------------------------------------------------------------------- F.A.C.T.Net, Inc. (Fight Against Coercive Tactics Network, Incorporated) a non-profit computer bulletin board and electronic library 601 16th St. #C-217 Golden, Colorado 80401 USA BBS 303 530-1942 FAX 303 530-2950 Office 303 473-0111 This document is part of an electronic lending library and preservational electronic archive. F.A.C.T.Net does not sell documents, it only lends them according to the terms of your library cardholder agreement with F.A.C.T.Net, Inc. ===================================================================== FINAL REPORT TO THE CLEARWATER CITY COMMISSION CONTAINING FINDINGS, RESOLUTIONS AND RECOMMENDED ORDINANCES TO REGULATE ORGANIZATIONS CLAIMING TAX-EXEMPT OR NON PROFIT STATUS TABLE OF CONTE~]TS Page I Introduction 3 II Summary of Evidence 10 III Commission Findings 55 IV Proposed Resolutions 59 V Proposed Ordinances and Amendments To Existing Ordinances 64 -2- INTRODUCTION This final report to the Clearwater City Commission submitted by the Consultant represents the end of the first phase of the project undertaken by the City to resolve legal and fac~] iss~ presented by the activities of the Church of Scientology operating as a tax-exempt organization within the City. The Commission previously adopted the "Preliminary Report" prepared by the Consultant as the first step in the project. The Commission thereafter convened public hearings to hear testimony and review evidence in connection with most of the issues presented in the "Preliminary Report". This final report of the Consultant represents the culmination of this first phase of the project. The Report is divided into five sections. The first section is the introduction, which briefly explains the nature and purposes of the task undertaken by the City. The second section comprises the summary of the evidence presented at the public hearings for the Commission to review and, if it so decides, to formally adopt or approve. The Consultant recommends that said summary of evidence be formally voted upon and approved in the form presented. The third section" of the report contains proposed findings of fact stated in conclusory form which the Consultant also recommends should be formally adopted. The fourth section contaiAs proposed resolutions which the Commission should adopt, and, most importantly, the last section contains proFosed -3- ordinances and amendments to existing ordinances which the Commission should enact. It is submitted that the evidence presented at the public hearings, as summarized in section II herein, supports the conclusion that the Church of Scientology has engaged in a public relations campaign to present itself to the citizens of Clearwater as a legitimate, law abiding, non profit religious organizat_ion while actually operating, pursuant to specific written policies, in disregard and in violation of civil and criminal laws. The actual conduct of the Church of Scientology adopted as written corporate policy, by the Church, includes the following: (1) burglary; (2) larceny; (3) infiltration; (4) smear compaiqns; (5) .extortion; (6) blackmail; (7) frame-ups; (8) deceptive sales and recruitment policies; (9) deceptive use of legal releases and bonds; (10) suppression of free speech and association; (11) deviation from acceptable standards of medical practice and educational requirements; (12) use of taxexempt funds for unlawful purposes; (13) overtly fraudulent policies designed to extract large sums of money from unwitting and uninformed individuals; (14) extortionate and/or improper use of highly personal information fraudulantly procured from individuals based on false promises of confidentiality; (15) the use of unlawful and covertly harassire means to prevent individuals who have been defrauded from obtaining legal redress; (16) and the use of overtly fraudu!ant policies such as the "minister's mock up" and "religious image check sheet" to present a "religious front" to the public while actually engaged in the business of unlicensed psychotherapy [0r the purpose of making m6ney. Since the Church of Scientology chose not to present any evidence or testimony to the City Commission to justify, explain or refute the evidence supporting the foregoing conclusions, the record is bereft of almost any evidence to support a finding by the City Commission that it should not make some effort to confront the problems and issues presented both in the "Preliminary Report" and in the public hearings. It is not within the purview of the City's municipal powers to regulate the doctrines, beliefs and religious activities of the Church of Scientology. However, there is a compelling municipal need for the City Commission to respond to the very real problems and dangers presented by the actual operating policies and conduct of the Church of Scientology, not the least of which is the avowed stated purpose of the Scientology ogranization to use unlawful means to assure political, financial and social control of the City.' Although the City Commission cannot directly address the aforestated goal of Scientology, it is empowered to enact legislation to prohibit and penalize overtly fraudulent practices of the Church. The use of appropriate legal remedies to end said fraudulent practices should directly impact upon the cash flow of the organization, which is itself the end product of the fraud, and which cash is used to perpetuate unlawful conduct. Many questions have arisen as to whether t_he City has undertaken too large or broad a task in dealing with the multiple problems created b.y the Church since the Church altegedly operates as a religious institution in the context of the social, economic, and political -5- fDrces ~nherent in the City. Unfortunately, the acti~xities and conduct of the Church and its antagonists from 1975 to date have been framed in the perspective of the Church vs. State confrontation. This has resulted for the most part because the Church has skillfully created that impression through its public relations compaign in the news media. However, the task for the City Commission .., and for the citizens of Clearwater is not to engage in such a controversy. For example, the City should not seek to regulate the practice of "E-meter auditing", one of the basic practices of the Church, despite the fact that according to most mental health professionals such "auditing" is actually utilized as an improper tool to subjugate or enslave individuals to the will of another. This is not within the purview of the legal responsibility of the City. Although Australia and other countries have enacted legislation to deal with the mental health problems created by E-meter auditing, the broad First Amendment protections inherent in the very fabric of our society, a.t this point in time, appear to preclude regulation of such auditing practices regardless of whether they are beneficial or result in serious injury or death, as has been documented in several cases. However, although E-meter auditing should not be regulated, fraudulent representations that are made to induce people te pay huge sums of money to undertake it, such as the false promise of confidentia!ity, can be ' legitimately addressed and remedied. Also the practice of taking a person's auditing or confessional information, -6- reducing it to writing, notwithstanding promises of confidentiality, having the person sign the "confession", while at the same time executing legal releases, to the Church and then using the confession and releases against the person to block or frustrate his legal remedies is a form of coercion or extortion which the City can prohibit through appropriate laws. The City Commission should well remember Scientology counsel at the hearings using the "confession" of David Ray to discredit him. If the City of Clearwater enacted the type of ordinances which are proposed herein as "consumer protection" and "solicitation of charitable funds" type ordinances and David Ray sought a refund of moneys from the Church becuase of fraudulent promises made to him, said ordinances could achieve multiple purposes. Said laws would provide a direct remedy for Ray or the City attorney to act on Ray's behalf in obtaining a refund, subject the Church to fines and damages for engaging in fraudulent practices, inform other young and vulnerable individuals then inside the Church that such remedies and penalties exist, and prohibit future use of fraudulent and unlawful means to obtain money and labor. If the fraudulent means are stopped, the cash flow will stop. The Church will then be required to operate legitimately, and individuals such as David Ray will have the benefit of making informed choices before providing money or labor. Another potential benefit of such laws is to require the Church to file with the City a statement as to the use of purportedly charitable moneys. The Church has spent .millions of dollars to carry outunlawful schemes involving smear campaigns, burgla~, larceny etc. and then -7- has spent millions of dollars defending its agents such as Mary Sue Hubbard, who have actually perpetuated such criminal acts. The City can legitimately prohibit the use of charitable funds for such purposes under the proposed ordinances, and also fine and subject the Church to damages for such use of allegedly charitable moneys. The foregoing should assist in stopping the criminal operations of the' Church, and thereby encourage victims of such schemes whether members of the Church, such as Tonja Burden, or citizens of Clearwater, such as Mayor Cazares, to seek legal redress against the Church. The intimidating practices of the Church such as the "Fair Game Policy", "Attack the Attacker" and the use of confidential auditing information which have been unlawfully utilized to perpetuate and conceal the fraudulent money making practices of the Church, should cease. Then defrauded members will not be afraid to step forward, seek legal redress, recover moneys paid, and expose all of the foregoing as constituting the illegitimate means by which the Church has become a powerful force within the City. Heretofore, Scientology has operated within the City in almost total secrecy. concerning its operations, income, and expenditure of alleged!y charitable funds. The very secrecy in which the Church has enveloped itself causes a twofold cycle. First, the Church came into the City in secrec'z because of its criminal and fraudulent practices which had been discovered elsewhere. See, for example, the Australian and English reports filed as Exhibits to the Consultants "Preliminary Report". The very need for said secrecy results from Sciento!ogy's history and tradition of involvement in unlawful and fraudulent schemes. That is one phase of the cycle. The second phase is that the secrecy of Church activities breeds and causes further illegal schemes and operations which by their very nature are carried out in secrecy. The City must have a legitimate means of unveiling that secrecy by investigating the financial affairs and non-religious practices of the Church. Otherwise, the First Amendment protection afforded to an organization such as the Scientology organization becomes a powerful weapon to engage in overtly commercialistic and illegal practices without answerability to society. It is submitted that the founders of this Country desired to achieve a moderate balance between legitimate religious practices and the social, political and economic requirements of government. That balance is not upset when legitimate governmental needs are pursued to protect social order in the prevention of unlawful practices by a purported religion. In light of the foregoing, the primary purpose of the proposed ordinances and amendments are (1) disclosure; (2) notice and warning to the public; (3) power to abate prohibited acts. See the "Preliminary Report" for a more thorough explanation of the various relevant provisions of the "consumer protection" and "charitable solicitation" ordinances. Although these latter ordinances have been further refined as set forth in this Report, their nature and purpose remains the same. -9- SUMMARY OF EVIDENCE -10- INTRODUCT I ON The Commissioners of the City of Clearwater convened public hearings on May 5-10, 1982 and received documentary and testimonial evidence with respect to the operation, activities and conduct of the Church of Scientology. Based upon the sworn testimony of witnesses, affidavits, state and federal court decisions and miscellaneous documents reviewed and considered, the Commission makes the following factual recitation: * Evidentiary Fact: A. The Church of Scientology is currently engaged in a nationwide conspiracy to impede and obstruct municipal, state and federal taxing authorities, by adopting a religious and charitable guise to avoid payment of taxes. 