CHAPTER 122

PEDDLERS, SOLICITORS AND TRANSIENT MERCHANTS

122.01    DEFINITIONS. For use in this chapter, the following terms are defined:

1. “Peddler” means and includes every person, whether an individual, a firm, corporation, partnership, or association, and whether owner, agent, bailee, or consignee or employee, who shall bring or cause to be brought within the City any goods, wares or merchandise of any kind, nature or description, with the intention of temporarily or intermittently selling or offering to sell at retail such goods, wares, or merchandise within the City, or who operates out of a vehicle which is parked anywhere within the City limits. A peddler engaging in business shall be presumed to be temporarily or intermittently in business unless it is the intention of such peddler to remain continuously in business in the City as a merchant for a period of more than thirty (30) days.

2. “Solicitor” means any person who solicits or attempts to solicit from house-to-house or upon the public street an order for goods, subscriptions or merchandise to be delivered at a future date.

3. “Transient merchant” means any person, firm or corporation who engages in a temporary or itinerant merchandising business and in the course of such business hires, leases or occupies any building or structure whatsoever. Temporary association with a local merchant, dealer, trader or auctioneer, or conduct of such transient business in connection with, as a part of, or in the name of any local merchant, dealer, trader or auctioneer shall not exempt any person, firm or corporation from being considered at transient merchant.

122.02    LICENSE REQUIRED. Any person engaging in peddling, soliciting or in the business of a transient merchant in the City without first obtaining a license as provided in this chapter shall be in violation of this chapter.

122.03    LICENSE FEE. All peddlers, solicitors and transient merchants as defined in this chapter, who sell or offer for sale, goods, wares or merchandise on the public streets or from house to house, shall pay a license fee as established by resolution of the Council. All license fees shall be paid to the City Clerk.

122.04    APPLICATION FOR LICENSE. Any peddler, solicitor or transient merchant desiring a license, at least three days prior to the first day any sale is made, shall file with the Clerk an application in writing, duly verified by the person proposing to sell or offer to sell at retail any goods, wares, or merchandise, or to engage in or conduct a temporary or intermittent business for the sale at retail of any goods, wares or merchandise, which application shall include the following facts:

1. The name, residence and post office address of the person making the application, and if a corporation, the names and addresses of the officers thereof, and if a firm, partnership or association and not a corporation, the names and addresses of all members thereof.

2. If the application is made by an agent, bailee, consignee or employee, the application shall so state and set out the name and address and social security number of such agent, bailee, consignee, or employee and shall also set out the name and address of the owner of the goods, wares and merchandise to be sold or offered for sale.

3. If the applicant is a corporation, the application shall state whether or not the applicant is an Iowa corporation or a foreign corporation, and if a foreign corporation, shall state whether or not such corporation is authorized to do business in Iowa.

4. The date or dates upon which said goods, wares or merchandise shall be sold or offered for sale, or the date or dates upon which it is the intention of the applicant to engage in or conduct a temporary or intermittent business.

5. The description and license number of all motor vehicles used by the peddler and solicitor while engaging in peddling or soliciting.

6. Any convictions for consumer fraud or theft.

7. A copy of the Iowa Sales Tax Permit.

8. A drawing of the location where selling will take place (one location per license).

9. If not a Burlington resident, a letter from the Police Chief or Sheriff where permanent address is located, listing any arrest for consumer fraud or theft and the location.

122.05    LICENSE EXEMPTIONS. The provisions of this chapter do not apply to the following persons:

1. Newspaper delivery persons;

2. Members of local Cub Scouts, Boy Scouts, and Girl Scouts, Campfire Girls, Blue Birds, 4-H Club, Future Farmers of America, and similar organizations;

3. Students representing the Burlington Community School District and any other student who lives in Burlington, Iowa, and is soliciting on behalf of his or her school;

4. Milk delivery persons;

5. Persons customarily calling on businesses or institutions for the purposes of selling products for resale or institutional use;

6. Persons selling the products of their farm or garden.

122.06    NO SELLING OR SOLICITING IN CITY PARKS. Licensees under this chapter shall not sell or solicit in any of the City parks without special permission of the City Manager.

122.07    APPROVAL BY POLICE CHIEF. Upon receipt of any application, the Clerk shall forward the application to the Police Chief, who shall either approve or disapprove the issuance of the license, and the Police Chief shall endorse such approval or disapproval on the application itself and thereafter return same to the Clerk.

