Chapter 5.28
AUCTIONS*
* For state law relating to auctions, see Business and Professions Code § 5700 et seq. and Penal Code §§ 436 and 535.
Ordinance No.91-07 repealed and replaced Chapter 5.28, Auctions, in its entirety. Prior ordinance history includes prior code sections 6370 through 6372.4.
Sections:
5.28.060 Cappers or boosters prohibited.
5.28.070 Revocation of business license.
5.28.010 DEFINITIONS.
For the purpose of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
(a) “Auction” means a sale transaction conducted by means of oral or written exchanges between an auctioneer and the members of his or her audience, which exchanges consist of a series of invitations for offers for the purchase of goods made by the auctioneer and offers to purchase made by members of the audience and culminate in the acceptance by the auctioneer of the highest or most favorable offer made by a member of the participating audience.
(b) “Auction company” means any person who, or entity which, arranges, manages, sponsors, advertises, accounts for the proceeds of, or carries out auction sales at locations including, but not limited to, any fixed location, including an auction barn, gallery, place of business, sale barn, sale yard, sale pavilion, and the contiguous surroundings of each.
(c) “Auctioneer” means any individual, whether principal or agent, who is engaged in or who by advertising or otherwise holds himself or herself out as being available to engage in the calling for, the recognition of, and the acceptance of offers for the purchase of goods at an auction.
(Ord. 91-07 § 2, 1991).
5.28.020 AUCTIONS LIMITED.
Except as provided in this chapter, no person or entity shall conduct a sale by auction within the city of Santa Cruz. No individual may act as an auctioneer and no person or entity may operate an auction company within the city of Santa Cruz unless that individual, person or entity holds an unexpired and otherwise valid license issued by the state of California pursuant to the California Business and Professions Code and all other applicable state statutes and regulations.
(Ord. 91-07 § 2, 1991).
5.28.030 EXEMPTIONS.
The provisions of this chapter shall not apply to the following transactions:
(a) An auction of goods conducted by an individual who personally owns those goods and did not acquire the goods for resale;
(b) An auction conducted by, on behalf of, or under the direction of any public authority, political candidate or party, church, or nonprofit or charitable organization, as a special event;
(c) A sale of real estate;
(d) An automobile auction regulated by the department of motor vehicles;
(e) Judicial sales, or sales by executors or administrators, authorized by law, and sales by public officers authorized by law;
(f) Auction sales in foreclosure of bailee’s liens authorized or required by law, including warehousemen’s liens;
(g) Auction sales or unredeemed pledges by or on behalf of licensed pawnbrokers having been continuously in business for a period of one year preceding such sale.
(Ord. 91-07 § 2, 1991).
5.28.040 LICENSED AUCTIONEERS AND AUCTION COMPANIES WHOSE PERMANENT PLACES OF BUSINESS ARE WITHIN THE CITY OF SANTA CRUZ – BUSINESS LICENSE REQUIRED.
A licensed auctioneer or auction company whose permanent place of business, as filed with the California Auctioneer Commission, is located within the city of Santa Cruz may conduct single or periodic auctions within the city provided that such an auctioneer or auction company obtains a valid business license from the city to conduct such an auction.
(a) Each licensed auctioneer and auction company as described in this section must obtain a separate business license pursuant to the provisions of Chapter 5.04 of this code prior to conducting any auction.
(b) Any auctioneer or auction company who applies for a business license pursuant to this section shall be required to provide the city with satisfactory proof of compliance with all applicable state licensing requirements. This shall be accomplished by completion of the “Business Tax Application and Renewal Statement” and “Supplement: Auctioneers and Auction Companies” forms available at the finance department.
(Ord. 91-07 § 2, 1991).
5.28.050 LICENSED AUCTIONEERS AND AUCTION COMPANIES WHOSE PERMANENT PLACES OF BUSINESS ARE NOT WITHIN THE CITY OF SANTA CRUZ – VERIFICATION OF LICENSE.
A licensed auctioneer or auction company whose permanent place of business, as filed with the California Auctioneer Commission, is not located within the city of Santa Cruz may conduct an auction within the city subject to the provisions of this section.
(a) As a prerequisite to conducting an auction within the city, an auctioneer or auction company whose permanent place of business is not located within the city of Santa Cruz must provide satisfactory proof of compliance with all applicable state licensing requirements. This shall be accomplished by completion of a “Verification of State Licensing Requirements” form available at the finance department. Said completed form must be submitted at least five days prior to the proposed auction.
(b) As an alternative to the process described in subsection (a) of this section, an auctioneer or auction company whose permanent place of business is not located within the city of Santa Cruz may apply for a business license to conduct auctions within the city pursuant to the procedures outlined in Section 5.28.040 of this code.
(Ord. 91-07 § 2, 1991).
5.28.060 CAPPERS OR BOOSTERS PROHIBITED.
It shall be unlawful for any person to act as a by-bidder, or what is commonly known as a “capper” or “booster,” at any auction; or to offer or make false bids on any item or lot held or offered for sale at such auction, or pretend to buy anything at any auction sale in order to stimulate such sales by any deceit or misrepresentation in the making of bids or offers for the purchase of anything held or offered therein for sale.
(Ord. 91-07 § 2, 1991).
5.28.070 REVOCATION OF BUSINESS LICENSE.
Upon the violation of any provision of this code by any person to whom a business license to conduct an auction has been issued by the finance department as provided in this chapter, the director of finance may revoke the issued business license summarily and without notice.
(Ord. 91-07 § 2, 1991).
5.28.080 APPEAL.
All actions of the director of finance in granting or denying a business license pursuant to this chapter are subject to appeal to the city council by the applicant for such business license pursuant to appellate provisions contained in Chapter 1.16 of this code.
(Ord. 91-07 § 2, 1991).