1. "They (the public) want ministers. We will show them what ministers look like." (1-42) 2. Use of ministerial garb to mislead public officials. (1-42) 3. Use of ministerial garb to convey appearance of religion. (1-43) 4. Scientology ' s internal policy states: "Churches are !coked upon as reform groups. Therefore, we must act like a reform group." (1-196) 5. "Church" policy instructs member to lie to inquirhng officials. (1-226,227) * References are to volume and page of the Hearings Transcript 6. Scientologists are not permitted to give auditing to terminally ill individuals. (2-226,227) 7. Scientology's religious image check list is designed to falsely portray a religious image to mislead public officials. (2-238,239) 8. Scientology ministers fail to record marriage certificates. (2-242) They grant "divorces" frequently without requisite legal formalities. (2-243) 9. Scientologists are placed on rice and beans diets for failure to gross $500,000.00 per week. (2-249) 10. Church of Scientology requires that all members sign releases and waivers wherein the member releases the Church of Scientology, Hubbard or any other individual from liability. (3-78,79,80) 11. Governing policy of the Church is to "make money, make more money, make other people produce so as to make money." (3-226) 12. Church charges for services rendered do not bear any relation to service rendered. (3-229) 13. Scientology has created numerous front groups to conduct non-religious activities in violation of state and federal ~ax laws. (4-91) 14. Church of Scientology's budget always hncluded funds for Guardian's Office activities but not for "religious" purposes. (4-127,128,137,138,139) 15. The Church of Scientology maintained "phony" corporations to send and receive classified documents and large amounts of cash. (4-179) 16. The Church of -qcientology assumed the appearance of a phony.corporation, the Operation Transport Corporation, when searching for a land base in the Carribean. (4-206) 17. The Church of Scientology provided an organized staff to promote a gubernatorial candidates's candidacy. (4-208) 18. The Church of Scientology uses overt and covert means to gather data. The Church utilizes criminal means to acquire information. (4-241) 19. Church of Scientology funnels large amounts of cash out of the country into bank accounts in L. Ron Hubbard's name. (4-287) 20. Church of Scientology engaged in anonymous letter writing campaign designed to smear its critics. (4-291) 21. The Church of scientology has nothing to do with religion. The Church did not adopt the religious guise until it was necessaL-t to seek First ~mendment protection. (4-405) -13- Evidentiary Fact: B. The Church of Scientology repeatedly violates a federal court order which requires that a written warning be attached to the E-Meter informing users that the process is not scientific. 1. A federal Court decision requires that the Church of Scientology comply with the following order: "Any and all items of written, printed or graphic matter which directly or directly refers to the E-Meter or to Dianetics and/or Scientology and/or auditing or processing shall not be further used or distributed unless and until the items shall bear the following prombent printed warning permanently affixed to said item on the outside front cover or on the title page in letter no smller tha~ eleven-point leaded type." WARNING "The device known as the Hubbard Electrometer or E-Meter used in Auditing, a process of Scientology and Dianetics, is not medically or scientifically useful for the diagnosis, treatment or prevention of any disease. It is not medically or scientifically capable of improving the health or bodily functions of anyone." 2. Scientologists are not informed of the court ordered warning. (1-175) 3. Scientology publications Dianetics and All .About Radiation, which were purchased during the Commission Hearings did not comply with the order. (4-415) 13. Early Warning System B-1. Hubbard ' s Guardian ' s Office project to establish an early wa~-ning system to protect Hubbard from law enforcement agencies in Dunedin, Florida. Included in this operation are placing agents in: local District Attorney ' s Office, State Attorney General ' s Office, local Internal Revenue Service and local U.S. Marshal ' s Office. (CDP) 14. Ops/CDC ' s. Scientology Guardian ' s Office criminal, covert operations planned against persons attempting to expose the Church. Included in these operations were: Mayor Cazares, Poynter, Patterson, Robert Snyder, Steve Advokat, Stewart, Orsini, Andy Barnes, St. Petersburg Times, State Attorney Russell, Florida District Attorney ' s Office, Clearwater Police Department, Telephone Business Office, and the U.S. Attorney's Office. (CDP) .~ 15. City Attorney Patrick Doherty. Operation to covertly investigate City Atto~e~v ~ ~ _~'~ ..... .,~y Patrick Doherty. 16. Investigation of Circuit Court Clerk, Harold Mullendore. Operation by Scientology "FSM", i.e. agent, to gain information concerning Circuit Court Clerk, Harold Mullendore. (CDP) ~17. Investigation of Bruce Smathers, Secretary of State. Scientology covert agent report concerning Bruce Smathers, Florida Secretary of State. (CDP) 18. Operation Bulldozer Leak. List of enemies of t. he Church. Included in list are Clearwater City Commission, Clearwater Mayor, Clearwater Police -20- 31. Operations AGainst State Attorney Russell. Guardian's Office operations against State Attorney Russell. A series of documents showing compilation of information about Russell, his activities and communicati.ons. Informati.on obtained on Russell concerns personal communications and correspondence, strategies and policies concerning the Church of Scientology. ( CDP ) 32. Operations Against Mayor Gabriel Cazares of Clearwater, Florida. Series of documents outlining a vicious criminal campaign to "ruin Mayor Gabriel Cazares' political career by spreading a scandal about his sex life broadly", a scheme to frame Cazares by staging a fake hit and run accident in Washington, D.C., find or manufacture any false data to conduct a smear campaign against Cazares, to discredit the Mayor, etc. The Guardian's Office determined the Rutenburg and Blackburn family connected to Cazares, and subsequently investigated them and prepared operations concerning them. Additionally, the Guardian ' s Office attempted to create strife between Cazares and the City Commission via an operation of placing an agent in the Democratic Women's Club, the Democratic Executive Committee and CazareS' Campaign Committee to destroy him. The Guardian's Office planned to force all of its Scientologists to register in Clearwater to vote for the purpose of voting against Cazares. (CDP) Operations Against the Clearwater Sun. Series of Scientolcgy ' s Guardian ' s Office reports and operations against the Clearwater Sun, its editor, -23- publisher, reporters and employees. (CDP) 34. "China Shop", Clearwater Sun. Guardian ' s Office report concerning the publisher, editor, owner, writers, financial information, etc. of the Clearwater Sun. The purpose of the "China Shop" operation is "ownership or control of the paper". " To gain control, the policy calls for the "finance information on the paper, debts, its income are prime information needs" (CDP) 35. Series of Sciento!ogy Covert Agent Reports About Clearwater. Long series of reports to the Church's Guardian's Office in Clearwater from a covert Scientology agent who infiltrated the Clearwater Sun. This agent on a regular basis reported back to the Guardian's Office on the activities and lives of the Sun and its employees. In one report she discusses being under suspicion by the CleaTwater Sun as a covert agent, however,'when asked the question by the Clearwater Sun employees of being a Scientology agent or a Scientologist she lied and said no. (CDP) 36. Operations Against the St. Petersbury Times. Series of operations against the St. Petersburg Times newspaper, its reporters, Betty Orsini and others, and its owner or publisher, Nelson Poynter. (CDP) 37. Clearwater Attorney Norman Bie. Scientology Guardian's ~ Office operation concerning C!ea_~ater Attorney Norman Bie. Operation concerns information on -24- Evidentiary Fact: F. The Church of Scientology falsely represents auditing to be a "scientific process" guaranteed to confer specific benefits which is relied upon by individuals who pay large sums of money. 1. Auditing is described as scientific process that cures ailments. (1-109) 2. Hubbard discovered the scientific explanation for diseases and auditing was guaranteed to cure all ills. (1-112, 113) 3. Individual relies on false claims regarding scientific process and pays $40,000.00 to Scientology. (1-114, 168, 169) 4. Individuals pay money relying upon scientifically guaranteed benefits which are never delivered. (1-170', 171, 172) 5. Dianetics: The Modern Science of Mental Health, which describes the "scientific process" and guaranteed benefits derived from auditing, was written by Hubbard, without research, during a three week period. (1-267, 268,269) 6. Hubbard guaranteed that auditing would cure cancer. (2-20, 21) -28- 7. The Church of Scientology, in Clearwater, received revenues of 2.3 million dollars in one week. (2-235) 8. Scientology represented that the Scientology method was scientifically proven. (3-153) Scientology represents that the auditing process and Scientology publications are supported by scientific research. (3-215) -29- Evidentiary Fact: ~ D. The Church of Scientology in pursuit of its goal of control and ownership of the City of Clearwater, has infiltrated governmental offices and agencies and private enterprise. The Commission received and considered over 300 pages of material seized from headquarters of the Church of Scientology in Los Angeles in the summer of 1977. These documents specifically evidence plans to infiltrate, actual infiltrations, spying, sabotage, and other illegal activities and dirty tricks against public officials, private citizens, and public and private organizations in the Clearwater area, including newspapers, television stations, the mayor's office, the State Attorney's Office, numerous .departments of the city and county, and various federal, state and local law enforcement agencies, and various judicial officials. All of said plans and activities were conducted in strict secrecy. The documents also describe false information campaigns, including malicious libel, slander, and rumor mongering activities against public and private officials. Many of the above activities were specifically intended to influence public officials in the conduct of their duties. Other activities, including use of false front organizations to purchase real estate, were intended to avoid government regulation altogether and to obstruct justice. Furthermore, the documents establish that all of the above activities, intended to disrupt the functions of nearly every public and private organization in Clearwater were officially sanctioned and generously financed by the Church of Scientology as an organization, and not by errant Scientologists. The documents also demonstrate a pattern of investigating the personal backgrounds of public officials and their families and malicious use of that information in attempts to influence public officials in the conduct of their duties. Evidentiarv Fact: C. The Church of Scientology was and is engaged in a scheme to secretly acquire "downtown" properties with the specific goal of owning and controlling the City of Clearwater. 1. As recently as late 1980 the gross income of the · Scientoloqy organization in Clearwater averaged $400-500-,000.00 per week, and during one week it was $2.3 million. (2-235,236) 2. A substantial portion of net proceeds is placed in a reserve fund which has been used to purchase real estate. (2-236) On one occasion $25 million was disbursed to purchase real estate. (2-237) 3. An internal Scientology document, Operation Normandy, outlines the offices which will be infiltrated, people who will be planted and documents to be stolen. (4-313) and specifically states: "The major purpose of this project is to obtain enough data on the Clearwater area to be able to determine what groups and individuals B-1 will need to penetrate and handle in order to establish area control ." (4-418) 4. Secret Power Project 3: Normandie. Hubbard's Guardian's Office project to commence operations to gain control of Clearwater. The project called for the "B-!" (Guardian's Office subgroup responsible -17- for covert criminal operations) to "penetrate" groups and individuals in Clearwater to establish control. The covert attack included: the City Conumission, City Health Department', the City Mental Hygiene Department, the City Licensing Department, the City Police Department, the City Consumer Affairs Office, the City Attorney, similar offices under the County, similar offices under the State, the local Clearwater Representative to the U. S. Congress, Florida ' s U. S. Senators, local media companies (papers, T.V., radio), all local financial institutions and drug firms. (Clearwater Document Packet, heroinafter referred to as "CDP ") 5. Power Project:Tricycle. Hubbard' s Guardian ' s Office plan to begin locating enemies or enemy groups. Plan called for designating targets for penetration, including news media and heads or proprietors of news media in the Clearwater area, all "key political figures", all people and groups peculiar to the Clearwater area which exert the greatest control, example - Board of Realtors, all key financial influences." (CDP) 6. Prediction in Clearwater. Hubbard's Guardian's Office "chart of enemy lines" ... to "infiltrate". Included in this particular attack are: 1. St. Petersburg Times _ 2. The Mayor of Clearwater 3. Local T.V. station Channel 13 4. Local radio station personality Snyder 5. The Florida Attorney General 6. The Florida State Attorney, Russell. (CDP) 7. Prediction in Clearwater. Guardian's Office report concerning what "B-1 FSM's" (covert agents) in positions in Clearwater or on route to Clearwater. (CDP) 8. Use of Cover by B-1Flaq. Guardian's Office report concerning problem of a B-1 agent operation concerning Clearwater Commissioners. (CDP) 9. Telex. Scientology quoted telex concerning use of Scientology covert agents in theft of documents on St. Petersburg Times, Snyder, State Attorney Russell and 'the Mayor of Clearwater. (CDP) 10. Build Up a U.S. Ba~d AG Office. Scientology Guardian ' s Office report concerning Guardian' s Office personnel. Mentioned are particular agents to run covert missions in Clearwater. (CDP) 11. DG U.S. Outs~,andinq Orders into B-1U.S. Guardian's Office list of outstanding orders that have not been complied with. Included in this list of orders are operations against the Clearwater Sun, ~ayor, Sertcma Club and placing FSM's in Clearwater. (CDP) 12. Safe U.S. List of Scientology Guardian's Office instructions to set up certain operations. Criminal operations in Clearwater included placing an agent in the State Attorney Genera!'s Office and infiltrating the local District Attorney's Office. (CDP) Department, Clearwater City Attorney Bustin, Clearwater Downtown Development Board, Clearwater Building Department, and the Clearwater Fire Marshal. (CDP) 19. Gold Mine. Hubbard' s Guardian ' s office project to clandestinely enter Clearwater and covertly begin purchasing' property in Clearwater using a "straw" corporation. Approximately 10 million dollars of Church money is allocated to begin purchases. Hubbard's plan called for the Church of Scientology of California to surface after the Guardian' s Office had established area control. (CDP) 20. Guardian Program Order: Endure. Guardian's Office project to disguise or hide assets of the United Churches of Flordia from the internal Revenue Service. (CDP) 21. Bulldozer Operating Target 1: Government. List of Florida governmental agencies to attack. (CDP) ......... 