Chapter 5.40
CONTROLLED SALES
Sections:
5.40.030 Permit – Filing of application – Fee.
5.40.040 Permit – Contents of application.
5.40.050 Permit – Extension of period of sale.
5.40.060 Permit – Referral of application to and authority of chief of police to investigate.
5.40.080 Permit – False statement on application prohibited.
5.40.090 Permit – Permit applicable only to goods listed in inventory.
5.40.100 No additional merchandise to be ordered.
5.40.110 No merchandise to be added after permit received.
5.40.120 Chapter not applicable to certain public sales.
5.40.010 Definition.
For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section.
“Controlled sales” shall mean any sale of goods, wares or merchandise held out, represented or advertised to be an insurance, bankrupt, liquidation, mortgage, insolvent, assignee’s, executor’s, administrator’s, receiver’s, or trustee’s removal or closing out sale, or a sale of goods, wares or merchandise damaged by fire, water, smoke or otherwise, or a sale of goods from the stock of a bankrupt, receiver, trustee, insurance company, receivership or trusteeship. (Ord. 138 § 1. 1990 Code § 5-3100.)
5.40.020 Permit – Required.
No person shall advertise or hold a controlled sale unless he/she shall have first obtained a permit to conduct such a sale from the city. (Ord. 138 § 1; amended during 2012 reformat. 1990 Code § 5-3101.)
5.40.030 Permit – Filing of application – Fee.
The applicant for such a permit shall make application therefor to the city manager and, at the time of such application, shall pay a minimum filing fee of $25.00, plus additional fees based upon the following table:
For any amount of net inventory over and above $5,000 up to $10,000, the sum of $5.00 per $1,000, or fraction thereof.
For the next $50,000 of net inventory, the sum of $2.00 per $1,000, or fraction thereof.
All over $60,000 of net inventory, the sum of $1.00 per $1,000, or fraction thereof. (Ord. 138 § 1. 1990 Code § 5-3102.)
5.40.040 Permit – Contents of application.
The application for permit must be in writing and on a form prepared by the city manager and shall show all the facts in regard to the proposed controlled sale and shall include an inventory of the goods, wares and merchandise to be sold at such sale, and a statement of the names of the persons from whom the goods, wares and merchandise so to be sold were obtained, the date of delivery of such goods, wares and merchandise to the person applying for the permit, and the place from which such goods, wares and merchandise were last taken and all details necessary to fully identify the goods, wares and merchandise so to be sold. The application shall specify the proposed period of time over which the controlled sale shall continue, which period shall not exceed two months. (Ord. 138 § 1. 1990 Code § 5-3103.)
5.40.050 Permit – Extension of period of sale.
If it shall be made to appear upon application to the city manager at any time during such period of two months, after an original permit has been issued, that all of the goods, wares and merchandise described and inventoried in the original application have not been sold, accompanied by a statement or inventory of what remains thereof, a permit supplemental to the one hereinafter provided for may be issued upon the same terms and conditions as such original permit granting authority to continue such sale for a further period of one month. (Ord. 138 § 1. 1990 Code § 5-3104.)
5.40.060 Permit – Referral of application to and authority of chief of police to investigate.
The city manager shall not grant any permit hereunder until the application therefor shall have first been referred to the chief of police for his/her investigation and report. The chief of police, or any other city officer designated by the city manager, shall at all times have the power and it shall be his/her duty to make examination or investigation of the business, books, records and accounts, and other papers pertaining thereto, of any company or individual applying for a permit to or theretofore permitted or authorized to conduct a controlled sale under the provisions of this chapter. (Ord. 138 § 1; amended during 2012 reformat. 1990 Code § 5-3105.)
5.40.070 Permit – Issuance.
If the city manager shall be satisfied that such proposed controlled sale is of the character represented by applicant, that applicant is of good moral character, and that neither applicant nor any of its officers, directors or members have violated this chapter, and that the advertising or conducting of such sale will not be injurious to the peace, health, safety or welfare of the people of the city, he/she may issue a revocable permit to the person applying for the same, authorizing him/her to advertise and conduct a sale of the particular kind mentioned in the application, in accordance with the requirements of this chapter. (Ord. 138 § 1; amended during 2012 reformat. 1990 Code § 5-3106.)
5.40.080 Permit – False statement on application prohibited.
No person shall make a false statement in the application provided for in this chapter. (Ord. 138 § 1. 1990 Code § 5-3107.)
5.40.090 Permit – Permit applicable only to goods listed in inventory.
The permit specified in Section 5.40.070 shall be valid only for the sale of goods, wares and merchandise inventoried and described in the application for such permit in the manner and at the time and place mentioned, and any removal of such goods, wares and merchandise so inventoried and described in such application from the place of sale mentioned in such application shall cause such goods, wares and merchandise not to be eligible as the basis for the issuance of a permit for a controlled sale under the provisions of this chapter at any other place or places. (Ord. 138 § 1. 1990 Code § 5-3108.)
5.40.100 No additional merchandise to be ordered.
No person contemplating the conducting of a controlled sale, pursuant to the provisions of this chapter, shall order any goods, wares or merchandise for the purpose of selling and disposing of the same at such sale. If the city manager determines that any unusual purchases and additions to the stock of such goods, wares or merchandise have been made within 60 days prior to filing of the application for a permit to conduct such sale, he/she shall refuse to issue the permit applied for under the provisions of this chapter. (Ord. 138 § 1; amended during 2012 reformat. 1990 Code § 5-3109.)
5.40.110 No merchandise to be added after permit received.
No person conducting or carrying on a controlled sale having received a permit under the provisions of this chapter, during the continuance of such sale, shall add any goods, wares or merchandise, for the purpose of selling the same, to the stock of goods, wares or merchandise described and inventoried in this original application for such permit, and no goods, wares or merchandise shall be sold at or during such sale, excepting the goods, wares or merchandise described and inventoried in such original application, and each and every addition of goods, wares or merchandise for the purpose of sale, to such stock of goods, wares or merchandise described and inventoried in such application, and each sale of such goods, wares or merchandise as were not inventoried and described in such application shall constitute a separate offense under this chapter. (Ord. 138 § 1. 1990 Code § 5-3110.)
5.40.120 Chapter not applicable to certain public sales.
The provisions of this chapter shall not apply to sheriffs, constables, or to other public or court officers, or to any other person acting under the licensed direction, or authority of any court, state or federal, selling goods, wares or merchandise in the course of their official duties, and pursuant to the provisions of a statute authorizing such sale. (Ord. 138 § 1. 1990 Code § 5-3111.)