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Amendment to City Code — Solicitor and Transient Merchant LicensesCity of Dubuque City Council ACTION ITEMS # 4. Copyrighted May 19, 2025 ITEM TITLE: Amendment to City Code — Solicitor and Transient Merchant Licenses SUMMARY: City Clerk recommending approval of the ordinance amending City Code to establish separate licenses for solicitors and transient merchants, revise background check and application procedures, and update the criteria for license denial. ORDINANCE Repealing Title 4 Business And License Regulations, Chapter 5 Solicitor's License And Replacing It With New Chapter 5 Containing Articles A And B For Solicitors And Transient Merchants SUGGUESTED Receive and File; Motion B; Motion A DISPOSITION: ATTACHMENTS: 1. Staff Memo 2. Ordinance Page 932 of 950 THE CITY OF DUB E-E Masterpiece on the Mississippi Dubuque City Clerk's Office City Hall AIF� 50 W. 13'h Street Dubuque,lA 52001-4864 (563) 589-4100 office (563) 589-0890 fax ctyclerk@cityofdubuque.org 2007.2012�2013 www.cityofdubuque.org 2017*2019 TO: Mayor Brad M. Cavanagh and Members of the City Council FROM: Adrienne N. Breitfelder, City Clerk SUBJECT: Amendment to City Code — Solicitor and Transient Merchant Licenses DATE: May 13, 2025 An amendment is proposed to the City Code that updates how we regulate temporary sales activity within the city. Currently, the code groups both door-to-door sales and sales at temporary locations under a single "solicitor" license. To provide greater clarity, the proposed changes would divide this into two separate license types: Solicitor License — for individuals or businesses engaging in door-to-door sales. Transient Merchant License — for sales conducted at temporary locations such as parking lots or other non -permanent venues. This change will help residents, vendors, and staff better understand the type of activity being licensed. It also simplifies the review and processing procedures for City staff and allows for a clearer workflow within our online licensing software. Several Iowa cities of similar size offer two separate licenses, and the term "transient merchant" is defined in the Iowa Code. By offering two distinct licenses, we ensure consistency for vendors operating statewide and align our language with state code. In addition to establishing a new section for Transient Merchants, we are amending the current language to include the following updates: • Clarifying that a background check is conducted for each applicant for a solicitor license and the owner of a transient merchant business. • Specifying that if there are pending criminal charges that could result in license denial upon conviction, the city clerk's office has the authority to place the application on hold for up to 14 days while the criminal charge is resolved. • Removing application language to provide city staff with greater flexibility in modifying the application as needed. • Expanding the grounds for denial to include felony convictions within the past 7 years, any crime involving injury or property damage to another person, or if the applicant is listed on the national sex offender registry. Page 933 of 950 • Indicating that guilty pleas, no contest pleas, or plea agreements resulting in a conviction to a lesser charge may be treated as equivalent to a conviction when evaluating eligibility for a license. • Clarifying the section related to music. The Police Department, responsible for conducting background checks, provided input on the criteria for denial. All city staff involved in reviewing solicitor licenses have been informed of the proposed ordinance amendment and had an opportunity to provide feedback. I recommend approval of the ordinance amending the City Code to establish separate licenses for solicitors and transient merchants, revise background check and application procedures, and update the criteria for license denial. cc: Mike Van Milligen, City Manager Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Pam McCarron, Permit Clerk Jeremy Jensen, Police Chief Joesph Messerich, Assistant Police Chief Scott Baxter, Police Captain Amy Scheller, Fire Chief Derek Paulson, Assistant Fire Marshal Mary Rose Corrigan, Public Health Director Tim Link, Environmental Sanitarian Sydney Althoff, Environmental Sanitarian Wally Wernimont, Planning Services Director Travis Schrobilgen, Assistant Planner Gus Psihoyos, City Engineer Justine Hull, Traffic Engineer Page 934 of 950 Prepared by: Crenna M. Brumwell, Esq. 300 Main Street Suite 330 Dubuque IA 52001 563 589-4381 ORDINANCE NO. 19 - 25 REPEALING TITLE 4 BUSINESS AND LICENSE REGULATIONS, CHAPTER 5 SOLICITOR'S LICENSE AND REPLACING IT WITH NEW CHAPTER 5 CONTAINING ARTICLES A AND B FOR SOLICITORS AND TRANSIENT MERCHANTS. