HomeMy WebLinkAbout69-07 Permit Sales Regulations12
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ORDINANCE NO. d 9- 9
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, PROVIDING FOR THE REGULATION OF CLOSING OUT
SALES AND MAKING PROVISIONS FOR FEES, PERMITS, REGULATIONS
AND OTHER MATTERS IN CONNECTION THEREWITH.
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 6217 of the Costa Mesa Municipal Codes
is hereby repealed.
SECTION 2. There is hereby added to Chapter VI of the Costa
Mesa Municipal Codes the following Article which shall read as
follows:
CHAPTER VI
Businesses, Professions and Trades
Article 14
Closing Out Sales
Sec. 61400. Definitions.
FOr the purpose of this ordinance, the following
words and phrases shall have the meanings attributed to them as
hereinafter provided.
(a) Close -Out Sales. Any sale of, or offer to
sell, to the public, or any part thereof, goods, wares, or
merchandise in stock, in furtherance of a declared purpose, as
advertised, when such sale is anticipatory of or to avoid the
termination, liquidation, revision, windup, discontinuance,
removal, relocation, dissolution, closing or abandonment of a
business conducted at any location and shall apply to any and all
sales advertised in such manner as to convey to the public, or to
that portion of the public to which such advertising is directed,
the belief that upon disposal of the goods to be placed on sale,
the business or that portion thereof being conducted at any locat
will cease, be removed or relocated, including but not necessaril
limited to all sales advertised to be an "adjuster's sale," an
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I "adjustment sale", an "assignee's sale", a "bankrupt sale",
2 "benefit or administrator sale", a "benefit of creditor's sale",
3 a "benefit of trustees' sale", a "building coming down sale", a
4 "closing out sale", a "creditor's committee sale", a "creditor's
5 sale", a "damaged goods sale", an "end sale", and "executor's sale",
6 a "final days sale", a "fire sale", a "fixture for sale", a
7 "forced out sale", a "forced out of business sale", an "insolvent
g sale", and "insurance salvage sale", a "loss of lease sale", a
9 "mortgage sale", an "out -selling sale", a "quitting business sale"
10 a "receiver's sale", a "reorganization sale", a "salvage sale",
11 a "selling out sale", a "smoke sale", a "smoke and water sale",
12 a "trustee's sale", a "whole -sale closing out sale", a "we quit
13 sale", a "we give up sale", or any other sale advertised by any
14 similar expression or characterization which is calculated to
15 convey the same meaning.
16 (b) Advertise: Any and all means, whether
17 verbal or written, used for conveying to the public, or any part
IS thereof, notice of the conduct of a Close -Out Sale, Fire Sale, or
19 Bankruptcy Sole as defined herein, or notice of intention to con -
20 duct such sale.
21 (c) Permit: A permit issued pursuant to this
22 ordinance.
23 (d) Permittee: Any person, firm, association,
24 or corporation to whom a permit has been issued pursuant to this
25 ordinance.
26 (e) Person: Any individual, firm, association,
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corporation, or partnership, or theagent of any of the aforesaid. i
28 Sec. 61401. False Advertising.
29 Itshall be unlawful for any person to advertise
301 or otherwise represent to the public, or any part thereof, in any
31 manner a reduction in price of any goods, wares, merchandise,
32 service, facility, or accomodation, whether such price reduction
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be represented in complete price figures or by percentage
reduction unless the price from which the reduction is calculated
is the price customarily charged by applicant for the goods,
wares, merchandise, service, facility, or accomodation so offered
to the public.
Sec. 61402. Permit Required.
It shall be unlawful for any person to advertise
or conduct a Close -Out Sale, as herein defined, without first
obtaining a permit therefor from the City Council of the City of
Costa Mesa in the manner hereinafter provided.
Sec. 61403. Persons Exempt.
The provisions of this ordinance shall not apply
to, or affect, the following persons:
(a) Persons acting in their official capacities
as public officials.
(b) Persons acting pursuant to process issued
by a court of competent jurisdiction.
(c) Duly licensed auctioneers, selling at
auction.