22. Rumors. Guardian's Office operation to plant lies and false information with the Clearwater .... Sun and the Chamber of Commerce. (CDP) 23. Base Operation. Guardian's Office identification of "bank" of Clearwater and Mayor of Clearwater as enemies. Guardian's Office plan of "black propoganda" against them. (CDP) 24. Info Bureau. Guardian's Office report cn success of covert operations against State Attorney Russell -21- and additional information concerning B-1 FSM recruitment problem in Clearwater. CDP) 25. Info Bureau. Guardian ' s Office information concerning the Clearwater Sun. Guardian Office operation to remove guns and weapons being stored at the Fort Harrison due to FSM reporting possibility of search warrant by State Attorney. Russell.. (CDP) 26. Weekly Report: February, 19, 1976. Guardian's Office report of various enemies in the Clearwater area and how to attack them. (CDP) 27. Infor Bureau. Guardian's Office operations ag~aj!nst ......... Clearwater Sun reporter Mark Sabelman, Clearwater reported Steve Advokat, State Attorney James Russell. (CDP) 28. Info Bureau. Scientology Guardian' s Office ope_r_a__t_ionS against Bob Snyder, 'Clearwater Sun and Mayor Cazares. (CDP) 29. !nfo Bureau. Guardian ' s Office operations concerning Chamber of Commerce, Bob Snyder and "certain corporations" having large holdings in downtown Clearwater, who the Scientologists believe tie into a conspiracy against them. (CDP) 30. "This Area". Guardian's Office report of enemies in Clearwater. Guardian Office assessment indicates the St. Petersburg Times and owner Poynter the most dangerous enemy. (CDP) -22- Bie from 1948 through 1974. (CDP) 38. Guardian Office "PR" Targets. Series of Guardian's Office policies to: a) have the Clearwater Scientologists com- mence registration to vote to control public elections, particularly against Cazares; b) begin a letter writing campaign to the local newspapers; and c) send fraudulent letters to public officials and newspapers purporting not to be Scientolo- gi.sts but supporting Scientologists. (CDP) -25- Evidentiary. Fact: E. The Church of Scientology consistently misrepresents the qualifications of its founder, the nature of the auditing process and the character of the Scientology organization to attract paying customers who have been defrauded of money amounting to $500,000 to $-I'r000,000 per week. 1. Hubbard falsely represented to be a nuclear physicist_ (~-33, 265, 287, 288) Hubbard falsely represented to be a nuclear physicist, a graduate of George Washington University to individual who relied upon the founder's credentials and paid $35,000.00. (1-73) 3. Hubbard was not a wounded war veteran and 99% of what he wrote about himself was false. (1-264) 4. Hubbard wrote a different autobiography each week and would alter the facts to suit his needs. (1-289, 290) 5. Hubbard did not graduate from George Washing-ton University or Princeten. (1-289, 290) 6. L. Ron Hubbard's college transcript indicates he did not graduate from college, he received an F grade in Physics. (2-93) -26- 7. Naval records demonstrate that L. Ron Hubbard did not spend time in active duty/combat. (2-95) 8. Hubbard requests a psychiatric examination. (2-98, 99) 9. Hubbard created a fictional biography to pro-mote Scientology. (2-101, 102) 10. Hubbard promotes his book, All About Radiation, by misrepresenting himself as a nuclear physicist. (2-107, 108) 11. individual joins Scientology and is instructed that Hubbard was a wounded war veteran who cured his wounds. (2-111, !12) 12. Scientologist believed and relied upon misrepresentations pertaining to L. Ron Hubbard's background. (3-126, 127) 13. Member relies upon fraudulent representations that Hubbard was a nuclear physicist and scientist. (4-9) 14. Scientologist relies upon qualifications of L. Ron Hubbard and contributes $13,000.00 to the Church. (4-285, 286) -27- Evidentiary Fact: G. The Church of Scientology's insect infested and over-crowded housing facilities constitute a threat to the health of the Clearwater citizenry. 1. Regular use of hallways and concrete floors as sleeping quarters. (Burden Affidavit) 2. Ten beds placed in small room. (2-122) Overcrowded living quarters exist at the Fort Harrison. (2-146) 3. The Fort Harrison contains insect infested living quarters. (2-146) 4. Approximately ten persons share one bedroom at the Fort Harrison. (2-146) 5. Scientologist describes living quarters as insect infested and unsanitary. (2-182) 6. Scientology houses approximately 8-12 persons in regular sized motel room. (2-243) 7. Scientology building contains one room for men with 54 bunks. The room size is slightly larger than a regular sized hotel room. (2-244, 263, 264) 8. Sciento!ogy members sleep on the garage floors. (3-51, 52) -30- 9. Scientologist offered roach infested room to share with ten other individuals. (3-131) 10. Scientology room with eight bunks was cluttered with dirty clothing and papers. (3-150) 11. Cockroaches populated Scientology rooms. (3-150, 15t) 12. Scientology building constitutes a fire hazard wit,~ boxes and furniture stacked to the ceiling. (3-158,159) 13. Twenty-five people were housed in a single hotel room at the Fort Harrison. (3-!60) 14. Scientology member repeatedly bitten by a spider became ill and was denied medical treatment. (3-165, 166, 167) 15. Scientology membe_~ complains of spoiled food being served to members. (3-169) 16. Bunks were assembled in the Fort Harrison up to the ceiling. (4-203) -31- Evidentiary Fact: H. The Church of Scientology is currently engaged in repeated violations of the individual's rights by subjecting members to forced periods of confinement and interrogation and the performance of degrading acts. 1. Individuals are forced to wear dirty clothes and clean floors and sewers. (1-94, 95) 2. Individuals sometimes confined for hours or days and subjected to interrogation called security checking. (1-123) 3. Scientology policy reads, ".~n E-meter is better known as a lie detector and it's used to ascertain truth of background and conduct". (!-201) 4. Scientologists inquire whether a person has embezzled money, peddled drugs, raped, aborted children, committed adultery, practiced homosexuality or incest and use the information for blackmail. (1-204, 205, 206, 207) 5. Scientology policy authorizes the forcible capture and confinement of individuals who attempt to leave the organization. (1-216,217,218) 6. Scientoloqy policy calls for the physical restraint of individuals who attempt to leave. (2-135) -32- 7. Scientology "guards" prevent members from leaving Scientology. (2-149, 150) 8. Some Scientology members are confined to the garage and sleep in rat infested areas. (3-187) 9. Lie detector tests administered frequently to Scientology members to acquire information. (4-218, 219) -33- Evidentiary Fact: I. The Church of Scientology directs and orchestrates, from the city of Clearwater, against citizens of Clearwater and the United States and foreign countries, a pattern of criminal acts designed to blackmail, extort,, and destroy individuals who are perceived to be critical of Scientology. _ 1. Guardian's Office created to protect Scientology from enemies. (1-37) 2. Covert operations conducted against city officials and private individuals in Las Vegas. (1-41, 1-45) 3. Guardian's Office engaged in breaking and entering and infiltration to obtain or plant evidence. (1-45) 4. Guardian's Office operation conducted against City Public Health official to arrange an embarrassingand compromising liaison with a woman and threaten exposure of the details. (1-65) 5. Monies received by Church of Scientology in Clearwater used to finance criminal and covert activities against governmental agencies. (1-70) 6. Theft of documents from the Better Business Bureau. (1-89) -34- 7- Theft of document from the Las Vegas Review Journal. (1-89) 8. Covert taping of psychiatrist to obtain in-formation for blackmail. (1-89, 90) 9. Guardian's Office places contraband substance (drug) on individual. (1-101) 10. The Guardian's Office attempts to prevent the legislature from passing a bill regulating the licensing of counselors. (1-102) 11. Guardian's Office instructs members on how to commit burglaries. (1-107, 108) 12. Scientology policy schools members on the methods of collecting information, "infiltration", bribery, buying information, robbery and blackmail. (1-228) 13. Scientology defines and distinguishes burglaries and break-ins for the benefit of members engaged in such conduct. (1-231, 232) 14. Scientologists attempt to remove evidence of crimi-nal conduct from internal files. (1-233, 234,235) 15. Scientologists file perticularly sensitive evidence of criminal conduct in "Red Box" files. (1-236) 16. Scientology documents outline hypothetical situations to demonstrate blackmail and extortion. (1-245, 246, 247) -35- 17. Scientologist infiltrates building and surreptitiously obtains a victim's fingerprinted envelope for covert purposes. (2-118, 119) 18. All Guardian's Offices are run in precisely the same manner. (4-80) 19. Guardian's-Office designs an operation, "Oscar", to infiltrate attorney Michael Flynn's office. (4-87) 20. Guardian's Office instructs members to "shred" incriminating documents (4-101, 102) and Scientology created a written policy on shredding (vetting) documents. (4-101, 102) 21. Scientologists were ordered to simulate FBI raids in order to teach members how to mislead government authorities. (4-104) 22. Guardian's Office programs had to be approved by the United States Guardian's Office. (4-133) 23. Guardian's Office smuggles Krugerrand into the United States. (4-177) 24. The Church of Scientology's Guardian's Office conducted a "breaking and entering" team in Washington and Boston. (4-195) 25. Scientologists plan use of an infrared sniper scope for assassination of Mexican bandits. (4-198, 199) -36- 26. Scientology operatives burg!arize law firm and psychiatrist's office to acquire information for purposes of blackmail. (4-290, 291, 292, 293) 27. The Church of Scientology infiltrated the Attorney General's Office and the Better Business Bureau in Massachusetts. (4-293, 294, 299) 28. Internal Scientology document: Project Owl, evidences the burglaries of the psychiatrist's office, (4-310, 311) and originated in Clearwater. (4-340) 29. Internal Scientology document: Operation Freakout, evidences the intent of Scientology "to get Paulette Cooper incarcerated in a mental institution or jail, or at least to hit her so hard that she drops her attack". (4-311, 312) 30. Scientology documents describe in detail how to commit burglaries successfully. (4-314, Exhibits 50, 51 and 52). 31. Paulette Cooper was indicted for mailing a bomb threat to the Church of Scientology and subsequent internal Church documents reveal that t4s. Cooper was framed by the Church of Scientclogy. (4-326, 334, 337) -37- Evidentiary Fact: J. The Church of Scientology threatens members and former members with the collection of a legally unenforceable "debt". 1. Individuals are forced to remain in Scientology to avoid payment of "free loader debts" which become due upon termination of an individual's association with Scientology. (1-127) 2. Scientology maintains lists of individuals who have accumulated unenforceable "debts" and bill the individual. (1-214, 215, 216) 3. Scientology assesses a free loader debt against every individual who attempts to leave. (3-15) 4. New recruit who desired to leave Scientology was assessed a $5,000.00 free loader debt and told if she failed to pay the debt she would be required to go back on staff. (3-254, 255) -38- Evidentiary Fact: , K. While the Church of Scientology has created the appearance of classroom instruction for the eyes of city officials, no actual education has been provided. 