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Title 4 Chapter 5 of the City of Dubuque Code of Ordinances is hereby repealed. Section 2. The Code of Ordinance Title 4 Chapter 5 of the City of Dubuque, Iowa hereby reads as follows: ARTICLE A. SOLICITORS 4-5A-1: DEFINITIONS: As used in this chapter, the following term has the following meaning: SOLICITOR: Any person offering and exposing goods, wares, merchandise, products, or services for sale, or taking or soliciting orders for goods, wares, merchandise, products, or services for future delivery from place to place, house to house, door to door, or street to street, whether the person collects advance payments for such sales or not; but excluding calling upon or soliciting business establishments, professional offices, or institutions, exclusively, or calling on prospective customers by appointment only. 4-5A-2: LICENSE REQUIRED: A. No person may engage in business as a solicitor without first obtaining a license therefor and paying the license fee. 4-5A-3: EXEMPTIONS: This chapter does not apply to the following A. Vendors of goods, merchandise, or services delivered or sold to established customers; B. Nonprofit organizations filed under or authorized by chapter 504 of the Iowa Code or authorized and organized under statutes or regulations of the United States government or approved by the Internal Revenue Service, where such organizations have a permanent office in Dubuque County, Iowa; C. Churches and public and private schools and colleges that have a permanent office in Dubuque County, Iowa; D. Nonprofit clubs and lodges not ordinarily conducted as a business and which do not meet the requirements of chapter 504 of the Iowa Code and that have a permanent office in Dubuque County, Iowa; E. Persons selling their own art or handicrafts either by themselves or through employees, or nonprofit civic, charitable, religious, or educational groups or members or employees thereof engaged in retail sale for the purpose of fundraising; F. Persons that purchase gold, bullion, ingots, precious metals, and jewelry. Such persons are subject to the pawnbroker and secondhand dealer regulations set forth in chapter 6, article A of this title. (Ord. 23-19, 5-6-2019) G. Persons that prepare, market or sell food from a mobile vending unit or mobile pushcart. 4-5A-4: APPLICATION FOR LICENSE: A. An application for a solicitor's license must be filed at the City Clerk's Office on a form provided by the City Clerk. B. The chief of police will investigate each applicant for a solicitor license and a report of such investigation will be attached to the application for consideration by the city clerk. C. The city clerk will, in consultation with the chief of police and upon receipt of an application, with an appropriate bond attached, approve or reject the application considering: a. Whether the statements and representations contained in the application are true, b. Whether the applicant is the holder of an Iowa retailer's sales tax permit, when required/if applicable, and c. If a foreign corporation, whether the entity has the authority to do business in the state of Iowa. D. If, upon receipt and review of an application, it is determined that the applicant has a pending criminal charge which upon conviction would result in denial of a license, the city clerk reserves the right to place the application on hold for up to fourteen (14) days pending resolution of the criminal charge. a. It is the applicant's responsibility to provide any updated information on the outstanding charge(s). b. At the conclusion of fourteen (14) days the City Clerk shall resume processing of the application. E. A license is valid only for the period of time described in the application !&��Y0]ilk IW, An applicant for a license must file with the City Clerk a surety bond in the amount of five thousand dollars ($5,000.00) conditioned on the following: A. That the applicant will fully comply with all ordinances of the City and laws regulating solicitor sales; B. The payment by the applicant of all taxes that may be payable by or due from the applicant to the State of Iowa or the City of Dubuque; C. The payment of any fines that may be assessed by any court against the applicant for violation of the provisions of this chapter; D. The payment and satisfaction of any and all causes of action against the applicant commenced within one year from the date of sale and arising from such sale; provided, however, that the aggregate liability of the surety for all such taxes, fines, and causes of action must in no event exceed the principal sum of such bond; and E. Guaranteeing to any resident of the city that all monies paid will be accounted for and applied according to the representation of the licensee. Said bond will continue in force as to such surety for not less than one year from the date of the license. Action on such bond may be brought by any resident of the city. (Ord. 16-13, 3-4-2013) 4-5A-6: FEES: A solicitor must pay a license fee established by the city manager. (Ord. 16-13, 3-4-2013) 4-5A-7: DISPLAY OF LICENSE: A solicitor shall keep such license in possession at all times while doing business