(d) Any publisher of a newspaper, magazine,
or other periodical or publication, who publishes in good faith
any advertisement without knowledge of its false, deceptive, or
misleading character, or without knowledge that compliance has
not been had with the provisions of this ordinance.
Sec. 61404. Interval Between Sales.
Any person who has held sale, regulated hereunder,
at the same location as stated in the application, within one
year preceding the date of the application, shall not be granted a
permit.
Sec. 61405. Restricted Operation of Permit.
In the event a person, applying for a permit
hereunder operates more than one place of business, any permit
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issued hereunder shall apply only to the one store for which
application is made, and no other store or branch shall advertise
or represent that it is cooperating with it, or in any way
participating in such sale, nor shall the store at which such
sale is conducted advertise or represent that any other store or
branch is cooperating with it or participating in any way in such
sale.
Sec. 61406. Application for Permit.
Any person, desiring to advertise and conduct a
sale regulated by this ordinance shall make a written application
therefore, under oath. There shall be no fee charged for the
first 30 days duration of said permit. There shall be a fee of
$100.00 charged for the next 30 day permit and there shall be an
additional $400.00 fee charged for the final 30 day permit. No
sale may continue beyond 90 days. The following is required:
(a) The true name and address of the owner of
the goods, wares, or merchandise to be the subject of the sale.
(b) The address of the place where such sale
is to be held.
(c) The nature of the occupancy of applicant
at that place where the sale is to be conducted whether by lease,
sublease, or otherwise, and the effective date of termination of
such occupancy.
(d) The dates when the sale is to be conducted.
(e) A full and complete statement of the facts
relating to the manner in which the sale will be conducted.
Sec. 61407 Investigation.
Upon the filing of the application for a permit
as hereinabove provided, the Finance Department shall make or
cause to be made such examination or investigation of the
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applicant and his business, history, and affairs in relation to
the proposed sale as it shall deem necessary. If the Finance
Department finds that the statements in the application are true,
and that the methods proposed to be used by the applicant in
conducting the sale are not such as, in its opinion, will work
a fraud or deception upon prospective purchasers, it shall
recommend to the City Council the issuance to the applicant of a
permit to conduct such sale in conformity with the provisions of
this ordinance; otherwise, it shall recommend to the City council
a denial of the application. The Finance Department may also
refuse to issue a permit to the applicant because of the in-
sufficiency of the information set forth in the application,
but in the event of a denial for insufficient information, the
Finance Department shall grant the applicant permission to file
an amended application.
No permit may be issued to any applicant who
has been convicted of any crime, involving fraud or moral tur-
pitude within 5 years preceding application. The Finance
Department also may refuse to issue a permit to any person who
has heretofore violated any provisions of any ordinance of the
City of Costa Mesa regulating the conduct of sales of the type
herein regulated. Upon approval of the application by the
Finance Department, the application, together with a report of
the investigation made pursuant thereto shall be sent to the City
Council for approval or disapproval. Upon approval of the
application by the City Council, the Finance Department shall
issue a permit. In no event shall any fee be returned to the
applicant.
Sec. 61408. Effect of permit.
Any permit issued hereunder shall be issued on
the following terms.
(a) The permit shall authorize the sale
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I described in the application for a period not to exceed thirty (3C
2 consecutive calendar days. Applicant may make application for
3 additional 30 day periods not to exceed 90 days in total and
4 the Finance Department, with approval of the City Council, may
5 grant said permit providing the necessary fees have been paid
6 and providing the applicant is not in violation of this ordinance.
7 (b) The permit shall authorize only the one
8 type of sale described in the application at the location therein
9 described.
10 (c) Any permit or renewal thereof granted
11 as herein provided shall not be assignable or transferable.
12 Sec. 61409. Surety Bond Required.
13 Any applicant to whom a permit is to be issued
14 under the provisions of this ordinance shall submit to the
15 Finance Department, a corporate surety bond satisfactory to the
16 City payable to the City in the penal sum of One Thousand Dollars
17 ($1,000.00) conditioned upon compliance with the provisions of
18 this ordinance. No permit shall be issued unless and until
19 such bond has been filed with said Officer of City.
