The purpose of this chapter is to protect residents of the City against fraud, unfair competition, and intrusion into the privacy of their homes by licensing and regulating peddlers, solicitors, and transient merchants.

For use in this chapter the following terms are defined:

1.   “Peddler” means any person carrying goods or merchandise who sells or offers for sale for immediate delivery such goods or merchandise from house to house or upon the public street.

2.   “Solicitor” means any person who solicits or attempts to solicit from house to house or upon the public street any contribution or donation or any order for goods, services, subscriptions or merchandise to be delivered at a future date.

3.   “Transient merchant” means any person who engages in a temporary or itinerant merchandising business and in the course of such business hires, leases, or occupies any building or structure whatsoever, or temporary shelter such as a tent or similar covering, or who operates out of a vehicle which is parked anywhere within the City limits. Temporary association with a local merchant, dealer, trader, or auctioneer, or conduct of such transient business in connection with, as a part of, or in the name of any local merchant, dealer, trader, or auctioneer does not exempt any person from being considered a transient merchant.

Any person engaging in peddling, soliciting, or in the business of a transient merchant in the City without first obtaining a license as herein provided is in violation of this chapter.

An application in writing shall be filed with the Police Chief for a license under this chapter. Such application shall set forth the applicant’s name, permanent and local address and business address, if any. The application shall also set forth the applicant’s employer, if any, and the employer’s address, the nature of the applicant’s business, the last three places of such business and the length of time sought to be covered by the license. An application fee of $100.00 shall be paid at the time of filing such application. All required documentation shall be included with the application at the time of filing. An application will not be reviewed if incomplete. Once the application is approved, it is valid for the calendar year, ending December 31st. In addition to the application fee for each person actually soliciting (principal or agent), a fee in the amount of $100.00 for the principal license shall be charged for each calendar month the principal or any agent conducts business within the City as a peddler, solicitor, or transient merchant. The fee will not be pro-rated, and each principal may purchase up to six (6) months of licenses in advance. This fee may be waived by majority vote of the Council on a case-by-case basis.

1.   Payment of License Fees and Late Penalties.

   A.   If a license fee is not paid current and the applicant is found operating in the City of Toledo, it will result in a late fee as scheduled being assessed to the license fee and may result in suspension of licenses being issued for the term of one (1) year as follows:

      (1)   First offense - $50.00 late fee.

      (2)   Second offense - $100 late fee.

      (3)   Third offense - $200.00 late fee and license suspension for one year.

Before a license under this chapter is issued to a peddler, solicitor, or transient merchant, an applicant shall provide to the Police Chief or designee evidence that the applicant has obtained a policy of insurance providing insurance coverage for all activities conducted by the applicant under the terms of the license. The coverage limits shall be equal to at least twice the value of the property or services being sold by the applicant. Upon request of the City the City shall be listed as an additional insured on any such policy.

If the Police Chief finds the application is completed with all required documentation and in conformance with the requirement of this chapter, the facts stated therein are found to be correct, the license fee paid, and proof of insurance given, a license shall be issued immediately. The license shall be valid for the number of months license fees are paid. (up to 6 months)   

Each solicitor or peddler 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. Each transient merchant shall display publicly such merchant’s license in the merchant’s place of business. Any peddler, solicitor, or transient merchant selling perishable food items for human consumption shall comply with all regulations regarding inspection and approval of such items by the State of Iowa and local authority.    

Licenses issued under the provisions of this chapter are not transferable in any situation and are to be applicable only to the person filing the application.   

All peddler’s, solicitor’s and transient merchant’s licenses shall provide that said licenses are in force and effect only between the hours of 8:00 a.m. and 8:00 p.m. Time may be altered with preapproval and documented on license by the Toledo Chief of Police.   

After notice and hearing, the Police Chief may revoke any license issued under this chapter for the following reasons:

1.   Fraudulent Statements. The licensee has made fraudulent statements in the application for the license or in the conduct of the business.

2.   Violation of Law. The licensee has violated this chapter or has otherwise conducted the business in an unlawful manner.

3.   Endangered Public Welfare, Health, or Safety. The licensee has conducted the business in such a manner as to endanger the public welfare, safety, order, or morals.

The Police Chief shall send a notice to the licensee at the licensee’s local address, not less than 10 days before the date set for a hearing, on the possible revocation of a license. Such notice shall contain particulars of the complaints against the licensee, the ordinance provisions or State statutes allegedly violated, and the date, time, and place for the hearing on the matter.

The Police Chief shall conduct a hearing at which both the licensee and any complainants shall be present to determine the truth of the facts alleged in the complaint and notice. Should the licensee, or authorized representative, fail to appear without good cause, the Police Chief may proceed to a determination of the complaint.

The Police Chief shall make and record findings of fact and conclusions of law, and shall revoke a license only when, upon review of the entire record, the Police Chief finds clear and convincing evidences of substantial violation of this chapter or State law.

If the Police Chief revokes or refuses to issue a license, the Police Chief shall make a part of the record the reasons therefor. The licensee, or the applicants, shall have a right to a hearing before the Council at its next regular meeting. The Council may reverse, modify, or affirm the decision of the Police Chief by a majority vote of the Council members present, and the Police Chief shall carry out the decision of the Council.

Revocation of any license shall bar the licensee from being eligible for any license under this chapter for a period of one year from the date of the revocation.

The following are excluded from the application of this chapter.

1.   Newspapers. Persons delivering, collecting for, or selling subscriptions to newspapers.

2.   Club Members. Members of local civic and service clubs, Boy Scout, Girl Scout, 4-H Clubs, Future Farmers of America, and similar organizations.

3.   Local Residents and Farmers. Local residents and farmers who offer for sale their own products.

4.   Students. Students represent the South Tama School District conducting projects sponsored by organizations recognized by the school.

5.   Route Sales. Route delivery persons who only incidentally solicit additional business or make special sales.

6.   Resale or Institutional Use. Persons customarily calling on businesses or institutions for the purposes of selling products for resale or institutional use.

7.   Minor Businesses. An on-site transactional business traditionally operated exclusively by a person under the age of 18, operated on an occasional basis for no more than 89 calendar days in a calendar year.

Authorized representatives of charitable or nonprofit organizations operating under the provisions of Chapter 504 of the Code of Iowa desiring to solicit money or to distribute literature are exempt from the operation of Sections 122.04 and 122.05. All such organizations are required to submit in writing to the Police Chief the name and purpose of the cause for which such activities are sought, names and addresses of the officers and directors of the organization, the period during which such activities are to be carried on, and whether any commissions, fees, or wages are to be charged by the solicitor (and the amount thereof). If the Police Chief finds that the organization is a bona fide charity or nonprofit organization, the Police Chief shall issue, free of charge, a license containing the above information to the applicant. In the event the Police Chief denies the exemption, the authorized representatives of the organization may appeal the decision to the Council, as provided in Section 122.14 of this chapter.

Any peddler, solicitor or transient merchant selling perishable food items for human consumption shall comply with all regulations regarding inspection and approval of such items by the State of Iowa or other local authority.