a definite lose-lose situation

Monday I took my seat belt off to give a dollar to a guy on the corner of 41N and Shaw, who was holding a sign that said HARD WORKER. He refused to take my dollar. He actually shook his head at me and walked away. I had this feeling I had insulted him somehow.

Before my back wheels hit Shaw a motorcycle cop had his lights whirling on me. He cited me for driving without my seat belt.

Yeah. A definite lose-lose. The guy on the corner lost out on one dollar, and I will likely lose out on 100 times that.

But here is the issue...

At first, I thought to myself, "Well I guess that guy really does want to work. He doesn't want me to hand him money at all."

Further reflection (and some snickering from acquaintances) has led me to believe that the gentleman on the corner saw that cop way before I did. And that he knows a lot more than I do as well.

So...is panhandling illegal? I've heard conflicting stories. Some involving $90 fines. What is YOUR understanding of the issue?