20 Sec. 61410. Duties of Permittee.
21 A permittee hereunder shall:
22 (a) Refrain from any false, deceptive, or
23 misleading advertising.
24 (b) Conduct such sale in strict conformity to
25 any advertising or holding out relating thereto.
26 Sec. 61411. Revocation of Permit.
27 The City Council shall have the power to revoke
28 or suspend at any time any permit granted in accordance with the
29 provisions of this ordinance whenever any such sale is being
30 conducted in violation of any of the provisions of this ordinance;
31 or in such a manner as to deceive or defraud the public; or if:
32 (a) The holder of any such permit has been
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quilty of any fraudulent practice or practices in the conduct of
the sale authorized by such permit.
(b) The holder of any such permit has made any
material misstatement in the application for such permit.
(c) The holder of any such permit has violated
any of the provisions contained in this ordinance."
SECTION 3. This ordinance shall take effect and be in full
force thirty (30) days from and after its passage and prior to
the expiration of fifteen (15) days from its passage shall be
published once in the Orange Coast Daily Pilot, a newspaper of
general circulation, printed and published in the City of Costa
Mesa, together with the names of the members of the City Council
voting for and against the same.
n ,1
PASSED AND ADOPTED THIS - ii day of 4N A / , 1969.
ATTEST:
City Clerk of the City of Costa Mayor f rhe City of Costa Mesa
Mesa
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF COSTA MESA )
I, C. K. PRIEST, City Clerk of the City of Costa Mesa, and
ex -officio Clerk of the City Council of the City of Costa Mesa,
hereby certify that the above and foregoing Ordinance No.i 9_ %
was introduced and considered section�hby section at a regular
meeting of said City Council on the 19n 1/
day of 4 Xlc ,1969,
and thereafter passed and adopted as a whole at a#re ular meeting
of said City Council held on the.2 day of /}p,iti%"`"id 1969,
by the following roll call vote:
{—�
AYES: ✓,lra� /✓c%e,, '/'7%C�It��C C/.*X�w... (/�t•.��er
NOES: A411
ABSENT: M✓
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the seal of the City of Costa Mesa, this.)Z9- day of T
,1969.
City Clerk and ex -officio
of the City Council of the
City of Costa Mesa.
mQ
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.
CITY OF COSTA MESA )
I am a citizen of the United States and a resident of the
County aforesaid; I am over the age of eighteen years, and
not a parry to or interested in the below entitled matter. I
am the Legal Advert i_ *lana:; Or
of the ORANGE COAST DAILY PILOT, a news,"per of gen-
eral circulation, printed and published in the City of Costa
Mew, County of Orange, State of California, and I certify
*� C9.ty Ordinance Number 69-7
of which the copy attached hereto is a true and complete
copy, was printed and published in the regular issue(s) of
said newspaper on :,lay 1, 1969
I dedare, under penalty of perjury, that the foregoing
is true and correct.
Executed on Ya'y 1 19 69
at Costa Mesa, California.
U
(steeenes)
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS.
CITY OF COSTA MESA )
I, C. K. PRIEST, City Clerk of the City of Costa Mesa and ex -officio Clerk of the City Council of the
City of Costa Mesa, hereby certify that Ordinance No 69-7 was introduced and considered,
section by section, at a regular meeting of the City Council of the City of Costa Mesa, held on the 17th _
day of March , 1969, and thereafter passed and adopted as a whole at a regular
meeting of said City Council held on the 28th day of April 19 69, by the
following roll -call vote:
AYES: COUNCILMEN - WILSON, TUCKER, ST. CLAIR, JORDAN, PINKLEY
NOES: COUNCILMEN - NONE
ABSENT: COUNCILMEN - NONE
I FURTHER CERTIFY that said Ordinance No. 69-7 was published in the ORANGE COAST
DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, an the
1st day uf+. May
City Clerk and ex -officio Clerk of the City Council
of the City of Costa Mesa