American Charities for Reasonable Fundraising Regulation, Inc. v. Pinellas County

32 F. Supp. 2d 1308, 1998 U.S. Dist. LEXIS 18826, 1998 WL 839860
District Court, M.D. Florida·Decided November 12, 1998·No. 97-2058-CIV-T-17B·Published·Cited by 5 cases

Opinion

ORDER ON CROSS MOTIONS FOR SUMMARY JUDGMENT

KOVACHEVICH, Chief Judge.

This cause is before the Court on the following:

Dkt. 38 Motion for summary judgment by Plaintiffs, filed June 10,1998.

Dkt. 39 Memorandum of law in support of Plaintiffs’ motion for summary judgment, filed June 10, 1998.

Dkt. 40 Motion for summary judgment by Defendants, filed June 10, 1998.

Dkt. 44 Memorandum of law in support of Defendants’ motion for summary judgment, filed June 12, 1998.

Dkt. 49 Memorandum of law in opposition to Plaintiffs’ motion for summary judgment, filed June 23, 1998.

Dkt. 53 Memorandum of law in opposition to Plaintiffs’ motion for summary judgment, filed June 24, 1998.

The cross motions for summary judgment require this Court to determine whether Pinellas County Ordinance, section 42-266, et seq., Pinellas County Code, regulating the solicitation of charitable contributions, is constitutional. The Court finds that based on the constitutional arguments raised herein, the provisions within Pinellas County Ordinance 42-266, et seq., are constitutional. As to any other constitutional arguments not raised herein, the Court expresses no opinion.

FACTS

The following represent the relevant facts of this case for the purpose of resolving the pending motions.

1. On December 7, 1993, Defendant, Pinellas County (the “County”), enacted ordi *1312 nance No. 93-106 (the “Ordinance”). The Charitable Solicitations Ordinance is codified as Article VII, Pinellas County Code at sections 42-266, et seq. The purpose of the Ordinance is to require registration and public disclosure of persons who solicit charitable contributions within the County. The Ordinance seeks to make the information available to the public in order to prevent fraud or misrepresentation in the solicitation and use of contributions. The County’s jurisdiction under the ordinance embraces the territory within the legal boundaries of the County.

To comply with the Ordinance’s provisions, persons who wish to solicit funds in the County must register with the County, file a sworn application with the required information, pay an application fee, maintain specified records, comply with reporting requirements, and refrain from engaging in fraud or conduct that constitutes a prohibitive act. The Ordinance also places a 30-day time period for granting or denying permits and provides specific procedures governing the denial, suspension, or revocation of a permit.

2. On August 25, 1997, Plaintiffs, American Charities for Reasonable Fundraising Regulation, Inc. (ACFRFR), The Creative Advantage, Inc. (TCA), and Norman W. Leahy (Leahy) (collectively, “Plaintiffs”), brought suit in this Court to enjoin the County from enforcing the Ordinance and seeking a declaratory judgment finding the Ordinance unconstitutional.

3. Plaintiff ACFRFR is a Delaware corporation having its principle place of business in the District of Columbia and is a tax-exempt organization under the Internal Revenue Code. ACFRFR maintains that it appears in this lawsuit as the assignee of a claim and in its representational capacity of various supporters who engage in professional fundraising. Specifically, ACFRFR institutes legal action on behalf of these entities to challenge charitable solicitation laws.

4. Plaintiff TCA maintains that it is a Virginia corporation having its principle place of business in Virginia. TCA describes itself as a direct mail fundraising agency that consults with nonprofit organizations concerning direct mail campaigns.

5. Plaintiff Leahy is an individual who resides in Virginia. He describes himself as a copyrighter who plans to use his copyrighting skills by providing direct mail fundraising letters and public education letters to charities.

6. All Plaintiffs allege that they maintain no presence in the County, solicit no contributions, or otherwise maintain any contacts, within the County that would subject them to the County’s jurisdiction.

7. Defendant, Pinellas County, is a Chartered County of the State of Florida pursuant to Article VIII of the Florida Constitution. Section 496.421, Florida Statutes, gives the County the specific authority to pass laws regulating charitable solicitation.

8. Defendant, Nugent Walsh, is the Chairperson of a volunteer board created pursuant to section 42-273, Pinellas County Code. Section 42-274 gives the Chairperson the authority to enforce the provisions of the Ordinance.

9. Defendant, Sheryl Lord, is the Director of Consumer Protection of Pinellas County and a Code Enforcement Officer under the Ordinance. The Ordinance vests Lord with the responsibility to grant or renew charitable solicitation permits, as well as the authority to issue citations for violation of the Ordinance.

10. Chapter 496, Florida Statutes, also regulates the solicitation of charitable contributions within the State of Florida. The purpose and intent behind Florida’s charitable solicitation laws is similar to that behind the Ordinance.

11. Professional fundraisers who are required to register with the State of Florida are also required to register with the County. Applicants seeking a permit with the County must register with the State of Florida prior to submitting the County application. Section 42-292(b)(8) requires applicants to show proof of compliance with the State of Florida requirements by attaching a copy of the registration or exemption statement issued by the Florida Division of Consumer Protection. Both Florida and the County charge a variable fee for initial and renewal permits.

*1313 12. On April 15, 1997, the President of TCA, Marilyn Price, sent a letter to the Pinellas County Department of Consumer Protection requesting an interpretation of whether TCA must register with the County. TCA’s letter explained that it carried on no activity in the County and entered into no contracts with any entity located in the County. On April 25, 1997, Mr. John Wood of the Department of Consumer Protection telephoned Ms. Price in response to her letter. Plaintiff alleges that Mr. Wood advised her that both the charity and its fundraising consultant must register with the County if the charity raises funds in the County.

13. On April 21, 1997, Plaintiff Leahy sent a letter to the County’s'Department of Consumer Protection to inquire whether he was required to register. On May 16, 1997, Department of Consumer Protection Investigator Susan Tootle sent a reply letter to Leahy and advised him that Professional Fundraising Consultants must register with the County.

14. On August 25, 1997, Plaintiffs filed suit, (Dkt.l), in this Court and attacked the Ordinance’s constitutionality, alleging the following causes of action:

1. Violation of the Commerce Clause: Lack of Nexus.
2. Violation of the Commerce Clause: Undue Burden on Interstate Commerce.
3. First Amendment: Facial Challenge.
4.

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American Charities for Reasonable Fundraising Regulation, Inc. v. Pinellas County, 32 F. Supp. 2d 1308, 1998 U.S. Dist. LEXIS 18826, 1998 WL 839860 (M.D. Fla. 1998).

32 F. Supp. 2d 1308 (American Charities for Reasonable Fundraising Regulation, Inc. v. Pinellas County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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