in the City and shall, upon the request of prospective customers, exhibit the license as evidence of compliance with all requirements of this chapter.. (Ord. 16-13, 3-4-2013) 4-5A-8: MISREPRESENTATION: It is unlawful for any solicitor making sales or engaging in or conducting a business under a solicitor's license to make any false or misleading statement or representation regarding any article sold or offered for sale by such solicitor as to condition, quality, original cost, or cost to such solicitor of any article sold or offered for sale, or to sell or offer for sale goods, wares, products, or merchandise of a value in excess of the value thereof as shown by said application, or to sell or offer for sale at retail any goods, wares, products, or merchandise or to engage in or conduct an intermittent or temporary business on any day or at any place other than those shown by such license. A solicitor who violates any provision of this chapter is ineligible for a license for a period of two (2) years from the date of such violation. (Ord. 16-13, 3-4-2013) 4-5A-9: DENIAL, SUSPENSION, OR REVOCATION OF LICENSE: A. The city clerk may, upon good cause, deny issuance or renewal of a license or suspend or revoke any license issued under this article for a period not to exceed one year for any of the following: 1. Violation of any federal, state, or local law, including, but not limited to, a violation of this chapter or any other chapter of this code; 2. Misrepresentation of any material fact in the application for a license; 3. Failure to cooperate with law enforcement; 4. The applicant, licensee, owner, manager, partner, corporate officer, or director has been convicted of a crime involving robbery, burglary, theft, forgery, fraud, or deceptive practices, the possession, manufacture, or delivery of a controlled substance, possession with intent to manufacture or deliver a controlled substance, possession of drug paraphernalia, or nonpayment of excise taxes for a controlled substance, nonpayment of other taxes, or demonstrated insolvency; 5. Misrepresentation of the source, condition, quality, weight, or measure of the product sold by such solicitor; 6. If any judgment recovered against such solicitor with reference to the operation of the business within the city remains unpaid for a period of six (6) months, provided such judgment be not stayed under a supersedeas bond upon appeal from such judgment; 7. The applicant has been convicted in the prior seven (7) year period of a felony or of any crime involving injury to another person or damage to the property of another person; or 8. The applicant is registered on the national sex offender registry. B. A plea of guilty, no contest, or a plea agreement resulting in a conviction to a lesser charge may be considered the equivalent of a conviction for purposes of evaluating eligibility for a permit under 4-5-10(A). C. The city clerk must give written notice of the revocation, suspension, or denial of renewal of any license issued under the provisions of this chapter to the license holder and the surety or sureties furnishing the bond provided for herein. 4-5A-10: APPEAL: Within ten (10) days after notice of denial, suspension, or revocation of a license, a solicitor may file with the city clerk a written notice of appeal to the city manager from such denial, suspension, or revocation. The city manager must provide the solicitor with notice and an opportunity to be heard on the issue of whether the license was properly denied, suspended, or revoked. (Ord. 16-13, 3-4-2013) 4-5A-11: PERSONAL NATURE; TRANSFERABILITY: The solicitor's license granted under this chapter is personal to the applicant only and may not be sold, assigned, or otherwise transferred. (Ord. 16-13, 3-4-2013) 4-5A-12: REPORT TO CITY CLERK UPON LOSS REQUIRED: In the event any license issued under this chapter is lost or mislaid, the licensee must report such fact to the city clerk immediately. A duplicate license will be issued upon payment of the fee as established by the city manager. (Ord. 16-13, 3-4-2013) 4-5A-13: MUSIC: No loudspeaker or other sound system which may disturb the peace is permitted while soliciting. Music is permitted to draw attention to the sales operation but shall not be of a magnitude to create a disturbance in the area where the solicitor locates. ARTICLE B. TRANSIENT MERCHANTS 4-513-1: DEFINITIONS: As used in this chapter, the following term has the following meaning: TRANSIENT MERCHANT: Any business that engages in selling goods, wares, merchandise, products, or services from any fixed or temporary location, which is temporarily maintained or when such business is intermittently carried on and there is no intention to conduct the same permanently within the City. Any person is presumed to be temporarily or intermittently selling or offering to sell goods or services, unless such person intends to and does remain continuously in business at each location where such sales are