1. Child educated at Scientology school lacks fundamental instruction in Math (2-155) and English. (2-157) 2. Education is frowned upon in Scientology. (2-156) 3. Scientology staff members who instruct Scientology children do not have teaching degrees. (2-216, 217) 4. Scientologists are taught that formal education is harmful. (3-91, 125,126,171) 5. Children in Scientology play video games during the day and into the early morning hours and do not receive classroom instruction. (3-177, 178) -39- Evidentiary Fact: L. The Church of Scientology has failed to provide safe and sanitary child care facilities in violation of basic human rights. 1. Children are permitted to wander about without' proper supervision. (2-153) 2. Scientology children were hidden in closets to avoid City Health Inspectors. (2-218) 3. The Scientology nursery in Clearwater was over-crowded. (3-21, 22) 4. The Scientology nursery in Clearwater was adjacent to a parking garage. One child was run over and killed by a motorist. (4-14, 17) 5. Children confined to the nursery had rashes resulting from the unsanitary conditions and many had the flu. (4-32) -40- Evidentiary Fact: M. The Church of Scientology's failure to provide sufficient medical care and the Church's failure to prevent the spread of disease constitutes a threat to the health of the Clearwater citizenry. 1.' Hepatitis epidemic existed and hepatitis shots were administered by unqualified personnel. (2-147, 148) 2. Scientology's unqualified medical officer refuses to call a qualified physician to treat ill child. (2-148) 3.. Scientology fails to provide minimum medical care to children resulting in herpes epidemic. (2-157, 158) 4. Scientology's medical officer regularly treats ill members although he lacks training as a physician. (2-167) 5. Scientologist suffers from food poisoning on serveral occasions. 6. Recruits promised medical care and suitable accommodations and are enticed to Clearwater. (3-203, 204) 7. Former Sciento!ogist discloses that Scientology attempted to conceal evidence of a hepatitis epidemic. (4-13) -41- Scientologists who contracted hepatitis were quarantined. (4-29, 30) 9. Scientologist contracts hepatitis in Clearwater after living in unsanitary housing facilities. (4-75, 76) -42- Evidentiary Fact: N. The Church of Scientology hascreated a policy which orders the commission of homicide. 1. R2-45 means that you shoot the person in the head. (1-78) 2.- R2-45 is shooting a person in the head. (1-96) 3. R2-45 is a Scientology policy created by Hubbard. (2-32, 33) -43- Evidentiary Fact: O. The Church of Scientology is engaged in the separation and destruction of the family through implementation of the "Disconnect" Policy. 1. Individuals threatened with Fair Game Doctrine if they fall to disconnect from parents. ( 1-55,56 ) 2. Disconnection from a person who is critical of Scientology is accomplished by ceasing communication with the critic, or separation or divorce. (1-193) 3. Scientologist acquires member ' s marriage licenses through false pretenses and presents license to member 's spouse as proof that member is seeking a divorce. (3-253,254) 4. Scientologists attempt to separate former Scientologist from her husband. (4,57,58) -44- Evidentiary Fact: P. The Church of Scientology subjects individuals to mental and psychological damages through the implementation of Scientology's dangerous techniques. 1. Scientologist states that organization is dangerous to the minds of young people. (2-268) 2. Scientology procedures are detrimental to the mind. (4-368) -45- EvidentiaL~f Fact: Q. The Church of Scientology has worldwide branches which are directed and controlled by the parent corporation in Clearwater. 1. Flag in Clearwater, is the home of L. Ron Hubbard ... and for every Scientolcgist, where all the orders come from. (1-92) 2. In every organization in the world, the Guardian's Office follows Guardian's Office policy: to seek out and destroy the enemy. (1-98) 3. Cle~_rwater is the world-wide headquarters for Scientology. (1-183) 4. Scientology has several "regging tours" that travel world-wide and solicit money for the Clearwater organization. (2-254,255) 5. The Flag Land Base in Clearwater is the central base of the organization. (3-17) 6. All orders to other Scientology organizations emanate from Flag in Clearwater. (4-75,76) 7. Guardian's Office is empowered to take over local churches and conduct their activities. (4-154) 8. The Scientology Organization is controlled from Clearwater. (4-166) -46- 9. All separate corporate entities are controlled by L. Ron Hubbard and Mary Sue Hubbard. (4-183, 184,185) 10. All Scientology operations were monitored by telex from Clearwater. (4-189) -47- Evidentiary Fact: R. The Church of Scientology is currently engaged in a recurrent and pervasive use of blackmail, intimidation, infiltration, espionage and other anti-social acts through the implementation of Scientology's "Fair Game" policy: 1. Fair Game Doctrine: "Enemy, SP, Fair.. Game, may be deprived of property or injured by any means by any Scientologist without any discipline of the Scientologist, may be tricked, sued or lied to or destroyed". (Exhibit 1, 1-57) 2. Fair Game Doctrine is currently in existence and applied. (1-56,57,58,197) 3. The homes, propezty, places and abodes of persons who criticize Scientology are subject to attack. (1-190,191) 4. Any person who testifies against Scientology before a state or public inquiry is subject to attack. (1-191,192) 5. Scientology corporate policy dictates that a person who criticizes Scientology should be investigated and any evidence of misconduct should be used to discredit him. (1-193,194,196) 6. Scientology policy states, "If attacked on some vulnerable point by anyone or anything or any organization, always find or manufacture enough -48- .~threats against. them to cause them to sue for peace." (1-212) 7. Scientology policy authorizes the misuse of the - judicial system, "the purpose of the suit is to harass and discourage rather than to win. The law can be used very easily, to harass". (1-222) 8. Fair Game means that the Church of ScientoloT/-c~n '- .... do anything to harm a critic. (3-106} 9. Pursuant to the Fair Game Policy's authorization to lie,. the Scientology organization programs its members to lie. (3-236) 10. Scientology policy which purports to cancel the Fair Game Doctrine explicitly states that the policy for treatment or handling of critics rems~ins unchanged. (3-299) and policy states that critics may be sued, tricked, lied to or destroyed. 11. Former Scientologist's home and phones were bugged. (4-9) 12. Scientology plots an elaborate operation to separate husband and wife. (4-55,56) 13. Operation "Shake and Bake" designed to prevent an aggrieved member from seeking legal advice. (4-82,83) 14. Scientologist testified that the cancellation of the "Fair Gaxre" policy did not affect the practice of the policy. 0m~dian's Office per~op~el c~ntinued thepractice of the policy -49- 15. Any public official who criticized Scientology was investigated and attacked. (4-103) 16. Scientologists train members to lie, for the purpose of perfecting the art of lying. (4-105) 17. Fair Game policy remained in effect. although publicly... it was purported to be cancelled. (4-113) Guardian Office created a covert operation designed, to achieve the disbarment of Attorney Michael J. Flynn. (4-126,127) 19. Guardian's Office. activities are conducted pursuant to the Fair Game Doctrine which states that any enemy may be tricked, sued, or lied to, or de-. stroyed. )~4-154) 20. The Guardian's Office has conducted operations against Michael Flynn. One such operation called for the covert infiltration of Mar. Flynn's law office and was designated Operation Oscar. (4-155) 21. The Guardian's office conducted a second operation designed to encourage a client of Attorney Flynn's to fire him. Attorney Flynn filed a suit against the Church on behalf of this client. The operation was code named "Shake and Bake". (4-155) City Commission as enemies. (4-213,214,215) -50- Evidentiary Fact: S. The Church of Scientology wrongfully and maliciously divulges personal and confidential information, confided to Scientology by its members during auditing sessions, for the purpose of blackmail, manipulation and control. 1. Guardian's Office threatens member with disclo-sure of confidential auditing information. (1-50) 2. Guardian's Office peruses individual's auditing file, and culls confidential disclosures pertaining to sexual conduct and threatens disclosure. (1-75) 3. Scientologist threaten disclosure of confidential' information to prevent individual from seeking : legal relief. (1-172, 173) 4. L. Ron Hubbard used auditing information for blackmail purposes. (2-62) 5. Guardian's Office culls confidential information with respect to a member's sexual conduct in violation of representation of confidentiality. (2-200) 6. Confidential information submitted at inception of individual's membership used against him. (3'19~, 197) -51- 7. Member's auditing information was wrongfully disclosed to the.newspaper and published therein in violation of representation of confidentiality. (3-290) · 8. Former Scientologist relied on representations that auditing information was confidential. acientologists revealed confidential information to the'bress. (4-10, 25, 26) 9. The confidential information of Mr. Hartwell, a former Scientologist, was circulated throughout the United States and outside the United States. (4-81) 10. Scientology member's confidential information taken to a newspaper for publication. This operation was sent from Clearwater for the purpose of discrediting the individual. (4-81, 82) 11. Guardian's Office member testifies that confiSential information is culled from a person's auditing file attack or blackmail the person. (4-86) 12. Auditing files of former members who criticized Scientology were systematically sent from Clearwater to local Guardian's Offices in violation of representation fo confidentiality. The auditing files were used to embarrass and humiliate. (4-132, 133) -52- 20. Scientology telexed confidential auditing information of a member concerning her sexual conduct. (4-362, 363, 364) -54- COMMISSION FINDINGS Whereas the City Commission recognizes a com- pelling need to protect the citizens of Clearwater and visitors to the City from deceptive and coercive solici- · tation techniques used by organizations claiming chari- table purposes; and Whereas the City Commission recognizes a threat to the public welfare posed by.organizations which raise money by appeals to charity and use the funds raised for non-charitable and criminal purposes; and Whereas the City Commission recognizes inadequate investigation and regulation of such groups by agencies of the State of Florida and Pinellas County, and inadequate remedies for people who have contributed money to such groups without knowledge of their noncharitable activities; and Whereas the City Commission recognizes that inadequate remedies presently exist for people who have contributed money to such groups or purchased goods and services based on fraudulent representations of fact; and Whereas the City Commission recognizes a serious present threat to the health and safety of the citizens of Clearwater posed by overcrowded, unhealthful, and unregulated conditions in group living facilities in'and around Clearwater wherein a serious risk of spread of communicable diseases exists;and Whereas the City Commission recognizes that corrupt practices of certain individuals authorized to perform marriages poses a threat to the health and welfare of the citizenry by avoiding the laws of the State of Florida pertaining to marriage and divorce which are intended to prevent spread of disease, bigamy and illigitimacy F- and Whereas the City Commission recognizes a right of all children to acquire those basic skills of learning which are necessary to advance and. prosper in modern society, and that the education of certain groups of , children has. been seriously neglected, and that certain groups of children have been subjected to unhealthful and abusive conditions~ and. Whereas the City Commission recognizes that public officials in the exercise of their duties and private citizens in the exercise of their civil rights have been subjected to corrupt, covert, and illegal forms of intimidation, and that public agencies and private groups have been unlawfully infiltrated, and that individuals and groups have corruptly influenced elections by covert and illegal means, and that all of said activities pose serious threats to the integrity of the process of government in the City of Clearwater and to the welfare of all the citizens of Clearwater, and that said acts have heretofore gone entirely unpunished~ and Whereas the City Conu~ission recognizes that the unregula~ed exp&nsion of ~ax-exem~ uses of ~:o~er~y in the Downtown Development District and acquisition of property in the District by persons who refuse to pay taxes poses a serious threat to the financial well being of the Downtown Development District; and -- Whereas the City Commission recognizes that many of the problems described here cannot be solved by action of the City alone but require joint action and cooperation between the City of Clearwater and other cities and jurisdictions; Therefore the City Commission has considered and enacted the following ordinances and resolutions: -58- PROPOSED RESOLUTIONS 1. Housing Standards - Sister Jurisdictions. It is hereby resolved'by the City Commission of the City of Clearwater, the City Commission having heard evidence that substandard living conditions have. and do exist in certain related living facilities in Clearwater, Largo, and other parts of Pinellas County, and that the conditions which have existed in those facilities have presented a clear and present threat to the health and safety of the residents of those facilities and to al.1 the citizens of Clearwater, and that the City of Clearwater is incapable by itself of correcting and eliminating all of said hazards because of the location of certain facilities ' outside of the city limits and the daily visitation of ~-~ny residents of such facilities to the environs of .downtown Clearwater, that a formal request be made to the Commissioners of Pinellas County and the City Commission of the City of Largo to vigorously enforce all laws regarding overcrowding and sub standard living conditions in group living facilities, and to the extent that existing laws do not adequately address the problem of overcrowded and substandard group living facilities, 'that new legislation be enacted to correct the dangerous conditions which now exist and have existed, and that such enforcement and enactment of legislation take place with all due speed to remedy a health emergency now in existence. 