BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Patricia Wiggins, Chair BILL NO: AB 918 HEARING: 7/1/09 AUTHOR: Adams FISCAL: No VERSION: 6/11/09 CONSULTANT: Detwiler COLLECTION BOXES Background and Existing Law Public nuisances include offensive behavior and land uses that injure public health. Cities and counties can adopt local ordinances that identify and then abate public nuisances. The California Constitution allows cities and counties to adopt local police, sanitary, and other ordinances that don't conflict with the state's general laws. Using this police power to regulate private behavior to achieve public goals, cities and counties can adopt zoning ordinances. Some local zoning ordinances require property owners to obtain use permits for certain land uses. State laws and local ordinances define crimes --- felonies, misdemeanors, infractions --- that are subject to graduated penalties. For 50 years, state law has regulated how organizations solicit and sell "salvageable personal property" by telephone, by advertising, or by placing boxes on public property or abutting public sidewalks, streets, or in businesses open to the public. These organizations must keep separate accounts and books. Violating this state law is a misdemeanor. State law recognizes that it doesn't limit cities and counties from imposing additional requirements on soliciting and selling salvageable personal property (SB 928, McBride, 1959). Charitable organizations collect salvageable property such as clothes, books, and furniture for resale and distribution to the poor. Some of these organizations operate from storefronts, while others collect goods from unattended collection boxes. Some for-profit firms also have drop boxes which can be indistinguishable from those owned by charitable organizations. Donors may not know if their property is going to a charity or to a for-profit AB 918 -- 6/11/09 -- Page 2 company. Some charitable organizations want legislators to require the owners of unattended collection boxes to inform donors about where their donations go. Proposed Law Assembly Bill 918 requires the front of every unattended collection box to display the name, address, telephone number, and Internet Web address of the collection box's owner and operator, plus a statement in two-inch type that the collection box is owned by either a for-profit or a nonprofit organization. AB 918 defines its terms and classifies a commercial fundraiser as a for-profit organization. If a nonprofit organization owns the collection box, the box's front must also display a statement describing the charitable cause that will benefit from the donations. The bill requires a collection box's owner to obtain written permission from the property owner or lessee or their authorized agent, certifying permission to place the box on the property. If the property owner, lessee, or authorized agent doesn't provide written consent, the collection box's owner can use verbal consent if documented with contact information. When requested by the local jurisdiction or an interested person, the box's owner must make this written or verbal consent available. AB 918 states that it does not supersede or limit the State Department of Justice's authority over charitable fundraising or affect the authority of cities and counties to regulate, monitor, or prohibit collection boxes. Comments 1. Informed donor . When you give away your old clothes, who benefits? It's easy to know who benefits from a donation when a charitable organization solicits in person, by telephone, or in the mail. It's not as easy when you drop those old clothes into an unattended collection box. Maybe a worthy charity gives the clothes to the poor. Maybe the charity sells your donated clothes and uses the money to deliver services to poor or disabled people. But the donated materials might be going to a commercial AB 918 -- 6/11/09 -- Page 3 fundraiser or even a company that resells the goods for private profit. Charitable organizations depend on the goodwill of informed donors. By requiring drop boxes to display basic information about their owners and operators and tell which charitable cause benefits, AB 918 informs donors about who gets their property. 2. Market shares . Charities, charitable fundraisers, and for-profit companies compete for donations of clothes, books, furniture, and other salvageable property. Even within the charitable sector, organizations compete with each other for donations. While AB 918 gives donors more information about who benefits from their donations, the bill's new requirements erect statutory barriers. An established charity that resents the appearance of unattended collection boxes in supermarket parking lots could use the bill to demand to see the property owners' written consent. The Committee may wish to consider whether the bill advances the state's policy interest in informed philanthropy or will be used to harass competitors. 3. No enforcement . Although AB 918 enacts new requirements for unattended collection boxes, the bill doesn't provide a way to enforce its rules. There are at least three different approaches that legislators may wish to consider if they want to enforce AB 918's new rules: Citations for infractions. It's a misdemeanor to violate the state's 50-year old laws that regulate the charitable solicitation of salvageable personal property. The Committee may wish to consider making a violation of AB 918 a misdemeanor which can be processed as an infraction. Nuisance abatement. Cities and counties can order the abatement of land uses that constitute public nuisances. The Committee may wish to consider amending AB 918 to declare that an unattended collection box that fails to meet the bill's standards is a public nuisance which is subject to local abatement procedures. Mandatory local permits. Cities and counties can use their land use regulatory powers to require use permits for unattended collection boxes. The Committee may wish to consider mandating cities and counties to adopt ordinances that require permits for unattended collection boxes. AB 918 -- 6/11/09 -- Page 4 Without a clear means of enforcement, the bill may be another well-intentioned but ineffective statute. 4. Says who ? If the key goal of AB 918 is to inform donors about who benefits from their giving to unattended drop boxes, then it's superfluous for the bill to require the property owners' written or verbal consent for locating the collection boxes. The existing trespass laws and private nuisance statutes give property owners plenty of authority to get rid of unwelcome drop boxes. The Committee may wish to consider deleting the requirement that collection box owners obtain and make available this paperwork. 5. Same problem, different solution . AB 2610 (Davis, 2008) tackled the problems posed by unattended collection boxes with a combination of state standards, local enforcement, and defined penalties. The Senate Local Government Committee initially defeated the 2008 Davis bill on a 2-3 vote, reconsidered, and passed the bill on a 3-2 vote. Governor Schwarzenegger vetoed the bill, saying that it was not a priority. 6. Technical amendment needed . To avoid using different terms for the same concept, the Committee should adopt a technical amendment that changes the term "local jurisdiction" to "city, county, or city and county." 7. Legislative history . On June 17, the Senate Local Government Committee considered AB 918 when Assembly Member Villines presented the bill on behalf of Assembly Member Adams. Although the Committee heard witnesses representing the Council of California Goodwill Industries, Goodwill Southern California, Planet Aid, California Association of Nonprofits, and the City of Sacramento, it didn't act on the bill. There have been no amendments since that hearing. Assembly Actions Assembly Judiciary Committee:10-0 Assembly Floor: 75-0 Support and Opposition (6/25/09) AB 918 -- 6/11/09 -- Page 5 Support : Council of California Goodwill Industries, California Association of Nonprofits, Campus California TG, City of Sacramento, Planet Aid. Opposition : Unknown.