the money or other thing of value will be used in the future for a charitable purpose.

(Ord. 2062)

The administrative services director shall have the primary responsibility for the administration of the provisions of this chapter and the term “director” as used in this chapter shall refer to the director of the administrative services department. In carrying out such responsibilities, the duties of the administrative services director shall include, but not be limited to, acting on all applications for a permit required by this chapter and conducting permit revocation proceedings when appropriate. The administrative services director shall be assisted in administering the provisions of this chapter by the chief of police who shall be responsible for determining whether an applicant for a permit required by this chapter has a criminal record and enforcing the criminal sanctions provided for by this chapter in those situations in which a person unlawfully engages in house-to-house peddling or soliciting without a permit required by this chapter.

(Ord. 2062, Ord. 2439 §37)

All notices to be served on a person filing an application for a permit required by this chapter or issued a permit pursuant to the provisions of this chapter shall be deemed served when made in writing and deposited in the United States mail, first class and postage prepaid, addressed to such person at the address as set forth in the permit application.

(Ord. 2062, Ord. 2268)

Any person aggrieved by a decision, determination or action of the administrative services director made or taken pursuant to the provisions of this chapter may appeal such decision, determination or action to the city council within the time and in the manner provided for by Title 2 of this code. Where such appeal is from a decision of the administrative services director to revoke a permit issued pursuant to the provisions of this chapter, the action of the administrative services director revoking such permit shall be stayed pending a final decision by the city council on the appeal.

(Ord. 2062, Ord. 2439 §38)

Except as hereinafter provided by this chapter, it shall be unlawful for any person to undertake or engage in the practice of peddling or soliciting from house to house within the city without a permit authorizing such peddling or soliciting issued by the administrative services director in the manner hereinafter provided by this chapter.

(Ord. 2062, Ord. 2439 §39)

Notwithstanding the provisions of this chapter to the contrary, a permit authorizing house-to-house peddling or soliciting shall not be required when:

A. The person undertaking or engaging in the peddling or soliciting is under 16 years of age; or

B. The person undertaking or engaging in the peddling or soliciting is undertaking or engaging in such activities solely in the capacity as an agent or representative of a charitable organization.

C. The person undertaking or engaging in the peddling or soliciting is a licensed realtor soliciting new real estate listings.

(Ord. 2062, Ord. 2093, Ord. 2268)

Applications for a permit required by this chapter shall be filed in the office of the director, shall be in the form prescribed by the director, and shall contain the following information:

A. The name, address, date of birth and telephone number of the applicant.

B. All dates during which the applicant proposes to engage in house to house peddling or soliciting within the city.

C. A brief description of goods, wares, merchandise or services to be peddled by the applicant or for which the applicant proposes to solicit orders.

D. If the applicant proposes to peddle or solicit orders for goods, wares, merchandise or services within the city as the employee or agent of a company, the name, address and telephone number of the company, and the name, address and telephone number of the employee or agent of the company who is coordinating or supervising the applicant's peddling or soliciting activities.

E. If the applicant has been convicted of a criminal act involving theft, fraud, the intentional infliction of bodily injury or other act involving moral turpitude, a statement setting forth the nature of the conviction, the date of conviction and the court in which the conviction occurred.

F. Such other information as may reasonably be required by the director in order to administer the provisions of this chapter.

(Ord. 2062, Ord. 2439 §40)

Every application for a permit required by this chapter shall be accompanied by a permit fee in an amount which shall be established by resolution of the city council and which shall be based on the estimated cost of processing permit applications and otherwise administering the provisions of this chapter.

(Ord. 2062)

Every application for a permit required by this chapter shall be accompanied by a permit bond issued by a surety company licensed to do business in the State of California and having a financial rating in Best's Insurance Guide of at least “B.”

Such bond shall be in the amount of one thousand dollars ($1,000), shall identify the permit applicant as the principal on the bond, and shall include the city and any city resident ordering goods or services from the permit applicant as obligees on the bond. In addition, such bond shall be conditioned on the permit applicant faithfully observing and complying with the requirements of this code, the provisions of any permit issued to the permit applicant pursuant to this chapter, and the terms and conditions of any oral or written agreement or order for goods or services made or taken in the course of house-to- house peddling or soliciting authorized by such permit. Prior to issuance of a permit, the bond shall be approved as to form by the city attorney.

Where applications have been filed for permits required by this chapter which authorize house-to-house peddling or soliciting by two or more persons as employees or agents of the same company or other business organization, a joint permit bond may be filed by such company or other business organization on behalf of all of such employees or agents in lieu of individual bonds for each such employee or agent. Such joint bond shall be in an amount equal to the product of one thousand dollars ($1,000) multiplied by the total number of employees or agents of such company or other business organization who seek to engage in house-to-house peddling or soliciting pursuant to a permit required by this chapter, and shall indicate that the company or other business organization, as well as all such employees or agents, are principals on the bond.

(Ord. 2062)

Upon receipt of an application for a permit required by this chapter, the director shall immediately forward a copy of the application to the chief of police who, based solely on a review of criminal records maintained by the city police department or by other law enforcement organizations within the County of Butte, shall promptly advise the director whether the applicant has been convicted of a criminal act involving fraud, theft, the intentional infliction of bodily injury or other act involving moral turpitude within the preceding seven-year period.

(Ord. 2062, Ord. 2439 §41)

Within ten calendar days following the filing of an application for a permit required by this chapter, the director shall act on the application either by approving the application and issuing a permit authorizing the applicant to engage in house-to-house peddling or soliciting within the city, or by denying the application, all in the manner hereinafter provided by this chapter.

