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  




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          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  





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          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.





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          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)
           





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          Support  :  Council of California Goodwill Industries,  
          California Association of Nonprofits, Campus California TG,  
          City of Sacramento, Planet Aid.

           Opposition  :  Unknown.