Alhambra Municipal Code Ch. 5.08 Auctions

Section

Cross-reference:

For provisions concerning auction of unclaimed property by Police Department, see Chapter 3.24

It shall be unlawful for any person to sell, dispose of, or offer for sale at public auction, or to cause or permit to be sold, disposed of or offered for sale at public auction, any personal property, whether the same shall be their property or whether they shall sell the same as agents or employees of others; provided, however, that nothing contained in this section shall be construed as applying to:

(A) Judicial sales;

(B) Sales made by executors or administrators as such;

(C) Sales of ordinary household furniture which has been purchased or obtained by the owner thereof for bona fide use as household furniture by the owner thereof;

(D) Sales made at public auction of the stock in trade of any person that shall, for the period of one year next preceding the date of the sale, have been continuously engaged in business in the city as a retail or wholesale merchant; provided, that the provisions of this chapter relating to public auction sales of the stock in trade of retail or wholesale merchants are complied with; nor

(5) Sales made at public auction of antiques or other objects of art; provided, that the provisions of this chapter relating to public auction sales of antiques or other objects of art are complied with.

('86 Code, § 5.08.010) (Ord. 2449, passed - - )

It shall be unlawful for any person conducting a public auction of the stock of a wholesale or retail merchant to sell or offer for sale at such auction any item of such stock to which there is not attached a card or ticket or label containing a true and correct statement, plainly written or printed in English, specifying the kind and quality of such personal property. Such tag or label shall remain securely attached thereto and shall be delivered to the purchaser as a true and correct description of the articles sold, and shall be deemed prima facie evidence of intent to defraud in case such written statement is not a true and correct description and representation of such articles sold.

('86 Code, § 5.08.020) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

When an auction sale relates to jewelry, it shall be unlawful for any person to offer for sale by auction any article unless the descriptive tag attached thereto meets the following requirements:

(A) If the article is of metal, the tag shall specify the kind and quality of the metal of which such article is made or composed, the karat and the purity of the metal.

(B) If the article is plated or overlaid, then the tag shall contain a true statement of the kind of plate.

(C) If the article is, or includes a precious stone, the tag or label shall set forth the true name, weight and quality of such stone.

(D) If the article is, or includes a semiprecious stone, the tag or label shall set forth the true name of such stone.

(E) If the article is, or includes, an imitation of a precious or semiprecious stone, the tag or label shall indicate whether the stone is synthetic or imitation.

(F) If the article is a watch or clock, the tag or label shall bear the true name of the manufacturer. No parts of the movements or mechanism thereof shall be substituted or contain false or misleading names or trademarks. No secondhand or old move-ments shall be offered for sale in new cases without a true statement to that effect on the tag or label.

(G) If the article is a used or rebuilt watch, the tag or label shall so state.

('86 Code, § 5.08.030) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

Under no circumstances shall the inventory offered for sale at auction exceed by 30% the average inventory carried by the applicant at the same location over the preceding five-year period. If the applicant has been in business at the same location less than five years, the inventory shall not exceed by 30% the average inventory carried for the period of time the applicant has been in business. Any abnormal purchases during the year prior to the application for permit shall be cause for refusal to issue the permit.

('86 Code, § 5.08.040) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

No stock held on consignment shall be offered for sale at auction.

('86 Code, § 5.08.050) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

It shall be unlawful for any person to permit any of the following acts in connection with an auction:

(A) The use of deceit, fraud or misrepresenta-tion in the sale of any property or any property offered for sale;

(B) The substitution of another article for that bid upon by the prospective purchaser;

(C) The use of false bidders, cappers or puffers.

('86 Code, § 5.08.060) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

It shall be unlawful for any person to conduct a public auction sale between the hours of 6:00 p.m. and 8:00 a.m.

('86 Code, § 5.08.070) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - ) Penalty, see § 1.12.010

It shall be unlawful for any person to engage in or carry on the business of an auctioneer in the city for the sale at public auction of real or personal property without first having obtained and having in effect a license to do so and having in effect a bond as required by § 5.08.100; provided, however that the City Council hereby reserves the right to waive the fee for any religious, charitable or eleemosynary organization.

('86 Code, § 5.08.080) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

Any person desiring to obtain the license referred to in the preceding section shall make a verified application therefor on application blanks furnished by the City Treasurer. Such application shall state the name, age, residence and business addresses of the applicant; the number of years the applicant has been engaged in the business of an auctioneer; whether the applicant has ever been denied a permit or license to engage in the business of an auctioneer, and if so when and where; places which have granted the applicant a permit or license to engage in the business of an auctioneer within the past five years, if any; the names and respective residence addresses of three residents of the county, as references; and such further information as the City Treasurer may require.