offered for a period of more than sixty (60) days, (Ord. 16-13, 3-4-2013) 4-513-2: LICENSE REQUIRED: A. No person may engage in business as a transient merchant without first obtaining a license therefor and paying the license fee. B. No person having control of private property within the City may knowingly permit another person to engage in business on or about that property as a transient merchant without first requiring that person to obtain a license therefor. (Ord. 16-13, 3-4- 2013) 4-513-3: EXEMPTIONS: This chapter does not apply to the following: A. Vendors of goods, merchandise, or services delivered or sold to established customers; B. Nonprofit organizations filed under or authorized by chapter 504 of the Iowa Code or authorized and organized under statutes or regulations of the United States government or approved by the Internal Revenue Service, where such organizations have a permanent office in Dubuque County, Iowa; C. Churches and public and private schools and colleges that have a permanent office in Dubuque County, Iowa; D. Nonprofit clubs and lodges not ordinarily conducted as a business and which do not meet the requirements of chapter 504 of the Iowa Code and that have a permanent office in Dubuque County, Iowa; E. Persons selling at wholesale to merchants, persons selling their own art or handicrafts either by themselves or through employees, or nonprofit civic, charitable, religious, or educational groups or members or employees thereof engaged in retail sale for the purpose of fundraising; F. Central Market and other permitted farmers' market businesses licensed in accordance with this Code; or G. Persons that purchase gold, bullion, ingots, precious metals, and jewelry. Such persons are subject to the pawnbroker and secondhand dealer regulations set forth in chapter 6, article A of this title. (Ord. 23-19, 5-6-2019) H. Persons that prepare, market or sell food from a mobile vending unit or mobile pushcart. 4-513-4: APPLICATION FOR LICENSE: A. An application for a transient merchant license must be filed at the City Clerk's Office on a form provided by the City Clerk. B. The chief of police will investigate each business owner applying for a transient merchant license and a report of such investigation will be attached to the application for consideration by the city clerk. C. If, upon receipt and review of an application, it is determined that the applicant has a pending criminal charge which upon conviction would result in denial of a license, the city clerk reserves the right to place the application on hold for up to fourteen (14) days pending resolution of the criminal charge. a. It is the applicant's responsibility to provide any updated information on the outstanding charge(s). b. At the conclusion of fourteen (14) days the City Clerk shall resume processing of the application. D. The city clerk will, in consultation with the chief of police and upon receipt of an application, with an appropriate bond attached, approve or reject the application considering: a. Whether the statements and representations contained in the application are true, b. Whether the applicant is the holder of an Iowa retailer's sales tax permit, when required/if applicable, and c. If a foreign corporation, whether the entity has the authority to do business in the state of Iowa. E. A license is valid only for the period of time and at the location and place described in the application. In the event a qualified applicant intends to conduct business or engage in sales activities from multiple locations, a separate application shall be submitted, and a distinct license shall be obtained and approved for each individual location. An applicant for a license must file with the City Clerk a surety bond in the amount of five thousand dollars ($5,000.00) conditioned on the following: A. That the applicant will fully comply with all ordinances of the City and laws regulating transient merchant sales; B. The payment by the applicant of all taxes that may be payable by or due from the applicant to the State of Iowa or the City of Dubuque; C. The payment of any fines that may be assessed by any court against the applicant for violation of the provisions of this chapter; D. The payment and satisfaction of any and all causes of action against the applicant commenced within one year from the date of sale and arising from such sale; provided, however, that the aggregate liability of the surety for all such taxes, fines, and causes of action must in no event exceed the principal sum of such bond; and E. Guaranteeing to any resident of the city that all monies paid will be accounted for and applied according to the representation of the licensee. Said bond will continue in force as to such surety for not less than one year from the date of the license. Action on such bond may be brought by any resident of the city. (Ord. 16-13, 3-4-2013) 4-513-6: FEES: A transient merchant must pay a license fee established by the city manager. (Ord. 16- 13, 3-4-2013) 4-513-7: DISPLAY OF LICENSE: A transient merchant must, at all times while doing business in this city, prominently display the license for the period of time and at the location and place described in the application so that it is clearly visible to anyone to whom the person is selling or offering for sale goods, merchandise, products, or services. The licensee must also, at the time of selling or offering for sale goods, merchandise, products, or services, provide each prospective customer with an opportunity to view the license. 