# Petition — Schaumburg v. Citizens for a Better Environment

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_0071%3A01

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1980
- **Citation:** 444 U.S. 620

## Text

Suprome Coart, 0. $. |
FILED

FEB 28 1979

IN THE

Supreme Court of the Cnited States

OCTOBER TERM, 1978

No. 78-1335

CITIZENS FOR A BETTER ENVIRONMENT, AN ILLINOIS
NON-FOR-PROFIT CORPORATION, ET AL.,
Respondents,

vs.

VILLAGE OF SCHAUMBURG,
Petitioners.

PETITION FOR WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT.

JACK M. SIEGEL,
39 South LaSalle Street, |
Chicago, Illinois 60603,
312-263-2968,
Attorney for Petitioners, Village
of Schaumburg.

Gunthorp-Warren Printing Company, Chicago @ Financial 6-6565

4

ae

PAGE
RE So lata realy heals bi Wa wwe wae ve be -de.s 1
a ee a NaF bh Ud oie C8 b's vb dese 2
Questions Presented for Review ...................- 2
I MD ewe See eh ep et eae tenes 3
Reasons Relied on for Allowance of the Writ........... 6

I. The Plaintiffs Were Not Entitled to a Summary
ee SSC eee 6a RE ae ere ae 8

II. Section 20(g) of Chapter 22 of the Schaumburg
Village Code Is Not Unconstitutional on Its Face
ie MI CAREW as a iid gg oes SAS ie.9 oO ames 4 15

Ill. A Municipality Has the Right to Prohibit Purported
Charitable Solicitations When the Soliciting Organi-
zation Fails to Demonstrate That at Least 75 Per
Cent of Its Receipts Are Utilized for Charitable

I aU Ns are ia in Spa 4 wipe y S66 bob e's oi 26
RENT SEGUE UR > ye te a ana Oe IP 30
Appendix A:

Seventh Circuit Opinion of Decmber 1, 1978....... Al
Appendix B:

U. S. District Court Opinion of February 17, 1978.. A13
Appendix C:

ar a Al7

li

TABLE OF AUTHORITIES.

Cases.
Adickes v. Kress & Co., 398 U. S. 144, 26 L. Ed. 2d 142
CUPRA ae 9:2 PRS pisces nla rpc d ase hehe EES 10
Associated Press v. United States of America, 326 U. S. 1,
S9 L.. Bd. 2013; GS Bat. TER CIS): oe. ek 9

Breard v. Alexandria, 341 U. S. 622, 95 L. Ed. 1233... .6, 19
Cantwell v. Connecticut, 310 U. S. 296, 60 S. Ct. 900, 84

L. Ed. 155 (1939) (distinguished) ............... 24
Grayned v. City of Rockford, 408 U. S. 104, 33 L. Ed. 2d

Dae CME CER Saat A AN alld on ate haben GES 21, 28
Green River v. Bunger, 50 Wyo. 52, 58, P. 2d 456...... 20
Hall v. Commonwealth, 188 Va. 72, 335 U. S.875...... 20
Hynes v. Mayor of Oradell, 425 U. S. 610, 96 S. Ct. 1756,

482, L.-Eds 2d 243 (1976)... 20 Sk. 5, 6, 15, 16. 17, 25

Lloyd Corp. v. Tanner, 407 U. S. 551, 33 L. Ed. 2d 131.. 20

Martin v. Struthers, 319 U. S. 141, 63 S. Ct. 862, 87 L. Ed.
1313: (1943) Cdintinguithed): .
ee

SS ee teen a eS? ee ee

All

where the salaries paid are so large in relation to the services
provided that the organization is actually a for-profit venture.
The 75 percent requirement might be valid where solicitors rep-
resent themselves as mere conduits for contributions. But the
requirement as it exists in the Village code also applies where it
is made clear that the contributions will be used for reasonable
salaries of those who will gather and disseminate information
relevant to the organization’s purpose. Thus the standard is not a

_Sufficiently narrow solution to the problems of potential fraud or

to the need to identify those organizations entitled only to the
protections afforded commercial speech. The freedom of expres-
sion of organizations which do not present these problems is also
infringed, either by absolute prohibition or the additional burden
of the for-profit permit requirements.