122.08    BONDS REQUIRED.

1. Transient Merchants. Before a license under this chapter is issued to a transient merchant, an applicant shall provide to the Clerk evidence that the applicant has filed a bond with the Secretary of State in accordance with Chapter 9C of the Code of Iowa.

2. Surety Bond. Any person applying for a peddler’s, solicitor’s or transient merchant’s license shall be required to file a cash bond or surety bond approved by the Clerk, in the sum of one thousand dollars ($1,000.00), conditioned upon faithful performance in the conduct of the business and which shall be for the benefit of any person deceived, defrauded, or cheated by such peddler, solicitor or transient merchant to the extent of the damages sustained by such person deceived, defrauded or cheated.

122.09    DISPLAY OF LICENSE. Each solicitor or peddler shall at all times while doing business in this City keep in his or her possession the license provided for herein, and shall, upon request of prospective customers, exhibit the license as evidence that he or she has complied with all requirements of this chapter. Each transient merchant shall display publicly his or her license in his or her place of business.

122.10    LICENSE NOT TRANSFERABLE. Licenses issued under the provisions of this chapter are not transferable in any situation and are to be applicable only to the person filing the application.

122.11    REVOCATION OF LICENSE. After notice and hearing, the Clerk may revoke any license issued under this chapter for the following reasons:

1. Fraudulent Statements. The licensee has made fraudulent statements in the application for the license or in the conduct of the business.

2. Violation of Law. The licensee has violated this chapter or has otherwise conducted the business in an unlawful manner.

3. Endangered Public Welfare, Health or Safety. The licensee has conducted the business in such manner as to endanger the public welfare, safety, order or morals.

122.12    NOTICE. The licensee, and the surety on the licensee’s bond, shall be served with written notice containing particulars of the complaints against the licensee, the ordinance provisions or State statutes allegedly violated, and the date, time and place for hearing on the matter.

122.13    HEARING. The Clerk shall conduct a hearing at which both the licensee and any complainants shall be present to determine the truth of the facts alleged in the complaint and notice. Should the licensee or an authorized representative fail to appear without good cause, the Clerk may proceed to a determination of the complaint.

122.14    RECORD AND DETERMINATION. The Clerk shall make and record findings of fact and conclusions of law, and shall revoke a license only when upon review of the entire record the Clerk finds clear and convincing evidence of substantial violation of this chapter or State law.

122.15    APPEAL. If the Clerk revokes or refuses to issue a license, the Clerk shall make a part of the record the reasons therefor. The licensee, or the applicant, shall have a right to a hearing before the Council at its next regular meeting. The Council may reverse, modify or affirm the decision of the Clerk by a majority vote of the Council members present and the Clerk shall carry out the decision of the Council.

122.16    EFFECT OF REVOCATION. Revocation of any license shall bar the licensee from being eligible for any license under this chapter for a period of one year from the date of the revocation.

122.17    CHARITABLE AND NONPROFIT ORGANIZATIONS. Authorized representatives of charitable or nonprofit organizations operating under the provisions of Chapter 504A of the Code of Iowa desiring to solicit money or to distribute literature are exempt from the operation of Sections 122.03 and 122.08. All such organizations are required to submit in writing to the Clerk the name and purpose of the cause for which such activities are sought, names and addresses of the officers and directors of the organization, the period during which such activities are to be carried on, and whether any commissions, fees or wages are to be charged by the solicitor and the amount thereof. If the Clerk finds that the organization is a bona fide charity or nonprofit organization the Clerk shall issue, free of charge, a license containing the above information to the applicant. In the event the Clerk denies the exemption, the authorized representatives of the organization may appeal the decision to the Council, as provided in Section 122.15 of this chapter.

122.18    AGENT FOR SERVICE OF PROCESS. Before any license is issued, the applicant shall first sign an appointment naming the Clerk as agent of the licensee for service of process in the event of claim or litigation against such registrant arising out of or in connection with any peddling or solicitation. This shall not apply to corporations which have a registered agent listed in the Iowa Secretary of State’s Office.

122.19    PENALTY. Any person violating any of the provisions of this chapter shall, upon conviction, be subject to the penalties set forth in Section 1.14 of this Code of Ordinances.

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