§ 62-68. Permit and bond required for promoters.

(a)

No promoter, or employee or agent of any promoter, shall conduct, manage or carry on any solicitation for contributions for charitable purposes, or represented to be for charitable purposes, unless such promoter shall first have obtained a promoter's permit from the committee. Application for a promoter's permit shall be sworn to or affirmed by the promoter and filed at the same time and in the same manner as the application for the charitable solicitations permit under section 62-56, except that an application for an annual or a continuing permit for a promoter shall be filed at least 30 days prior to the proposed effective date of the promoter's permit. The promoter's permit application shall contain the following information and documentation:

(1)

The applicant's personal and business names;

(2)

The applicant's address, including the principal office and local headquarters, if any;

(3)

The name of the person for whom the solicitation will be conducted;

(4)

A true copy of the contract between the promoter and such person, or, if no written contract has been entered into, the terms and conditions, including basis for compensation, under which the promoter will conduct the solicitation for such person;

(5)

The period during which the permit is to be effective; and

(6)

Such other information as may be reasonably requested by the committee to determine that the solicitation activities by the promoter will not be contrary to the public welfare.

(b)

At such time as an application for a promoter's permit is filed, the promoter shall file with the county tax and license collector the bond of a corporate surety in the penal sum of $5,000.00 conditioned as follows:

(1)

Such bond shall be executed by the promoter and a corporate surety duly authorized to transact business in the state and acceptable to the committee. The total aggregate liability on such bond shall be limited to the sum of $5,000.00. The bond shall be conditioned upon the strict compliance by the principal with each and all of the sections of this division and to the payment of any pecuniary loss sustained by any donor or by any other person or organization on whose behalf any funds or personal property were solicited or received by the principal. The bond shall remain in full force and effect for the entire period of the promoter's permit and any extension thereof and final disposition of all funds solicited.

(2)

The surety may cancel such bond and be relieved of further liability thereunder by filing a 30-day written notice of such cancellation in the office of the county tax and license collector. Such cancellation shall not discharge any liability incurred or accrued thereunder prior to the termination of such 30-day period. Failure of the promoter to file a new bond on or before the effective date of cancellation of any bond so canceled shall automatically suspend the permit until a new bond has been filed.

(3)

Any donor or person or organization who sustains any loss covered by such bond may, in addition to any other available remedy, bring an action in the name of such person or organization upon such bond for the recovery of any damage sustained. Upon any such action being commenced, such bond shall not be void upon a first recovery thereon, but may be sued upon from time to time until the whole of such penalty shall have been exhausted. The time within which any action may be brought against a surety upon any bond filed pursuant to this subsection shall, by express provision of the bond to that effect, be limited to a period of two years from and after the discovery by the person aggrieved of the act or default complained of.

(c)

Within 30 days after the promoter has faithfully complied with this section, and if the committee finds that all the statements made in the application are true, and unless each of the members of the committee finds that the issuance of a promoter's permit to the promoter would be contrary to the public interest, the committee shall issue a promoter's permit to the applicant if the committee has issued a corresponding charitable solicitations permit to the person engaging or employing such promoter. The promoter's permit shall be effective only during the period of time that the corresponding charitable solicitations permit is effective or such shorter period of time as shall be designated by the committee and endorsed upon the promoter's permit. However, if a promoter's permit is issued after the issuance of an annual or a continuing charitable solicitations permit, the promoter's permit shall be effective only during the period of time not to exceed 90 days as shall be designated by the committee and endorsed upon the promoter's permit. No promoter shall conduct, manage or carry on any solicitation for charitable purposes for any person except during the time such person holds a valid and effective charitable solicitations permit issued pursuant to this division, and subject to the conditions of such permit. The promoter's permit shall not remain in effect for any period of time during which the corresponding charitable solicitations permit is invalid or ineffective.

(d)

In addition to the requirements imposed by this division, every promoter and every agent or representative of a promoter who engages in soliciting contributions under this division shall pay to the city any applicable license fees prescribed in any other section of this Code.

(Ord. No. 97-01, § 2(5.64.180), 1-2-1997; Ord. No. 97-13, § 2, 3-26-1997; Ord. No. 97-17, § 2, 9-24-1997)