In Schneider the Supreme Court stated that although abridg-
ment of First Amendment freedoms may be an efficient and
convenient means to prevent fraud and trespass, these considera-
tions cannot justify such abridgment. See also Justice Brennan’s
concurrence in Hynes, quoting Thomas v. Collins, 323 U.S. 516,
530, 65 S. Ct. 315, 323, 89 L. Ed. 440 (1945):

“[I]n the area of First Amendment protections, ‘[t]he
rational connection between the remedy provided and the
evil to be curbed, which in other contexts might support
legislation against attack on due process grounds, will not
suffice. .. . Accordingly, whatever occasion would restrain
orderly discussion and persuasion, at appropriate time and
place, must have clear support in public danger, actual

or impending.’ ”
425 U.S. at 628, 96 S. Ct. at 1764. Section 22-20(g) does not
meet this standard.

Our conclusion is not inconsistent with the Fifth Circuit's
decision in Nat'l Foundation v. City of Ft. Worth, 415 F. 2d 41
(Sth Cir. 1969), cert. denied, 396 U.S. 1040 (1970). That
decision upheld an ordinance which limited the cost of solicita-
tion of charitable contributions to 20 percent of total receipts.
However, the ordinance also allowed an organization which did

Al2

not meet the requirement to show that its percentage was not ©

unreasonable. The court recognized that within the broad class
of charitable organizations a rigid percentage requirement would
be difficult to justify, stating:

“A fixed percentage limitation on the costs of solicitation
might be undesirable and inapplicable if applied to all types
of charitable organizations. What may be proper in one
situation may not be so in other situations. The ordinance
before us does not imply a fixed standard but permits a
determination of reasonableness of the ratio between the
cost of solicitation and the amount collected.”

Section 22-20(g) provides no similar flexibility.
Accordingly, the decision of the district court is affirmed.
A true Copy:
Teste:

Clerk of the United States Court of
Appeals for the Seventh Circuit

Se ee ee ee Se

Al3

APPENDIX B—OPINION OF UNITED STATES
DISTRICT COURT.

IN THE UNITED STATES DISTRICT COURT
* * (Caption—76 C 470) * *

FINAL JUDGMENT.

The Plaintiffs in this action are the Citizens for a Better
Environment (CBE), an Illinois not-for-profit corporation, and
a certain named employee of the organization. CBE’s major
source of financial support consists of small contributions from
individual citizens. CBE wishes to conduct a door-to-door fund-
raising canvass in the defendant village, Schaumburg, Illinois. In
Count I, the Plaintiffs contend that the Village of Schaumburg’s
refusal to allow a CBE canvass deprives them of their rights
guaranteed by the first and fourteenth amendments to the United
States Constitution. Counts II and III of the Complaint charge
that Village of Schaumburg’s solicitation ordinance violates the
first and fourteenth amendments. Count II challenges the Ordi-
nance as enacted by the Village of Schaumburg, and Count III
challenges its subsequent codification.

CBE seeks: (1) judgment declaring the ordinance void and
an injunction prohibiting its enforcement; and (2) judgment
declaring the Village Board’s action void and an injunction
prohibiting further interference with the Plaintiffs’ right to can-
vass Schaumburg. CBE now moves for summary judgment. This
motion is now ready for decision on the pleadings, exhibits, and.
memoranda submitted by the parties.

The Schaumburg ordinance regulates charitable solicitation.
All prospective solicitors must first procure a charitable solicita-
tion permit from the Village. The applicant must submit infor-
mation, including the name of the organization and the name

Al4

under which it intends to solicit contributions, the name and
address of the person in charge of solicitation in the Village, the
names and addresses of all persons who will solicit contributions
in the Village, the dates and times of day such solicitations are
to be made, and the geographic area within the Village wherein
such solicitation shall be conducted at a particular time and day,
a written statement of recent date by the Attorney General of
Illinois that the organization has complied with the provisions of
“An Act to Regulate Solicitation and Collection of Funds for
Charitable Purposes,” satisfactory proof that the organization is
a tax-exempt organization under the Internal Revenue Code of
the United States, § 501(c)(3), and satisfactory proof that at
least seventy-five percent of the proceeds of such solicitations will
be used directly for the charitable purpose of the organization.

Chapter 22, § 20(g), of the Schaumburg Village Code states
the following:

(g) Satisfactory proof that at least seventy-five percent of

the proceeds of such solicitations will be used directly for

the charitable purpose of the organization. For such pur-

poses, the following items shall not be deemed to be used

for the charitable purposes of the organization, to wit:
(1) Salaries or commissions paid to solicitors;

(2) Administrative expenses of the organization,
including, but not limited to, salaries, attorneys’ fees,
rents, telephone, advertising expenses, contributions to
other organizations and persons, except as a charitable
contribution and related expenses incurred as adminis-
trative or overhead items.