2. Tax Collection. The City Commission of the City of Clearwater, having heard evidence reflecting directly on the taxable status of real estate owned by various entities of the Church of Scientology within the city, and having a direct in~eres~ in full and fair collection of all ~AxeB ~e Qn uQmme~uial ~Qpe~iii within ~he city, hereby resolves to formally request that the Pinellas County tax coklector take the follow. ing ..actions with regard to taxation of properties owned by the Church of Scientology: a) carefully review the transcripts and exhibits of hearings conducted before the City Commission on May 5-8, 1982. 5) to whateve~ extent possible make use of all' such materials in present and future administrative and judicial proceedings involving the Church of Scientology; . c) to the maximum extent possible, pursue investigations of those m~tters raised in the hearings which demonstrate lack of tax-exempt status of the Church of SCientology under Florida law; d) to the maxinEun extent possible to coordinate such investigations with other entities investigating the Church of Scientology; e) to devote all available. resources to the collection of deliquent taxes owed by the Chu~ah of Scientology; f) to investigate and. collect taxes due on purely com- mercial operations of the Church of Scientology, including the hotel business, and the World Institute of Scientology Enterprises 3.. Violations of Marriage Laws. The City Commission of the City of Clearwater, having heard evidence of persistent violations by ministers of the Church of Scientology of chapters 741 and 826 of the F16rida Statutes, and having a direct interest in the adverse social consequences of bigamy, illegi- to request the Pinellas County State Attorney' s Office tO formally investigate t.~e matter of Scientology ministers engaging in deliberate violations of Florida law, including consum-~tion of marriages in violation of Chapter 741, conspiracy to commit bigamy, and failure to properly file marriage certificates, and to vigorously prosecute all such criminal offenses and seek injunctions to prevent violations of civil law which are not punishable criminally. 4. Violations of Marriage Laws. The City Commission of the City Of Clearwater, having heard sworn testimony that ordained ministers of the Church of Scientology m~ke a regular practice within the State of Florida of failing to comply with Florida Statutes chapter 741.08, and in connection therewith making a practice granting '"divorces" without requisite legal formality, and recognizing that such practices pose a threat to public health and that there are no criminal penalties for violations of F.S. 741.08, hereby form~lly requests the Florida legislature to enact with all due speed a criminal penalty for deliberate violations of F.S. 741.08. 5. Child Care. The City Commission of the City of Clearwater, having heard evidence of persistent neglect and abuse of preschool age children in child care facilities operated within Pinellas County by entities of the Church of Scientology, hereby resolve to formally request the Commissioners of Pinellas County and all responsible officials of the county to investigate the licensing, standards, and conditions of all child care facilities· operated by the Church of Scientology and to regularly inspect the conditions of all such facilities, and to -62- inspect and review the evidence heard by the City Commission on May 5-8, 1982 and to take all legal steps to remedy and prevent recurrance of such conditlons. 6. Education The City Commission of the City of Clearwater, having · heard evidence of persistent neglect within the Church of Scientology. in Clearwater of the education of school age children, and of serious deficiencies in basic_ ............... ~_ __ skills among school age children of Scientology-staff members, and of the lack of regular schooling of any sort for such children, it is hereby resolved by the City Commission to request the Commissioners of Pinellas County and all responsible officials of the county to review the record of testimony, heard by the Comm{ssion on May 5-8, 1982 as it pertains to the ed- · ucation of children, to forthwith investigate compliance of Scientology school facilities with laws and regula- tions governing such facilities including the competence of teaching personnel, and to take all legal and ap- propriate steps to enforce compliance with existing laws and regulations and to enact remedial programs where necessary and possible to ensure the natural right_s_ .o. of all children to learn those basic skills necessary for success in modern society. -63- PROPOSED ORDINANCES I ZONING AMENDMENTS -'. 1. Change sec. 131..150 (b)(6) to read: (6) Institutional; but excluding churches and accessory church uses as defined in sec. '~ 131. 204 (see sec. 131. 150 (e) for provisions" relating to tax-exempt uses). 2. Change sec. 131.155 definition of "Institutional" to read: "Institutional": Public or quasi-public use involving public and minicipal services and facilities and quasi-public health, cultural or philanthropic services and facilities, including governmental office and public assembly uses, but excluding churches and accessory church uses as defined in sec. 131.204 (see sec. 131. 150 (e) for provisions relating to tax exempt uses). 3. Add new sec. 131.150(e): (e) Notwithstanding any other provision of this chapter, any proposed new, altered, or expanded use of property in the Downtown Development District for tax-exempt purposes (as defined by Florida statute)excepting structures owned and operated by any governmental agency, shall be permitted only upon consideration and approval as a special exception by the board of adjustment and appeal on zoning in accord with the provisions of section 131.016. In determining whether to approve any special exception under this section, the board shall consider, in addition to the factors set'forth in sec. 131.016(g) the compatability of the proposed use with the purposes of the downtown plan. The community redeVelopment agency shall review, take a position' on, and be heard before the board of adjustment and appeal concerning any such proposed tax-exempt use and its compatability with the purposes of the downtown plan, and shall review and certify to the board of adjustment and appeal the probable effect of such proposed tax-exempt use on the financial well being of the downtown development district. The term "financial well being" includes, but is not limited to: 1) ability of the downtown development dis- trict to meet outstanding obligations; 2) marketability of bonds, notes and securities issued, or to be issued, by the down- town development district; 3) effect of the proposed use on actual and assessed values of other properties in the downtown development district. The board of adjustment and appeal on zoning shall not approve any special exception for a tax-exempt use which is shown' to have a probable and non de minimus. adverse impact on the financial well being of the downtown development dis trict. '. II HOUSING STANDARDS AND LICENSING OF GROUP LIVING FACILITIES 1. Amend the Standard Housing Code, referred to in sec. 138.01 of the Clearwater Code, to include the fol- lowing provisions relating to group living faCili-.- ties. a) definitions: i) "group living facility" is any dwelling, or part thereof containing five or more '- rooming units and which is occupied by ten or more persons, including dormatories and rooming houses without regard to owner- ship, exclusive of any group living faci- lity which is licensed and regulated as to living conditions by the federal govern- ment, the State of Florida, or Pinellas County. ii) '."rooming unit" is any room or group of rooms forming a single habitable unit used or intended to be used for living and sleeping, but not for cooking and eat- ing purposes, exclusive of any hotel or motel room which is part of an establish- ment licensed as such by the State of Florida and actually offered on that basis to the public subject to rules and regula- tions governing hotels and motels. b) Group living facilities - special sanitation standards: ~ i) Lavatories. Every group facility shall .. be equipped with at least one flush water closet, one lavatory basin, and one bath- tub or shower for each five persons oc- cupying the group living facility. ii) Bedding and towels: The owner or opera- ., tot of any group living 'facility shall maintain the bedding in a clean and sani- tary manner, and he shall furnish clean linens and towels at least once each week to each occupant. 'Ose or bunkbeds. or of bedding placed directly upon the floor as sleeping accomodations are pro- hibited in group living facilities. An owner or operator of a .group living facil- ity who willfully allows a condition pro- hibited by this section to exist shall be deemed in violation of sec. 1.08. iii) Communicable disease. An owner or operator of a group living facility who observes or is aware of an occupant suffering from any of the following conditions shall immediately notify the (county health officer): fever, prolonged vomiting, prolonged diarrhea, persi'stent coughing, jaundice, seizures, spasms, coma, delusions, spots, sores, or any other symptom sufficient to raise a reasonable suspicion of communicable disease. ~1 -68- iv) Insects and vermin. An owner or occupant of a group living facility shall be re- sponsible for keeping all rooming units reasonably free of insects and vermin. c) Group living facilities - space and occupancy standards.. No owner or operator of a group .'. living facility shall allow any person to oc- cupy any ~ooming unit in such facility which does not comply with the following minimum standards for space and occupancy. i) Habitable floor ar~a. Every rooming unit shall contain at least 120 square feet of habitable floor area for the first oc- cupant, and at least 50 square feet of additional habitable floor area for each additional occupant. ii) Sleeping' rooms. In every group living facility, every room occupied for sleeping purposes only shall be required to meet the standards set forth above in (i). " iii) Storage. Every rooming unit in any group living facility shall have adequate stor- age to accommcdate the clothing and person- al effects of every 'occupant. iv) Calculation of floor area. Floor area shall be calculated on the basis of habitable room area, excluding bathrooms, water closets, closets, and haliways. v) Basements and garages. No structure which is designed and constructed principally for storage of automobiles may be used as living or sleeping space in a group living facility on a permanent or temporary basis. No basement may be used as living or sleeping space in a group living facility unless: (a) the floors and walls are substantially watertight; · (b) all other provisions of this section " are met, including regulations per- taining to space, storage, and window area; (c) the required windc~ area of every such ....... basement unit is entirely 'above the grade of the ground adjoining such -- window area, not including stairwells or access ways'. d) Willful failure of an owner or operator of a group living facility to comply with any provision of this section shall be deemed a violation of sec. ~1.08, in addition to all other civil penalties and obligations imposed by this chapter. Any person twice convicted of a violation of this section within .a 5 year period, or any organization which twice suffers conviction of any agents, officers, or employees within a 5 year period, shall suffer permanent revocation of the license to operate a group living facility. -70- 2, Add a section to chapter 138 requiring owners and operators of group living facilities to obtain a .... license from the building director, and periodic in- spection as follows: a) No person shall operate a group living facility within the city after (.date) unless a city li- ~:: ' cense shall be issued to such operator by the __. building director. b) Application .and issuance of license, Any ap- plication for a group living facility license shall accompany the application with a fee of $ .. Applications shall be on a form prescribed by the building director, be accompanied by a certificate of occupancy as defined in sec. 131.007, and shall contain at least the following information: i) the name and address of each owner and operator of the facility, and, if the owner is a corporation or trust, the names of all principal officers; ii) the number of rooming units, the loca- tion of each unit in. the building, and the number of persons permitted to oc- cupy each rooming unit; iii) the number and type of beds in the facility; iv) a description of the storage facilities in each rooming unit. ..