Outside the Chinese Theatre in Hollywood (still Grauman's to many of us, though Mann's owned it for years), there are always a number of costumed characters available to pose with tourists for a fee. They don't have business licenses, so they technically fall under the panhandling/loitering statutes.

Normally it's not a problem and as long as they don't cause trouble or bother the tourists, the theatre management doesn't complain. Every once in a while, someone gets a little too aggressive in shilling for business or they say something that offends someone, a complaint is made and the police clear them out for a while. Often happens at the beginning of the summer because everything then gets turned down several notches for a while in order to avoid getting picked up.