For the purpose of satisfying the requirements of subpara-
graph (g), the organization shall submit a certified audit of
the last full year of operations, indicating the distribution
of funds collected by the organization, or such other com-
parable evidence as may demonstrate the fact that at least
seventy-five per cent of the funds collected are utilized
directly and solely for the charitable purpose of the organi-
zation. (Ord. No. 1052, § 3.)

CBE’s main concern is with this particular requirement.

ee ee <n sane

os

ae at a

AlS5

Through the years, the United States Supreme Court has
enunciated definitive guidelines for application when the govern-
ment’s right to regulate clashes with first-amciudment freedoms.
Plainly, the government may regulate solicitation in order to
protect the community from fraud. A city may, for example,
require the solicitor to appear and establish his identity and
authority to act in behalf of the cause he represents. Cantwell v.
Connecticut, 310 U. S. 296, 306 (1940). Any action impinging
upon the freedom of expression and discussion, however, must
be minimal, and intimately related to an articulated, substantial
governmental interest. As noted in NAACP v. Button, 371 U. S.
415, 438 (1963), “[p]recision of regulation must be the touch-
stone in an area so closely touching our most precious free-
doms.” In a long line of cases the Court has consistently invali-
dated statutes and ordinances that permit a public official to
exercise broad discretion in granting or denying the right to
engage in constitutionally protected activities; e.g., NAACP v.
Button, supra; Staub v. City of Baxley, 355 U.S. 313 (1958):
Martin v. City of Struthers, 319 U.S. 141 (1943); Cantwell v.
Connecticut, 310 U.S. 296 (1940); Schneider v. State, 308
U.S. 147 (1939),

In this Court’s decision of February 25, 1977, in this case
entered regarding the Village of Palatine, this Court stated:

. . . Also constitutionally impermissible, is the provision of
the ordinance requiring the applicant to supply “such addi-
tional information as the Chief of Police” of the Village of
Palatine requests.

This provision authorizes the Chief of Police in his discre-
tion to solicit information about an organization’s views and
practices, and to deny a permit on the basis of his evalua-
tion of those views and practices.

In fact, this appears to be what happened. Exhibit 4 of the
Hoellwarth affidavit is a letter from the Village Board deny-
ing plaintiffs the right to solicit because in the Board’s view,
the majority of plaintiffs contribution do not make their
way to plaintiffs’ chartered function. This is a form of
censorship prohibited by the Supreme Court.

Al6

The Schaumburg requirement that 75% of the proceeds of a
solicitation will. be used directly for the charitable purpose of the
organization before a permit will be issued is also constitutionally
impermissible.

It does not make any difference that in the case a similar
requirement was codified by the Village Board of Schaumburg
instead of imposed by the Chief of Police.

The Village of Schaumburg’s soliciting ordinance mandates
the issuance of a permit to any person or group that can meet
its requirements. CBE was apparently denied the right to solicit
in the Village of Schaumburg only because it did not comply
with this requirement in § 20(g) since CBE is able and willing
to comply with the other requirements and does not challenge
them at this time.

The Plaintiffs’ Motion for Summary Judgment on Counts
II and III is granted insofar as Section 20(g) of Chapter 22 of
the Village of Schaumburg Code and § 3(g) of Village of
Schaumburg ordinance entitled “An Ordinance Regulating
Soliciting by Charitable Organizations” and numbered 1052
are declared unconstitutional and void on their face, and their
enforcement against CBE is hereby enjoined.

The Plaintiff's Motion for Summary Judgment on Count I is
granted. The action of the Village of Schaumburg denying CBE
pexmission to canvass and solicit funds in the Village is declared
in violation of the constitutional rights of CBE. The Village of
Schaumburg is enjoined from further prohibition of the CBE.
canvass and solicitation of funds and is ordered to issue a permit
to canvass and solicit funds to CBE forthwith.

Enter:
/s/ Prentice H. Marshall
Judge

Dated: February 17, 1978.

SAM 6 eT OE

oe nie ene

en eae

Al7

APPENDIX C—-AMENDMENTS TO UNITED STATES
CONSTITUTION.

AMENDMENT XIV.
§ 1. Citizenship rights not to be abridged by states

Section 1. All persons born or naturalized in the United
States, and subject to the jurisdiction thereof, are citizens
of the United States and of the State wherein they reside.
No State shall make or enforce any law which shall abridge
the privileges or immunities of citizens of the United States;
nor shall any State deprive any person of life, liberty, or
property, without due process of law; nor deny to any

eng within its jurisdiction the equal protection of the
aws.