4-5B-8: MISREPRESENTATION: It is unlawful for any transient merchant making sales or engaging in or conducting a business under a transient merchant's license to make any false or misleading statement or representation regarding any article sold or offered for sale by such transient merchant as to condition, quality, original cost, or cost to such transient merchant of any article sold or offered for sale, or to sell or offer for sale goods, wares, products, or merchandise of a value in excess of the value thereof as shown by said application, or to sell or offer for sale at retail any goods, wares, products, or merchandise or to engage in or conduct an intermittent or temporary business on any day or at any place other than those shown by such license. A transient merchant who violates any provision of this chapter is ineligible for a license for a period of two (2) years from the date of such violation. (Ord. 16-13, 3- 4-2013 ) 4-513-9: DENIAL, SUSPENSION, OR REVOCATION OF LICENSE: A. The city clerk may, upon good cause, deny issuance or renewal of a license or suspend or revoke any license issued under this article for any of the following: 1. Violation of any federal, state, or local law, including, but not limited to, a violation of this chapter or any other chapter of this code; 2. Misrepresentation of any material fact in the application for a license; 3. Failure to cooperate with law enforcement; 4. The licensee, owner, manager, partner, corporate officer, or director has been convicted of a crime involving robbery, burglary, theft, forgery, fraud, or deceptive practices, the possession, manufacture, or delivery of a controlled substance, possession with intent to manufacture or deliver a controlled substance, possession of drug paraphernalia, or nonpayment of excise taxes for a controlled substance, nonpayment of other taxes, or demonstrated insolvency; 5. Misrepresentation of the source, condition, quality, weight, or measure of the product sold by such transient merchant; 6. If any judgment recovered against such transient merchant with reference to the operation of the business within the city remains unpaid for a period of six (6) months, provided such judgment be not stayed under a supersedeas bond upon appeal from such judgment; 7. The owner has been convicted in the prior seven (7) year period of a felony or of any crime involving injury to another person or damage to the property of another person; or 8. The owner is registered on the national sex offender registry. B. A plea of guilty, no contest, or a plea agreement resulting in a conviction to a lesser charge may be considered the equivalent of a conviction for purposes of evaluating eligibility for a permit under this section. C. The city clerk must give written notice of the revocation, suspension, or denial of renewal of any license issued under the provisions of this chapter to the license holder and the surety or sureties furnishing the bond provided for herein. 4-513-10: APPEAL: Within ten (10) days after notice of denial, suspension, or revocation of a license, a transient merchant applicant may file with the city clerk a written notice of appeal to the city manager from such denial, suspension, or revocation. The city manager must provide the applicant with notice and an opportunity to be heard on the issue of whether the license was properly denied, suspended, or revoked. (Ord. 16-13, 3-4-2013) 4-513-11: PERSONAL NATURE; TRANSFERABILITY: The transient merchant's license granted under this chapter is personal to the owner only and may not be sold, assigned, or otherwise transferred. (Ord. 16-13, 3-4-2013) 4-5B-12: REPORT TO CITY CLERK UPON LOSS REQUIRED: In the event any license issued under this chapter is lost or mislaid, the licensee must report such fact to the city clerk immediately. A duplicate license will be issued upon payment of the fee as established by the city manager. (Ord. 16-13, 3-4-2013) 4-5B-13: MUSIC: No loudspeaker or other sound system which may disturb the peace is permitted while soliciting. Music from a vendor unit is permitted to draw attention to the sales operation but shall not be of a magnitude to create a disturbance in the area where the transient merchant locates. Section 3. Effective Date. This ordinance shall take effect upon publication. Passed, approved, and adopted this 19th day of May, 2025. Attest: Adrienne Breitfelder, City Clerk