(Ord. 2062, Ord. 2439 §42)

Where the director determines that a completed application has been filed for a permit required by this chapter in the manner provided for herein, the director shall approve the application and issue such permit unless the director, after considering the application and information on the criminal record of the applicant provided by the chief of police, determines that the applicant has been convicted of a criminal act involving fraud, theft, the intentional infliction of bodily injury or other act involving moral turpitude within the preceding seven-year period. Such permit shall be in a form prescribed by the director and shall set forth the name of the permittee and, if the permittee is peddling or soliciting as the employee or agent of a company or other business organization, the name and address of the company or other business organization; the dates the permittee is authorized to engage in peddling or soliciting within the city pursuant to the permit; and such other information as may be reasonably required by the director.

(Ord. 2062, Ord. 2439 §43)

HOUSE-TO-HOUSE PEDDLING AND SOLICITING

Where the director determines that an application has been filed for a permit required by this chapter which is incomplete, or where the director, after considering the application and information on the applicant's criminal record provided by the chief of police, determines that the applicant has been convicted of a criminal act involving fraud, theft, the intentional infliction of bodily injury or other act involving moral turpitude within the preceding seven-year period, the director, by written notice served on the applicant in the manner hereinbefore provided by chapter, shall deny the application and permit. In addition to notifying the applicant that the application and permit have been denied, such notice shall set forth a brief statement of the basis for the determination of the director to deny the application and permit, and the right of the applicant to appeal such determination to the city council within the time and in the manner provided by Chapter 2.80 of this code.

(Ord. 2062, Ord. 2439 §42)

Every person undertaking or engaging in house-to-house peddling or soliciting within the City pursuant to a permit required by this chapter shall display their permit on their person in a manner that renders the permit plainly visible to any other person who is the subject of the permittee’s peddling or solicitations.

(Ord. 2062)

A. Grounds for permit revocation. The director may revoke a permit authorizing house- to-house peddling or soliciting issued in the manner provided by this chapter if the director finds that:

1. The permittee was convicted of a criminal act involving fraud, theft, intentional infliction of bodily injury or other act involving moral turpitude within the preceding seven-year period which was not set forth in the permit application or revealed by the chief of police's review of local criminal records at the time the application was filed.

2. There is substantial evidence that the permittee committed a criminal act involving fraud, theft, intentional infliction of bodily injury or any other act involving moral turpitude subsequent to the issuance of the permit.

3. The permittee is engaging in house-to-house peddling or soliciting within the city in violation of the conditions of such permit or in violation of any federal, state or city law or regulation applicable thereto, and the permittee has been served with a notice by the director advising the permittee of the violation and requiring immediate correction thereof and the permittee has failed to correct the violation in the manner required by the notice.

4. The permittee is engaging in house-to-house peddling or soliciting within the city in violation of the conditions of such permit or in violation of any federal, state or city law or regulation applicable thereto, after having been served with two prior notices of violation by the director.

B. Notice of revocation. Where the director determines to revoke a permit authorizing house-to-house peddling or soliciting issued in the manner provided by this chapter, the director shall cause notice of the permit revocation to be served on the permittee in the manner hereinbefore required by this chapter. In such notice, the director shall state the reasons for the determination to revoke the permit and shall set forth the right of the person to whom the permit was issued to appeal such determination to the city council within the time and in the manner required by Chapter 2.80 of this code.

(Ord. 2062, Ord. 2439 §45)

Every permittee or other person undertaking or engaging in house-to-house peddling or soliciting within the city, including, but not limited to, any person undertaking or engaging in such activities who is under 16 years of age and/or who is undertaking or engaging in such activities on behalf of a charitable organization shall conduct peddling and soliciting activities only during the following times and in the following manner:

A. A person undertaking or engaging in house-to-house peddling and soliciting within the city shall conduct such activities only between the hour of 9:00 a.m. and the hour of 7:00 p.m. or sunset, whichever first occurs.

B. A person undertaking or engaging in house to house peddling or soliciting shall immediately state their name, identify any company or organization they represent, and briefly describe the goods or services they seek to sell when first approaching a potential customer, all in the manner required by Section 17500.3 of the Business and Professions Code.

C. Where a person is engaging only in soliciting charitable contributions, such person shall immediately state their name and clearly identify the charitable organization they represent when first approaching a potential donor.

D. Where a person executes a “home solicitation contract,” as defined in Section 1689.5 of the Civil Code, with a customer, such contract shall be in the form, be accompanied by a notice of cancellation and otherwise be tendered to a customer in the manner required by Section 1689.5 et seq. of the Civil Code.

(Ord. 2062)

Every permittee or other person engaging in house-to-house peddling and soliciting within the city, including, but not limited to a person undertaking or engaging in such activities who is under 16 years of age and/or a person undertaking or engaging in such activities as a representative of a charitable organization, shall conduct such peddling and soliciting activities in compliance with all applicable federal or state laws or regulations, as well as all other applicable laws and regulations of the city. In this regard, any person issued a permit pursuant to the provisions of this chapter shall not undertake house-to- house peddling or soliciting authorized by such permit unless and until the permittee has paid the business license taxes and secured a business license as required by Chapter 3.32 of this code.

(Ord. 2062)

Any person aggrieved by the failure of a person peddling or soliciting under a permit issued pursuant to this chapter to deliver goods or services in the manner provided for by the oral or written agreement or order for such goods or services shall have a right of action on the permit bond posted by such permittee in the manner required by this chapter.

(Ord. 2062)

Any violation of the provisions of this chapter, including any violation of the terms and conditions of a permit issued pursuant to this chapter, shall be an infraction which is punishable by a fine in the amount provided for by Section 1505 of the Charter of the City of Chico.

(Ord. 2062, Ord. 2136 §8)