- c) Inspection. Upon application for a group living facility license the building director shall inspeat the facility described therein for cc~9.1iance -71- with this section. If the inspection shows compliance with this section, a license shall be issued. Thereafter, the building director shall inspect each licensed facility at in- .... terva~s not greater than six months, except that, in the case of an operator convicted of ..... a violation of this section, the building dir-..- ector shall inspect the facility at intervals '~ not greater than 30 days, for a period of one year. All such inspections may be conducted without advance notice to the owner or opera- tot of such facility and at such times as the building director deems appropriate. d) Revocation. Upon discovery of lack of com- pliance with (section of the code regulating group living facilities) the building director shall notify the City Commission and the Pinellas County State Attorney's Office in writing:. Thereafter, the City Commission may revoke any license subject to the procedures set forth in sec. 71.12 of this code, except as provided elsewhere in this section regarding permanent revocation. A group living facility license may.be revoked for any of the grounds set forth in sec, 71,12 according to the procedure described therein, III REGULATION OF CHARITABLE SOLICITATION DEFINITIONS '1. "Solicitation" means the requestS directly or indirectly r money, credit, property, financial assistance, or other thing of value on the plea or representation that such money, credit, property, financial assistance, or other thing of value will be Used for a charitable purpose as those. purposes are defined in this part, including the following methods: a) Any 6ral or written request. h) The making of any announcement in the press or electronic media in which any member of the public is reqUe.sted to pay money to a charitable organization in the City of Clear- water. c) The distribution or circulation, posting or publishing of any handbill written advertisement, or publication which directly or indir- ectly encourages payment of money to a charitable organization in the City of Clearwater. d) The sale of, offer of, or attempt to sell any advertisement, advertising space, book, card, tag, coupon, device, magazine, membership, merchandise, subscription, tangible items, course or course of study, or service in connection with which any appeal is made for any charitable purpose, or when the name of a -73- charitable organization is used or referred to in such an appeal as an inducement or reason for making any such sale, or when, in connection with any such sale, any statement 'is made that the whole or any part of the proceeds from any such sale will be donated to or used for a · charitable purpose. EXEMPTION~ , 1. The ~registration require.ments of this Chapter shall not apply to: a) charitable organization~ Which receive less than ' $200,000 per calendar year in contributions; b) the...offering for sale or auction of any goods, services, of things of value upon the representa- tion that the proceeds thereo~ are for a charit- able purpose, where the proceeds thereof do not exceed $50,000 in any calendar year. Power'of Consumer Affairs Officer to Register ..and Investigate Charitable Solicitations 1. The Consumer Affairs Officer of the City of Clearwater is hereby vested with the genera4= authority, power, and jurisdiction to enforce the provisions of this chapter (substitute different official if Consumer Protector Act is not adopted). 2. The Consumer Affairs Officer may make such rules as he deems necessary from time to time ~to implement / the provisions of this chapter, and may require from any organization subject to this chapter any reports and information he deems necessary for the administra- tion of this chapter. The Commissioner shall have '. r_he powe~ to prescribe forms for registration, dis- closure, ~'nd other purposes, to adopt procedures, and when necessary, to convene hearings as provided- ~ in this chapter and make recommendations to appropri- ate prosecuting attorneys for enforcement_.of__.any.. penal provision of this chapter. Any rules promul- gated under this section shall become effective upon approval by the City Commission. 3. In addition to the authority granted the Commissioner by this chapter, he may commence and maintain in a court of competent jurisdiction all proper and necessary. actions and proceedings to enjoin and abate any act prohibited by this chapter, or to enforce any subpoena issued by the Commissioner or to seek any injhnction authorized by this chapter. ................. 4. The Commissioner, upon his own initiative or upon ............ the complaint of any person, may, if he has reason- able ground to suspect a violation of this chapter, investigate any charitable organization, profession- al fund raising counsel, or professional solicitor to determine whether such organization, counsel, or solicitor has violated the provisions of this chap- ter or the rules and regulations' promulgated by the Commissioner, or has filed any statement or infor- mation required under this chapter which contains false or misleading statements. 5. All financial records of any professional solici- tor or charitable organizations which pertain to the solicitation and expenditure of contributions received shall, upon demand, be available to the Commissioner for inspection and investigation and the term "financial records" shall be deemed to include banking records and statements, checks, drafts, receipts, and papers of any description which indicate the receipt or expenditure of funds. ~owever, names, addresses, and identities of con- tributors and amounts contributed by them shall 9e exempt from the provisions of s. 119.07(1) , the. public records law; shall not be disclosed by , the Commissioner; and shall be removed from the records and the custody of the Commissioner at such time that such information is no longer neces- sary for the enforcement of this.chapter and shall not be disclosed by the Commissioner. 6. The Commissioner may enter into reciprocal agreements with the appropriate authority of any other government entity for the purpose of exchanging information with respect to organizations subject to the provisions of this chapter. 7. For purposes of enforcing the provisions of this chapter and making inveseigations of any violation thereof, and ~or purposes of.investigating the practices and business methods of a~y organizations to determine if there have been violations of this chapter, the Commissioner shall have the power to subpoena and bring before it any person in the state and may require the production of papers it deems necessary and administer oaths and take depositions of any such person so subpoened. The Commissioner shall have the power to effect service of process of subpoenas. Upon failure of a person without lawful~ excuse to obey a subpoena issued and served by the Commissioner, 'the.. Commissioner may ~pply to the Circuit Court for an order compelling. compliance. 8. In addition to all other powers and duties created by this chapter, the Commissioner is empowered to receive and investigate complaints from any individual who claims. to have been defrauded, deceived, or injured by the commission of any act prohibited by this chapter as a result of a solicitation or solicitation activities in the City of Clearwater by an organizat_ton subject to this chapter. Processing Complaints Filing 1. Any person alleging injury as a result of a violation of the provisions of this chapter shall file with the Consume~= Affairs Officer a complaint in writing, sworn to or affirmed, which shall state the name and address of the complainant and the person against whom the c0mplain~ is made, as well as =he alleged facts sUrrounding the injury, and other such information as the Officer may require. A complaint shall be filed within one year of the date when the complainant learned of the alleged injury. 2. Processing complaints. a) Investigation; conciliation. Upon the filing of a complaint the Consumer Affairs Officer within sixty days shall. make such investiga- tion as he deems appropriate to ascertain facts and issueS. If, within ninety (90) days, ehe complaint is not settled and if ~e officer' shall determine that there are reasonable' ' grounds to believe an unlawful injury has' oc- curred and is susceptible of conciliation, then the officer shall at'tempt to conciliate the matter by methods of initial conference and per- suas=ion with all interested parties and such representatives as the parties may choose to assist them. Conciliation conferences shall be informal, and all reasonable efforts shall be made by the parties thereto. to reach a s e ttlement. b) Dismissal by officer; ~~.~e_~-e If the officer determines that the complaint lacks reasonable grounds upon which to base a viola- tion of this chapter, he shall dismiss--the case. Any person who has filed a complaint which is ultimately dismissed may, appeal by way of certiorari' to the .Dis~crz~t Court within 30 days thereafter. c) Administrative hearing following failure to conciliate. If the Cohsumer Affairs Officer, with respect to a matter which involves a contravention of this chapter,-fails to conciliate a complaint, after the parties, in good faith, have attempted such conciliation, as provided .. in subsection (a), the Officer shall, within ten (10) days notify the state division of administrative hearings that it would like to have a hearing officer furnished to conduct an. = administrative hearing with respect to such complaint. The administrative hearing provided: ...... for heroin shall be conducted by the hearing officer within sixty (60) days of the state division of administrative hearings being .._ notified of the officer's request for,a hearing · officer. Any conciliation agreement reached more than thirty-six (36) hours prior to a scheduled administrative hearing shall result in such hearing being cancelled. d) Administrative hearing procedure; .appeal. In conducting any administrative hearing to ascer- tain whether or not there has occurred an in- jury under the provisions of this chapter, the hearing officer shall have the power to administer oaths, issue subpoenas, compel the production of books, papers .and other documents ind rece~ive eviaence. The hearing officer in the conduct of such administrative hearing shall utilize a procedure similar to that provided in F.S. 120.57(1) and 120.58. All recommended orders prepared by the hearing officer as a result of such hearing shall con- form with the requirements for such orders as set out in F.S.~ 120.59. At the conclusion of such administrative.hearing, the hearing officer shall transmit his order composed of findings of fact and conclusions to the .... Consumer Affairs Officer, .. , -- The order together with the recommendation shall be considered as the final order of the~ Consumer Affairs Officer for the purposes of .' ..... ~ proceeding fur~ther under this section. Either party to such administzative proceed- ings shall have the right to appeal the ad- ministrative order described herein by filing a notice of appeal pursuant to Florida Appel- late Rule 9.110.(2) within thirty (30) days of the issuance of such order by the Consumer ~ Affairs Officer. The city or the charging party shall have authority to bring an action in equity in the circuit court to implement the final administrative order in order to insure compliance with this chapter, The court of equity shall be empowered to issue mandatory or prohibitive injunction to implement such administrative order. e) Enforcement of subpoenas. In case of refusal to obey a subpoena issued by the hearing officer, the city or the perso~ at whose request it was issued may in addition to any other remedies made available petition for its enforcement in ~e appropriate court. f) Action to obtain compliance with order. Should any party fail or refuse to voluntarily comply with the final order issued as. this chapter, then, following the expiration of the appeal time provided herein, the Consumer Affairs -80- officer shall forward such order together with his. recommendation to the city commission with a request that the city commission authorize 'the city attorney to bring such action to obtain compliance with this chapter. g) Waiver of acts or time periods for excusable neglect. When an act is required or allowed to be done at or within 'a specified time by this section, for cause shown the consumer. affairs officer at any time in its discretion may order the period enlarged or may pernLit the act to be done when failure to act was. the result of excusable neglect'. REGISTRAT ION 1. Every charitable organization in the City of Clearwater which intends to solicit contributions in Clearwater, or to sell or render any goods or services in Clearwater in connection with a solicitation for a contribution, shall, prior to any solicitation, after date following enactment, file a. registration statement with the Commissioner of Consumer Affairs on the forms prescribed by him. The registration shall contain: a) The name of the organization and the purpose for which it was organized. b) The principal address of the organization and the addresses of any officers in the city. c) The names and addresses of any chapters, branches, and affiliated organizations in the City. d) The place where and the date when the organization was legally established, the form of its ~r~aniza%ion and a reference to any determination of its tax exempt status under the Internal Revenue Code of the United States, the laws of any state, and the laws of any county or municipality. e) The names and addresses of all officers, directors, trustees, and the principal salaried executive staff officers.. f) A copy of a financial statement prepared pursuant to a recognized uniform system of accounting which shall be prescribed or approved by the Commissioner, audited with an opinion of an independent certi- fied public accountant, and covering complete disclosure of all the fiscal activities, of the charitab.le organization during the preceding year. 