('86 Code, § 5.08.090) (Ord. 2449, passed - - )

At the time of the filing of the application as provided by the preceding section, the applicant shall pay to the Director of Finance an amount established by City Council resolution to defray the expense of acting upon the application and shall deliver to the Director of Finance a bond in a penal sum established by City Council by resolution executed by a responsible surety company, which bond shall be conditioned upon the compliance by the applicant with the provisions of this chapter; upon the accounting to the cosigner or owner for property entrusted to or money received by him or her, and upon the refunding of the purchase price to any person purchasing real or personal property from such applicant at auction, who shall be injured by an unlawful or fraudulent sale by the applicant, upon the return or reconveyance of the property so purchased by such person and a demand for a refund. Such bond shall be subject to the approval of the City Attorney.

('86 Code, § 5.08.100) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - ; Am. Ord. 3962, passed - - ; Am. Ord. 4587, passed 6-27-11; Am. Ord. 4588, passed 7-11-11)

All licenses issued pursuant to the three preceding sections shall annually expire on each January 1 next following the date of their issuance, at which time they may be renewed upon application and payment of a renewal fee in an amount established by City Council resolution to the Director of Finance.

('86 Code, § 5.08.110) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - ; Am. Ord. 4587, passed 6-27-11; Am. Ord. 4588, passed 7-11-11)

For every person engaged in or carrying on the business of an auctioneer for the sale at auction of any real or personal property, or conducting, managing or carrying on an auction house wherein any real or personal property is sold at auction, a license fee in an amount established by City Council resolution per day shall be charged.

('86 Code, § 5.08.120) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - ; Am. Ord. 4587, passed 6-27-11; Am. Ord. 4588, passed 7-11-11)

The City Council may upon its own motion, and shall upon the verified complaint in writing of any person, investigate the action of any person licensed pursuant to the provisions of this chapter and shall have the power to temporarily suspend or per-manently revoke such license for any of the following acts or omissions.

(A) Misrepresentation of a material fact by the applicant in the application;

(B) If the licensee violates or causes or permits to be violated any of the provisions of this chapter;

(C) If the licensee fails to account to the consignor or owner for the property entrusted to or money received by, him or her; or

(D) If the licensee makes false or misleading representations as to the value, worth, make, condition, model, age or quality of the property sold or offered for sale.

('86 Code, § 5.08.130) (Ord. 2449, passed - - )

Any person proposing to sell at public auction the stock in trade of a retail or wholesale merchant, prior to the time of conducting such sale, shall obtain from the City Treasurer a permit to do so. Such permit shall be applied for and issued in the following manner; Such person shall make a verified application therefor on blanks to be supplied by the City Treasurer giving the name and address of the applicant; the location and purpose of the sale and the length of time of its expected duration; the dates between which it is proposed to be conducted; the name of the auctioneer who will conduct the sale and whether any items of stock in trade have been added in expectation of such sale, and if so, a description of such items and when so added; and a detailed inventory, item by item, of the stock in trade to be sold, the wholesale value or cost to the applicant of each item and the quality and grade thereof. Each item must be numbered separately in the inventory and the number in the inventory must correspond to a number physically attached to such item. The application shall be accompanied by a cash deposit in an amount established by City Council resolution.

('86 Code, § 5.08.140) (Ord. 2449, passed - - ; Am. Ord. 4587, passed 6-27-11; Am. Ord. 4588, passed 7-11-11) Penalty, see § 1.12.010

(A) Upon receipt of the application and deposit required by the preceding section, the City Treasurer shall cause an investigation thereof to be made. The City Treasurer shall cause each item of the inventory submitted to be checked with the actual item in the applicant's place of business, and shall cause an investigation to be made to ascertain the truthfulness of the sworn statement submitted by the applicant, and to determine whether the items described in the inventory are a bona fide part of the applicant's stock in trade. The applicant shall be charged the sum of $20 for each day, or fraction thereof, required to make such investigation. Such amount shall be deducted from the deposit made by the applicant with the City Treasurer and the amount that remains in the hands of the City Treasurer after such deduction shall be repaid to the applicant.

(B) If the deposit of $50 is insufficient to pay the cost of making the investigation, the City Treasurer shall notify the applicant in writing of that fact and shall set forth the estimated additional necessary expense for completing such investigation, and the applicant shall deposit with the City Treasurer such additional amount. If such additional amount is not deposited within five days after receipt of such notice, the application shall lapse and any further proceedings for a permit must be pursuant to a new application.

