The City of Buda's Code of Ordinances currently regulates peddlers and solicitors operating within the City. City staff has identified the need to update Section 14.02.007 to clarify terminology, distinguish between different types of solicitation activities, update the permit application and review process, and make corresponding administrative changes to reflect the City's current organizational structure.

The proposed ordinance amends Section 14.02.007 and Attachment A to the ordinance provides the detailed revisions. The ordinance identifies the amendments as necessary to address changing conditions and states that the amendments are in the best interest of the City.

Discussion was held to consider different fee structures or simpler registration for non-profits; however, the current ordinance does not require a permit for those non-profits with a 501(c) designation. 

The proposed ordinance makes several substantive and administrative changes to the City's peddler and solicitor regulations, including:

1. Clarification of Definitions:  The ordinance establishes and clarifies definitions for Canvasser, Charitable Solicitor, Commercial Solicitor, , Person, Solicitation, and Solicitor. The proposed definitions distinguish canvassing activities from commercial and charitable solicitation.  Removes "Peddler" from the ordinance and definitions.
2. Commercial Solicitor Permit Requirement: The proposed language clarifies that a Commercial Solicitor must obtain a permit from the City Clerk before engaging in business within the City.
3. Permit Application Requirements: The proposed amendments update the information applicants must provide when applying for a permit, including identifying information, business information, proposed solicitation dates, solicitation methods, merchandise or services offered, information regarding individuals participating in the solicitation campaign, vehicle information, criminal history information, and authorization for a criminal background check.

The ordinance also requires applicable applicants to provide proof of sales tax registration or exemption and, where required, liability insurance meeting the City's stated requirements.

The purpose of this article is and shall be deemed an exercise of the police powers of the City for the public safety, comfort, convenience, and protection of the City and the citizens thereof, and all of the provisions of this article shall be constructed for the accomplishment of that purpose. This article is intended to protect against criminal activity, including fraud and burglary, minimize the unwelcome disturbance of citizens and the disruption of privacy, and to otherwise preserve the public health, safety and welfare by regulating, controlling and licensing door-to-door solicitors and peddlers.

The proposed amendments are intended to provide greater clarity and consistency in the City's regulation and administration of peddler and solicitor permits. The amendments establish clearer distinctions between commercial solicitors, charitable solicitors, canvassers, peddlers, and solicitors and provide a more clearly defined administrative process for application review and permit issuance.

The proposed amendments also establish specific application requirements and standards for the review and denial of permits, allowing City staff to administer the permitting process using defined criteria.

The ordinance provides for a 10-working-day administrative review period and establishes a 90-day permit period, providing applicants with a defined timeframe for both permit processing and permit validity.

Permit fee remains the same; $250 for a 90-day permit.

The proposed ordinance establishes that permit fees are intended to cover the City's cost of processing applications and is not anticipated to have a significant fiscal impact on the City. It also provides that:

• No fee will be charged for a Charitable Solicitor permit;
• The Commercial Solicitor permit fee will be waived when sufficient evidence establishes that the applicant is engaged in interstate commerce such that imposition of the fee would violate the Interstate Commerce Clause; and
• The applicant must still obtain a permit and comply with the remaining requirements of the ordinance.

Any administrative costs associated with application processing, background investigations, and permit administration are expected to be handled within existing departmental resources.

PROS: Complies with the State's pre-emption requirements regarding Texas Administrative Code §35.10 mandates alarm companies and other commercial solicitor.  The process involves careful consideration of definitions, the precise scope of state law exemptions, procedures for handling interstate commerce claims, and the establishment of a clear and legally defensible framework for any differentiation among solicitor types. 

CONS: The ordinance as written requires review and revision.

None.