'Said report. shall conform to the "Audit Guides" published by the American InStitute of Certified Public Accountants, and as may be modified from time to time by said Institute. g) The names and addresses of every person with any responsibility for. receiving, depositing, handling, holding, or disbursing any funds on behalf of the organization, and a statement of each person ' s responsibility. h) Whether the organization intends to solicit contributions from the public directly or have such done on its behalf by others. i) Whether the organization is authorized by any 'governmental authority to solicit contributors, and whether it has ever been enJoined or restricted in its manner of solicitation by any court or government agency. j) The specific purpose or purposes for which contributions shall be used. k) The name or names under which it intends to .solicit contributions. 1) The cost of fundraising incurred or anticipated to be incurred by the organization, including a breakdown of all expenses and a statement of such costs' as a percentage of contributions received. Said information shall include: (1) The cost of manufacturing, purchasing, renovating or repairing any merchandise which is offered' for sale in connection with a solicitation. (2) The cost of providing any service which is offered in connection with a solicitation. (3) The cost of any shows, theatrical presentations, lectures, or courses offered in connection with a solicitation. m) A description of the amount of funds expended by the organization to support or defend litigation. n) A description of all commercial fundraising activities conducted by the organization and a statement of the amount earned at each activity. "Commercial fundraising activities" shall include: (1) The sale of goods and articles for a profit. (2) The provision of services for a charge in excess of their cost. (3) Collection of rent on real e'state and interest on money loaned. (4) Any capital gains realized by the sale of any capital asset. (5) Interest and dividends earned on stocks, bonds and securities. o) The name and address of each person or entity to whom, in th~ .preceding year, the organization paid more than $50,000.00 for any reason whatsoever, ,.. and the purpose of each such payment. p) The name and address of each person having custody of any financial, record of the organization. q) A narrative description of the promotional plan together with copies of all advertising material which has been prepared for distribution. r) Such other information as my be reasonably re- quired by the Commissioner for the. public interest or for the protection of contributors. , 2. The, regis,tration required under this section shall be filed and signed under oath by the chief executive officer of the organization. If the chief executive officer of the organization does not maintain a residence Df principal office in the City of Clearwater, the registrar'ion shall additionally by 'endorsed and signed under oath by the highest ranking officer of the organi- zation who resides or maintains a residence in the City of Clearwater. If said registration statement contains information of which, or the documentary evidence of which is possessed entirely by any person or persons who do not reside or maintain an office or residence in the City of Clearwater, the statement shall designate · any such information, and include the name and address of any such person, and specify the information and documents 'which any such person posse-~ses. 3. No organization shall withhold any information or documents,=required to be produced under this chapter or requested by the Conumissioner during an investigation on the basis that the documents or persons who possess the information are not located in the City of Clearwater. Any refusal to produce documents or information for such. reason shall constitute sufficient grounds for the Co,,-xdssioner to seek and obtain an injunction against all solicitation activities by the organization Within the City of Clearwater. 4. If there is any change in fact, policy, or procedure that would alter the information given in any registration statement, the. registrant shall notify the Com-, missloner in writing thereof within 10 days. 5. Except as otherwise provided in this chapter,' registration statements and all other documents and information required to be produced under th'{s chapter by the Commissioner shall become public records in the office of the Commissioner and shall be open to the general public .un'r such c'ondi-t~ions_ as the Co_.missioner my-pnescr__i~.e. if the Commissioner determines that any organization subject to this chapter has failed to file a registration statement or has filed a statement which does not contain information sufficient for the purposes of this chapter, he shall notify said organization in writing and specify what information it has failed to produce. If any such organization fails for fifteen consecutive days after. receipt of notice to provide such specified information without legal excuse, the Commissioner shall declare a default, and such default ~hall constitute sufficient grounds ~or the Commissioner to seek and obtain an injunction against all solicitation activities by the organization in the City of Clearwater. :. MA/NTENANCE OF RECORDS Every organization subject to the provisions of this . chapter shall, in accordance with rules and regulations .... promulga_ted by the' Commissioner, keep true fiscal records as to its activities in conformity with the principles set out in the "Audit Guides" published by the American Institute of Certified Public Accountants. Such records shall be maintained. for a period of three (3) years after the end of each fiscal year of the organization and shall be made available to the Commissioner upon request. NOTICE AND PUBLICATION OF WARNINGS CONCERNING CERTAIN CHARITABT~ ORGANIZATIONS 'If the Commissioner finds that any charitable organization subject to this chapter has failed to file a registration statement, or has filed a statement containing insufficient or false information, or has engaged in any act prohibited "by this chapter, he may, in addition to all other actions authorized by this chapter, publish and promulgate notice to the public containing the following information: a) that the particular organization is subject to the provisions of this chapter; b) that the Commissioner is authorized to receive and investigate complaints relating to fraud and violations of' this chapter; c) that the particular organization has failed. to register, or provide sufficient information, or has engaged in prohibited acts, as the case may be. The publication may contain a description of the prohibited acts found to have been co-,,~itted. The notice and publication -86- may be placed in electronic and printed media and may be publically posted in a m~nner calculated to give reasonable notice to all persons .affected. 'Said notica may be termed or entitled a WARNING. In addition to the above, the Com- missioner may apply to the Court for an order. that the o. Sheriff' post such a notice at conspicuous places on the ._. premises of the organization. PROHIBITED ACTS No organization subject to the provision of this chapter, and no agent, employee, or officer of any such organization, shall engage in any of the. following prohibited acts: a) use, expenditure, or allotment~ of solicited fdnas for any purpose other than the charitable purposes of the organization; b) use of any portion of solicited funds to plan, support, or execute any conduct which is criminal or illegal under the laws of the City of Clearwater, the State of Florida, or the United States; c) use of any portion of solicited funds for the profit or enrichment of any person; provided, however, that payment of reasonable salaries to employees in ex- change for substantial services shall not constitute a violation of this section, nor shall reasonable commissions paid to professional fund-raisers; d) making of any false statement or giving of any false information pursuant to the provisions of this chapter; e) commission. Of any act, acts, or course of conduct resulting in loss or denial of a tax exemption -87- pursuant to s.. 50 1 (c) ( 3 ) of the Internal Revenue Code of 1954, or of any corresponding section of any subsequently inacted Federal Revenue Act~ f) commission of any violation of the consumer ~ - protection laws of the City of Clearwater, Pinellas- '- County, the State of Florida, or the United States, ~-. u in the sale of any goods or services in. connection " with which'.any appeal is m~de for a charitable purpose, or the name of any. charitable organization or purpose is used as an inducement for the sale, or any statement is made that the whole or any part, · of the proceeds from any such sale will be used for a charitable purpose; g) use of any scheme or artifice to defraud or obtain money or property by means of any false statement, representation, or promise; h) falsely representing that any contribution will entitle the donor to a Federal or State tax deduction; i) use of unconscienable pressure or threats to obtain a donation, or falsely representing to any person that a pledge or promise to make a contribution constitutes a legally enforceable obligation under circumstances in which no such legal obligation exists; j) promising any person that a contribution will be refunded upon request, and thereafter failing to promptly make a refund which has been requested; k) promising any person that refunds of contributions will be made upon request without providing such person, at the time such representation is made, with a written statement of the terms and conditions upon which refunds are made; 1) promising any person that refunds will be made without maintaining adequate records and reserve -88- funds. to allow for prompt refunds upon. request; ... m) receiving or disclosing confidential information about any person for purposes or engaging in so'li- citation of money or property, under circumstances in which the person who provided the confidential information was not aware that it would be used for solicitation purposes and did not thereafter consent t6 its use for solicitation purposes. For .. purposes of .this part, "confidential information" .. means information obtained upon a promise that it would be kept in confidence and shall include, inter alia, records of confidential information' kept by attorneys, physicians, clergymen, and counsellors; n) failure to maintain any records required under this chapter; o) failure to make any disclosure required under this chapter or to report. any change of condition as required by this chapter; p} solicitation by any person on behalf of any organiza- tion without written auth.orization of a presently active officer of the organization whose name has been disclosed pursuant to this chapter; q) obstruction of any investigation commenced under this chapter; r) willfull failure to honor a subpoena duly issued and served by the Commissioner; and s) falsely concealing the identity of an organization on whose behalf solicitations are being made. ENFORCEMENT AND PENALTIES 1. If, after inves~igation, t.he Commissioner has reasonable grounds to believe that an organization subject to this "~ chapter, has failed to file a registration statement as required herein, or has filed a statement which is false or misleading, or has filed a statement containing insufficient. information and has failed to correct such insufficiency after notice of default, he may . bring an action in the Distridt Court to enjoin any solicitation or solicitation activities by the organiza- tion in the City of Clearwater for a period of time sufficient to ~eter such failures but not to exceed one year. The Court, if it finds that such violations or failures have occurred, shall give injunctive relief accordingly. 2. If, after investigation, the Commissioner has. reasonable grounds to believe that an organization subject to this chapter has engaged in. any._of the acts prohibited herein, he shall apply to the Distric~ Court for injunctive relief to abate such violations. The Court, if it finds that such violations have occurred, shall assess a fine in:an amount sufficient to deter future violations, but not exceed $2.,500.00 per violation. .In addition, the Court may award the Commissioner. attorney 's fees in an amount sufficient to cover costs of enforcement. As provided herein, the Court may authorize the posting of notices in conspicuous places on the premises of any Organization which has been guilty of prohibited acts sufficient to warn .the public of commission or prohibited acts by the organ'ization. 3. In addition to the foregoing, any person who willfully and knowingly gives any false information to the Commissioner in filing statement and reports required herein, ·or who willfully and ~nowingly obstructs an investigation of the Commissioner, or who willfully and knowingly leaves the State or assists any person to leave the State for the purposes of avoiding the provisions of this part, shall be punishable (punishment is to be established by the City Commission). If the Commissioner becomes aware of any such violation, he shall. report to the appropriate prosecuting attorney all. records and documents which he may require. IV. CONSUMER PROTECTION STATUTE 1. Title - this ordinance shall be designated the Consumer Protection Ordinance of the City of Clearwater. 