('86 Code, § 5.08.150) (Ord. 2449, passed - - )

If the City Treasurer shall determine that the permit required by § 5.08.140 may be issued to the applicant for a certain number of days, he or she shall then issue the permit. Such permit shall give the name of the person to whom it is issued, the name of the auctioneer who will conduct the sale and the dates and places where such sale may be conducted.

('86 Code, § 5.08.160) (Ord. 2449, passed - - )

The Director of Finance shall be represented at a stock in trade sale and shall cause each item offered for sale or sold to be checked with the inventory filed by the applicant with the Director of Finance and shall cause to be entered on such inventory the date of the sale of each item and the price at which the same is sold. The person obtaining a stock in trade auction permit shall pay daily in advance to the Director of Finance an amount equal to the actual or prorated daily compensation paid by the city to the person representing the Director of Finance at such sale, not exceeding the sum of $100 per day, in addition to any other sums required by this chapter.

('86 Code, § 5.08.170) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - )

Any and all payments, fees or deposits required to be made under the provisions of this chapter as a condition precedent to the issuance of a permit to conduct a stock in trade auction shall be in addition to any fees which are or may be required to be paid by other ordinances of the city for a license to conduct a public auction.

('86 Code, § 5.08.180) (Ord. 2449, passed - - )

(A) Christmas season. A permit shall not be issued to any person to conduct a public auction sale of the stock in trade of a wholesale or retail merchant during the period of time from December 1 to and including December 25 of any year and it shall be unlawful for any person to conduct, or cause to be conducted, any such sale during such period of time.

(B) Term. A permit shall not be issued to any person to conduct a public auction sale of the stock in trade of a wholesale or retail merchant for a period longer than 30 days within a 12-month period of time and more than one permit shall not be granted to any such person to conduct such a sale of such stock within such a period of time; and it shall be unlawful for any person to conduct or cause to be conducted any such sale for a longer or other period of time than 30 consecutive days, Sundays and holidays excepted, or to conduct more than one such sale, within a 12-month period of time.

('86 Code, § 5.08.190) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

It shall be unlawful for any person conducting a public auction of the stock in trade of a wholesale or retail merchant to sell or offer for sale at such auction any item of such stock which is not contained or described in the application required by § 5.08.140 or which has been added to such stock within 60 days prior to the time of the commencement of such auction or which does not have attached or affixed thereto an identifying number corresponding with the identifying number contained in such application, or to sell or offer for sale any item of such stock without first giving the person representing the City Treasurer at such sale an opportunity to check the same against the inventory filed with the application. Each item of stock when sold must be delivered to the purchaser with the original tag and number intact.

('86 Code, § 5.08.200) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

Any person proposing to sell at public auction antiques or other objects of art, prior to the time of conducting such sale, shall obtain from the City Treasurer a permit to do so.

('86 Code, § 5.08.210) (Ord. 2449, passed - - ) Penalty, see § 1.12.010

An applicant for the permit required by the preceding section shall make a verified application therefor on blanks to be supplied by the City Treasurer, which application shall contain the name and address of the applicant, the proposed location of the place of sale, an itemized list of the antiques or other objects of art proposed to be sold, whether all of such articles are on hand at the place where such sale is proposed to be conducted at the time of the making of the application and, if not, from where and from whom they are expected to be obtained.

('86 Code, § 5.08.220) (Ord. 2449, passed - - )

The application required by the preceding section shall be accompanied by a fee in the sum of $15 to defray the cost of acting thereon.

('86 Code, § 5.08.230) (Ord. 2449, passed - - ; Am. Ord. 3962, passed - - )

If, upon considering and investigating the application required by § 5.08.220, the Director of Finance shall be satisfied that the proposed auction is to be conducted for the sale of antiques or other objects of art he or she shall issue a permit therefor. Such permit shall only be issued for the period of time ending on December 31 next succeeding the date of its issuance at which time it shall be necessary for a permittee to reapply for a new permit.

('86 Code, § 5.08.240) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - )

The provisions of §§ 5.08.010, 5.08.140 and 5.08.150 of this code shall not be construed as applying to public auction sales of antiques or other objects of art.

('86 Code, § 5.08.250) (Ord. 2449, passed - - )

Notwithstanding the provisions of § 5.08.070 of this code, public auction sales of antiques or objects of art may be conducted between the hours of 8:00 a.m. and 9:00 p.m.

('86 Code, § 5.08.260) (Ord. 2449, passed - - ; Am. Ord. 3657, passed - - ) Penalty, see § 1.12.010