20.36.010 Permit required.

No person shall advertise or conduct a closing out sale or sell or offer for sale any goods, wares or merchandise at a sale represented to be a closing out sale without first obtaining a permit to conduct such closing out sale from the Director of Administrative Services after investigation by the Director of Police Services. If the sale is to be conducted at a public auction, then in addition to the provisions of this chapter, the provisions of CMC Title 12 shall apply. (Ord. 1519)

20.36.020 Definition.

Whenever used in this chapter, the term “closing out sale” shall mean any offer to sell to the public, or sale to the public, of goods, wares or merchandise upon the implied or expressed representation that such sale is in anticipation of the ceasing, discontinuance, or termination of a business, or that such sale is other than in the ordinary course of business. Without limiting the generality of the above, a closing out sale shall include any sale advertised or represented, either specifically or in substance, to be: “Adjustor’s sale,” “administrator’s sale,” “bankrupt sale,” “creditor’s sale,” “close out sale,” “executor’s sale,” “end of business sale,” “final sale,” “forced out of business sale,” “insolvent sale,” “inventory liquidation sale,” “inventory close out sale,” “inventory disposal sale,” “liquidation sale,” “lost lease sale,” “must vacate sale,” “quitting business sale,” “receiver’s sale,” “stock disposal,” “stock sell out,” “stock liquidation sale,” “termination sale,” “wind up sale,” or any other term tending to convey to the public that upon the disposal of the stock of goods on hand the business will cease and be discontinued.

20.36.030 Application for permit.

A. An application for a closing out sale permit shall be filed with the Director of Administrative Services by the person intending to conduct such sale, at least 20 days prior to the intended commencement thereof.

B. The application shall be deemed filed when accompanied by a payment of the permit fee of $25.00. When a closing out sale will involve a public auction and stock items of jewelry, then the application will be accompanied by a fee of $100.00.

C. The application for permit shall be in writing, signed and verified under oath, by the person who intends to conduct such sale, and each application shall set forth and contain the following information:

1. Full name and address of applicant.

2. Address of location where closing out sale is going to be conducted.

3. The date and hour when the closing out sale is going to be commenced.

4. The anticipated completion date of the closing out sale.

5. An inventory of all goods, wares and merchandise owned by the applicant which are intended to be sold at the closing out sale. Items will be described in sufficient detail so that their identity may be readily determined.

6. An inventory of all items held on consignment by the applicant which are intended to be sold at the closing out sale. No consigned goods may be sold at a closing out sale which have not been in the applicant’s possession for at least 30 days prior to the date of the application and located in the City of Coronado for at least 30 days prior to the date of the application.

7. In the event that the sale will be conducted at public auction, the name of the auctioneer who shall conduct the closing out sale.

8. A statement that no other items will be included in the closing out sale unless a supplemental inventory is provided to the City of Coronado prior to the inclusion of such items into the applicant’s existing inventory.

20.36.040 Processing application.

A. The Director of Administrative Services will refer the applicant to the Director of Police Services for investigation.

B. The Director of Police Services shall approve the permit application unless:

1. Contents of the application are untrue in any respect.

2. The proposed method of conducting the closing out sale will endanger the public health, safety or welfare.

C. The Director of Administrative Services will issue the permit so long as:

1. The Director of Police Services has approved the application.

2. The applicant signs a statement under oath as follows:

The privileges of this permit are accepted by the undersigned who agrees to comply with its conditions and all other provisions of Title 12 of the Coronado Municipal Code.

(Ord. 1791, 1992)

20.36.050 Conditions on the permit.

A. The permit shall specify the location of the closing out sale and authorize it to be conducted for a period of not more than 60 calendar days. The applicant may be required to file a statement executed under oath at the conclusion of the closing out sale to the effect that only those items listed in inventories submitted to the City were sold during the closing out sale.

B. There may be imposed such conditions as are necessary to preserve and protect the public health, safety and welfare.

C. The applicant may appeal to the City Manager and thereafter the City Council any one or more conditions which the applicant finds objectionable.

20.36.060 Renewal of permit.

A. The permit may be renewed by the Director of Administrative Services for a period not to exceed 30 days on the filing of an application filed under oath together with the payment of a renewal fee of $25.00.

B. The verified application shall identify those items remaining to be sold.

20.36.070 Cancellation of permit.

Any permit issued in accordance with the provisions of this chapter shall be immediately void and invalid upon the closing out sale not being conducted in accordance with law or if items not contained in an inventory filed with the City of Coronado are offered for sale or sold away from the location where the closing out sale is being conducted.

20.36.080 Records.

Every person conducting a closing out sale required to be permitted by this chapter shall record chronologically each sales transaction concurrently with each transaction, in book form, in English, indicating the date of sale and describing items sold. The record book shall be preserved for one year after the last entry is made therein and shall be available for inspection by any police officer of the City during normal business hours.

20.36.090 Exemptions.

The provisions of this section shall not apply in the case of:

A. Sales conducted by order or process of a court of competent jurisdiction.

B. Sales conducted by public officers such as marshals and sheriffs in accordance with their powers and duties.

20.36.100 Violation.

Any person, firm, or copartnership, corporation, association or other organization, or member of such organization or any manager, director or agent of such organization that participates in or aids or abets in the conduct of a closing out sale in violation of the provisions of this chapter shall be guilty of an infraction. The sale of an item at a closing out sale which is not identified on an inventory filed with the City of Coronado shall constitute a separate offense. The sale of any item as part of a closing out sale which is not conducted in accordance with the provisions of this chapter shall constitute a separate offense.