AMENDMENT [I.]

Freedom of religion, speech and press; peaceful assemblage;
petition of grievances

Congress shall make no law respecting an establishment of
religion, or prohibiting the free exercise thereof; or abridging
the freedom of speech, or of the press; or the right of the people
peaceably to assemble, and to petition the Government for a
redress of grievances.

SCHAUMBURG VILLAGE Copk, CHAPTER 22, AR‘ICLE III.
Article III. Charitable Organizations.

For state law as to solicitation of funds for charitable purposes,
see Ill. Rev. Stat., ch. 23, § 5101 et seq.

Sec. 22-19. Definitions.

For the purpose of this article, the following words and
phrases shall have the following meanings unless a different
meaning is required by the context:

Charitable organization. Any benevolent, philanthropic,
patriotic, not-for-profit, or eleemosynary group, association or

Al8

corporation, or such organization purporting to be such, which
solicits and collects funds for charitable purposes.

Charitable purpose. Any charitable, benevolent, philan-
thropic, patriotic, or eleemosynary purpose.

Contribution. The promise or grant of any money or prop-
erty of any kind or value, including payments for literature in
excess of the fair market value of said literature. (Ord. No.
1052, § 2.)

Sec. 22-20. Permits—Required; contents of application.

Every charitable organization, which solicits or intends to
solicit contributions from persons in the village by door-to-door
solicitation or the use of public streets and public ways, shall
prior to such solicitation apply for a permit. Said application
shall be made to the village clerk and shall include the following
information:

(a) The name of the organization arid the name under
which it intends to solicit contributions.

(b) The name and address of the person in charge of
solicitation in the village.

(c) The names and addresses of all the persons whe
will solicit contributions in the village.

(d) The dates and times of day such solicitations are
to be made and the geographic area within the village
wherein such solicitation siiall be conducted at a particu-
lar time and day.

(e) A written statement of recent date by the Attorney
General of Illinois that the organization has complied with
the provisions of “An Act to Regulate Solicitation and
Collection of Funds for Charitable Purposes,” Illinois Re-
vised Statutes, chapter 23, section 5101, and such statute
as it may hereafter be amended.

Al9

(f) Satisfactory proof that the organization is a tax
exempt organization under the Internal Revenue Code of
the United States, section 501 (c) (3).

(g) Satisfactory proof tha‘ at least seventy-five per cent
of the proceeds of such solicitations will be used directly
for the charitable purpose of the organization. For such
purposes, the following items shall not be deemed to be
used for the charitable purposes of the organization, to wit:

(1) Salaries or commissions paid to sovicitors;

(2) Administrative expenses of the organization,
including, but not limited to, salaries, attorneys’ fees,
rents, telephone advertising expenses, contributions
to other organizations 2d persons, except as a chari-
table contribution and related expenses incurred as
administrative or overhead items.

For the purpose of satisfying the requirements of subpara-
graph (g), the organization shall submit a certified audit of
the last full year of operations, indicating the distribution of
funds collected by the organization, or such other comparable
evidence as may demonstrate the fact that at least seventy-five
per cent of the funds collected are utilized directly and solely for
the charitable purpose of the organization. (Ord. No. 1052,
§ 3.)

Sec. 22-21. Same—Submission and verification of applica-
tions; issuance.

All applications shall be submitted to the village clerk and
shall be verified under oath by a responsible officer of the
soliciting organization. All completed applications shall be sub-
mitted by the village clerk to the village board. If the village
board shall find and determine that all requirements of this
article have been met, a permit shall be issued specifying the
dates and times at which solicitation may take place. (Ord. No.
1052, § 7.)

SL Lee AT RRR TO meer eR TT

A20

Sec. 22-22. Same—Fee.

Each application for a charitable solicitation permit shall be
accompanied by a fee in the amount of ten dollars. (Ord. No.
1052, § 6.)

Sec. 22-23. Indicted or convicted felons as solicitors.

It shall be unlawful for any.charitable organization to utilize
as a solicitor any person who has been convicted of a felony or is
presently under indictment for a felony. (Ord. No. 1052, § 5.)

Sec. 22-24. Hours; entering premises posted for “no soliciting.”

No permit issued under the provisions of this article shall
permit solicitation before the hour of 9:00 A.M. and after the
hour of 6:00 P.M., or on Sunday. Nothing herein provided shall
‘permit a solicitor to go upon any premises which has posted a
sign indicating “no solicitors or peddlers invited.” (Ord. No.
1052, § 4.)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_0071%3A01. Public record. Not legal advice.