2. Legislative Intent - the public health, welfare, and interest require a stron~ and. effective consumer pro- ' tection program to protect the interests of both the consumer public and legitimate businessman. Toward this end, the position of the Consumer Affairs Officer is hereby created in the City of Clearwater to enforce · all state laws, county ordinances, and municipal ordinances to consumer protection. 3. Definitions: ~ a) "Consumer transaction" means a sale, lease, assignment, award by chance, or other disposition of an item of goods, a consumer service, or an intangible to an individual for purposes that are primarily personal, family, or household, or a solicitation by a supplier with respect to any of these dispositions. Said definition shall include, inter alia, transactions and solicitations relating t'o publicly offered vacation plans, courses of study or instruction, physical and mental self improvement courses, business 'and personal counsellag" services, but ~h~.~l not include services. rendered by licensed at- torneys, physicians, dentists or medical care practitioners. Said definition shall also include sales of goods and services by charitable organizations or solicitations for such sales, wherein .a representation is made that the thing sold is of substantial value commensurate with the price charged as an inducement or reason for ~king such sale. b} "Supplier" means a seller, lessor, assignor, or other person who. regularly solicits, engages in, or enforces consumer transactions, whether or not the supplier is a natural person, partnership, association, corporation, charitable organization, or & non-profit organization. c) "Violation" means a violation of any state law, county ordinance, or municipal ordinance relating to cons,,~mer protection, whether civil or criminal in nature, including, but not limited to the Florida Deceptive and Unfair Trade Practices Act, as interpreted in light of the Federal Trade Commission Act and other Federaal consumer protection acts, and the interpretations given the by the federal courts. 4. Powers and Duties of the Consumer Affairs Officer. a) To enforce the provisions of all state laws, county 'ordinances, and municipal ordinances relating to consumer protection, whether civil or criminal, according t0 the procedures set forth herein. b) To receive and investigate complaints of alleged violations as defined in this ordinance. c) To initiate investigations'where there is reason - to believe, based on evidence presented to him by any person that a violation has occurred or is -' occurring. - d) To refer complaints to the Office of the State Attorney where there is reason to believe that a criminal violation has occurred or is occurring. To institute actions in the Circuit Court according to the procedure set forth herein, to obtain a declaratory judgement that an act or practice constitutes a violation, and to seek injunctive relief against a supplier or other person who has committed, is committing, or is threatening to commit a violation. f) To effect service of process upon any supplier or other person charged as a respondent in a complaint. g) To effect service of process upon witnesses. h} To instigate hearings, as set forth herein. i) To order a supplier or other person to cease and desist from committing a violation. j) To implement and administer consumer protection education programs and consumer warning campaigns. -93- 5. Operating Procedures of the Commissioner. a) Any person may make or file a complaint with the Commissioner stating the name and address of a supplier or other person alleged to have committed the violation complained of and the particulars thereof, and such information as may be required by the Commissioner. A complaint shall be filed within 360-days of the alleged violation in order to be processed under this chapter. b} Upon this filing of a complaint, the Commissioner shall. cause such investigation as he deems appropriate to be made. If the Commissioner determines that there are reasonable grounds to believe that a violation has occurred, he may attempt to conciliate the matter through conferences with all interested parties and such representatives as the parties may choose to assist them. c) If the Commissioner determines that there is no reasonable grounds to believe that a violation has occurred, he shall dismiss the complaint. Any perSOn who has filed a complaint which has ultimately been dismissed by the Com~issi,0ner may appeal by way of certiorari to the District Court within 30 days thereafter. d) Wherenever the Commissioner shall have reason to believe, based on evidence presented to him and based on his investigations, that a supplier or other person has committed or is committing a a violation and if it shall appear to the Director , public interest, he shall notify the state division -94- of administrative hearings that he would like.to ~ have a hearing officer furnished, 'to conduct an - administrative hearing with respect to such com- , plaint, and a hearing .shall be conducted within' 45 days thereafter. Notice shall be issued and served upon the supplier or other person complained of 'not l=ess. than 14 days prior to the hearing date stating the charges .and setting the time and place of hearing. 6. Service of Process - Service of process upon a respondent shall be accomplished at least fourteen (14) days prior' to the date of hearing and may be affected by personal service by a duly designated agent of the Commissioner or by certified ~il, return receipt requested. Service by certified mail shall be effective three (3) days after depositing. the complaint and notice of hearing in the United States 'Post Office addressed to the owner a-t his last known address with postage prepaid thereon. 7. Procedures Governing Hearings. The following procedures shall govern the conduct of hearings under this chapter: a) In conducting any administrative hearing under this chapter, the hearing officer shall have the power to administer oaths, issue"subpoenas, compel production of books, papers, and other documents and receive evidence. The hearing officer shall utilize a procedure similar to that provided in F.S. § 120.57(1) and 120.58. b) Burden of Proof - The burden of proof shall be upon the complainant. -95- c) Order of Proof - The complainant shall present evidence and testimony first. Thereafter, the · respondent shall have the right to present its evidence and testimony. The complainant shall then have. the right to present rebuttal evidence and testimony. d) Admissibility of ~vidence and Testimony - Any relevant evidence shall be admitted if the hearing officer finds it competent and reliable, regardless of the existence of any common law or statu~6ry' which might make improper admission of such evidence. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless. it would be admissible in civil actions. The rules .of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions. Irrelevant and unduly repetitious evidence shall be excluded. At the hearing the parties may present testimony and evidence', ~d the. right to cross-examine witnesses shall be preserved. All testimony and evidence shall be given under oa~_h or by affirmation. The hearing record shall be public and open to inspection by .any person; and upon request by a principal party to the proceeding, the Coa~ssioner shall furnish such party a copy of the hearing record, if any, at such cost as he deems appropriate. Each party shall have the following rights: i) to call and examine witne'sses; ii) to introduce exhibits; iii) to cross-examine opposing. witnesses on any relevant matter even though that matter -96- was not covered on direct examination; iv) to impeach any witness r~gardless of--which " party first called him to testify; and v} to rebut. the evidence. e} Action by the Commissioner. If based upon the' testimony and evidence presented in the hearing~ 'the hearing officer determines that a supplier or other .... person has committed or' is committing a violationp- ........ he shall transmit his findings of fact and con' clusions in writing to the Consumer Protection Officer. The Consumer Protection Officer shall thereafter within fourteen (14) days, draft and serve upon all parties a final adm/nistrative order setting forth ~ lawful. reedy sufficient to compensate the com- painant for any wrong found to have been committed by the hearing officer. Said final order may require or prohibit any Other action, as permitted by this chapter, to deter future commission of acts which are wrongful. under this chapter. f) Service of Orders - Any supplier or other' person affected by any order or other action by the Commissioner, shall be notified either personally or by mail of such Order or other action, and unless waived, a copy of the final Order or action, shall be delivered or mailed to such supplier or other person or to his attorney of record. 8. Judicial Review - Any person, firm, corporation, or agency aggreived by any decision of the Commissioner may appeal to the courts as provided by general.law within 20 days from the date of the decision sought -97- 9. Enforcement of Orders - Should any party fail to refuse . .to voluntarily comply with a final .order under this chapter, the city or the complainant shall have the authority, following the expiration of the appeal time provided heroin, to bring an action in equity in the circuit court to implement the final administrative order. The ,court of equity shall be empowered to issue mandatory . ~_-.~Or' pr, ohibitive.injunction to implement such final order.. ~ .... In any such instance wherein the Consumer Affairs Officer concludes that a matter of general public interest is involved, he shall forward his order to the city commission with ~ request that the city commission authorize the city attorney to bring such action in .._ the circuit court to obtain compliance with this chapter. 10. Enforcement of Subpoenas - Upon failure of a person without lawful excuse to obey a subpoena issued by a hearing officer or by the Commissioner and upon reasonable notice to all persons affected, the city or person.at whose request it was issued, may apply to the circuit' court for an order compelling compliance. V. OCCUPATIONAL LICENSE 1. Amend sec. 71.13 (263) to include: Scientology Auditor or practitioner. VI. MARRIAGES AND MARRIAGE LICENCES 1. Amend the ~ublic health and safety laws of the Clearwa_ter Code with the following provision: Any individual who is authorized to perform ~zziaVes under FIOEi4~ law wh~ per~o~m a marriage ceremony and thereafter willfully fails to comply with Florida Statutes ch.741.08 shall be deemed guilty of a violation of 51.08 of this Code. .VII. INTIMIDATION OF CITY OFFICIALS ~ND WITNESSES BEFORE CITY AGENCIES 1. Amend Chapter '150 of the Clearwater Code with' the following provision: a) . Whoever corruptly, or by threats or force, or by any threatening communication, endeavors 'to influence, intimidate, or impede any official of the City' of Clearwater in the performance of his lawful duties, 'or any witness or person intending to testify before the City Commission or any board or agency of the City of Clearwater7-,~rr-'any citizen of the City of Clearwlter in the exercise .. of any right guaranteed by the Constitution of the United States ~or the State of Florida, and whoever injures' any person in his person or property on account of having executed his duties as a public-official, or testified before the City Commission or any board or agency of the City of Clearwater, or, exercised any right guaranteed by the Constitution of the United States ~a~/or the State of Florida, shall be deemed guilty of 51.68 of this Code, in addition to any other penalties prescribed by law. b) For purposes of this section, the ~te;m "threats" shall include, inter alia, ~hreats to expose con-' fidential or embarrassing information. c) Any violation of this section which is directed ~ against an official of the City of Clearwater or a witness or person intending to be a witness before the City Commission or any board or agency of the City shall be punishable under this section regardless of where the violation took place. _ VIII. CORRUPTLY INFLUENCING ELECTIONS 1. Whoever, with corrupt intention to influence an election for any public office within the City of Clearwater falsely attributes any statement or writing to a candi-' date for public office with the intention of misleading the electorate shall be deemed guilty of a violation of ~1.08 of this Code. -100- ================================================================= If this is a copyrighted work, you are acknowledging by receipt of this document from FACTNet that on the basis of reasonable investigation, you have not been to obtain a copy elsewhere at a fair price, and that you are and will abide by the following copyright warning. WARNING CONCERNING COPYRIGHT RESTRICTIONS: The copyright law of the United States (Title 17, United States Code) governs the making of photo copies or other reproductions of copyrighted material. Under certain conditions specified by law, libraries and archives are authorized to furnish a photocopy or other reproduction. 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